10 Cheapest Car Insurance Companies for Students & Single Parents

As a student/single parent, do you see yourself running into debt because of the high premiums you incure on your car? We understand your pain and so we have helped narrow your search of cheap car insurance companies for you the student and the single parent. but one might ask; Do I really need insurance for my car? You do so as not to incure the cost of damages when an accident occurs.

I’ll tell you a story of what happened to Fred a young student on scholarship who bought a car. Fred has taken the car for a ride when he was involved in an accident which he barely escaped with his life. He laid on the ground as blood oozing out of the wrist due to a deep cut. The car was in a wreck—any repair would cost him a lot of money. It had just been five months since he bought the car.

Everyone was happy he was alive, but it was saddening for him when he learnt that his car was in a wreck. He was sunken. The accident wasn’t his fault—he was  carefully driving in his lane when a crazy driver nudged his car that made him run into a bush where his car somersaulted. It was then that he remembered when he was been counselled to insure his vehicle and he neglected it saying “Nothing will happen. I am a safe driver”.

I know you wouldn’t want to be in this dilemma, so because we care about you and your car, we have decided to give you a detailed report on affordable insurance companies and many other rudiments you should be aware of when insuring your vehicle.

Before we step into that, let’s have a common understanding of what car insurance really means; Car insurance is a net of safety against financial loss that emanates when a damage occurs both physical and mechanically. Insurance policies differ as most cover damages to third party and also in case of theft while some don’t cover such.

What are the benefits of having your car insured?

  1. Protection in case of disaster: Natural disasters are inevitable in most countries and it’s unwise not to insure your vehicle. Insurance covers for you whenever a natural disaster occurs.
  2. Covers survivors in occurrence of a fatal accident: As long as reckless drivers exist, accidents will occur. Insurance covers for any survivors in the mishap both in your vehicle and that of the other person in most cases.
  3. Protection from Lawsuit: In occurrence of an accident, lawsuits may spring up. Insurance covers for you when you’re at fault and you’re being sued.
  4. Incurs repairs caused by damage: Insurance covers for repairs caused by damages. This offsets cost for the policy holder.
  5. Covers you in case of theft: Insurance covers for you whenever a theft occurs on your vehicle.

There’s a popular saying “Whatever has an advantage, possesses a disadvantage too. So since we’ve addressed the advantages of insurance, let’s also look at the disadvantages of insurance.

What are the Disadvantages of Insurance?

  1. Lack of credibility: Everyone doing business, needs profit to thrive. Insurance companies are not exempted. A lot of insurance companies will always skew the conditions of agreement to favour them. It is wise to be in sync with any agreement before you pen your signature so as to avoid being cheated.
  2. Covers some Damages: I stated earlier that premium offers differ. Insurance companies won’t like to be caught in the predicament of incuring loses. Therefore, many a times they can give outrageous excuses as to why they can’t cover some damages using company policy as a plateau.
  3. Incure Deductible Sum: A deductible sum is agreed between the policy holder and the insurance company on the occasion of car insurance purchase. This amount springs up when you want to lay claim to damages. It ranges from $100 to $1000 all dependent upon the stringency of damage that occurred. It’s interesting to know that higher premiums have low deductible amounts.
  4. Insurance is Expensive: We all agree that having a car is a necessity and car maintenance is unavoidable. Buying a car costs a lot of money so no one wants to add extra charges such as premium to his expenses. It’s advisable to drive safely and carefully as it can suprise you that insurance companies charge $1200-$12000 yearly. This amount of money can foot the cost of a car.
  5. You may never lay claim to damages from your insurance company: Reckless drivers are very few and so the road is replete with good drivers. This can evade accidents and even the slightest dent may never occur for over twelve years. You’ll still be required to pay hundreds to thousands of dollars to your insurance company and to make matters worse, in cases of slight dents that don’t amount to the deductible amount in cost of repairs, you’ll still incur them. What an unfair situation.
  6. Never Cover Wear and Tear: Every car no matter how high your maintenance policy is will get worn out. Insurance companies don’t cover for such cases as premium offers are even higher on older vehicles.
  7. Insurance Companies Delay Payment of Claims Hinging Unto Investigations: Insurance companies delay unnecessarily standing on the plateau of investigation. They always seek for a loophole in any case so as to absolve themselves from footing the cost of damages. The time spent ascertaining these facts has it’s own deadly effects.

Factors that Affect Insurance Rates

Car Insurance can be tricky. You have to be wise and knowledgeable with car insurance policies and factors that affect your rate before you sign up. I have a friend Jeff who had been overpaying insurance for six years after when he bought his first car. He discussed with a lot of people who paid way lesser than he payed on the same premiums.

Jeff knew something was wrong, so he set out to inquire why he paid as much as $150 dollars per month. Jeff made inquiries with insurance companies and he discovered why he was paying so much. He had some unnecessary coverage.After disabling the unnecessary coverage his interest rate flattened to $50.

After sharing his experience with me, I said to Jeff that a lot of people are still in this trap, so using Jeff’s experience I decided to write this article to disclose to you factors that affect your insurance rates.

  1. Your car: A mozart and a bentley can’t have the same premium. The class in cognizance with the edition affects your insurance rates.
  2. Your place of residence: When you reside in a place that is prone to theft and crime. Your premium will increase.
  3. Your credit score: Great drivers pay low premiums as the probability of accidents are very low for them. Their track record has helped the insurance company build trust.
  4. Your coverage choice: There are diverse coverages that exist. Your choice gravely affects the rates that will be offered.
  5. Age: Teenagers pay higher premiums as their lack of experience in driving reflects carelessness and high margin of auto crash.

Saving Money While Paying Insurance  

Car insurance premiums cost some money. Its essential you learn how to save money while paying for your car insurance and I will give you some steps

  • Ascertain your deductible amount: It’s advised to have a high deductible amount as it reduces premium cost.
  • Be bold to ask for discounts on your car insurance: The insurance company may disclose them from you so as to make more money but you need to be insistent.
  • Bundle your insurance: It’s cheaper when you bundle your insurance than when you separate them. insure both your car, house, properties etc.

Getting The Best Insurance Deal  

Don’t be oblivious of the fact that insurance is negotiable. It’s advised you don’t just settle for whatever an insurance company throws at you. To get the best deal on your car insurance, do the following

  • Leverage on another cheaper insurance deal when negotiating: Negotiate with lower rates that you have gotten from another insurance company.
  • Your insurance premium is gravely affected by your choice of car: Buy a good car that can give you a great car insurance deal. Never go for exquisite cars if you don’t have the equivalent for insurance.
  • Don’t keep debts: When you pay your bills, you build your trust quotient.
  • Skip the unnecessary coverage: Find out what’s important to you and stick to it.
  • Carefully analyse each line of agreement and make the necessary inquiries: Don’t rush the process and don’t be naive too. Ask questions and seek  clarity.

Now that we have ascertained a lot of truths about car insurance, let’s now look intricately on the ten cheapest car insurance companies. The following below are the ten most affordable car insurance companies;

  • Allstate
  • Amica Mutual
  • USAA
  • State Farm
  • American family
  • Nationwide
  • Farmers
  • Metromile
  • Liberty Mutual
  • Auto Owners

 

  1. Allstate: The Company was established in the year 1931. All state offers insurance on houses, cars etc. The company also boasts of a new technology that eradicates the duty of day planning by aiding you with optimised to-do lists, multi-shop routing and personalised car reminders.

Auto insurance premiums are dependent on the coverage you’re interested in and factors such as state specification limit for liability coverage and debt on auto loan will gravely affect this.

Types of Coverage

Allstate boasts of diverse kinds of coverage which include;

  • Collision coverage

This covers your vehicle in case of colossal damage or total annihilation.

  • Comprehensive coverage

This is the coverage on your vehicle in the occurrence of natural disasters and theft.

  • Liability coverage

This is the coverage on your vehicle incase of any predicaments or damages caused by you.

  • Medical payments coverage

This is the coverage on your vehicle in case of bodily/physical harm to you and your passengers.

  • Uninsured & underinsured motorist coverage

This covers your vehicle incase of another driver cause who is not covered by insurance.

  • Rental reimbursement coverage

This covers your cost of renting a car when your vehicle is not roadworthy—being repaired.

  • Sound system insurance

This covers any damage to fragile car parts such as the video players, radios etc.

  • Roadside coverage

This covers the cost of roadside services such as tire changing and pumping, jump starting etc.

  • Personal injury protection

This covers costs that occur in the case of a covered accident.

  • Personal umbrella policy

This covers any liability that is gravely limited in any way.

  • Property protection coverage

This covers damages to another person’s car when done unintentionally.

Speciality Policies

Do you have a piece of clothing or an accessory that you just adore? For some people it’s just one beautiful fancy car. This car deserves special attention and in the same vein should be insured in a special policy. Allstate just have that policy for you.

Limits & Deductibles We’ve cut across a lot of stuff so let’s intricately look in-depth and give an overall overview;

Limits The greatest amount Allstate will incure for a claim. Example: When your limit is $150,000 and the crash damage costs $165,000, you’ll pay $15,000 This offer has been broken down by the amount payable to a person by Allstate. Example: When there is a limit of $150,000/$200,000, Allstate will pay $150,000 per person in the crash and $200,000 in total.

Deductibles The amount you agree to pay out-of-pocket Example: If your deductible is $1500 and the damage costs $3,500, you’ll pay $1500 and Allstate will incur the balance of $2,500 Your limit and deductible levels affect the amount you pay to be covered or in other words know as your monthly premium. Contact an agent to get an idea of what could be right for you.

State Minimum Insurance Requirement

State laws require you to have diverse types of coverage with their amounts. When you discover the average coverage in your state in tandem with it’s minimum requirements it will aid you in crafting a workable plan.

  1. Amica Mutual: This is one of the oldest car insurance companies. This company was founded in 1907. Amica offers automobile, life, health insurance. Amica serves as one of the top choices when it comes to cheap car insurance companies because of it’s track record. It offers services such as;
  • You save 25% when you insure multiple cars.
  • Form a lasting relationship due to their strong base.
  • Work with a team reputable in car insurance.
  • You save 15% when you insure your car and home too.

So get started on this amazing opportunity by going to wwww.amica.com.

  1. USAA: This is an auto insurance company that is affiliated with the military. USAA boasts of coverage all over the globe as your military assignment changes. Incurs every cost on a rental vehicle when your car is being repaired and also gives an incentive of no increment in premium on an accident after a clean record of five years or more. From the mobile device you can do as much as managing your policy and getting your insurance quotes. You can also have access to a flexible plan that fits your schedule.

So this is ideal for a military personnel that is seeking a cheap car insurance policy. Get onto www.usaa.com to get started.

4. State farm: State farm prides in being one of the cheapest car insurance companies because they are the largest auto service provider in the US. State farm since its establishment in 1922 has received great marks from A.M. Best and S&P Global Ratings, two popular organisations that provide insurance ratings based on each insurance. Discounts vary per state and premium and you can get online quotation or better yet  find a car insurance agent close to you. Visit www.statefarm.com to get started.

5. American Family: American family boasts of over ninety years experience on insurance. Under American Family insurance, you earn when you drive safely. You can have control of the costs you incure using KnowYourDrive, a user friendly insurance program that helps you save money on your car insurance premium. With the myfamapp you can  make payments, monitor charges and have access to a whole lot of features on car insurance from the comfort of your home. With an expert agent’s assistance, you can build or choose a policy that best  soothes you.  There is such an ease in making a claim as expert claim professionals are available to you 24/7 to aid you through the process. Tune in to www.amfam.com to get started.

6. Nationwide: Nationwide insurance company since its establishment in 1925 have an outstanding service quality. Nationwide has its own mobile app for both android and ios devices which aid the policy holder in viewing his policies, pay his bills and make auto claim when you need to. Get in contact with an agent or visit www.nationwide.com.

7. Farmers: Farmers started as the dream of two men in 1928 who sought to provide insurance that had quality and is cheap. Farmers boast of amazing car insurance discounts. At farmers, you’re totally in control of as with your farmer’s account, you can register, change, manage and update any policy you have subscribed to. There are a lot of auto insurance discounts that are available to you dependent on your state. You can get access to the amount of money needed  for diverse policies and also the considerations when selecting your coverage. You can get access to an agent to simplify the process for you or just log on to www.farmers.com for more information.

8. Metromile: Metromile is pioneering a revolution in automobile insurance with its pay-per-mile model. As a low mileage driver, you can save $836/per year if you drive within 0-2500, $611/per year when you drive within 2500-7500 miles and $223/per year when you drive within 7500-1000. The secret behind pay-per-mile insurance is the Metromile Pulse, a small free wireless device that is plugged into your car’s OBD-II port. You can check out the phone app so as to get access to a wide range of services that are available to you even when you intend on making claims. You can get started by signing up at www.metromile.com.

9. Liberty Mutual: Since its inception in 1910. Liberty Mutual Insurance has not waned in their desire to help preserve and protect what people love and grow. This reflects the high value they attach to their customers. At liberty mutual, there’s just that policy that fits your specification. You get in contact with their agent closest to you to seal a great deal or download their mobile app. You can also visit www.libertymutual.com for further inquiries.

10. Auto- Owners: For over hundred years, they have stayed close to the helm due to their excellent customer service, their affordable prices and their intelligent and hardworking representatives. Diverse discount rates are available to you depending on the one that is more profitable to you. These discount rates vary according to locations as given by the company. Please see the table below for more details.

Discount Type Discount %
Passive Restraint Discount up to 35%
Multiple Vehicle Discount up to 31%
Student Away at School Discount up to 25%
Multiple Policy Discount up to 14%
Prepay Discount up to 14%
Anti-Theft Device Discount up to 11%
Good Student Discount up to 10%
Anti-lock Brake Discount up to 10%
Company Car Discount up to 5%
Economy Car Discount Varies
TeenSmart Discount Varies

 

Conclusion In conclusion, its best advised that you have a wide scope to choose and also be meticulous when going through terms of conditions before you seal the deal. Contact as many agents as possible and also compare/contrast every insurance policy. I’m confident that you won’t go wrong. I wish you all the best!!!

Has this article been of any assistance to you? please leave a comment. Do you have any further questions? please do leave them as a comment too as we will attend to them speedily.

 

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