Cheap Car Insurance Companies for Families
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When you have a family, your expenses tend to grow. After all, you have more mouths to feed and other costs. One of those expenses is your family’s car insurance bill.
As a family, your car insurance expenses likely won’t change based on how many non-driving children you have in the house. However, you might see changes in car insurance costs when you marry your significant other or add teenage drivers to your policy.
Let’s explore cheap car insurance companies for family options below.
- Married couples can often lock in slightly lower rates than their single counterparts.
- When adding a teenage driver to your car insurance policy, you’ll likely see a significant spike in your premiums. Teenage drivers are more expensive to insure due to their lack of experience behind the wheel, which insurance companies see as a risk.
- Families with multiple cars in their driveway can save by pursuing a multi-car discount.
- When selecting a car insurance company, try to find one that offers affordable rates and good customer service.
Cheap Car Insurance Companies for Families
Let’s explore some of the cheapest car insurance options for families. These rates are based on a typical married couple driving a 2016 Honda Accord.
American National Insurance Company
On average, families pay $778 per year, or $65 per month, for car insurance through the American National Insurance Company. That makes American National the cheapest car insurance company on this list.
Drivers who work with American National will find discount opportunities when they purchase a home and life insurance through the same company.
If you opt to insure your home and cars through this company, you can get cash back if you don’t file a claim on either policy for three consecutive years. The cash back checks will continue every year you remain claim free.
American Family Insurance
American Family Insurance offers families auto insurance with an average annual premium of $1,277 or $106 per month.
Families who choose to bundle their home and auto insurance through American Family can save up to 23% on their premiums. If you are bundling your renters’ insurance, your family can save up to 5%.
You could tap into a usage discount if your family doesn’t put too many miles on the road. Drivers who drive less than 7,500 per year can tap into worthwhile deals.
COUNTRY Financial offers families an average premium of $1,318 per year or $110 per month.
Families working with COUNTRY Financial can tap into discounts by bundling multiple policies or insuring multiple cars on the same policy. The insurance company also offers discounts to certain professionals, including teachers, firefighters, police officers, EMTs, and paramedics. COUNTRY Financial might be a good fit if you qualify for any of these discounts.
On average, families pay $1,321 per year, or $110 per month, for car insurance through General Casualty. The insurance company offers drivers minimal discount options, but you’ll still be able to tap into good driving and anti-theft discounts.
Our research shows that General Casualty offers the best comparative rates in rural areas.
Depositors Insurance Company
Depositors Insurance Company offers families average car insurance costs of $1,399 per year or $117 per month. Typically, Depositors Insurance Company offers less expensive average premiums to families in rural areas.
Technically, Depositors Insurance Company has an affiliation with Nationwide. You might find similarities between this company and Nationwide’s policy offerings.
Erie Insurance offers the average family auto insurance premiums of $1,459 per year or $122 per month.
As a family, you can tap into multiple discount opportunities to lower your auto insurance costs. Some possibilities include multi-car discounts, multi-policy discounts, safe driving discounts, and annual premium payment discounts.
State Farm is one of the largest auto insurance providers in the country. With its sizable financial footprint, State Farm has extensive resources that some of the smaller insurance providers cannot match.
As a driver with State Farm, you can tap into several discounts. On average, families pay $1,492 per year, or $124 per month, when working with State Farm.
However, the real draw is the company’s high customer satisfaction ratings. In the J.D. Power 2022 Auto Insurance Study, State Farm earned the top spot in the Southwest region. With that, you’ll likely have a good experience if you ever have to file a claim.
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Cheap Car Insurance Companies for Parents with Teen Drivers
When you have young children, they won’t impact your car insurance costs. Instead, car insurance for families starts to get more expensive when you add a teenage driver to your policy.
Here are some of the best cheap car insurance companies for parents with teen drivers. These averages are based on a married parent with a child on their policy under the age of 19.
Hugo Insurance offers relatively cheap car insurance to families with a teen driver on their policy. Based on our research, the average costs are $1,649 per year, which works out to $137 per month.
The relatively new insurance company offers micropayment options and an on-demand insurance model. With that, families can purchase policies in increments of as few as three days at a time. When you need insurance for your family, you can turn it on before hitting the open road. The daily rate might be helpful for parents that only allow their teen to drive sometimes.
Bridge Net helps you gain access to regional insurance carriers. Through Bridge Net, families with teen drivers pay an average of $2,075 per year or $173 per month.
Families looking for affordable insurance might find what they want through Bridge Net. But you’ll need to work with a local insurance agent to finalize your insurance coverage.
On average, American Alliance offers families with a teen driver annual auto insurance premiums of $3,065 per year or $255 per month.
When you get insurance through American Alliance, you can tap into discounts to lower your costs. A few include multi-car discounts, renewal discounts, and defensive driver discounts. However, you may need to work with an agent to finalize your insurance policy through this company.
Mile Auto offers families a pay-per-mile insurance option. If your family includes low-mileage drivers, you can save between 30% and 40% on your car insurance premiums.
The average rate for families is $3,185 per year or $265 per month. A Mile Auto policy requires you to provide a monthly snapshot of your odometer, which could lead to significant savings if you limit how far your teen drives.
On average, families with teen drivers pay $3,482 per year, or $290 per month, for car insurance.
The company offers a teen-focused driving app called Bouncie. With access to Bouncie, you can keep tabs on your teen’s driving habits. Another family-friendly feature is car seat and stroller replacement protection, which means you’ll get reimbursed if an accident damages these items.
Mercury Insurance offers families with young drivers a policy with an average price tag of $3,721 per year or $310 per month. Since over 96% of Mercury customers choose to renew their policies, it’s safe to say you’ll likely have a good experience with the company.
After 60 years in the business, Forbes named the company one of the best insurance companies of 2023.
CSAA, better known as the American Automobile Association (AAA), offers families with teen drivers an average policy cost of $3,728 per year, or $311 per month. Although AAA’s roadside assistance program might come to your mind, you can also find car insurance through CSAA.
The company offers a wide range of discounts for families. A few include the good student discount, driving training discount, multi-vehicle discount, and policy bundling discount.
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Factors that Impact the Cost of Car Insurance for Families
Every family wants to lock in an affordable auto insurance policy. After all, this isn’t the only cost you have to manage when raising a family. Here’s a closer look at some of the factors that impact the cost of car insurance for families:
- Marital status: Typically, married drivers pay less for car insurance than single drivers. While tying the knot may help you save a little on car insurance, it’s not the most significant factor in your auto insurance premiums.
- Age of drivers in the household: Age is one of the biggest factors in your auto insurance costs. Typically, insurance companies charge much higher premiums for teenage drivers than middle-aged drivers. Families adding a teenage driver to their auto insurance policy should expect higher insurance costs.
- Type of coverage: The type of coverage you choose will impact your insurance costs. While you’ll likely need to carry a minimum of liability coverage to drive in your state, there are other options. For example, a full coverage policy that includes both collision and comprehensive coverage will offer more protection for your wallet but also come with higher monthly premiums.
Pros and Cons of Having a Family Car Insurance Policy
Every financial product has advantages and disadvantages. Here’s what you need to know before purchasing a family car insurance policy.
Starting with the pros:
- Savings are likely: Most families can find cheaper rates using the same policy. Some possible savings come from multi-car discounts and lower rates for married couples.
- Easier to manage: Instead of shopping around for multiple car insurance policies, opting for a family plan consolidates your household’s car insurance needs into a single policy. You’ll only have to keep track of one monthly payment.
Now let’s consider the cons:
- Bad driving habits affect the entire household: If you have multiple drivers with traffic violations on their driving record on one policy, that can push your car insurance costs up. Of course, having multiple good drivers with clean driving records will have the opposite effect.
- Household financial dynamics: If you don’t want to combine finances with your spouse or teens, a shared car insurance plan might not be a good fit.
Common Discounts that Help Families Save on Their Auto Insurance
When shopping for car insurance as a family, discounts can make a big difference to your bottom line. Here’s a look at some of the most common deals that can help families tap into cheap car insurance:
- Multi-car discount: The insurer might offer you a discount if you insure multiple cars on the same policy.
- Multi-policy discount: Bundling your homeowners or renters insurance with your car insurance policy can lead to savings.
- Payment discounts: If you can pay for your entire auto insurance premium upfront, many insurance companies will offer you a discount. But some insurance companies will even offer you a discount when you sign up for an automatic payment option.
- Good student discounts: If you have a teenage driver in school, pursuing good grades can pay off in the form of an auto insurance discount.
- Defensive driving course discount: Taking a driving course might not be at the top of your to-do list. But taking a course approved by your car insurance company can help you save.
How to Get the Cheapest Car Insurance Quotes for Families
As a family looking for the cheapest car insurance quotes, there are several steps you can take to lock in the best option to save money. Here’s what you can do:
- Consider your coverage needs: Before looking at different companies, it’s helpful to nail down what kind of insurance you want. At the very least, you’ll need enough coverage to meet your state’s minimum liability insurance requirements, including property damage liability and personal injury liability coverage. But depending on your situation, you might also need comprehensive or collision coverage.
- Choose an appropriate deductible: The deductible attached to your insurance policy is the amount you would have to pay toward repair or replacement costs when filing a claim. In general, a higher deductible leads to a lower premium. But make sure you can comfortably afford to pay the deductible before committing.
- Shop around: One of the easiest ways to get the cheapest rates for your family is to shop around. You can confirm that you are locking in the best rates when you get quotes from multiple insurance companies. Our free auto insurance comparison tool makes it easy to compare quotes across insurance companies.
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FAQ About Cheap Car Insurance Companies for Families
What is the cheapest level of car insurance?
Typically, liability-only car insurance is the cheapest level of car insurance. When opting for a liability-only car insurance policy, you’ll have at least enough coverage to drive legally on public roads in your state. But after an at-fault accident, you’ll be stuck paying for any necessary repairs to your vehicle.
At what age is car insurance cheapest?
New drivers without experience are more likely to get into an accident. With that information in mind, insurance companies typically charge the most for teenage drivers. Many drivers see a steep drop in their car insurance costs after hitting age 25. However, middle-aged drivers around 50 often find the cheapest car insurance rates.
How can I get my car insurance to go down?
As a driver, you can seek out lower car insurance premiums by looking for discounts, increasing your deductible, taking a defensive driving course, and maintaining a good driving record.
Additionally, you might find lower car insurance rates by taking a few minutes to shop around. It’s impossible to know if you are overpaying for car insurance unless you take a quick look at the competitors.
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