Which insurance company has the cheapest automobile insurance?

Answer 1

It depends. Auto insurers determine premium on the car (type, value, claims history, etc), on the driver of the car, on the area in which the car is located, on the typical usage of the car and on the internal situation of the company itself.

That being said, the cheapest auto insurance is not always the best. The lowest coverages you can buy are usually the most expensive for the amount of coverage you receive. For example, you might be able to save $10/month on your premiums, but if you are losing $500,000 of coverage by doing so, is it really worth it?

The purpose of insurance is to provide money in case you have a financial loss or cause a financial loss to someone else. The amount of insurance you carry does not change the amount of exposure you face in those circumstances, only what they will pay in your stead. For example, if you cause an injury to someone and they have $100,000 worth of medical bills you could very well be found liable to pay them. If you only have $25,000 of insurance, you would still be responsible for paying the remainder. If you don't have that money available to you, your future earnings could be attahced, and legal judgments cannot be discharged through bankruptcy so there is really no way around it.

The question then is are you still sure you want the cheapest insurance?