What Are Some Cheap Motor Insurance Companies?

There are several companies that offer cheap motor insurance to customers.  These companies offer low cost coverage to meet the basic auto insurance needs of an individual, as may be required in certain jurisdictions.  Finding the names of cheap motor or “affordable” auto insurance companies is not easy to accomplish without providing a lot of information about your insurance needs, current carrier, vehicle make, year and model and other personal data.  The purpose of this is to provide your information to a broker or agent network for follow-up.

If you do not wish to be contacted directly by a salesperson trying to sell you a new policy, here is a list of 3 different cheap motor insurance companies and the types of cheap motor insurance policies that they offer to policyholders.

GEICO

Berkshire Hathaway owns GEICO, which stands for the Government Employees Insurance Company. GEICO offers cheap and low cost auto insurance coverage to individual drivers and has more than 9 million policyholders.

GEICO was founded in 1936 and marketed its insurance products primarily to federal government employees (hence the name). The ability of GEICO to offer cheap auto insurance coverage is in the fact that the company markets itself primarily via the telephone and the internet. The company does not use a career distribution system of agents to sell its products but spends heavily on television and radio advertising to market itself. The company is known for its iconic gecko mascot and popular caveman ads. GEICO is the third largest seller of cheap motor insurance in the United States.

Progressive

Progressive Corporation and its Progressive Casualty Insurance Company have been in the business of selling personal automobile insurance since 1937.  The company distributes its auto insurance policies via independent agents and directly and also invests in television and radio advertising to increase its marketing presence. The company touts that its rates are the lowest of all of its competitors and provide a real-time comparison to its customers to demonstrate this fact. It should be noted that the only company that Progressive cannot compare itself with is GEICO who only provides its rates through its own distribution channel. Progressive has over 11 million policyholders and is the second largest seller, slightly ahead of GEICO.

Farmers Insurance

Founded in 1928, Farmers Insurance company is the third largest writer of personal lines insurance, which includes both auto and homeowners insurance. The company, which is based in Los Angeles, acquired AIG Auto Insurance and 21st Century Insurance in order to expand its offering of cheap insurance companies and products for its policyholders.

Be careful when searching for cheap motor insurance companies online not to select those that are based in the United Kingdom, as these companies do not issue coverage to drivers in the United States. Using the search term motor insurance is not a term that is familiar to U.S. drivers but is more commonly used in the U.K. and England.

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