Hi All,
I’m a new driver trying to make a cost-conscious but informed decision on auto insurance, and I’d really appreciate some guidance.
I made sure to request identical coverage across multiple insurers so I could compare apples-to-apples. Here’s what I’m currently considering:
Coverage:
- Liability: $30k / $60k (bodily injury) + $25k property damage
- Uninsured motorist: same limits ($30k / $60k + $25k PD)
- Comprehensive: $500 deductible
- Roadside assistance included
Vehicle:
- 2012 Nissan Versa (~$4,000 value) → I intentionally skipped collision since the premium didn’t seem justified relative to the car’s value.
Quotes (monthly):
- Progressive: $238.51
- State Farm: $152.68
- Farmers: $153.70
- Allstate: $167.23
- Geico: $173.18
- AAA: $119 (+ $35 one-time membership)
From a purely financial perspective, AAA seems like the obvious winner. But I’m trying to think beyond just price and consider claims experience, reliability, and long-term value.
Current situation:
- I’ve been with Progressive for ~6 months
- Paying $110/month for liability-only coverage
Where I’m unsure:
- Is going with the lowest premium (AAA) the right move here, or is there a meaningful difference in claims handling/service that justifies paying more?
- Between mid-range options like State Farm / Farmers / Geico, is there any real advantage in practice?
- Are my liability limits too low for a new driver, even with a low-value car?
I’m basically trying to strike the right balance between:
→ not overpaying for a $4k car
→ but also not being underinsured in a worst-case scenario
Would really appreciate insights from people who’ve been in a similar situation or have experience with these insurers.
Thanks in advance!
Trying to be smart, not cheap — which auto insurance would you pick?
byu/ProfessionalHope5578 inInsurance
Posted by ProfessionalHope5578
12 Comments
Just something to think about, if you hit just about any new car 25k is going to go pretty quick.
I would avoid SF or Geico. I would lean towards Farmers or Allstate especially if you can/want to bundle.
I’d skip comp coverage on something that old and definitely up your liability limits, they’re too low for most people to be able to sleep at night.
Your liability limits are way too low. Many vehicles the low end versions start at $50,000 and you hit one your limits are exceeded.
A $5,000 vehicle can do the same damage and put someone in hospital just as much as a $1,000,000 vehicle can.
Great, more AI slop
I do not have a suggestion regarding a carrier, but I do want to echo what some others have said about your liability limits: They are too low. I am sure they are at least the minimum for the state where you live, but the absolute minimum that I would consider reasonable is 100K/300K for BI and 100K for property damage liability. New vehicles are very expensive, and even relatively minor injuries are getting more expensive to treat, which does not take into account that in many areas people are getting more likely to involve attorneys even for minor injuries.
So the thing is that most big name insurers are pretty apples to apples these days when it comes to claims handling. The problem comes in when people purchase policies and don’t understand the coverages they purchased. Then they have a claim and get told XYZ isn’t covered because it was a something they didn’t purchase and that is when they get frustrated with insurers.
If you’d like more data driven ‘review’ or insurers, the Department of Insurance in each state publish their own Consumer Complaint Report. I’ve linked Illinois below just because that is the one for my state, as an example. This report tells you how much premium each insurer writes in your state by line of coverage (auto, home, life) and how many and the type of complaints they have to resolve. It gives a good look into what problems the DOI are consistently seeing for a single insurer but it also helps explain why companies, like State Farm for example, seem to have the most people complaining. They insure approx $2B of premium for Homeowners in IL, that is the biggest share.
https://idoi.illinois.gov/reports/consumer-complaint.html
If you feel a bit uneasy about DIYing your insurance coverage, google a local broker in your area. Their job is to basically do the same thing you are doing but they can shop a lot of the insurers at once. Also they are usually willing to chat with you to explain the different coverages in case you have any questions about if/when you’d want to be covered by a potential claim.
Hope this helps!
Some suggestions for coverage options:
Bodily Injury – 100/300
Property Damage – 100k
Uninsured Motorist – 100/300
Comprehensive – $500 deductible
Roadside – AAA
Rental – $40/day
Not sure what state your in or how much tweaking these numbers affects your premium. In a state like NY or CA, small changes yield larger premium differences. So I guess just try to get it as close to those numbers as possible if you want the most peace of mind for coverage.
Suggestions for agency/company:
Stay away from Geico. I can’t guarantee what problem you will have with them, but you will have a problem with them and it won’t be easy to deal with. I’d love to elaborate, but I think it’d be easier if you just read posts about Geico on this sub.
Allstate and State Farm give you a dedicated agent who will usually take the time to go over things with you more in depth and a little bit less corporate-like than Geico. Just be careful and avoid really large agencies who just churn policies and jerk their clients around more.
AAA has a decentralized confederate style system and are usually pleasant to deal with, but they’re also usually very fast paced and will always try to sell you other products AAA offers. Also to be clear, AAA is the AGENT, they offer policies from many different companies, so if you need to switch later you can stay with them. Just some food for thought there.
I’m not sure how Farmers operates, my apologies. But I can say that Progressive is wildly inconsistent and offers very little back to their customers considering what they take in premium sometimes. I would only recommend them for motorcycles and toys like ATVs, and cars only if they’re the only ones offering you a rate (not the case here).
Hope that helps!
Oh and I would still recommend having collision coverage if it doesn’t kill your premium, but that is totally your call.
I wouldn’t go with any of these. I’d get an independent agent and get their opinion.
Is the Progressive rate $238.51 your current policy? If so, try quoting a new Progressive policy with the coverage you want. Sometimes rewriting with Progressive yields much lower premiums. Progressive is very competitive right now, so seeing their price be so out of line with the others’ seems off.
Contact an independent agent and ask them to shop your policy with multiple carriers. State Farm, GEICO, Allstate, etc., are national names but they aren’t necessarily the best options available. Get a Travelers quote, especially if you’re considering increasing limits to $100k/$300k.
Comparing quotes apples to apples is great, but also make sure each company runs your CLUE and MVR report. If you had any tickets or accidents, then prices may change drastically if they aren’t doing this, and you’ll get a surprise increase when ready to pay and bind the policy.
Progressive or Geico. And please don’t get minimum limits.
Progressive long term. I’ve been with them for 25 years. I have major accident forgiveness and guaranteed renewal. Never had a bit of problem with them. Not once in 25 years.