No one wants to overpay for auto insurance. Whether you’re in Milwaukee or Sheboygan, Green Bay or Platteville, you want a good deal on things that are necessary and the things that are important to you. Having auto insurance is non-negotiable—it’s the law in the Cheese State. So what is the cheapest car insurance in Wisconsin?

Cheap auto insurance in Wisconsin
Find the cheapest car insurance in Wisconsin. Image by David Mark from Pixabay

But, it also saves you money later if you’re involved in any type of accident or mishap. Plus, it can supplement your health insurance if you were to get injured. It’s definitely worth it to pay a little more now and save yourself a headache, additional funds, or even a lawsuit later on.

Finding the Cheapest Car Insurance in Wisconsin

Fortunately for WI residents, the auto insurance rates for the state are more affordable than the nationwide average – $272 less on average to be more specific. There are various factors that come into play when insurance companies decide upon their rates, which are based on research and statistics, driver demographics, location, among other things.

What Insurance Rates Depend On

The price you pay for insurance is dependent on several things. Some you may deem unfair, but believe it or not, there is adequate research involved in these deciding factors.

  • Age: The younger the driver, the riskier. Those aren’t judgments—those are overall facts. The average cost difference between a teen driver and a driver in their 50’s is over $1,000 for a 6-month premium. The same goes for older drivers.
  • Driving History: This factor is pretty common sense. If you receive multiple tickets and are accident-prone, you are a risk to insurance companies, so they are going to charge you more upfront.
  • Credit Score: Why would this matter? According to the Federal Trade Commission, drivers with poor credit file more claims than those with good credit.
  • Years of Driving Experience: To insurance companies, you are less risky the more driving experience you have. Plain and simple.
  • Location: Certain states require specific types of coverage, which can, in turn, affect the cost. In addition, your zip code plays a fairly important role in determining your premium. Bigger cities often are higher than in towns and rural areas. Where you physically park your car makes a difference as well. Parking in a single-home garage is less risky than parking in an actual parking garage, outside, or on the street.
  • Gender: Statistics show that male drivers exhibit more risky driving behaviors than females. There usually isn’t too big of a jump for being a male, but this is still a factor.
  • Insurance History: If you are fickle about which insurance company you want to stay with or are the type of insurer who often allows your policy to lapse, the next auto insurance company will most likely frown on your inconsistent behavior. They want someone who will pay on time and stick with them.
  • Annual Mileage: The more miles you travel per year, the more you are on the road and at risk for something happening. The difference typically isn’t huge though and varies state by state.
  • Marital Status: The monetary difference isn’t significant, but you do get a little perk for being married.
  • Claims History: This should be fairly obvious. The more claims you file, the insurance company is going to view you in one of two ways: risky or suspicious.
  • Coverage Level: Undoubtedly, the more coverage you have, the more money you pay.
  • Additional Perks/Discounts Offered: Rates also depend on company-specific perks and discounts that they may offer. By asking the insurance company what they have, you could save quite a penny.

Now that you know about the factors insurance companies review in order to get you a rate quote, let’s look at the special factors in the state of WI that can either cost you more money or save you money.

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Special Factors in Wisconsin that May Decrease Your Rates

Thankfully, the pros outweigh the cons of living in the state of WI regarding insurance rates. Wisconsin is going to have different factors versus finding the best car insurance for California or even places further north like New York and Illinois.

According to Progressive, there are certain reasons why auto insurance in WI and a few other states are the cheapest among the nation.

  • Favorable weather
  • Small population density
  • Low crime rates
  • Lack of dangerous intersections
  • Insurance requirements are minimal

Required Coverage in Wisconsin

Every state has a specific minimum required auto insurance coverage that each driver must obtain. According to the insurance commissioner  for WI, the minimum legal requirements are as follows:

  • $25,000 bodily injury per person;
  • $50,000 bodily injury per accident;
  • $10,000 for property damage; and
  • Uninsured motorist coverage of at least $25,000/$50,000 for bodily injury

This is the minimum coverage, and each driver has the ability to increase their coverage based on their own individual needs. However, if you take out a loan to purchase your vehicle, your lender may require additional coverage.

If you are interested in adding coverage, these are some of the options available in Wisconsin:

  • Comprehensive
  • Collision
  • Loan/Lease Payoff
  • Medical Payments
  • Rental Car Reimbursement
  • Roadside Assistance
  • Underinsured Motorist Bodily Injury

Largest Insurance Providers in Wisconsin

The five largest insurance providers in WI are American Family Insurance, Progressive, State Farm, Allstate, and Geico. By largest, they hold the most policies within the state.

But does large mean cheaper? Some may say so, but let’s look at the facts.

The following are 12-month policy averages:

These are 12-month policy averages for the state of Wisconsin.

The Best Cheap Car Insurance in Wisconsin

As of March 2019, the following are considered the most affordable insurance companies in WI. You can compare these rates to those above and see that going with the more familiar or larger company won’t always save you money.

Discounts Offered by Each of the Cheapest Companies in Wisconsin

  • Pekin Insurance: multi-car, advance issue, anti-theft device, auto/home insurance, defensive driver, EFT, good student, hybrid auto, paid-in-full, tenure
  • Rockford Mutual: good student, multi-vehicle, defensive driving course, anti-theft, multi-policy discount, 3 and 5-year incident-free, and loss-free
  • Erie: Erie rate-lock, multi-policy, safety savings, youthful driver discount, and college credit
  • Partners Mutual: multi-policy, pay in full, advance issue, passive restraints, daytime running lights, anti-lock brakes, good grades, and multi-vehicle
  • USAA: safe driver, defensive driving, driver training, good student, multi-vehicle, vehicle storage, annual mileage, family discount, length of membership, and military discount

Price Difference from Company to Company

Insurance rates can vary from company to company within the same state, even sometimes very dramatically. Why is this? There are a few reasons:

  • The cost of discounts: Certain companies offer more discounts than others; some people are aware of these and many are not unless they are told or they ask. It would be beneficial to compare a few companies and ask for a complete list of the discounts each offer. Be sure to update your demographic information if anything has changed (marital status & location) as well as any other circumstance that may get you a discount–forgetting to do so can cost you in the long run.
  • Choosing a company that uses credit scoring: This factor could either help or hurt your rate. If you have excellent credit, you will want to seek out an insurance company that includes credit scoring to determine the premium; however, if yours is sub-par, then you may want to go elsewhere.
  • Available perks: Everyone loves a good perk, but it may cost you to get them. Many auto insurance companies have “free” built-in options such as roadside assistance or bodily injury coverage for pets, yet you may technically be paying for this in your premium.
  • Ability to combine policies to cut costs: Certain auto insurance companies offer homeowners or renters policies among other things. It is cheaper when you receive coverage for multiple things together than to separately cover them using different insurance companies or separate policies.
  • Claim experiences and rate increases: If an auto insurance company is obtaining too many claims and are not charging enough premium, they will typically raise their overall rates to cover those costs.

Summary of Best Cheap Car Insurance in Wisconsin

If you are living in the great state of Wisconsin, there are several cheap auto insurance options for you to choose from, especially since WI has one of the lowest rates in the nation. It is not advised to go with the first insurance company you research–do more research and compare prices, look at discounts and see what other factors may affect your individualized rate.

Once you put in some leg work upfront, you should be able to find a cheap and effective insurance policy that is just right for your needs.

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Johnny Jet Editorial