Cheap car insurance

We compared quotes from five of the largest auto insurance companies in the U.S. and found that Progressive had the cheapest rates for a “full coverage” policy with an annual premium of $864.

The best way to get cheap car insurance coverage that fits your needs is to compare quotes from multiple companies. You may be quoted $150 a month by one insurance company while the same coverage can cost you just $75 a month at another. 

If you want the cheapest coverage no matter where you go, you can also set lower coverage limits and higher deductibles. But be careful when choosing a bare-bones policy — the less insurance you have to cover you in case of an accident, the more you’ll have to pay out of pocket, meaning a cheaper policy can actually cost you in the long run.

KEY TAKEAWAYS

  • Compared to four other large-and-in-charge auto insurance companies in the U.S., we found Progressive had the cheapest rates for a “full coverage” policy with an annual premium of $864

  • According to the National Association of Insurance Commissioners, Maine, Idaho, Iowa, Wisconsin, and North Dakota are the states with the cheapest average car insurance rates

  • If you want to find the best auto insurance, we recommend comparing quotes at multiple insurers to find the most coverage for the cheapest price

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What company has the cheapest auto insurance?

We compared quotes from five of the largest auto insurance companies in the U.S. and found that Progressive had the cheapest rates for a “full coverage” policy with an annual premium of $864. Here’s how Progressive’s annual insurance rates compare to some of its top competitors:

CAR INSURANCE COMPANYANNUAL CAR INSURANCE PREMIUM
Progressive$864
GEICO$925
Liberty Mutual$1,143
Nationwide$1,639
State Farm$1,885

The sample driver used for the above rates was a single woman, age 35, driving a 2014 Toyota Camry, with a clean driving record. Rates vary based on these factors, so a married man with the same car might get a different quote from the same insurer. Rates can also vary across insurance companies, so while Progressive was the cheapest option for our sample driver, it may not be the cheapest option for every driver.

How to get the cheapest full coverage car insurance

A “full coverage” policy is one that includes comprehensive coverage , for damage to your car that’s not caused by a collision, and collision coverage , for damage to your car after an accident, in addition to liability coverage . Most states require a minimum amount of car insurance for you to legally drive, but those minimums don’t provide enough coverage to ensure your full protection in case of an accident, and don’t include comp and collision, which are recommended for most drivers. 

You can get the cheapest full coverage car insurance policy by setting low limits for liability coverage. You can set your liability coverage limits as low as your state’s required minimum, but if you cause an accident that results in more damage than your policy limits, you’ll be on the hook for the rest. We recommend choosing at least $50,000 per person and $100,000 per per accident in bodily injury liability and at least $50,000 per accident in property damage liability.

BASIC COVERAGESPOLICY LIMITS
Bodily injury liability$50,000 each person, $100,000 each accident
Property damage liability$50,000 each accident
Medical payments coverage$5,000 each person
Uninsured/underinsured motorist$50,000 each person, $100,000 each accident
Comprehensive$500 deductible
Collision$500 deductible

Setting high deductibles on comprehensive and collision, meaning how much you must pay up front before that coverage can kick in, can also help you save money in the short-term by lowering your rates, although it can cost you if you wind up needing to use that coverage. Comp and collision deductibles can typically be set to either $500 or $1,000. A lower deductible means you pay less money out of pocket when your claim is accepted, but your rates will be higher, while a high deductible means paying more in the event of a claim, but your rates will be lower. 

What are the cheapest states for car insurance?

According to the National Association of Insurance Commissioners, Maine, Idaho, Iowa, Wisconsin, and North Dakota are the states with the cheapest average car insurance rates. [2]

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Generally speaking, the cheapest states for car insurance are also some of the least densely populated, and car insurance requirements in these states tend to be lower.

What are the cheapest cars to insure?

The make and model of the car you drive, in part, determines the cost of your car insurance. In a 2020 study, AAA examined the ownership costs associated with different types of vehicles and found that small SUVs, minivans, and medium SUVs were the cheapest cars to insure . [3] Here’s a look at the insurance premiums for each vehicle-type compared in the study:

TYPE OF CARANNUAL COST OF CAR INSURANCE
Small SUV$1,087
Minivan$1,096
Medium SUV$1,118
Hybrid$1,212
Electric$1,227
Pickup$1,242
Medium sedan$1,245
Large sedan$1,264
Small sedan$1,342

Car insurance discounts that can reduce your rates

You can reduce your car insurance rates by earning discounts for anything from driving safely to bundling policies with the same insurer. Different insurance companies offer different discounts, so check with yours to see which ones you are eligible for. The most common types of car insurance discounts include:

  • Safe driver discount - A history of safe driving with no accidents or violations can save you big bucks when you apply. You might also be eligible for a discount by completing a driver’s education course 

  • Claims free discount - Drivers who’ve gone a certain amount of time without filing a claim can earn a discount

  • Safety and security equipment discounts - You may be able to get a discount for having an anti-theft device in your car, such as an alarm system or a GPS tracker

  • University or military affiliation discounts - Being affiliated with a sorority, fraternity, or university can result in premium discounts with certain insurers. A similar discount may also be extended to drivers who have served in the military or who work for certain employers

  • Bundling discounts - You can save big when you bundle your home and auto insurance policies. You may also be able to save by bundling your car and motorcycle policy or your auto and renters policy

  • Paying in full - You may be offered a discount if you decide to pay your annual car insurance premium up front rather than monthly

How to get the best and cheapest auto insurance

When it comes to car insurance, some companies have better customer satisfaction ratings than others, and it might be worth paying a little extra if it means a better experience when it comes time to file a claim. 

It helps to consider third-party ratings like the J.D. Power 2020 U.S. Auto Claims Satisfaction Study, [4] which rates how happy drivers are with the claims service from their car insurance company, from filing to repairs to settlement amounts. 

INSURANCE COMPANYJ.D. POWER RATING
NJM Insurance Co.909
Amica Mutual907
Auto-Owners Insurance890
USAA890
The Hartford888
MetLife886
State Farm881
Erie Insurance880
Allstate876
Nationwide876
Farmers872
Industry Average872
Esurance871
GEICO871
Safeco870
Liberty Mutual867
Auto Club of Southern California Insurance Group866
COUNTRY Financial863
American Family862
CSAA Insurance Group862
Travelers861
Automobile Club Group858
Progressive856
Mercury849
MAPFRE844
National General815

If you want to find the best and cheapest auto insurance, we recommend comparing quotes from multiple insurers to find the most coverage for the cheapest price. A number of factors determine what your insurance premiums will be, including your age, driving history, ZIP code, and the make and model of your car. But the same driver will still get different quotes from different insurers, which is why it’s important to shop around.