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Cheap car insurance: The most affordable companies in 2022

Policygenius found that GEICO is the cheapest car insurance company for most people among major providers, with an average cost of $34 per month.

Andrew HurstAnna Swartz

By 

Andrew Hurst

Andrew Hurst

Senior Editor & Licensed Auto Insurance Expert

Andrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

 & Anna Swartz

Anna Swartz

Managing Editor & Auto Insurance Expert

Anna Swartz is a managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.

Expert reviewed

Expert reviewed

This article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.

Learn more about our editorial review process.

by

Ian Bloom, CFP®, RLP®

Ian Bloom, CFP®, RLP®

Certified Financial Planner

Ian Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, he was a financial advisor at MetLife and MassMutual.

Updated  | 8 min read

Policygenius content follows strict guidelines for editorial accuracy and integrity. Learn about our editorial standards and how we make money.

While GEICO is the cheapest auto insurance for most people, the best way to find cheap auto insurance for someone your age with the same driving record is by comparing quotes from multiple car insurance companies in your area.

Why you can trust our picks for cheap car insurance companies

Expand

Our picks for the cheapest car insurance are based on a comprehensive analysis of 27 of the country's largest auto insurance insurance providers. 

To ensure accuracy, experienced data specialists at Policygenius analyzed hundreds of thousands of public rate filings from across the country to find the cheapest car insurance for many different types of drivers.

Read our detailed methodology for more information

What is the cheapest car insurance?

We found that USAA and GEICO usually offer the cheapest car insurance among major insurers. Since USAA is only available to active and retired members of the military and their families, GEICO is the cheapest company for most drivers.

Depending on where you live, you may find even cheaper car insurance from a smaller company like Auto-Owners Insurance or Westfield. Car insurance from these companies can be cheaper than USAA and GEICO, but Auto-Owners and Westfield are available in fewer states.

Graph shows the monthly rate for minimum coverage among the 10 cheapest car insurance companies.

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Cheapest car insurance for most people: GEICO

GEICO

4.4

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

GEICO logo

Cheapest overall for car insurance

Available to drivers in every state and the District of Columbia, GEICO is often the most affordable car insurance for drivers across the country.

GEICO is the cheapest car insurance company for most people. Minimum coverage auto insurance quotes from GEICO are 37% cheaper than average among major companies — those with the largest market shares in the country — with premiums of $34 per month — or $402 per year.

For active and retired members of the military and their families, USAA usually has the cheapest auto insurance. The cost of coverage from USAA is $31 per month, or $369 per year, which makes it 42% cheaper than average among large companies and $33 per year more affordable than GEICO. However, most people aren't eligible for coverage from USAA.

The following table displays rates for a minimum coverage policy from the largest insurance companies in the country. While this type of policy is the cheapest, full coverage car insurance has better protection — though it's more expensive.

RankInsurerMonthly costAnnual cost
1GEICO$34$402
2State Farm$40$475
3Nationwide$52$624
4American Family$56$676
5Travelers$57$683
6Progressive$61$737
7Allstate$63$750
8Farmers$65$781
USAA$31$369

Rates are for a minimum coverage auto insurance policy at the largest companies by market share. Because of its limited availability, USAA is unranked in this table.

Cheapest full coverage auto insurance: GEICO

GEICO

4.4

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

GEICO logo

Cheap rates for full coverage

The cost of full coverage car insurance from GEICO is the cheapest for most people, with an average rate that's $479 cheaper per year than average.

If you want more protection than what a minimum coverage policy offers, you could get the cheapest full coverage car insurance with GEICO. Full coverage from GEICO costs $98 per month (or $1,179 per year), which is 28% less than average among the largest insurance companies.

State Farm also has cheap full coverage auto insurance for many drivers. Even though State Farm is, on average, slightly more expensive than GEICO, the cost of cheap full coverage auto insurance coverage from State Farm is still 25% less than average among large insurers.

RankCompanyMonthly costAnnual cost
1GEICO$98$1,179
2State Farm$103$1,240
3American Family$126$1,515
4Nationwide$131$1,569
5Travelers$132$1,586
6Progressive$151$1,814
7Farmers$164$1,968
8Allstate$166$1,991
USAA$94$1,128

Because of its limited availability, USAA is unranked in this table.

→ Read more about what full coverage is and how much it costs

Cheapest from a smaller company: Auto-Owners Insurance

Auto-Owners Insurance

Auto-Owners Insurance logo

Cheapest among smaller insurers

On average, Auto-Owners Insurance has the cheapest car insurance of any company in the country — but it's only available in 26 states.

While GEICO is the best affordable car insurance option among large insurers, you may be able to find cheaper insurance with a smaller insurance company. Though available in fewer states, Auto-Owners Insurance, Westfield, and Erie Insurance all have cheap auto insurance that costs less than GEICO, on average. 

The cheapest car insurance from a smaller provider comes from Auto-Owners Insurance, with average premiums of $27 per month, or $327 per year. This makes coverage from Auto-Owners cheaper than GEICO by 19%, and cheaper than USAA by 11%. 

Westfield has cheap auto insurance that's less expensive, on average, than both GEICO and USAA, though it’s only offered in 10 states — mostly in the Midwest. Still, at $28 per month, car insurance from Westfield is 16% cheaper than GEICO and 8% cheaper than USAA.

RankInsurance companyMonthly costAnnual cost
1Auto-Owners Insurance$27$327
2Westfield Insurance$28$339
3Erie$31$370
4Farm Bureau$40$478
5Cincinnati Insurance$43$519
6COUNTRY Financial$44$526
7Grange Insurance$50$599
8National General$52$627
9Kemper$57$686
10Auto Club Group$59$712
11Shelter Insurance$63$755
12Main Street America$65$778
13Safeway Insurance$70$837
14Dairyland$84$1,011
15SafeAuto$88$1,053
16Mercury Insurance$90$1,081
17Donegal$96$1,151
18Hanover$124$1,487

Rates are for a minimum coverage auto insurance policy.

→ Read about our picks for the top insurance companies

Cheapest car insurance with an accident: State Farm

State Farm

3.8

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

State Farm logo

Cheapest after an accident

After an accident, the cost of car insurance from State Farm is still hundreds of dollars cheaper per year than other major providers.

The cheapest car insurance for most drivers with an accident is State Farm. Drivers who have been in an accident pay 46% more for car insurance on average than those with clean driving records, but at State Farm an accident causes rates to increase by just 17%.

 While the cost of auto insurance goes up at nearly all companies after an accident, coverage for high-risk drivers at State Farm is still $618 cheaper per year following a crash than second-place GEICO.

RankInsurance companyMonthly costAnnual cost
1State Farm$120$1,445
2GEICO$172$2,063
3American Family$178$2,131
4Travelers$178$2,132
6Farmers$232$2,787
5Nationwide$205$2,461
7Progressive$237$2,848
8Allstate$257$3,080
USAA$128$1,533

Rates are for a full-coverage auto insurance policy after one at-fault accident. Because of its limited availability, USAA is unranked in this table.

Cheapest car insurance with a DUI: State Farm

State Farm

3.8

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

State Farm logo

Cheapest for drivers with a DUI or DWI

On average, drivers with a DUI still pay $1,242 less per year for car insurance from State Farm than other major companies.

State Farm is also the cheapest car insurance company for most drivers with a DUI or DWI on their records. After a DUI State Farm raises the cost of auto insurance by an average of 33% — less than the national average rate increase of 62%.

While Policygenius found that Progressive has the lowest percent increases after a DUI among major insurers, the company's rates for cheap auto insurance are still over $600 more expensive than State Farm's.

RankInsurance companyMonthly costAnnual cost
1State Farm$138$1,652
2American Family$174$2,083
3Progressive$189$2,273
4Travelers$198$2,371
5Farmers$228$2,733
6GEICO$254$3,044
7Allstate$254$3,047
8Nationwide$275$3,298
USAA$175$2,103

Rates are for a full-coverage auto insurance policy after one DUI. Because of its limited availability, USAA is unranked in this table.

Cheapest car insurance for bad credit: Nationwide

Nationwide

4.1

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Nationwide logo

Cheapest for poor or bad credit

Having bad credit raises your car insurance rates significantly, but costs at Nationwide are still half of what drivers with other major insurers.

If you're a driver with bad or poor credit, you may be able to find the cheapest car insurance quotes with Nationwide. Drivers with poor credit see costs that are 41% higher at Nationwide compared to those with good credit, but this was the lowest price hike that we found among large insurers.

Drivers with poor credit may also see cheap car insurance quotes with American Family. The average cost of auto insurance at American Family for drivers with bad credit is virtually the same as at Nationwide — just $1 more per year.

RankInsurerMonthly costAnnual cost
1Nationwide$184$2,205
2American Family$184$2,206
3GEICO$185$2,219
4Travelers$240$2,880
5Farmers$257$3,086
6Progressive$268$3,220
7Allstate$278$3,335
8State Farm$278$3,338
USAA$168$2,018

Rates are for a full-coverage auto insurance policy for a driver with poor credit. Because of its limited availability, USAA is unranked in this table.

→ Read more about the factors that influence what you pay for auto insurance

Cheapest auto insurance for new drivers: State Farm

State Farm

3.8

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

State Farm logo

Cheapest for new and teenage drivers

While some companies charge new drivers more than $10,000 per year for car insurance, rates at State Farm are substantially lower for the most inexperienced drivers.

While it can be hard for new and teen drivers to find affordable auto insurance, most new drivers could find the cheapest car insurance with State Farm. The cost of car insurance from State Farm is 42% cheaper than average compared to other large companies — a difference of nearly $3,000 per year.

New drivers may also find low-cost auto insurance with American Family and GEICO. While both premiums with both companies are much more expensive than State Farm, they are both 31% cheaper than average.

RankInsurerMonthly costAnnual cost
1State Farm$319$3,822
2American Family$377$4,522
3GEICO$381$4,572
4Nationwide$467$5,605
5Travelers$601$7,215
6Allstate$708$8,501
7Progressive$826$9,910
8Farmers$874$10,488
USAA$384$4,603

Table displays sample quotes for a 16-year-old driver with their own insurance policy for a 2017 Toyota Camry. Because of its limited availability, USAA is unranked in this table.

→ Read more about where new and young drivers can get the best, cheap coverage

Cheapest auto insurance for seniors: State Farm

State Farm

3.8

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

State Farm logo

Cheapest for senior and elderly drivers

Seniors often pay less for car insurance than younger, more inexperienced drivers — and State Farm usually offers the cheapest coverage.

Seniors looking to cut their expenses could find the cheapest car insurance with State Farm. On average among large companies, the cost of car insurance with State Farm is 23% more affordable than its competitors. 

Seniors may also find cheap car insurance rates from GEICO, where average rates are just $19 per year more expensive than at State Farm. While it’s slightly more expensive than State Farm for seniors, GEICO is still 21% cheaper than industry-average.

RankInsurerMonthly costAnnual cost
1State Farm$89$1,064
2GEICO$90$1,083
3American Family$108$1,292
4Nationwide$108$1,298
5Travelers$113$1,355
6Progressive$131$1,567
7Farmers$153$1,837
8Allstate$160$1,914
USAA$80$955

Table displays sample quotes for a 65-year-old driver with their own insurance policy for a 2017 Toyota Camry. Because of its limited availability, USAA is unranked in this table

→ Read more about how seniors can get low-cost auto insurance

Cheapest car insurance in each state

Because the cost of car insurance depends on your location and the amount of insurance required in your state, the company with the cheapest premiums varies by state. For most people, GEICO usually has the cheapest car insurance quotes. Policygenius found that GEICO has the cheapest auto insurance in 13 states.

USAA is also frequently a cheap option. In fact, USAA is the most affordable option in 18 states, meaning the company is more likely to be the cheapest option than GEICO is. However, its limited eligibility means that USAA is not the cheapest auto insurance company for most people, except in states with large military populations.

Besides GEICO and USAA, the cheapest car insurance in your area might come from State Farm, American National Insurance, or Auto-Owners Insurance, along with a range of other small companies.

StateCompanyMonthly costAnnual cost
AlabamaGEICO$81$977
AlaskaUSAA$78$930
ArizonaRoot$62$747
ArkansasUSAA$80$962
CaliforniaWawanesa$93$1,110
ColoradoAmerican National$68$811
ConnecticutGEICO$63$756
DelawareState Farm$96$1,152
District of ColumbiaGEICO$85$1,025
FloridaGEICO$119$1,432
GeorgiaAuto-Owners Insurance$72$858
HawaiiGEICO$65$785
IdahoAmerican National$42$498
IllinoisFAIA$59$712
IndianaUSAA$59$706
IowaState Farm$60$719
KansasUSAA$76$912
KentuckyGEICO$85$1,019
LouisianaUSAA$124$1,486
MaineGEICO$48$571
MarylandUSAA$67$806
MassachusettsGEICO$89$1,067
MichiganGEICO$88$1,059
MinnesotaWestern Agriculture$80$964
MississippiUSAA$71$856
MissouriUSAA$62$741
MontanaUSAA$71$856
NebraskaAuto-Owners Insurance$86$1,036
NevadaGEICO$87$1,043
New HampshireUSAA$56$676
New JerseyGEICO$90$1,078
New MexicoUSAA$76$907
New YorkMain Street America$86$1,033
North CarolinaGEICO$61$736
North DakotaUSAA$66$786
OhioUSAA$59$711
OklahomaUSAA$79$949
OregonState Farm$70$843
PennsylvaniaErie$85$1,018
Rhode IslandState Farm$82$983
South CarolinaAmerican National$57$683
South DakotaKemper$94$1,128
TennesseeState Farm$63$755
TexasTexas Farm Bureau$86$1,036
UtahGEICO$71$856
VermontState Farm$56$666
VirginiaUSAA$65$776
WashingtonUSAA$86$1,033
West VirginiaUSAA$72$869
WisconsinUSAA$57$680
WyomingAmerican National$64$763

Rates are for a minimum coverage auto insurance policy.

No matter where you live, Policygenius recommends comparing quotes from multiple companies in order to find the cheapest rates for your coverage needs.

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How to get the cheapest full coverage auto insurance

Most drivers need what’s referred to as full coverage car insurance, which is a policy that includes comprehensive and collision coverage in addition to liability coverage. While full coverage car insurance costs more than just getting the bare minimum, there are ways to bring down your rates and still get the protection you need.

  1. Shop around. Policygenius can help you compare quotes from multiple insurers and make it easy to choose the best coverage at the best rates

  2. Set the right limits and deductibles. Consulting with an independent expert can help you make sure you’re not paying for more coverage than you need. Setting a higher deductible can also mean lower rates.

  3. Look into discounts. Car insurance companies offer discounts to help you save on your policy. Get familiar with common car insurance discounts and make sure you’re getting all the savings you qualify for.

  4. Avoid accidents and tickets: As long as you avoid accidents, traffic tickets, and other citations, you could receive a discount for being a safe driver. If you have an accident or other violation on your record, your rates will still go down over time — as long as you avoid any more accidents.

  5. Bundle policies: Companies usually offer significant discounts to policyholders who bundle their car and homeowners insurance. If you already have home insurance, consider purchasing car insurance from the same company for lower rates.

  6. Pay your premiums all at once instead of monthly: If you can afford it, you could save money by paying the entire amount of your premium all at once. Even if you can't afford to pay in full, you could get a discount by signing up for automatic payments.

Car insurance discounts for more affordable 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 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

Frequently Asked Questions

Who has the cheapest car insurance?

GEICO has the cheapest car insurance for most people, but depending on your driving history and location — among other factors — another company could be the better choice. State Farm is often the best for drivers who have been involved in a crash or have a DUI on their records, while Nationwide may be the most affordable auto insurance option for drivers with poor credit.

What are the risks of cheap car insurance?

Cheap car insurance may not be the best option for most people. Policygenius recommends purchasing as much liability coverage as you can afford, since cheap policies with low coverage levels could leave drivers unprotected if they are involved in a car crash. Cheap car insurance companies may also have poorer customer service than slightly more expensive insurers.

What are the benefits of cheap car insurance?

Cheap car insurance allows drivers to pay less for coverage. If they cannot afford more than their state's minimum insurance requirements, a cheap, minimum coverage policy will still protect them from the legal penalties of driving uninsured.

How can I find the cheapest car insurance for me?

The cheapest car insurance for you may not be the most affordable option for most people. Because the cost of coverage varies depending on location, driving history, and a range of other factors, Policygenius recommends comparing quotes and discounts from more than one provider to find the best option for you.

Methodology

Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. For full coverage policies, the following coverage limits were used:

  • Bodily injury liability: 50/100

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: 50/100

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

In some cases, additional coverages were added where required by state or insurer.

Rates for overall average rate, rates by ZIP code, and cheapest companies determined using averages for single drivers ages 30, 35, and 45. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles/year.

Rates for driving violations and “Poor” credit determined using average rates for a single male 30-year-old driver with a credit score under 578.

Rates for a "new" driver were determined using a sample profile for a 16-year-old, while our "senior" driver was 65-years-old.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.