Cheapest car insurance companies overall
We found that the cheapest car insurance company overall is Auto-Owners, which offers minimum coverage for $27 per month. That’s $293 less than the national average — but Auto-Owners isn’t available in every state.
Many of the companies with cheap insurance aren't available everywhere. USAA and GEICO have the cheapest car insurance when it comes to nationally available companies, but USAA is only available to drivers in military families, so the average person is more likely to find low car insurance rates with GEICO.
Company | Average monthly cost | Average annual cost | |
|---|---|---|---|
$27 | $327 | ||
$28 | $335 | ||
$31 | $369 | ||
$31 | $370 | ||
$34 | $402 | ||
$40 | $475 | ||
Farm Bureau | $40 | $478 | |
$44 | $526 |
Overview of the cheapest car insurance companies
Auto-Owners
4.7
Bundle home & auto
Offers gap coverage
Mobile app
Good student discount
Offers classic car insurance
Offers motorcycle insurance
Why we chose it
Auto-Owners has the cheapest car insurance rates for both minimum and full coverage, along with add-ons like gap insurance, accident forgiveness, and lots of discounts.
Pros and cons
Pros
Lower-than-average rates
Offers gap coverage
Owned by its policyholders
Cons
Not offered in every state
More details
State availability
Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia, Wisconsin
MAPFRE
4.6
Good student discount
Bundle home & auto
Offers new car replacement
Mobile app
Why we chose it
Poor credit can affect your car insurance rates almost as much as an accident, but MAPFRE has the best rates for drivers with poor or bad credit scores.
Pros and cons
Pros
Cheap rates for clean driving records
Useful add-ons, like personal belongings coverage
Offers a handful of discounts
Cons
Not available in every state
More details
State availability
Arizona, California, Connecticut, Idaho, Indiana, Kentucky, Maine, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Washington, Vermont
USAA
5.0
All 50 states
Bundle home & auto
Usage-based discount
Good student discount
Coverage for rideshare drivers
Mobile app
Offers classic car insurance
Offers motorcycle insurance
Why we chose it
USAA has the cheapest car insurance rates for drivers who are a member of the military, a veteran, or a part of a military family (it’s also known for high customer service ratings).
Pros and cons
Pros
Low rates
Available nationwide
High customer service ratings
Cons
Only available to military members and their families
More details
State availability
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Erie
4.9
Offers new car replacement
Good student discount
Accident forgiveness
Bundle home & auto
Mobile app
Coverage for rideshare drivers
Offers classic car insurance
Usage-based discount
Offers motorcycle insurance
Offers gap coverage
Why we chose it
In addition to being one of the cheapest car insurance companies around, Erie also offers drivers a range of add-ons, including gap insurance and personal belongings coverage. A policy from Erie comes with accident forgiveness after three years, too.
Pros and cons
Pros
Low car insurance rates
Lots of useful add-ons, like new car replacement
Accident forgiveness automatically included after three years
Cons
Not available in every state
More details
State availability
District of Columbia, Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin
GEICO
4.7
Offers classic car insurance
Offers motorcycle insurance
Usage-based discount
Mobile app
All 50 states
Good student discount
Why we chose it
While GEICO doesn’t have the absolute cheapest rates for minimum or full coverage, it’s still one of the cheapest companies around and it’s available in every state, which isn’t true of every car insurance company.
Pros and cons
Pros
Available in all 50 states
Easy-to-use digital tools
Plenty of discounts
Cons
Only sells through GEICO agents
Doesn’t underwrite its other products
More details
State availability
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
State Farm
4.8
Bundle home & auto
Coverage for rideshare drivers
Good student discount
Mobile app
Usage-based discount
Offers motorcycle insurance
Offers classic car insurance
Why we chose it
State Farm has cheap minimum and full-coverage car insurance. It’s also cheap for drivers with an accident or violation on their record, like an accident or DUI.
Pros and cons
Pros
Available in almost every state
Low rates for teens and drivers with accidents
High customer satisfaction ratings
Cons
Limited coverage options
More details
State availability
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Farm Bureau
4.7
All 50 states
Bundle home & auto
Good student discount
Mobile app
Offers classic car insurance
Usage-based discount
Why we chose it
Farm Bureau’s car insurance costs much less than average, even after you take into account the membership fee. Farm Bureau also has the cheapest rates for parents who need to add a teen driver to their policy.
Pros and cons
Pros
Cheap rates
Offers new car replacement
Special discount for drivers under 25
Cons
Coverage and rates can vary by region
More details
State availability
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
COUNTRY Financial
4.7
Bundle home & auto
Mobile app
Offers new car replacement
Smart home discounts
Why we chose it
COUNTRY Financial finishes our list of the cheapest car insurance companies. COUNTRY offers add-ons like personal belongings insurance, new car replacement, and other extras (but not gap insurance).
Pros and cons
Pros
Lower-than-average rates
Lots of coverage options
Low number of customer complaints
Cons
Only available in 19 states
Not rated by S&P or Moody’s
More details
State availability
Alaska, Alabama, Arizona, Colorado, Georgia, Idaho, Iowa, Illinois, Indiana, Kansas, Minnesota, Missouri, Nevada, North Dakota, Oklahoma, Oregon, Tennessee, Washington, Wisconsin
Cheapest car insurance by driver
We analyzed cost data to find the companies with cheap car insurance for different types of drivers. While Auto-Owners has the cheapest car insurance rates overall, that doesn't mean it's necessarily the cheapest company for you.
The best way to find cheap car insurance that fits your budget and your needs is by shopping around and comparing quotes from more than one company.
Cheapest for full coverage: State Farm
Cheapest for families with teen drivers: Farm Bureau
Cheapest for senior drivers: State Farm
Cheapest for good drivers: Progressive
Cheapest after an accident: State Farm
Cheapest after a DUI: State Farm
Cheapest after a speeding ticket: State Farm
Cheapest for non-standard car insurance: National General
Methodology: Why you can trust our picks for the cheapest companies
How we found the cheapest rates
Policygenius experts analyzed hundreds of thousands of rates from more than 130 companies to find the cheapest car insurance in America for different types of drivers.
Our analysis used rate data provided by Quadrant Information Services. Our sample policy was for a 30-year-old male driver with a 2017 Toyota Camry and the following coverage limits:
Bodily injury liability: $50,000 per person, $100,000 per accident
Property damage liability: $50,000 per accident
Uninsured/underinsured motorist: $50,000 per person, $100,000 per accident
Comprehensive: $500 deductible
Collision: $500 deductible
We found the cost of adding a new driver using a sample 16-year-old driver, while our rates for senior drivers were for drivers ages 60 to 70 years old.
"Small" and "large" car insurance companies are based on market share. Our recommendations for cheapest smaller companies fall outside of the top 10 largest companies for market share. Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
How we calculated our ratings
We calculated our expert ratings by considering cost, availability, customer experience and satisfaction, and coverage options. Our own Policygenius agents — who have years of experience working with real car insurance shoppers — also weighed in.
We assigned weights to each category based on its relative importance, then found the weighted average of these values for each company. The raw scores we assigned to each company were converted into a “z-score” and then a “t-score,” which were then standardized on a 5-point scale.
To come up with our company ratings, we accumulated company data for price, financial strength, customer experience, and coverage options. Each category's weight is based on research and insight from our own licensed insurance editors and operations specialists. Here’s how our ratings categories break down:
Price (35%): We gave each company a score based on its average rate and available discounts.
Financial strength (25%): We gave point values based on each company’s A.M. Best Financial Strength Rating, S&P credit rating, and Moody’s credit rating.
Customer experience (20%): We scored companies based on how they performed on the most recent J.D. Power Auto Claims Satisfaction and Digital Experience surveys. This category also considers a company's complaint index, which is provided by the National Association of Insurance Commissioners.
Coverage options (20%): We scored companies for the number of coverage types offered and the quality of these options. Less common endorsements earned higher scores compared to add-ons that most companies offer.
Cheapest car insurance from a large company: GEICO
GEICO has the cheapest car insurance of any large company that’s available in every state. On average, GEICO is $34 per month or $402 per year for a minimum coverage policy. That’s $215 less than average per year.
Company | Average monthly rate | Average annual rate |
|---|---|---|
GEICO | $34 | $402 |
State Farm | $40 | $475 |
Nationwide | $52 | $624 |
American Family | $56 | $676 |
Travelers | $57 | $683 |
Cheapest large car insurance companies for minimum coverage.
Cheapest full-coverage car insurance: State Farm
We found that State Farm has the cheapest full-coverage car insurance for most drivers. The cost of a full-coverage policy from State Farm is $95 per month or $1,141 a year, which is $497 cheaper than average.
Company name | Average monthly rate | Average annual rate |
|---|---|---|
MAPFRE | $87 | $1,040 |
USAA* | $87 | $1,044 |
State Farm | $95 | $1,141 |
Auto-Owners Insurance | $97 | $1,165 |
Erie | $98 | $1,181 |
Cheapest car insurance companies for full-coverage.
Cheapest car insurance for families with teen drivers: Farm Bureau
Farm Bureau is the cheapest car insurance company for families with teens. On average, adding a teen driver (16 to 19) to your Farm Bureau policy will raise your rates to $168 per month, or $2,012 per year. That’s less than the national average of $3,327 per year.
Farm Bureau also has affordable rates for young drivers who get their own policies (though that’s still much more expensive than adding a teen to an existing policy).
Company | Average monthly rate | Average annual rate |
|---|---|---|
USAA* | $165 | $1,983 |
Farm Bureau | $168 | $2,012 |
NJM | $169 | $2,022 |
GEICO | $179 | $2,147 |
MAPFRE | $202 | $2,420 |
Cheapest car insurance companies for families that add a teen to a policy.
Cheapest car insurance for seniors: State Farm
We found that State Farm is the cheapest car insurance company for senior drivers (60 to 75). Full coverage from State Farm costs seniors $87 per month or $1,050 a year. That’s $451 cheaper than average for this age group.
Company | Average monthly rate | Average annual rate |
|---|---|---|
USAA* | $81 | $974 |
State Farm | $87 | $1,050 |
Erie | $92 | $1,104 |
Auto-Owners | $92 | $1,108 |
GEICO | $94 | $1,123 |
Cheapest car insurance for drivers 60 to 75 years old with full coverage.
Cheapest car insurance for military families: USAA
USAA has the cheapest car insurance for military families and veterans. On average, a policy that includes a driver aged 16 to 21 years old costs an average of $141 per month with USAA. That’s $966 cheaper than average ($2,653 per year).
USAA isn’t just cheap for families. It’s one of the cheapest car insurance companies overall, with an average rate of $87 per month for a single driver.
Company | Average monthly rate | Average annual rate |
|---|---|---|
USAA | $141 | $1,687 |
Farm Bureau | $154 | $1,850 |
NJM | $154 | $1,853 |
GEICO | $155 | $1,856 |
Auto-Owners | $188 | $2,260 |
Cheapest car insurance for families with a 16 to 21 year old and full coverage.
Cheapest car insurance for good drivers: Progressive
Progressive has extremely cheap car insurance compared to its competitors, especially if you're a good driver who’s comfortable sharing data about your driving habits through Progressive’s Snapshot mobile app.
Safe drivers who sign up for Snapshot (Progressive’s usage-based insurance program), pay an average of just $70 per month for car insurance.
Company | Average monthly rate | Average annual rate |
|---|---|---|
Progressive | $70 | $838 |
USAA* | $87 | $1,050 |
MAPFRE | $89 | $1,066 |
Nationwide | $91 | $1,088 |
State Farm | $91 | $1,091 |
Cheapest car insurance for drivers with a usage-based discount and full coverage.
Cheapest car insurance after an accident: State Farm
It’s usually harder to find affordable insurance after an at-fault accident. We found that State Farm has the cheapest car insurance after an at-fault accident, with an average monthly rate of $116 per month, $1,140 less than average per year.
Company | Average monthly rate | Average annual rate |
|---|---|---|
State Farm | $116 | $1,398 |
USAA* | $129 | $1,549 |
Erie | $138 | $1,651 |
Auto-Owners | $145 | $1,738 |
Travelers | $159 | $1,907 |
Cheapest car insurance companies for drivers who have been in an at-fault accident.
Cheapest car insurance after a DUI: State Farm
State Farm is the cheapest car insurance company for drivers with a DUI, DWI, or OWI. State Farm costs drivers with a DUI an average of $132 per month or $1,588 a year. That’s $1,372 cheaper than the national average.
Company | Average monthly rate | Average annual rate |
|---|---|---|
State Farm | $132 | $1,588 |
Erie | $173 | $2,082 |
USAA* | $176 | $2,110 |
Travelers | $177 | $2,122 |
American Family | $179 | $2,149 |
Cheapest car insurance companies for drivers with a DUI.
Cheapest car insurance after a speeding ticket: State Farm
State Farm is the cheapest car insurance company for drivers with a speeding ticket on their records. On average, State Farm is $110 per month or $1,321 a year, for drivers with a speeding ticket. That’s $865 cheaper than average.
Company | Average monthly rate | Average annual rate |
|---|---|---|
State Farm | $110 | $1,321 |
USAA* | $112 | $1,338 |
Erie | $118 | $1,412 |
Auto-Owners | $148 | $1,775 |
Farm Bureau | $161 | $1,934 |
Cheapest car insurance companies for drivers with a speeding ticket.
Cheapest car insurance for drivers with bad credit: MAPFRE
MAPFRE has the cheapest car insurance for drivers who have poor or bad credit. On average, car insurance from MAPFRE costs drivers with poor credit $125 a month — $1,613 less than average per year.
Keep in mind that some states, including California, Hawaii, Massachusetts, and Michigan don't allow car insurance companies to consider your credit score.
Company | Average monthly rate | Average annual rate |
|---|---|---|
MAPFRE | $125 | $1,504 |
GEICO | $157 | $1,885 |
USAA* | $170 | $2,042 |
NJM | $176 | $2,117 |
Nationwide | $181 | $2,166 |
Cheapest car insurance companies for drivers with poor or bad credit.
Cheapest reliable car insurance: Erie
Erie is the best all-around company for reliable customer service and claims satisfaction. It’s also one of the cheapest. On average, third-party car insurance from Erie costs $31 per month or $370 a year.
Company | Policygenius rating | Average monthly cost |
|---|---|---|
USAA* | 5.0 | $31 |
Erie | 4.9 | $31 |
State Farm | 4.8 | $40 |
Auto-Owners Insurance | 4.7 | $27 |
MAPFRE | 4.6 | $28 |
Cheapest car insurance among the companies with the best Policygenius scores.
Cheapest non-standard car insurance: National General
We found that National General (backed by Allstate) has the cheapest insurance for non-standard drivers. National General costs non-standard drivers $240 per month. That’s higher than a normal policy, but it’s cheaper than other companies that offer non-standard coverage.
Company | Average monthly rate | Average annual rate |
|---|---|---|
National General | $273 | $3,272 |
Foremost | $300 | $3,604 |
Alliance United | $364 | $4,373 |
SafeAuto | $385 | $4,621 |
UAIC | $456 | $5,477 |
Cheapest car insurance from companies that specialize in non-standard coverage.
Full list of the best cheap auto insurance companies
We reviewed well-known companies and compared average price, customer service, and coverage offerings to find the best ones for cheap coverage. Check out our list of the best cheap car insurance companies:
Company | Overall rating | Average annual rate | Complaints received |
|---|---|---|---|
3.7/5 ★ | $2,134 | Below average (0.64) | |
4.5/5 ★ | $1,526 | Below average (0.17) | |
4.2/5 ★ | $2,055 | Below average (0.73) | |
4.3/5 ★ | $1,479 | Below average (0.16) | |
4.5/5 ★ | $689 | Below average (0.51) | |
4.7/5 ★ | $1,574 | Below average (0.66) | |
4.7/5 ★ | $1,165 | Below average (0.66) | |
4.7/5 ★ | $1,416 | Below average (0.14) | |
4.7/5 ★ | N/A | Below average (0.97) | |
4.9/5 ★ | $1,181 | Above average (1.27) | |
4.4/5 ★ | $2,084 | Below average (0.81) | |
Farm Bureau | 4.2/5 ★ | $1,547 | Below average (0.08) |
4.7/5 ★ | $1,192 | Above average (1.07) | |
4.0/5 ★ | $1,341 | Below average (0.00) | |
4.1/5 ★ | $1,923 | Above average (1.18) | |
4.6/5 ★ | $1,040 | Below average (0.22) | |
3.3/5 ★ | $2,577 | Below average (0.71) | |
3.5/5 ★ | $1,898 | Above average (5.57) | |
4.3/5 ★ | $1,475 | Below average (0.39) | |
4.7/5 ★ | $1,262 | Below average (0.06) | |
4.4/5 ★ | $1,780 | Below average (0.65) | |
3.1/5 ★ | $916 | Above average (1.79) | |
4.2/5 ★ | $1,405 | Below average (0.76) | |
3.9/5 ★ | $1,987 | Above average (1.18) | |
4.8/5 ★ | $1,141 | Below average (0.67) | |
4.7/5 ★ | $1,351 | Below average (0.37) | |
5.0/5 ★ | $1,044 | Above average (1.02) | |
3.8/5 ★ | $959 | Above average (1.04) |
Rates are for a minimum-coverage policy for a driver with no recent accidents or violations
Learn more about how to find cheap car insurance
Our picks for the cheapest insurance providers are a starting place, but the cheapest company for one driver may turn out not to be your cheapest option as well.
That’s because rates vary by everything from your location to your age to your driving history. Before you start shopping for coverage, take a look at some of the cheapest companies for drivers in your area or with your profile.
Then, compare quotes from at least a few companies. We estimate that drivers who don’t compare before buying what they think is the cheapest insurance can overpay by hundreds of dollars each month.
Use these links to learn more about the cheapest car insurance in your location and for your age, plus other tips for smart shopping.
Cheapest car insurance companies by state
Car insurance costs vary by location, and the cheapest company in one state may not be the most affordable option in another.
We found that USAA has the cheapest third-party car insurance in 20 states, the most of any one company, and State Farm has the cheapest car insurance in 10 states.
State | Cheapest company | Second-cheapest company |
|---|---|---|
USAA | Travelers | |
USAA | GEICO | |
Auto-Owners | GEICO | |
USAA | State Farm | |
Wawanesa | GEICO | |
American National | GEICO | |
GEICO | USAA | |
State Farm | Travelers | |
GEICO | USAA | |
State Farm | GEICO | |
Auto-Owners | USAA | |
GEICO | State Farm | |
American National | State Farm | |
Pekin | COUNTRY Financial | |
USAA | State Farm | |
State Farm | Pekin | |
USAA | GEICO | |
GEICO | USAA | |
USAA | State Farm | |
USAA | Auto-Owners | |
USAA | GEICO | |
USAA | GEICO | |
GEICO | USAA | |
State Farm | Farm Bureau | |
USAA | National General | |
USAA | State Farm | |
USAA | State Farm | |
Auto-Owners | Nationwide | |
GEICO | State Farm | |
USAA | State Farm | |
GEICO | NJM | |
USAA | State Farm | |
Kemper | Progressive | |
Erie | Utica | |
USAA | State Farm | |
USAA | State Farm | |
USAA | State Farm | |
State Farm | COUNTRY Financial | |
State Farm | Travelers | |
State Farm | USAA | |
American National | USAA | |
State Farm | Kemper | |
USAA | State Farm | |
Farm Bureau | State Farm | |
GEICO | USAA | |
State Farm | USAA | |
State Farm | USAA | |
PEMCO | USAA | |
USAA | State Farm | |
USAA | GEICO | |
American National | USAA |
Cheapest car insurance companies by city
Car insurance is usually more expensive for drivers in big cities. Crowded streets mean more accidents, and more accidents mean higher average rates than those for drivers living in less densely populated parts of the country.
Here are the cheapest car insurance companies in the 25 biggest cities in the U.S., ranked by population: [1]
City | Cheapest company | Average monthly rate |
|---|---|---|
Kemper | $122 | |
Wawanesa | $218 | |
COUNTRY Financial | $0 | |
Farm Bureau | $87 | |
GEICO | $114 | |
State Farm | $146 | |
Farm Bureau | $94 | |
Wawanesa | $76 | |
State Farm | $108 | |
Wawanesa | $78 | |
State Farm | $93 | |
GEICO | $112 | |
Farm Bureau | $94 | |
USAA | $63 | |
USAA | $64 | |
Erie | $71 | |
Wawanesa | $89 | |
PEMCO | $96 | |
American National | $84 | |
USAA | $87 | |
USAA | $68 | |
Farm Bureau | $72 | |
GEICO | $85 | |
GEICO | $92 | |
GEICO | $119 |
Cheap auto insurance by age
There are fewer cheap car insurance providers for drivers under 25, but that doesn’t mean young adults can’t find affordable coverage.
The cheapest car insurance company for most age groups is State Farm or GEICO. (USAA is often more affordable, but isn’t available to everyone.) Depending on where you live, a smaller company may be even cheaper.
For asterisked companies, the cheapest national insurance company is actually USAA.
Easy ways to get cheaper auto insurance
How to get cheaper car insurance with discounts
Nearly every company offers at least a couple of ways to reduce your car insurance rates with discounts. There are different types of car insurance discounts — some award savings for how you drive while others are for choices you make about your policy.
Safety and security discounts: You can get cheaper car insurance if you have a vehicle that has safety features or anti-theft tech, like crash avoidance alerts, lane departure warnings, and alarm systems.
Lifestyle discounts: Companies sometimes give discounts to drivers who own their own home, complete approved defensive driving courses, or are over a certain age (senior discounts usually apply to drivers over 55).
Good and distant student discounts: Young drivers can get more affordable auto insurance by getting good grades, taking certain driver education classes, or by attending school away from home without a car.
Affinity and employment discounts: You could get cheaper car insurance if you’re a part of a sorority, fraternity, or university. If not, you can still get discounts for having certain jobs, like nurses or teachers.
Policy discounts: Bundling policies, setting up automatic payments, switching to paperless billing, and staying loyal to the same company can usually save you money.
Usage-based or per-use discounts: These discounts are to your driving habits and how much you drive your car. If you’re comfortable with having your behavior monitored, both can be excellent ways to get cheaper rates.
Who gets the best price on car insurance?
Some groups have a harder time finding cheap car insurance. When insurance companies think you’re more likely to make a claim, it will get tougher to find cheap insurance rates.
Not many companies have affordable rates for new drivers — especially teenagers, because they’re more of a risk to insure. Car insurance costs can also be high if you’ve been in a crash or gotten a traffic ticket, have poor credit, or if you’ve made a past claim.
That said, your rates won’t go up by as much after a not-at-fault claim, like if you’re hit while parked.
On the other hand, it’s easier for drivers to find cheaper insurance when insurance companies don’t expect them to make future claims. People who drive less often or live in rural areas, have had their license for decades, or who have excellent credit can usually find more companies offering affordable auto insurance.
Should you get the cheapest car insurance?
It’s tempting to search for the absolute cheapest car insurance you can find, but it’s a bad idea for most drivers. That’s because most people need a full-coverage policy that includes comprehensive and collision coverage, not a cheap minimum coverage policy that only has the lowest amount of liability-coverage required by law.
Not having full-coverage means your policy doesn’t cover damage to your own car. So if you crash into a telephone pole or a tree branch falls on the hood of your car, you’ll have to foot the bill.
Recap of the cheapest car insurance companies
Cheapest from a large company: GEICO
Cheapest for full coverage: State Farm
Cheapest for families with teen drivers: Farm Bureau
Cheapest for senior drivers: State Farm
Cheapest for military families: USAA
Cheapest for good drivers: Progressive
Cheapest after an accident: State Farm
Cheapest after a DUI: State Farm
Cheapest after a speeding ticket: State Farm
Cheapest reliable car insurance: Erie
Cheapest for drivers with bad credit: MAPFRE
Cheapest for non-standard car insurance: National General
Frequently asked questions
What is the cheapest car insurance company?
Auto-Owners is the cheapest car insurance company, with an average rate of $27 per month. USAA and State Farm also have cheap car insurance, and they’re available in almost every state.
Is GEICO really the cheapest for everyone?
No, other companies than GEICO may have the cheapest rates for certain drivers. In fact, we found that GEICO’s average rates are more expensive than State Farm’s (and others).
Where can I get cheap car insurance?
You could find cheap car insurance with Auto-Owners if you live in one of the states where it offers coverage. You could also get cheap rates from USAA, State Farm, GEICO, and many more.
How can you get cheaper insurance?
The best way to get cheaper insurance is by comparing quotes from more than one company in your area and switching providers once your rates get too high. You can also get cheaper rates by making sure you have the right amount of coverage for your car, keeping a good driving record, bundling your coverage, and telling your insurance company if you think you qualify for any discounts.
How do you find the best cheap car insurance?
The cheapest rates might not be the best company for you. As you shop for insurance, compare rates to get the lowest price in your area and check each company’s claims satisfaction and complaint ratings. Make sure that any company you choose has the types of insurance that you need.
How much is the cheapest car insurance?
The cheapest car insurance company, Auto-Owners, costs $27 per month for a minimum-coverage policy. While it’s not the cheapest company for full-coverage, Auto-Owners is one of the more affordable companies for more protective policies.
