Cheap car insurance in May 2023

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Headshot of Andrew Hurst

By

Andrew HurstSenior Editor & Licensed Auto Insurance ExpertAndrew 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.

Edited by

Anna SwartzAnna SwartzSenior Managing Editor & Auto Insurance ExpertAnna Swartz is a senior 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.
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Reviewed by

Ian Bloom, CFP®, RLP®Ian Bloom, CFP®, RLP®Certified Financial PlannerIan 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

Expert reviewedExpert reviewedThis article has been reviewed by a member of ourFinancial Review Council to ensure all sources, statistics, and claims meet the highest standard for accurate and unbiased advice.Learn more about oureditorial review process.

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

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.

USAA and GEICO are the cheapest large car insurance companies, and available everywhere. But since USAA is only available to active and retired members of the military and their families, the average driver is more likely to find low car insurance rates with GEICO.

Company

Average monthly cost

Average annual cost

Difference from national average

Auto-Owners

$27

$327

-47%

MAPFRE

$28

$335

-46%

USAA

$31

$369

-40%

Erie

$31

$370

-40%

GEICO

$34

$402

-35%

State Farm

$40

$475

-23%

Farm Bureau

$40

$478

-23%

COUNTRY Financial

$44

$526

-15%

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Best cheap car insurance by driver

We analyzed cost data to find the cheapest companies for car insurance for every type of driver. While GEICO has the cheapest car insurance for most drivers, that doesn't mean it's necessarily the cheapest company for you.

The best way to find cheap liability car insurance (also called third-party insurance) is by shopping around and comparing quotes from more than one company.

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 for families with teen drivers: Farm Bureau ($27)

Farm Bureau

Farm Bureau Financial Services logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.7

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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

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). Teens getting their own car insurance pay an average of $288 per month with Farm Bureau, compared to the average of $469 a month.

Compare the cheapest rates for families with teen drivers

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 for military families: USAA ($141)

USAA

USAA logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starFull orange star

5.0

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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

USAA has the cheapest car insurance for military families and veterans. On average, a policy that includes coverage for a driver who’s 16 to 21 years old costs $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.

Compare the cheapest rates for military families

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 for good drivers: Progressive ($70)

Progressive

Progressive

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.3

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

All 50 states

Usage-based discount

Offers gap coverage

Offers motorcycle insurance

Coverage for rideshare drivers

Accident forgiveness

Bundle home & auto

Good student discount

Mobile app

Offers classic car insurance

Why we chose it

If you’re a good driver, you may be able to qualify for major savings through Progressive’s Snapshot program, which we found to be one of the best usage-based discounts around.

Pros and cons

Pros

  • Rewards safe drivers

  • Offers rideshare insurance and other less-common coverages

  • Variety of discounts and ways to save

Cons

  • Premiums are above industry average

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

Safe drivers who sign up for Snapshot (Progressive’s usage-based insurance program), pay an average of just $70 per month for car insurance. If you’re comfortable being tracked, and sharing data about your driving habits with Progressive through a mobile app, this discount may be worth it.

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 after an accident, speeding ticket, or DUI: State Farm ($120)

State Farm

State Farm logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.8

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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

State Farm is the cheapest car insurance company for drivers with an at-fault accident, speeding ticket, or DUI. On average, these drivers pay $120 per month for State Farm car insurance, or $1,436 per year — $1,496 less than average.

When your rates return to normal after a few years of safe driving, State Farm may still be the cheapest company for you. On average, State Farm costs $95 per month for full coverage with a clean record, $497 less than average.

Compare the cheapest rates after an accident, DUI, or speeding ticket

Company

Average monthly rate

Average annual rate

USAA

$111

$1,329

Erie

$112

$1,344

State Farm

$114

$1,370

MAPFRE

$122

$1,469

Auto-Owners Insurance

$145

$1,745

Cheapest for drivers with bad credit: MAPFRE ($125)

MAPFRE

MAPFRE Insurance logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.6

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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

At $125 a month, MAPFRE is the cheapest car insurance company for drivers who have poor or bad credit. That’s $1,504 per year, or $1,613 less than the average rate for car insurance with bad credit.

While MAPFRE is an affordable option for drivers with bad credit, some states (California, Hawaii, Massachusetts, and Michigan) don't allow car insurance companies to consider your credit score when setting rates.

Compare the cheapest rates for bad credit

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 reliable car insurance: Erie ($30)

Erie

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.9

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

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

Erie is the best all-around cheap company for reliable customer service. You want your car insurance to be there when you need it most, like after an an accident or claim, and Erie has top-rated claims satisfaction in addition to affordable rates.

On average, minimum-coverage car insurance (meaning third-party car insurance) from Erie costs $31 per month. That’s $370 per year, or $247 cheaper than the national average. Your rates could be even cheaper, especially if you qualify for any of Erie’s many auto insurance discounts.

Compare ratings for the cheapest companies

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 for non-standard car insurance: National General ($273)

National General

National General logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starHalf orange starEmpty gray star

3.5

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

All 50 states

Mobile app

Bundle home & auto

Offers motorcycle insurance

Why we chose it

High-risk drivers who need non-standard insurance can have a tough time finding affordable coverage, National General offers non-standard car insurance at lower-than-average rates.

Pros and cons

Pros

  • Offers emergency expense allowance of up to $500

  • Affordable option for high-risk drivers

  • Online customer service available

Cons

  • Higher-than-average rates

  • Few additional 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, 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

Non-standard car insurance isn’t as cheap or as common as standard coverage, but there are still some companies that are known for offering this type of coverage at an affordable price. We found that the cheapest insurance for non-standard drivers comes from National General, which is backed by Allstate.

On average, National General costs non-standard drivers $240 per month. That’s more expensive than a normal policy but 9% cheaper than the average cost of car insurance after a DUI and license suspension.

Compare the cheapest rates from non-standard companies

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

Full list of the best cheap auto insurance companies

We evaluated the average price, customer service, and coverage offerings from top car insurance companies 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

AAA

3.7/5 ★

$2,134

Below average (0.64)

Acuity

4.5/5 ★

$1,526

Below average (0.17)

Allstate

4.2/5 ★

$2,055

Below average (0.73)

American Family

4.3/5 ★

$1,479

Below average (0.16)

American National

4.5/5 ★

$689

Below average (0.51)

Amica

4.7/5 ★

$1,574

Below average (0.66)

Auto-Owners

4.7/5 ★

$1,165

Below average (0.66)

Country Financial

4.7/5 ★

$1,416

Below average (0.14)

Encompass

4.7/5 ★

N/A

Below average (0.97)

Erie

4.9/5 ★

$1,181

Above average (1.27)

Farmers

4.4/5 ★

$2,084

Below average (0.81)

Farm Bureau

4.2/5 ★

$1,547

Below average (0.08)

GEICO

4.7/5 ★

$1,192

Above average (1.07)

Germania

4.0/5 ★

$1,341

Below average (0.00)

Liberty Mutual

4.1/5 ★

$1,923

Above average (1.18)

MAPFRE Insurance

4.6/5 ★

$1,040

Below average (0.22)

Mercury

3.3/5 ★

$2,577

Below average (0.71)

National General

3.5/5 ★

$1,898

Above average (5.57)

Nationwide

4.3/5 ★

$1,475

Below average (0.39)

NJM

4.7/5 ★

$1,262

Below average (0.06)

Progressive

4.4/5 ★

$1,780

Below average (0.65)

Root

3.1/5 ★

$916

Above average (1.79)

Safeco

4.2/5 ★

$1,405

Below average (0.76)

State Auto

3.9/5 ★

$1,987

Above average (1.18)

State Farm

4.8/5 ★

$1,141

Below average (0.67)

Travelers

4.7/5 ★

$1,351

Below average (0.37)

USAA

5.0/5 ★

$1,044

Above average (1.02)

Wawanesa

3.8/5 ★

$959

Above average (1.04)

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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 are a starting place, but there’s no guarantee that the cheapest car insurance company for one driver will also be your cheapest option. 

That’s because rates vary by everything from your location to your age to your driving history. Before you start looking 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 is the cheapest option in 20 states, the most of any one company, and State Farm has the cheapest car insurance in 10 states.

A map of the United States that shows the cheapest companies in every state

State

Cheapest company

Second-cheapest company

Alabama

USAA

Travelers

Alaska

USAA

GEICO

Arizona

Auto-Owners

GEICO

Arkansas

USAA

State Farm

California

Wawanesa

GEICO

Colorado

American National

GEICO

Connecticut

GEICO

USAA

Delaware

State Farm

Travelers

District of Columbia

GEICO

USAA

Florida

State Farm

GEICO

Georgia

Auto-Owners

USAA

Hawaii

GEICO

State Farm

Idaho

American National

State Farm

Illinois

Pekin

COUNTRY Financial

Indiana

USAA

State Farm

Iowa

State Farm

Pekin

Kansas

USAA

GEICO

Kentucky

GEICO

USAA

Louisiana

USAA

State Farm

Maine

USAA

Auto-Owners

Maryland

USAA

GEICO

Massachusetts

USAA

GEICO

Michigan

GEICO

USAA

Minnesota

State Farm

Farm Bureau

Mississippi

USAA

National General

Missouri

USAA

State Farm

Montana

USAA

State Farm

Nebraska

Auto-Owners

Nationwide

Nevada

GEICO

State Farm

New Hampshire

USAA

State Farm

New Jersey

GEICO

NJM

New Mexico

USAA

State Farm

New York

Kemper

Progressive

North Carolina

Erie

Utica

North Dakota

USAA

State Farm

Ohio

USAA

State Farm

Oklahoma

USAA

State Farm

Oregon

State Farm

COUNTRY Financial

Pennsylvania

State Farm

Travelers

Rhode Island

State Farm

USAA

South Carolina

American National

USAA

South Dakota

State Farm

Kemper

Tennessee

USAA

State Farm

Texas

Farm Bureau

State Farm

Utah

GEICO

USAA

Vermont

State Farm

USAA

Virginia

State Farm

USAA

Washington

PEMCO

USAA

West Virginia

USAA

State Farm

Wisconsin

USAA

GEICO

Wyoming

American National

USAA

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Compare rates and shop affordable car insurance today

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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

New York, NY

Kemper

$122

Los Angeles, CA

Wawanesa

$218

Chicago, IL

COUNTRY Financial

$0

Houston, TX

Farm Bureau

$87

Phoenix, AZ

GEICO

$114

Philadelphia, PA

State Farm

$146

San Antonio, TX

Farm Bureau

$94

San Diego, CA

Wawanesa

$76

Dallas, TX

State Farm

$108

San Jose, CA

Wawanesa

$78

Austin, TX

State Farm

$93

Jacksonville, FL

GEICO

$112

Fort Worth, TX

Farm Bureau

$94

Columbus, OH

USAA

$63

Indianapolis, IN

USAA

$64

Charlotte, NC

Erie

$71

San Francisco, CA

Wawanesa

$89

Seattle, WA

PEMCO

$96

Denver, CO

American National

$84

Oklahoma City, OK

USAA

$87

Nashville, TN

USAA

$68

El Paso, TX

Farm Bureau

$72

Washington, DC

GEICO

$85

Boston, MA

GEICO

$92

Las Vegas, NV

GEICO

$119

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Cheap auto insurance by age

There are fewer cheap car insurance companies for drivers under 25, but that doesn’t mean young adults can’t find affordable coverage. 

The cheapest car insurance for most age groups is State Farm or GEICO. (USAA is often more affordable, but isn’t available to the general public.) Depending on where you live, a smaller company may be even cheaper.

Age of driver

Cheapest large company

Cheapest smaller company 

16

State Farm

Erie

17

State Farm

Erie

18

State Farm*

Erie

19

State Farm

Erie

20

State Farm

Erie

21

GEICO

Erie

25

GEICO

Erie

30

GEICO

MAPFRE

35

State Farm*

MAPFRE

45

State Farm*

MAPFRE

55

GEICO

MAPFRE

60

State Farm*

MAPFRE

65

State Farm*

MAPFRE

70

State Farm*

MAPFRE

Collapse table

For asterisked companies, the cheapest national insurance company is actually USAA.

Easy ways to get cheaper auto insurance

If you live in an area with higher-than-average rates, have an accident or driving violation on your record, are newly licensed — or if you’re just having a hard time finding affordable coverage — there are still ways you can get cheap car insurance.

  1. Shop around for car insurance The single best way to get the cheapest auto insurance is to get quotes from more than one company. That way you can be sure you’re choosing your cheapest option.

  2. Don’t be afraid to switch companies Get new quotes whenever your policy’s up for renewal. You can even shop for coverage and switch while your policy is in effect if you think your rates are too high.

  3. Make sure you get the right amount of coverage Most people should have full coverage, but you may not need it or other expensive add-ons if one of your cars is an old clunker that’s not worth much.

  4. Keep a good driving record As long as you’re a safe driver with a clean record, you’ll get cheaper rates because you’re viewed as less likely to make claims.

  5. Bundle coverage whenever you can Companies usually offer discounts to drivers who bundle their auto insurance with another policy, like homeowners or renters insurance.

  6. Pay for your car insurance all at once If you can afford it, you can get cheaper car insurance by paying your entire annual premium at once instead of monthly.

  7. Tell your insurance company when your life changes You can get more discounts after you buy a policy if you experience a big change during your policy, like if you get married or buy a home.

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How to get cheaper car insurance with common 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.

How to find even more discounts

Companies automatically apply some discounts. But talking to an independent agent can actually help you get cheaper rates, since they’ll be able to help you estimate your rates and let you know if you qualify for discounts that aren’t listed online.

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.

A bar graph showing which demographics have the cheapest insurance coverage.

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.

Is shopping for car insurance all about price?

"Shopping for insurance is not all about price, but price is useful as a significant, concrete factor that’s also easy to understand. Claims handling and scope of coverage are also both important." - Peter KochenbergerExecutive Director of the Insurance LLM Program and Deputy Director of the Insurance Law Center at UConn

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Recap of the cheapest car insurance companies

  • Cheapest overall: Auto-Owners

  • Cheapest large company: GEICO

  • Cheapest for families with teen drivers: Farm Bureau

  • Cheapest for military families: USAA

  • Cheapest for good drivers: Progressive

  • Cheapest after an accident, speeding ticket, or DUI: 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.

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References

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Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of oureditorial standards.

  1. Census Bureau

    . "

    Population and Housing Unit Estimates

    ." Accessed June 22, 2022.

Author

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.

Editor

Anna Swartz is a senior 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 reviewer

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.

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