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Our analysis found that the cheapest car insurance company in the U.S. was American National, with an average annual premium of $689.
Updated October 7, 2021|2 min read
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Car insurance rates can vary from driver-to-driver based on things like age, driving record or location — but they can also vary widely by company. Our analysis found that the cheapest car insurance in the U.S. was from American National, with an average annual premium of $689 a year.
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But the cheapest company overall isn’t the cheapest company for every driver — to find the best rates for you, you should look for the cheapest company in your state, and still make sure you compare quotes from other companies before you settle on a policy.
According to our analysis, American National had the cheapest rates for a full coverage policy
The cheapest car insurance company in California was Wawanesa, with an average annual premium of $1,110
GEICO offered the cheapest rates in multiple states, including Alabama, Connecticut, Florida, Michigan, and New Jersey
The cheapest car insurance companies in the U.S. aren’t always the cheapest companies for every driver — but they can be a good starting point. These companies offered the cheapest average rates for a full coverage policy.
|Company||Average annual premium|
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|District of Columbia||GEICO||$1,025|
|New York||Main Street America||$1,033|
|Rhode Island||State Farm||$983|
|South Carolina||American National||$683|
|Texas||Texas Farm Bureau||$1,036|
A DUI is a serious violation that can have a big impact on your car insurance rates. Drivers with a recent DUI should shop around before they choose a policy, because some companies are more willing to insure drivers with a DUI than others.
|Company||Average premium after a DUI|
Drivers with low credit scores pay more for car insurance, and drivers with higher credit scores see lower rates. But some companies will still offer affordable rates to drivers whose credit falls in the “Poor” range.
|Company||Average rate for "Poor" credit|
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.
Shop around. Policygenius can help you compare quotes from multiple insurers and make it easy to choose the best coverage at the best rates
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.
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.
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
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.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.