- Learn how to get the cheapest car insurance.
- See which companies have the cheapest car insurance along with great coverage.
- Find the pros and cons of five providers we recommend for affordable car insurance.
Affiliate disclosure: Automoblog and its partners may be compensated when you purchase the products below.
“If it sounds too good to be true, it probably is” doesn’t always apply when it comes to the cheapest car insurance. Some of the best auto insurance providers in the nation offer high-quality coverage and service at some of the most affordable rates.
To help you find the cheapest car insurance and excellent coverage options, we went to work researching some of the top car insurance companies. Read on to see what we discovered.
The 5 Cheapest Car Insurance Companies
After thoroughly examining companies’ rates, insurance policies, and customer reviews, we found five providers that strike the best balance between strong car insurance coverage and modest prices. Get to know these insurance companies so you can decide which one might be best for you. By reaching out to companies for free, no-obligation insurance quotes, you’ll gain a more accurate sense of your best options before choosing a provider.
| Company | Our rating | Has usage-based insurance? | Average cost estimate |
|---|---|---|---|
| GEICO | 96% | Yes | $1,356 |
| Erie Insurance | 86% | Yes | $1,183 |
| USAA | 96% | Yes | $990 |
| Progressive | 95% | Yes | $1,397 |
| State Farm | 95% | Yes | $1,312 |
Best Overall: GEICO
Although our research showed that USAA and Erie have some of the lowest premiums among reputable car insurance companies, their limited availability makes them inaccessible for many drivers. When it comes to quality cheap car insurance for everyone, GEICO is our top choice.
As the second-largest car insurance company in the nation, GEICO provides excellent rates at all coverage levels, as well as additional coverage options such as mechanical breakdown insurance. Whether you’re looking for minimum coverage or just the cheapest full coverage, GEICO is worthy of a look.
The company’s rates aren’t the best if you have one or more accidents on your driving record, but discounts can help offset this. Among the discounts available through GEICO is a deal worth up to 15% for being active duty or retired military or being a member of the National Guard or Reserves. If you have a multi-vehicle policy through GEICO or an anti-theft system on your car, you are eligible for a discount worth 25% of your premium.
For additional information on GEICO, check out this in-depth GEICO auto insurance review.
GEICO Pros & Cons
| GEICO Pros | GEICO Cons |
|---|---|
| Available in all 50 states | Premiums can be pricey for high-risk drivers |
| Large discounts available | Some reports of slow claims processing |
| Numerous coverage options | Some competitors have easier quote process |
Best for Basic Coverage: Erie Insurance
We found that Erie customers pay an average of $1,183 annually for auto insurance. While that doesn’t make it the cheapest car insurance provider, it is a little below average. Erie Insurance also has a strong reputation for customer service and is a respected provider within the insurance industry.
The company ranked in the top two in the J.D. Power 2021 U.S. Auto Insurance StudySM in the Midatlantic, North Central, and Southeast regions – an indication of Erie’s solid reputation in the areas it serves.
While many drivers regard Erie as an excellent provider, not everyone will get the best rates. Erie Insurance appears to be geared more toward drivers with good credit and good driving records. Drivers with poor credit or less-than-perfect driving records may find better rates elsewhere.
However, the company does offer special discounts for safe driving, car safety equipment, bundling with other types of coverage, and paying your premium annually instead of monthly.
Erie Insurance offers affordable car insurance coverage for drivers in these states:
- District of Columbia
- Illinois
- Indiana
- Kentucky
- Maryland
- New York
- North Carolina
- Ohio
- Pennsylvania
- Tennessee
- Virginia
- West Virginia
- Wisconsin
Erie Insurance Pros & Cons
| Erie Insurance Pros | Erie Insurance Cons |
|---|---|
| Large selection of coverage options | Only available in 12 states and D.C. |
| A+ rating from the Better Business Bureau (BBB) and A+ financial strength rating from AM Best |
Some customers report difficulties during the claims process |
| Savings available through discounts | Poor reviews from customers on the BBB website |
Best for Military Families: USAA
USAA serves only military members, veterans, and their families, meaning not everyone is eligible for its coverage. But for those who are, the company is worth considering. Based on our research, USAA charges an average annual premium of $990 to cover a 35-year-old male driver, making it one of the cheapest car insurance companies we found.
USAA offers a wide range of discounts, including one discount of up to 60% for storing your vehicle. Other discounts are available to drivers who:
- Get good grades
- Own reasonably new vehicles
- maintain clean driving records
- Rack up relatively few miles each year
- Bundle their USAA home and auto insurance policies
If you have questions about USAA car insurance, read our comprehensive review of the provider.
USAA Pros & Cons
| USAA Pros | USAA Cons |
|---|---|
| Available nationwide | Only available to military members, veterans, and their families |
| A++ financial strength rating from AM Best | No physical locations |
| Affordable car insurance rates and discounts | Some coverage is limited by state |
Best for High-Risk Drivers: Progressive
Some of the best car insurance companies offer reduced rates to drivers with good driving records but not drivers with accidents and violations on their records. But Progressive – the nation’s third-largest car insurance company – offers reasonable rates to both groups of drivers.
If you’ve committed severe violations, such as DWI or DUI, you can still find relatively decent rates from Progressive, especially compared to some competitors. Progressive also offers usage-based insurance, which charges you based on how many miles you drive. If you work from home or don’t drive much, choosing Progressive can yield significant savings.
Progressive also offers plenty of discounts to make coverage even more affordable. Teen drivers, for example, are eligible for discounted coverage, and you can also save around 12% by insuring multiple cars with Progressive. Other discounts are available for setting up auto payments, being a homeowner, or getting a car insurance quote online.
Learn more about Progressive auto insurance in our review.
Progressive Pros & Cons
| Progressive Pros | Progressive Cons |
|---|---|
| Options for custom parts coverage | Mediocre reputation for customer satisfaction |
| Numerous plan add-ons available | Not BBB accredited |
| Reasonable rates for high-risk drivers | Unexpected rate increases |
Best for Student Drivers: State Farm
Students and teen drivers will likely want to look at State Farm if they are trying to find the cheapest car insurance. While the company offers solid rates across the board, its safe driving and good student discounts make it an attractive option if you’re a young driver, especially if you’re in school.
We found that the typical 35-year-old driver pays an average of $1,312 per year for State Farm insurance, but the company’s Drive Safe & Save™ discount program can help you get those rates even lower. And if you’re a student, you can earn a discount worth up to 25% of your premium for excelling academically.
State Farm is the biggest car insurance company in the country, and it holds a strong reputation within the industry. It carries an A+ rating from the BBB, and AM Best awarded it an A++, the agency’s highest possible rating for financial stability.
Discover more about State Farm auto insurance in our provider review.
State Farm Pros & Cons
| State Farm Pros | State Farm Cons |
|---|---|
| Biggest U.S. car insurance company | Unavailable to new customers in Massachusetts and Rhode Island |
| Many discounts available | Some customers report issues with online claims process |
| Simple online quote process | Although relatively cheap, pricier than some competitors |
How Car Insurance Companies Determine Your Rates
When you start shopping for car insurance, your rates may differ from the ones we found. That’s because auto insurance companies personalize their rates based on information about you and your vehicle.
Here are some of the factors that can affect your car insurance premiums:
- Car: The age, type, and price of your vehicle can influence the cost of your premium.
- Age: Teen drivers and senior citizens usually pay the most for car insurance. Rates for middle-aged drivers tend to be lower.
- Credit score: Your credit history plays a role in the cost of your insurance. The higher your score, the lower your premiums.
- Coverage: Comprehensive coverage, collision coverage, higher coverage limits, lower deductibles, and policy add-ons will all raise the cost of your premiums.
- Driving history: If you have recent accidents or violations on your driving record, you’ll have to pay more for car insurance. With a clean driving record, you will have access to cheaper car insurance.
- Location: Average car insurance premiums vary from state to state, but auto insurance rates can also vary depending on your ZIP code. If you live in a rural area, you will likely pay less than you would in a city.
How To Find the Cheapest Car Insurance Rates
When shopping for cheap auto insurance, you probably can’t quickly relocate, and you certainly can’t do anything about your age or past driving record. But there are some steps you can take to save money on your car insurance policy. They include:
- Trying usage-based insurance: Usage-based insurance charges you by the mile rather than a flat premium. So if you don’t drive your car much, you may save a lot of money.
- Improve your credit score: Raising your credit score helps you save money on your car insurance and can help you secure better interest rates on loans and credit cards. Try to pay off as much debt as possible and always make on-time payments.
- Shopping around: Insurance providers all calculate their rates a little differently, meaning you’ll get different quotes from different insurers. The company that offers your neighbor their cheapest auto insurance rates may not provide you with the lowest prices. Always request free quotes from multiple providers before making a decision.
- Enrolling in a safe driver course: An at-fault accident can send your insurance premium skyrocketing, but some companies offer a good driver discount if you pass a defensive driving course in your state. Some states also remove points from your license for completing these classes, automatically netting you better rates from any insurance company.
- Finding car insurance discounts: Nearly every insurance provider we researched offers policy discounts of some sort. Most companies will give you a better rate for paying for your policy up front rather than in monthly installments. Other companies offer discounts for military members and students. If a company offers different insurance products, it is also likely to provide a discount for bundling those policies with your auto insurance.
How Much Does Car Insurance Cost in Each State?
As mentioned, car insurance rates vary from state to state. Before you decide on a car insurance provider, it’s best to know the average rate in your state (or the District of Columbia), so you can compare that to your quote.
| State/District | Average Annual Cost Estimate |
|---|---|
| Alabama | $1,448 |
| Alaska | $1,287 |
| Arizona | $1,625 |
| Arkansas | $1,449 |
| California | $2,339 |
| Colorado | $1,672 |
| Connecticut | $1,885 |
| Delaware | $1,921 |
| District of Columbia | $1,787 |
| Florida | $2,894 |
| Georgia | $1,548 |
| Hawaii | $1,238 |
| Idaho | $1,089 |
| Illinois | $1,474 |
| Indiana | $1,087 |
| Iowa | $1,095 |
| Kansas | $1,364 |
| Kentucky | $1,817 |
| Louisiana | $3,828 |
| Maine | $995 |
| Maryland | $1,941 |
| Massachusetts | $2,568 |
| Michigan | $4,390 |
| Minnesota | $1,487 |
| Mississippi | $1,357 |
| Missouri | $1,741 |
| Montana | $2,214 |
| Nebraska | $1,372 |
| Nevada | $2,332 |
| New Hampshire | $1,181 |
| New Jersey | $2,108 |
| New Mexico | $1,356 |
| New York | $3,964 |
| North Carolina | $1,277 |
| North Dakota | $1,310 |
| Ohio | $923 |
| Oklahoma | $1,630 |
| Oregon | $1,284 |
| Pennsylvania | $1,405 |
| Rhode Island | $1,923 |
| South Carolina | $1,592 |
| South Dakota | $1,331 |
| Tennessee | $1,217 |
| Texas | $2,067 |
| Utah | $1,446 |
| Vermont | $1,013 |
| Virginia | $1,079 |
| Washington | $1,271 |
| West Virginia | $1,390 |
| Wisconsin | $946 |
| Wyoming | $1,499 |
Recap: The Cheapest Car Insurance Providers With Good Coverage
Because companies rarely offer drivers identical rates, it’s impossible to rank providers based on cost alone. We believe each provider in this article could offer you the cheapest car insurance premiums, depending on your coverage needs. That’s why we rated these companies based on which drivers might benefit most from their policies.
Here’s a recap of our list:
- Best Overall: GEICO
- Best for Basic Coverage: Erie Insurance
- Best for Military Families: USAA
- Best for High-Risk Drivers: Progressive
- Best for Student Drivers: State Farm
As always, it’s in your best interest to check with multiple providers before making a decision. The best car insurance provider is the one that most closely meets your needs. Most companies make it easy to get free insurance estimates, which enables you to compare car insurance quotes from several places and find the cheapest rates available.
FAQ: Cheapest Car Insurance
Who has the cheapest car insurance?
On average, State Farm offers the cheapest car insurance coverage that’s available to everyone, according to our research. USAA has lower average rates, but it is only available to military members, veterans, and their families.
Why is my car insurance rate so high?
Factors that affect the cost of your insurance include your age, driving history, credit score, and location.
What is the cheapest type of car insurance?
The cheapest car insurance will almost always be your state’s minimum required coverage, which is often bodily injury liability insurance.
Our Methodology
Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best car insurance providers.
- Affordability: Various factors influence cost, so comparing auto insurance quotes between providers can be difficult. Our team considers auto insurance rate estimates generated by Quadrant Information Services and discount opportunities when giving this score.
- Coverage: Because each consumer has unique needs, a car insurance company must offer an array of coverage options. We take into account types of insurance available, maximum coverage limits, and add-on policies.
- Industry Standing: Our team considers Better Business Bureau (BBB) ratings, financial strength, and years in business when giving this score.
- Availability: Auto insurers with greater state availability and few eligibility requirements are more likely to meet consumer needs.
- Customer Service: Reputable car insurance providers operate with a certain degree of care for consumers. We consider complaints filed with the National Association of Insurance Commissioners (NAIC), J.D. Power claims servicing scores, and customer feedback.
- Online Experience: Insurers with easy-to-use websites and highly rated mobile apps scored best in this category.
Original article: The 5 Cheapest Car Insurance Companies (With Quality Coverage)
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