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Cheap Insurance Companies for Cars

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Cheap Insurance Companies for Cars: The Cheapest Car Insurance Is $28 Per Month. Companies Offering the Cheapest Car Insurance Rates Are USAA, Erie Insurance, State Farm, Geico, and Progressive

Cheap Insurance Companies for Cars

We at the Home Media reviews team have researched dozens of the best car insurance companies to find out which providers offer the cheapest car insurance rates. In this guide, we’ll cover our top picks.

Cheap Car Insurance

The cheapest car insurance is $28 per month for good drivers, based on our analysis of national average estimates. In the following sections, we highlight the cheapest car insurance companies, rates, and quotes. They are broken down by a variety of key factors that affect car insurance costs.

Cheapest Car Insurance Companies

USAA, Erie Insurance, State Farm, Geico and Progressive offer the cheapest car insurance. Below we highlight the cost rating scores and the monthly average rates of both minimum liability coverage and full coverage policies. You will also find what we consider each company’s ideal driver.

Cheap Car Insurance Company Cost Ratings Score Cheapest Minimum-Liability Insurance Cheapest Full-Coverage Insurance Cheapest Coverage for
1. USAA 9.8 $28 $97 Military families
2. Erie Insurance 9.7 $38 $111 Basic coverage
3. Geico 9.2 $39 $113 Most drivers
4. State Farm 9.2 $45 $125 Students
5. Progressive 8.7 $57 $148 High-risk drivers

Cheapest Car Insurance Rates

Below, we highlight national and state car insurance rates for minimal liability and full coverage auto insurance. The average national cost by company is based on our estimated analysis for a 35-year-old married driver with a good credit rating and a clean driving record.

Best Car Insurance Rates

The lowest car insurance rates are $28 per month ($333 per year) for a minimum-liability policy and $97 per month ($1,168 per year) for a full-coverage policy. Both of these options are offered by USAA and are only available to military members and their families.

The cheapest car insurance rates that are most widely available are $29 per month ($349 per year) for minimum liability coverage, which is offered by Auto-Owners Insurance. Erie Insurance offers the cheapest full coverage rates that are more widely available, starting at $111 per month ($1,337 per year).

Finally, the cheapest car insurance rates offered by the largest major national providers are $39 per month ($468 per year) for a Geico minimum liability policy. Nationwide offers the cheapest full-coverage car insurance from a major national provider, with rates starting at $108 per month ($1,297 per year).

Cheapest Liability Car Insurance

The cheapest minimum liability car insurance rates are offered by USAA, Auto-Owners, Erie, Geico, and State Farm. The table below provides a complete list of companies that offer the cheapest state minimum liability coverage:

Car Insurance Company Monthly Cost Estimate Annual Cost Estimate
USAA $28 $333
Auto-Owners $29 $349
Erie $38 $459
Geico $39 $468
State Farm $45 $543
Nationwide $51 $613
Progressive $57 $687

Cheapest Full-Coverage Car Insurance

The cheapest car insurance rates for a full coverage policy are offered by USAA, Erie and Nationwide. Those seeking cheap full coverage auto insurance should consider the following providers:

Car Insurance Company Average Monthly Cost Estimate Average Annual Cost Estimate
USAA $97 $1,168
Nationwide $108 $1,297
Erie Insurance $111 $1,337
Geico $113 $1,360
Auto-Owners Insurance $124 $1,490
State Farm $125 $1,497
Travelers $131 $1,574
Progressive $148 $1,773
Allstate $193 $2,312
Farmers $193 $2,317

Cheapest Car Insurance by State

Depending on the state you live in, the cheapest car insurance rates can be notably lower or higher than the national averages we’ve previously discussed. The cheapest provider in each state also varies considerably.

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In the sections below, we highlight the providers offering the cheapest car insurance rates in each state for minimum liability and full coverage auto insurance.

Cheapest Minimum Liability Insurance by State

The table below highlights the cheapest minimum liability insurance in all 50 states. Each row lists the cheapest company and annual cost estimates for the lowest rate in each state:

State Cheapest Car Insurance Company* Cheapest Minimum Liability Rate (Annual Estimate)
Alabama Geico $360
Alaska Allstate $291
Arizona Auto-Owners $359
Arkansas Southern Farm Bureau $307
California Geico $398

Cheapest Full Coverage Insurance by State

Below are the cheapest full coverage auto insurance rates in each state. Each row lists the cheapest company and annual cost estimates for the lowest rate in each state:

State Cheapest Car Insurance Company* Cheapest Full Coverage Rate (Annual Estimate)
Alabama Nationwide $1,108
Alaska Geico $1,084
Arizona Geico $1,071
Arkansas State Farm $1,223
California Progressive $1,460

Cheapest Car Insurance by Age

Age plays a key role in determining car insurance rates. In the sections below, we highlight cheapest car insurance rates for young drivers and seniors who fall outside that age range.

Cheapest Car Insurance for Younger Drivers

Below, we highlight the cheapest car insurance rates for young drivers, broken down by multiple age cohorts.

Cheapest Car Insurance for 16-Year-Olds

Sixteen-year-olds pay around $6,912 for individual full coverage policies on average. However, Erie, Auto-Owners and State Farm offer the cheapest full coverage car insurance for 16-year-olds:

Car Insurance Company Annual Rate Estimate Monthly Rate Estimate
Erie $3,410 $284
Auto-Owners $3,533 $294
State Farm $4,146 $346
Geico $4,466 $372
Nationwide $4,567 $381

Cheapest Car Insurance for 18-Year-Olds

Our estimates show that 18-year-olds pay about $4,958 per year for insurance on average. The cheapest car insurance rates for 18-year-olds are offered by Erie, USAA, Auto-Owners and Geico for a full coverage policy:

Car Insurance Company Annual Rate Estimate Monthly Rate Estimate
Erie $2,888 $241
USAA $2,897 $241
Auto-Owners $2,923 $244
Geico $3,161 $263
State Farm $3,340 $278

Cheapest Car Insurance for 21-Year-Olds

Full coverage car insurance rates for 21-year-olds decline to $2,786 per year on average. The cheapest car insurance rates for 21-year olds are offered by USAA, Geico and Auto Owners:

Car Insurance Company Annual Rate Estimate Monthly Rate Estimate
USAA $1,609 $134
Geico $1,844 $154
Auto-Owners $2,074 $173
Erie $2,103 $175
Nationwide $2,147 $179

Cheapest Car Insurance for 25-Year-Olds

Our estimates show that full coverage car insurance costs about $2,019 per year on average for 25-year olds, which is only slightly more than middle-aged drivers. However, USAA, Geico and Erie offer the cheapest auto insurance rates for 25-year-old drivers:

Car Insurance Company Annual Rate Estimate Monthly Rate Estimate
USAA $1,292 $108
Geico $1,420 $118
Erie Insurance $1,523 $127
Nationwide $1,556 $130
Auto-Owners $1,590 $132

Cheapest Car Insurance for seniors

Auto insurance rates rise slightly for drivers entering their senior years, because the risk of an accident also rises. Average national rates for 65-year-olds are around $1,648 per year, but USAA, Erie and Geico offer lower rates:

Car Insurance Company Annual Rate Estimate Monthly Rate Estimate
USAA $1,057 $88
Erie Insurance $1,219 $102
Geico $1,227 $102
Auto-Owners $1,247 $104
Nationwide $1,263 $105

Cheapest Car Insurance for High-risk Drivers

Not everyone has the ideal driving history and situation to get the cheapest rates. In the sections below, you can see some popular providers’ average full coverage car insurance rates for drivers with a recent accident, speeding ticket or DUI.

Cheapest Car Insurance after a DUI

Below are the cheapest monthly car insurance rates for drivers who have had one DUI compared to rates for those without a DUI:

Insurance Company Monthly Estimate for 1 DUI Monthly Estimate for No DUI
USAA $186 $97
Nationwide $239 $108
Geico $281 $113
State Farm $182 $125
Progressive $194 $148
Allstate $299 $193

Nationally, average car insurance rates increase by over 60% after one DUI. This number varies in different regions of the country and among providers.

Cheapest Insurance for Drivers with Accidents

USAA, State Farm and Geico offer the cheapest car insurance rates for drivers with a recent accident.

Car Insurance Company Monthly Rate Estimate Annual Rate Estimate
USAA $138 $1,647
State Farm $157 $1,882
Geico $197 $2,364
Progressive $235 $2,822
Nationwide $172 $2,063
Allstate $300 $3,598

Cheapest Insurance for Speeding Tickets

USAA, State Farm and Geico offer the cheapest car insurance rates for those who have recently had a speeding ticket:

Car Insurance Company Monthly Cost Estimate Annual Cost Estimate
USAA $118 $1,413
State Farm $150 $1,794
Geico $155 $1,856
Progressive $193 $2,311
American Family $172 $2,061
Nationwide $138 $1,656

Cheapest Car Insurance for Drivers with Bad Credit

Having a poor credit score can make it harder to get low-cost car insurance. Many providers use credit-based insurance scores to help calculate auto insurance rates for drivers that live in states where the practice is allowed.

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Here’s how rate estimates for some top providers change based on whether drivers have fair or bad credit:

Car Insurance Company Monthly Cost Estimate with Fair Credit Monthly Cost Estimate with Poor Credit* Rate Increase for Poor Credit
USAA $98 $151 0.54
Geico $132 $173 0.31
Progressive $144 $210 0.46
Nationwide $151 $186 0.23
State Farm $153 $301 0.97
Allstate $235 $314 0.34

*Insurers aren’t allowed to use credit scores to help determine auto insurance rates in California, Hawaii, Massachusetts and Michigan (these states were excluded from this part of our analysis).

Best Cheap Car Insurance

Below are thorough reviews of our top recommendations for the cheapest car insurance companies based on average rate estimates. The following providers stand out from the competition for their quality in coverage, discounts, customer service and strong industry reputations.

Affordable for High-risk Drivers

Low Rates for High-Risk Drivers

As the nation’s third-largest auto insurance company, Progressive covers millions of vehicles per year and can be one of the most affordable choices for coverage. Motorists without much experience or those with DWIs or DUIs on their records can generally find cheap car insurance with Progressive compared to competitors.

Progressive also provides many discount opportunities, including a teen driver discount, a multi-car discount that can save you up to 12% and a pay-in-full discount for paying your entire premium up front.

Here are a few more things we like about the auto insurance provider:

  • A+ financial strength ratingfrom AM Best
  • Over 74% customer satisfaction rate reported by its policyholders in our 2022 survey
  • Options for custom parts coverage, loan/lease payoff and usage-based insurance

How to Find the Cheapest Car Insurance

Just because you’re required to have auto insurance doesn’t mean you have to pay a lot to get it. There are ways you can improve your chances of finding cheap car insurance so you can protect your vehicle and your wallet at the same time.

Take Advantage of Discounts

The biggest way most policyholders save is by taking advantage of car insurance discounts offered by providers. If you’re shopping for insurance, search for the company that gives the best discounts for you. You can also ask your existing provider about available discounts.

Common discounts include:

  • Military: Applies whether you’re active military or a veteran
  • Senior: Usually for policyholders who are 55 and older
  • Homeowners: If you’re paying a mortgage, you could qualify for this discount
  • Good student: Typically for college and high school students under 25 who maintain a B average in their courses
  • Good driver: Applies to drivers with a clean driving record (no speeding tickets, DUIs or at-fault accidents in the last three years)
  • Safe car: If your vehicle has safety features like automatic braking or anti-theft technology, you may qualify for this
  • Multi-policy: Bundling two or more insurance policies, such as adding a homeowners or renters policy to your auto coverage
  • Multi-vehicle: Insuring multiple vehicles on the same policy or combining auto policies with your roommates or family members

Other Ways to Make To Get Cheaper Car Insurance

Outside of discounts, there are certain things you can do to help save on car insurance:

Try usage-based programs If you drive less than average, you’re less likely to get into an accident. Usage-based programs track your mileage and/or safe driving habits through an app, plug-in device or Bluetooth beacon.
Pay your premium annually or biannually Most providers offer annual, biannual or monthly payment options. Providers often give slight discounts for paying in full for the entire year or every six months.
Increase your deductible Because your rates are tied to your deductible amount, choosing a higher deductible is usually a good way to lower your premium. But raising your deductible means you’ll have more out-of-pocket costs if you have to file a claim, so make sure you can assume the financial risk.
Review your coverage regularly When it’s time to renew, review your policy to find areas where you can adjust your coverage to better fit your needs. You can also compare quotes to ensure you’re getting a good rate.

Car Insurance Rates

According to our cost estimate data, the average 35-year-old driver with good credit and a clean driving history pays about $1,816 per year or $151 per month on average for full coverage car insurance in 2022. For minimum liability coverage, the average rate is $635 per year or $53 per month.

Car Rates Insurance by State

Some states have cheaper car insurance than others. Below you can get a general idea of how states rank on average cost.

States with The Cheapest Car Insurance

Below are the five least expensive states for full coverage car insurance:

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State Annual Cost Estimate Difference from National Average
Maine $1,051 -42%
Vermont $1,094 -40%
Ohio $1,105 -39%
Idaho $1,169 -36%
Virginia $1,217 -33%

Car Insurance Rates by Age

As previously mentioned, your age has a significant impact on how much you will pay for car insurance. Teenagers and young adults pay the most for car insurance on average. As you get older, drive better and gain more road experience, rates tend to decrease.

Average rates begin to drop at around age 25, level off around age 35 and then increase again after age 65. Here’s how average full coverage rates change based on age:

Age Annual Cost Estimate Monthly Cost Estimate
16 $6,912 $576
17 $5,612 $468
18 $4,958 $413
19 $3,708 $309
21 $2,786 $232

Types of Car Insurance

Below are some of the main car insurance coverage options and coverage requirements:

Type of Car Insurance Coverage Requirements Recommended Coverage Level
Property damage liability Required in every state except New Hampshire and Virginia Recommended per accident limits close to your net worth
Bodily injury liability Required in every state except Florida, New Hampshire and Virginia Recommended per accident limits close to your net worth
Collision and comprehensive Likely required if you have auto financing or lease a vehicle Recommended if your vehicle is valued at $3,000 or more
Uninsured and underinsured motorist coverage Required in 22 states Recommended per accident limit close to your net worth if you don’t have collision and personal injury protection
Personal injury protection (PIP) or medical payments coverage Required in 14 states Recommended if you have high health deductibles, or co-pays — or if you don’t have health insurance at all

In our car insurance survey, 67% of the 1,000 respondents polled said they usually buy full coverage insurance, which includes liability, collision and comprehensive coverage. Nearly 37% said they would buy full coverage with low limits, while just over 30% reported they would purchase full coverage insurance with high limits.

Factors That Affect Car Insurance Rates

Auto insurance quotes are based on your driver profile, your desired coverage level and the discounts a company provides. While some things are set in stone, (such as not being able to erase an at-fault accident from your recent history) there are many factors that you can at least partially control.

Many of these factors have either been illustrated through car insurance rates or discussed in depth throughout this article. Those interested in a complete comprehensive list of the factors that affect your insurance rates can refer to the table below:

 

Factor How It Affects Your Car Insurance Premium
Age People generally have fewer accidents as they age and gain driving experience (up to a point). Teen drivers pay the most, followed by drivers under 25.
Driving experience Because providers view drivers without a recent driving history as more risky to cover, it’s usually more difficult for new drivers to get cheap car insurance. Drivers in this category include immigrants, visitors to the U.S. and those with new licenses or lapses in car insurance. Until you have a more established driving record, it may be cheaper for you to stay on a family member’s car insurance policy at first. After that, compare rates from companies when your policy is up for renewal.
Marital status Married drivers tend to have fewer accidents, so they pay less for car insurance.
Car make and model Cars that cost more to repair also cost more to insure. This applies to collision and comprehensive insurance, which cover your car. Safety equipment such as seatbelts and air bags can affect your rates as well.
Annual mileage People who commute long distances and put many miles on their cars pay higher insurance prices.

Finding Affordable Car Insurance

Even though these factors ultimately determine your rate, keep in mind that the best way to find the cheapest insurance available to you is to shop around and compare quotes from providers. We recommend getting at least three quotes so you have a good idea of the pricing and coverage available.

Cheapest Auto Insurance: Conclusion

In this article, we reviewed the cheapest car insurance rates, companies and quotes based on a variety of factors. Since prices depend on so many factors, cheap auto insurance looks different for each driver.

Cheap Car Insurance Companies

It’s always a good idea to compare car insurance companies. As a reminder, here are our top choices for cheap auto insurance:

  1. USAA
  2. Erie Insurance
  3. State Farm
  4. Geico
  5. Progressive

For most drivers, we recommend State Farm as the Editor’s choice based on its solid financial standings, affordability and strong customer service ratings. To find the cheapest car insurance for your desired level of coverage, get free car insurance quotes when you are shopping for a policy.

 

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