We at the Simple-invest 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 highlight the cheapest car insurance companies, rates and quotes and cover our top picks overall in detail.
Key Takeaways:
- Of major national insurers, Geico is typically the cheapest car insurance provider.
- Nationwide provides the cheapest average rates for drivers with a DUI.
- State Farm generally offers the cheapest car insurance for drivers with an accident or speeding ticket.
- Geico has the cheapest car insurance on average for drivers with poor credit.
- The best way to find the cheapest car insurance is to get a quote from at least three providers.
The Simple-invest Team is committed to providing reliable information to help you make the best decision possible about insuring your vehicle. Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. After 800 hours of research, the end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
What Is the Cheapest Car Insurance?
Of the major national car insurance companies, Geico offers the cheapest average rates ($39 per month and $468 per year) for minimum-liability coverage. In most states, minimum car insurance coverage is the cheapest option available as it only pays for others’ medical bills and property damage in accidents you cause. It is important to note that the cheapest car insurance available varies from driver to driver.
What’s the Cheapest Place To Get Car Insurance?
Because insurance premiums are based on personalized criteria like your location, driving history and credit score, the best place to get car insurance isn’t the same for everyone. Here are the companies that provide the cheapest minimum-liability auto insurance options on average for several driver profiles:
- Cheapest overall: Geico is the cheapest major provider at $39 per month and the Grange, a regional provider based in Seattle, is the cheapest local provider at $27 per month
- Cheapest for military members and their families: USAA at $28 per month
- Cheapest car insurance for teens: Erie Insurance (available in 12 states) at $284 per month for 16-year-old drivers
- Cheapest car insurance for seniors: Erie Insurance at $102 per month
- Cheapest car insurance for high-risk drivers: Nationwide at $239 per month for drivers with a DUI, State Farm at $157 per month for drivers with an accident and $150 per month for drivers with a speeding ticket
- Cheapest car insurance for drivers with poor credit: Geico at $173 per month
The price information above includes average rate estimates for a 35-year-old driver with a good credit history and clean driving record, unless otherwise stated.
Cheapest Car Insurance Companies
When it comes to major national providers, American Family Insurance, State Farm, Geico and Nationwide consistently offer some of the cheapest car insurance. The criteria we use to determine the cheapest car insurance companies takes rate estimates for minimum-liability and full-coverage policies from Quadrant Information Services and the number of discounts offered by each provider into account.
Top 7 Cheapest Car Insurance Companies
The table below highlights overall cost ratings, average rates for minimum-liability and full-coverage policies, and the number of discounts offered by the cheapest nationwide car insurance companies:
| Cheap Major Car Insurance Company | Overall Cost Rating | Cheapest Minimum Liability Car Insurance Rates (Monthly Average) | Cheapest Full Coverage Car Insurance Rates (Monthly Average) | Number of Available Car Insurance Discounts |
|---|---|---|---|---|
| 1. American Family | 9.3 | $57 | $128 | 18 |
| 2. State Farm | 9.2 | $45 | $123 | 12 |
| 3. Geico | 9.2 | $39 | $109 | 16 |
| 4. Liberty Mutual | 9.2 | N/A | N/A | 13 |
| 5. Nationwide | 9.0 | $51 | $107 | 10 |
| 6. Travelers | 8.8 | $61 | $139 | 16 |
| 7. Progressive | 8.7 | $57 | $134 | 13 |
| USAA | 9.8 | $28 | $88 | 13 |
While USAA received our highest cost score, its services are limited to military members, veterans and their families.
The rate estimates above are for a 35-year-old driver with a clean driving record and good credit history. Our cost rating takes this data into account plus other factors like discount types and amounts.
Cheap Local Car Insurance Companies
The cheapest local car insurance companies are the Grange, Erie Insurance, Country Financial, Auto-Owners Insurance and Elephant Insurance. You can learn more about each provider’s costs and discount opportunities below.
| Cheap Local Car Insurance Company | Overall Cost Rating | Cheapest Minimum Liability Car Insurance Rates (Monthly Average) | Cheapest Full Coverage Car Insurance Rates (Monthly Average) | Number of Available Car Insurance Discounts |
|---|---|---|---|---|
| 1. The Grange | 9.7 | $27 | $62 | 10 |
| 2. Erie Insurance | 9.7 | $38 | $103 | 6 |
| 3. Country Financial | 9.4 | $39 | $108 | 11 |
| 4. Auto-Owners Insurance | 9.0 | $29 | $111 | 12 |
| 5. Elephant | 8.9 | N/A | N/A | 14 |
Cheapest Car Insurance Rates
Below, we highlight national and state car insurance rates for minimum-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.
Cheapest Car Insurance Coverage
While minimum-liability coverage is the cheapest level of coverage available in most states, most car insurance quotes include estimates for full-coverage policies for those who want a higher level of protection. Below, we highlight the cheapest nationwide car insurance rates for both coverage types:
Cheapest Liability Car Insurance
The cheapest minimum-liability car insurance rates are offered by Auto-Owners, Erie, Geico, State Farm and Nationwide. The table below provides a complete list of companies that offer the cheapest state minimum coverage:
| Car Insurance Company | Monthly Cost Estimate | Annual Cost Estimate |
|---|---|---|
| Auto-Owners | $29 | $349 |
| Erie | $38 | $459 |
| Geico | $39 | $468 |
| State Farm | $45 | $543 |
| Nationwide | $51 | $613 |
| American Family | $57 | $685 |
| Progressive | $57 | $687 |
| USAA | $28 | $333 |
USAA car insurance is limited to military members, veterans and their families.
Cheapest Full-Coverage Car Insurance
Nationwide offers the cheapest full-coverage car insurance from a major national provider, with average rates of $107 per month ($1,281 per year). The cheapest car insurance rates for a full-coverage policy are offered by Erie and Nationwide:
| Car Insurance Company | Monthly Cost Estimate | Annual Cost Estimate |
|---|---|---|
| Erie | $103 | $1,238 |
| Nationwide | $107 | $1,281 |
| Geico | $109 | $1,308 |
| Auto-Owners | $111 | $1,337 |
| State Farm | $123 | $1,481 |
| American Family | $128 | $1,537 |
| Progressive | $140 | $1,611 |
Cheapest Car Insurance Quotes
While the cost information above can help you find the best rates available, you won’t know for sure what your rate could be until you compare car insurance quotes. In addition to location and coverage level, auto insurance companies take even more personalized factors into account when determining what you should pay for a policy.
In the sections below, we break down the cheapest car insurance quotes for drivers that fall into several categories that are important when determining car insurance rates, including age, driving history and credit score.
Cheapest Car Insurance by Age
Age plays a key role in determining car insurance rates. Drivers of a certain age, usually teens and seniors are considered higher risk than most drivers, and their rates may be higher. In the sections below, we highlight the cheapest car insurance rates for young drivers and seniors.
Cheap First-Time Car Insurance
Below, we highlight the cheapest car insurance rates for young drivers, broken down by age.
Cheapest Car Insurance for 16-Year-Olds
Sixteen-year-olds pay around $6,912 for individual full-coverage policies on average. Erie, Auto-Owners and State Farm offer the cheapest full-coverage car insurance for 16-year-olds:
| Car Insurance Company | Monthly Rate Estimate | Annual Rate Estimate |
|---|---|---|
| Erie | $284 | $3,410 |
| Auto-Owners | $294 | $3,533 |
| State Farm | $346 | $4,146 |
| Geico | $372 | $4,466 |
| Nationwide | $381 | $4,567 |
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 full-coverage car insurance rates for 18-year-olds are offered by Erie, Auto-Owners and Geico:
| Car Insurance Company | Monthly Rate Estimate | Annual Rate Estimate |
|---|---|---|
| Erie | $241 | $2,888 |
| Auto-Owners | $244 | $2,923 |
| Geico | $263 | $3,161 |
| State Farm | $278 | $3,340 |
| American Family | $303 | $3,641 |
| USAA | $241 | $2,897 |
USAA car insurance is limited to military members, veterans and their families.
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 Geico, Auto-Owners and Erie:
| Car Insurance Company | Monthly Rate Estimate | Annual Rate Estimate |
|---|---|---|
| Geico | $154 | $1,844 |
| Auto-Owners | $173 | $2,074 |
| Erie | $175 | $2,103 |
| Nationwide | $179 | $2,147 |
| State Farm | $194 | $2,322 |
| USAA | $134 | $1,609 |
USAA car insurance is limited to military members, veterans and their families.
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, Geico and Erie offer the cheapest auto insurance rates for 25-year-old drivers:
| Car Insurance Company | Monthly Rate Estimate | Annual Rate Estimate |
|---|---|---|
| Geico | $118 | $1,420 |
| Erie | $127 | $1,523 |
| Nationwide | $130 | $1,556 |
| Auto-Owners | $132 | $1,590 |
| State Farm | $141 | $1,686 |
USAA car insurance is limited to military members, veterans and their families.
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 Erie, Geico and Auto-Owners tend to offer lower rates:
| Car Insurance Company | Monthly Rate Estimate | Annual Rate Estimate |
|---|---|---|
| Erie | $102 | $1,219 |
| Geico | $102 | $1,227 |
| Auto-Owners | $104 | $1,247 |
| Nationwide | $105 | $1,263 |
| State Farm | $113 | $1,353 |
| USAA | $88 | $1,057 |
USAA car insurance is limited to military members, veterans and their families.
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:
| Car Insurance Company | Monthly Rate Estimate With One DUI | Monthly Rate Estimate With No DUI |
|---|---|---|
| State Farm | $182 | $123 |
| Progressive | $194 | $140 |
| Nationwide | $239 | $107 |
| Geico | $281 | $109 |
| Allstate | $299 | $174 |
| USAA | $186 | $88 |
USAA car insurance is limited to military members, veterans and their families.
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
State Farm, Nationwide and Geico typically offer the cheapest car insurance rates for drivers with a recent accident.
| Car Insurance Company | Monthly Rate Estimate | Annual Rate Estimate |
|---|---|---|
| State Farm | $157 | $1,882 |
| Nationwide | $172 | $2,063 |
| Geico | $197 | $2,364 |
| Progressive | $235 | $2,822 |
| Allstate | $300 | $3,598 |
| USAA | $138 | $1,647 |
USAA car insurance is limited to military members, veterans and their families.
Cheapest Insurance for Speeding Tickets
Nationwide, State Farm and Geico offer the cheapest car insurance rates for those with a speeding ticket on their driving records:
| Car Insurance Company | Monthly Rate Estimate | Annual Rate Estimate |
|---|---|---|
| Nationwide | $138 | $1,656 |
| State Farm | $150 | $1,794 |
| Geico | $155 | $1,856 |
| American Family | $172 | $2,061 |
| Progressive | $193 | $2,311 |
| USAA | $118 | $1,413 |
USAA car insurance is limited to military members, veterans and their families.
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.
Here’s how rate estimates for some top providers change based on whether drivers have fair or bad credit:
| Car Insurance Company | Monthly Rate Estimate With Fair Credit | Monthly Rate Estimate With Poor Credit | Rate Increase for Poor Credit |
|---|---|---|---|
| Geico | $132 | $173 | +31% |
| Progressive | $144 | $210 | +46% |
| Nationwide | $151 | $186 | +23% |
| State Farm | $153 | $301 | +97% |
| Allstate | $235 | $314 | +34% |
| USAA | $98 | $151 | +54% |
USAA car insurance is limited to military members, veterans and their families.
Best Cheap Car Insurance Companies
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.
#1 USAA: Affordable for Military Families
While USAA is available in all 50 states and Washington, D.C., only veterans, active-duty military members, reservists and their immediate families are eligible. However, it’s one of the most affordable car insurance options for those who qualify.
Even though USAA’s availability is limited, it ranks as the fifth-largest auto insurance provider in the United States, according to the National Association of Insurance Commissioners (NAIC). USAA offers these car insurance discounts and more:
- Military installation
- Safe driving
- Good student
- Low mileage
- Multi-vehicle coverage
Along with having affordable policies, USAA is one of the most reputable providers in the industry and earns some of the highest customer satisfaction ratings. Here are a few other things we like about USAA:
- A++ financial strength rating from AM Best, indicating the insurer has a superior ability to pay customer claims
- Second-highest score in the J.D. Power 2022 U.S. Insurance Shopping StudySM
- Highest score in overall customer satisfaction across every region of the U.S. except California, where it still has the second-highest score — according to the J.D. Power 2022 U.S. Auto Insurance StudySM
- Highest percentage of very satisfied customers in our 2022 car insurance survey
- Options for accident forgiveness, guaranteed asset protection (gap coverage), car replacement assistance (CRA) and telematics insurance
USAA has the highest customer satisfaction score across most regions, but due to specific criteria, J.D. Power does not rank it with other insurance providers.
#2 Erie Insurance: Affordable for Basic Coverage
Our analysis shows that Erie Insurance is one of the cheapest insurance providers for many types of drivers. The company also has a respectable offering of coverage levels and a strong reputation for customer service.
The Erie Rate Lock program allows eligible customers to avoid the premium increases that occur over the course of a few years. In this program, there are only three reasons why policyholders could see their rates increase: adding or removing a vehicle, adding or removing someone from the policy or changing addresses. Drivers who take part in the Rate Lock program won’t see rates go up if they file a claim or get a ticket.
In addition to the Rate Lock program, Erie provides many of the same policy discounts that larger national providers offer, including discounts for:
- Having a vehicle equipped with anti-theft features or anti-lock brakes
- Driving safely as a senior or young driver
- Bundling insurance policies (25%)
- Being a new driver (20%)
Erie Insurance is best for drivers with good driving records and good credit scores. If you fit this description, auto insurance from Erie can generally be very affordable.
Here are a few more reasons we recommend Erie:
- A+ financial strength rating from AM Best
- A+ rating from the BBB
- First place in overall customer satisfaction for the North Central and Mid-Atlantic U.S. regions and third place for the Southeast region — according to the J.D. Power Auto Insurance Study
- Second place in overall customer satisfaction for midsize insurers, according to the J.D. Power Insurance Shopping study
- Options for accident forgiveness, non-standard vehicle coverage and pet injury coverage
Erie Insurance is available in Washington, D.C., and 12 states:
| Illinois | Indiana | Kentucky | Maryland |
| New York | North Carolina | Ohio | Pennsylvania |
| Tennessee | Virginia | West Virginia | Wisconsin |
#3 Geico: Affordable for Most Drivers
Because USAA has eligibility requirements and Erie Insurance is regional, most drivers should consider Geico when looking for the cheapest car insurance. Geico is one of the best providers we’ve reviewed. It has excellent ratings from policyholders who are happy with Geico’s customer service and are highly likely to recommend the provider to others seeking car insurance.
Geico is the second-largest car insurance provider in the U.S. and the second-most popular provider in our 2022 car insurance survey, behind State Farm. The insurer can be a great option for both full-coverage policies or just the minimum coverage required by your state.
Drivers in all 50 states may be able to get cheap car insurance from Geico, though drivers with accidents on their records may find better prices from other companies. Geico’s notable discounts include 25% savings for insuring multiple vehicles and a 15% student discount.
Here are a few more things we like about Geico:
- A++ financial strength rating from AM Best
- A+ rating from the BBB
- Third place in overall customer satisfaction for the Central, Northwest and New York regions of the U.S. (J.D. Power Auto Insurance Study)
- In the same study, it’s above the industry’s average in California, Florida and the New England, North Central and Southwest regions
- 79% customer satisfaction rate among its policyholders in our 2022 car insurance survey
- Options for mechanical breakdown insurance and usage-based insurance
- Highly rated mobile app
#4 State Farm: Editor’s Choice
State Farm can be another great choice when you’re looking for the cheapest car insurance. Since its founding in 1922, State Farm has grown to become the largest insurance provider in the U.S. According to the NAIC, the company wrote more than $41.6 billion in premiums in 2021.
At that scale, State Farm can offer an array of coverage levels to satisfy most drivers. The company also has a robust national network of local agents, so there’s likely an agent in your area who can assist you with comparing rates.
We rated State Farm 8.9 out of 10.0 in the coverage category for its variety of options. The company offers rideshare coverage, roadside assistance, accident forgiveness and more. State Farm also has a number of discounts, including:
- Multi-car
- Multi-policy
- Anti-theft
- Accident-free
We found State Farm to be one of the most affordable options for students in particular. The company offers the largest student discount in the industry (up to 25%). Young drivers can take advantage of State Farm’s Steer Clear program to improve their driving skills and get further discounts. Policyholders can also enroll in programs like Drive Safe & Save™, which allows drivers to turn good driving habits into lower rates.
Here are a few more State Farm highlights:
- A++ financial strength rating from AM Best
- First place in overall customer satisfaction for large insurers (J.D. Power Insurance Shopping Study)
- Used by more than 13% of respondents in our 2022 car insurance survey — the most of any provider
- About 90% satisfaction rate for coverage among customers in our survey
- Offers rideshare insurance, usage-based insurance, classic car insurance and more
#5 Progressive: 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 rating from 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.
| 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. |
| Get a quote after improving your driving record | Shop around for new quotes between three and five years after a ticket or accident. Previous infractions may no longer be on your driving record. |
| Capitalize on major life changes | You may find different rates if you get married, send a student off to college, buy a home or have another major life change. |
| Improve your driver profile | Because good drivers are less likely to file claims, insurance companies reward safe drivers with clean records by offering them lower rates. You can improve your driver profile by taking a driver safety course. |
| Improve your credit score | Since most states allow credit-based insurance scoring, you can lower your rates over time if you improve your credit score. |
| Drive a vehicle that costs less to insure | Some models are more expensive to insure than others, so when shopping for a car, take into account how much it will cost to insure vehicles you’re interested in. |
| Shop around for quotes | One basic technique to find the cheapest car insurance is to compare coverage and rates from companies. |
| Consider local providers | Local agents and smaller providers can sometimes offer lower rates, as large insurers may not always be your cheapest options. |
| Opt for less coverage | While there is more risk in choosing less coverage, buying a minimum-coverage policy could save you a substantial amount on car insurance.
Comprehensive and collision coverage only pay up to your vehicle’s current value, minus the deductible. You may not need these forms of coverage if you drive an older car that’s worth a few thousand dollars or less. Review your financial situation to see if it makes sense to risk higher out-of-pocket costs to reduce your rates. A good rule of thumb is to get liability limits similar to your net worth. You should still have enough coverage to meet your state’s legal requirements. |
Best Car Insurance Deals
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.
Below is a further breakdown of the most common discounts:
- 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)
- Defensive driving: Take a defensive driving course to qualify for this discount
- Driver training: Get a discount by taking a driver training course
- New car: Given to drivers who have purchased a new vehicle, typically three model years or newer
- 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
- Paperless: Get a discount by opting to receive your documents via email
- Pay-in-full: Save on your premium by paying your policy in full up front
- Sign online: Earn a discount by signing documents online
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 $1,730 per year or $144 per month on average for full-coverage car insurance in 2023. 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:
| State | Annual Rate 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% |
States With the Most Expensive Car Insurance
Here are the top five most expensive states for full-coverage car insurance:
| State | Annual Rate Estimate | Difference From National Average |
|---|---|---|
| Michigan | $4,133 | +128% |
| Florida | $3,060 | +69% |
| Louisiana | $2,994 | +65% |
| New York | $2,910 | +60% |
| Delaware | $2,330 | +28% |
Average state prices can only tell you so much. Even within a state, auto insurance rates can vary considerably. The provider that’s typically the cheapest car insurance company in a state might not be the cheapest in every ZIP code.
In some states, the smaller, local companies offer the cheapest car insurance. In others, national providers offer the best rates. One company that may be expensive in Nevada may offer some of the lowest rates available in Pennsylvania, and vice versa.
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 | Monthly Rate Estimate | Annual Rate Estimate |
|---|---|---|
| 16 | $576 | $6,912 |
| 17 | $468 | $5,612 |
| 18 | $413 | $4,958 |
| 19 | $309 | $3,708 |
| 21 | $232 | $2,786 |
| 25 | $168 | $2,019 |
| 30 | $153 | $1,831 |
| 40 | $146 | $1,755 |
| 50 | $138 | $1,658 |
| 65 | $137 | $1,648 |
| 75 | $159 | $1,912 |
Coverage Level and Car Insurance Rates
Your car insurance rates largely depend on the level of coverage you want. Your state requires a certain level of bodily injury and property damage liability car insurance (unless you live in New Hampshire or Virgina). States can also require underinsured/uninsured motorist coverage and medical coverage.
No state requires you to carry collision insurance or comprehensive insurance, so you’ll have to decide if you want the extra protection these options offer. If you finance your vehicle, your lender will likely require you to carry full coverage until your auto loan is paid off.
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 |
| Gap insurance | Optional unless required by the terms of your loan or lease agreement (often required if your vehicle is less than three years old) | Enough to cover the difference between the loan and the car’s depreciating value by the third year |
In our 2023 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 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. |
| Driving record | Because insurers heavily rely on your driving record to determine pricing, a clean driving record can help you secure cheaper rates and reward you with good driver discounts. For this reason, drivers with a clean record usually pay much less than high-risk drivers. Infractions like a DUI or having multiple at-fault accidents can make it more difficult to find cheap car insurance (or even purchase a policy at times). Minor traffic violations like speeding tickets also increase rates, but to a lesser degree. |
| Credit history | Having poor credit can increase rates almost as much (and sometimes more than) being convicted of a DUI. Most states allow car insurance companies to consider your credit history when determining prices. In these states, poor credit will make your rates go up, and good credit will make them decrease. While a credit-based score includes the same factors as a regular credit score, including payment history and debt, the two scores weigh these factors differently. |
| ZIP code | Urban areas have higher rates of theft, accidents and vandalism, so drivers in cities pay the highest rates. Parking in a garage can sometimes reduce your rate. |
| State requirements | States vary widely in how much coverage is required, so you’ll generally pay more in states that require drivers to carry more types of insurance or higher coverage limits. |
| Desired coverage | Car insurance prices rise as you add more types of coverage or choose higher coverage limits. Drivers only looking for their state’s minimum coverage (like basic liability coverage) will generally have the cheapest car insurance rates. |
| Deductible | A high deductible will reduce your premium and vice versa. |
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.
Comparing Insurance Quotes
An insurance quote shows how much you’d pay for the level of coverage you selected over a certain time period, which is usually six months. You’ll always have a range of prices available to you. Even if you’re offered the same coverage levels from two insurers, one option could be much cheaper depending on how each company’s rates are calculated.
It’s easy to compare insurance quotes using online insurance calculators. Quotes are free, which means you can compare as many as you’d like.
Getting an auto insurance quote online isn’t difficult. If you have all your information handy, it can take just a few minutes. All you need to get a car insurance quote is information about:
- The drivers on your policy
- The limits you want
- Your ZIP code
- Your credit history
Insurance quotes are estimates that can change if the insurance company discovers you provided incomplete information. Because auto insurance quotes are only estimates, the company may request additional information from you.
Companies also have between 30 and 90 days to make changes to insurance policies should they discover new information after you get an initial quote.
Cheapest Auto Insurance: The Bottom Line
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:
- USAA
- Erie Insurance
- Geico
- State Farm
- 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.
Cheap Auto Insurance: FAQ
Below are commonly asked questions about the cheapest car insurance companies, coverage policies, rates and quotes:
Who usually has the lowest car insurance?
Based on our cost estimates, USAA usually has the lowest car insurance at $28 per month or $333 per year for liability insurance coverage or $87 per month or $1,054 per year for a full-coverage car insurance policy.
Which car insurance company has the lowest prices?
Based on our cost estimate analysis, USAA ($87/month), Erie Insurance ($111/month), Geico ($113/month), State Farm ($125/month) and Progressive ($148/month) offer some of the cheapest auto insurance on average. The cheapest provider for you depends on your driving history and discount opportunities that apply to your situation.
What is the cheapest plan for car insurance?
State minimum car insurance coverage is generally the cheapest plan for car insurance. However, it only covers other people, their passengers, and their property in an accident. This means that if you’re injured in an accident that you cause, your medical bills and vehicle damage aren’t covered. If you want more protection on the road, consider purchasing a full-coverage plan, which includes comprehensive, collision and liability car insurance.
Will my credit score be affected just by getting car insurance quotes?
You don’t have to be concerned about your credit score when getting cheap car insurance quotes. Car insurance companies check your credit with a soft inquiry, which doesn’t affect your score. This is different from a hard inquiry that a bank or lender would do if you were applying for a loan.
What factors go into lowering the cost of car insurance?
Since so many factors affect your premium, there are a variety of ways to lower the cost of car insurance. Compare quotes and discounts from at least three different companies and research what the right amount of coverage is for your needs. You can try usage-based insurance options if you’re a good driver who doesn’t put many miles on your vehicle.
What is the best type of coverage?
We recommend having full-coverage car insurance with limits of $100,000 per person and $300,000 per accident. Full coverage includes comprehensive coverage and collision coverage, which cover repairs to your car if you cause an accident or crash into an object. If you don’t drive very often, having a pay-per-mile plan may be your cheapest option. Talk to an agent or review plans online to ensure you’re getting what’s best for you.
What types of damage does car insurance cover?
Minimum liability car insurance policies cover medical bills and property damage for other people in accidents you cause. Full-coverage car insurance includes collision coverage, which repairs damage to your car when you cause accidents. Comprehensive insurance covers damages from theft, vandalism, fire, severe weather or other environmental things not related to car accidents.
How soon after buying a car do I need auto insurance?
You need car insurance to drive a car off the lot after purchase. Reputable dealers won’t allow you to leave until you provide proof of insurance. You can get insurance in an hour or less. Make sure you know what you need to have to be driving legally. Ask an insurance agent or search online to get the information you need.
Does my car insurance stay with me if I'm driving a different car?
Insurance usually follows the car, so the insurance of the car you’re driving would be used in the event of an accident. If the insurance on your car has better coverage than the car you’re borrowing, then it would cover any gaps in coverage. Compare coverage before borrowing a friend’s or loved one’s car.
What are the benefits and risks of having cheap car insurance?
With cheap car insurance (such as a liability-only policy) you can still use whatever standard services the company offers, such as mobile ID cards and digital apps. But, you’ll be taking on more risk if you don’t have collision or comprehensive insurance to pay for damage to your car when you cause an accident. Some companies also require you to have full coverage to qualify for special programs like accident forgiveness or roadside assistance.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.