List of the Cheapest Car Insurance Companies

List of cheapest car insurance companies

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Welcome to Careerngr.com. In this post, you will see the List of the cheapest car insurance companies.

Did you know the exact same driver could be charged $39 per month by one car insurance company and $255 per month by another? Our analysis — based on millions of car insurance quotes from 37 companies across the country — confirms the best way to save on car insurance is to shop around and get multiple quotes.

Cheapest company overall

Cheapest company overall

Cheapest with prior incidents

Cheapest with prior incidents

Cheapest with poor credit

Cheapest with poor credit

Cheapest for military

Cheapest for military

This is Why you Should Trust our Top Pics

To rank the best cheap companies according to our methodology, ValuePenguin’s editorial team spent hundreds of hours collecting quotes from 37 insurance companies across thousands of ZIP codes in every state. Our insurance experts analyzed each company’s cost, availability, and customer support to help you find a company near you that offers both affordable coverage and great service.

Top 10 Cheapest Car Insurance Companies

State Farm and USAA are the most affordable major insurance companies in the country. State Farm offers an average rate of $532 per year for a minimum-liability policy, 26% below the national average. USAA costs an average of $432 per year, although only active military members, veterans or their families can qualify.

Among insurers that have a smaller national footprint, Farm Bureau Insurance, at $472 per year, and Auto-Owners, at $484 per year, rank as the cheapest. Erie’s in a close third place at $503 per year.

Smaller insurance companies sometimes offer lower rates because they compete with much bigger companies. Some also deliver more local knowledge or a personal touch because they’re based in your state or community.

What is the cheapest car insurance company for you?

To find the cheapest car insurance for you, start by getting quotes from the auto insurance companies with the cheapest rates. Depending on a variety of factors — location, driving history, credit score, and more — some insurers may be cheaper for certain drivers than others.

If you’re looking for the cheapest companies that also offer the best balance of affordability, strong customer service, and coverage options, compare the best auto insurance companies.

The cheapest car insurance companies

  • State Farm: Cheapest overall
  • Erie: Cheapest with tickets
  • Geico: Cheapest discounts
  • Auto-Owners: Cheap for families
  • Metromile: Cheap for safe drivers
  • Farm Bureau: Cheap for poor credit
  • USAA: Cheapest for military families

Cheapest car insurance company overall: State Farm

State Farm

State Farm is the largest auto insurance company in the country, with the cheapest widely available rates in 29 states. Additionally, the company boasts an enormous network of local agents, meaning there’s likely a State Farm agent in your city who can help you compare rates.

State Farm is the best and cheapest car insurance company for most drivers, considering that USAA has eligibility restrictions, and Farm Bureau and Auto-Owners are disproportionately expensive when you add more coverage.


Cheapest for full coverage

Cheapest for minimum liability

RankCompanyMonthly rate
1USAA$98
2State Farm$109
3Erie$115
4Farm Bureau$131
5Auto-Owners$132

A full-coverage policy includes both collision and comprehensive insurance, protecting you against damage to your car, not just the legal liability of hurting or injuring other drivers.

State Farm also scores high marks for policy options. It offers pet coverage, rideshare insurance and roadside assistance. Customers also have plenty of options to bundle and even further lower their rates.

Drivers with State Farm can enroll in programs such as Drive Safe & Save to turn good driving habits into lower rates. They can also qualify for a range of discounts, including an accident-free discount, multicar discount and anti-theft discount.

Cheapest car insurance rates after discounts: Geico

Geico

Geico has some of the cheapest car insurance in the country, second only to State Farm among the biggest companies.

Depending on where you live, Geico may have cheaper rates for you than State Farm. Geico’s the cheapest company in seven states, including California and Florida.

Geico stands out when it comes to potential savings through discounts. Though Geico’s car insurance rates are slightly more expensive than State Farm on average, you may pay less overall if you qualify for Geico’s many car insurance discounts.

Geico has one of the longest lists of discounts available, and how much you can save with each discount is higher with Geico than most companies.

For example, Geico offers safe drivers a discount of up to 22%, compared to the average of 10%. Having anti-theft devices installed in your car typically saves you up to 15%, but Geico promises savings up to 23%.

CompanyNumber of car insurance discounts
Farmers21
Geico20
Allstate20
Travelers16
American Family16

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Cheapest auto insurance company for a bad driving record: Erie

Erie

Erie has some of the cheapest car insurance rates for drivers with a ticket or accident on their driving record. And you probably won’t find a better rate if you have a DUI (driving under the influence) on your driving record. Erie also increases rates the least after a driving incident.

Erie will only raise your rates by an average of 7% if you get a ticket, while most insurers increase premiums by 22% or more. For an at-fault accident, Erie will only raise your rates by 25% instead of the average 44%. And Erie’s average quote with a DUI is $2,257 per year, an increase of 64%. Expect other companies to double your rates after a DUI.

Cheapest car insurance companies after a driving incident

CompanyClean recordTicketAccidentDUI
State Farm$1,313$1,463$1,633$3,590
Erie$1,379$1,469$1,721$2,257
Auto-Owners$1,579$1,680$1,983$3,202
Farm Bureau$1,576$1,774$2,110$2,813
American Family$1,755$2,055$2,706$2,832

Show All Rows

Rates are for a 12-month full-coverage policy, which includes comprehensive and collision insurance, plus state-mandated liability insurance.

Erie also has a strong customer service reputation and a good set of insurance options.

Erie customers who are eligible for its Rate Lock program can avoid premium hikes that could cause rates to creep up over the years. This is a unique program where customers won’t see their rates increase except for three reasons: you move to a different area or change where you park your car, add or remove someone from your policy, or add or remove a car.

That means your rates won’t go up even if you happen to get a ticket or file a claim.

Erie also offers the same car insurance discounts that larger national insurers provide, including bundling multiple insurance policies, having a vehicle equipped with anti-lock brakes or anti-theft equipment or driving safely as a young or senior driver.

The biggest downside to Erie is that it’s only available in 12 states plus DC:

  • District of Columbia
  • Illinois
  • Indiana
  • Kentucky
  • Maryland
  • New York
  • North Carolina
  • Ohio
  • Pennsylvania
  • Tennessee
  • Virginia
  • West Virginia
  • Wisconsin

Cheapest car insurance for teens and parents: Auto-Owners

Auto-Owners

The cheapest way to get car insurance for a teen driver is usually to stay on a parent’s policy. Auto-Owners has some of the cheapest rates for drivers under age 21 on their parent’s plan.

The biggest downsides are that Auto-Owners is only available in 26 states and that you’ll need to contact an agent to get a quote.

CompanyParent and teenTeen only
Auto-Owners$152$345
USAA$173$237
Erie$174$256
Farm Bureau$190$350
State Farm$218$293

Monthly quotes for a full-coverage policy for an 18-year-old driver versus a 50-year-old parent with a teen driver

Auto-Owners also consistently scores well on customer service ratings. You can contact support or make a claim through your dedicated agent, the mobile app, or your online account. That’s especially important for young drivers away at college who might not be able to get home to talk to their local agent in person.

Cheapest car insurance for safe and low-mileage drivers: Metromile

Metromile

If you drive less than average or are generally a safe driver, a usage-based or pay-per-mile auto insurance company such as Metromile may be the cheapest insurance for you.

Metromile was one of the first companies in the U.S. to determine premiums largely based on mileage. How much driving is too much when shopping with Metromile? Generally, for Metromile to be a good deal, drivers should drive fewer than 10,000 miles per year.

Usage-based insurance is often cheaper than standard car insurance because your rates are largely based on how often and how well you drive. It’s a good option for people who are generally safe drivers but can’t find cheap rates elsewhere because they’re young, have poor credit, live in a congested city or have other risk factors that raise their insurance rates.

That means Metromile is a cheap company for people who are retired or work from home, students who live on campus and young drivers with a clean driving record.

The biggest downside to Metromile is that it’s only available in eight states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. If you don’t live in one of those states, consider other telematics programs that offer discounts for less driving or safer driving, like Nationwide, Liberty Mutual or State Farm.

Cheapest car insurance for drivers with poor credit: Farm Bureau

Farm Bureau

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Overall, Farm Bureau is the cheapest auto insurance company for drivers with poor credit, averaging $1,278 per year.

Farm Bureau’s average rate is $32 per year cheaper than the next closest widely available competitor, Geico. The company’s rates are 12% cheaper than average.

CompanyPoor creditVery good creditRate hike
Farm Bureau$1,278$69983%
Geico$1,310$76671%
Nationwide$1,349$88652%
American Family$1,354$74183%
Erie$1,423$526171%

Show All Rows

Rates are for our designated sample driver shopping for a full-coverage policy.

Farm Bureau operates like AAA: nearly every state has a local chapter that offers car insurance policies and other benefits to members. Anyone can become a member, not just farmers, but you’ll need to pay an annual membership fee, which can range from $20 to $100 per year. Membership benefits also include discounts on car purchases, farm equipment, produce, healthcare, travel, rental cars and more.

Drivers with poor credit typically receive insurance quotes that are 99% higher on average compared to drivers with excellent credit. Improving your credit score is a great way to get big savings on your insurance policy.

Cheapest car insurance company for military members: USAA

USAA

USAA is the cheapest company on average by quite a wide margin for drivers who qualify, beating State Farm’s rates by $100 per year on average.

InsurerAverage annual rate
USAA$432
Farm Bureau$472
State Farm$532
Average of all insurers$717

USAA operates in all 50 states and Washington, D.C., but only active military members, veterans and their families may be eligible. However, as the fifth-largest auto insurance company in the country, it serves almost as many drivers as other big names like Progressive and Allstate.

USAA stands out for more than just affordable rates: It also has one of the best customer service reputations in the industry. The company takes the top spots in J.D. Power’s Auto Insurance Claims Satisfaction Study every year. USAA also has a low complaint index from the National Association of Insurance Commissioners (NAIC), which means customers don’t have many complaints about their service or claims.

The cheapest insurers by state

Select your state 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 

The price of car insurance varies greatly between states. One company may be expensive in Utah but inexpensive in New York. USAA is almost always the cheapest company in every state, but its eligibility requirements make it restrictive. State Farm was the cheapest widely available and accessible insurer.

In some states, a small, local company or affiliate could offer you the least expensive car insurance. For example, the cheapest insurers on average in Arkansas, Georgia, Kentucky, Louisiana and Nebraska are their Farm Bureau affiliates.

State Cheapest company Annual rate

  • Alabama State Farm $554
  • Alaska State Farm $359
  • Arizona State Farm $653
  • Arkansas Farm Bureau $361
  • California Geico $390
  • Colorado State Farm $452
  • Connecticut State Farm $629
  • Delaware State Farm $738
  • Florida Geico $274
  • Georgia Farm Bureau $562
  • Hawaii Geico $274
  • Idaho Auto-Owners $236
  • Illinois State Farm $377
  • Indiana Auto-Owners $302
  • Iowa State Farm $198
  • Kansas State Farm $356
  • Kentucky Farm Bureau $503
  • Louisiana Farm Bureau $549
  • Maine State Farm $361
  • Maryland State Farm $809
  • Massachusetts Hanover $387
  • Michigan Auto-Owners $1282
  • Minnesota State Farm $460
  • Mississippi State Farm $468
  • Missouri State Farm $419
  • Montana State Farm $260
  • Nebraska Farm Bureau $336
  • Nevada State Farm $640
  • New Hampshire State Farm $332
  • New Jersey State Farm $427
  • New Mexico State Farm $360
  • New York Progressive $732
  • North Carolina Erie $344
  • North Dakota State Farm $313
  • Ohio State Farm $299
  • Oklahoma State Farm $351
  • Oregon State Farm $503
  • Pennsylvania Farm Bureau $336
  • Rhode Island Geico $997
  • South Carolina Geico $460
  • South Dakota Auto-Owners $218
  • Tennessee State Farm $314
  • Texas State Farm $450
  • Utah Farm Bureau $574
  • Vermont State Farm $282
  • Virginia Geico $327
  • Washington State Farm $413
  • West Virginia State Farm $382
  • Wisconsin State Farm $325
  • Wyoming Geico $222

Which drivers can get the cheapest car insurance rates?

A variety of factors affect your car insurance quotes, including your location, age, driving history, vehicle, credit score and, perhaps most importantly, coverage.

Cheapest rates by age and coverage

Young drivers and those with an accident history typically pay much more than older drivers and those who have a clean record. Those who opt for a minimum-coverage policy can get considerable savings on their premiums, though they risk not being fully covered in the event of a major accident.

Broadly speaking, you should take two key steps to find the cheapest car insurance for you.

  1. Ensure you’re shopping for the appropriate level of car insurance coverage.
  2. Shop for quotes between multiple insurers, including our top recommendations. When shopping, take advantage of all available discounts.

Taking the first step — knowing how much car insurance you need — is important for finding appropriately cheap car insurance. You don’t want to overpay for unnecessary coverage, but you do want to purchase enough coverage to fulfill legal requirements and to appropriately cover your risk. You’ll also have to define your appropriate coverage limits to make fair price comparisons across insurers.

How much auto insurance you need comes down to your budget, your state’s car insurance requirements and how coverage types work together.

CoverageRequiredHow much to get
Bodily injury liabilityRequired in every state except FL, NH and VAPer accident limits close to your net worth
Property damage liabilityRequired in every state except NH and VAPer accident limits close to your net worth
Uninsured and underinsured motorist coverageRequired in 22 statesPer accident limits close to your net worth if you don’t have PIP and collision
Collision and comprehensiveRequired if you have a car loan or lease a carRecommended if your car is worth more than $3,000
Personal injury protection (PIP) or medical paymentsRequired in 14 statesRecommended if you don’t have health insurance or you have high deductibles or copays

How much coverage you need will depend on your finances. For example, high-net-worth individuals should get liability limits similar to their net worth, which will probably exceed the state-required minimums.

How to get cheaper car insurance with discounts

Now that you’ve determined how much car insurance you need, shop around between insurers and apply all discounts possible.

Once you know how much coverage to buy, it’s time to compare car insurance companies. Even when you opt for the exact same coverage levels with two different insurers, one company could be much cheaper for you than another based on how it calculates its rates.

It’s easier than ever to compare cheap insurance quotes using online quote tools. But you may want to talk to an insurance agent to ensure you get the most accurate quote possible.

By talking to an agent, you can see if you qualify for discounts that may not be applied in the online quote tool process. Car insurance discounts are generally broken into four categories:

  • Driver safety discount: Cheaper rates for having a safe driver history or taking defensive driving courses.
  • Driver discount: Discounts lifestyle elements that insurers reward with cheaper rates. These can range from incentives — such as a student getting savings for getting good grades — to elements you can’t control, such as a senior discount for those of a certain age.
  • Policy discount: Savings offered for buying more products or coverage from a particular insurer. The most common discount of this type is a home and auto bundle, in which you get big savings from buying a home and auto insurance with the same company.
  • Safe car discount: If your car has safety features, such as anti-theft technology or automatic braking, you may qualify for a discount.

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