Here Are The 10 Cheapest Car Insurance Companies in the US
While car insurance is mandated and provides financial protection in case of an emergency, there's no denying that auto insurance can be a costly affair. Americans are reportedly spending just over $2000 a year for full coverage and $622 for minimum coverage. Finding the cheapest and best car insurance that suits your needs does require a bit of research. There are hundreds of car insurance companies in the United States, and with the premiums largely varying from state to state, it can be a challenge to declare one company as the cheapest. Having said that, there are plenty of ways to analyze and pick the one personally suited for you. It's also important to know that car insurance can significantly vary depending on your current credit score, driving history, age, and more.
Cheapest Car Insurance
It is extremely crucial to compare car insurance quotes on your own as it will depend on your personal needs. Here are certain companies that have the best rates for some specific needs.
| For Good Drivers | Geico |
| For Teen Drivers | State Farm |
| For Senior Drivers | State Farm |
| Poor Credit Score | Geico |
| After Speeding Ticket | USAA, Geico |
| For the Military Community | USAA |
Top 10 cheapest car insurance companies
While there are hundreds of car insurance companies, only a handful of them are known for their customer loyalty and performance. Here are ten companies that are best rated based on factors like cheap rates, location, years of experience, and more...
USAA
The United Services Automobile Association or USAA is an American insurance company that is not available for the general public and is exclusive to members of the military and their immediate families. The company is well known for its customer service and is also top-rated when it comes to cheap car insurance companies with really low rates in many categories. The carrier which has been in operation for almost a century now, is tailored for a niche of customers and is also known for its motorcycle insurance.
Pros: The company has valuable experience and offers many types of coverage for military families. It also has a huge number of customers base and is highly rated across most platforms. It is also available in all 50 states.
Cons: USAA is limited to a specific group of people and not available for general people.
American Family
The company is well-known for its customer loyalty and less number of auto insurance companies when considering the size of the company. The company also stands out for the plethora of coverage options that it offers including other insurance apart from car insurance. The company is also known for offering many discounts and therefore is a good option for people looking for cheap car insurance. The company also lets you buy accident forgiveness, if you meet their requirements. The accident forgiveness ensures that your rates won't go up in case of an accident.
Pros: The company has nearly a century of experience in the industry and offers various types of coverage including, home, life, car insurance, and more. The company is also known for providing 24/7 customer service.
Cons: The company is not available in all states. The company only sells insurance in 19 states, including Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.
State Farm
The website of Nerdwallet is easy to navigate and getting a quote from it can be comparatively easy. The company offers cheaper than average annual rates and is rated highly when it comes to customer loyalty and overall customer service. It also offers competitive rates for drivers and is known for satisfying its customers when it comes to claim handling. The company is also known for its insurance when it comes to teen drivers and State Farm is one of the best for female teen drivers.
Pros: The company has an easy-to-navigate website and mobile app which makes getting a quote very easy. State Farm is also one of the cheapest providers in most states. The company offers 24/7 service and a wide range of discounts.
Cons: The company does not offer mechanical breakdown insurance is not always the best option in all states.
Geico
Geico is overall a good choice for many. It is known for offering one of the lowest rates. Geico's customer service is often talked about and is rated satisfactory. Geico is also known for having a simple procedure of filing a claim and seeing only a few customer loyalty complaints in a year. When it comes to Teen drivers, Geico comes after USAA and American Family. Geico is also highly rated for Drivers with poor credit and its rates are the second-lowest for the category coming behind USAA. Geico also offers an array of discounts and helps customers save when buying car insurance.
Pros: Geico is available in all 50 states and is one of the most affordable car insurance in the United States. The company also offers unique options like mechanical breakdown insurance. It also boasts an easy top-use website and has great customer reviews.
Cons: Prices are higher if you are young and have a bad driving record.Very few offices for in-person service in the country.
Nationwide
Nationwide is best known for its car insurance is offers everything that you would expect from it and a few additional perks. The company also offers great loyalty discounts and has fewer than expected numbers of complaints considering its size. Nationwide also has a great website. It also offers 24/7 phone, and online service and has a pretty great procedure when it comes to filing your claim. However, it's important to note that there are quite a few negative reviews across platforms.
Pros: Nationwide is well-established and has 95 years of experience. The company is known for its 24/7 service and is available in all 50 states.
Cons: It has quite a few negative reviews.
Travelers
Travelers is another company that is known for selling car insurance. Most customers are satisfied with their claim-handling procedure and said that they were able to file a claim with ease. According to US News's survey, 55% of those who have filed a claim said they are very likely to renew their policies. Travelers is also known for having competitive prices for customers with poor credit. It is about $500 per year cheaper than the national average, as per the publication.
Pros: Travelers are known for their cheaper rates across categories. The company also offers accident forgiveness as well as minor violation forgiveness.
Cons: Average rates for senior drivers are high and they recently stopped operating in Florida meaning anybody who has an existing policy will not be able to renew it anymore.
Progressive
The insurance company has been in the business for more than eight decades and is known for being the first-ever company that allowed customers to pay their premiums in installments. The company is currently available in forty states and has a reputation for being a stable and trustworthy instance company. Even though the carrier offers various kinds of insurance, it is still best known for its auto insurance.
Pros: The company has valuable experience in the field and is known for its 24/7 customer service. The company has an easy-to-navigate website and also offers a live chat service.
Cons: The insurance is not available in ten states as of now and does have some negative reviews.
Allstate
Allstate is another insurance company that is known for being one of the best and cheapest car insurance companies in the country. While some of the policies can be a little expensive the company is overall ranked as one of the most reliable insurance companies. The company's rates are nearly 30% cheaper for young adults while the rates for Senior drivers are higher than the national average, as per US News. The company ranks high in customer satisfaction and also offers many discounts to its customer base.
Pros: The company has great customer service and most customers across platforms seem to be satisfied by their service. Customers also said that opening a new policy is a cakewalk.
Cons: Can be expensive in certain categories.
Farmers
The well-established company has experience of more than ninety years. The company also offers personalized policies for the customers and is known to match the customers' requirements more often than not. Apart from the standard coverage plans they also offer rental car reimbursement, towing, and roadside assistance. The company also has great ratings but can be expensive in certain categories. The company is known for offering a handful of discounts, including multi-vehicle discounts, teen-driver discounts, and Alternative fuel discounts.
Pros: Has valuable experience and provides a range of coverage options. The company is also well-rated and has a high volume of positive customer reviews.
Con: It can be relatively expensive and has no office response time set.
AAA
AAA is one of the best companies when it comes to car insurance but it's important to note that it does have higher rates when compared to the other nine companies in the list today. AAA is known for its customer loyalty. The company rates are undoubtedly higher for people with poor credit, teen drivers, and even drivers with DUI. AAA does offer discounts that help customers save and customers across platforms said they were satisfied with the discounts.
Pros: AAA's customer loyalty is one of the best and the company is also known for its discounts. The company also offers additional perks.
Cons: Costly compared to the other companies on the list.
How do I get the cheapest auto insurance?
Auto insurance is something that everybody needs to buy but nobody wants to spend more than what's needed. It's a given, that everybody in this industry is vying for your business and therefore it's extremely important to understand that there's no way any one of them is The Best!
It's important to analyze and do your research to understand and pick the one that is best suited for you. For example, if you are a middle-aged, driver with a not-so-good driving history but great credit, it might make sense for you to look for a good credit discount and compensate for your poor driving history.
Another important thing to consider is that the prices significantly vary from state to state. For instance, in Florida, State Farm charges $1,766 a year, on average, which is the cheapest rate in the state for somebody who doesn't have a military connection, while Geico charges around $200 more. However, it's exactly the opposite in California where Geico is the cheapest with an average rate of $1,458 which makes State Farm's average way higher.
Cheapest car insurance overall
As already mentioned, premiums will vary depending on many factors and therefore there is no cheapest insurance company, and what may be cheapest for you can be expensive for somebody else. The best way to get the cheapest car insurance is to get a quote for your particular needs. However, there are companies like Geico, USAA, Progressive, State Farm, and AAA that are widely considered as some of the cheapest insurance companies overall.
Cheapest liability-only car insurance
Liability-only car insurance or simply the most basic coverage plan is what most people opt for as getting car insurance is mandated. While there can be something else that is better suited for you, Geico is largely considered the cheapest liability-only insurance company that is also available nationwide. On average, the company's liability-only car insurance costs around $34 per month which is around $402 per year. This figure is around $500 cheaper than the national average.
Cheapest Car Insurance Company Known for Discounts
According to Forbes, State Farm is known for offering the best bundling auto insurance with an average 23% discount for multiple policies. Other companies like American Family and Farmers offer discounts of 18% each. If you do have a military connection then even USAA has some stunning discounts when it comes to their auto insurance.
Cheap car insurance for new and young drivers
Geico is known for offering young and new drivers affordable policies and a strong set of coverage plans. The company is known for having the lowest premiums and offers discounts to new drivers who just completed a driver's education or defensive driving course, as per US News. Apart from this they also offer amazing discounts for students who have great grades at school.
Cheap car insurance companies for adults
Some of the cheapest coverage plans are offered by Geico and USAA. State Farm is another company that is known for offering cheap auto coverage plans for adults.
Cheap car insurance companies for seniors
According to Forbes, Geico has some of the best coverage plans for seniors. The company also offers discounts for seniors and anybody who is 50 and older can avail of these discounts. While their lucrative plans are available in most states, it's advisable to check whether they have your desired policy in your state. Some of the plans include a five-year good driving discount, a Retired government and military discount, a Multi-car discount, and a Prime Time contract.
Cheap car insurance with a bad driving record
Too many clashes and violations can scare off insurance companies and therefore it's recommended to be careful with clashes. Having said that, there are plenty of options for you to choose from if you do have a bad driving record.
State Farm and Progressive are known for being the most affordable when it comes to car insurance policies for high-risk drivers and drivers who have a bad driving history. While the rates will be a tad bit more expensive they are still affordable when compared to the rates that are being offered by other companies.
Cheap insurance for safe and low-mileage drivers
You can pay less if you are a safe or a low-mileage driver. Some of the best companies that offer great discounts for safe drivers are, USAA, State Farm, Progressive, Nationwide, Geico, Farmers, and Allstate. Some companies are offering telematics programs that monitor your mileage and driving behavior through an app. This can decrease the premium that you pay. There are also concepts like Pay-per-mile car insurance that can help you pay as you go.
Cheapest quotes for drivers with poor credit
The cheapest car insurance companies for drivers with bad or poor credit are Geico, USAA, Nationwide, and COUNTRY Financial. The basic premium packages in this sub-category for the companies are $157, $170,$181, and $188 respectively.
Best cheap car insurance for military members
USAA has the best and cheapest insurance for military members with an average of $88 per month. USAA not only offers amazing rates but also great tailored service for a military lifestyle. The second best company for military members is Geico which offers $82 per month after 15% discounts.
Cheapest car insurance rates by US states
States |
The average annual cost for minimum coverage |
| Alabama | $526 |
| Alaska | $414 |
| Arizona | $543 |
| Arkansas | $581 |
| California | $764 |
| Colorado | $516 |
| Connecticut | $846 |
| Delaware | $936 |
| Florida | $1,286 |
| Georgia | $720 |
| Hawaii | $376 |
| Idaho | $341 |
| Illinois | $533 |
| Indiana | $408 |
| Iowa | $275 |
| Kansas | $490 |
| Kentucky | $764 |
| Louisiana | $930 |
| Maine | $396 |
| Maryland | $855 |
| Massachusetts | $535 |
| Michigan | $1,450 |
| Minnesota | $576 |
| Mississippi | $538 |
| Missouri | $599 |
| Montana | $396 |
| Nebraska | $445 |
| Nevada | $810 |
| New Hampshire | $478 |
| New Mexico | $413 |
| New York | $1,016 |
| North Carolina | $455 |
| North Dakota | $351 |
| Ohio | $345 |
| Oklahoma | $456 |
| Oregon | $682 |
| Pennsylvania | $506 |
| Rhode Island | $682 |
| South Carolina | $755 |
| South Dakota | $301 |
| Tennessee | $428 |
| Texas | $650 |
| Utah | $556 |
| Vermont | $278 |
| Virginia | $584 |
| Washington | $504 |
| West Virginia | $477 |
| Wisconsin | $393 |
| Wyoming | $393 |
Which drivers can get cheap car insurance?
Low-income drivers and safe drivers with low mileage have several ways to avail of discounts and get cheaper car insurance policies. There are also many ways to get a discounted policy if you are a new driver.
How to find affordable car insurance coverage
There are different ways to find insurance coverage best suited to your needs. For instance, bundling your home and car insurance is a great way to get cheaper rates. Research all the kinds of discounts available and see what all can you avail. Another thing to consider is keeping your car insurance in mind while buying your car. It's also important to maintain good credit as well as a good driving history to be able to get the best rates and remember to only pay for what you need.
How do Age and Gender affect car insurance premiums?
Senior and middle-aged drivers can get cheaper and better coverage plans and new and young drivers are considered high-risk drivers. Similarly, even gender matters when it comes to car insurance and female drivers tend to pay less when compared to male drivers. However, this gender disparity is known to shrink with age. One main reason why drivers pay more than women is that male drivers are more challenging to insure. It has been seen that men tend to drive longer distances than women which means that men are more likely to engage in high-risk driving.
What other factors affect car insurance premiums?
Some of the other factors are, Driving record, Credit Score, Coverage Level, Car Insurance History, Vehicle Use, Demographics, Marital Status, Mileage, Claim History, Driving Behavior, and Vehicle Type.
How can you find the cheapest car insurance rates?
The cheapest car insurance rates are offered by Geico, State Farm as well and USAA. The best way is to get a quote as per your requirements and look for all the available discounts.
Is choosing to go with the cheapest car insurance companies a smart decision?
Car Insurance can be expensive and therefore it's understandable why one can gravitate toward the cheapest coverage plan. However, it's important to understand that there are certain risks involved when it comes to choosing the cheapest. Therefore it's important to compare several quotes and take advantage of discounts and yet understand your needs before blindly choosing the cheapest and the most basic plan.
How do we calculate the cheapest insurance companies?
Certain factors should be considered before buying an insurance plan Things like your age, your history, and the kind of coverage that you need should be analyzed properly before choosing a plan. It's also important to understand that there are several ways in which you can lower your premiums. You can also consider bundling your insurance with other insurance. All in all, to calculate your premium you need to list your requirements, and then you can head over to your preferred insurance website and get a quote.
FAQs
Who is cheaper Geico or Progressive?
Geico's rates are typically lower but Progressive is known for offering better prices for drivers who are considered high-risk and have a bad driving history.
What is the lowest car insurance group?
There are 50 car insurance groups in the US, with Group 1 being a low risk and Group 50 being the high risk. Group 1 cars are the cheapest to insure while the Group 50 ones are the most expensive ones to insure.
What is the cheapest car insurance in Texas?
As per Nerdwallet, Redpoint County Mutual is the cheapest car insurance company in Texas.
How can I lower my car insurance in Texas?
Check for discounts, try and maintain a good driving record, take a defensive driving course, and compare several quotes.
Is Geico cheap in Texas?
Yes, Geico is affordable for most drivers in Texas.
What is the cheapest full-coverage insurance in Texas?
The cheapest car insurance company overall in Texas is Redpoint County Mutual, with an average monthly premium of $81 per month for full coverage, as per Nerdwallet.
Is Allstate cheaper than Geico?
No, Geico is relatively cheaper as per multiple sources.
Why is my car insurance so high in Texas?
Car insurance is high in Texas as it houses three of the top 10 largest cities in the country.
How much car insurance should I have in Texas?
Texas Law needs you to have at least $25,000 of coverage for property damage, as per the Texas Dept. of Insurance.
How much is the average car insurance in Texas?
The average car insurance in Texas is $2,019 per year for full coverage, as per Bankrate.
What affects car insurance rates in Texas?
Factors like your age, gender, driving history, and occupation can affect your car insurance rates in Texas.
What are the 3 factors that lower your cost of car insurance?
You can lower your premium by choosing the basic plan. Other than this the other two factors are the cost of your car and the annual mileage.
Is 200 dollars a month good for car insurance?
Yes, $200 is more than enough. Only four states face average rates for full coverage higher than $200 per month.
What are the three ways you can save on insurance?
You can always reduce premiums on older cars and ask for higher deductibles. Another way is to get as many discounts as possible.
Which is a type of insurance to avoid?
For most people, insurance on rental cars is a waste of money.
Does credit score affect car insurance?
Yes, the insurance provider will always look at your credit score before insuring your car.
How can I save the most money on my car insurance?
Comparing different plans is the best way to save on your car insurance. Another great way is to bundle your car insurance plan with some other kind of insurance like health insurance or home insurance.
Can I ask to lower my car insurance?
Yes, you can always negotiate and ask for discounts.
What are at least two ways you can save on auto insurance?
The two ways to save on your premiums are to pay them on time and the other way is to increase your deductible.
How can I spend less on car insurance?
Asking for higher deductibles as well as reducing add-ons on your policy can help you spend less on car insurance.
Can you ask your insurance company to lower your rate?
You can always ask for discounts and compare rates by asking for quotes.
What 6 things affect how much you will pay for car insurance?
The six things that affect your car insurance are your age, your gender, your occupation, your driving history, and your mileage.
Which is the most important insurance policy?
Life, Car and home insurance are the three most important forms of insurance.
