The Cheapest Car Insurance Companies (February 2026)
American Family has the cheapest car insurance for most drivers, $159 per month for full coverage.
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Top 10 cheapest car insurance companies
Cheapest car insurance for... | Monthly rate |
Savings vs. average
|
|---|---|---|
| Full coverage: American Family | $159 | $49 off |
| Liability-only: Auto-Owners | $52 | $24 off |
| Teen drivers: Auto-Owners | $169 | $66 off |
| Speeding tickets: Auto-Owners | $182 | $76 off |
| Accidents: State Farm | $218 | $92 off |
On this page, "cheap" refers to the lowest-priced policies available compared to national averages. ValuePenguin's cheapest picks each offer insurance in at least 25 states.
Cheapest full coverage auto insurance: American Family
American Family has the best cheap full coverage auto insurance, at $159 per month.
American Family also has great customer service, so you don't have to sacrifice good auto insurance for a cheap rate. However, it's not available in every state.
Travelers is the cheapest option that's available nationwide, but customers aren't always happy with its claims process after a crash. State Farm is typically a better option for people looking for cheap and reliable car insurance.
Inexpensive auto insurance companies for full coverage
Company |
Monthly rate
|
Avg. savings
| |
|---|---|---|---|
| American Family | $159 | $49 off | |
| Auto-Owners | $171 | $37 off | |
| Travelers | $173 | $35 off | |
| Geico | $187 | $21 off | |
| State Farm | $192 | $16 off | |
*USAA is only available to military members, veterans and some of their family members.
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Data-powered research on the cheapest car insurance
Cheap liability-only car insurance: Auto-Owners
Auto-Owners has the cheapest liability-only insurance rates available.
At $52 per month, a policy from Auto-Owners costs $24 per month less than the national average. Auto-Owners also has excellent customer service, so it's a great choice if you live in one of the states where it sells insurance.
American Family is also a good choice for cheap liability-only insurance, at $60 per month.
Low-cost liability car insurance
Company | Monthly rate |
Avg. savings
|
|---|---|---|
| Auto-Owners | $52 | $24 off |
| American Family | $60 | $16 off |
| Geico | $65 | $11 off |
| Travelers | $68 | $8 off |
| State Farm | $73 | $3 off |
*USAA is only available to military members, veterans and some of their family members.
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Risks of buying the cheapest car insurance
Liability-only insurance is typically the cheapest coverage you can buy, but it often isn't the best choice.
That's because it only includes the minimum amount of coverage required by your state.
The coverage limits included in a liability-only policy aren't usually high enough to pay the full cost after a serious accident. That's because liability-only insurance typically pays for injuries you cause to another driver or damage to their vehicle.
Liability-only coverage doesn't protect your car. That's why most lenders make you get a full coverage policy with comprehensive and collision coverage if you have a car loan or lease.
You should also consider these coverages if your car is less than eight years old or worth more than $5,000.
Cheaper car insurance companies may have poor customer service reviews. It may be worth it to pay a little more for a company that will take good care of you after a crash.
Companies with a rating of 4 stars or higher from ValuePenguin editors typically offer the best combination of affordable rates and reliable service.
Who has the cheapest car insurance near me?
Geico and Travelers each have the cheapest full coverage car insurance in 12 states.
Insurance prices vary by location, so the most affordable company overall might not offer the cheapest price in your state.
Full coverage
Minimum liability
Lowest monthly car insurance rates by state
State | Cheapest company | Avg. rate |
Avg. savings
|
|---|---|---|---|
| Alabama | Travelers | $134 | $47 off |
| Alaska | Geico | $129 | $41 off |
| Arizona | Progressive | $176 | $60 off |
| Arkansas | Shelter | $165 | $60 off |
| California | Geico | $143 | $78 off |
USAA is almost always the cheapest car insurance company in every state. But you can only get it if you're affiliated with the military.
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Affordable insurance quotes for teens: Auto-Owners
Auto-Owners has the cheapest insurance for teens, at $169 per month for a policy with basic coverage.
It also has the best full coverage insurance rates for young drivers, along with reliable customer service. But it's not available in every state.
State Farm also has good car insurance rates for teens, especially if they sign up for its Steer Clear Program. The program offers a discount to young drivers who complete a training course and practice with an older driver.
Best low-cost car insurance for teens
Liability-only quotes
Full coverage quotes
Company | Monthly rate |
Avg. savings
|
|---|---|---|
| Auto-Owners | $169 | $66 off |
| Geico | $179 | $56 off |
| Travelers | $228 | $7 off |
| State Farm | $233 | $2 off |
| American Family | $264 | $29 more |
*USAA is only available to military members, veterans and some of their family members.
Cheap insurance rates after a speeding ticket: Auto-Owners
Auto-Owners has the least expensive auto insurance rates for drivers with a speeding ticket.
A full coverage policy from Auto-Owners costs $182 per month after one ticket. That's $76 per month cheaper than average.
American Family and State Farm also have low prices after a ticket.
Reasonable car insurance rates after a speeding ticket
Company | Monthly rate |
Avg. savings
|
|---|---|---|
| Auto-Owners | $182 | $76 off |
| American Family | $189 | $69 off |
| State Farm | $210 | $48 off |
| Travelers | $235 | $23 off |
| Farm Bureau | $244 | $14 off |
One speeding ticket raises your rates by an average of $50 per month.
The best way to find cheap rates after a speeding ticket is to shop around for quotes from multiple companies. There's a difference of $231 per month between the cheapest company, Auto-Owners, and the most expensive, Farmers. That's four times as much as the average increase from a ticket.
Very cheap car insurance after an accident: State Farm
State Farm has the most reasonable car insurance quotes if you cause an accident, at $218 per month.
That's $92 per month less than the national average. It's also $36 per month less than the second-cheapest national company, Travelers. State Farm also has much better customer service than Travelers. If you get similar quotes from both companies, State Farm is typically the better choice.
Affordable full coverage car insurance after an accident
Company | Monthly rate |
Avg. savings
|
|---|---|---|
| State Farm | $218 | $92 off |
| Auto-Owners | $234 | $76 off |
| Travelers | $254 | $56 off |
| American Family | $257 | $53 off |
| Progressive | $309 | $1 off |
Full coverage rates go up by an average of $102 per month after an at-fault accident.
Don't rush to switch car insurance companies right after an accident. Your rate won't go up until your current policy expires. Instead, wait until you get your renewal offer from your current company, then shop around to see if you can find cheaper quotes.
Cheap insurance quotes for teens after a ticket or accident: Auto-Owners
Auto-Owners has the lowest car insurance rates for teens with bad driving records.
If Auto-Owners isn't available in your state, Geico has very cheap car insurance rates for teens and is available almost everywhere.
Speeding ticket
Accident
Great liability-only insurance rates for teens with a speeding ticket
Company | Monthly rate |
Avg. savings
|
|---|---|---|
| Auto-Owners | $183 | $97 off |
| Geico | $225 | $55 off |
| State Farm | $258 | $22 off |
| Progressive | $294 | $14 more |
| American Family | $296 | $16 more |
Affordable car insurance after a DUI: Progressive
Progressive has extremely cheap car insurance rates for drivers with a DUI, at $268 per month.
However, Progressive doesn't have a very good claims experience. American Family typically has happier customers, making it a better value for most people, at $296 per month.
Reasonable auto insurance quotes after a DUI
Company | Monthly rate |
Avg. savings
|
|---|---|---|
| Progressive | $268 | $123 off |
| Travelers | $289 | $102 off |
| American Family | $296 | $95 off |
| Auto-Owners | $346 | $45 off |
| Farm Bureau | $406 | $15 more |
You often need to get an SR-22 after a DUI. This is a document your insurance company sends to the DMV. It proves you have the minimum required insurance in your state.
Insurance companies charge you about $20 to $50 to file an SR-22 form, in addition to a rate increase for the DUI.
Cheap insurance for drivers with poor credit: American Family
American Family has the best car insurance prices for drivers with poor credit.
Full coverage from AmFam costs $263 per month for these drivers, which is $149 per month cheaper than the national average.
Geico is also relatively affordable, at $305 per month.
Great car insurance quotes for people with poor credit
Company | Monthly rate |
Avg. savings
|
|---|---|---|
| American Family | $263 | $149 off |
| Geico | $305 | $107 off |
| Travelers | $321 | $91 off |
| Progressive | $355 | $57 off |
| Farm Bureau | $379 | $33 off |
Insurance companies believe drivers with bad credit are more likely to file an insurance claim. That's why these drivers pay nearly twice as much for car insurance as those with good credit scores. However, a bad credit score doesn't mean you're a bad driver.
Good drivers with poor credit should consider signing up for a safe driving discount program, also called usage-based insurance. These programs track your driving habits using your phone or a device you plug into your car. Then, companies award discounts of up to 40% for practicing safe habits, like staying below the speed limit and avoiding late-night driving.
What are the best and cheapest car insurance companies?
The five best and cheapest car insurance companies are American Family, Erie, State Farm, Nationwide and USAA.
Cheapest overall: American Family
-
Editor's rating
- Liability-only: $60/mo
- Full coverage: $159/mo
Pros
-
Reliable customer service
-
Offers more discounts than most companies
Cons
-
Not available in all states
-
Bad for bundling due to pricey home quotes
American Family (AmFam) has some of the cheapest car insurance in the country and lots of discounts to bring its rates down even more.
A minimum coverage policy from AmFam costs around $60 per month. Full coverage costs around $159 per month.
You can get even cheaper rates at AmFam if you:
- Bundle home and auto insurance
- Cover more than one car
- Get a quote seven days before your old policy expires
- Switch to American Family from a competitor
- Have certain safety equipment installed in your car, like air bags
- Take a defensive driving course
- Avoid accidents, tickets and claims
- Drive fewer than 7,500 miles per year
- Sign up for KnowYourDrive telematics, and drive safely
- Pay your balance in full or make automatic payments
AmFam also helps young drivers save on car insurance by offering discounts for good students and safe teen drivers.
Cheapest regional car insurance company: Auto-Owners
-
Editor's rating
- Liability-only: $52/mo
- Full coverage: $171/mo
Pros
-
Extremely cheap liability-only rates
-
Very few customer complaints
Cons
-
Can't buy a policy online
-
Only available in 26 states
Auto-Owners has the best low-cost car insurance for people living in the Midwest and Southern regions where it sells insurance.
Minimum liability car insurance from Auto-Owners costs just $52 per month, which is $24 per month less than the national average. It also has the cheapest quotes for teen drivers and people with a recent speeding ticket.
In addition, Auto-Owners offers lots of coverage options if you want to add extra protection to your policy. For example, drivers with an auto loan can get gap insurance, which pays the difference between the current value of their car and the amount they owe the bank if it's totaled in an accident.
With Auto-Owners, you don't have to sacrifice great service for a low rate. The company gets less than half as many complaints as a typical insurance company its size. Auto-Owners also scored above average on J.D. Power's claims satisfaction survey, which means you can count on the company to get you back on the road quickly after a crash.
National company with the best value car insurance: State Farm
-
Editor's rating
- Liability-only: $73/mo
- Full coverage: $192/mo
Pros
-
Dependable customer service
-
Good prices for most people
Cons
-
Limited coverage options
State Farm offers the best blend of affordable rates and great service for most people.
In the past, State Farm had some of the cheapest rates in the country. While it's no longer the absolute cheapest option in many cases, it may be worth paying a few dollars extra per month for State Farm's great customer service.
State Farm also offers a number of ways to lower your auto insurance bill. For example, safe drivers can sign up for State Farm's Drive Safe & Save program. This program gives you a discount for practicing good driving habits. You can also save with an accident-free discount, a bundling discount, an anti-theft device discount and more.
Does State Farm have good customer service?
State Farm customers are typically happy with its fast and easy claims process after an accident.
The company has a good score on J.D. Power's claims satisfaction survey. State Farm also gets fewer complaints than similar companies, according to the National Association of Insurance Commissioners (NAIC).
Best car insurance discounts: Nationwide
-
Editor's rating
- Liability-only: $107/mo
- Full coverage: $265/mo
Pros
-
Big discounts for safe drivers
-
Cheap rates for people who don't drive often
Cons
-
Expensive if you can't get discounts
-
Savings programs not available everywhere
Nationwide has cheap car insurance options for people who work from home, retirees, students living on campus or young drivers with clean records.
If you drive less than average or are generally a safe driver, Nationwide may have the best car insurance rates for you. The company has both a usage-based and pay-per-mile auto insurance plan to help you save on car insurance.
However, these programs aren't available to everyone. The SmartMiles pay-per-mile program is available in 40 states and Washington, D.C. While SmartRide is more widely available, drivers in New York and California can't get the full 40% discount.
Cheapest for drivers with military ties: USAA
-
Editor's rating
- Liability-only: $41/mo
- Full coverage: $125/mo
Pros
-
Cheapest quotes in most states
-
Good customer support
-
Unique military perks
Cons
-
Only available drivers with military ties
-
Long quote process
USAA offers very affordable rates along with excellent customer service.
Only military members, veterans and their families can get car insurance from USAA.
But if you're eligible, it's widely available: USAA is available in all 50 states and Washington, D.C. It serves almost as many drivers as other big names like Progressive and Allstate.
USAA has one of the best customer service reputations in the industry. The company regularly earns one of the highest scores on J.D. Power's Auto Claims Satisfaction Study. That means drivers can expect USAA to help get things back to normal quickly after an accident. However, it takes longer to get a quote from USAA than most major insurance companies. So it may be more work to compare quotes.
Car insurance hacks to get cheaper rates
Compare separate and bundled quotes
In addition, if you work remotely sometimes or have a short commute, you'll usually save for driving less than average. I save a few bucks a month just by changing the default annual mileage when I'm getting quotes."
Pay your bill up front
We always pay for our policy annually, which saves us money. We just set aside money each month in a savings account so we're prepared to make the payment when our car insurance renews."
Choose an annual policy
Every time your policy renews, your company can raise your rates. Having an annual policy means your rate only goes up once each year, unless you make changes like adding a car or changing your coverage."
How to find very cheap car insurance rates
For example, car insurance rates in New Jersey are expected to go up by around 10.5%, while Iowa could see a 6.2% decrease. | |
You could save up to $1,884 per year by switching. | |
You could save up to 40% with multi-policy, safe driving, low mileage and payment discounts. | |
However, customers have seen larger rate hikes from midsize companies during the past five years. So if you choose one of these companies, it's even more important to shop around each year to make sure you're still getting the best deal. | |
For example, you may not need to add roadside assistance to your policy if you have coverage through your credit card. | |
But coverage from these companies is usually only a good idea if you have multiple tickets, accidents or a DUI. That's because they offer non-standard auto insurance, which caters to people with bad driving records and poor credit scores. Safe drivers can almost always find better rates elsewhere. |
How to get cheap car insurance with discounts
The biggest discount you can typically get is a home and auto bundle discount.
You can save up to 25% by buying both policies from the same company.
You can also consider signing up for a safe driving program. These programs use your phone or a plug-in device to track your driving habits. If you practice safe habits, you can save up to 40% on your car insurance bill.
Insurance companies typically break car insurance discounts into four categories:
- Driver safety discounts save you money if you don't have any tickets or accidents on your record or you take a defensive driving course.
- Driver discounts save you money based on who you are or things you do. This can include getting good grades in school, owning your home or being old enough to qualify for a senior discount.
- Policy discounts save you money based on the policy you choose and how you pay for coverage. For example, you can save by making automatic payments or paying your annual bill up front.
- Safe car discounts save you money if your car has safety features. This includes anti-theft technology, automatic braking or daytime running lights.
How to get cheaper car insurance by choosing the right coverage
Knowing how much coverage you need is important when shopping for low-cost car insurance.
You don't want to overpay for coverage you don't need. But it's important to buy enough coverage to protect you after a major accident.
Knowing your coverage needs also makes comparison shopping easier. Different insurance companies might recommend different coverage levels by default.
The amount of auto insurance you need depends on your budget, your state's requirements, whether you have a loan or lease and your personal preferences.
Collision and comprehensive coverage
- Do I need it? If you have a car loan or lease, you must have collision and comprehensive.
- Should I get it? You should strongly consider it if your car is worth more than $5,000 or is less than eight years old.
- What deductible should I choose? Choose a deductible you can easily afford to pay after an accident. However, keep in mind a lower deductible typically means your car insurance quotes will be higher. That's because the insurance company will have to pay more money if you're in an accident.
Bodily injury liability
- Do I need it? Every state except Florida and New Hampshire requires bodily injury liability coverage.
- How much should I get? As much as you can afford. Higher limits mean the insurance company will cover more of the other driver's medical bills after a major accident.
Property damage liability
- Do I need it? Every state except New Hampshire requires property damage liability coverage.
- How much should I get? As much as you can afford. Higher limits mean the insurance company will pay more to fix or replace the other driver's car — and any other damage you cause — in a crash.
Uninsured motorist coverage
- Do I need it? 20 states and D.C. require uninsured and underinsured motorist coverage (UM/UIM).
-
How much should I get? Most people get the same amount as their bodily injury and property damage limits. However, you might consider lower limits to help lower your auto insurance rates, if it's an option.
For example, if you live in an area with expensive cars, you may choose $50,000 of property damage coverage. But if your own car is only worth $20,000, you may not need $50,000 of uninsured motorist property damage coverage.
Personal injury protection
- Do I need it? 16 states require personal injury protection (PIP).
- Should I get it? You should consider it if you don't have health insurance or you have a high health insurance deductible.
Many companies offer coverage add-ons that can raise both your protection and your bill.
For example, many drivers add roadside assistance to their car insurance policies. However, you may already have this coverage for free from your credit card company or dealership if you have a newer car.
Frequently asked questions
What is the cheapest car insurance?
American Family has the cheapest full coverage car insurance rates among national companies, at $159 per month. The cheapest midsize company is Erie, at $154 per month.
Who has the cheapest car insurance quotes online?
American Family, Travelers, Geico, and USAA are some of the cheapest companies that let you get quotes and buy a policy online. It's often cheaper to buy car insurance online than it is to work with an agent. You might also be able to get a discount for buying online.
How can I save on car insurance?
The best way to save money on car insurance is to compare quotes from multiple companies. Don't just get quotes from big national companies. Midsize companies like Erie, Country Financial, Mercury and Auto-Owners have some of the lowest car insurance rates if you live in a state they serve.
What's the cheapest type of car insurance?
Minimum liability coverage is the cheapest type of car insurance. Liability-only insurance is $132 per month cheaper on average than full coverage. Switching to a liability-only policy could help you save if your car isn't worth much and you don't have a car loan or lease.
Is it a good idea to get the cheapest car insurance?
It's usually not a good idea to get the cheapest insurance. But it depends on what you're giving up in exchange for the cheapest rate.
If you raised your deductible or lowered your coverage, you'll have to pay more after an expensive accident. Or, if you choose a company known for a slow claims process, you could be without a car or have to pay for a rental while you wait for the repair check in the mail.
Methodology: How we got our info
To find the cheapest auto insurance, ValuePenguin collected quotes for thousands of ZIP codes in the U.S. from 56 insurance companies. Rates are for a single 30-year-old man with good credit who owns a 2018 Honda Civic EX and has a clean driving record.
Minimum coverage quotes include the minimum required coverage in each state. Full coverage quotes include higher liability limits, along with comprehensive and collision coverage:
Full coverage limits
- Bodily injury liability: $50,000 per person, $100,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured or underinsured motorist bodily injury: $50,000 per person, $100,000 per accident
- Personal injury protection: Minimum when required by state
- Comprehensive and collision: $500 deductible
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurance company filings and should be used for comparative purposes only. Your own quotes may be different.
ValuePenguin found the average amount drivers overpay for car insurance by calculating the difference between the average cost of a minimum coverage policy across all sample companies in each state and the average cost of the cheapest company in that state. These figures were then averaged across all 50 states and Washington, D.C., to find a national average.
About the Author
Senior Writer
Lindsay Bishop is a Senior Writer at ValuePenguin, where she educates readers about home, auto, renters, flood and motorcycle insurance.
Lindsay began her career in the insurance and financial industry in 2010. She was a licensed auto, home, life and health insurance agent and held Series 6 and 63 financial licenses.
After a hiatus from the financial sector, Lindsay returned to the industry as a content writer for ValuePenguin in 2021. She enjoys having the opportunity to help readers make smart decisions about their insurance so they can be prepared for anything life throws their way.
When Lindsay isn't writing about insurance, you can find her spending time with family, enjoying the outdoors on Sunday long runs or riding her Peloton.
How insurance helped Lindsay
As a homeowner for 15 years located in South Carolina, Lindsay has plenty of experience navigating the coastal insurance market and managing the claims process. That includes successfully negotiating a full roof replacement claim.
Expertise
- Home insurance
- Car insurance
- Flood insurance
- Renters insurance
- Motorcycle insurance
Referenced by
- CNBC
- Yahoo Finance
- Miami Herald
Education
- BS/BA Economics, University of Nevada Las Vegas
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
