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The Cheapest Car Insurance Companies (April 2024)

State Farm has the cheapest car insurance for most drivers, at $50 per month for liability coverage and $124 for full coverage.

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Best cheap car insurance

Top 10 cheapest car insurance companies

State Farm is the cheapest national car insurance company, at $50 per month for liability-only coverage.

State Farm, American Family, Geico and Progressive are the cheapest car insurance companies for most drivers. USAA has even cheaper rates, but only military members, veterans or their families can qualify.

Company
Monthly rate
State Farm logo
State Farm
$50
American Family logo
American Family
$61
Geico logo
Geico
$61
Progressive logo
Progressive
$66
Travelers logo
Travelers
$70
Show All Rows

*USAA is only available to military members, veterans and some of their family members.

To help you get the most affordable car insurance near you, ValuePenguin's team spent hundreds of hours ranking the best cheap companies. We collected millions of car insurance quotes across every ZIP code in the U.S. Then we studied cost, coverage, availability and customer support for the 37 top companies across the U.S.

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How do I get the cheapest auto insurance?


Cheapest car insurance overall: State Farm

  • Liability only: $50/mo
  • Full coverage: $124/mo

Pros and cons

  • Cheapest company in most states

  • Dependable customer service

  • Fewer coverage options than other companies

State Farm is the best cheap car insurance company for most drivers.

State Farm has the best liability-only rates in 18 states, if you can't get USAA. It also has the cheapest full coverage quotes in 24 states.

Although State Farm is the largest auto insurance company in the country, you'll have to buy a policy through a local agent. However, you can usually compare quotes online before buying a policy. And State Farm's large reach means there's likely a nearby agent who can help compare the cheapest rates near you.

Cheapest national companies

Company
Full coverage
Liability only
State Farm$124$50
Travelers$160$70
Farm Bureau$161$46
Geico$161$61
Progressive$169$66
Show All Rows

Only current and former military members and their families are eligible for a USAA policy.

Will I lose out on good customer service for cheap rates with State Farm?

State Farm customers are typically happy with its fast and easy claims process after an accident. The company earned a high 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).

Safe drivers can sign up for State Farm's Drive Safe & Save program to get a discount for good driving habits. You can also save with an accident-free discount, bundling discount, an anti-theft device discount and more.

State Farm has all of the coverage options you would expect from a major insurance company. You can also get pet coverage, rideshare insurance and roadside assistance.

However, it's missing some popular coverage options, like new car replacement and gap insurance.

Cheapest liability-only car insurance: Farm Bureau

  • Liability-only: $46/mo
  • Full coverage: $161/mo

Pros and cons

  • Cheapest liability coverage quotes

  • Excellent customer service

  • Few coverage add-ons available

  • Can't compare quotes online

Drivers shopping for minimum coverage car insurance can find the best rates with Farm Bureau. A minimum coverage policy from Farm Bureau costs an average of $46 per month. That's 28% cheaper than average across the U.S.

Cheap liability-only car insurance quotes

Company
Monthly cost
Farm Bureau$46
State Farm$50
American Family$61
Geico$61
Progressive$66
Show All Rows

Only current and former military members and their families are eligible for a USAA policy.

However, minimum coverage car insurance isn't the best choice for most drivers. It doesn't pay for repairs to your car after an accident. Plus, the amount of protection you get with minimum coverage usually isn't enough to cover a major accident. That's why full coverage is better for most drivers, especially drivers with newer cars or a daily commute.

Farm Bureau also offers affordable full coverage car insurance at $161 per month, on average.

Drivers are generally happy with the service they get from Farm Bureau, too. The company has fewer complaints than similar companies, according to the NAIC.

However, you can't compare quotes from Farm Bureau online. That's because Farm Bureau insurance is made up of many smaller, local insurance companies. Some companies service just one state, while others sell insurance in a handful of locations. You'll need to call an agent to get cheap insurance quotes from Farm Bureau.

Cheap car insurance rates after discounts: American Family

  • Liability only: $61/mo
  • Full coverage: $160/mo

Pros and cons

  • Offers the most discounts of any major company

  • Reliable customer service

  • Not available in all states

American Family (AmFam) has some of the cheapest car insurance in the country. A minimum coverage policy from AmFam costs around $61 per month. Full coverage costs around $160 per month.

AmFam's car insurance rates are slightly more expensive than State Farm. But you may pay less overall if you qualify for its many car insurance discounts.

Car insurance companies with the most discounts

AmFam helps young drivers save on car insurance by offering discounts for good students and safe teen drivers. You can also save money with AmFam if you:

  • Bundle home and auto insurance
  • Insure 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 airbags
  • Take a defensive driving course
  • Avoid accidents, tickets and claims
  • Drive fewer than 7,500 miles/yr
  • Sign up for KnowYourDrive telematics, and drive safely
  • Pay your balance in full or make automatic payments

Cheap car insurance for new drivers: Auto-Owners

  • Liability only for new drivers: $112/mo
  • Full coverage for new drivers: $253/mo

Pros and cons

  • Cheapest individual policies for new drivers

  • Affordable rates for family policies

  • Reliable customer service

  • Can't compare quotes online

  • Only available in 26 states.

Auto-Owners has the cheapest rates for new drivers looking for an individual car insurance policy. Liability-only coverage from Auto-Owners costs just $112 per month for someone under 25 years old with no driving experience.

Auto-Owners also tends to have affordable rates for teen drivers looking to share a policy with their parents. Sharing a policy with family is almost always the cheapest way for new drivers to get insurance.

Cheap liability-only rates for new drivers by age

Company
Age 16 to 25
Age 25 to 80
Auto-Owners$112$43
Farm Bureau$128$48
State Farm$222$82
Allstate$223$100
Geico$286$163
Show All Rows

*USAA is only available to members of the military, veterans and their families.

In addition to affordable rates, Auto-Owners offers lots of discounts for new drivers. You could save with a good student discount, teen driver monitoring discount or student away at school discount.

New drivers can count on Auto-Owners to get them back on the road quickly after a crash. The company earned a high score on J.D. Power's claims satisfaction survey. That means customers are typically happy with their experience with Auto-Owners after an accident. That's especially important for new drivers because they're more likely to be in an accident.

The biggest downside to Auto-Owners is that it's only available in 26 states. Drivers who can't buy car insurance from Auto-Owners should consider Farm Bureau or State Farm.

Cheapest car insurance with a bad driving record: Erie

  • Full coverage with one ticket: $121/mo
  • Full coverage with one accident: $133/mo

Pros and cons

  • Cheap rates for any driving record

  • Accident forgiveness

  • 12-month rate lock

  • Available in 12 states and D.C.

  • Limited online support

Erie has the most affordable car insurance quotes for drivers with a ticket, accident or DUI.

Drivers with one speeding ticket pay around $121 per month for full coverage from Erie. That's 40% cheaper than the national average.

Erie also increases auto insurance rates the least after a ticket or accident.

It will only raise your rates by an average of 14% if you get a ticket. On average, companies increase quotes by 23% after one ticket. For an at-fault accident, Erie will only raise your rates by 25% instead of the average 49%.

Erie's average quote with a DUI is $181 per month for full coverage, an increase of 71%. The average increase after a DUI is 84%.

Cheapest monthly quotes after a driving incident

Ticket
Accident
DUI
Erie$121$133181
State Farm$135$154$367
Auto-Owners$152$185$285
Farm Bureau$183$222$279
American Family$196$248$260
Show All Rows

Quotes are for a full coverage policy

Erie customers who sign up for its Rate Lock program won't pay more for insurance after getting a ticket or filing a claim. Your rates can only increase if you move, change the people on your policy or change which cars are covered. However, the program isn't available in all states.

Erie also offers the same car insurance discounts as larger national companies. This includes savings for bundling multiple insurance policies, having anti-theft equipment or driving safely. Erie also has a reputation for excellent customer service.

The biggest downside to Erie is that it's only available in 12 states and Washington, D.C.

Cheap insurance for safe and low-mileage drivers: Nationwide

  • Liability only: $80/mo
  • Full coverage: $185/mo

Pros and cons

  • SmartMiles mileage-based savings if you drive under 12,000 miles/year

  • Up to 40% savings for safe drivers with SmartRide usage-based program

  • Usage-based insurance not available in all states

  • Expensive quotes for drivers who don't qualify for discounts

Nationwide has cheap car insurance options for people who work from home, retirees, students living on campus or young drivers with a clean record.

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.

The biggest downside to Nationwide is that 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.

Nationwide safe driver programs: SmartMiles vs. SmartRide

SmartMiles can save people who don't drive much up to 30% on their car insurance rates. Safe drivers could save up to 40% by tracking their driving through the SmartRide app.

  • People that drive fewer than 12,000 miles per year can get cheap car insurance from Nationwide's pay-per-mile program, SmartMiles.

    SmartMiles tracks the number of miles you drive per month using a device you plug in to your car. Nationwide charges you a set amount for every mile you drive, plus a monthly base rate.

  • Nationwide also offers a usage-based program, SmartRide.

    Usage-based insurance is often cheaper than standard car insurance. That's because your driving habits help determine your rates. This includes 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. For example, young drivers, people with poor credit or those who live in a busy city.

Cheapest quotes for drivers with poor credit: Geico

  • Full coverage with poor credit: $258/mo

Pros and cons

  • Affordable rates with any credit score

  • Lots of discounts

  • Average customer service

Geico has the cheapest car insurance quotes for drivers with poor credit scores. A full coverage policy from Geico costs around $252 per month for drivers with poor credit. That's 18% cheaper than the national average.

Cheap full coverage insurance for drivers with poor credit

Company
Monthly rate
Geico$258
Nationwide$262
American Family$264
Farm Bureau$277
Progressive$289
Show All Rows

Drivers with poor credit pay nearly twice as much for car insurance than drivers with good credit. Improving your credit score is a great way to get cheaper auto insurance quotes.

Geico also offers lots of discounts to help lower your rates. These include usage-based discounts, safe driver discounts and discounts for bundling home and auto insurance.

Best cheap car insurance for military members: USAA

  • Liability only: $34/mo
  • Full coverage: $100/mo

Pros and cons

  • Cheapest quotes in most states

  • Top-rated customer support

  • Unique military perks like custom billing schedule

  • Only available to military, veterans and family

  • Long quote process

USAA is available in all 50 states and Washington, D.C. It's the fifth-largest auto insurance company in the country. So, it serves almost as many drivers as other big names like Progressive and Allstate.

However, only military members, veterans and their families can get car insurance from USAA.

Cheap companies for liability-only insurance

Company
Monthly cost
USAA$34
Erie$41
Auto-Owners$43
Farm Bureau$46
State Farm$50
Geico$61
National average$64

USAA stands out for more than just cheap car insurance rates. It also has one of the best customer service reputations in the industry.

The company usually takes the top spot in J.D. Power's Auto Insurance Claims Satisfaction Study. That means drivers can expect USAA to help get things back to normal quickly after an accident. USAA also has a low complaint index from the NAIC, which means customers are typically happy with its support and claims process.

Who has the cheapest car insurance near me?

Erie, Auto-Owners and Mercury are the cheapest local car insurance companies, with liability-only rates of less than $45 per month.

Cheapest local car insurance companies

Cheap liability-only quotes

Cheap full coverage quotes

Local companies
Monthly rate
Erie logo
Erie
$41
Mercury logo
Mercury
$43
Auto-Owners logo
Auto-Owners
$43
Country Financial logo
Country Financial
$52
Shelter logo
Shelter
$64
Safeway logo
Safeway
$116

Cheap liability-only quotes

Local companies
Monthly rate
Erie logo
Erie
$41
Mercury logo
Mercury
$43
Auto-Owners logo
Auto-Owners
$43
Country Financial logo
Country Financial
$52
Shelter logo
Shelter
$64
Safeway logo
Safeway
$116

Cheap full coverage quotes

Local companies
Monthly rate
Erie logo
Erie
$106
Mercury logo
Mercury
$133
Country Financial logo
Country Financial
$133
Auto-Owners logo
Auto-Owners
$141
Shelter logo
Shelter
$161
Safeway logo
Safeway
$257

Cheapest car insurance by state

State Farm is the cheapest widely available insurance company in 18 states for minimum coverage.

USAA is almost always the cheapest car insurance company in every state. But most people can't get insurance from USAA.

Best cheap car insurance near you

In some states, a smaller, local company might have the least expensive car insurance for you.

For example, Erie and Auto-Owners each have the cheapest rates in six states. Local companies might have cheaper rates and more personalized service. But national companies often have better online features and bundling options.

Minimum Liability

Full Coverage

State
State avg
Cheapest rate
Alabama$60Progressive$43
Alaska$55State Farm$46
Arizona$90State Farm$55
Arkansas$52State Farm$31
California$48Geico$35
Show All Rows

Monthly quotes for a minimum coverage policy

Minimum Liability

State
State avg
Cheapest rate
Alabama$60Progressive$43
Alaska$55State Farm$46
Arizona$90State Farm$55
Arkansas$52State Farm$31
California$48Geico$35
Show All Rows

Monthly quotes for a minimum coverage policy

Full Coverage

State
State avg.
Cheapest rate
Alabama$165Travelers$144
Alaska$136Geico$112
Arizona$224State Farm$125
Arkansas$157State Farm$101
California$156Geico$124
Show All Rows

Which drivers can get cheap car insurance?

A variety of factors affect your car insurance quotes. This can include your location, age, driving history, vehicle, credit score and coverage.

Having more driving experience and no tickets or accidents helps make car insurance cheap. Drivers who choose minimum coverage policies can get inexpensive car insurance quotes. However, you may not have enough protection to cover the cost of a major accident.

Cheapest rates by age and coverage

Full coverage quotes for different drivers

Driver
Monthly rate
Clean record$164
Speeding ticket$202
Accident$244
DUI$302
Poor credit$308
Teen driver$485
Compare Rates

Knowing how much car insurance you need is important for finding low-cost car insurance.

You don't want to overpay for coverage you don't need. But you do want to buy enough coverage to protect you after a major accident. This also makes comparison shopping easier, since different insurance companies might recommend different coverage levels by default.

How much auto insurance you need depends on your budget, your state's requirements and the kinds of coverage you need.


Bodily injury liability (BI)

  • Do I need it? Every state except Florida, New Hampshire and Virginia requires bodily injury liability coverage.
  • How much should I get? As much as you can afford, so you have enough insurance to pay the other driver's medical bills after a major accident.

Property damage liability (PD)

  • Do I need it? Every state except New Hampshire and Virginia requires property damage liability coverage.
  • How much should I get? As much as you can afford, so you have enough coverage to pay for repairs after a major accident.

Uninsured and underinsured motorist coverage (UM/UIM)

  • Do I need it? 22 states and D.C. require UIM coverage
  • How much should I get? The same amount as your bodily injury and property damage limits.

Personal injury protection (PIP) or medical payments

  • Do I need it? 16 states require PIP coverage
  • Should I get it? You should consider it if you don't have health insurance or you have a high deductible.

Collision and comprehensive

  • Do I need it? You must have collision and coverage if you have a car loan or lease.
  • Should I get it? You should consider it if your car is worth more than $5,000 or is less than eight years old.

How to get affordable auto insurance with discounts

Once you know how much coverage to buy, it's time to compare cheap insurance companies.

Even when you choose the exact same coverage, some companies will have cheaper car insurance rates than others. One could be much cheaper for you than another, based on how each company calculates rates for different drivers.

Online quote tools make it easy to compare cheap auto insurance. But you may want to talk to an insurance agent too so you get the most accurate quote possible.

An agent can help you check for discounts that weren't included in your online quote. This may change which company has the most affordable car insurance for you.

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: Savings based on who you are or things you do. This can include getting good grades in school or being old enough to qualify for a senior discount.
  • Policy discount: Savings based on the policies you choose. The most popular option is a home and auto bundle, where you can save by buying both policies from the same company.
  • Safe car discount: If your car has safety features, like anti-theft technology or automatic braking, you may get a discount.
icon of insurance policy

Chances are you could get cheaper car insurance

Once you know how much coverage you need, the best way to find low-cost auto insurance is to compare quotes from multiple companies.

Compare Quotes Now

A driver looking for a minimum-coverage policy could be overpaying by an average of $294 per year.

You can get cheaper car insurance by comparing rates online. If you prefer to work with a person when looking for car insurance, you should talk to an independent insurance agent. They can help you compare quotes from multiple companies at the same time to find the most affordable car insurance rates.

Frequently asked questions

Who normally has the cheapest car insurance?

State Farm has the cheapest liability-only car insurance rates among national companies, at $50 per month. The cheapest local company is Erie, at $41 per month.

What's the cheapest online car insurance?

State Farm, American Family, 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 be able to get a discount for buying online.

How can I save money on car insurance?

The best way to find the cheapest insurance is to compare quotes from multiple companies. Don't just get quotes from big national companies. Local companies like Erie, 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 $100 per month cheaper on average than a full coverage policy. 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 depends on what you're giving up in exchange for the cheapest rate, but it often is not. If you raised your deductible or lowered your coverage, you'll have to pay more money 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 37 insurance companies. Rates are for a single 30-year-old man with good credit who drives a 2015 Honda Civic EX and has a clean driving record.

Minimum coverage quotes are based on the minimum required coverage in each state. Full coverage quotes are based on a policy with 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: $25,000 per accident
  • Uninsured or underinsured motorist bodily injury: $50,000 per person; $100,000 per accident
  • Personal injury protection: Minimum when required by state

Rates for new drivers are for a driver living in Georgia with no driving experience and a good credit score. Quotes include $25,000 of bodily injury liability per person and $50,000 per accident, along with $25,000 of property damage liability per accident. These are the minimum legal requirements in Georgia.

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.

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.