The Cheapest Car Insurance Companies (May 2024)
State Farm has the cheapest car insurance for most drivers, at $50 per month for liability coverage and $124 for full coverage.
Find Cheap Auto Insurance Quotes in Your Area
The cheapest car insurance companies
- State Farm: $124/mo
- American Family: $160/mo
- Travelers: $160/mo
- Farm Bureau: $161/mo
- Geico: $161/mo
- Progressive: $169/mo
- Nationwide: $185/mo
- Allstate: $217/mo
- USAA*: $100/mo
Top 10 cheapest car insurance companies
State Farm is the cheapest national car insurance company, at $50 per month for liability-only coverage.
American Family and Geico also have affordable quotes, averaging $61 per month. USAA has the cheapest rates overall, charging $34 per month. But only military members, veterans or their families can qualify for USAA.
Company |
Monthly rate
| ||
|---|---|---|---|
| State Farm | $50 | |
| American Family | $61 | |
| Geico | $61 | |
| Progressive | $66 | |
| Travelers | $70 | |
*USAA is only available to military members, veterans and some of their family members.
To help 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.
Find Cheap Auto Insurance Quotes in Your Area
How do I get the cheapest auto insurance?
Cheapest car insurance overall: State Farm
Pros:
-
Cheapest company in the most states
-
Dependable customer service
Cons:
-
Fewer coverage options than other companies
State Farm is the best cheap car insurance company for most drivers.
State Farm has the best rates for full coverage in 24 states, if you can't get USAA.
Company |
Full coverage
|
Liability only
|
|---|---|---|
| State Farm | $124 | $50 |
| American Family | $160 | $61 |
| Travelers | $160 | $70 |
| Farm Bureau | $161 | $46 |
| Geico | $161 | $61 |
*Only current and former military members and their families are eligible for a USAA policy.
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 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, a bundling discount, an anti-theft device discount and more.
Cheapest liability-only car insurance: Farm Bureau
Pros:
-
Cheapest liability coverage quotes
-
Excellent customer service
Cons:
-
Few coverage add-ons available
-
Can't compare quotes online
Company | Monthly cost |
|---|---|
| Farm Bureau | $46 |
| State Farm | $50 |
| American Family | $61 |
| Geico | $61 |
| Progressive | $66 |
*Only current and former military members and their families are eligible for a USAA policy.
Farm Bureau has great prices for both minimum and full coverage.
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
Pros:
-
Offers the most discounts of any major company
-
Reliable customer service
Cons:
-
Not available in all states
American Family has great discounts for things like bundling and being a safe driver.
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 $61 per month. Full coverage costs around $160 per month.
AmFam's car insurance rates are slightly more expensive than State Farm's. But you may pay less overall if you can qualify for its car insurance 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 air bags
- 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
Pros:
-
Cheapest individual policies for new drivers
-
Affordable rates for family policies
-
Reliable customer service
Cons:
-
Can't compare quotes online
-
Only available in 26 states
New drivers almost always pay more, but Auto-Owners has consistently great rates.
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.
Company | Age 16 to 25 | Age 26 to 80 |
|---|---|---|
| Auto-Owners | $112 | $43 |
| Farm Bureau | $128 | $48 |
| State Farm | $222 | $82 |
| Allstate | $223 | $100 |
| Geico | $286 | $163 |
*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 who are 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
Pros:
-
Cheap rates for any driving record
-
Accident forgiveness
-
12-month rate lock
-
Available in 12 states and D.C.
Cons:
-
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%.
Ticket | Accident | DUI | |
|---|---|---|---|
| Erie | $121 | $133 | $181 |
| State Farm | $135 | $154 | $367 |
| Auto-Owners | $152 | $185 | $285 |
| Farm Bureau | $183 | $222 | $279 |
| American Family | $196 | $248 | $260 |
Quotes are for a full-coverage policy. USAA is only available to people affiliated with the military.
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 most of the same car insurance discounts as larger national companies. These include 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
Pros:
-
SmartMiles mileage-based savings if you drive under 12,000 miles/year
-
Up to 40% savings for safe drivers with SmartRide usage-based program
Cons:
-
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.
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.
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.
Cheapest quotes for drivers with poor credit: Geico
Pros:
-
Affordable rates with any credit score
-
Lots of discounts
Cons:
-
Average customer service
Drivers with bad credit may find competitive rates at Geico.
Geico has the cheapest car insurance quotes for drivers with poor credit scores. A full-coverage policy from Geico costs around $258 per month for drivers with poor credit. That's 16% cheaper than the national average.
Company | Monthly rate |
|---|---|
| Geico | $258 |
| Nationwide | $262 |
| American Family | $264 |
| Farm Bureau | $277 |
| Progressive | $289 |
USAA is only available to people affiliated with the military.
Drivers with poor credit pay nearly twice as much for car insurance as 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
Pros:
-
Cheapest quotes in most states
-
Top-rated customer support
-
Unique military perks like custom billing schedule
Cons:
-
Only available to military, veterans and family
-
Long quote process
However, 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.
Company | Monthly cost |
|---|---|
| USAA | $34 |
| Erie | $41 |
| Auto-Owners | $43 |
| Farm Bureau | $46 |
| State Farm | $50 |
| Geico | $61 |
| National average | $64 |
USAA 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 Claims Satisfaction Study. That means drivers can expect USAA to help get things back to normal quickly after an accident. USAA also receives few official complaints through the NAIC, which means customers are typically happy with its support and claims process.
Who has the cheapest car insurance near me?
Erie Insurance is the cheapest local car insurance company, with full-coverage rates averaging $106 per month.
Erie, Mercury and Auto-Owners are the best choices for minimum liability, at less than $45 per month.
Find Cheap Auto Insurance Quotes in Your Area
Cheapest local car insurance companies
Cheap full-coverage quotes
Cheap liability-only quotes
Local companies |
Monthly rate
| ||
|---|---|---|---|
| Erie | $106 | |
| Mercury | $133 | |
| Country Financial | $133 | |
| Auto-Owners | $141 | |
| Shelter | $161 | |
| Safeway | $257 | |
Cheap full-coverage quotes
Local companies |
Monthly rate
| ||
|---|---|---|---|
|
| Erie | $106 | |
|
| Mercury | $133 | |
|
| Country Financial | $133 | |
|
| Auto-Owners | $141 | |
|
| Shelter | $161 | |
|
| Safeway | $257 | |
Cheap liability-only quotes
Local companies |
Monthly rate
| ||
|---|---|---|---|
|
| Erie | $41 | |
|
| Mercury | $43 | |
|
| Auto-Owners | $43 | |
|
| Country Financial | $52 | |
|
| Shelter | $64 | |
|
| Safeway | $116 | |
Cheapest car insurance by state
State Farm is the cheapest widely available insurance company in 24 states for full 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 for minimum coverage in six states. Local companies might have cheaper rates and more personalized service. But national companies often have better online features and bundling options.
Full coverage
Minimum liability
State | State avg. | Cheapest rate | |
|---|---|---|---|
| Alabama | $165 | Travelers | $144 |
| Alaska | $136 | Geico | $112 |
| Arizona | $224 | State Farm | $125 |
| Arkansas | $157 | State Farm | $101 |
| California | $156 | Geico | $124 |
Monthly quotes for a full-coverage policy.
Full coverage
State | State avg. | Cheapest rate | |
|---|---|---|---|
| Alabama | $165 | Travelers | $144 |
| Alaska | $136 | Geico | $112 |
| Arizona | $224 | State Farm | $125 |
| Arkansas | $157 | State Farm | $101 |
| California | $156 | Geico | $124 |
Monthly quotes for a full-coverage policy.
Minimum liability
State | State avg. | Cheapest rate | |
|---|---|---|---|
| Alabama | $60 | Progressive | $43 |
| Alaska | $55 | State Farm | $46 |
| Arizona | $90 | State Farm | $55 |
| Arkansas | $52 | State Farm | $31 |
| California | $48 | Geico | $35 |
Monthly quotes for a minimum-coverage policy.
Which drivers can get cheap car insurance?
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.
A variety of factors affect your car insurance quotes. This can include your location, age, driving history, vehicle, credit score 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 |
How much car insurance coverage should I get?
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.
- 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? 20 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.
-
Do I need it? You must have collision and comprehensive 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 8 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 insurance 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.
Frequently asked questions
Who normally has the cheapest car insurance?
State Farm has the cheapest liability-only car insurance rates among national companies, averaging $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 often it's 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
- Comprehensive and collision: $500 deductible
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.