What’s the cheapest auto insurance company?
The cheapest auto insurance companies in the United States are USAA, Erie Insurance, Geico, and State Farm. You can get affordable insurance when you have good credit, a clean driving record, and a low or medium coverage limit.
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Justin Wright
Licensed Insurance Agent
Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...
Licensed Insurance Agent
UPDATED: Nov 12, 2024
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Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 12, 2024
It’s all about you. We want to help you make the right car insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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Locating the most affordable car insurance company isn’t as difficult as it seems. You can get cheap car insurance quotes, but you have to shop with the right companies.
So, which insurance companies have affordable auto insurance? Don’t worry – we’re here to show you which companies provide cheap insurance rates.
Read our guide to learn about the top 10 cheapest car insurance companies in America and how you can secure low rates.
If you’re ready to compare the cheapest auto insurance companies, enter your ZIP code in the free online quote tool to compare multiple insurance companies in your area.
- USAA has the cheapest car insurance company in the United States
- Erie Insurance and Farm Bureau provide affordable car insurance in some states
- Metromile and Root Insurance provide pay-per-mile car insurance
What’s the cheapest auto insurance company?
The most affordable car insurance company varies by state, but USAA is one of the cheapest insurance companies overall. However, USAA auto insurance is only available to active and retired members of the U.S. Armed Forces and their immediate families.
So, which company is cheapest for most people in America? Let’s look at a table that shows the cheapest car insurance companies by state.
Most Affordable Car Insurance by State
| State | Cheapest company | Minimum Requirement Car Insurance Rates |
|---|---|---|
| Alabama | Geico | $22 |
| Alaska | Geico | $23 |
| Arizona | Geico | $23 |
| Arkansas | Southern Farm Bureau Insurance | $22 |
| California | Geico | $31 |
| Colorado | American National | $16 |
| Connecticut | Geico | $35 |
| Delaware | Geico | $47 |
| Florida | Geico | $59 |
| Georgia | Auto-Owners | $26 |
| Hawaii | Geico | $24 |
| Idaho | American National | $11 |
| Illinois | Pekin | $20 |
| Indiana | Pekin | $16 |
| Iowa | Western National | $14 |
| Kansas | State Farm | $27 |
| Kentucky | Kentucky Farm Bureau | $32 |
| Louisiana | Geico | $37 |
| Maine | Geico | $15 |
| Maryland | Geico | $47 |
| Massachusetts | State Farm | $17 |
| Michigan | Travelers | $9 |
| Minnesota | North Star | $22 |
| Mississippi | State Farm | $28 |
| Missouri | Columbia | $24 |
| Montana | State Farm | $18 |
| Nebraska | EMC | $15 |
| Nevada | Geico | $27 |
| New Hampshire | MMG | $17 |
| New Jersey | Amica | $45 |
| New Mexico | Central Insurance | $19 |
| New York | Main Street America | $48 |
| North Carolina | Geico | $23 |
| North Dakota | Nodak | $15 |
| Ohio | Erie | $18 |
| Oklahoma | Geico | $21 |
| Oregon | State Farm | $37 |
| Pennsylvania | Geico | $15 |
| Rhode Island | State Farm | $26 |
| South Carolina | American National | $18 |
| South Dakota | Farmers Mutual of Nebraska | $14 |
| Tennessee | Grange Insurance Company | $16 |
| Texas | Geico | $31 |
| Utah | Geico | $25 |
| Vermont | Union Mutual | $15 |
| Virginia | Geico | $25 |
| Washington | Grange Insurance Association | $27 |
| Washington, D.C. | Geico | $31 |
| West Virginia | Erie | $25 |
| Wisconsin | Geico | $17 |
| Wyoming | Geico | $14 |
Geico has also become one of the cheapest insurance companies in the United States. Other states have smaller companies as the most affordable, like Erie Insurance.
Overall, the cheapest company in each state is lower than the average. However, you can only get dirt cheap car insurance when you get liability-only coverage, the minimum coverage requirement.
Read More:
- Auto-Owners Specialty Insurance Company Car Insurance Review
- Top 10 Oregon Car Insurance Companies
- Top 10 Georgia Car Insurance Companies
- Iowa Car Insurance [Rates + Cheap Coverage Guide]
- Georgia Car Insurance [Rates + Cheap Coverage Guide]
- Florida Car Insurance [Rates + Cheap Coverage Guide]
- Farmers Mutual Insurance Company of Michigan Car Insurance Review
- Grange Property & Casualty Insurance Company Car Insurance Review
- Erie Insurance Company of New York Car Insurance Review
- Farmers vs. Geico: Best Car Insurance
- Alabama Car Insurance (Coverage, Companies, & More)
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What are the top 10 cheapest car insurance companies for full coverage?
If you’re not sure where to get cheap insurance, start with the top 10 insurance companies in the United States. Here’s a quick look at the average monthly rates from America’s leading car insurance companies.
Monthly Car Insurance Rates by Company
| Companies | Monthly Car Insurance Rates |
|---|---|
| Allstate | $318 |
| American Family | $224 |
| Farmers | $288 |
| Geico | $179 |
| Liberty Mutual | $398 |
| Nationwide | $229 |
| Progressive | $283 |
| State Farm | $235 |
| Travelers | $287 |
| USAA | $161 |
| National Average | $260 |
USAA has the most affordable insurance, but Geico is the cheapest for all other drivers in the United States, followed by American Family and Nationwide.
However, your rates could vary. The most affordable auto insurance companies determine your rates using several factors. Those factors include your age and driving record.
Check out the subsections below to see how various factors affect car insurance rates.
Which insurance company is the cheapest by age?
One of the most significant factors is age. Teen drivers usually pay expensive rates, but how much is insurance for senior drivers? Let’s see how age affects insurance rates.
| Companies | Monthly Car Insurance Rates of a Single 17-Year-Old Female | Monthly Car Insurance Rates of a Single 17-Year-Old Male | Monthly Car Insurance Rates of a Single 25-Year-Old Female | Monthly Car Insurance Rates of a Single 25-Year-Old Male | Monthly Car Insurance Rates of a Married 35-Year-Old Female | Monthly Car Insurance Rates of a Married 35-Year-Old Male | Monthly Car Insurance Rates of a Married 60-Year-Old Female | Monthly Car Insurance Rates of a Married 60-Year-Old Male |
|---|---|---|---|---|---|---|---|---|
| USAA | $401 | $449 | $166 | $177 | $129 | $128 | $121 | $121 |
| State Farm | $496 | $610 | $195 | $213 | $173 | $173 | $156 | $156 |
| Travelers | $776 | $1,071 | $194 | $208 | $182 | $183 | $171 | $173 |
| American Family | $500 | $678 | $191 | $225 | $184 | $185 | $166 | $168 |
| Progressive | $724 | $802 | $225 | $230 | $191 | $181 | $166 | $171 |
| Geico | $471 | $523 | $198 | $189 | $192 | $193 | $187 | $190 |
| Nationwide | $480 | $598 | $224 | $241 | $197 | $199 | $178 | $185 |
| Farmers | $710 | $762 | $246 | $253 | $213 | $213 | $195 | $204 |
| Allstate | $774 | $887 | $285 | $298 | $263 | $260 | $243 | $249 |
| Liberty Mutual | $968 | $1,143 | $330 | $375 | $317 | $321 | $287 | $307 |
Younger drivers pay at least three times more for car insurance, but drivers 25 and older pay significantly less than teens. Female drivers have cheaper car insurance rates, but male drivers have more expensive rates.
Drivers between 16 and 24 correlate to higher risks of filing car insurance claims, but drivers over 25 have cheaper insurance rates.
Which car insurance company is the most affordable by credit history?
Did you know your credit history affects your insurance rates? Car insurance companies provide more affordable rates with good credit, but poor credit produces more expensive rates.
How does credit history affect the top insurance companies in the nation?
Average Monthly Car Insurance Rates Based on Credit by Company
| Companies | Monthly Car Insurance Rates Based on Good Credit | Monthly Car Insurance Rates Based on Fair Credit | Monthly Car Insurance Rates Based on Poor Credit |
|---|---|---|---|
| USAA | $152 | $185 | $308 |
| State Farm | $181 | $238 | $413 |
| Geico | $203 | $249 | $355 |
| American Family | $224 | $264 | $372 |
| Nationwide | $244 | $271 | $340 |
| Progressive | $302 | $330 | $395 |
| Farmers | $306 | $325 | $405 |
| Allstate | $322 | $382 | $541 |
| Travelers | $338 | $362 | $430 |
| Liberty Mutual | $366 | $467 | $734 |
The most affordable insurance company for drivers with poor credit is Nationwide. State Farm car insurance is the cheapest for people with good and fair credit.
Does coverage limit affect the insurance rates?
Yes, it does. Higher coverage limits — or the maximum amount of money insured by a policy — result in higher rates for car insurance.
Let’s examine how coverage limits impact insurance rates at the best companies.
| Companies | Low Coverage Level (Minimum Coverage Limit) | Medium Coverage Level (50/100/50) | High Coverage Level (100/300/100) |
|---|---|---|---|
| USAA | $200 | $212 | $222 |
| Geico | $250 | $268 | $286 |
| State Farm | $255 | $272 | $288 |
| American Family | $281 | $295 | $285 |
| Nationwide | $283 | $287 | $292 |
| Progressive | $311 | $335 | $363 |
| Farmers | $327 | $347 | $375 |
| Travelers | $352 | $372 | $385 |
| Allstate | $386 | $408 | $428 |
| Liberty Mutual | $484 | $505 | $530 |
Geico is one of the cheapest companies for low and medium coverage limits. Meanwhile, American Family is the most affordable company for high coverage limits.
What insurance company has the cheapest rates by driving record?
The most effective way to get affordable car insurance is to keep a clean driving record. Speeding tickets, DUIs, and accidents can raise your rates.
Let’s review how traffic violations impact insurance rates at the top companies.
Average Monthly Car Insurance Rates Based on Driving Record by Company
| Companies | Monthly Car Insurance Rates Based on a Clean Driving Record | Monthly Car Insurance Rates With One Speeding Ticket | Monthly Car Insurance Rates With One Accident | Monthly Car Insurance Rates With One DUI |
|---|---|---|---|---|
| USAA | $161 | $183 | $210 | $292 |
| Geico | $179 | $220 | $266 | $406 |
| American Family | $224 | $252 | $310 | $361 |
| Nationwide | $229 | $259 | $283 | $379 |
| State Farm | $235 | $266 | $283 | $303 |
| Progressive | $283 | $334 | $398 | $331 |
| Travelers | $287 | $355 | $357 | $478 |
| Farmers | $288 | $340 | $377 | $393 |
| Allstate | $318 | $374 | $416 | $522 |
| Liberty Mutual | $398 | $475 | $517 | $634 |
DUIs and accidents generate the most expensive increases in car insurance. Speeding tickets don’t affect car insurance rates as much, but multiple speeding infractions can significantly raise rates.
Which smaller insurance companies provide more affordable rates?
Sometimes the best companies aren’t the cheapest. You can secure low prices at some of the small car insurance companies.
Let’s look at three insurance companies that provide cheap monthly rates.
Comparing Full Coverage vs, Liability-Only Car Insurance Rates by Small Car Insurance Company
| Companies | Full Coverage Car Insurance Rates | Liability-Only Car Insurance Rates |
|---|---|---|
| Erie Insurance | $115 | $42 |
| Farm Bureau | $131 | $39 |
| Auto-Owners | $132 | $40 |
Erie Insurance rates are the cheapest and more affordable than the USAA average. However, Erie Insurance isn’t available all over the United States. The Farm Bureau also provides the cheapest liability insurance rates.
Is pay-per-mile car insurance more affordable?
It depends on how much you drive. This type of insurance is known as pay-as-you-drive insurance. Metromile and Root Insurance could be cheaper for drivers, but they’ll have to limit their miles.
If you’ve searched for the “cheapest car insurance near me” online, you may have seen companies like Metromile or Root Insurance. These two companies provide coverage based on the number of miles you drive.
Read more:
How do you get cheaper insurance rates with discounts?
You’ll see discounts added to your car insurance policy when you finish up your quote. If you have good credit and a clean driving record, you can save up to 30% on car insurance.
Bundling your car insurance with other insurance products can save you an additional 10% and safety features on a car can provide at least 5%.
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Cheapest Auto Insurance: The Bottom Line
Cheap car insurance varies by state, driving record, age, credit, and other factors. Therefore, your rates will differ when you get a quote.
Expensive rates are associated with higher chances of filing insurance claims. However, you should shop around until you find a company that provides cheap rates.
Now that you know more about the cheapest car insurance companies, use our free online quote tool to compare quotes from multiple companies near you.
Compare quotes from the top car insurance companies and save
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Justin Wright
Licensed Insurance Agent
Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.