There is no single cheapest car insurance provider for everyone. This is because every insurer uses a different formula to calculate its premiums for customers. Some auto insurance companies offer discounts that others do not, and rates vary by city and state. Because of this, comparing car insurance quotes from several providers is the best way to find cheap auto insurance.

But where should you start? This guide discusses the best cheap car insurance for several types of drivers and provides tips for lowering your auto insurance rates. You can also check our list of the best car insurance companies to get started.

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In This Review:

    Cheapest Car Insurance Companies

    While no company is the cheapest insurer for every driver, some companies tend to offer lower rates on average than others. The table below lists average rate estimates for the cheapest car insurance companies for a 35-year-old driver with good credit history and a clean driving record.

    Cheapest Car Insurance Companies

    Average Annual Cost Estimate

    USAA

    $1,013

    Erie

    $1,113

    Auto-Owners

    $1,229

    State Farm

    $1,339

    Geico

    $1,352

    Progressive

    $1,397

    Nationwide

    $1,533

    Travelers

    $1,617

    Farmers

    $2,032

    The Hartford

    $2,166

    Allstate

    $2,430

    We’ve highlighted five of the most affordable auto insurance providers below.

    USAA: Best For Military Members

    USAA is a nationwide insurer, though its coverage is not available to all drivers. To be eligible for a policy with USAA, you must be a member of the U.S. armed services or have a direct family member (parent, grandparent, or spouse) who has an account with USAA.

    For those who are eligible, USAA offers every type of standard car insurance–including bodily injury liability, property damage liability, comprehensive, collision, underinsured/uninsured motorist, medical payments, and personal injury protection. The company also provides add-on insurance options such as roadside assistance, accident forgiveness, rental car coverage, and car replacement assistance.

    USAA tends to offer the best rates for many types of drivers and provides the following car insurance discounts:

    USAA Auto Insurance Discounts

    Good student discount

    Available to teen drivers with good grades

    Good driver discount

    Available to drivers with clean driving records (no recent accidents or DUIs)

    Military garage discount

    Available to drivers who garage their vehicles on military installations

    Bundling discount

    Available to those who bundle their auto insurance policies with homeowners or renters insurance products from USAA

    New vehicle discount

    Available for cars that are less than three years old

    Anti-theft discount

    Available for cars with anti-theft devices

    Deployment discount

    Available for military members who store their vehicles while on deployment

    Loyalty discount

    Available for members whose parents have USAA policies

    Read more about the provider in our full USAA insurance review.

    Erie: Good Customer Service

    Erie is a regional provider known for offering comprehensive coverage options and competitive rates. Coverage from Erie is only available to drivers in the following locations:

    District of Columbia

    Illinois

    Indiana

    Kentucky

    Maryland

    New York

    North Carolina

    Ohio

    Pennsylvania

    Tennessee

    Virginia

    West Virginia

    Wisconsin

    In states where it operates, Erie has a positive reputation for customer service and comprehensive coverage. You can purchase all of the standard types of auto insurance through Erie. Discount offers include:

    Erie Auto Insurance Discounts

    Rate lock

    Premium rates are locked in–even if you file a claim–and will only change if you add or remove a vehicle or after you move

    Multi-policy discount

    Available to those with multiple Erie insurance policies (such as life insurance or home insurance)

    Vehicle storage discount

    Available for drivers who store their vehicles for at least 90 consecutive days without using them

    Safety discount

    Available for cars with safety features such as factory-installed airbags, anti-theft devices, and anti-lock brakes

    Annual payment discount

    Available if you pay for your entire premium up front

    Youthful driver discount

    Available for young, unmarried drivers with good credit who live with their parents

    College credit

    Offered to students who live away from home while attending college and do not have access to the insured vehicle while away at school

    Auto-Owners: Good For Affordable Rates

    Auto-Owners is another well-regarded regional provider. Policies are available through individual insurance agents in the following states:

    Alabama

    Arizona

    Arkansas

    Colorado

    Florida

    Georgia

    Idaho

    Illinois

    Indiana

    Iowa

    Kansas

    Kentucky

    Maine

    Massachusetts

    Michigan

    Minnesota

    Missouri

    Nebraska

    New Hampshire

    North Carolina

    North Dakota

    Ohio

    Pennsylvania

    South Carolina

    South Dakota

    Tennessee

    Utah

    Vermont

    Virginia

    Wisconsin

    You can purchase any of the main types of auto insurance through Auto-Owners, as well as home, life, and business policies. Auto-Owners discount offers include:

    Auto-Owners Auto Insurance Discounts

    Multi-policy discount

    Available for drivers with home, life, or business policies with Auto-Owners

    Payment history discount

    Offered to drivers who paid their premiums on time for the past 36 months

    Paid-in-full discount

    Available for those who pay their entire annual premiums up front

    Green discount

    Available for customers who enroll in paperless billing

    Advance quote discount

    Available for drivers who request premium quotes before purchasing policies

    Multi-car discount

    Available for policyholders who insure more than one vehicle with Auto-Owners

    Safety features discount

    Available for vehicles with safety features such as anti-lock brakes, airbags, and anti-theft devices

    Favorable loss history discount

    Offered to drivers who have not filed many insurance claims in the past

    Good student discount

    Offered to students who maintain an average of “B” or better

    Student away at school discount

    Available to students who attend school more than 100 miles from home and do not bring their vehicles

    Teen driver monitoring discount

    Available to drivers who install GPS devices that track driving behaviors (fast braking, late-night driving, hard cornering, and speeding)

    State Farm: Best For Student Drivers

    State Farm is a national insurer available to every driver. Policies are sold through local agents who can tailor insurance coverage to individual needs and budgets. State Farm discount offers include:

    State Farm Auto Insurance Discounts

    Accident-free discount

    Available for drivers who maintain policies with State Farm for three years without filing any claims

    Defensive driving discount

    Available for drivers who complete an approved defensive driving class

    Good student discount

    Offered to students between 16 and 25 years old who maintain a “B” average or higher

    Good driving discount

    Available to drivers who have gone three or more years without accidents or moving violations

    Driver training discount

    Available to drivers under 21 who complete an approved driver education course

    Student away at school discount

    Available to drivers under 25 who move away from home for college and only use the insured vehicle while on break from school

    State Farm also offers programs to help customers save even more: Drive Safe & SaveTM and Steer Clear®. Drive Safe & Save monitors driving habits through your smartphone and provides premium discounts for safe driving practices. Steer Clear is a training program for drivers under 25 that offers discounts to drivers who enroll in and complete it.

    For more information about this insurer, check out our complete State Farm insurance review.

    Geico: Best Overall Provider

    Geico is one of the best-known national insurers and offers every standard type of car insurance policy. Geico has some of the highest coverage limits of any insurer. While our quote estimates show Geico as the fifth-cheapest insurer on average, it can often be the cheapest provider for many drivers.

    Geico discount offers include:

    Geico Auto Insurance Discounts

    Vehicle equipment discounts

    Offers discounts for airbags, anti-lock brakes, anti-theft systems, daytime running lights, and new vehicles

    Accident-free discount

    Available to drivers who go accident-free for at least five years

    Seat belt discount

    Offers a discount for medical payment insurance and personal injury protection policies for those who always buckle up

    Defensive driving discount

    Available to drivers who complete an approved defensive driving class

    Driver education discount

    Available to young drivers who complete a driver education class

    Good student discount

    Available to full-time students with good academic records

    Driver affiliation discounts

    Available to drivers who are government employees, enlisted in the armed services, or part of one of Geico’s 500-plus affiliate organizations

    Multi-vehicle discount

    Offers a discount for customers who insure multiple cars through Geico

    Multi-policy discount

    Offers a discount for customers who also have life, homeowners, renters, condo, or mobile home policies with Geico

    Find out more about the company in our Geico insurance review.

    Cheapest Car Insurance For Young Drivers: USAA

    Younger drivers (under 25) often see some of the highest rates for full coverage car insurance. These drivers are less experienced and file more claims on average. If you’re searching for the cheapest rates as a young driver, consider the following insurers:

    Car Insurance Company

    Annual Rate Estimate

    USAA

    $1,422

    Geico

    $1,627

    State Farm

    $1,765

    Progressive

    $2,029

    Nationwide

    $2,293

    Allstate

    $2,959

    Cheapest Car Insurance For Drivers With Poor Credit: USAA

    A poor credit score can mean increased car insurance premiums. Using credit score to determine auto insurance rates is prohibited in California, Hawaii, Massachusetts, Michigan, and Washington.

    Car Insurance Company

    Annual Rate Estimate

    USAA

    $1,807

    Geico

    $2,077

    Nationwide

    $2,227

    Progressive

    $2,514

    State Farm

    $3,616

    Allstate

    $3,765

    Cheapest Car Insurance For High-Risk Drivers: State Farm

    It can be hard for drivers with recent at-fault accidents or DUIs to find affordable car insurance coverage. Driving history is one of the most consequential factors used to determine your rates.

    Cheapest Car Insurance Estimates For Drivers With A Recent DUI

    Car Insurance Company

    Annual Rate Estimate

    State Farm

    $1,998

    Erie Insurance

    $2,034

    Progressive

    $2,106

    USAA

    $2,209

    American Family

    $2,433

    Travelers

    $2,649

    Recent accidents may not raise your premiums quite as much as a DUI, but they can still have a significant impact on your auto insurance bill.

    Cheapest Car Insurance Estimates For Drivers With A Recent Car Accident

    Car Insurance Company

    Annual Rate Estimate

    USAA

    $1,428

    State Farm

    $1,671

    Geico

    $2,427

    Progressive

    $2,471

    Nationwide

    $2,545

    Allstate

    $3,798

    Cheapest Auto Insurance Rates In Your State

    According to our cost research, the national average cost for full coverage car insurance is $1,732 per year. Car insurance rates are personalized, so you may end up with a quote that is either higher or lower than the national average depending on several factors. The table below includes full coverage car insurance estimates by state along with the cheapest provider in each state. 

    State

    Cheapest Provider

    Average Annual

    Rate Estimate

    Alabama

    USAA

    $809

    Alaska

    USAA

    $893

    Arizona

    Geico

    $1,099

    Arkansas

    USAA

    $869

    California

    USAA

    $1,425

    Colorado

    USAA

    $1,070

    Connecticut

    Geico

    $972

    Delaware

    State Farm

    $1,094

    District of Columbia

    USAA

    $812

    Florida

    Geico

    $1,565

    Georgia

    USAA

    $1,107

    Hawaii

    Geico

    $851

    Idaho

    USAA

    $657

    Illinois

    Country Financial

    $1,044

    Indiana

    USAA

    $695

    Iowa

    State Farm

    $740

    Kansas

    USAA

    $776

    Kentucky

    Geico

    $922

    Louisiana

    Farm Bureau

    $1,482

    Maine

    Auto-Owners

    $535

    Maryland

    USAA

    $845

    Massachusetts

    Geico

    $1,589

    Michigan

    Progressive

    $1,682

    Minnesota

    USAA

    $942

    Mississippi

    USAA

    $825

    Missouri

    USAA

    $719

    Montana

    USAA

    $813

    Nebraska

    Nationwide

    $929

    Nevada

    USAA

    $1,357

    New Hampshire

    Auto-Owners

    $602

    New Jersey

    Progressive

    $1,326

    New Mexico

    USAA

    $874

    New York

    Progressive

    $1,310

    North Carolina

    Erie Insurance

    $927

    North Dakota

    USAA

    $671

    Ohio

    USAA

    $672

    Oklahoma

    USAA

    $893

    Oregon

    State Farm

    $961

    Pennsylvania

    Geico

    $1,135

    Rhode Island

    USAA

    $1,057

    South Carolina

    USAA

    $1,016

    South Dakota

    Nationwide

    $968

    Tennessee

    USAA

    $755

    Texas

    Texas Farm Bureau

    $1,010

    Utah

    USAA

    $872

    Vermont

    USAA

    $782

    Virginia

    USAA

    $782

    Washington

    USAA

    $760

    West Virginia

    USAA

    $903

    Wisconsin

    USAA

    $602

    Wyoming

    American National

    $809

    How To Lower Your Car Insurance Rates

    Even after you find the cheapest car insurance provider for your vehicle, it’s always nice to lower your car insurance payments even further. If you are getting especially high auto insurance quotes or you’d just like to save money every month, there are a few strategies you can use to achieve cheaper car insurance rates.

    #1 Shop Around

    It never hurts to consider other auto insurance companies if you think you’re paying too much for your current policy. Many car insurance providers even offer discounts if you switch from another provider. The only way you will know which company offers the cheapest car insurance for you is to compare car insurance offers.

    #2 Take A Defensive Driving Class

    Defensive driving classes are offered in every state, and some states even require insurers to provide discounts to drivers who complete a state-approved course. The length of these courses varies from state to state, but they are typically between six and eight hours long. A driving class can be especially helpful in lowering rates if you’ve recently gotten a speeding ticket.

    #3 Bundle Policies

    If you have homeowners insurance, rental insurance, or insurance for anything other than your car, it may be worth purchasing these policies from the same company that handles your car insurance if possible. Nearly all insurers offer discounts for policy bundling.

    Insuring multiple vehicles with the same company can also lead to discounts. You can often find savings if every driver in your household is covered by the same policy.

    #4 Review Discount Offers

    Review the discount offers provided by your insurer. Many companies offer special programs that monitor driving habits and provide discounts to safe drivers. If you don’t drive very often, you may find steep discounts with insurers that offer such programs.

    #5 Improve Your Credit Score

    Except in states where it is prohibited, insurers use your credit score to set your rate. If you improve your credit score, you can decrease your car insurance bills. Try to pay all of your bills on time and in full.

    #6 Reassess Your Policy After Significant Events

    There are a number of life events that can have a big impact on your insurance costs. Whenever your circumstances change, it’s a good idea to look around when you shop car insurance policies. You may find that a different insurer has the cheapest car insurance for you in your new situation. Times to reassess your insurance coverage include:

    • After a move
    • After a marriage or divorce
    • After a significant change in your credit score
    • As you get older, particularly after you turn 25
    • After you buy a house

    #7 Reduce Coverage

    You’re required to carry state minimum coverage car insurance, and we generally recommend drivers maintain comprehensive and collision coverage as well. However, you can drop extra coverage to reduce your premium. As your vehicle ages, comprehensive and collision policies may not be as useful.

    What Determines Car Insurance Rates?

    While every provider will offer different rates for your car insurance policy, most use the same factors to calculate premiums. In general, how much your car insurance costs depends on the following:

    • Age
    • Gender
    • Marital status
    • City and state
    • Vehicle age, mileage, and safety features
    • Credit score
    • Driving history

    The cheapest car insurance premiums are typically offered to drivers over the age of 25 with a clean driving record and high credit score. Those who live in cities with lower theft and accident rates will also see cheaper premiums. State insurance regulations, including which coverage is required, can impact rates as well.

    Frequently Asked Questions

    • How do you get cheap car insurance?

      The easiest way to get low-cost car insurance is to compare your options. Each insurance provider will quote you differently since costs are personalized to your situation. Reaching out to multiple car insurance companies will allow you to find the best cheap car insurance coverage for your situation.

      You can also get cheap insurance by looking for discounts like bundling discounts or low-mileage discounts.

    • What is an insurance quote?

      An insurance quote is an estimate of how much you can expect to pay for insurance coverage for a specific provider. Insurance quotes are not offers for insurance or an insurance contract. 

    • Who has the best car insurance coverage?

      Based on our research, Geico and USAA offer the best car insurance coverage for drivers. Both companies provide drivers with affordable car insurance coverage and a wide variety of discounts.

    • At what age does car insurance get cheaper?

      According to our research, rates drop significantly after the age of 25. You will then see your insurance costs go down year by year until the age of 70, when they begin to rise again.

    How We Rate Insurers

    Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

    • Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest auto insurance provider for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
    • Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our rankings also take into account additional services and benefits like roadside assistance.
    • Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
    • Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider customer satisfaction with the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.

    *Data accurate at time of publication.