Key Takeaways
- The lowest car insurance rates start at $36 per month for minimum coverage and $141 for full-coverage policies.
- The best ways to save money on car insurance are determining coverage needs before buying, reviewing coverage regularly, comparing providers, improving your credit score and taking advantage of discounts.
- The cheapest coverage might not always be the best for you, so it’s important to research thoroughly.
Cheap car insurance doesn’t have to mean mediocre coverage. We’ve analyzed rates from 97 car insurance companies to help you find the lowest rates, from reputable companies, by coverage, age, driver profile and state.
Learn more about our methodology and editorial guidelines.
Top 10 Cheapest Car Insurance Companies
Here are the 10 cheapest national and regional insurers below from our list of the most reputable companies.
| Cheapest Car Insurance Company* | Average Monthly Minimum-Coverage Rate | Average Monthly Full-Coverage Rate |
|---|---|---|
| Central Insurance | $36 | $156 |
| USAA | $39 | $145 |
| Auto-Owners | $42 | $158 |
| Country Financial | $48 | $163 |
| Geico | $52 | $166 |
| Erie Insurance | $55 | $158 |
| Travelers | $58 | $141 |
| Progressive | $72 | $194 |
| State Farm | $72 | $212 |
| Nationwide | $73 | $172 |
Note that minimum-coverage amounts and required types of coverage vary by state, but you’ll likely find that your state requires liability coverage for property damage and bodily injury. A full-coverage auto policy includes liability, collision and comprehensive coverage.
Cheapest Car Insurance by Coverage
Coverage level plays a large part in determining car insurance rates, with liability-only policies costing less than full-coverage insurance.
Most Affordable Liability-Only Car Insurance
National Minimum-Liability Average: $869 per year
Among nationally available providers, USAA offers the cheapest minimum liability car insurance at 46% below average. If you don’t have any military affiliation, Geico will be the most affordable option.
| Cheap National Car Insurance Provider | Average Annual Minimum Car Insurance Rates | Average Annual Savings |
|---|---|---|
| USAA | $471 | $398 |
| Geico | $620 | $249 |
| Travelers | $691 | $178 |
| Progressive | $859 | $10 |
| State Farm | $861 | $8 |
Most Affordable Full-Coverage Car Insurance
National Full-Coverage Average: $2,681 per year
Travelers is the cheapest option for full-coverage car insurance at 37% cheaper than the national average.
| Cheap National Car Insurance Provider | Average Annual Full-Coverage Car Insurance Rates | Average Annual Savings |
|---|---|---|
| Travelers | $1,692 | $989 |
| USAA | $1,741 | $940 |
| Geico | $1,995 | $686 |
| Nationwide | $2,063 | $618 |
| Progressive | $2,326 | $355 |
Cheapest Car Insurance by Age
Typically, drivers under the age of 25 and drivers over 55 years old pay a higher premium than other ages, as insurance companies consider these groups a higher risk to insure due to statistically higher rates of accidents.
Below, you can discover the cheapest car insurance for different driver profiles, including teens (those between 16 and 19 years old), young adults (those between 21 and 25 years old), adults (between 35 and 55 years old) and seniors (those 65 to 75 years old). Rates in the tables below are based on averages for those age groups.
Did You Know?
According to the National Highway Traffic Safety Administration, in 2021, drivers aged 20 years old and under made up 5.1% of licensed drivers in the United States but accounted for 12.6% of drivers in all fatal crashes.
Cheap Car Insurance for Teens (16 to 19 Years Old)
National Average Minimum-Coverage Rate for Teens: $2,706 per year
National Average Full-Coverage Rate for Teens: $5,769 per year
Teen drivers who are in the military or are direct family members of someone in the military will find the cheapest minimum-coverage with USAA, while those without military affiliation will save the most with Travelers. Travelers also offers the most affordable full-coverage for all teen drivers.
Cheapest Minimum Coverage for Teens
Cheapest Full Coverage for Teens
| Cheap National Car Insurance Provider | Average Annual Minimum-Coverage Rate |
|---|---|
| USAA | $1,530 |
| Travelers | $1,696 |
| Geico | $1,797 |
| State Farm | $2,645 |
| Nationwide | $2,668 |
| Cheap National Car Insurance Provider | Average Annual Full-Coverage Rate |
|---|---|
| Travelers | $4,030 |
| USAA | $4,042 |
| Geico | $4,391 |
| Nationwide | $4,596 |
| State Farm | $5,833 |
Cheap Car Insurance for Young Adults (21 to 25 Years Old)
National Average Minimum-Coverage Rate for Young Adults: $1,225 per year
National Average Full-Coverage Rate for Young Adults: $3,628 per year
If you’re 21 to 25 years old or under and are enlisted, a veteran or a family member of someone who served in the military, you can expect to get the best minimum-coverage car insurance rates from USAA. If not, Geico is the cheapest national minimum-coverage provider. Travelers is the cheapest provider of full-coverage car insurance for this age group.
Cheapest Minimum Coverage for Young Adults
Cheapest Full Coverage for Young Adults
| Cheap National Car Insurance Provider | Average Annual Minimum-Coverage Rate |
|---|---|
| USAA | $661 |
| Geico | $845 |
| Travelers | $888 |
| Nationwide | $1,187 |
| Progressive | $1,194 |
| Cheap National Car Insurance Provider | Average Annual Full-Coverage Rate |
|---|---|
| Travelers | $2,307 |
| USAA | $2,396 |
| Geico | $2,650 |
| Nationwide | $2,743 |
| Progressive | $3,318 |
Cheap Car Insurance for Adults (35 to 55 Years Old)
National Average Minimum-Coverage Rate for Adults: $846 per year
National Average Full-Coverage Rate for Adults: $2,540 per year
The cheapest minimum-liability car insurance for adults is offered by USAA for military members and Geico for all other adult drivers. For full coverage, Travelers is the most affordable option.
Cheapest Minimum Coverage for Adults
Cheapest Full Coverage for Adults
| Cheap National Car Insurance Provider | Average Annual Minimum-Coverage Rate |
|---|---|
| USAA | $463 |
| Geico | $623 |
| Travelers | $682 |
| Nationwide | $798 |
| Progressive | $830 |
| Cheap National Car Insurance Provider | Average Annual Full-Coverage Rate |
|---|---|
| Travelers | $1,656 |
| USAA | $1,694 |
| Nationwide | $1,901 |
| Geico | $1,992 |
| State Farm | $2,182 |
Cheap Car Insurance for Seniors (65 to 75 Years Old)
National Average Minimum-Coverage Rate for Seniors: $924 per year
National Average Full-Coverage Rate for Seniors: $2,606 per year
If you are aged 65 to 75 and are affiliated with the military, you can expect the best minimum-coverage car insurance rates with USAA. If you aren’t affiliated with the military, Geico has the cheapest minimum-coverage rates. Travelers offers the cheapest full-coverage car insurance for this age group, regardless of military affiliation.
Cheapest Minimum Coverage for Seniors
Cheapest Full Coverage for Seniors
| Cheap National Car Insurance Provider | Average Annual Minimum-Coverage Rate |
|---|---|
| USAA | $560 |
| Geico | $704 |
| Travelers | $736 |
| Nationwide | $825 |
| Progressive | $917 |
| Cheap National Car Insurance Provider | Average Annual Full-Coverage Rate |
|---|---|
| Travelers | $1,753 |
| USAA | $1,840 |
| Nationwide | $1,871 |
| Geico | $2,113 |
| Progressive | $2,302 |
Cheapest Car Insurance for High-Risk Drivers
Insurance companies classify certain drivers as high risk, resulting in higher premiums. Below, we’ll detail the cheapest car insurance companies for high-risk drivers, including those with bad credit, a DUI, an accident and a speeding ticket.
Did you know?
Most driving violations stay on your record for up to five years at most from the time of the violation, but this cutoff point depends on the provider. More serious violations like DUIs may affect your rates for up to 10 years.
Cheapest Car Insurance With Bad Credit
National Average Minimum-Coverage Rate for Bad Credit: $3,213 per year
National Average Full-Coverage Rate for Bad Credit: $5,358 per year
USAA and Geico have the cheapest minimum-coverage insurance for drivers with bad credit, while Nationwide offers the most affordable full coverage.
Cheapest Minimum Coverage With Bad Credit
Cheapest Full Coverage With Bad Credit
| Cheap National Car Insurance Provider | Average Annual Minimum-Coverage Rate |
|---|---|
| USAA | $812 |
| Geico | $970 |
| Travelers | $1,199 |
| Nationwide | $1,280 |
| Progressive | $1,281 |
| Cheap National Car Insurance Provider | Average Annual Full-Coverage Rate |
|---|---|
| Nationwide | $2,762 |
| Travelers | $2,825 |
| Geico | $2,891 |
| USAA | $3,161 |
| Progressive | $3,612 |
*All costs provided are based on averages for a 35-year-old driver with no driving violations who is insuring a 2023 Toyota Camry.
Cheapest Car Insurance With a Recent DUI
National Average Minimum-Coverage Rate With a DUI: $1,548 per year
National Average Full-Coverage Rate With a DUI: $3,874 per year
USAA offers the cheapest minimum-coverage rates for military-affiliated drivers who’ve recently had a DUI, while Travelers is cheapest both for non-military minimum coverage and for full coverage.
Cheapest Minimum Coverage With DUI
Cheapest Full Coverage With DUI
| Cheap National Car Insurance Provider | Average Annual Minimum-Coverage Rate |
|---|---|
| USAA | $915 |
| Travelers | $968 |
| State Farm | $1,008 |
| Progressive | $1,052 |
| Geico | $1,520 |
| Cheap National Car Insurance Provider | Average Annual Full-Coverage Rate |
|---|---|
| Travelers | $2,345 |
| Progressive | $2,696 |
| State Farm | $2,728 |
| USAA | $2,852 |
| Geico | $3,690 |
*All costs provided are based on a 35-year-old driver with good credit who is insuring a 2023 Toyota Camry.
Read more: How Does a DUI or DWI Affect Car Insurance Rates?
Cheapest Car Insurance With an Accident
National Average Minimum-Coverage Rate With an Accident: $1,294 per year
National Average Full-Coverage Rate With an Accident: $3,591 per year
If you’ve had an accident within the last three years and you’re affiliated with the military, USAA will likely be your cheapest option for minimum-coverage car insurance — if you don’t have military affiliation, Travelers is your most affordable choice. Travelers is also the cheapest option for full coverage.
Cheapest Minimum Coverage With Accident
Cheapest Full Coverage With Accident
| Cheap National Car Insurance Provider | Average Annual Minimum-Coverage Rate |
|---|---|
| USAA | $692 |
| Travelers | $889 |
| State Farm | $1,050 |
| Geico | $1,084 |
| Nationwide | $1,352 |
| Cheap National Car Insurance Provider | Average Annual Full-Coverage Rate |
|---|---|
| Travelers | $2,148 |
| USAA | $2,358 |
| State Farm | $2,807 |
| Nationwide | $3,031 |
| Geico | $3,183 |
*All costs provided are based on a 35-year-old driver with good credit who is insuring a 2023 Toyota Camry.
Read More: What Is Accident Forgiveness?
Cheapest Car Insurance With a Speeding Ticket
National Average Minimum-Coverage Rate With a Speeding Ticket: $1,099 per year
National Average Full-Coverage Rate With a Speeding Ticket: $3,235 per year
For those with speeding tickets on their record, USAA will be the cheapest option if you have military affiliation. For everyone else, Travelers is the most affordable option.
Cheapest Minimum Coverage With Speeding Ticket
Cheapest Full Coverage With Speeding Ticket
| Cheap National Car Insurance Provider | Average Annual Minimum-Coverage Rate |
|---|---|
| USAA | $574 |
| Travelers | $816 |
| Geico | $835 |
| State Farm | $974 |
| Nationwide | $1,155 |
| Cheap National Car Insurance Provider | Average Annual Full-Coverage Rate |
|---|---|
| USAA | $2,067 |
| Travelers | $2,083 |
| Nationwide | $2,554 |
| Geico | $2,574 |
| State Farm | $2,644 |
*All costs provided are based on a 35-year-old driver with good credit who is insuring a 2023 Toyota Camry.
Read more: Best Speeding Ticket Car Insurance
Cheapest Car Insurance by State
The table below showcases the cheapest car insurance premiums overall in each state regardless of the coverage level chosen. Rates are based off a 35-year-old driver with good credit and no driving violations who is insuring a 2023 Toyota Camry.
Calculate the Cost of Car Insurance
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How To Get the Cheap Car Insurance Rates
We’ve provided some simple methods that can help you save when shopping for car insurance.
Determine Your Needs Before You Buy
You should know what coverage you need so you don’t overpay for insurance. You’re required to have collision and comprehensive coverage if you have an outstanding loan, but even so, the question of how much liability car insurance to get still remains. While the decision is ultimately based on your tolerance for risk, it mostly comes down to these considerations:
- Location: If you’re in a densely populated area with a lot of traffic, consider getting collision coverage and a higher liability limit so you’re financially protected in the event of an accident.
- Driving habits: The more you drive and the more trips you take, the higher your chances are of being in a car accident. If you drive a lot, collision coverage could be helpful.
- Your financial situation: If you can afford to pay out-of-pocket for possible damages to your vehicle, you’ll likely only need liability coverage.
- Your vehicle: If you have a vehicle over 10 years old, you’ll likely not need full-coverage car insurance due to the low value of the vehicle.
Review Your Coverage Regularly
According to the Bureau of Labor Statistics’ (BLS) consumer price index (CPI), the total cost for motor vehicle insurance increased by about 52% between the first halves of 2020 and 2024. To keep a low rate, we recommend comparing your policy to new options when renewal is coming up. It’s also a good idea to compare rates when you have major life changes (like marriage) to avoid these rising costs as much as possible.
Gather Quotes from Multiple Providers
It can be tempting to go with the first option that seems like a good deal, but comparing multiple options can get you the lowest price. There are three options for getting quotes: talking to insurance agents one-on-one, using an independent insurance agency to compare quotes or getting pricing online.
Improve Your Credit Score
In states that consider credit when determining premiums, a bad credit score can increase pricing by almost double, based on our cost analysis. Taking measures such as paying debts on time, keeping the balances on credit cards low and making sure to keep your oldest account can all help improve your credit score and get you lower rates over time.
Take Advantage of Discounts and Incentives
There are many common car insurance discount options available with most major companies that may help you save:
- Bundling: You can save a large sum on car insurance when bundling policies, and you’ll get the biggest discounts with a home and auto insurance bundle.
- Multi-Car: With a multi-car insurance policy, you can save up to 25% on premiums.
- Telematics Programs: With either a plug-in device or mobile app that tracks your speed, braking and other factors, you can save up to 40% on your car insurance for safe driving habits. Keep in mind that some telematics programs penalize bad habits with higher rates.
- Defensive Driving Course: Taking a defensive driving course or passing a program can save you a minimum of 5% of your policy and as much as 10%.
Choosing a Cheaper Vehicle To Insure
If you’re in the market for getting a new car, you should consider getting a vehicle that gets you lower insurance rates. For cheap rates, avoid luxury vehicles and electric cars due to their high price tag and sticking to base models of affordable car brands.
Risks of Getting Cheap Car Insurance
Buying the lowest-price policy available from the cheapest provider can save you money, but it may come with a few risks:
- Minimum coverage may be more expensive: Going without higher coverage limits can be risky if you can’t afford accident costs, especially if you drive a lot. Lower limits may not cover damages to your car or other parties’ injuries. Additionally, if the other party sues, you’d be responsible for any associated expenses.
- Poor customer service and transparency: While car insurance from a reputable provider may cost you more, cheaper providers may lack the customer support and experience you’ll find from a well-established company.
- Slow claims processing: Some car insurance companies may take longer to process a claim than others. You may be without a vehicle during this time, which can be a major headache. A company that processes claims slowly could cause more issues than the savings are worth.
- Fewer resources and tools: Larger companies offer mobile apps and online services that can make the entire insurance experience more convenient. Budget providers may lack some of these tools.
- Fewer coverage options: Some companies with low rates may not offer add-ons like roadside assistance and rental car reimbursement. With add-ons, you’ll have more choices available to get you the coverage you want and need.
“Major factors that drivers should consider when comparing car insurance quotes are the types of coverage — including liability, collision, comprehensive and uninsured motorist coverage — policy limits, deductibles, an insurer’s financial strength and the quality and reputation of its claims service.”
Frequently Asked Questions About Cheap Car Insurance
Below are some frequently asked questions pertaining to the cheapest car insurance:
USAA, Geico and Travelers offer both the cheapest minimum-coverage and full-coverage auto insurance rates, on average. However, the cheapest company for your needs will depend on factors such as your age, risk factors, state of residence and more.
Minimum–coverage policies, which only satisfy your state’s minimum insurance requirements, are the cheapest type of car insurance. However, these policies offer significantly less financial protection in the event of an accident than full-coverage or higher liability limits.
Those who are 55 years old tend to pay the lowest rates — no matter what driver profile they have — at an average rate of $804 per year for minimum coverage and $2,375 per year for full coverage.
Geico tends to be cheaper for most drivers than Progressive, based on our research. However, Progressive tends to have favorable rates for drivers in high-risk categories such as those with recent DUIs, accidents, tickets or poor credit (depending on the state you live in).
How We Determined the Cheapest Car Insurance Providers
We based our national rankings on the average car insurance costs of a 35-year-old driver with good credit and a clean driving record for both minimum and full coverage. Coverage for liability estimates are based on minimum requirements in each state, and full-coverage estimates are based on a 50/100/50 policy that includes:
- $50,000 in bodily injury coverage per person
- $100,000 in bodily injury coverage per accident
- $50,000 in property damage coverage per accident
- $500 deductible
In the spirit of quality control, we filtered out insurance providers that don’t meet the standards we uphold for our readers. Every company you see mentioned in this article has been thoroughly researched, evaluated and approved by our insurance researchers.
How We Vetted and Ranked U.S. Car Insurance Providers
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Cost and Discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities are both taken into consideration.
- Industry Standing (20% of total score): Our research team considers market share, ratings from industry experts and years in business when giving this score.
- Customer Experience (15% of total score): This score is based on volume of complaints reported by the National Association of Insurance Commissioners (NAIC) and customer satisfaction ratings reported by J.D. Power. We also consider the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements score highest in this category.
Our credentials:
- 800 hours researched
- 130+ companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
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