The Cheapest Car Insurance Companies (August 2024)
The Cheapest Car Insurance Companies (August 2024)
Best cheap car insurance for you
- Farm Bureau: $46/mo
- State Farm: $50/mo
- American Family: $61/mo
- Geico: $61/mo
- Progressive: $66/mo
- Travelers: $70/mo
- Nationwide: $80/mo
- Amica: $91/mo
- Allstate: $96/mo
- USAA*: $33/mo
Rates are for a liability-only policy.
*USAA is only available to military members, veterans and their families.*
Cheapest full coverage insurance: State Farm
State Farm has the best cheap full coverage auto insurance, at $124 per month.
That's $40 per month cheaper than the national average. It's also much cheaper than any other major companies. State Farm is $36 per month less than the second-cheapest companies, American Family and Travelers.
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Affordable full coverage quotes
| Company | Monthly rate | |
| State Farm | $124 | |
| American Family | $160 | |
| Travelers | $160 | |
| Farm Bureau | $161 | |
| Geico | $161 | |
To help get the most affordable auto insurance quotes 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.
Best cheap liability-only insurance: Farm Bureau
Farm Bureau has the cheapest liability-only insurance quotes.
At $46 per month, a policy from Farm Bureau costs $18 per month less than the national average.
State Farm also has affordable liability-only quotes, at $50 per month.
Cheapest liability-only
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Low cost liability insurance
| Company | Monthly rate | |
| Farm Bureau | $46 | |
| State Farm | $50 | |
| American Family | $61 | |
| Geico | $61 | |
| Progressive | $66 | |
Liability-only insurance is typically the cheapest coverage you can buy, but it isn't the right choice for everyone.
That's because it only includes the minimum amount of coverage required by your state.
A liability-only policy typically pays for injuries or damage you cause to another driver. And the coverage limits aren't usually high enough to pay the full cost after a serious accident.
In addition, liability-only coverage doesn't protect your car. That's why most lenders require you to get a full coverage policy with comprehensive and collision coverage if you have a car loan or lease. You should also consider these coverages if your car is less than eight years old or worth more than $5,000.
It's also important to consider customer service when shopping for car insurance. It may be worth it to pay a little more for a company that will take good care of you after a crash.
Companies with a ValuePenguin editor's rating of 4 stars or higher typically offer the best combination of affordable rates and reliable service.
Cheapest car insurance for teens: Farm Bureau and State Farm
Farm Bureau has the most affordable insurance for teens, at $131 per month for a liability-only policy.
State Farm has the best cheap full coverage insurance for young drivers. Full coverage from State Farm costs around $344 per month for an 18-year-old.
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Liability-only insurance for teens
| Company | Monthly rate |
| Farm Bureau | $131 |
| State Farm | $151 |
| Geico | $170 |
| American Family | $197 |
| Travelers | $221 |
Cheapest insurance company after a speeding ticket: State Farm
State Farm has the most affordable car insurance rates for drivers with a speeding ticket.
A full coverage policy from State Farm costs $135 per month after a single ticket. That's $67 per month less than the national average.
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Full coverage insurance after a ticket
| Company | Monthly rate |
| State Farm | $135 |
| Farm Bureau | $183 |
| American Family | $196 |
| Travelers | $206 |
| Geico | $208 |
One speeding ticket raises your rates by an average of 23%.
However, not all companies raise rates by the same amount. So it's important to shop around for auto insurance quotes from multiple companies to find the cheapest rates for you.
Cheapest quotes after an accident: State Farm
State Farm has the cheapest full coverage rates after you cause an accident, at $154 per month.
That's $80 per month less than the national average. It's also $68 per month less than the second-cheapest company, Farm Bureau.
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Full coverage after an accident
| Company | Monthly rate |
| State Farm | $154 |
| Farm Bureau | $222 |
| Travelers | $225 |
| American Family | $248 |
| Progressive | $252 |
That's because car insurance companies believe drivers who cause a crash are more likely to file another claim in the future. That makes them more expensive to insure.
Cheap quotes for teens after a ticket or accident: Farm Bureau
Farm Bureau has the most affordable rates for teens with a bad driving record.
A liability-only policy from Farm Bureau costs $148 per month for an 18-year-old with one speeding ticket. That's $88 less than the national average.
Farm Bureau is also the cheapest option after an accident. At $178 per month for liability-only coverage, Farm Bureau costs $91 per month less than average.
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Liability-only quotes for teen drivers
| Company | Monthly rate |
| Farm Bureau | $148 |
| State Farm | $166 |
| Geico | $202 |
| American Family | $238 |
| Travelers | $283 |
Best affordable car insurance after a DUI: Progressive
Progressive has the cheapest auto insurance for drivers with a recent DUI.
A full coverage policy from Progressive costs $212 per month after a DUI. That's $90 per month cheaper than the national average.
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Full coverage insurance after a DUI
| Company | Monthly rate |
| Progressive | $212 |
| Travelers | $241 |
| American Family | $260 |
| Farm Bureau | $279 |
| Allstate | $322 |
| Nationwide | $365 |
Many times, drivers need to get an SR-22 filing after a DUI. This is a document your insurance company sends to the DMV. It proves you have the minimum amount of insurance required in your state.
Insurance companies typically charge $20 to $50 to file an SR-22 form, in addition to any rate increase for the DUI.
Affordable insurance for drivers with poor credit: Geico
Geico has the best low cost auto insurance for drivers with a poor credit score.
Full coverage from Geico costs $258 per month for these drivers, which is $50 per month cheaper than the national average.
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Full coverage with poor credit
| Company | Monthly rate |
| Geico | $258 |
| Nationwide | $262 |
| American Family | $264 |
| Farm Bureau | $277 |
| Progressive | $289 |
| Travelers | $292 |
Your credit score doesn't affect your ability to drive safely.
However, insurance companies believe drivers with bad credit are more likely to file an insurance claim. That's why these drivers pay nearly twice as much for car insurance as those with a good credit score.
Who has the cheapest car insurance near me?
Erie is the cheapest midsize 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.
Best cheap midsize car insurance companies
| Company | Liability-only | Full coverage | |
| Erie | $41 | $106 |
| Mercury | $43 | $133 |
| Auto-Owners | $43 | $141 |
| Country Financial | $52 | $133 |
| Shelter | $64 | $161 |
| NJM | $73 | $140 |
Cheapest car insurance by state
State Farm is the cheapest major 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.
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.
Best cheap car insurance near you
State | Cheapest monthly rate | |
|---|---|---|
| Alabama | Travelers | $144 |
| Alaska | Geico | $112 |
| Arizona | State Farm | $125 |
| Arkansas | State Farm | $101 |
| California | Geico | $124 |
Monthly quotes for a full coverage policy.
Top 5 cheap car insurance companies
Cheapest overall: State Farm
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Editor's rating
- Liability-only: $50/mo
- Full coverage: $124/mo
Pros:
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Cheapest major company
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Dependable customer service
Cons:
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Limited coverage options
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.
Safe drivers can sign up for State Farm's Drive Safe & Save program. This program gives you a discount for practicing good driving habits. You can also save with an accident-free discount, a bundling discount, an anti-theft device discount and more.
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).
Cheapest with great service: Erie
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Editor's rating
- Liability-only: $41/mo
- Full coverage: $106/mo
Pros:
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Cheap rates for any driving record
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Accident forgiveness
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12-month rate lock
Cons:
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Only available in 12 states and D.C.
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Limited online support
Erie offers the best combination of reliable service at an affordable price, if you can get it.
Erie earned one of the top scores on J.D. Power's claims satisfaction survey. It also gets fewer customer complaints than an average company its size, according to the NAIC. That means you can count on Erie to get you back on the road quickly after an accident.
In addition, Erie has some of the cheapest car insurance rates available. A full coverage policy from Erie costs around $106 per month, which is $58 per month less than the national average. Liability-only coverage costs just $41 per month, which is $13 per month cheaper than average.
However, Erie is only available in 12 states and Washington, D.C.
- Illinois
- Indiana
- Kentucky
- Maryland
- New York
- North Carolina
- Ohio
- Pennsylvania
- Tennessee
- Virginia
- West Virginia
- Wisconsin
Cheapest for for safe and low-mileage drivers: Nationwide
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Editor's rating
- Liability-only: $80/mo
- Full coverage: $185/mo
Pros:
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Mileage-based savings
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Up to 40% savings for safe drivers
Cons:
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Savings programs not available everywhere
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Expensive if you 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.
Best car insurance discounts: American Family
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Editor's rating
- Liability-only: $61/mo
- Full coverage: $160/mo
Pros:
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Offers more discounts than most companies
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Reliable customer service
Cons:
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Not available in all states
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Bad for bundling due to pricey home quotes
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
Cheapest for drivers with military ties: USAA
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Editor's rating
- Liability-only: $33/mo
- Full coverage: $100/mo
Pros:
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Cheapest quotes in most states
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Top-rated customer support
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Unique military perks
Cons:
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Only available drivers with military ties
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Long quote process
USAA offers very affordable rates along with excellent customer service.
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.
USAA has one of the best customer service reputations in the industry. The company regularly earns one of the highest scores on 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 gets few complaints through the That means customers are typically happy with its support and claims process.
However, USAA's quote process takes longer than most major insurance companies. So it may be more work to compare quotes.
How to get affordable auto insurance with discounts
The largest discount you can typically get is a home and auto bundle discount.
You can save up to 25% by buying both policies from the same company.
Safe drivers can also consider signing up for a usage-based program. These programs use your phone or a plug-in device to track your driving habits. Drivers who practice safe habits can save up to 40% on their car insurance bill.
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 policy you choose and how you pay for coverage. For example, you can save by making automatic payments, or paying your annual bill in full.
- Safe car discount: If your car has safety features, like anti-theft technology or automatic braking, you may get a discount.
How to get cheap car insurance by choosing the right coverage
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 want to buy enough coverage to protect you after a major accident.
Knowing your coverage needs also makes comparison shopping easier since different insurance companies might recommend different coverage levels by default.
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