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Bankrate’s analysis found Auto-Owners, USAA and Geico are among the cheapest insurers in the U.S. Natalie Todoroff Mariah Posey Mark Friedlander Mariah Posey Mark Friedlander Updated Mar 29, 2024 Powered by Coverage.com (NPN: 19966249) We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. Insurance Disclosure Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
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To help you find the cheapest car insurance company, Bankrate’s insurance editorial team, which includes licensed agents, conducted a data-driven study using a mix of proprietary rate information and other key metrics. Our real-world insurance expertise, coupled with premium data from Quadrant Information Services, allow us to highlight the carriers that not only offer some of the most affordable car insurance policies but also receive high third-party ratings for financial strength, customer satisfaction and other rating factors.
Key takeaways from Bankrate’s cheap car insurance analysis:
- The national average cost of full coverage car insurance is $2,545 per year or $212 per month and minimum coverage is $741per year or $62 per month.
- Florida has the highest average cost of full coverage car insurance in the country at $3,950 per year, which breaks down to monthly payments of $329.
- Annually, drivers in Vermont pay $1,359 per year for full coverage car insurance — 47 percent less than the national average.
- Shopping with different insurance providers, inquiring about discounts and paring back on non-essential coverage can be a good place to start when seeking cheaper car insurance.
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- Compare the cheapest car insurance companies
- What are the best cheap car insurance companies?
- The cheapest car insurance companies by state
- How to get cheap car insurance
- Save on cheap car insurance with discounts
- Frequently asked questions
- Methodology
BankrateScore Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average rate: $/mo $/yr
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The cheapest car insurance companies
The national average for a full coverage car insurance policy is $2,545 per year, and minimum coverage averages $741 per year. However, depending on your rating factors, you could pay more or less than that.
If you’re specifically shopping for the cheapest car insurance company, your quoted rate can seem like the most important factor. While price is largely front of mind when shopping around, it’s only one part of choosing the right insurance for your budget. The vehicle you drive, your driving record, available coverage options and discount selections can all influence which cheap car insurance provider stands apart from the rest as the best insurer for you.
The cheapest car insurance from smaller companies: New England Guaranty
Although large companies sometimes offer more discount programs and options, you might want to look into regional companies with smaller market shares in your search for cheap car insurance quotes. A smaller insurer may also help you find affordable car insurance, offer high customer satisfaction ratings and provide more personalized service. Plus, if you choose to work with a regional insurer, it may be able to provide boots-on-the-ground insight into different coverage types you should consider. These regional carriers offer the cheapest average minimum and full coverage car insurance, according to Bankrate’s analysis.
| Insurance Company | Average annual premium | Average monthly premium |
|---|---|---|
New England Guaranty | $176 | $15 |
Union Mutual | $178 | $15 |
EMC | $186 | $16 |
Nodak | $194 | $16 |
American National | $194 | $16 |
Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Feb 2024
Read our full methodology
| Insurance company | Average annual premium | Average monthly premium |
|---|---|---|
Union Mutual | $677 | $56 |
New England Guaranty | $727 | $61 |
American National | $894 | $75 |
Kentucky Farm Bureau | $956 | $80 |
Hastings Mutual | $1,027 | $86 |
Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Feb 2024
Read our full methodology
Bankrate’s take:Insuring with a small, regional insurance company may come with added benefits. A local insurance agent may be more in tune with your local market since they presumably live in your area. However, you may want to check your small company’s financial stability ratings issued by AM Best, S&P or Moody’s before you make the switch. Smaller companies aren’t inherently less stable than larger ones, but this may be a friction point for some.
The cheapest car insurance company by driving record: Auto-Owners
Based on our research, Auto-Owners offers the cheapest minimum coverage car insurance rates for high-risk drivers who have one speeding ticket conviction. For full coverage premiums, our proprietary data shows that USAA may offer low average rates for drivers with a DUI. Keep in mind that actual rates from every company will vary for each driver, and not every company will insure someone who has a DUI conviction. If you have a DUI or several moving violations, contact an agent for help.
| Insurance company | Clean driving record | One speeding ticket | One at-fault accident | One DUI |
|---|---|---|---|---|
$377 | $460 | $554 | $944 | |
$435 | $528 | $645 | $836 | |
$464 | $560 | $680 | $1,184 | |
$647 | $798 | $781 | $1,796 | |
$668 | $782 | $883 | $1,192 |
Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Feb 2024
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| Insurance company | Clean driving record | One speeding ticket | One at-fault accident | One DUI |
|---|---|---|---|---|
$1,646 | $1,963 | $2,232 | $3,424 | |
$1,683 | $2,053 | $2,456 | $3,249 | |
$1,735 | $2,111 | $2,527 | $4,181 | |
$2,530 | $3,113 | $2,995 | $7,167 | |
$2,248 | $2,579 | $2,850 | $3,593 |
Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Feb 2024
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Bankrate’s take:Depending on your state, you might be able to get license points associated with a speeding conviction removed from your driving record by completing a driver safety course. There will likely be a fee to take the class, but by removing the violation from your driving history, your policy is less likely to be surcharged. If your state does not offer point-reduction courses, your insurance provider may extend a discount to you for taking a defensive driving class. This option is typically only available once every three years, but guidelines vary among insurers. Before enrolling in a point-reduction course, check with your agent to ensure you meet the qualifications and that your desired course is approved by your insurance provider.
The cheapest car insurance company for poor credit: Geico
The table below reflects that Geico offers the cheapest average annual rates for drivers with poor credit histories, while USAA offers the lowest average annual rates for drivers with average credit. Keep in mind that not all states allow credit-based insurance scores to be used as a rating factor. Check your state’s laws or speak with an insurance agent to determine how your credit history might affect your car insurance premium.
| Insurance company | Poor credit | Average credit | Good credit | Excellent credit |
|---|---|---|---|---|
$1,515 | $740 | $647 | $475 | |
$1,032 | $460 | $377 | $269 | |
$1,199 | $656 | $566 | $434 | |
$648 | $494 | $464 | $431 | |
$775 | $467 | $435 | $388 |
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| Insurance company | Poor credit | Average credit | Good credit | Excellent credit |
|---|---|---|---|---|
$6,052 | $2,904 | $2,530 | $1,840 | |
$4,660 | $1,974 | $1,646 | $1,159 | |
$3,671 | $1,936 | $1,680 | $1,280 | |
$2,422 | $1,850 | $1,735 | $1,602 | |
$3,245 | $1,828 | $1,683 | $1,481 |
Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Feb 2024
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Bankrate’s take:Unless you live in California, Hawaii, Massachusetts or Michigan, your credit history can impact your car insurance premium. In fact, drivers with poor credit may pay similar premiums to those with a DUI conviction. Although improving your credit isn’t an overnight fix, you could see gradual improvements in your average rate as you build up your score.
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Car insurance rates by credit score
In most states, drivers with credit in good standing generally pay much less for car insurance than drivers with a poor credit history.
The cheapest car insurance company for new drivers: Geico
Age plays a major role when it comes to car insurance rates (except in Hawaii and Massachusetts, where age is not a permitted rating factor). Young drivers pay some of the highest average premiums due to their inexperience, but some companies offer cheaper car insurance for young drivers than others. For minimum coverage, Geico might be a good cheap option.
| Insurance company | Cheapest company | Average annual rate | Average monthly rate |
|---|---|---|---|
| Geico | $1,105 | $92 | |
| Geico | $1,003 | $84 | |
| Auto-Owners | $1,213 | $101 | |
| Auto-Owners | $1,006 | $84 | |
| Auto-Owners | $875 | $73 | |
| Geico | $66 | $793 | |
| Geico | $793 | $58 | |
| Geico | $630 | $52 | |
| Geico | $599 | $50 | |
| Geico | $548 | $46 |
*Rates reflect 16- and 17-year-old drivers added to their parents’ policy with the driver’s training and good student discounts applied.
Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Feb 2024
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| Insurance company | Cheapest company | Average annual rate | Average monthly rate |
|---|---|---|---|
| Nationwide | $2,931 | $244 | |
| Nationwide | $2,909 | $242 | |
| Erie | $3,690 | $308 | |
| Erie | $3,233 | $269 | |
| Erie | $2,999 | $250 | |
| Erie | $2,881 | $240 | |
| Geico | $2,574 | $215 | |
| Geico | $2,357 | $196 | |
| Erie | $2,188 | $182 | |
| Geico | $2,056 | $171 |
*Rates reflect 16- and 17-year-old drivers added to their parents’ policy with the driver’s training and good student discounts applied.
Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Feb 2024
Read our full methodology
Bankrate’s take:Although young drivers may be eligible for their own car insurance policy once they reach 18, parents might want to consider listing their young adult child on their policy instead. Young adults on their parents’ policy typically pay much lower premiums than when listed on a separate policy. Our data from Quadrant Information Services indicates that an 18-year-old with their own full coverage car insurance policy pays an average of 59 percent more than an 18-year-old who remains on their parents’ insurance. However, this is usually only an option if the young adult still lives at home. It’s also important to note that any driving convictions or accidents associated with your child will likely impact your rate (at least until you remove them from your policy).
The cheapest car insurance company for senior drivers: Auto-Owners
Rates can begin to creep upward as you age, especially when you reach around and above age 70. That’s because some age-related health issues, like poor eyesight and delayed reaction time, can increase the risk of accidents. Don’t worry, though; average rates for senior drivers with clean driving records are still far lower than they are for teen drivers. Based on our research, Auto-Owners offers some of the cheapest car insurance for senior drivers.
| Insurance company | Cheapest company | Average annual rate | Average monthly rate |
|---|---|---|---|
| Auto-Owners | $361 | $30 | |
| Auto-Owners | $362 | $30 | |
| Auto-Owners | $447 | $37 |
Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Feb 2024
Read our full methodology
| Insurance company | Cheapest company | Average annual rate | Average monthly rate |
|---|---|---|---|
| Auto-Owners | $1,549 | $129 | |
| Nationwide | $1,546 | $129 | |
| Auto-Owners | $1,618 | $135 |
Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Feb 2024
Read our full methodology
Bankrate’s take:Some insurance companies offer a discount for senior drivers if they complete a defensive driving course (either online or in person). You typically have to be 50 or 55-plus to qualify, and the discount is normally applied for three years after course completion. You will want to speak to your insurance agent before signing up for a course. Some insurers must pre-approve the course, and details for the discount vary from provider to provider.
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Cheap car insurance for seniors
Signing up for a defensive driving course could be a great way to help lower your auto insurance rate.
What are the best cheap car insurance companies?
We know drivers looking for the cheapest car insurance policy often opt for minimum coverage, so we kept low average minimum coverage rates at the forefront of our reviews. However, our insurance editorial team took care to avoid sacrificing quality. Although the companies below offer some of the cheapest minimum coverage premiums, they also stand out for their customer service, digital tools and discount opportunities, qualifying them for Bankrate’s list of the best cheap car insurance companies.
The top 5 cheap car insurance companies in 2024
Cheapest car insurance company overall
Bankrate score
Rating: 4.3 stars out of 5 4.3
Bankrate score
Rating: 4.3 stars out of 5 4.3
Avg. monthly premium
$31
Min. coverage
Avg. annual premium
$377
Min. coverage
Avg. annual savings
-$364
Overview
Auto-Owners
Why Auto-Owners made our list: Auto-Owners has one of the lowest average minimum coverage premiums on our list and also offers numerous add-on options to help you personalize your coverage. Its high J.D. Power score suggests quality service, and its AM Best rating indicates a strong ability to pay out customer claims. If you live in one of the 26 states where Auto-Owners writes car insurance policies, it may be worth getting a quote.
Why Auto-Owners may be the cheapest overall: Based on our analysis, Auto-Owners has the cheapest average minimum coverage premium for drivers with clean driving records and good credit. This regional carrier also offers cheap average rates across a variety of other driving profiles. Auto-Owners also tied with Geico in the 2024 Bankrate Awards for Best Budget Auto Insurance Company.
Scores and Ratings
| Bankrate Score | 4.3 |
| J.D. Power | 865/1,000 |
| AM Best score | A++ |
| States covered | 26 states |
Quoted rates are for minimum coverage policies
Pros
- High customer satisfaction ratings
- Offers several optional endorsem*nts
Cons
- Not available nationwide
- Does not offer a virtual claims-filing system
Cheapest car insurance company for military-focused coverage
Bankrate score
Rating: 4.2 stars out of 5 4.2
Bankrate score
Rating: 4.2 stars out of 5 4.2
Avg. monthly premium
$36
Min. coverage
Avg. annual premium
$435
Min. coverage
Avg. annual savings
-$306
Overview
USAA
Why USAA made our list: In addition to its low average minimum coverage rate, USAA consistently receives high customer satisfaction scores from J.D. Power (although the company isn’t eligible for official ranking due to only insuring military members, veterans and qualifying family members). USAA also offers a healthy selection of discounts to help eligible drivers save even more. For example, with the SafePilot telematics program, qualifying drivers could save up to 30 percent.
Why USAA may be cheapest for military-focused coverage: USAA offers military-specific discounts that can help active military personnel, veterans and qualifying family members save on their car insurance policies. This includes a unique on-base discount that provides up to 15 percent off your car insurance premium if your vehicle is garaged on base. If your parents are also USAA members, you could receive an additional 10 percent discount.
Scores and Ratings
| Bankrate Score | 4.2 |
| J.D. Power | 890/1,000 |
| AM Best score | A++ |
| States covered | All 50 states, plus Washington, D.C. |
Quoted rates are for minimum coverage policies
Pros
- Provides extensive discount options
- Offers additional services like banking, investments and retirement planning
Cons
- Only offers a few endorsem*nt options
- Limited number of local agents compared to other national insurers
Cheapest car insurance company for poor credit scores
Bankrate score
Rating: 4.4 stars out of 5 4.4
Bankrate score
Rating: 4.4 stars out of 5 4.4
Avg. monthly premium
$39
Min. coverage
Avg. annual premium
$464
Min. coverage
Avg. annual savings
-$277
Overview
Geico
Why Geico made our list: With nationwide availability, low average rates and a wide variety of discounts, Geico, the second-largest U.S. auto insurer by market share, might help you save money no matter where you live. Geico swept multiple categories in the 2024 Bankrate Awards, winning an award for Best Auto Insurance Company Overall (tied with Amica), Best Budget Auto Insurance Company (tied with Auto-Owners) and Best for Young Drivers.
Why Geico may be cheapest for poor credit scores: Drivers with poor credit scores tend to receive less favorable auto insurance rates, but Geico may be able to help. According to our research and rate data from Quadrant Information Services, Geico’s average annual minimum coverage premium for drivers with poor credit is over $100 cheaper than the next cheapest company we analyzed.
Scores and Ratings
| Bankrate Score | 4.4 |
| J.D. Power | 874/1,000 |
| AM Best score | A++ |
| States covered | All 50 states, plus Washington, D.C. |
Quoted rates are for minimum coverage policies
Pros
- Highly regarded for its vast menu of discounts
- Mobile app allows for many convenient self-service options like bill paying and policy changes
Cons
- Only offers a few endorsem*nt options
- Limited number of local agents compared to other national insurers
Cheapest car insurance company for stellar service
Bankrate score
Rating: 4.6 stars out of 5 4.6
Bankrate score
Rating: 4.6 stars out of 5 4.6
Avg. monthly premium
$54
Min. coverage
Avg. annual premium
$647
Min. coverage
Avg. annual savings
-$94
Overview
Amica
Why Amica made our list: With a low average minimum coverage premium and high claims and customer satisfaction scores, Amica could be a great option for those looking for cheap automobile insurance and solid service. Amica took home 2024 Bankrate Awards for Best Auto Insurance Company Overall (tie) and Best for Customer Experience.
Why Amica may be cheapest for stellar service: Amica is rated near the top of J.D. Power’s claims satisfaction study and also offers low average rates across a variety of profiles. Auto claims can be filed in numerous ways, including through an online account, via Amica’s online chat feature, by phone or on the Amica mobile app. You can learn more about Amica by calling 1-800-242-6422 or visiting www.amica.com.
Scores and Ratings
| Bankrate Score | 4.6 |
| J.D. Power | 903/1,000 |
| AM Best score | A+ |
| States covered | All 50 states except for Hawaii |
Quoted rates are for minimum coverage policies
Pros
- High third-party customer service ratings
- A low average minimum coverage premium
Cons
- Auto policies aren’t available in Hawaii
- Does not offer ridesharing coverage
Cheapest car insurance company for local offices
Bankrate score
Rating: 4.3 stars out of 5 4.3
Bankrate score
Rating: 4.3 stars out of 5 4.3
Avg. monthly premium
$56
Min. coverage
Avg. annual premium
$668
Min. coverage
Avg. annual savings
-$73
Overview
State Farm
Why State Farm made our list: State Farm (the largest insurance company in the U.S. by market share) does business through an extensive, nationwide network of brick-and-mortar agencies. For tech-savvy drivers, the company offers a highly-rated mobile app and online portal; no matter your preference, there are multiple ways to handle your State Farm policy. Additionally, State Farm offers cheap average rates among the companies we studied, and the company’s many discount opportunities might help you save even more.
Why State Farm may be cheapest for local offices: State Farm has a network of over 19,000 agents located in all 50 states and Washington, D.C, and according to our research of average premiums provided by Quadrant Information Services, the company consistently offers some of the lowest rates for many types of drivers. In fact, these factors helped State Farm earn the 2023 Bankrate Award for best auto insurance company for high-risk drivers.
Scores and Ratings
| Bankrate Score | 4.3 |
| J.D. Power | 882/1,000 |
| AM Best score | A++ |
| States covered | All 50 states except for Hawaii |
Quoted rates are for minimum coverage policies
Pros
- Offers a highly-rated mobile app and ranked well above average in the 2023 J.D. Power U.S. Insurance Digital Experience Study
- Policyholders can get in-person assistance at an office or manage policies online
Cons
- Accident forgiveness is not available for purchase
- Does not offer gap insurance
Why you can trust Bankrate's picks for cheapest insurers
There’s a lot of information out there, and unless you’re already versed in the subject, it can be difficult to decipher what information available online is reliable when researching insurance. After all, your policy is full of contractual language and stipulations, and every company and policy is different. Bankrate can help. Our insurance team includes licensed agents, and we have decades of combined real-world industry experience helping policyholders make wise decisions about their coverage. We know that while it’s sometimes overlooked or misunderstood, insurance is essential in providing peace of mind and financial protection. We also understand the importance of making every dollar count, especially in today’s market of record-high inflation.
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122
carriers reviewed
20.7K
ZIP codes examined
1.2M
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The cheapest car insurance companies by state
The cheapest car insurance depends on your individual circ*mstances, and each state has different insurance regulations. However, the following rate information may be useful for the sake of comparison. The best way to know if it’s right for your budget is to request a quote.
| State | Cheapest company | Avg. annual premium* |
|---|---|---|
Cheapest company Geico | Avg. annual premium* $318 | |
Cheapest company Geico | Avg. annual premium* $269 | |
Cheapest company Travelers | Avg. annual premium* $444 | |
Cheapest company The Hanover | Avg. annual premium* $240 | |
Cheapest company Geico | Avg. annual premium* $446 | |
Cheapest company American National | Avg. annual premium* $228 | |
Cheapest company Travelers | Avg. annual premium* $484 | |
Cheapest company USAA | Avg. annual premium* $522 | |
Cheapest company Geico | Avg. annual premium* $1,060 | |
Cheapest company Auto-Owners | Avg. annual premium* $454 | |
Cheapest company USAA | Avg. annual premium* $268 | |
Cheapest company American National | Avg. annual premium* $158 | |
Cheapest company Secura | Avg. annual premium* $354 | |
Cheapest company Auto-Owners | Avg. annual premium* $246 | |
Cheapest company Hastings Mutual | Avg. annual premium* $134 | |
Cheapest company USAA | Avg. annual premium* $323 | |
Cheapest company Motorists | Avg. annual premium* $287 | |
Cheapest company Geico | Avg. annual premium* $476 | |
Cheapest company USAA | Avg. annual premium* $261 | |
Cheapest company USAA | Avg. annual premium* $671 | |
Cheapest company State Farm | Avg. annual premium* $208 | |
Cheapest company Travelers | Avg. annual premium* $216 | |
Cheapest company North Star Mutual | Avg. annual premium* $357 | |
Cheapest company State Farm | Avg. annual premium* $336 | |
Cheapest company USAA | Avg. annual premium* $311 | |
Cheapest company USAA | Avg. annual premium* $211 | |
Cheapest company EMC | Avg. annual premium* $186 | |
Cheapest company Geico | Avg. annual premium* $382 | |
Cheapest company MMG | Avg. annual premium* $235 | |
Cheapest company Selective | Avg. annual premium* $413 | |
Cheapest company Central Mutual | Avg. annual premium* $265 | |
Cheapest company Main Street America | Avg. annual premium* $556 | |
Cheapest company State Farm | Avg. annual premium* $300 | |
Cheapest company Nodak | Avg. annual premium* $194 | |
Cheapest company Hastings Mutual | Avg. annual premium* $257 | |
Cheapest company American Farmers & Ranchers Mutual | Avg. annual premium* $288 | |
Cheapest company Oregon Mutual | Avg. annual premium* $483 | |
Cheapest company Atlantic States | Avg. annual premium* $313 | |
Cheapest company USAA | Avg. annual premium* $469 | |
Cheapest company American National | Avg. annual premium* $197 | |
Cheapest company USAA | Avg. annual premium* $203 | |
Cheapest company Tennessee Farmers Mutual | Avg. annual premium* $286 | |
Cheapest company Geico | Avg. annual premium* $473 | |
Cheapest company USAA | Avg. annual premium* $394 | |
Cheapest company New England Guaranty | Avg. annual premium* $176 | |
Cheapest company Utica National | Avg. annual premium* $350 | |
Cheapest company PEMCO | Avg. annual premium* $272 | |
Cheapest company USAA | Avg. annual premium* $345 | |
Cheapest company Rural Mutual | Avg. annual premium* $219 | |
Cheapest company Geico | Avg. annual premium* $176 | |
Cheapest company USAA | Avg. annual premium* $436 |
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Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Feb 2024
Read our full methodology
| State | Cheapest company | Avg. annual premium* |
|---|---|---|
Cheapest company Travelers | Avg. annual premium* $1,312 | |
Cheapest company Geico | Avg. annual premium* $1,388 | |
Cheapest company General Casualty | Avg. annual premium* $1,346 | |
Cheapest company USAA | Avg. annual premium* $1,357 | |
Cheapest company California Capital | Avg. annual premium* $1,932 | |
Cheapest company American National | Avg. annual premium* $1,282 | |
Cheapest company Travelers | Avg. annual premium* $1,341 | |
Cheapest company Travelers | Avg. annual premium* $1,391 | |
Cheapest company Progressive | Avg. annual premium* $3,034 | |
Cheapest company Auto-Owners | Avg. annual premium* $1,601 | |
Cheapest company USAA | Avg. annual premium* $1,184 | |
Cheapest company American National | Avg. annual premium* $805 | |
Cheapest company Geico | Avg. annual premium* $1,091 | |
Cheapest company Hastings Mutual | Avg. annual premium* $872 | |
Cheapest company Hastings Mutual | Avg. annual premium* $614 | |
Cheapest company American Family | Avg. annual premium* $1,369 | |
Cheapest company Kentucky Farm Bureau | Avg. annual premium* $956 | |
Cheapest company South Carolina Farm Bureau | Avg. annual premium* $2,095 | |
Cheapest company USAA | Avg. annual premium* $960 | |
Cheapest company Kemper | Avg. annual premium* $1,597 | |
Cheapest company State Farm | Avg. annual premium* $696 | |
Cheapest company Hastings Mutual | Avg. annual premium* $1,384 | |
Cheapest company American Family | Avg. annual premium* $1,269 | |
Cheapest company Progressive | Avg. annual premium* $1,709 | |
Cheapest company American Family | Avg. annual premium* $1,429 | |
Cheapest company USAA | Avg. annual premium* $1,280 | |
Cheapest company Amco Insurance | Avg. annual premium* $1,091 | |
Cheapest company Geico | Avg. annual premium* $1,443 | |
Cheapest company MMG | Avg. annual premium* $973 | |
Cheapest company Travelers | Avg. annual premium* $1,195 | |
Cheapest company USAA | Avg. annual premium* $1,453 | |
Cheapest company Main Street America | Avg. annual premium* $1,405 | |
Cheapest company State Farm | Avg. annual premium* $958 | |
Cheapest company USAA | Avg. annual premium* $1,052 | |
Cheapest company Hastings Mutual | Avg. annual premium* $759 | |
Cheapest company American Farmers & Ranchers Mutual | Avg. annual premium* $1,612 | |
Cheapest company Oregon Mutual | Avg. annual premium* $1,045 | |
Cheapest company Amco Insurance | Avg. annual premium* $1,381 | |
Cheapest company USAA | Avg. annual premium* $1,566 | |
Cheapest company American National | Avg. annual premium* $595 | |
Cheapest company Amco Insurance | Avg. annual premium* $1,356 | |
Cheapest company Tennessee Farmers Mutual | Avg. annual premium* $1,277 | |
Cheapest company Geico | Avg. annual premium* $1,696 | |
Cheapest company Depositors | Avg. annual premium* $1,122 | |
Cheapest company Union Mutual | Avg. annual premium* $677 | |
Cheapest company Utica National | Avg. annual premium* $1,107 | |
Cheapest company USAA | Avg. annual premium* $1,047 | |
Cheapest company Encompass | Avg. annual premium* $1,310 | |
Cheapest company American Family | Avg. annual premium* $1,072 | |
Cheapest company State Farm | Avg. annual premium* $1,315 | |
Cheapest company USAA | Avg. annual premium* $1,324 |
*Based on full coverage policies for 2022.
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Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Feb 2024
Read our full methodology
How to get cheap car insurance
There’s more that goes into buying the cheapest auto insurance than going with the lowest premium you find. Taking a little extra time to evaluate your insurance needs, set a budget for yourself and do a little digging into each provider can help you find significant car insurance savings both up front and long term. Following the steps below can help point you in the right direction:
- Prioritize: Before you begin gathering quotes, take a moment to identify your insurance priorities. Some drivers may need a company that offers lower rates for poor credit scores, while others are willing to pay a little more for top-notch customer service and added perks. Some drivers may prefer to manage their policy in person, while others prefer a robust app or website. Knowing what you need ahead of time can help streamline the quoting process.
- Research: Once you pinpoint your primary qualifiers for an insurance company, you can use Bankrate’s list of cheapest providers to seek out the best cheap car insurance companies known to offer competitive rates for your specific situation.
- Compare: When requesting quotes, it’s vital to compare car insurance coverage apples-to-apples. Unequal coverage limits and varying coverage options will not accurately reflect the rates between companies. Using your current declarations page to guide you on your coverage selections may be a good idea.
- Discounts: Discount opportunities vary between insurance companies and some have more stringent eligibility requirements than others. It may be a good idea to ask the company to do a full discount review to ensure you take advantage of all possible savings.
- Avoid a lapse in coverage: In most states, a lapse in coverage can cause your premiums to increase. Car insurance companies generally regard those with lapses as less financially stable and more likely to file a claim — and typically reflect this increased risk with a higher premium. Enrolling your policy into automatic payments, or paying your policy in full rather than installments, might help you avoid a lapse which, over time, can help keep your premium down. As an added bonus, automatic payments may help you avoid unnecessary service fees.
Save on cheap car insurance with discounts
Car insurance discounts can be an effective way to reduce your premium. Luckily, providers tend to offer a broad selection of discounts that you could apply to your policy based on your age, profession, driving habits or other characteristics.
Many car insurance companies offer teen driver discounts to help offset the increased cost these higher-risk drivers can cause. If your child is a stellar student, you may want to ask about the good student discount (some companies will even extend this discount to good students up until 25 years old). Additionally, many companies offer a discount for young drivers who complete a driver’s training course.
You could potentially get a car insurance discount if you are a member of an affiliated group, like a credit union or professional organization. It is common for insurers to extend this discount to those who work in engineering, education, medical and first-response fields.
Some car insurance companies offer discounts for active, honorably discharged and retired military members. Depending on the carrier, military family members may also qualify for this discount. Active duty military members may want to seek out an insurer that offers deployment discounts, as these can save a significant amount of money.
These types of discounts could be earned based on your driving record or mileage. For example, you could earn a low-mileage discount if you drive infrequently or a good driver discount if you haven’t been involved in an at-fault accident or received a moving violation.
A telematics device is a small piece of equipment you plug into your car to monitor your driving habits. Or, with some companies, you may even be able to use an app on your smartphone in lieu of a separate device. Drivers with good driving habits, like those who maintain the speed limit and avoid harsh braking and rapid acceleration, may be rewarded with a discount on their premium.
Bundling discounts are not exclusively for homeowners. Although home and auto is a popular insurance bundle, many insurers offer bundling discounts if you purchase other insurance lines like motorcycle, life, umbrella or renters.
Risks of getting cheap car insurance
Since car insurance rates are at an all-time high, many drivers are seeking ways to secure a more affordable car insurance policy. Price matters, but there are risks associated with purchasing bare-bones coverage.
Before reducing or eliminating coverage, take stock of your financial situation. Consider the amount of money you have in savings and your ability to pay high out-of-pocket expenses should an accident occur. While removing optional coverage types like roadside assistance and rental reimbursem*nt could be a lower-risk way to save money on premiums, removing collision and comprehensive coverage (aka full coverage) might be more of a gamble. Can you afford to repair or replace your vehicle if it’s damaged, totaled or stolen? If the answer is no and you rely on your vehicle for work or family obligations, then you may need full coverage more than you think.
Also, keep in mind that quality customer service and an experienced agent can make a difference. An insurance company with cheap policies but poor claims payment history may not be in your best interest. Checking company reviews online and doing some consumer research — like reading about the companies named The Best in Car Insurance in the 2024 Bankrate Awards — can help you find a balance of cheap premiums and quality coverage.
Our industry experts weigh in
To help you pinpoint some extra savings, Bankrate spoke to a few industry experts. We asked them to share one thing they wish more people knew that would help them save money on car insurance.
What is one thing you wish more people knew that would help them save money on car insurance?
Chloe Moore, CFP Founder, Financial Staples
“In general, a lot of people don’t have enough car insurance coverage. When reviewing car insurance policies for clients, I often see where they have the state minimum coverage and I recommend increasing their coverage limits. In addition to the common ways to save (shopping around, increasing their deductibles and taking advantage of multi-policy discounts), another way to save on car insurance is to reconsider filing small claims. For example, let’s say your deductible is $500 and you have $900 of damage to your vehicle. Or maybe a rock hit your windshield and it needs to be replaced. Consider if it’s worth filing a claim for a few hundred dollars, which can also result in your car insurance increasing for the next two to three years. Thinking about how a claim affects you long-term can prevent unnecessary increases at a time when the cost of car insurance is already going up.”
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze the latest rates in February 2024 for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Credit-based insurance scores: These rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.
Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
46
years of industry expertise
122
carriers reviewed
20.7K
ZIP codes examined
1.2M
quotes analyzed
Bankrate Scores methodology
Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Compare rates and save on auto insurance today!
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Natalie Todoroff is an insurance writer for Bankrate, prior to which she wrote for a popular insurance comparison shopping app. She has a Bachelor of Arts in English and has written over 800 articles about insurance throughout her career.
Edited by Mariah Posey
Reviewed by Mark Friedlander
