cheapest car insurance quotes among the top insurance companies
cheapest car insurance quotes among the top insurance companies, Did you know the exact same driver could be charged $39 per month by one car insurance company and $255 per month by another? Our analysis — based on millions of car insurance quotes from 37 companies across the country — confirms the best way to save on car insurance is to shop around and get multiple quotes. see more
What is the cheapest car insurance company?
State Farm and USAA are the most affordable major insurance companies in the country. State Farm offers an average rate of $532 per year for a minimum-liability policy, 26% below the national average. USAA costs an average of $432 per year, although only active military members, veterans or their families can qualify.
Among insurers that have a smaller national footprint, Farm Bureau Insurance, at $472 per year, and Auto-Owners, at $484 per year, rank as the cheapest. Erie’s in a close third place at $503 per year.
Smaller insurance companies sometimes offer lower rates because they compete with much bigger companies. Some also deliver more local knowledge or a personal touch because they’re based in your state or community.
|
Company
|
Monthly rate
|
Annual rate
|
|
|---|---|---|---|
 |
USAA | $36 | $432 |
 |
Farm Bureau | $39 | $472 |
 |
Auto-Owners | $40 | $484 |
 |
Erie | $42 | $503 |
 |
State Farm | $44 | $532 |
 |
American Family | $53 | $634 |
 |
Geico | $56 | $667 |
 |
Progressive | $74 | $884 |
 |
Shelter | $74 | $885 |
 |
Allstate | $76 | $916 |
 |
Nationwide | $76 | $916 |
 |
Farmers | $80 | $959 |
 |
Travelers | $86 | $1,035 |
What is the cheapest car insurance company for you?
To find the cheapest car insurance for you, start by getting quotes from the auto insurance companies with the cheapest rates. Depending on a variety of factors — location, driving history, credit score and more — some insurers may be cheaper for certain drivers than others. If you’re looking for the cheapest companies that also offer the best balance of affordability, strong customer service and coverage options, compare the best auto insurance companies.
Cheapest car insurance company overall: State Farm
State Farm is the largest auto insurance company in the country, with the cheapest widely available rates in 29 states. Additionally, the company boasts an enormous network of local agents, meaning there’s likely a State Farm agent in your city who can help you compare rates.
State Farm is the best and cheapest car insurance company for most drivers, considering that USAA has eligibility restrictions, and Farm Bureau and Auto-Owners are disproportionately expensive when you add more coverage.
Cheapest for full coverage
Cheapest for minimum liability
|
Rank
|
Company
|
Monthly rate
|
|---|---|---|
| 1 | USAA | $98 |
| 2 | State Farm | $109 |
| 3 | Erie | $115 |
| 4 | Farm Bureau | $131 |
| 5 | Auto-Owners | $132 |
A full-coverage policy includes both collision and comprehensive insurance, protecting you against damage to your car, not just the legal liability of hurting or injuring other drivers.
State Farm also scores high marks for policy options. It offers pet coverage, rideshare insurance and roadside assistance. Customers also have plenty of options to bundle and even further lower their rates.
Drivers with State Farm can enroll in programs such as Drive Safe & Save to turn good driving habits into lower rates. They can also qualify for a range of discounts, including an accident-free discount, multicar discount and anti-theft discount.
Cheapest car insurance rates after discounts: Geico
Geico has some of the cheapest car insurance in the country, second only to State Farm among the biggest companies.
Geico may have cheaper rates for you than State Farm depending on where you live, as the cheapest company in seven states, including California and Florida.
Geico stands out when it comes to potential savings through discounts. Though State Farm has slightly cheaper rates on average, you may pay less overall if you qualify for Geico’s many car insurance discounts.
Geico has one of the longest lists of discounts available, and how much you can save with each discount is more than most companies.
For example, Geico offers safe drivers a discount of up to 22%, compared to the average of 10%. Having anti-theft devices installed in your car typically saves you up to 15%, but Geico promises savings up to 23%.
|
Company
|
Number of car insurance discounts
|
|---|---|
| Farmers | 21 |
| Geico | 20 |
| Allstate | 20 |
| Travelers | 16 |
| American Family | 16 |
| Liberty Mutual | 14 |
| Progressive | 12 |
| USAA | 12 |
| State Farm | 11 |
| Nationwide | 10 |
Cheapest auto insurance company for a bad driving record: Erie
Erie has some of the cheapest car insurance rates for drivers with a ticket or accident on their driving record. And you probably won’t find a better rate if you have a DUI (driving under the influence) on your driving record. Erie also increases rates the least after a driving incident.
Erie will only raise your rates by an average of 7% if you get a ticket, while most insurers increase premiums by 22% or more. For an at-fault accident, Erie will only raise your rates by 25% instead of the average 44%. And Erie’s average quote with a DUI is $2,257 per year, an increase of 64%. Expect other companies to double your rates after a DUI.
Cheapest car insurance companies after a driving incident
|
Company
|
Clean record
|
Ticket
|
Accident
|
DUI
|
|---|---|---|---|---|
| State Farm | $1,313 | $1,463 | $1,633 | $3,590 |
| Erie | $1,379 | $1,469 | $1,721 | $2,257 |
| Auto-Owners | $1,579 | $1,680 | $1,983 | $3,202 |
| Farm Bureau | $1,576 | $1,774 | $2,110 | $2,813 |
| American Family | $1,755 | $2,055 | $2,706 | $2,832 |
Rates are for a 12-month full-coverage policy, which includes comprehensive and collision insurance, plus state-mandated liability insurance.
Erie also has a strong customer service reputation and a good set of insurance options.
Erie customers who are eligible for its Rate Lock program can avoid premium hikes that could cause rates to creep up over the years. This is a unique program where customers won’t see their rates increase except for three reasons: you move to a different area or change where you park your car, add or remove someone from your policy, or add or remove a car.
That means your rates won’t go up even if you happen to get a ticket or file a claim.
Erie also offers the same car insurance discounts that larger national insurers provide, including bundling multiple insurance policies, having a vehicle equipped with anti-lock brakes or anti-theft equipment or driving safely as a young or senior driver.
The biggest downside to Erie is that it’s only available in 12 states plus DC:
- District of Columbia
- Illinois
- Indiana
- Kentucky
- Maryland
- New York
- North Carolina
- Ohio
- Pennsylvania
- Tennessee
- Virginia
- West Virginia
- Wisconsin
Cheapest car insurance for safe and low-mileage drivers: Metromile
If you drive less than average or are generally a safe driver, a usage-based or pay-per-mile auto insurance company such as Metromile may be the cheapest insurance for you.
Metromile was one of the first companies in the U.S. to determine premiums largely based on mileage. How much driving is too much when shopping with Metromile? Generally, for Metromile to be a good deal, drivers should drive fewer than 10,000 miles per year.
Usage-based insurance is often cheaper than standard car insurance because your rates are largely based on how often and how well you drive. It’s a good option for people who are generally safe drivers but can’t find cheap rates elsewhere because they’re young, have poor credit, live in a congested city or have other risk factors that raise their insurance rates.
That means Metromile is a cheap company for people who are retired or work from home, students who live on campus and young drivers with a clean driving record.
The biggest downside to Metromile is that it’s only available in eight states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington. If you don’t live in one of those states, consider other telematics programs that offer discounts for less driving or safer driving, like Nationwide, Liberty Mutual or State Farm.
Overall, Farm Bureau is the cheapest auto insurance company for drivers with poor credit, averaging $1,278 per year.
Farm Bureau’s average rate is $32 per year cheaper than the next closest widely available competitor, Geico. The company’s rates are 12% cheaper than average.
|
Company
|
Poor credit
|
Very good credit
|
Rate hike
|
|---|---|---|---|
| Farm Bureau | $1,278 | $699 | 83% |
| Geico | $1,310 | $766 | 71% |
| Nationwide | $1,349 | $886 | 52% |
| American Family | $1,354 | $741 | 83% |
| Erie | $1,423 | $526 | 171% |
Rates are for our designated sample driver shopping for a full-coverage policy.
Farm Bureau operates like AAA: nearly every state has a local chapter that offers car insurance policies and other benefits to members. Anyone can become a member, not just farmers, but you’ll need to pay an annual membership fee, which can range from $20 to $100 per year. Membership benefits also include discounts on car purchases, farm equipment, produce, healthcare, travel, rental cars and more.
Drivers with poor credit typically receive insurance quotes that are 99% higher on average compared to drivers with excellent credit. Improving your credit score is a great way to get big savings on your insurance policy.
