Compare the best prices for car insurance

Compare the best prices for car insurance

Compare the best prices for car insurance, We found that State FarmFarm Bureau and USAA are the three national insurers that offer the lowest prices on average, but what you’ll pay may vary based on where you live, your driving history and more.

Bar graph comparing the cheapest auto insurance companies

Factors that affect car insurance rates

The primary factor that affects car insurance rates is the amount of coverage you select. But beyond your elected coverage, many variables will affect your rates including your age, location, vehicle type, accident and traffic violation history, and credit score.

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Compare car insurance rates by state

Insurance is regulated on a state level, and comparing auto insurance rates by state can show how drastically state regulations affect the price of car insurance where you live. We compiled the average cost of car insurance for all 50 states and Washington, D.C., and found the cheapest insurer for each.

Heatmap of U.S. auto insurance rates by state
State
Cheapest major insurer
Average annual rate
Average monthly rate
Alabama State Farm $554 $46
Alaska State Farm $359 $30
Arizona State Farm $653 $54
Arkansas Farm Bureau $361 $30
California Geico $390 $33
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Rates are for state minimum coverage for a 30-year-old male with a good driving history.

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Compare car insurance rates by accident history

On average, insurance rates increase by 47% after an at-fault accident. However, not all insurers increase premiums by the same amount.

Drivers insured with Geico see the largest increase in rates after an accident, while State Farm tends to penalize drivers less.

Barchart of average annual insurance rates for five major insurers before and after an accident
Costs are for a full coverage policy. Sample accident is the fault of the driver, causing $2,000 in property damage.

Rate increase after an accident by state

Where you live also affects your car insurance rate after an accident. Drivers in Pennsylvania are fortunate: Their rates only go up by 17% after an accident, on average. Insurance rates in California double after an accident — the highest increase in the nation.

State
Clean record
After accident
Difference
Alabama $1,739 $2,644 52%
Alaska $1,433 $1,984 38%
Arizona $2,219 $3,274 48%
Arkansas $1,709 $2,670 56%
California $2,019 $4,139 105%
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Rates are average annual premiums for full coverage before and after an accident.

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Compare car insurance rates by age

Age is a major factor when comparing car insurance rates. Younger drivers pay comparatively more for auto insurance than older drivers because insurance companies consider them to be the riskiest drivers.

Taking three specific ages as an example — 18, 25 and 30 — you can see how insurance rates change over the course of the average young adult’s driving life.

  • An 18-year-old driver pays an average of $6,777 per year for full coverage car insurance.
  • The same driver at 25 years old pays $2,184 per year for car insurance, a decline of 68%.
  • But as drivers reach adulthood, rates tend to level out. The same driver pays $1,922 per year at 30 years old, only 12% less than a 25-year-old but easily the lowest car insurance rate of this group.

Age 18

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Age 25

Graph showing cheapest rates for 18 year old drivers by insurer

Car insurance rates generally decline as you age but then spike again in your later years, as senior drivers pose a higher risk than middle-aged drivers.

Bar chart of average annual car insurance rates by age

Compare car insurance rates by credit score

Drivers with excellent credit pay about half as much for car insurance compared to those with poor credit.

Credit scores can be a key factor in determining your auto insurance quote. Insurance companies use a proprietary calculation — called a credit-based insurance score — to rate their customers. Policyholders with good credit scores tend to pay lower car insurance premiums, while those with poor credit scores tend to pay higher premiums, all else equal.

Annual insurance rates from select insurers for poor and excellent credit ratings

Insurer
Poor credit
Very good credit
Difference
Nationwide $2,698 $1,772 -34%
Farmers $3,650 $2,182 -40%
Allstate $3,431 $2,016 -41%
Geico $2,619 $1,531 -42%
American Family $2,707 $1,481 -45%
Farm Bureau $2,555 $1,397 -45%
USAA $1,958 $1,011 -48%
Progressive $3,214 $1,618 -50%
Travelers $3,208 $1,511 -53%
Erie $2,846 $1,051 -63%
Auto-Owners $3,072 $1,029 -67%
State Farm $2,859 $874 -69%

Rates are a national average of car insurance policies meeting minimum coverage requirements in all 50 states and Washington D.C.

State Farm provides the biggest discount for excellent credit profiles, decreasing its rates by 69%. On the other hand, Nationwide provides the smallest discount, only decreasing rates by 34% for drivers with an excellent credit history instead of a poor one.

Some states have outlawed the use of credit scores in determining insurance rates. If you live in one of these states, your rates will be the same regardless of your credit score.

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