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Cheapest Car Insurance With Good Coverage (February 2022)

  • Learn how to get the cheapest car insurance.
  • See which companies have the cheapest car insurance along with great coverage.
  • Find the pros and cons of five providers we recommend for affordable car insurance.

Affiliate disclosure: Automoblog and its partners may be compensated when you purchase the products in this article.

“If it sounds too good to be true, it probably is” doesn’t always apply when it comes to the cheapest car insurance. Some of the best auto insurance providers in the nation offer high-quality coverage and service at some of the most affordable rates.

To help you find the cheapest car insurance and excellent coverage options, we went to work researching some of the top car insurance companies. Read on to see what we discovered.

The 5 Cheapest Car Insurance Companies

Company Our rating Has usage-based insurance? Average cost estimate
GEICO 96% Yes $1,356
Erie Insurance 86% Yes $1,183
USAA 96% Yes $990
Progressive 95% Yes $1,397
State Farm 95% Yes $1,312

After thoroughly examining companies’ rates, insurance policies, and customer reviews, we found five providers that strike the best balance between strong car insurance coverage and modest prices. Get to know these insurance companies so you can decide which one might be best for you. By comparing car insurance quotes, you’ll gain a more accurate sense of your best options before choosing a provider.

Best Overall: GEICO

Although our research showed that USAA and Erie have some of the lowest premiums among reputable car insurance companies, their limited availability makes them inaccessible for many drivers. When it comes to quality cheap car insurance for everyone, GEICO is our top choice.

As the second-largest car insurance company in the nation, GEICO provides excellent rates at all coverage levels, as well as additional coverage options such as mechanical breakdown insurance. Whether you’re looking for minimum coverage or just the cheapest full coverage, GEICO is worthy of a look.

The company’s rates aren’t the best if you have one or more accidents on your driving record, but discounts can help offset this. Among the discounts available through GEICO is a deal worth up to 15% for being active duty or retired military or being a member of the National Guard or Reserves. If you have a multi-vehicle policy through GEICO or an anti-theft system on your car, you are eligible for a discount worth 25% of your premium.

For additional information on GEICO, check out this in-depth GEICO auto insurance review.

GEICO Pros & Cons

GEICO Pros GEICO Cons
Available in all 50 states Premiums can be pricey for high-risk drivers
Large discounts available Some reports of slow claims processing
Numerous coverage options Some competitors have easier quote process

Best for Basic Coverage: Erie Insurance

We found that Erie customers pay an average of $1,183 annually for auto insurance. While that doesn’t make it the cheapest car insurance provider, it is a little below average. Erie Insurance also has a strong reputation for customer service and is a respected provider within the insurance industry.

The company ranked in the top two in the J.D. Power 2021 U.S. Auto Insurance StudySM in the Midatlantic, North Central, and Southeast regions – an indication of Erie’s solid reputation in the areas it serves.

While many drivers regard Erie as an excellent provider, not everyone will get the best rates. Erie Insurance appears to be geared more toward drivers with good credit and good driving records. Drivers with poor credit or less-than-perfect driving records may find better rates elsewhere.

However, the company does offer special discounts for safe driving, car safety equipment, bundling with other types of coverage, and paying your premium annually instead of monthly.

Erie Insurance Pros & Cons

Erie Insurance Pros Erie Insurance Cons
Large selection of coverage options Only available in 12 states and D.C.
A+ rating from the Better Business Bureau (BBB)
and A+ financial strength rating from AM Best
Some customers report difficulties during the claims process
Savings available through discounts Poor reviews from customers on the BBB website

Best for Military Families: USAA

USAA serves only military members, veterans, and their families, meaning not everyone is eligible for its coverage. But for those who are, the company is worth considering. Based on our research, USAA charges an average annual premium of $990 to cover a 35-year-old male driver, making it one of the cheapest car insurance companies we found.

USAA offers a wide range of discounts, including one discount of up to 60% for storing your vehicle. Other discounts are available to drivers who:

  • Get good grades
  • Own reasonably new vehicles
  • maintain clean driving records
  • Rack up relatively few miles each year
  • Bundle their USAA home and auto insurance policies

If you have questions about USAA car insurance, read our comprehensive review of the provider.

USAA Pros & Cons

USAA Pros USAA Cons
Available nationwide Only available to military members, veterans,
and their families
A++ financial strength rating from AM Best No physical locations
Affordable car insurance rates and discounts Some coverage is limited by state

Best for High-Risk Drivers: Progressive

Some of the best car insurance companies offer reduced rates to drivers with good driving records but not drivers with accidents and violations on their records. But Progressive – the nation’s third-largest car insurance company – offers reasonable rates to both groups of drivers.

If you’ve committed severe violations, such as DWI or DUI, you can still find relatively decent rates from Progressive, especially compared to some competitors. Progressive also offers usage-based insurance, which charges you based on how many miles you drive. If you work from home or don’t drive much, choosing Progressive can yield significant savings.

Progressive also offers plenty of discounts to make coverage even more affordable. Teen drivers, for example, are eligible for discounted coverage, and you can also save around 12% by insuring multiple cars with Progressive. Other discounts are available for setting up auto payments, being a homeowner, or getting a car insurance quote online.

Learn more about Progressive auto insurance in our review.

Progressive Pros & Cons

Progressive Pros Progressive Cons
Options for custom parts coverage Mediocre reputation for customer satisfaction
Numerous plan add-ons available Not BBB accredited
Reasonable rates for high-risk drivers Unexpected rate increases

Best for Student Drivers: State Farm

Students and teen drivers will likely want to look at State Farm if they are trying to find the cheapest car insurance. While the company offers solid rates across the board, its safe driving and good student discounts make it an attractive option if you’re a young driver, especially if you’re in school.

We found that the typical 35-year-old driver pays an average of $1,312 per year for State Farm insurance, but the company’s Drive Safe & Save™ discount program can help you get those rates even lower. And if you’re a student, you can earn a discount worth up to 25% of your premium for excelling academically.

State Farm is the biggest car insurance company in the country, and it holds a strong reputation within the industry. It carries an A+ rating from the BBB, and AM Best awarded it an A++, the agency’s highest possible rating for financial stability.

Discover more about State Farm auto insurance in our provider review.

State Farm Pros & Cons

State Farm Pros State Farm Cons
Biggest U.S. car insurance company Unavailable to new customers in Massachusetts
and Rhode Island
Many discounts available Some policyholders report issues with online claims process
Simple online quote process Although relatively cheap, pricier than some competitors

Car Insurance Costs

When you start shopping for low-cost car insurance, your rates may differ from the ones we found. That’s because auto insurance companies personalize their rates based on information about you and your vehicle.

Here are some of the factors that can affect your car insurance premiums:

  • Car: The age, type, and price of your vehicle can influence the cost of your premium.
  • Age: Teen drivers and senior citizens usually pay the most for car insurance. Rates for middle-aged drivers tend to be lower.
  • Credit score: Your credit history plays a role in the cost of your insurance. The higher your score, the lower your premiums.
  • Coverage: Comprehensive coverage, collision coverage, higher coverage limits, lower deductibles, and policy add-ons will all raise the cost of your premiums.
  • Driving history: If you have recent accidents, speeding tickets, or other violations on your driving record, you’ll have to pay more for car insurance. With a clean driving record, you will have access to cheaper car insurance.
  • Location: Average car insurance premiums vary from state to state, but auto insurance rates can also vary depending on your ZIP code. If you live in a rural area, you will likely pay less than you would in a city.

Cheapest Car Insurance in Each State

Each state has its own unique insurance regulations, risks, and other factors. As a result, the state in which you live has a substantial effect on your premiums. That means that the company that offers the cheapest car insurance in one state won’t necessarily offer the cheapest car insurance in another state.

Here is a list of the most affordable car insurance provider in each state and the average rate for a 35-year-old driver with good credit and a clean driving record:

State State Average Cost Estimate Cheapest Car Insurance Provider Average Premium
Alabama $1,448 USAA $809
Alaska $1,287 USAA $893
Arizona $1,625 GEICO $1,099
Arkanksas $1,449 USAA $869
California $2,339 USAA $1,425
Colorado $1,672 USAA $1,070
Connecticut $1,885 GEICO $972
Delaware $1,921 State Farm $1,094
District of Columbia $1,787 USAA $812
Florida $2,894 GEICO $1,565
Georgia $1,548 USAA $1,107
Hawaii $1,238 GEICO $851
Idaho $1,089 USAA $657
Illinois $1,474 Country Financial $1,044
Indiana $1,087 USAA $695
Iowa $1,095 State Farm $740
Kansas $1,364 USAA $776
Kentucky $1,817 GEICO $922
Louisiana $3,828 Farm Bureau $1,482
Maine $995 Auto Owners $535
Maryland $1,941 USAA $845
Massachusetts $2,568 GEICO $1,589
Michigan $4,390 Progressive $1,682
Minnesota $1,487 USAA $942
Mississippi $1,357 USAA $825
Missouri $1,741 USAA $719
Montana $2,214 USAA $813
Nebraska $1,372 Nationwide $929
Nevada $2,332 USAA $1,357
New Hampshire $1,181 Auto Owners $602
New Jersey $2,108 Progressive $1,326
New Mexico $1,356 USAA $874
New York $3,964 Progressive $1,310
North Carolina $1,277 Erie Insurance $927
North Dakota $1,310 USAA $671
Ohio $923 USAA $662
Oklahoma $1,630 USAA $893
Oregon $1,284 State Farm $961
Pennsylvania $1,405 Travelers $786
Rhode Island $1,923 USAA $1,057
South Carolina $1,592 USAA $1,016
South Dakota $1,331 Nationwide $968
Tennessee $1,217 USAA $755
Texas $2,067 Texas Farm Bureau $1,010
Utah $1,446 USAA $872
Vermont $1,013 State Farm $655
Virginia $1,079 USAA $782
Washington $1,271 USAA $760
West Virginia $1,390 USAA $903
Wisconsin $946 USAA $602
Wyoming $1,499 American National $809

Cheapest Car Insurance Providers for Different Driver Profiles

How much you pay for your car insurance premiums also depends on which categories you fit into as a driver. Here are the cheapest providers, according to the providers’ national average rates, for drivers in different categories.

Driver Profile Cheapest Provider Average Rate
Recent Accident USAA $1,428
Recent Speeding Ticket USAA $1,220
Recent DUI Progressive $1,862
Young driver USAA $1,422
Fair Credit USAA $1,178
Poor Credit USAA $1,807

Note that these may not be the cheapest providers for your profile in your state. You should always request auto insurance quotes from multiple providers to make sure you’re getting the best deal on your coverage.

Car Insurance Coverage

Unless you live in New Hampshire or Virginia, you’re required to carry car insurance. The types of coverage and the amount of coverage required vary from state to state.  Usually, this is some combination of liability coverage, personal injury protection, and uninsured or underinsured motorist coverage, but some states require additional coverages.

You can always opt for more coverage. But if you want to find the cheapest car insurance, you’ll want to look for a policy that only satisfies your state’s minimum coverage requirements.

Standard Coverage Options

These are the standard insurance options you’ll find at every provider:

  • Bodily injury liability: Covers medical expenses and lost wages for others involved in an accident you caused.
  • Property damage liability: Covers damages to others’ vehicles and personal property in an accident for which you are found at fault.
  • Uninsured motorist/underinsured motorist: Covers your damages and costs related to injuries in an accident in which the at-fault driver does not have sufficient insurance coverage.
  • Personal injury protection (PIP): Also known as “no-fault” insurance, PIP covers you and your passengers’ medical expenses and lost wages regardless of who is found at fault for the accident. 
  • Medical payments (MedPay): Covers only medical expenses for you and your passengers, regardless of who is found at fault for an accident.
  • Collision: Covers damages to your vehicle regardless of who caused the accident.
  • Comprehensive: Covers damages to your vehicle that aren’t related to car accidents, such as treefall, extreme weather, and civil unrest.

How To Find the Cheapest Car Insurance Rates

When shopping for cheap auto insurance, you probably can’t quickly relocate, and you certainly can’t do anything about your age or past driving record. But there are some steps you can take to save money on your car insurance policy. They include:

Try Usage-Based Insurance

Usage-based insurance charges you by the mile rather than a flat premium. So if you’re a low mileage driver, like someone who works from home, you may be able to drastically lower your rates.

Improve Your Credit Score

Raising your credit score helps you save money on your car insurance and can help you secure better interest rates on loans and credit cards. Try to pay off as much debt as possible and always make on-time payments.

Shop Around

Insurance providers all calculate their rates a little differently, meaning you’ll get different quotes from different insurers. The company that offers your neighbor their cheapest auto insurance rates may not provide you with the lowest prices. Speaking to insurance agents directly may help you find the best rates.

Enroll in a Safe Driver Course

An at-fault accident can send your insurance premium skyrocketing, but some companies offer a good driver discount if you pass a defensive driving course in your state. Some states also remove points from your license for completing these classes, automatically netting you better rates from any insurance company.

Try a Telematics Program

These days, most car insurance companies have mobile app-based programs that monitor your driving habits and report them back to the company. If you practice good driving habits, you’ll see your premiums go down. However, if you practice unsafe habits, you could see your premiums go up, too. 

Find Car Insurance Discounts

Nearly every insurance provider we researched offers policy discounts of some sort. Most companies will give you a lower rate for paying for your policy up front rather than in monthly installments. Other companies offer discounts for military members and students.

If a company offers different insurance products, it is also likely to provide a multi-policy discount for bundling other insurance products like homeowner’s or renter’s insurance with your auto coverage.

Recap: The Cheapest Car Insurance Providers With Good Coverage

Because companies rarely offer drivers identical rates, it’s impossible to rank providers based on cost alone. We believe each provider in this article could offer you the cheapest car insurance premiums, depending on your coverage needs. That’s why we rated these companies based on which drivers might benefit most from their policies.

Here’s a recap of our list:

  • Best Overall: GEICO – 96%
  • Best for Basic Coverage: Erie Insurance – 86%
  • Best for Military Families: USAA – 96%
  • Best for High-Risk Drivers: Progressive – 95%
  • Best for Student Drivers: State Farm – 95%

As always, it’s in your best interest to check with multiple providers before making a decision. The best car insurance provider is the one that most closely meets your needs. Most companies make it easy to get free insurance estimates, which enables you to compare car insurance quotes from several places and find the cheapest rates available.

FAQ: Cheapest Car Insurance

Who has the cheapest car insurance?

On average, State Farm offers the cheapest car insurance coverage that’s available to everyone, according to our research. USAA has lower average rates, but it is only available to military members, veterans, and their families.

Why is my car insurance rate so high?

Factors that affect the cost of your insurance include your age, driving history, credit score, and location.

What is the cheapest type of car insurance?

The cheapest car insurance will almost always be your state’s minimum required coverage, which is often bodily injury liability insurance.

Our Methodology

Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best car insurance providers.

  • Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team considers auto insurance rate estimates generated by Quadrant Information Services and discount opportunities when giving this score.
  • Coverage: Because each consumer has unique needs, it’s essential that a car insurance company offers an array of coverage options. We take into account types of insurance available, maximum coverage limits, and add-on policies.
  • Industry Standing: Our team considers Better Business Bureau (BBB) ratings, financial strength, and years in business when giving this score.
  • Availability: Auto insurers with greater state availability and few eligibility requirements are more likely to meet consumer needs.
  • Customer Service: Reputable car insurance providers operate with a certain degree of care for consumers. We consider complaints filed with the National Association of Insurance Commissioners (NAIC), J.D. Power claims servicing scores, and customer feedback.
  • Online Experience: Insurers with easy-to-use websites and highly rated mobile apps scored best in this category.

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