Cheapest Car Insurance

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Crash Course:

• GEICO often has the cheapest car insurance rates, but that’s not always the case.
• The average cost of car insurance in the U.S. is $635 per year for minimum coverage and $1,730 annually for full-coverage policies.
• State Farm is typically one the cheapest car insurance providers for drivers with speeding tickets and other traffic violations.
• Compare auto insurance rates from multiple companies to find your cheapest rates.

The provider with your cheapest car insurance rates depends on where you live, personal characteristics, and your driving record among other factors. While we found that GEICO offers the most affordable rate estimates in many cases, the company with your lowest premiums could vary.

Our research team pulled cost estimates from the nation’s best car insurance companies for a wide variety of driver profiles and locations. You’ll find the prices we received below, along with some recommended providers and tips for finding the cheapest car insurance rates.

Who Has the Cheapest Car Insurance?

GEICO has some of the lowest national average rate estimates for minimum coverage at $468 per year or $39 per month. However, another provider may offer you better rates depending on your location and situation.

Note that while USAA is another solid choice for the cheapest car insurance in the U.S., it’s only available for those in the military, veterans, and family members. If you qualify for coverage, there’s a strong chance that USAA could have some of your lowest rates.

Cheapest Auto Insurance Providers: At a Glance

In the following sections, we’ll go into detail about auto insurance rates and providers for different scenarios. The list below has the cheapest national provider and price estimates for drivers in several different categories.

• Cheapest overall: GEICO at $39 per month
• Cheapest for drivers with an accident: State Farm at $157 per month
• Cheapest for drivers with a speeding ticket: Nationwide at $138 per month
• Cheapest for older adults: GEICO at $102 per month
• Cheapest for drivers with a DUI: State Farm at $182 per month
• Cheapest for drivers with poor credit: GEICO at $178 per month
• Cheapest for military members: USAA at $28 per month

*These estimates are based on a standardized profile of a 35-year-old driver with good credit and a clean driving record. All estimates that appear in this article use the same profile unless otherwise noted.

Cheapest Car Insurance by State

Cheapest Car Insurance by Age

Cheapest Car Insurance by Risk Category

Best Cheap Car Insurance Companies

How Much Does Car Insurance Cost?

It’s difficult to say how much car insurance should cost since rates vary widely across different locations and driver profiles. The best way to estimate your rates is by looking at the tables above and seeing where you fit in.

Auto coverage premiums are tailored to individual policies. While one provider may offer low-cost insurance to a friend or a neighbor, they might have higher rates for you. This variation is why it’s a good idea to get cheap car insurance quotes online from a few providers and to compare them before making a decision.

Car Insurance Cost Factors

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

• Car: The age, type, and price of your vehicle can influence premiums.
• Age: Teen drivers and older adults usually pay the most for car insurance. Rates for middle-aged drivers tend to be lower.
• Credit score: Your credit history plays a major role in the cost of your insurance. The higher your score, the lower your premiums.
• Coverage choices: Policies that only satisfy minimum-coverage requirements will typically have the lowest rates. Adding personal property and injury coverage or policy add-ons will increase your rates.
• Coverage limits: Setting lower coverage limits typically gets you cheaper car insurance, but it also increases your risk of personal financial liability.
• Driving history: If you have recent accidents, speeding tickets, or other violations on your driving record, you’ll pay more for auto insurance. Drivers with a clean driving record have access to the cheapest car insurance prices.
• Deductible: Setting a low deductible means that your out-of-pocket costs will be minimal when you need to file an insurance claim. The lower your deductible, the higher your premium is likely to be.
• Location: Average car insurance premiums vary from state to state, but auto insurance rates can also change depending on your ZIP code. If you live in a rural area, you’ll likely pay less than you would in a city.

Auto Insurance Discounts

Many companies offer discounts that can substantially reduce your rates, but not all providers have the same opportunities. These are some of the most common discounts available from auto insurers:

• Multi-policy discount: Also called a bundling discount, companies that offer multiple kinds of insurance typically have discounts for combining your auto policy with other insurance products like homeowners, renters, or life insurance.
• Multi-car discount: You can often get a discount for insuring more than one car under the same policy.
• Anti-theft discount: Insurers tend to offer discounts for having car alarms and other anti-theft devices installed on your vehicle.
• Good student discount: Some companies reward students who maintain good grades in school with an auto insurance discount.
• Safety equipment discount: You can sometimes get a discount for having safety features like air bags and anti-lock brakes installed on your car.
• Affinity discount: Some insurers offer discounts to members of groups like the U.S. military and government workers.
• Paperless discount: Policyholders can often get a small discount for switching from getting paper bills in the mail to getting them only digitally.

Car Insurance Coverage Plans

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 greatly from state to state.  This is often a combination of liability coverage, personal injury protection, and uninsured or underinsured motorist coverage, though many states permit less.

You can always opt for extra 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 car insurance options you’ll find from nearly every provider:

• Bodily injury liability insurance: Covers medical expenses and lost wages for others involved in an accident you caused.
• Property damage liability insurance: Covers damages to others’ vehicles and personal property in an accident for which you’re found at fault.
• Uninsured motorist/underinsured motorist insurance: Covers your damages and costs related to injuries in an accident in which the at-fault driver lacks 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 coverage: Covers damages to your vehicle regardless of who caused the accident.
• Comprehensive coverage: Covers damages to your vehicle that aren’t related to car accidents, such as falling trees, extreme weather, and instances of theft or vandalism.

How To Get the Cheapest Car Insurance

While some pieces of your driver profile are out of your control, there are some things you can do to try to get the cheapest auto insurance.

Shop Around

One of the most immediate ways to get cheaper coverage is to simply shop around for car insurance. This may take a little extra time – and may result in a few extra marketing calls and emails – but it’s more than worth it. You might be surprised at how much quotes vary between providers for the exact same driver profile.

These days, it’s easy to get free quotes online from multiple providers with just a bit of information and a few minutes. Doing so allows you to compare rates and find the cheapest auto insurance available to you right now.

Look for Car Insurance Discounts

Almost every provider offers at least a few discounts you can apply to your car insurance policy. Some of these are more general, while others are targeted toward specific drivers. You can find a provider’s list of discounts on its website, but it’s good to ask a local insurance agent which discounts you can use due to varying availability.

Consider Your Coverage Choices

Experts generally agree that it’s a good idea to have a full-coverage policy. While the definition of “full coverage” varies somewhat, it generally refers to a policy that includes protection for your property and medical expenses in addition to liability coverage.

If you’re looking to get the cheapest car insurance, it’s worth considering what coverage you need and what you can live without. For example, those with older, less-expensive cars may not need the same coverage levels and limits as for a brand-new vehicle.

Increase Your Deductible

The amount of your deductible is one of the key factors in the cost of auto premiums. The lower it is, the less you’ll have to pay out of pocket toward a claim, but the more you’ll have to pay for coverage.

Increasing your deductible is an immediate way to get cheaper rates, but it puts you at some financial risk. Be realistic about what you can afford to pay in the event of an unexpected covered loss and consider raising your deductible to the maximum amount you’re comfortable with.

Check Out Regional Providers

For the purpose of this article, we focused mainly on providers that offer coverage nationwide. However, in many places, the cheapest auto insurance companies were smaller providers that only serve specific states or regions.

Don’t overlook these smaller providers. Many offer similar options, discounts, and customer service as their national competitors – sometimes at cheaper rates.

Try Usage-Based Insurance

Many providers now offer usage-based insurance, which charges you by the mile rather than by setting a flat premium. People who don’t drive much are likely to see lower rates on their coverage. This may be a good option if you live in a walkable area, work from home, or otherwise don’t need to drive much.

Consider a Telematics Program

These days, most car insurance companies have mobile app-based programs that can monitor your driving habits and report them back to the company. If you practice good driving behaviors, you’ll see your premiums go down. Many providers even give an immediate discount for signing up for their telematics program.

However, be realistic about your own driving habits and make sure you understand which behaviors factor into your rates. If you practice habits that your insurer deems unsafe, you could also see your rates go up. Some companies penalize motorists for things like driving at night, which may be necessary depending on your life and work patterns.

It’s also worth considering whether or not you want to hand over that much data to your insurance company.

Enroll in a Safe Driving Course

Several car insurers in our study offer discounts for completing a defensive driving class approved by the company or a state agency. Typically called a good driver or safe driver discount, the savings on your policy tend to outweigh the cost of a course. Brushing up on safe driving habits can also help you to avoid car accidents and other traffic violations.

Improve Your Credit Score

This isn’t a quick fix, as repairing your credit score takes a long time. However, if you live in a state where insurers are legally allowed to use your credit rating as a factor in setting rates, expect to pay substantially more if you have a poor or even a fair credit score.

Make sure to pay your bills on time and work toward paying down your credit card and other loan balances. In time, a consistent history of good credit habits will bring your score up and your premiums down.

Cheapest Car Insurance: Conclusion

The most affordable car insurance will almost always be a minimum-liability policy. The cheapest rate we saw for a minimum-coverage policy that’s available to all drivers was $39 per month from GEICO.

However, regional providers such as Auto-Owners and Erie Insurance offered even lower rate estimates in the areas they serve. USAA also has cheaper premium estimates but is only available to military personnel, veterans, and select family members.

Most insurance experts recommend getting a full-coverage policy that includes collision, comprehensive, and personal injury coverages. Depending on your driver profile, you may find full-coverage policies that are affordable and that could reduce your financial risk.

While there are several tactics you can use to try to get cheaper coverage, the single best course of action is to compare auto insurance quotes from several providers. That way you’ll know exactly which company offers you the cheapest car insurance policy.

Cheapest Car Insurance: FAQ

Here are a few frequently asked questions about finding cheap auto 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.

*Data accurate at time of publication.