Cheapest Car Insurance Companies

Price is the biggest consideration for most car insurance shoppers. But the most important buying decision is to get the right level of coverage. Don't buy the cheapest policy available if it doesn't protect you adequately, but rather choose the cheapest car insurance company for the policy you need.  You need to determine the right amount of liability coverage and if you need full coverage which protects your car from at-fault accidents, weather, and theft. Make sure to compare car insurance rates from companies with the same level of coverage.

Where you live, your driving history, your vehicle, and your credit score all affect what you'll pay. While your driving profile is hard to change, you can compare companies that offer the lowest rates specifically for you with rates starting as low as $18 per month certain states. Use this page's benchmarks by driver profile, coverage type, and location to narrow your search.

Travelers is the most affordable full-coverage car insurance company nationwide, with average monthly premiums of $97. Drivers save $232 annually with this insurer, saving 29% compared to the national average. GEICO is the second cheapest company at $98 per month for full coverage, saving you 28% versus the national average.

Full coverage includes comprehensive and collision protection, covering damage to your own vehicle from accidents, weather, theft, and other incidents. Liability-only covers damage you cause to others, but leaves your own vehicle unprotected.

Choose full coverage if your vehicle's value exceeds $3,000 to $4,000, if you're financing or leasing your car, or if you can't afford to replace your vehicle out of pocket. Liability-only makes sense if your car is older or paid off and you have savings to cover repairs or replacement.

GEICO offers the most affordable minimum coverage rates nationwide, with an annual premium of $514 or $43 per month. With GEICO, policyholders save $264 annually, with rates 36% below the national average. National General charges $579 yearly for minimum liability, resulting in annual savings of $163. Its rates are 28% lower than typical costs.

Minimum coverage satisfies state legal requirements, typically around 25/50/25. But it leaves you personally liable for damages exceeding your policy limits. If you cause a serious accident, you could face lawsuits that threaten your personal assets.

Drivers with assets to protect should consider higher liability limits like 100/300/100. The premium difference is often modest. Compare quotes for both options to see the actual cost difference before deciding.

State Farm is the cheapest company on average across 18 states. GEICO's rates are lowest in 16 states. This saves policyholders up to $1,943 yearly. Rates vary widely by state and zip code so see your state below for each policy type to get the cheapest car insurance company in your location.  Choosing the cheapest provider for you coverage need will save you up to 33% compared to the national average

Car insurance premiums differ across states because of insurance fraud rates, weather patterns, state-mandated coverage requirements, and population density. States with higher fraud, severe weather, or stricter coverage requirements see higher rates. Urban states with more accidents and theft also charge more than rural states. The cheapest company for your state depends on how that insurer's rates align with your state's specific risk factors.

National General is the cheapest option for teens wanting minimum liability coverage, with an average monthly premium of $210. This rate is 13% cheaper than the national average. State Farm offers the lowest average monthly premium for full coverage at $444. National General follows closely for full coverage at $459 per month.

Teen drivers have the highest car insurance rates because they lack driving experience and have accident rates three times higher than older drivers. Insurers price accordingly to account for this increased risk. 

Finding affordable coverage for your teen requires a strategic approach. Adding your teen to your existing policy typically costs less than a standalone policy. Look for companies offering good student discounts, usually 15 to 25 percent off for maintaining good grades. Driver monitoring programs also reduce premiums for responsible teen drivers. You can also explore which are the cheapest car models to insure for teenagers.

National General is the clear leader for young adults looking for cheap coverage. This insurer offers the cheapest average monthly premium for minimum liability coverage, with rates as low as $88 monthly, 29% cheaper than the national average.

For drivers who need comprehensive and collision protection, National General is the cheapest company for full coverage, averaging just $182 per month. GEICO follows closely behind and is budget-friendly choice. It costs $94 monthly for liability and $207 for full coverage.

Rates typically drop at age 25 when insurers reclassify your risk profile, but you can accelerate savings by maintaining a clean driving record and building continuous insurance history. MoneyGeek also analyzed the cheapest car insurance for college students and the most affordable car insurance for new or first-time drivers.

GEICO is the most affordable car insurance company for seniors who need minimum liability coverage. The average monthly premium is $83, 13% cheaper than the national average for this age group.  For full coverage, drivers should look to National General for robust protection. Its rate of $167 per month makes it the cheapest choice by 12% compared to the national average. GEICO is also highly competitive in this category, with a monthly full coverage premium of $171.

Insurance costs can increase for older drivers after the age of 70-75, as insurers factor in age-related changes in reaction time. Completing a defensive driving course can earn seniors additional discounts of 5-10%, helping offset rate increases on fixed incomes.

Drivers with a poor record pay higher premiums, but State Farm is the cheapest auto insurer for those with a risky driving history. This company consistently offers rates 31-42% more affordable than national averages.

• Accident: State Farm's pricing is 42% below the typical average, with minimum coverage costing just $123 per month.
• Speeding: The rate is 33% lower than average, with minimum coverage available at $113 monthly. Drivers with a poor record looking for cheap insurance can save rates finding the company that penalizes this driving record the least.
• DUI Convictions: Even for the most costly violation, State Farm is cheapest company, priced 31% lower than the average, with minimum coverage at $141 per month.

Poor credit can significantly impact your car insurance rates. Insurers use credit scores to assess risk, and drivers with bad credit pay much higher rates.

Nationwide is the most affordable company for drivers with bad credit, with premiums starting at $165 monthly. The company undercuts typical rates by 29 percent, saving drivers $1,974 annually compared to the national average.

For full coverage, Nationwide also offers the lowest rates at $164 monthly and Farmers provides competitive full coverage rates for bad credit drivers, with annual savings reaching $2,289.

In states where credit-based insurance scoring is legal, poor credit (scores below 580) will increase premiums by about 100%. California, Hawaii, and Massachusetts prohibit insurers from using credit scores in rate calculations. Compare quotes from multiple insurers to find the cheapest option for your credit situation.

The most economical car insurance company varies by individual circumstances, but GEICO offers competitive rates across multiple driver profiles.  Travelers provides excellent value for full coverage at $97/month. Learning how to switch car insurance companies makes transitioning to a cheaper car insurance provider straightforward.

We answer common questions about saving money on car insurance to help you find the cheapest policy: