Cheapest Car Insurance Companies

State Farm offers the cheapest car insurance nationwide, charging $106 per month for minimum liability coverage and $116 for full coverage. Drivers save an average of $1,332 annually with State Farm.

GEICO provides the most affordable full coverage at $112 monthly, with rates that are 24% below the national average. The company also matches State Farm's minimum coverage rate at $106 per month, saving drivers an average of $1,307 annually across both coverage levels. The table below ranks the most affordable car insurance companies nationwide.

*USAA is consistently the most inexpensive car insurance company for military members, veterans, and their families for most policies, but availability is limited to those who qualify for membership.

With average monthly premiums of $112, or $1,343 per year, GEICO ranks as the most affordable full coverage car insurance company nationwide. Drivers save $428 annually with this budget-friendly insurer, with rates 24% below the national average. State Farm comes in second at $116 per month for full coverage. Policyholders pay $1,393 per year, enjoying 21% savings compared to other cheaper options. Use the table to find affordable full coverage auto insurance in your state:

State Farm and GEICO tie for the lowest minimum coverage rates nationwide. Policyholders save approximately $400 annually with either insurer, paying just $106 per month with rates 24% below the national average. Farmers charges $112 per month for minimum liability, resulting in annual savings of $331, as its rates are 20% lower than typical costs. With Travelers, drivers pay $1,352 yearly for minimum coverage—19% less than the national benchmark. Nationwide offers minimum liability at $119 monthly, saving policyholders $237 annually.

Across 18 states, State Farm offers the lowest full coverage rates. Monthly premiums through the insurer start at just $49 in Idaho and $56 in Vermont, with drivers pocketing $1,027 in average annual savings. GEICO's rates undercut state averages by 18% to 47% across 16 jurisdictions, saving policyholders $1,107 yearly.

*State rates reflect averages for a 40-year-old male driver with a clean driving record, fair credit, and a 2012 Toyota Camry.

While national carriers offer broad availability, regional insurers sometimes deliver better rates in the markets they serve. Capital Insurance Group and Auto-Owners Insurance Co provide competitive alternatives where available, with rates running 28% to 34% below national averages.

The most affordable auto insurance company varies depending on your age, with younger drivers paying significantly more than middle-aged adults. The most affordable company changes across age groups depending on how insurers evaluate risk and set prices.

• Teens (Ages 16-19): State Farm offers the most affordable rates for drivers aged 16 to 18, with minimum coverage costing between $324 and $414 a month and savings of up to 42% below national averages. GEICO becomes the cheapest option at age 19, charging $265 for minimum liability and providing 25% savings.
• Young Adults (Ages 20-25): GEICO offers the lowest rates in this age group, with minimum coverage premiums dropping from $229 at age 20 to $124 at age 25. The provider saves young adults between $1,523 and $2,800 annually, making it 24% to 30% cheaper than typical rates.
• Adults (Ages 40-65): State Farm leads in this group, with minimum coverage costing $93 to $101 per month, offering savings of 20% to 27% below national averages. GEICO offers competitive rates at age 50, charging $99 for minimum liability and saving drivers $1,228 annually.
• Seniors (Ages 65+): State Farm offers the most affordable coverage for drivers between 65 and 85 years old, with monthly premiums rising from $93 to $126 as they age. Their rates are 27% to 34% lower than the national average. At age 90, GEICO becomes the cheapest option, providing minimum coverage at $128 per month, which saves 36%.

USAA is the most affordable car insurance company for military members, veterans and their families. With minimum coverage starting at just $335 annually and full coverage at $835, USAA's military-exclusive pricing creates savings of nearly $200 compared to the next lowest company's premiums.

GEICO has the most affordable rates for those who don't qualify for USAA membership, with quotes as low as $514 for minimum coverage and $1,177 for full coverage.

High-risk drivers face significantly higher premiums, but State Farm generally offers the cheapest rates across violation types. For drivers with infractions, the insurer offers discounts ranging from 28% to 40% below national averages.

At-fault property damage accidents costing between $1,000 and $1,999 qualify for State Farm's most substantial high-risk discount—40% below typical rates. Monthly minimum coverage costs $128, with annual savings of $1,606 compared to the national average.

Speeding violations of 11-15 MPH over the limit save drivers $1,485 annually with State Farm, where the minimum liability coverage is $118 per month, which is 31% less than the average.

DUI convictions (BAC at or above 0.08) have a minimum coverage premium of $147. Although this is the most costly violation, State Farm still provides $1,830 in yearly savings, with rates 28% lower than what convicted drivers typically pay. The table below compares the most affordable car insurance options for your high-risk situation and coverage preferences..

Nationwide leads for minimum coverage among drivers with bad credit. The company undercuts typical rates by 29%, with annual reductions of $1,974 compared to what credit-challenged drivers normally face. For full coverage, Nationwide again offers the lowest premiums at $164 monthly—nearly identical to minimum liability costs.

Farmers provides competitive rates for bad credit drivers seeking full coverage. Annual savings through the insurer reach $2,289, with full coverage premiums at $203 per month running 17% below the national average.
Compare low-rate auto insurance premiums for drivers with poor credit in the table:

Programs like Progressive Snapshot, State Farm Drive Safe & Save, and GEICO DriveEasy offer pathways to the lowest car insurance rates for qualifying drivers. With discounts up to 40%, these providers are the best car insurance companies for safe drivers. Usage-based insurance monitors driving habits through smartphone apps or plug-in devices, rewarding safe drivers with discounts.

This coverage model works well for tech-savvy drivers, those with good driving habits and anyone willing to share driving data for potential savings. Some of the best usage-based programs available from national insurance companies are detailed in the table:

Finding low-cost auto insurance requires comparing quotes from multiple providers while maintaining adequate financial protection. Follow this guide to identify affordable car insurance options for your specific 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 low-budget full coverage, while USAA is the most affordable for military families.

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