Travelers ranks as the most affordable full-coverage car insurance company nationwide, with average monthly premiums of $97. Drivers save $232 annually with this insurer, which has rates 29% below the national average. GEICO is a close competitor at $98 per month for full coverage. Policyholders pay $1,177 annually with GEICO, enjoying 28% savings compared to the national average.
Cheapest Car Insurance Companies
Updated: November 11, 2025
Advertising & Editorial Disclosure
The cheapest car insurance companies and lowest monthly rates nationwide are:
Full Coverage: Travelers, $97
Liability Only: GEICO, $43
Teens: National General, $210
Young Adults: National General, $88
Seniors: GEICO, $83
DUI: State Farm, $141
Why You Can Trust Moneygeek
Our cheapest car insurance rankings are based on comprehensive analysis of 2,474,515 quotes from 607 insurance companies across 3,523 ZIP codes nationwide. Our methodology has been reviewed by Mark Fitzpatrick, licensed insurance expert and industry analyst. We update our data and rankings monthly to ensure accuracy, with our most recent analysis completed in June 2025.
MoneyGeek maintains editorial independence and does not receive compensation from insurance companies for rankings or recommendations.
Cheapest Full Coverage Car Insurance
| Travelers | $97 | $1,158 | 29% |
| Geico | $98 | $1,177 | 28% |
| National General | $112 | $1,340 | 18% |
| Amica | $115 | $1,381 | 16% |
| State Farm | $121 | $1,448 | 11% |
Full coverage becomes cost-effective when your vehicle's value exceeds $3,000-$4,000, or when financing or leasing requires comprehensive and collision coverage. Choosing a higher deductible—like $1,000 instead of $500—can reduce your premiums by 15-20%, though you'll pay more out-of-pocket after an accident. The cheapest car insurance company isn't always the best insurer for service and coverages. If you're a homeowner, you may want to look into the best combination bundle for your car and home.
Cheapest Liability Only Car Insurance
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.
| Geico | $43 | $514 | 36% |
| National General | $48 | $579 | 28% |
| Travelers | $50 | $601 | 25% |
| State Farm | $53 | $634 | 21% |
| Amica | $56 | $669 | 17% |
Minimum coverage satisfies state legal requirements—typically around 25/50/25 in most states—but leaves you personally liable for damages exceeding your policy limits. Drivers with assets to protect should consider higher liability limits like 100/300/100 to guard against lawsuits following serious accidents.
Cheapest Car Insurance by State
Rates depend heavily on your specific location and ZIP code. State Farm offers the lowest rates across 18 states. Monthly minimum coverage premiums through the insurer start at just $45 in Idaho and $54 in Vermont. Drivers in those states pocket up to $1,163 in average annual savings.
GEICO's rates undercut state averages by 11-47% across 16 jurisdictions. This can save policyholders up to $1,943 yearly.
| Alabama | Travelers | $47 | $86 | 1% |
| Alaska | Geico | $41 | $87 | 21% |
| Arizona | Travelers | $41 | $83 | 24% |
| Arkansas | Travelers | $41 | $89 | 8% |
| California | Geico | $39 | $91 | 24% |
| Colorado | Geico | $32 | $97 | 30% |
| Connecticut | Geico | $34 | $75 | 46% |
| Delaware | Travelers | $48 | $78 | 38% |
| District of Columbia | Geico | $86 | $152 | 30% |
| Florida | Travelers | $52 | $112 | 26% |
| Georgia | Geico | $40 | $101 | 14% |
| Hawaii | Geico | $24 | $66 | 28% |
| Idaho | State Farm | $18 | $56 | 21% |
| Illinois | Geico | $30 | $69 | 25% |
| Indiana | Geico | $33 | $64 | 8% |
| Iowa | Travelers | $28 | $66 | 9% |
| Kansas | Geico | $25 | $71 | 29% |
| Kentucky | Travelers | $47 | $94 | 18% |
| Louisiana | Geico | $54 | $156 | 21% |
| Maine | Travelers | $28 | $52 | 13% |
| Maryland | Geico | $51 | $89 | 22% |
| Massachusetts | Amica | $35 | $84 | 0% |
| Michigan | Travelers | $25 | $79 | 19% |
| Minnesota | State Farm | $33 | $94 | 4% |
| Mississippi | Travelers | $54 | $105 | 12% |
| Missouri | Travelers | $40 | $81 | 11% |
| Montana | State Farm | $19 | $85 | 34% |
| Nebraska | Geico | $27 | $68 | 0% |
| Nevada | Travelers | $57 | $105 | 24% |
| New Hampshire | Geico | $33 | $61 | 17% |
| New Jersey | Amica | $86 | $152 | 4% |
| New Mexico | Geico | $46 | $95 | 6% |
| New York | Progressive | $34 | $64 | 15% |
| North Carolina | State Farm | $24 | $56 | 33% |
| North Dakota | Geico | $28 | $61 | 9% |
| Ohio | Travelers | $36 | $75 | 1% |
| Oklahoma | Progressive | $29 | $96 | 16% |
| Oregon | Progressive | $46 | $82 | 10% |
| Pennsylvania | Travelers | $30 | $70 | 6% |
| Rhode Island | State Farm | $43 | $88 | 20% |
| South Carolina | Geico | $58 | $112 | 9% |
| South Dakota | Progressive | $14 | $55 | 32% |
| Tennessee | Travelers | $38 | $78 | 15% |
| Texas | State Farm | $41 | $93 | 25% |
| Utah | Geico | $46 | $90 | 23% |
| Vermont | State Farm | $22 | $56 | 23% |
| Virginia | Travelers | $30 | $61 | 15% |
| Washington | Geico | $39 | $96 | 12% |
| West Virginia | Geico | $42 | $92 | 28% |
| Wisconsin | Geico | $20 | $53 | 9% |
| Wyoming | State Farm | $21 | $76 | 21% |
*State rates reflect averages for a 40-year-old male driver with a clean driving record, fair credit, and a 2012 Toyota Camry.
State-specific factors like insurance fraud rates, weather patterns, and litigation environments drive cost variations. Michigan's high rates reflect unlimited PIP medical coverage requirements, while Maine's low rates benefit from rural roads and fewer accidents.
Cheapest Car Insurance for Teens
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.
Car insurance for teens is expensive because drivers aged 16-19 face accident rates that are three times higher than those experienced by older drivers.
| National General | $210 | $459 | 13% |
| State Farm | $225 | $444 | 13% |
| Geico | $225 | $477 | 8% |
| Travelers | $237 | $466 | 8% |
Adding your teen to your existing policy typically costs less than purchasing a standalone policy. Good student discounts (usually 15-25% off) and driver monitoring programs can further reduce premiums for responsible teen drivers. You can also explore which are the cheapest car models to insure for teenagers.
Cheapest Car Insurance for Young Adults
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 choosing comprehensive protection, National General also holds the top spot for full coverage, averaging just $182 per month. GEICO follows closely behind, presenting another strong budget-friendly choice. It costs $94 monthly for liability and $207 for full coverage.
| National General | $88 | $182 | 29% |
| Geico | $94 | $207 | 21% |
| Travelers | $115 | $228 | 10% |
| State Farm | $123 | $253 | 1% |
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.
Cheapest Car Insurance for Seniors
GEICO provides the most affordable car insurance for seniors seeking 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.
| Geico | $83 | $171 | 13% |
| Amica | $89 | $187 | 6% |
| National General | $90 | $167 | 12% |
| State Farm | $95 | $189 | 3% |
Cheapest Military Car Insurance
USAA is the most affordable car insurance company for military members, veterans, and their families. With minimum coverage starting at just $335 annually and an average monthly premium of $28, USAA's military-exclusive pricing creates savings of $303 annually compared to the national average.
Data filtered by:
Minimum Coverage
| USAA | $28 | $335 | 48% |
| Geico | $43 | $514 | 19% |
| National General | $48 | $580 | 9% |
| Travelers | $50 | $597 | 6% |
*USAA membership requires military affiliation (active duty, veterans, or family members), and it also offers specialized benefits like deployment discounts and storage coverage during periods of non-use.
Cheapest High Risk Car Insurance
Drivers with a poor record pay higher premiums, but State Farm is the cheapest auto insurer for those with a risky driving history. The insurer consistently offers rates 31-42% more affordable than national averages.
- Accident ($1k-$1.99k Prop Damage): State Farm's pricing is 42% below the typical average, with minimum coverage costing just $123 per month.
- Speeding (11-15 MPH > Limit): 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 right insurer.
- DUI Convictions: Even for the most costly violation, State Farm is cheapest, priced 31% lower than the average, with minimum coverage at $141 per month.
CERTAIN CAR MODELS ARE ALSO CONSIDERED RISKY
It's not just drivers who are considered high risk. Car models can be too. Insurers will charge higher rates for faster cars or those with higher repair costs. MoneyGeek doesn't recommend buying a different car to get cheaper insurance, but it's useful to know which models have higher and lower rates. If you drive a pickup truck or sports car, rates can vary by insurer. Finding the cheapest car models to insure can help offset higher premiums for high-risk drivers.
Cheapest Bad Credit Car Insurance
Nationwide is the most affordable company for drivers with bad credit, with premiums starting at $165. The company undercuts typical rates by 29%, with annual reductions of $1,974 compared to what credit-challenged drivers typically pay.
Nationwide again offers the lowest premiums for full coverage at $164 monthly. Farmers provides competitive rates for bad credit drivers seeking full coverage. Annual savings through the insurer reach $2,289. Its full coverage premiums at $203 per month run 17% below the national average.
| Nationwide | $165 | $164 | 29% |
| Farmers | $179 | $203 | 17% |
| GEICO | $183 | $195 | 18% |
| Travelers | $190 | $208 | 14% |
| Allstate | $214 | $227 | 4% |
In states where credit-based insurance scoring is legal, poor credit (scores below 580) can increase premiums by 50-100%. California, Hawaii, and Massachusetts prohibit insurers from using credit scores in rate calculations. If you're a low income driver looking for cheap car insurance, you might also see whether your state offers any assistance programs.
How to Get Cheap Car Insurance
To find an affordable car insurance company, match your driver profile to insurers that focus on your demographic, compare regional and national providers in your state, explore discount programs you qualify for, review pricing based on coverage type, and check state-specific performance rankings.
Choosing an inexpensive provider involves assessing average insurance costs based on your driver profile and coverage requirements. These five factors help you identify which companies offer the best rates for your situation.
- 1Identify Companies Specializing in Your Driver Profile
Shopping for affordable car insurance means matching your driver profile with insurers that specialize in your demographic. Start by identifying whether you're a teen, young adult, senior, military member, or high-risk driver, and then focus on companies with a proven track record in your category.
- 2Compare Regional vs. National Providers
Check if regional companies operate in your state before relying on national carriers. Availability is key; the cheapest insurer can differ depending on your location. Regional insurers like Capital Insurance Group and Auto-Owners Insurance Co. offer rates 28% to 34% below national averages in specific markets.
- 3Evaluate Each Company's Discount Programs
Discount programs vary widely between insurers—State Farm emphasizes bundling discounts (10-25% off) for homeowners and households with multiple vehicles, while GEICO targets military members, federal employees, and low-mileage drivers. Common discounts include good student (15-25%), safe driver (20-30%), and multi-policy savings.
- 4Review Company Pricing by Coverage Type
Choose companies based on your specific coverage needs since some insurers excel at minimum coverage while others offer better full coverage rates. The cheapest company also changes by state—State Farm leads in 18 states while GEICO leads in 16 others. Use state comparison tables and MoneyGeek's car insurance calculator to estimate costs based on your individual factors before requesting formal quotes. Understanding how much car insurance you need helps you balance cost with adequate protection.
- 5Check State-Specific Company Performance
The cheapest company changes by state. State Farm offers the lowest rates in 18 states, while GEICO leads in 16. Nationwide, Progressive, Farmers, Allstate and Travelers dominate specific regional markets. Use state comparison tables to identify which company performs best in your jurisdiction.
Cheapest Auto Insurance Companies: Bottom Line
The most economical car insurance company varies by individual circumstances, but GEICO offers competitive rates across multiple driver profiles—particularly for liability coverage at $43/month and seniors at $83/month. Travelers provides excellent value for full coverage at $97/month, while USAA remains unbeatable for military families at $28/month for minimum coverage.
Start by requesting quotes from three to five insurers matching your driver profile, then compare bundling discounts if you own a home, since multi-policy savings typically reduce premiums by 10-25%. Learning how to switch car insurance companies makes transitioning to a cheaper provider straightforward.
Cheap Car Insurance: FAQ
We answer common questions about saving money on car insurance to help you find the cheapest policy:
Is Cheap Car Insurance Worth It?
Finding affordable coverage is budget-friendly, but the absolute lowest price does not always provide the best value. Companies offering lower rates may cut corners when you need to file a claim.
Be aware of slow claims processing, limited customer service, and fewer coverage options. Your policy covers damage only up to your limit, meaning you remain responsible for anything beyond that amount in a serious accident. Remember that insurance fraud costs the average family between $400 and $700 per year in premiums.
How can I find the cheapest car insurance in my state?
Shopping around is the best way to find the cheapest car insurance company no matter where you live. GEICO has the lowest rates for most states and drivers. The most affordable insurer for you depends on your unique profile, so compare quotes from multiple cheap car insurance companies.
What's the lowest you can pay for car insurance?
Minimum coverage policies meeting your state's requirements are typically the cheapest car insurance available. GEICO's minimum coverage rates start at $43 per month, though your actual rate depends on your location and driver profile.
Which states have the cheapest car insurance?
Maine, Vermont and Idaho have the lowest car insurance rates due to lower population density, fewer claims and favorable regulations.
Can bundling policies reduce the cheapest car insurance rates?
Bundling auto and home insurance with the same company provides 10% to 25% discounts, making it one of the most effective ways to reduce your car insurance rates.
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Affordable Auto Insurance Rates: Related Pages
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Centers for Disease Control and Prevention. "Risk Factors for Teen Drivers." Accessed June 27, 2025.
- Centers for Disease Control and Prevention. "Older Adult Drivers." Accessed June 27, 2025.