Updated: August 19, 2025
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Shop around and adjust coverage to save hundreds annually. Travelers offers the cheapest full coverage on average at $1,161 yearly, while dropping collision and comprehensive on older cars saves money without losing liability protection.
State assistance programs and flexible payment options help drivers stay insured legally. California's Low-Cost Automobile Insurance Program and New Jersey's dollar-a-day coverage provide affordable options for drivers who qualify.
Usage-based insurance and higher deductibles offer immediate premium relief. Drivers who travel less than 8,000 miles yearly can save 10% to 40% with pay-per-mile programs.
Many drivers feel overwhelmed by rising premiums. The good news is you can lower your insurance costs without sacrificing essential financial protection. Some steps, like comparing quotes, take just minutes. Improving your credit score or clearing driving violations from your record takes longer, anywhere from a few months to a year.
Rate availability and savings vary by state, insurer, and individual circumstances.
Do not cancel your car insurance, even if you’re struggling to pay. Driving uninsured is illegal in most states and can lead to hefty fines, license suspension, or worse, financial ruin after an accident. Instead, explore lower coverage options, discounts, or state assistance programs to keep some level of protection in place.
Insurance rates vary by company, so compare quotes from multiple car insurance companies to find a better deal. Even if you've been with the same insurer for years, you could find better deals elsewhere.
The table below shows the cheapest full coverage options of the companies MoneyGeek surveyed for different driver profiles.
Based on MoneyGeek's analysis of major insurers. Your actual rates may vary based on location, driving record, and other factors.
| Overall | Geico | $522 | $1,179 |
| Newer Cars | Travelers | $590 | $1,153 |
| After a Speeding Ticket | Geico | $666 | $1,578 |
| Seniors | Geico | $673 | $1,452 |
| Military | USAA | $749 | $1,839 |
| After an Accident | Travelers | $822 | $1,644 |
| Bad Credit | National General | $841 | $1,847 |
| DUI | Travelers | $937 | $1,897 |
| Young Drivers | Geico | $1,265 | $2,890 |
Car insurance discounts can cut your premium. You could qualify for discounts based on your:
Personal factors like your age and location may qualify you for discounts.
Discounts are available for having common safety features, such as airbags, antilock brakes and anti-theft systems.
Insurers offer hefty discounts to those who remain accident-free and have a good driving record.
Bundling your policy with other insurance, such as home or health coverage, can earn you significant discounts from insurers.
If you're struggling with upfront costs, explore these payment flexibility options:
Discounts can reduce your premiums, but the final quote matters most. Companies with many discounts may not offer the lowest prices. Comparing rates and offers from multiple insurers helps you find the most affordable policy.
If you drive an older car with low market value, paying for collision and comprehensive insurance isn't worth it. These coverages pay to repair or replace your vehicle up to its actual cash value, minus your chosen deductible, but the payout won't justify the cost for a car worth only a few thousand dollars.
For example, if your car's valued at $2,000 and you're paying $600 annually for full coverage, dropping collision and comprehensive while keeping liability insurance (coverage that pays for damage and injuries you cause to others) could save you money. Liability coverage, required in most states, covers damage you cause to others. Unlike collision and comprehensive coverage, liability coverage doesn't have a deductible you pay.
Important considerations before dropping coverage:
You must maintain full coverage (liability + comprehensive + collision) as required by your lender or leasing company. Driving without required coverage can result in repossession.
If you owe more than your car's value, gap insurance (which covers the difference between what your car is worth and what you owe on your loan) protects you from that gap. This costs less through your auto policy ($20 to $40 annually) than through a dealer ($400 to $700).
Before dropping coverage, make sure you have enough savings to replace your vehicle if it's damaged or stolen. If you're struggling to afford insurance, you probably won't be able to replace a totaled car without financial help.
Raising your deductible can provide immediate relief. Here's exactly how much you can save and what to consider before making this move.
Raising your deductible, the amount you pay out of pocket before insurance covers a claim, can help lower your premiums.
Specific cost impact examples:
Only choose a higher deductible if you have enough emergency savings to cover the deductible amount. Consider setting aside the deductible amount in a separate emergency fund so you're prepared for potential claims.
Some insurers offer usage-based and pay-per-mile programs that track your driving habits and mileage, through a mobile app or a device in your car. If you drive less than 8,000 miles a year or follow safe driving practices like avoiding hard braking and speeding, you save 10% to 40% on your premium.
Programs like Progressive's Snapshot and Allstate's Drivewise give discounts to low-mileage and safe drivers. These options are ideal for those who work from home, commute less or drive occasionally.
Some states provide assistance programs for drivers who can't afford car insurance. These programs exist because driving without insurance carries serious legal and financial consequences.
Provides a policy with 10/20/3 coverage limits for drivers who qualify for assistance.
A dollar-a-day program providing medical coverage for low-income drivers.
Hawaii's Aid to the Aged, Blind and Disabled Program (AABD): Provides free auto insurance to seniors and individuals who meet the Social Security Administration's criteria for disability or blindness.
Many other states offer assistance through their insurance departments. Contact your state insurance department about available programs in your area.
Driving without insurance is illegal in most states and creates serious financial and legal problems:
Consequence | What Happens |
|---|---|
Fines and penalties | First-time violations typically cost $300 to $1,000, with repeat offenses reaching $5,000+ in some states. |
License suspension | Most states suspend your license for 30 days to several years, depending on your violation history. |
SR-22 requirements | You'll need to file an SR-22 certificate proving insurance coverage for three to five years, which increases your rates. |
Financial liability | You're personally responsible for all damages and medical bills from accidents you cause. A serious accident can easily cost $100,000+ in medical expenses alone. |
Driving less can help lower your insurance costs. You might also save by sharing a vehicle with a family member and being added as an occasional driver on their policy, which is often cheaper than having your own.
Finding affordable car insurance is straightforward when you know what to look for. This guide provides practical tips to compare options, understand coverage and choose a policy that fits your budget while keeping needed financial protection.
If car insurance is too expensive or hard to find, minimum coverage is the lowest coverage level to consider. The required coverage amount varies by state, so check your state's laws.
While minimum coverage is cheaper, it doesn't provide the protection you need. These policies don't include comprehensive or collision insurance, which cover damage to your vehicle, yourself and passengers in an accident.
Check the table below for the cheapest provider and rates in your state.
Based on MoneyGeek's analysis of major insurers. Your actual rates may vary based on location, driving record, and other factors.
| Alabama | AIG | $22 | $262 |
| Alaska | Geico | $41 | $487 |
| Arizona | Travelers | $41 | $495 |
| Arkansas | Farm Bureau | $32 | $389 |
| California | Geico | $39 | $465 |
| Colorado | American National | $28 | $335 |
| Connecticut | Geico | $34 | $405 |
| Delaware | Travelers | $48 | $571 |
| District of Columbia | Chubb | $31 | $372 |
| Florida | Travelers | $52 | $618 |
| Georgia | Geico | $40 | $482 |
| Hawaii | Geico | $24 | $292 |
| Idaho | State Farm | $18 | $212 |
| Illinois | Geico | $30 | $364 |
| Indiana | Auto Owners | $32 | $385 |
| Iowa | State Farm | $20 | $235 |
| Kansas | Geico | $25 | $302 |
| Kentucky | Travelers | $47 | $560 |
| Louisiana | Geico | $54 | $645 |
| Maine | MMG Insurance | $28 | $334 |
| Maryland | Geico | $51 | $611 |
| Massachusetts | Plymouth Rock Insurance | $23 | $274 |
| Michigan | Travelers | $25 | $301 |
| Minnesota | Westfield Insurance | $20 | $244 |
| Mississippi | Farm Bureau | $37 | $444 |
| Missouri | Auto Owners | $34 | $414 |
| Montana | State Farm | $19 | $232 |
| Nebraska | Farmers Mutual Ins Co of NE | $20 | $235 |
| Nevada | Travelers | $57 | $679 |
| New Hampshire | MMG Insurance | $30 | $366 |
| New Jersey | Plymouth Rock Insurance | $66 | $794 |
| New Mexico | Central Insurance | $32 | $385 |
| New York | NYCM Insurance | $25 | $301 |
| North Carolina | State Farm | $24 | $288 |
| North Dakota | North Star Insurance | $26 | $312 |
| Ohio | Auto Owners | $27 | $324 |
| Oklahoma | Progressive | $29 | $343 |
| Oregon | State Farm | $39 | $464 |
| Pennsylvania | Westfield Insurance | $19 | $232 |
| Rhode Island | State Farm | $43 | $513 |
| South Carolina | American National | $34 | $414 |
| South Dakota | Progressive | $14 | $165 |
| Tennessee | Farm Bureau | $27 | $324 |
| Texas | State Farm | $41 | $497 |
| Utah | Geico | $46 | $549 |
| Vermont | Co-operative Insurance | $16 | $189 |
| Virginia | Travelers | $30 | $360 |
| Washington | State Farm | $38 | $450 |
| West Virginia | Westfield Insurance | $30 | $359 |
| Wisconsin | Geico | $20 | $243 |
| Wyoming | Geico | $15 | $175 |
While MoneyGeek lists the cheapest car insurance options on average, comparing quotes yourself is the best way to find the right option for your needs. The most affordable choice for you depends on factors like your age, location and driving history.
If you don't drive often, pay-per-mile or behavior-based car insurance is more affordable than traditional policies. However, to save with pay-per-mile insurers like Metromile, you must drive less than 26 miles per week.
Here are three types of pay-per-mile insurance:
This type of insurance charges drivers a base rate along with a per-mile fee.
This is where your premiums are based on your driving performance.
Some companies offer a mix of pay-per-mile and behavior-based insurance.
Getting consistently lower insurance rates requires patience, but these strategies deliver the biggest long-term savings. They take months to years to show results, but they're among the most effective ways to reduce your premiums.
Maintaining a good driving record is one of the most effective ways to reduce car insurance premiums. Traffic violations and accidents can increase your rates for three to five years, depending on the severity:
These impacts fade over time. Most violations affect your rates for three to five years, while serious offenses like DUIs can impact rates for up to 10 years.
In most states, insurers use credit-based insurance scores to help determine your rates. Drivers with bad credit still have options for affordable coverage.
Understanding the impact:
Check your credit score monthly through free services. When your score improves by 50+ points, get new insurance quotes to capture potential savings.
Even with accidents on your driving record or a low credit score, some insurers still offer affordable policies. MoneyGeek reviewed the cheapest companies for drivers with bad records or low credit scores.
If you can't make your insurance payment, don't panic. Contact your insurer immediately to discuss options:
Most insurers provide 10 to 30 days to catch up on payments while maintaining coverage.
Many insurers offer hardship programs or payment plans to spread costs over several months.
If your policy lapses, most insurers allow reinstatement within 30 days, which costs less than getting a new policy and maintains your coverage history.
Consider temporarily increasing your deductible or switching to minimum coverage while you get back on your feet.
If you're still struggling, explore non-owner car insurance or alternative transportation until you can afford regular coverage.
Car insurance premiums depend on factors like age, location and coverage levels. Start by comparing quotes, hunting for discounts and considering pay-per-mile policies. By exploring these options, you find a policy that fits your budget and provides the coverage you need.
Struggling to afford car insurance can be tough, but there are strategies to manage costs. Here are common questions about lowering premiums, exploring discounts and understanding alternative coverage options.
If you can't afford car insurance, choose liability-only policies, maximize discounts and apply for pay-per-mile or behavior-based car insurance. Improving your credit score and keeping a good driving record also lower rates over time.
Yes, you still need car insurance if you don't drive often. Every driver needs coverage. If you don't commute daily, getting pay-per-mile insurance makes the most sense.
If you can't afford a down payment, raise your deductible, attend a defensive driving course and insure an older car to lower your car insurance down payment. USAA, GEICO and Nationwide offer the cheapest car insurance and are your best options for low down payment fees.
If you don't pay your car insurance, your policy will cancel after the grace period (10 to 30 days). You'll face legal penalties for driving uninsured, including fines, license suspension and personal financial liability for any accidents you cause.
Yes, most insurers allow you to reinstate your policy within 30 days of cancellation. Reinstatement requires paying what you owe plus any fees, but it costs less than getting a new policy and helps maintain your coverage history.
Yes, you can get car insurance with bad credit, but you'll pay higher rates. Some insurers like GEICO and Progressive are more competitive for drivers with poor credit. Focus on improving your credit score over time to lower your premiums.
Yes, there are government programs to help with car insurance costs. Some states offer assistance programs. California has a low-cost insurance program, New Jersey offers a dollar-a-day medical coverage policy and Hawaii provides free coverage for seniors and disabled individuals who qualify. Contact your state insurance department about available programs.
It’s better to reduce your coverage than cancel it entirely. Lowering your liability limits or removing optional coverages like collision or comprehensive can reduce premiums while still keeping you legally insured.
A lapse in coverage can lead to higher rates later and may make it harder to get insured. You may also face penalties or license suspension if caught driving without insurance. Always try to maintain at least minimum required coverage.
Most insurers don’t allow you to pause coverage, but you may be able to switch to a parked car or storage policy. These offer limited coverage and can be cheaper if your vehicle won’t be driven for an extended time.
Yes, some insurers like GEICO, State Farm and Progressive tend to offer more discounts and competitive rates for budget-conscious drivers. Usage-based insurance options from companies like Root or Metromile may also lower costs for low-mileage drivers.
Start by getting quotes from multiple insurers and using comparison tools. Ask about available discounts, such as bundling or safe driver programs. Consider adjusting your deductible and coverage limits to meet your financial needs.
How We Found the Most Affordable Car Insurance
Car insurance quotes vary wildly between companies, making it hard to know which insurers offer good deals. We designed our research to identify companies that deliver affordable rates without skimping on financial protection.
Our Research Approach
We sourced quote information from Quadrant Information Services and state insurance departments to analyze rates from major insurers nationwide. Our research covers all ZIP codes across the United States, ensuring you see realistic rate comparisons for your specific location.
Sample Driver Profile
We used a standardized profile for consistent comparisons:
Coverage Levels Tested
Full Coverage (100/300/100): $100,000/$300,000/$100,000 liability limits with $1,000 deductibles for comprehensive and collision coverage.
Minimum Coverage: Each state's required liability limits, which vary significantly by location.
Our rate calculations reflect standard discounts but exclude company-specific programs like safe driver monitoring that might not apply to everyone.
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
