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: October 23, 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% |
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% |
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% to 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.
Cheapest Car Insurance for Teens
Car insurance for teens is expensive due to the driver's lack of experience and higher risk. 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 $444. National General follows closely for full coverage at $459 per month.
| National General | $210 | $459 | 13% |
| State Farm | $225 | $444 | 13% |
| Geico | $225 | $477 | 8% |
| Travelers | $237 | $466 | 8% |
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% |
Cheapest Car Insurance for Seniors
Insurance costs can climb for older drivers due to increased health risks. GEICO provides the most affordable insurer 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.
| 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% |
Cheapest High Risk Car Insurance
High-risk drivers pay substantially higher premiums, but State Farm is the cheapest auto insurer for major infractions. The insurer consistently offers the most outstanding value, with 31% to 42% more affordable rates than the 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.
- 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.
Cheapest Bad Credit Car Insurance
Nationwide is the most affordable company for drivers with bad credit, premiums start 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% |
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 insurance provider involves assessing options 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
Match your profile with companies known for competitive pricing in your category instead of choosing based on brand recognition alone. State Farm offers the lowest rates for minimum coverage, teens, young drivers, and high-risk drivers. GEICO provides the most affordable full coverage nationwide.
- 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 availability differs significantly between insurers. State Farm emphasizes bundling discounts for homeowners and multi-car households. GEICO targets military members, federal employees and low-mileage drivers. Review which company’s discount programs align with your qualifications to maximize savings.
- 4Review Company Pricing by Coverage Type
Choose companies based on the specific coverage level you need. Some insurers excel at minimum coverage, while others offer better full coverage rates. GEICO offers the most affordable full coverage rates at $112 monthly nationwide, while State Farm matches GEICO’s minimum coverage policies starting at $106 per month.
- 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.
- 6Avoid Car Insurance Scams
Car insurance scams target drivers through fake companies, staged accidents and dishonest agents who collect premiums without providing real coverage. Fraudsters often lure victims with prices below market rates, then disappear when it's time to pay claims.
Protect yourself by verifying licenses, recognizing warning signs and knowing where to report suspicious activity. Follow these steps to avoid falling victim to insurance fraud.
LOW-INCOME CAR INSURANCE AND COST-SAVING TIPS
If you need the absolute lowest rate, focus on minimum coverage and maximizing savings.
- State Minimum Coverage: Opting for state minimum liability-only coverage is the lowest price you can pay. However, this leaves you financially responsible for severe accidents. Check your state's minimum car insurance requirements.
- High Deductible: Raising your deductible to $1,000 or more will lower your monthly premium. Ensure you can easily afford the deductible if you need to file a claim.
- Shop Annually: Compare quotes from multiple insurers at least once a year to ensure you get the best profile price.
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. Travelers provides excellent value for low-budget full coverage, while USAA is the most affordable for military families.
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 makes sense for your budget, but the lowest price doesn't always provide the best value. Companies offering rates far below competitors might cut corners on important areas when you need to file a claim.
- Slow claims processing: Budget providers sometimes take weeks or months to handle claims, leaving you without transportation, while established companies generally process claims faster through larger networks of repair shops and adjusters.
- Limited customer service: Insurers offering rock-bottom rates may have smaller support teams, leading to longer hold times and less personalized assistance when you need help with your policy.
- Fewer coverage options: Many budget insurers provide basic liability policies without add-ons like roadside assistance or rental car reimbursement, which can protect you from costly out-of-pocket expenses after an accident.
- Financial risk with minimum coverage: Your policy covers damages only up to your limit, and you're responsible for anything beyond that amount in a serious accident.
- Hidden fraud costs: According to the FBI, insurance fraud costs the average family between $400 and $700 per year in premiums, meaning you're already paying for other people's fraudulent claims no matter which insurer you choose.
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.