Cheap car insurance is a goal for almost every driver, but understanding who typically secures the lowest rates can help you navigate the complex world of auto insurance. While “cheap” doesn’t always mean “best,” knowing which factors influence premiums can empower you to find affordable coverage without sacrificing essential protection.
This guide breaks down which driver profiles and circumstances often lead to the most affordable car insurance rates. By understanding these trends, you can better assess your own situation and take steps to potentially lower your insurance costs.
Cheapest Car Insurance Companies Overall
While individual rates vary, some companies consistently appear at the top for offering competitive prices. Based on extensive analysis of car insurance quotes, companies like USAA, West Bend Mutual, Auto-Owners, and Erie are frequently cited for providing some of the cheapest car insurance options across both minimum and full coverage policies.
| Cheapest Car Insurance Company* | Average Monthly Minimum-Coverage Rate | Average Monthly Full-Coverage Rate |
|---|---|---|
| USAA** | $38 | $135 |
| West Bend Mutual | $40 | $151 |
| Auto-Owners | $41 | $167 |
| Erie | $44 | $168 |
| Geico | $44 | $165 |
| Shelter Insurance | $49 | $184 |
| Travelers | $55 | $161 |
| State Farm | $59 | $220 |
| Progressive | $61 | $211 |
| Country Financial | $62 | $182 |
*We recognize that the absolute cheapest doesn’t always mean the best. Every provider with cheap rates featured in this review received an overall rating of 4.3 stars or higher in our industry review and serves 10 or more states.
**USAA only offers car insurance coverage to military members, veterans and their families.
It’s important to remember that these are average rates. Your specific premium will depend on a range of personal factors. Let’s explore who typically benefits from the cheapest car insurance.
Cheapest Car Insurance by Age Group
Age is a significant factor in determining car insurance premiums. Statistically, younger and older drivers are considered higher risk, though for different reasons.
Cheap Car Insurance for Teens
Teen drivers, due to their lack of experience, face significantly higher insurance rates.
National Average Minimum-Coverage Rate for Teens: $235 per month
National Average Full-Coverage Rate for Teens: $474 per month
For teen drivers seeking minimum coverage, Erie often provides some of the most affordable premiums. For full coverage, Farmers can be a cost-effective option.
| Cheap National Car Insurance Provider | Average Monthly Minimum-Coverage Rate |
|---|---|
| Erie | $118 |
| Auto-Owners | $151 |
| West Bend Mutual | $160 |
| Shelter Insurance | $173 |
| Geico | $184 |
| Cheap National Car Insurance Provider | Average Monthly Minimum-Coverage Rate |
|---|---|
| Farmers | $326 |
| West Bend Mutual | $424 |
| Erie | $441 |
| Auto-Owners | $442 |
| Geico | $463 |
Cheap Car Insurance for Young Adults
As drivers gain experience, rates tend to decrease. Young adults, while still statistically riskier than older adults, see some relief compared to teen rates.
National Average Minimum-Coverage Rate for Young Adults: $73 per month
National Average Full-Coverage Rate for Young Adults: $229 per month
USAA stands out as the cheapest for young adults who qualify (military-affiliated). For others, West Bend Mutual Insurance is often a budget-friendly choice.
| Cheap National Car Insurance Provider | Average Monthly Minimum-Coverage Rate |
|---|---|
| USAA | $44 |
| West Bend Mutual | $49 |
| Geico | $50 |
| Erie | $55 |
| Travelers | $57 |
| Cheap National Car Insurance Provider | Average Monthly Minimum-Coverage Rate |
|---|---|
| USAA | $153 |
| West Bend Mutual | $158 |
| Travelers | $170 |
| Geico | $178 |
| Erie | $209 |
Cheap Car Insurance for Adults
Adult drivers, particularly those in their 30s, 40s, and 50s, typically enjoy the lowest car insurance rates due to their driving experience and maturity.
National Average Minimum-Coverage Rate for Adults: $60 per month
National Average Full-Coverage Rate for Adults: $199 per month
Again, USAA and West Bend Mutual are top contenders for cheap car insurance for adult drivers.
| Cheap National Car Insurance Provider | Average Monthly Minimum Car Insurance Rates |
|---|---|
| USAA | $38 |
| West Bend Mutual | $40 |
| Auto-Owners | $41 |
| Erie | $44 |
| Geico | $44 |
| Cheap National Car Insurance Provider | Average Monthly Minimum Car Insurance Rates |
|---|---|
| USAA | $135 |
| West Bend Mutual | $151 |
| Travelers | $161 |
| Geico | $165 |
| Auto-Owners | $167 |
Cheap Car Insurance for Seniors
Senior drivers, generally those over 65, may see rates start to increase again, although not as drastically as for teen drivers. This is often due to age-related factors that can affect driving ability.
National Average Minimum-Coverage Rate for Seniors: $73 per month
National Average Full-Coverage Rate for Seniors: $207 per month
Shelter Insurance and USAA are often competitive for minimum coverage for seniors. For full coverage, USAA and Travelers are worth considering.
| Cheap National Car Insurance Provider | Average Monthly Minimum-Coverage Rate |
|---|---|
| Shelter Insurance | $48 |
| USAA | $48 |
| Erie | $50 |
| Auto-Owners | $54 |
| Geico | $54 |
| Cheap National Car Insurance Provider | Average Monthly Minimum-Coverage Rate |
|---|---|
| USAA | $141 |
| Travelers | $160 |
| West Bend Mutual | $167 |
| Shelter Insurance | $170 |
| Geico | $176 |
Cheapest Car Insurance for “Good Drivers”
Beyond age, a clean driving record is paramount for securing cheap car insurance. “Good drivers” are those with:
- No accidents: Accidents, even if not your fault, can raise premiums.
- No traffic violations: Speeding tickets, DUIs, and other violations signal higher risk to insurers.
- Good credit score: In many states, credit score impacts insurance rates. Better credit often means lower premiums.
Drivers who fit this profile are generally rewarded with the most affordable rates. Companies like USAA, West Bend Mutual, and Auto-Owners frequently offer excellent rates to good drivers.
Cheapest Car Insurance for High-Risk Drivers (Finding Savings When It’s Tough)
“High-risk” drivers, due to factors like accidents, violations, or poor credit, typically face higher premiums. However, even within this category, some insurers are more affordable than others.
Cheapest Car Insurance With Bad Credit
National Average Minimum-Coverage Rate for Bad Credit: $117 per month
National Average Full-Coverage Rate for Bad Credit: $293 per month
USAA and West Bend Mutual often offer the cheapest rates for drivers with bad credit. Geico and Travelers are also options to consider.
| Cheap National Car Insurance Provider | Average Monthly Minimum-Coverage Rate |
|---|---|
| USAA | $66 |
| West Bend Mutual | $66 |
| Geico | $72 |
| Erie | $89 |
| Travelers | $104 |
| Cheap National Car Insurance Provider | Average Monthly Full-Coverage Rate |
|---|---|
| West Bend Mutual | $218 |
| USAA | $237 |
| Geico | $238 |
| Travelers | $255 |
| Country Financial | $278 |
Cheapest Car Insurance With a Recent DUI
National Average Minimum-Coverage Rate With a DUI: $105 per month
National Average Full-Coverage Rate With a DUI: $285 per month
USAA and Progressive can be relatively cheaper for drivers with a DUI, depending on military affiliation. Travelers may offer more affordable full coverage in these situations.
| Cheap National Car Insurance Provider | Average Monthly Minimum-Coverage Rate |
|---|---|
| USAA | $75 |
| Progressive | $77 |
| Shelter Insurance | $82 |
| State Farm | $84 |
| West Bend Mutual | $84 |
| Cheap National Car Insurance Provider | Average Monthly Full-Coverage Rate |
|---|---|
| Travelers | $208 |
| State Farm | $238 |
| American Family | $257 |
| Country Financial | $261 |
| USAA | $262 |
Cheapest Car Insurance With an Accident
National Average Minimum-Coverage Rate With an Accident: $91 per month
National Average Full-Coverage Rate With an Accident: $273 per month
West Bend Mutual and USAA often provide cheaper options for drivers with a recent accident. Travelers can also be competitive for full coverage.
| Cheap National Car Insurance Provider | Average Monthly Minimum-Coverage Rate |
|---|---|
| West Bend Mutual | $56 |
| USAA | $57 |
| Auto-Owners | $62 |
| Erie | $67 |
| Shelter Insurance | $69 |
| Cheap National Car Insurance Provider | Average Monthly Full-Coverage Rate |
|---|---|
| USAA | $196 |
| Travelers | $219 |
| West Bend Mutual | $220 |
| American Family | $229 |
| Shelter Insurance | $230 |
Cheapest Car Insurance With a Speeding Ticket
National Average Minimum-Coverage Rate With a Speeding Ticket: $76 per month
National Average Full-Coverage Rate With a Speeding Ticket: $242 per month
USAA and Erie are often among the cheapest insurers for drivers with speeding tickets.
| Cheap National Car Insurance Provider | Average Monthly Minimum-Coverage Rate |
|---|---|
| USAA | $46 |
| Erie | $48 |
| West Bend Mutual | $52 |
| Shelter Insurance | $56 |
| Auto-Owners | $59 |
| Cheap National Car Insurance Provider | Average Monthly Full-Coverage Rate |
|---|---|
| USAA | $164 |
| Erie | $187 |
| West Bend Mutual | $198 |
| Shelter Insurance | $203 |
| Travelers | $205 |
Cheapest Car Insurance by State
Car insurance rates also vary significantly by state due to different regulations, population density, and other factors. Here’s a glimpse at the cheapest companies in each state:
| State | Average Monthly Minimum-Coverage Car Insurance Cost | Average Monthly Full-Coverage Car Insurance Cost | Cheapest Car Insurance Company |
|---|---|---|---|
| Alabama | $53 | $179 | Geico |
| Alaska | $37 | $164 | USAA |
| Arizona | $69 | $210 | Geico |
| Arkansas | $47 | $199 | USAA |
| California | $60 | $248 | Geico |
| Colorado | $47 | $237 | American National Insurance |
| Connecticut | $99 | $214 | Geico |
| Delaware | $101 | $215 | Travelers |
| District of Columbia | $89 | $257 | Chubb |
| Florida | $127 | $290 | Geico |
| Georgia | $76 | $215 | Auto-Owners |
| Hawaii | $37 | $131 | Geico |
| Idaho | $36 | $139 | Geico |
| Illinois | $53 | $174 | Erie |
| Indiana | $41 | $157 | USAA |
| Iowa | $28 | $169 | Farmers |
| Kansas | $45 | $188 | USAA |
| Kentucky | $68 | $217 | Farm Bureau |
| Louisiana | $90 | $301 | Farm Bureau |
| Maine | $37 | $128 | USAA |
| Maryland | $80 | $186 | USAA |
| Massachusetts | $52 | $157 | State Farm |
| Michigan | $77 | $227 | Travelers |
| Minnesota | $49 | $197 | Auto-Owners |
| Mississippi | $43 | $173 | National General |
| Missouri | $55 | $210 | USAA |
| Montana | $43 | $205 | USAA |
| Nebraska | $33 | $190 | Farmers |
| Nevada | $118 | $264 | USAA |
| New Hampshire | $42 | $134 | Hanover Insurance |
| New Jersey | $115 | $232 | Geico |
| New Mexico | $45 | $186 | Central Insurance |
| New York | $93 | $202 | NYCM |
| North Carolina | $57 | $195 | State Farm |
| North Dakota | $39 | $186 | USAA |
| Ohio | $39 | $138 | Erie |
| Oklahoma | $47 | $217 | USAA |
| Oregon | $83 | $188 | USAA |
| Pennsylvania | $43 | $210 | Westfield Insurance |
| Rhode Island | $82 | $217 | USAA |
| South Carolina | $60 | $182 | American National Insurance |
| South Dakota | $37 | $208 | Farmers |
| Tennessee | $45 | $174 | USAA |
| Texas | $65 | $236 | State Farm |
| Utah | $78 | $205 | USAA |
| Vermont | $33 | $122 | USAA |
| Virginia | $54 | $152 | Farm Bureau |
| Washington | $49 | $173 | PEMCO Insurance |
| West Virginia | $53 | $202 | Westfield Insurance |
| Wisconsin | $38 | $167 | Erie |
| Wyoming | $24 | $140 | Geico |
How to Get Even Cheaper Car Insurance Rates
Regardless of your driver profile, you can take steps to lower your car insurance costs:
- Determine Your Needs Before You Buy: Understand the coverage you actually need to avoid overpaying. Consider your risk tolerance and assets when deciding between minimum liability and full coverage.
- Review Your Coverage Regularly: Car insurance costs are rising. Shop around and compare quotes from different companies at least once a year, and especially when you experience life changes.
- Improve Your Credit Score: In many states, a better credit score translates to lower premiums.
- Take Advantage of Discounts and Incentives: Inquire about common discounts like bundling home and auto insurance, multi-car discounts, safe driver discounts, and telematics programs.
Risks of Getting Only the Cheapest Car Insurance
While saving money is important, solely focusing on the absolute cheapest car insurance can have drawbacks:
- Minimum Coverage Risks: Lower coverage limits may not adequately protect you financially in a serious accident.
- Customer Service Concerns: Cheaper insurers may sometimes lack the customer service and claims support of more established companies.
- Slower Claims Processing: Delayed claims can be a major inconvenience and financial burden.
- Limited Resources and Tools: Budget insurers may not offer the same level of online tools and mobile app convenience.
- Fewer Coverage Options: Essential add-ons like roadside assistance might be missing from the cheapest policies.
“Major factors that drivers should consider when comparing car insurance quotes are the types of coverage — including liability, collision, comprehensive and uninsured motorist coverage — policy limits, deductibles, an insurer’s financial strength and the quality and reputation of its claims service.”
Cheap Car Insurance: FAQ
Who offers the cheapest car insurance overall?
USAA and West Bend Mutual are frequently cited as offering the cheapest minimum and full coverage on average. However, the cheapest company for you depends on individual factors.
What type of car insurance is the cheapest?
Minimum-coverage policies are the cheapest as they meet only the state’s minimum legal requirements. However, they provide less financial protection.
Which age group typically pays the least for car insurance?
Drivers around 55 years old often see the lowest rates, regardless of driver profile.
Is Geico or Progressive cheaper?
Geico is often cheaper for many drivers, but Progressive can be competitive for high-risk drivers.
Which is the largest car insurance company in the U.S.?
State Farm is the largest auto insurer in the U.S.
Our Methodology: Ranking U.S. Car Insurance Providers
Car Insurance MethodologyBecause consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Cost and Discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities are both taken into consideration.
- Industry Standing (20% of total score): Our research team considers market share, ratings from industry experts and years in business when giving this score.
- Customer Experience (15% of total score): This score is based on volume of complaints reported by the National Association of Insurance Commissioners (NAIC) and customer satisfaction ratings reported by J.D. Power. We also consider the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements score highest in this category.
Our credentials:
- 800+ hours researched
- 130+ companies reviewed
- 8,500+ consumers surveyed
How We Determined the Cheapest Car Insurance Providers
We based our national rankings on the average car insurance costs of a 35-year-old driver with good credit and a clean driving record for both minimum and full coverage. Coverage for liability estimates are based on minimum requirements in each state, and full-coverage estimates are based on a 50/100/50 policy that includes:
- $50,000 in bodily injury coverage per person
- $100,000 in bodily injury coverage per accident
- $50,000 in property damage coverage per accident
- $500 deductible
In the spirit of quality control, we filtered out insurance providers that don’t meet the standards we uphold for our readers. Every company you see mentioned in this article has been thoroughly researched, evaluated and approved by our insurance researchers.
*Data accurate at time of publication.
If you have feedback or questions about this article, please email our team at [email protected].
