Cheapest Car Insurance Companies
- State Farm is the cheapest car insurance company among large insurers, with an average minimum rate of $39 per month.
- American National has the cheapest auto insurance among midsize companies, with an average rate of $27 per month.
- Insurer availability varies, but State Farm is the cheapest option, on average, for drivers in a half dozen states.
State Farm is the most affordable car insurance company overall, with an average monthly rate of just $39 for minimum coverage. Additionally, it emerged as the most economical option for cheap full coverage auto insurance in our analysis.
Check out the table below to find the cheapest car insurance company for each category we analyzed.
| Cheapest by category | Company | Average monthly rate |
|---|---|---|
| State Farm | $39 | |
| American National | $27 | |
| State Farm | $46 | |
| State Farm | $51 | |
| Progressive | $60 | |
| Geico | $57 | |
| Geico | $79 | |
| State Farm | $38 |
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The cheapest car insurance Companies: State Farm
State Farm was found to be the most affordable major auto insurance provider in the country for safe drivers, as per chequepay’s 2024 study on minimum coverage premiums. With an average yearly rate of $471, or roughly $39 per month, State Farm also received a top-notch 5-star rating from chequepay. Check out our detailed State Farm auto insurance review to discover more about their offerings.
Cheapest auto insurance from the largest companies
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| $471 | $39 | |
| $491 | $41 | |
| $520 | $43 | |
| $785 | $65 | |
| $362 | $30 |
The cheapest midsize car insurance company: American National
You don’t have to settle for big insurance companies to find affordable car insurance. Smaller insurers like American National, Auto-Owners, and Erie, which provide coverage in several states, actually offer lower rates than State Farm.
Midsize insurers might offer better prices for auto insurance compared to larger companies, although availability could be restricted.
Cheapest car insurance after a DUI: Progressive
A DUI on your driving record can greatly increase how much you pay for car insurance. According to our analysis, Progressive tops the list of cheap car insurance companies after a DUI, at $716 per year, or $60 per month, on average.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| $800 | $67 | |
| $716 | $60 | |
| $884 | $74 | |
| $889 | $74 | |
| $670 | $56 |
Cheapest auto insurance for poor credit: Geico
Insurers often take credit-based insurance scores into consideration when determining car insurance rates, which may result in higher premiums for those with poor credit.
California, Hawaii, and Massachusetts have regulations in place that prohibit the use of credit scores in determining car insurance rates.
Having a low credit score can significantly affect how much you pay for car insurance. On average, drivers with poor credit may end up paying more than $300 extra each year compared to those with good credit.
If you’re searching for budget-friendly auto insurance from a major provider, Geico could be a great option to consider if your credit is less than perfect. According to our research on top insurance companies, Geico offers the most competitive rates for safe drivers with poor credit, averaging $689 annually or $57 monthly.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| $802 | $67 | |
| $689 | $57 | |
| $871 | $73 | |
| $872 | $73 | |
| $597 | $50 |
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Cheapest car insurance for young drivers
Being a young driver can make it difficult to find affordable car insurance. Insurance companies tend to see drivers without much experience as higher risks to insure. The same applies to those with gaps in their insurance coverage, immigrants, and visitors to the U.S.
Young drivers often struggle to find affordable car insurance. This is because insurance companies consider those without a recent driving history to be more of a risk to insure. The same applies to drivers who have had a gap in their car insurance coverage, as well as immigrants and visitors to the U.S.
How to get cheap car insurance
Want to cut costs on car insurance? Check out these six money-saving tips!
- Compare quotes from multiple insurers.
- Ask for discounts. Did you know you could potentially save money on car insurance by taking advantage of discounts you might not even realize you qualify for? For instance, if you work from home and don’t drive much, you could be eligible for a low-mileage discount. Other common discounts include bundling car insurance with homeowners insurance, insuring multiple cars on the same policy, and being a student.
- Cash in on major life changes. Whenever there are significant changes in your life, it’s worth considering how they could potentially affect your car insurance rates. Take the opportunity to shop around for quotes and explore the possibilities of cheaper coverage. For example, if you recently got married or became domestic partners, many insurance companies offer lower rates for couples in such situations. Similarly, if you’ve relocated to a suburb with lower accident and crime rates, you might be eligible for reduced premiums. Even if you moved to a pricier area for car insurance, don’t forget to compare options as it could still lead to finding more affordable coverage.
4- Raise your deductible. By opting for a higher deductible, you will have to pay more from your pocket before your insurance covers a claim. However, the advantage is that increasing your deductible often leads to a reduction in your premium. Just ensure that you have sufficient funds saved up to cover the higher deductible in case you find yourself in an unfortunate accident.
5- Revisit quotes after your driving record improves. By opting for a higher deductible, you will have to pay more from your pocket before your insurance covers a claim. However, the advantage is that increasing your deductible often leads to a reduction in your premium. Just ensure that you have sufficient funds saved up to cover the higher deductible in case you find yourself in an unfortunate accident.
6- Reconsider the car you drive. The car you own plays a significant role in determining your auto insurance premium. For instance, newer and pricier vehicles generally result in higher insurance costs compared to older or more affordable cars, along with other contributing factors.
Risks of getting cheap car insurance
Opting for inexpensive car insurance often entails selecting the minimum coverage mandated by state law. However, these requirements may offer limited protection and could leave you exposed to financial risk in the event of a major collision.
In Florida, you must have at least $10,000 of property damage liability insurance. This insurance is mandatory in almost all states and covers the expenses for any damage you cause to someone else’s property, such as their car. So, if you reside in Florida, have the minimum coverage, and end up causing a total loss to another person’s vehicle in an accident, you’ll be responsible for any costs exceeding $10,000.
Finding affordable car insurance with additional coverage options can provide better protection in case of accidents or damage to your vehicle.
Frequently asked questions
Exploring different car insurance quotes is a great way to discover affordable auto insurance. Maintaining a good credit score and a spotless driving history can help in keeping your premiums down. Don’t forget to inquire about any discounts that you may not be taking advantage of in your current policy.
According to a separate chequepay analysis of the cheapest cars to insure, the Subaru Outback and Crosstrek, Honda CR-V and Mazda CX-5 were the cheapest on average. Insurance companies typically consider theft rates, repair costs and how likely a car’s occupants and others involved in a crash will be injured when coming up with rates. If you’re in the market for a new ride and want to keep insurance rates low, avoid sports cars, high-end luxury cars and cars most likely to be stolen.
The ideal car insurance provider is the one that fits your needs perfectly. Remember, the lowest price doesn’t always mean the best coverage. A great insurer will prioritize customer service, whether you’re looking for a quote or making a claim. Explore chequepay’s top car insurance companies for more options.
State Farm tops the list of cheapest car insurance companies in the U.S., according to chequepay’s analysis of minimum coverage rates for good drivers. Geico came in second place, with an average rate of $41 per month, while Travelers came in third, at $43 per month.
Teens and young drivers typically face higher car insurance rates compared to other age groups. However, as they gain more experience behind the wheel, these rates gradually decrease. Based on a separate analysis by chequepay, young drivers can expect a significant drop in rates around the age of 25. Generally, insurance rates continue to decline as individuals enter adulthood, but they may start to rise again once they reach the age of 70, with a more noticeable increase around 75.