Cheapest Car Insurance Companies (February 2023) – NerdWallet

The best way to find cheap car insurance is to shop around and compare quotes from at least three insurers.

Geico is the cheapest for drivers with poor credit.

State Farm is also the cheapest for drivers with a recent speeding ticket, accident or DUI.

State Farm is the cheapest car insurance company overall, with an average rate of $37 a month for minimum coverage.

NerdWallet analyzed auto insurance rates from 154 auto insurance companies nationwide to find the cheapest car insurance for a variety of drivers.

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The cheapest car insurance

The cheapest option will likely be your state’s minimum car insurance requirements, so we focused our analysis on those minimums. In many states, this is liability-only auto insurance, which pays for property damage and others’ medical bills from accidents you cause.

The absolute cheapest rate we found for minimum car insurance was an average of $9 per month, or $108 per year. But how much you pay for car insurance will vary depending on which state you live in and how clean your driving history is, among other factors.

Here are the cheapest car insurance companies overall, plus the cheapest options for several driver types:

• The cheapest car insurance company for good drivers: State Farm at $37 per month, on average.

• The cheapest midsize insurance company: Auto-Owners at $28 per month, on average.

• The cheapest car insurance after a speeding ticket: State Farm at $45 per month, on average.

• The cheapest car insurance after an accident: State Farm at $50 per month, on average.

• The cheapest car insurance after a DUI: State Farm at $68 per month, on average.

• The cheapest car insurance for poor credit: Geico at $73 per month, on average.

If you want the best of the cheapest, check out NerdWallet’s roundup of the best cheap car insurance companies.

How we found the cheapest companies

NerdWallet’s editorial team analyzed minimum coverage car insurance rates from pricing analytics company Quadrant Information Services. Our analysis looked at 35-year-old drivers in all ZIP codes across the 50 U.S. states and Washington, D.C., with a variety of driving and credit histories. All drivers had a 2020 Toyota Camry L.

Another alternative is full coverage, but it can cost almost $1,500 more a year on average than an annual minimum policy. That’s because it comes with additional coverage like uninsured/underinsured motorist protection and comprehensive and collision insurance.

If you have a car loan or lease, your lender will likely require you to buy comprehensive and collision coverage. These coverage types pay out if your car is stolen or damaged in an accident you cause, among other scenarios.

Why you can trust NerdWallet

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate outliers and inaccuracies in pricing data, which include rates from every ZIP code in the country where coverage is offered and data is available. When comparing rates for different coverage amounts, ages and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing. Read our methodology.

The cheapest car insurance company overall: State Farm

State Farm is the cheapest major auto insurance company in the nation for good drivers, according to NerdWallet’s 2023 analysis of minimum coverage rates. State Farm’s average annual rate was $450 or about $37 per month. The company also earned a 5-star rating from NerdWallet, and you can read our State Farm auto insurance review to learn why.

Cheapest auto insurance from the largest companies

Company

Average annual rate

Average monthly rate

State Farm

$450

$37

Travelers

$568

$47

Geico

$603

$50

Nationwide

$673

$56

USAA*

$341

$28

*USAA auto insurance is available only to military, veterans and their families.

The cheapest midsize car insurance company: Auto-Owners

Finding affordable car insurance doesn’t mean you have to stick with large insurance companies. Auto-Owners and Erie, smaller insurers that offer coverage in multiple states, have even cheaper car insurance rates than State Farm.

While availability can be limited, midsize insurers may beat the cheapest auto insurance prices from larger carriers. Plus, according to a 2022 J.D. Power auto insurance shopping study, customers are often satisfied with these companies.

Company

Average annual rate

Average monthly rate

Auto-Owners

$337

$28

Erie

$395

$33

The Hartford

$631

$53

Auto Club of Southern California

$634

$53

National General

$693

$58

We chose these companies because of their relatively low rates and availability in multiple states. But there may be more affordable auto insurance options where you live.

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Cheapest car insurance after a speeding ticket: State Farm

A speeding ticket on your driving history will likely increase how much you pay for car insurance. According to our analysis, State Farm offers the cheapest rates after a speeding ticket, with an average annual rate of $545, or $45 per month.

Company

Average annual rate

Average monthly rate

State Farm

$545

$45

Travelers

$695

$58

Geico

$782

$65

Nationwide

$849

$71

USAA*

$412

$34

*USAA auto insurance is available only to military, veterans and their families.

Cheapest car insurance after an accident: State Farm

Depending on your driving record, the most affordable car insurance company varies. The table below shows average auto insurance rates from the largest companies for drivers with a recent accident on their driving record.

Our analysis found that State Farm has the lowest average rate for drivers with one at-fault accident, at $600 per year, or $49 per month.

Company

Average annual rate

Average monthly rate

State Farm

$600

$50

Travelers

$737

$61

American Family

$949

$79

Geico

$994

$83

USAA*

$496

$41

*USAA auto insurance is available only to military, veterans and their families.

Cheapest car insurance after a DUI: State Farm

A DUI on your driving record can greatly increase how much you pay for car insurance. According to our analysis, State Farm is the cheapest car insurance company after a DUI, at $817 per year, or $67 per month, on average.

Company

Average annual rate

Average monthly rate

State Farm

$817

$68

Travelers

$852

$71

Progressive

$918

$76

American Family

$943

$79

USAA*

$659

$55

*USAA auto insurance is available only to military, veterans and their families.

Looking for even cheaper auto insurance? Try a smaller insurer. Drivers with violations like one at-fault accident or a recent DUI can find the most affordable auto insurance rates with Erie and other midsize insurers.

Rates vary depending on many personal factors. Be sure to compare car insurance quotes from at least three insurers to find the cheapest auto insurance for you.

Cheapest auto insurance for poor credit: Geico

Your driving record isn’t the only factor that can increase your rates. Many insurers also use credit-based insurance scores to help calculate car insurance rates. This can make it harder to get cheap car insurance with poor credit in many states.

A credit-based score includes the same factors as a regular credit score, such as debt and payment history, but weighs them differently. California, Hawaii, Massachusetts and Michigan don’t allow insurers to use credit when determining car insurance rates.

Credit can have a shocking impact on auto insurance costs. Drivers with poor credit may pay over $400 more a year on average than those with good credit.

If you’re looking for affordable car insurance from a large company, Geico might be a good place to start. Based on our analysis of large insurers, the company has the lowest average rates for good drivers with poor credit, at $870 per year, or $73 per month, on average.

Still, you should always shop around to get the best car insurance rates, no matter your credit history.

Company

Average annual rate

Average monthly rate

Geico

$870

$73

Nationwide

$912

$76

Travelers

$1,053

$88

State Farm

$1,163

$97

USAA*

$568

$47

*USAA auto insurance is available only to military, veterans and their families.

Find the right car insurance at the right price

Just answer a few questions to compare personalized insurance matches.

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Cheapest car insurance by state

What counts as cheap auto insurance will be different depending on where you live, as rates vary widely from state to state.

For the sake of comparison, we found the cheapest car insurance company for minimum coverage, on average, in each state and Washington, D.C.

But state averages can tell you only so much. Even within a state, car insurance rates for minimum coverage can differ. That’s why NerdWallet analyzed rates for some of the largest cities in the U.S.

Choose your city in the dropdown below to see the cheapest car insurance rates in your area.

How to find cheap car insurance for new drivers

If you’re a new driver, you may have difficulty getting cheap car insurance. That’s because auto insurers view drivers without a recent driving history as riskier to insure. This group includes those with a new license, drivers with a lapse in car insurance, immigrants and visitors to the U.S.

To get the cheapest car insurance, you’ll want to shop around and compare policies from a variety of companies each year. If you live with your family, it may be cheapest to stay on their policy until your driving history is more robust.

How to get cheap car insurance

If you’re looking to save money with the cheapest possible car insurance, it’s essential to compare quotes from multiple insurers. You can use NerdWallet’s car insurance comparison tool to easily shop for cheap auto insurance online. You may find that you already have the most affordable insurance; but prices can change, so check roughly once a year.

These tips could help you get cheap auto insurance rates:

1. Ask for discounts. There could be savings from car insurance discounts you’re not taking advantage of. For instance, maybe you now work from home and are driving less frequently than when you bought your policy. Mention that and you might get a low-mileage discount.

2. Rethink your deductible. A higher collision and comprehensive deductible might make sense if you rarely drive or are comfortable with the financial risk. Raising your deductible means you’d owe more out of pocket if you had to file a comprehensive or collision claim. But it’s a surefire way to get cheaper car insurance.

3. Know when to cut coverage. Don’t strip away coverage just for the sake of cheap auto insurance. But if you drive an older car, you can probably drop comprehensive and collision coverage. These coverage types pay out only up to your car’s current value, minus the deductible.

4. Cash in on major life changes. Certain life events could translate to cheaper car insurance, so shop for quotes whenever something major changes in your life. For instance, many companies offer a lower rate for married couples or domestic partners. Or perhaps you moved to a suburb with lower accident and crime rates. Even if you moved to a more expensive area for car insurance, shopping around can help you get cheaper coverage.

5. Revisit quotes after your driving record improves. Shop for cheap car insurance quotes online three to five years after any accidents, tickets or moving violations. They may have dropped off your driving record.

The type of car you drive also affects how much you pay for auto insurance. Check out NerdWallet’s analysis of the cheapest cars to insure to see if your vehicle made the list.

Frequently asked questions

How do you get cheap car insurance?

Shopping around for car insurance quotes is the best way to find cheap auto insurance. Having good credit and a clean driving record can also keep your rates low. And be sure to ask about discounts you might be missing from your policy.

At what age does car insurance get cheaper?

Teens and young drivers have some of the highest car insurance rates, on average. As you gain experience, rates decrease. According to a separate NerdWallet analysis for young drivers, rates drop significantly around age 25. Generally, rates continue to drop throughout adulthood, and then start to rise again at age 70, with a more dramatic increase around age 75.

Who has the cheapest car insurance?

Out of the nation’s largest insurance companies, State Farm has the cheapest car insurance, at an average of $37 per month, according to NerdWallet’s analysis of minimum coverage rates for good drivers. Travelers came in second place, with an average rate of $47 per month, while Geico came in third, at $50 per month.

But rates vary widely from one person to another based on factors like gender, the car you drive and your location. To find the cheapest price, compare car insurance rates across at least three insurers once per year.

How can you find the best car insurance?

There is no one “best” car insurance company for everyone. The best auto insurer will be the one that best suits your needs.

And while price is important, the cheapest insurer isn’t always the best. After all, the best auto insurance companies provide more than cheap rates. A top-notch insurer will provide a customer-first experience, whether you need help getting a quote or filing a claim.

To find the best company for you, check your state insurance commissioner’s website to find complaints and other information about companies in your area. You should also pick a company with strong financial health, which you can find through companies like AM Best.

Finally, make sure the insurer offers all the coverage you need. For example, not all carriers offer rideshare insurance, which you’ll likely want if you drive for Uber, Lyft or a delivery service like GrubHub.

How do you get cheap car insurance?

Shopping around for

car insurance quotes

is the best way to find cheap auto insurance. Having good credit and a clean driving record can also keep your rates low. And be sure to ask about discounts you might be missing from your policy.

At what age does car insurance get cheaper?

Teens and young drivers have some of the highest car insurance rates, on average. As you gain experience, rates decrease. According to a separate NerdWallet analysis for

young drivers

, rates drop significantly around age 25. Generally, rates continue to drop throughout adulthood, and then start to rise again at age 70, with a more dramatic increase around age 75.

Who has the cheapest car insurance?

Out of the nation’s largest insurance companies, State Farm has the cheapest car insurance, at an average of $37 per month, according to NerdWallet’s analysis of minimum coverage rates for good drivers. Travelers came in second place, with an average rate of $47 per month, while Geico came in third, at $50 per month.

But rates vary widely from one person to another based on factors like gender, the car you drive and your location. To find the cheapest price,

compare car insurance rates

across at least three insurers once per year.

How can you find the best car insurance?

There is no one “best” car insurance company for everyone. The best auto insurer will be the one that best suits your needs.

And while price is important, the cheapest insurer isn’t always the best. After all, the

best auto insurance companies

provide more than cheap rates. A top-notch insurer will provide a customer-first experience, whether you need help getting a quote or filing a claim.

To find the best company for you, check your state insurance commissioner’s website to find complaints and other information about companies in your area. You should also pick a company with strong financial health, which you can find through companies like AM Best.

Finally, make sure the insurer offers all the coverage you need. For example, not all carriers offer

rideshare insurance

, which you’ll likely want if you drive for Uber, Lyft or a delivery service like GrubHub.