Which Car Insurance Is the Best and Cheapest

To find the lowest car insurance rates where you live, you'll need to do a bit of research. We've provided recommendations for the cheapest insurers based on data across the country, and these can provide a starting point for your shopping. But car insurance quotes are based on a variety of unique factors such as location, age, driving record and type of vehicle. Because it's easier than ever to shop for car insurance online, it's essential that you get a personalized car insurance quote for the most accurate rates. We recommend getting at least three quotes for a fair comparison of rates.

The Cheapest Car Insurance Companies

• Cheapest for the Average Driver: GEICO
  
• Cheapest for Drivers With a Ticket or Accident: GEICO or State Farm
  
• Cheapest Across Different Coverage Levels: GEICO
  
• Cheapest for Poor Credit: GEICO
  
• Cheapest for Students: Allstate
  
• Cheapest for Military: USAA
  

The Cheapest Car Insurance Quotes for Most Drivers

MoneyGeek's study found that the cheapest, widely available car insurance company is GEICO. Its average annual premium is $1,047, which is more than $300 less than the national average of $1,379. However, if you're an eligible current or former military member, USAA is even cheaper, with an average annual premium of $883.

MoneyGeek found that the average driver with full coverage — defined in our methodology — can save up to 27% on car insurance when comparing car insurance quotes.

A full coverage policy offers robust insurance protection, but if you're looking for even cheaper car insurance you could shop for liability-only coverage.

The Cheapest Car Insurance Companies for Most Drivers, Ranked

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GEICO

Offering a full range of car insurance coverage plus a variety of discounts to keep rates low, GEICO is 37.9% less than MetLife, which as the most expensive car insurance company, has an average annual premium of $1,686. GEICO customers can enjoy the convenience of obtaining and maintaining their car insurance policy online or in the GEICO mobile app.

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To help you figure out whether or not to switch car insurance, MoneyGeek analyzed dozens of insurance companies across hundreds of cities to see which companies offer the lowest premiums. In addition, we examined data by driver type to help determine which company may be the best fit for your needs. For these initial recommendations, the companies represented here are available in at least 29 states. While they may not offer the cheapest car insurance rates for everyone, they will offer the best deal for many drivers.

Cheapest Car Insurance Companies by State

A hugely important factor car insurance companies consider when calculating your rates is where you live. Insurance is regulated by states, so different states can have very different price levels. Companies also price differently by where you live within a state, as different cities and towns may have higher or lower risks for car accidents and theft.

Nationally, the car insurance companies with the most inexpensive rates on average are USAA and GEICO. But companies that are cheap on average for the country as a whole might not be cheap in your state. Excluding USAA, which is only available for military families, the cheapest companies in most states are:

• GEICO (cheapest in 23 states)
• State Farm (cheapest in seven states)
• Erie (cheapest in four states)

Use the table below to explore the cheapest companies for a full coverage policy, excluding USAA, in your state. But drivers who are eligible for USAA and who are looking for savings should always get a quote with the insurer; it consistently has some of the most affordable rates in the country.

The Cheapest Car Insurance Company in Each State

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• State

  Cheapest Company

  Annual Premium

• GEICO

  $827

• GEICO

  $882

• GEICO

  $770

• Southern Farm Bureau

  $843

• Esurance

  $1,055

• GEICO

  $872

• GEICO

  $925

• State Farm

  $1,229

• GEICO

  $1,337

• Nationwide

  $1,372

• GEICO

  $646

• State Farm

  $547

• GEICO

  $789

• Erie

  $546

• GEICO

  $473

• American Family

  $758

• State Farm

  $872

• Southern Farm Bureau

  $1,612

• GEICO

  $460

• Erie

  $1,545

• Safety Group

  $730

• GEICO

  $2,728

• Farmers

  $940

• Travelers

  $879

• Allstate

  $893

• State Farm

  $751

• GEICO

  $700

• GEICO

  $1,083

• Progressive

  $593

• GEICO

  $1,035

• MetLife

  $910

• GEICO

  $1,867

• Nationwide

  $600

• Nodak Mutual

  $492

• GEICO

  $572

• GEICO

  $774

• GEICO

  $979

• Erie

  $1,328

• State Farm

  $790

• GEICO

  $853

• State Farm

  $675

• GEICO

  $776

• Farmers

  $821

• GEICO

  $677

• Vermont Mutual

  $479

• Progressive

  $504

• PEMCO

  $800

• GEICO

  $606

• Erie

  $698

• GEICO

  $631

• State Farm

  $726

Cheapest Regional Car Insurance Companies

There are some very affordable car insurance companies that aren't available in more than 29 states but which are still quite large. For example, American Family Insurance offers quotes in 17 states, and is one of the 10 biggest auto insurers in the country.

Among insurance companies available in five to 17 states, we found that Erie was the cheapest overall, with average rates of $934 per year; even cheaper than GEICO. American Family Insurance was the runner-up. Both tend to be affordable options f you live in a state in which they do business.

Cheapest Regional Car Insurance Companies

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Cheapest Car Insurance for Drivers With Tickets or Accidents

Drivers with moving violations or accidents on their driving record may discover they have higher car insurance rates than drivers with clean driving records. Car insurance companies see these drivers as a higher risk to insure, and your rates will reflect that risk. Although all companies will raise your rates, some will raise them less than others.

• Cheapest car insurance for drivers with a ticket: GEICO
• Cheapest car insurance for drivers with an at-fault accident: State Farm

Drivers who have had a more serious violation, such as a DUI, may need to buy a SR-22 insurance policy.

Most Affordable for Drivers With a Ticket

When comparing drivers with tickets or accidents to the average driver with a clean driving record, drivers with a ticket can expect to pay 22.4% more on average, while drivers with an accident could see increases of 36.3% on average.

MoneyGeek again found that GEICO offers the cheapest rates on average. At $1,407 per year, it charges $360 more than it does for drivers with a clean record.

GEICO

Car insurance typically costs more with a ticket or accident on your record. Drivers with GEICO can expect to pay an average of 34.4% more if they have a speeding ticket than drivers without a ticket. However, GEICO has the best rates for most drivers with a ticket with the exception of the USAA, which only military families can buy.

USAA is also a very affordable option for those who are eligible. And State Farm offers comparable rates to GEICO for those who have a ticket on their record.

The Cheapest Car Insurance Companies for Drivers With a Ticket, Ranked

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Most Affordable for Drivers With an Accident

Compared to the average driver, drivers with an accident on their record can expect to pay an average of $813 more than those without an accident on their record.

Unlike with tickets, MoneyGeek found that State Farm is the cheapest widely available insurance company. If you have an at-fault accident, it's a good place to start when shopping for cheap insurance.

One way to keep rates low in the event of an accident is by purchasing accident forgiveness coverage with your car insurance. This option can help you avoid a rate increase in the event of an accident when you are at fault. Companies such as Allstate, Nationwide and Geico offer this option.

State Farm

State Farm offers affordable car insurance policies. At $1,583, State Farm's annual premium is 28.1% lower than the average cost to insure a driver with an accident on their record.

Although GEICO isn't the cheapest option for this type of driver, it still offers some of the most affordable rates available. And USAA remains the cheapest option if you've been in an at-fault accident and have a military background.

The Cheapest Car Insurance Companies for Drivers With an Accident

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Cheapest Car Insurance by Coverage Type

Car insurance is available with a range of options, but most states require all drivers to have liability insurance at a minimum.

Liability insurance covers the injuries of others and their property when you are at fault in an accident. If you get liability insurance and nothing else, your car insurance policy will be cheaper than one with more coverages. Liability coverage is expressed in three numbers, such as 50/100/50. This equates to $50,000 to cover the liability costs of injuries to one individual, $100,000 for all injuries sustained in an accident and $50,000 for property damage.

A full coverage policy includes liability insurance but adds comprehensive and collision coverage. These coverages protect you against the cost of damages to your vehicle, not just the cost of damage or injury to others.

Cheapest Liability-Only Insurance

Because liability-only insurance covers the other vehicle if you are at fault in an accident, it is usually the most affordable option for coverage. Depending on your assets, income, and ability to cover vehicle damages or injury costs, you may wish to increase your insurance.

The Cheapest Car Insurance Companies for Liability-Only Insurance

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GEICO

For most drivers, GEICO is the cheapest car insurance company for 50/100/50 liability coverage, with an average annual premium of $628. That's almost half of the annual premium for MetLife, the most expensive company in this category. GEICO customers can use the mobile app to manage and update their car insurance coverage as needed.

Cheapest Full Coverage Insurance

While not required by states, some lenders or lease companies may require you to have full coverage that includes liability, collision and comprehensive insurance. This is additional coverage that covers damage to your car, even if it is stolen or damaged due to weather. The average annual premium for the average driver for a 50/100/50 liability policy is $898, while the price for a 100/300/100 full coverage policy is $1,424.

The Cheapest Car Insurance Companies for Full Coverage Insurance

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GEICO

GEICO is the cheapest car insurance option, besides USAA, for 100/300/100 full coverage with comprehensive and collision. The average annual premium is $941, which is 28.3% less than the average premium cost for this category and 41.7% less than MetLife, the most expensive company.

Cheapest Car Insurance for Drivers With Bad Credit

One of the personalized factors car insurance companies consider when determining your car insurance rates is your credit score. In general, those with higher credit scores file fewer claims than those with lower credit scores. In MoneyGeek's study, the average premium for drivers with poor credit is $2,670, while the average premium for average drivers with good credit is $1,424.

Drivers can still find cheap insurance with poor credit by shopping around, with USAA and GEICO among the cheapest on average.

GEICO

For most drivers, GEICO is the cheapest car insurance company if you have bad credit. The average annual premium of $1,681 is nearly $1,000 less than the average annual premium for the category.

USAA is also an affordable option, but it is only available to military families.

According to the National Association of Insurance Commissioners (NAIC), car insurance companies may offer higher rates to drivers with lower credit scores to compensate for the elevated risk that you'll make more claims.

The Cheapest Car Insurance Companies for Drivers With Poor Credit

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California, Massachusetts and Hawaii prohibit car insurance companies from using credit scores to evaluate drivers, so drivers in these states will not have to worry about how their score affects their insurance rates.

Cheapest Car Insurance for Students

Because they are inexperienced, student drivers are often seen as high-risk, which is reflected in higher car insurance rates for teen drivers. To keep these rates low, students should be added to an existing family policy rather than having a separate policy of their own. The average annual premium for policies with students added is $3,332 compared to $1,424 for the average driver.

MoneyGeek found that Allstate and State Farm offer the cheapest rates when you're adding a student driver to your policy.

Allstate

Allstate is the cheapest car insurance for students with an average annual premium of $2,980 when added to a family policy, which is almost $650 less than Nationwide, the most expensive option for students on average. Allstate offers its policyholders teenSMART, a training program providing on driving skills to help reduce collision risk. The company's Drivewise program also monitors drivers' driving habits that can result in extra savings.

You should shop around to find the best rates for a family policy with a student as rates vary from car insurance company to company.

The Cheapest Car Insurance Companies for Student Drivers

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Cheapest Car Insurance for Military Members

Many car insurance companies offer special rates to current and retired military members, but only one offers policies explicitly geared to their needs: USAA. Across all driver types where quotes were available — safe drivers, drivers with tickets an accidents, drivers with poor credit — MoneyGeek found that USAA has the most affordable rates on average.

If you're looking for an alternative to USAA that still provides cheap insurance for military members, GEICO often has good rates as well, thanks to its 15% military discount. To make sure you get the best rates, get personalized quotes from at least three car insurance companies.

USAA

USAA has the cheapest average car insurance rates for active military members and veterans. And active military members can take advantage of vehicle storage and military installation discounts to get even more savings.

How to Get the Cheapest Car Insurance Quotes for You

Finding the cheapest car insurance can be simple when you compare the best car insurance companies and request personal quotes for your needs. Every car insurance company looks at several personalized factors for each driver. Furthermore, they evaluate these factors differently from company to company, which means rates will vary from company to company as well. Car insurance companies also offer a variety of discounts — some the same, some not — that will further affect rates.

Shop Around to Get Multiple Quotes

Before purchasing any car insurance policy, you should get personalized quotes from at least three car insurance companies. Make sure you provide the same information to each company and ask for the quotes on the same day to ensure a fair comparison. Car insurance rates frequently fluctuate, so requesting quotes on the same day with the same information gives you the best picture of what's available to you as the cheapest car insurance quotes.

Improve Your Driving Record

Drivers with speeding tickets or car accidents on their driving record are seen as a higher risk to car insurance companies, resulting in higher rates. Therefore, maintain good driving habits to keep your driving record clean. To help you with this, many car insurance companies now offer monitoring programs to track and provide feedback on your driving habits. As your driving habits improve, you could see additional savings on your car insurance rates.

Improve Your Credit

Although your credit score may not reflect your driving skills, car insurance companies still use credit scores to evaluate risk when compiling car insurance quotes. Therefore, by maintaining good credit and a high credit score, you can help keep your car insurance rates down. Review your credit report regularly to ensure it is accurate and doesn't contain incorrect or false information that could bring your credit score down.

Drive a Less Expensive Vehicle

Another factor car insurance companies consider when deciding rates is the type of vehicle you drive. This includes a review of the vehicle's safety record, how much it would cost to repair and its reputation for theft. For instance, driving a vehicle with a high safety rating that is not routinely stolen will equate to lower car insurance rates, while a sports car that is highly desired by thieves will result in higher car insurance quotes.

MONEYGEEK EXPERT TIP

Teens are typically more expensive to insure than adult drivers, but adding your teen to a family policy could mean big savings. Teen who are added to a family policy could save more than $1,800 on average per year compared to teens with their own policy.

Find Savings for Younger Drivers

As new drivers on the road, teen drivers inherently come with a higher risk than more experienced drivers. That higher risk is reflected in more expensive car insurance rates. To keep rates down, parents should add teen drivers to their existing family policy. In addition, shop around for good student discounts for teens with specific grade-point averages as well as college student discounts attending school a minimum distance away from home.

Raise Your Deductible

As a general practice throughout the insurance industry, it's common for those paying a higher deductible to receive a lower premium. However, this is only a good move if you have the funds to pay a higher deductible should you have to file a claim. Otherwise, you may find yourself in a tough spot following an accident. If you choose to go with the lower premium and higher deductible, consider putting some savings in a specific account to draw upon if you have to file a claim.

Combine Home and Auto Policies

One of the most common discounts offered by car insurance companies is bundled coverage combining insurance on two or more items together under one policy. Often, this means bundling homeowners insurance with car insurance. Some companies also offer multi-policy discounts if you insure two or more vehicles—motorcycle, RV, boat, etc.—on the same policy. Shop around to find the best rates and discounts to ensure you get the cheapest car insurance.

Choose Lower Coverage Levels or Liability Only

In some instances, lowering your car insurance coverage or choosing only liability coverage can result in more affordable car insurance. For example, if you have an older car with a depreciated value, carrying full coverage may not provide much benefit. If your car's value is less than 10 times your annual premium for collision and comprehensive coverage, liability only is the better choice. However, keep in mind that if your car is leased or financed, the lender likely requires full coverage car insurance.

Expert Advice: Steps to Find Cheap Auto Insurance

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Associate Professor of Business at Moraine Valley Community College

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Assistant Professor of Finance at Southern Illinois University Edwardsville

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Associate Professor of Business Management at Brooklyn College

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Associate Professor of Finance at the University of New Mexico

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Professor of Business and Director of Graduate Programs at Point Park University

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Lecturer at James M. Hull College of Business at Augusta University

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Department Chair and Professor of Economics and Finance at Stephen F. Austin State University

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Associate Professor of Finance Economics at Utah Valley University

Eliezer Fich

Professor of Finance at Drexel University's LeBow College of Business

Carrie L. Johnson

Associate Professor and Extension Specialist at North Dakota State University

Dr. James Barth

Lowder Eminent Scholar in Finance at Auburn University

Malcolm Robinson

Professor of Economics at Thomas More University

Rutherford Johnson

Lecturer of Economics at the University of Minnesota Crookston & General Conference Chair of the West East Institute

Amit Sinha

Professor of Finance and Quantitative Methods at Bradley University

Aron Tobias

Assistant Professor of Economics at Syracuse University

Jonathan Handy

Assistant Professor of Finance at Western Kentucky University

Hank Bahr

Adjunct Lecturer at Haslam College of Business at The University of Tennessee, Knoxville

Randy Beavers

Assistant Professor of Finance at Seattle Pacific University

David Marlett

Managing Director of Brantley Risk and Insurance Center, IIANC Distinguished Professor of Insurance at Appalachian State University

Michael Rainey

Practitioner Lecturer of Business Law at Pepperdine Graziadio Business School

Angelo DeCandia

Professor of Business at Touro College

Steven Gattuso

Assistant Professor of Economics & Finance at Canisius College

James Philpot

Associate Professor & Director of the Financial Planning Program at Missouri State University

Jeffrey Diamond

Adjunct Professor, Atlanta's John Marshall Law School

Melissa M. Hart

Senior Lecturer, Finance at North Carolina State University

Derek Lawson

Assistant Professor, Ph.D., CFP at Kansas State University; Partner & CCO (Priority Financial Partners)

Robert Hartwig

Clinical Associate Professor, Finance Department and Director, Center for Risk and Uncertainty Management; Darla Moore School of Business; University of South Carolina

Wayne Miller

Adjunct Professor - Wayne Law at Wayne State University and COO at Miller & Tischler P.C.

Sampath Kumar

Professor of Marketing for the Austin E. Cofrin School of Business at UW-Green Bay

Jeffrey H. Harris

Gary Cohn Goldman Sachs Chair in Finance at American University

Richard McGrath

Professor of Economics at Georgia Southern

Kai Ding

Assistant Professor Department of Economics at California State University - East Bay

Dr. Amanda J. Phalin

Senior Lecturer, Warrington College of Business at the University of Florida

Lealand Morin

Assistant Professor of Economics at the University of Central Florida

Dr. Arun Upadhyay

Associate Professor - Department of Finance at Florida International University

Kim Austin

State Farm Insurance Agent/Owner

David Brownstone

Emeritus Professor of Economics at the University of California, Irvine

Michael Tsiros

Patrick J. Cesarano Professor and Chair of Marketing at the University of Miami

Deanne Butchey

Teaching Professor, Department of Finance at the College of Business, Florida International University

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Professor of Practice - Freeman School of Business at Tulane University

PV Viswanath

Graduate Program Chair in the Department of Finance and Economics at Pace University

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Assistant Professor of Economics at Brandeis University

Mike Schmisek

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Assistant Professor of Finance at The College of New Jersey

Jeremy Greiner

Vice President/Agent at Heritage Insurance & Real Estate

Dr. Wendel Weaver

Dean of the Chesapeake Energy School of Business at Oklahoma Wesleyan University

Anthony Rondinelli

Professor of Business

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Dr. Brenda Wells

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Dr. Brian Routh

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Justin Yoshizawa

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Methodology

All quotes were determined by selecting an average driver profile for insurance companies throughout the country in hundreds of cities and every state. All companies listed here are available in a minimum of 29 states unless otherwise noted. When MoneyGeek refers to a full coverage policy, it means a policy with:

• $100,000 in bodily injury liability coverage per person
• $300,000 in bodily injury liability coverage per accident
• $100,000 in property damage liability coverage per accident
• Comprehensive and collision coverage with a $1,000 deductible

Learn more about MoneyGeek's methodology.

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Which Car Insurance Is the Best and Cheapest

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