With prices continuing to climb, finding low-cost auto insurance can be challenging—but it’s not impossible.
We evaluated 14 leading insurers to pinpoint which companies offer the best car insurance rates, along with reliable service. We analyzed over 310,000 car insurance rates across diverse driver profiles—from good drivers to those with an accident or DUI—to uncover the best deals tailored to different drivers needs. Discover which companies offer the cheapest car insurance rates for your situation.
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The Cheapest Car Insurance
Here are the most affordable car insurance options for 2025 according to our analysis.
| Cheapest car insurance by category | Company | Average monthly cost |
|---|---|---|
| For good drivers | $121 | |
| After a speeding ticket | $161 | |
| After an accident causing an injury | $211 | |
| After a DUI | $207 | |
| If you have bad credit | $173 | |
| For teens on parent’s policy | $234 | |
| For young drivers | $238 | |
| For seniors | $125 | |
| For low-mileage drivers | $123 | |
| For high-mileage drivers | $125 | |
| For a state-minimum policy | $36 | |
| For a full coverage policy | $122 |
Who Has the Cheapest Car Insurance?
USAA has the cheapest car insurance rates but only offers auto insurance policies to military members, veterans and their immediate families. If you’re not eligible to buy from USAA, the cheapest car insurance rates are with Nationwide, Travelers and Geico, according to our analysis.
The company that offers the cheapest motor vehicle insurance can vary depending on your driver profile, such as accidents and tickets. How much you pay for car insurance will depend on several factors, including your age, claims history and driving record.
The Cheapest Car Insurance for Good Drivers: Nationwide
Nationwide is the cheapest company for good drivers. USAA is a top choice for people who qualify.
We found that the national average for good drivers is $2,149 a year. The most economical companies come in hundreds of dollars below that.
| Company | Average cost per year for good drivers | Average cost per month for good drivers | Total savings per year compared to average |
|---|---|---|---|
| $1,452 | $121 | $697 cheaper | |
| * | $1,475 | $123 | $674 cheaper |
| $1,597 | $133 | $552 cheaper | |
| $1,849 | $154 | $300 cheaper | |
| $1,866 | $156 | $283 cheaper | |
| Average | $2,149 | $179 | - |
*USAA is available only to the military, veterans and their families.
The Cheapest Car Insurance After a Speeding Ticket: Nationwide
Our analysis found that Nationwide offers the cheapest car insurance after a speeding ticket for the general public. USAA auto insurance is a little cheaper but only available to those with a military connection.
Our analysis found that having a speeding ticket on your driving record means an average insurance increase of 25%.
| Company | Average cost per year for drivers with a speeding ticket | Average cost per month for drivers with a speeding ticket | Total savings per year compared to average |
|---|---|---|---|
| * | $1,803 | $150 | $866 cheaper |
| $1,928 | $161 | $741 cheaper | |
| $2,068 | $172 | $601 cheaper | |
| $2,172 | $181 | $497 cheaper | |
| $2,403 | $200 | $266 cheaper | |
| Average | $2,669 | $222 | - |
The Cheapest Car Insurance After an Accident Causing Injury: Nationwide
Nationwide has the cheapest rates for all drivers if you caused an accident that injured someone else, with Travelers following close behind. USAA offers excellent rates to military members and veterans.
Nationally, the average increase after an accident is 50% compared to a driver with a clean record.
| Company | Average cost per year after an accident with injuries | Average cost per month after an accident with injuries | Total savings per year compared to average |
|---|---|---|---|
| * | $2,174 | $181 | $1,036 cheaper |
| $2,407 | $201 | $803 cheaper | |
| $2,428 | $202 | $782 cheaper | |
| $2,522 | $210 | $688 cheaper | |
| $2,566 | $213 | $644 cheaper | |
| Average | $3,210 | $268 | - |
The Cheapest Car Insurance After a DUI: Progressive
Progressive has the cheapest rates in our analysis for drivers with a DUI, followed by Travelers. USAA is a good option for military car insurance, catering to military members and veterans who qualify. A DUI conviction leads to an average increase of 72%.
Car insurance companies usually request motor vehicle records before your policy renewal time to check for tickets and convictions such as DUIs.
| Company | Average cost per year for a driver with one DUI | Average cost per month for a driver with one DUI | Total savings per year compared to average |
|---|---|---|---|
| $2,485 | $207 | $1,108 cheaper | |
| $2,766 | $231 | $827 cheaper | |
| * | $2,781 | $232 | $812 cheaper |
| $2,789 | $232 | $804 cheaper | |
| $2,961 | $247 | $632 cheaper | |
| Average | $3,593 | $299 | - |
The Cheapest Car Insurance for People With Bad Credit: Nationwide
Nationwide has the cheapest car insurance for drivers with bad credit, among the companies we analyzed. USAA is a good bet for military members and veterans.
Poor credit can cause higher auto insurance rates than having a DUI or at-fault accident on your record. Average auto insurance costs go up 96% for drivers with poor credit compared to those with good credit.
| Company | Average cost per year for drivers with poor credit | Average cost per month for drivers with poor credit | Total savings per year compared to average |
|---|---|---|---|
| $2,076 | $173 | $2,096 cheaper | |
| * | $2,799 | $233 | $1,344 cheaper |
| $2,826 | $236 | $1,317 cheaper | |
| $2,830 | $236 | $1,113 cheaper | |
| $3,556 | $296 | $587 cheaper | |
| Average | $4,143 | $345 | - |
The Cheapest Car Insurance After Adding a Teen Driver: Nationwide
Nationwide has the best rates for adding a teen driver age 16 to 19 to a parent’s policy, according to our rate analysis. Other cost-effective companies include Shelter, Erie and Progressive. USAA also has low rates for adding a teen if you’re eligible.
It can be hard to find cheap car insurance for teens because young new drivers pose a considerable risk to insurers. Adding a teen driver typically doubles the parent’s auto insurance bill. But that’s usually less expensive than having the teen driver buy their own separate policy.
| Company | Average cost per year to add a teen driver to a parent’s policy | Average cost per month to add a teen driver to a parent’s policy | Total savings per year compared to average |
|---|---|---|---|
| $2,808 | $234 | $1,626 cheaper | |
| $3,025 | $252 | $1,409 cheaper | |
| * | $3,056 | $255 | $1,378 cheaper |
| $3,198 | $266 | $1,236 cheaper | |
| $3,893 | $324 | $541 cheaper | |
| Average | $4,434 | $369 | - |
The Cheapest Car Insurance for Young Drivers: Erie
Erie, Travelers, Nationwide and Geico are the most affordable car insurance companies for young drivers ages 18 to 25 who are buying their own policies. USAA is also usually a top choice if you qualify.
Car insurance for a new driver is typically cheaper if you remain on a parent’s policy if you’re still living at home, whether you’re an 18-year-old or 25-year-old. Look for discounts as well to unlock even lower premiums.
| Company | Average cost per year for young drivers | Average cost per month for young drivers | Total savings per year compared to average |
|---|---|---|---|
| * | $2,666 | $222 | $1,599 cheaper |
| $2,858 | $238 | $1,407 cheaper | |
| $3,183 | $265 | $1,082 cheaper | |
| $3,228 | $269 | $1,037 cheaper | |
| $3,262 | $272 | $1,003 cheaper | |
| Average | $4,265 | $355 | - |
The Cheapest Car Insurance for Seniors: Nationwide
Nationwide has the best rates for senior drivers ages 65 and 80, according to our analysis. The best car insurance for seniors will vary based on where you live and your personal details, such as your driving record.
We found that senior drivers see an average increase of 11% from age 60 to 70. By age 80, your rates may have increased 22% above the rate you were paying at age 70 and 35% more than your car insurance cost at age 60.
| Company | Average cost per year for senior drivers | Average cost per month for senior drivers | Total savings per year compared to average |
|---|---|---|---|
| $1,504 | $125 | $820 cheaper | |
| * | $1,639 | $137 | $685 cheaper |
| $1,820 | $152 | $504 cheaper | |
| $1,949 | $162 | $375 cheaper | |
| $2,006 | $167 | $318 cheaper | |
| $2,007 | $167 | $317 cheaper | |
| Average | $2,324 | $194 | - |
The Cheapest Car Insurance for Low-Mileage Drivers: Nationwide
Nationwide is the cheapest for low-mileage car insurance, according to our analysis of rates for drivers putting 6,000 miles or less a year on their vehicle. Travelers and Erie also offer very affordable rates for motor vehicle insurance. USAA is the most affordable option for military members and veterans.
There is less risk of being in an accident and filing claims if you drive less, so low-mileage drivers see lower costs.
| Company | Average cost per year for low-mileage drivers | Average cost per month for low-mileage drivers | Total savings per year compared to average |
|---|---|---|---|
| * | $1,310 | $109 | $715 cheaper |
| $1,471 | $123 | $554 cheaper | |
| $1,503 | $125 | $522 cheaper | |
| $1,559 | $130 | $466 cheaper | |
| $1,628 | $136 | $397 cheaper | |
| $1,791 | $149 | $234 cheaper | |
| Average | $2,025 | $169 | - |
The Cheapest Car Insurance for High-Mileage Drivers: Nationwide
Nationwide offers the cheapest car insurance costs for high-mileage drivers who drive around 16,000 miles per year. Travelers and Erie follow closely behind with cost-effective rates, and USAA is a fantastic choice for those who are veterans or in the military.
Expect to pay a bit more for auto insurance if your daily commute, running errands with kids or other activities result in putting a ton of miles on your car annually. We found the difference in costs for driving 16,000 miles a year compared to 6,000 miles a year was 3% on average.
| Company | Average cost per year for high-mileage drivers | Average cost per month for high-mileage drivers | Total savings per year compared to average |
|---|---|---|---|
| * | $1,468 | $122 | $654 cheaper |
| $1,497 | $125 | $624 cheaper | |
| $1,625 | $135 | $496 cheaper | |
| $1,690 | $141 | $432 cheaper | |
| $1,693 | $141 | $428 cheaper | |
| $1,897 | $158 | $224 cheaper | |
| Average | $2,122 | $177 | - |
The Cheapest Car Insurance for a State-Minimum Policy: Auto-Owners
Auto-Owners has inexpensive auto insurance costs for a state-minimum car insurance policy, with Erie coming in right behind. USAA offers the overall cheapest rates but sells exclusively to the military community.
This type of policy is sometimes referred to as liability-only car insurance. It typically has low liability limits, which is what pays for damages or injuries you cause to others in an accident. We recommend buying higher liability limits if your budget allows.
| Company | Average cost per year for state minimum | Average cost per month for state minimum | Total savings per year compared to average |
|---|---|---|---|
| * | $350 | $29 | $281 cheaper |
| $433 | $36 | $198 cheaper | |
| $437 | $36 | $194 cheaper | |
| $481 | $40 | $150 cheaper | |
| $494 | $41 | $137 cheaper | |
| Average | $631 | $53 | - |
The Cheapest Car Insurance for Full Coverage Policy: Nationwide
Nationwide is the cheapest for a full coverage car insurance policy with liability limits of 250/500/250. Travelers and Erie also have excellent rates. USAA has the lowest rates of all, but eligibility is limited to military members and their immediate families.
Full coverage costs more because it includes collision and comprehensive coverage that covers your vehicle for accidents, fire, theft and more. High liability limits of 250/500/250 are less likely to be exceeded, but choosing lower limits of 100/300/100 saves you $170 a year on average.
| Company | Average cost per year for full coverage | Average cost per month for full coverage | Total savings per year compared to average |
|---|---|---|---|
| * | $1,462 | $122 | $808 cheaper |
| $1,561 | $130 | $709 cheaper | |
| $1,666 | $139 | $604 cheaper | |
| $1,735 | $145 | $535 cheaper | |
| $1,951 | $163 | $319 cheaper | |
| $2,018 | $168 | $252 cheaper | |
| Average | $2,270 | $189 | - |
*USAA is available only to the military, veterans and their families.
States With the Cheapest Car Insurance
Car insurance rates vary by state due to the different risks and claims made in each state. See which auto insurer is offering the lowest price in your state for full coverage.
| State | Cheapest car insurance company | Average annual cost for the cheapest company | Average monthly cost for the cheapest company |
|---|---|---|---|
| $1,234 | $103 | ||
| $1,562 | $130 | ||
| $1,399 | $117 | ||
| Nationwide | $1,237 | $103 | |
| $1,872 | $156 | ||
| Colorado Farm Bureau | $1,518 | $127 | |
| Geico | $1,311 | $109 | |
| Travelers | $1,396 | $116 | |
| Travelers | $2,289 | $191 | |
| $1,647 | $137 | ||
| Geico | $873 | $73 | |
| Geico | $922 | $77 | |
| Hastings | $1,194 | $100 | |
| Hastings | $809 | $67 | |
| Hastings | $647 | $54 | |
| Nationwide | $1,172 | $98 | |
| Travelers | $1,430 | $119 | |
| Southern Farm Bureau | $2,116 | $176 | |
| Concord | $726 | $61 | |
| Geico | $1,132 | $94 | |
| $896 | $75 | ||
| Hastings | $1,391 | $116 | |
| Nationwide | $1,270 | $106 | |
| Nationwide | $1,167 | $97 | |
| Nationwide | $1,292 | $108 | |
| State Farm | $1,484 | $124 | |
| Auto-Owners | $1,342 | $112 | |
| Capital Insurance | $1,332 | $111 | |
| MMG Insurance | $898 | $75 | |
| Travelers | $1,402 | $117 | |
| Central Mutual | $1,550 | $129 | |
| Progressive | $1,223 | $102 | |
| State Farm & Progressive | $854 | $71 | |
| Nationwide | $989 | $82 | |
| Nationwide | $672 | $56 | |
| Oklahoma Farmers Union | $1,644 | $137 | |
| Travelers | $1,308 | $109 | |
| Travelers | $1,235 | $103 | |
| State Farm | $1,658 | $138 | |
| Travelers | $1,637 | $136 | |
| Nationwide | $1,658 | $138 | |
| Travelers | $1,285 | $107 | |
| Texas Farm Bureau | $1,036 | $86 | |
| Nationwide | $1,033 | $86 | |
| Progressive | $834 | $70 | |
| Travelers | $1,074 | $90 | |
| Kemper | $1,082 | $90 | |
| $1,764 | $147 | ||
| Rural Mutual Insurance | $825 | $69 | |
| Geico | $1,210 | $101 |
Source: Quadrant Information Services.
Cheapest Car Insurance by Age
Erie has the best car insurance rates for drivers age 16, 18 and 20, based on our analysis of auto insurance rates by age. Nationwide is the cheapest option for drivers of many other ages.
| Age | Cheapest company | Average annual cost |
|---|---|---|
| 16 | $4,401 | |
| 18 | Erie | $3,539 |
| 20 | Erie | $2,859 |
| 25 | $1,742 | |
| 35 | Nationwide | $1,516 |
| 45 | Nationwide | $1,421 |
| 55 | Nationwide | $1,312 |
| 65 | Nationwide | $1,311 |
| 75 | Nationwide | $1,485 |
| 80 | Nationwide | $1,641 |
Cheap Car Insurance Companies That We Recommend
Here are the companies we recommend based on our in-depth analysis of rates and feedback from customers. We surveyed 6,000 car insurance customers (3,000 about pricing and customer service and another 3,000 about claims experience).
USAA
We are impressed by USAA for offering incredibly cheap auto insurance for many types of drivers, including those with spotty driving records. USAA offers the most affordable car insurance for drivers with a speeding ticket, drivers who have caused an accident with property damage or injury to others, drivers with a gap in insurance coverage and young adults buying their own policies.
USAA also had the best rates in our analysis for drivers buying state-minimum car insurance and those purchasing high levels of liability coverage. These low rates along with stellar feedback from surveyed policyholders earned it a 5 stars (out of 5) rating in our scoring of the cheapest car insurance companies. The main drawback with USAA is that only veterans, active military members and their immediate families are eligible.
Among USAA customers surveyed, we found:
- They are extremely likely to recommend USAA car insurance to a friend or family member
- They are extremely satisfied with their purchase
- They were satisfied overall with the claims process
More: USAA Car Insurance Review
Erie
We like Erie because it has the best rates (after USAA) for young adults ages 18 to 25 who are buying their own policies. It also offers fantastic rates for drivers with speeding tickets, drivers buying state minimum car insurance, parents adding a teen driver to their policy and drivers buying full coverage car insurance with higher liability limits (250/500/250).
Using Erie’s Rate Lock feature can keep your cheap rate in place by freezing your premium. Your rates stay the same year after year, even if you file a claim. Prices only change if you make certain policy changes, such as adding a driver or vehicle. Erie’s great rates and customer satisfaction levels earned it 4.4 stars (out of 5) in our ratings for the cheapest car insurance companies.
Among the Erie customers surveyed, we found:
- They are extremely satisfied with their purchase
- They are extremely likely to recommend Erie car insurance to a friend or family member
- They were extremely satisfied overall with the claims process
More: Erie Car Insurance Review
Nationwide
Nationwide stands out to us for offering low-cost car insurance rates for most driver types. In some instances, USAA has better rates, but you must have a military connection to be eligible for USAA coverage. The general public is eligible for Nationwide car insurance.
Nationwide rates are the cheapest for most drivers regardless of whether they have a pristine driving record, speeding ticket, accident or poor credit. It is also the cheapest for those buying high liability limits (250/500/250). Good drivers may get even cheaper rates by trying out SmartRide, Nationwide’s usage-based insurance program, and low-mileage drivers can try its pay-per-mile program, SmartMiles. Nationwide earned 4.4 stars (out of 5) in our ratings for the cheapest car insurance companies.
Among the Nationwide customers surveyed, we found:
- They are very satisfied with their purchase
- They are likely to recommend Nationwide car insurance to a friend or family member
- They were very satisfied overall with the claims process
More: Nationwide Car Insurance Review
Travelers
We’re impressed by Travelers’ competitive rates for many types of drivers, including having the second-cheapest rates for drivers with a DUI conviction. Travelers also has relatively low rates insurance rates for good drivers, drivers who have caused an accident, drivers with speeding tickets and drivers with bad credit. Travelers is consistently one of the top three to five cheapest companies in our analysis of vehicle insurance.
You may lower your car insurance rates further using Travelers’ usage-based insurance program, IntelliDrive. A digital discount is available if you enroll in the IntelliDrive app, register for MyTravelers and opt for paperless delivery. Travelers earned 4.1 stars (out of 5) in our ratings for the cheapest car insurance companies.
Among the Travelers customers surveyed, we found:
- They are satisfied with their purchase
- They are likely to recommend Travelers car insurance to a friend or family member
- They were very satisfied overall with the claims process
More: Travelers Car Insurance Review
Geico
We like that Geico offers cheap prices for many driver types, especially drivers with poor credit. While not the cheapest, Geico still offers fairly competitive rates for drivers with a speeding ticket or those who have caused accidents. Rates are also decent for parents adding a teen driver to their policies and senior drivers.
Geico additionally offers a usage-based insurance program, DriveEasy, but doesn’t give information on possible discounts. Be aware that if you receive a poor driving score in the program your rates could increase. Geico received a rating of 4 stars (out of 5) in our ranking of cheapest car insurance companies.
Among the Geico customers surveyed, we found:
- They are extremely satisfied with their purchase
- They are very likely to recommend Geico car insurance to a friend or family member
- They were very satisfied overall with the claims process
More: Geico Car Insurance Review
Common Car Insurance Discounts
Car insurance discounts are one of the best ways to save money. When getting a quote, most auto insurers will automatically apply the discounts they find you qualify for. Common discounts include:
- Accident-free discount: If your record is free of at-fault accidents.
- Antitheft discount: Provided if you have certain antitheft devices in your car.
- Car safety equipment discounts: Given when your vehicle has safety equipment such as antilock brakes, antitheft devices and factory-installed airbags.
- Early quote discount: For getting a quote before your current policy with another company expires.
- Multicar discount: For insuring two or more cars with the same auto insurer.
- Multipolicy discount: For insuring both your auto and home insurance with the same insurer.
- Paid in full discount: For paying the full car insurance premium upfront.
- Paperless discount: Applied when you receive insurance bills and documents electronically.
- New vehicle discount: You save by having a car that is 3 years old or newer.
- Safe driver discount: Given if you’ve had no accidents, violations or major comprehensive claims for a certain number of years, typically three to five years.
How To Get the Cheapest Car Insurance
Ryan McMahon
Advisory Board Member
Penny Gusner
Insurance Senior Writer
Jason Metz
Insurance Lead Editor
Les Masterson
Insurance Editor
Michelle Megna
Insurance Lead Editor
Ashlee Valentine
Insurance Editor
Shop Around Regularly as Rates Change
Cost varies by state. Some carriers are more expensive in some states and more competitive in others. I don’t believe there is one universally cheap or expensive insurance company. Also, cost is a factor of the last time the insurance company updated its rates, so a company that was more expensive six months ago could now be the cheapest.
Advisory Board Member
Compare Quotes From Multiple Companies
Comparing car insurance quotes with at least three companies is a must when seeking the cheapest car insurance price. I would compare more quotes if you have time. Also, if you alter your auto policy, such as adding a person or car, compare quotes again because the company that offered the lowest rates previously may not be the cheapest after the change.
Insurance Senior Writer
Reconsider Your Deductible
Raising your car insurance deductible is an easy modification that results in lower rates. Crunching the numbers, I found that if you raise your deductible from $250 to $500 you can save 9% on average—and 19% if you raise it from $250 to $1,000. Just be sure to have the money saved for the deductible in case you need it.
Insurance Lead Editor
Look for a Good Bundling Discount
Consider buying your auto and home (or renters) insurance from the same company. I find it convenient to have one insurer for both policies. Also, many companies offer a pretty good discount for bundling auto and home insurance, which typically gives you cheaper car insurance rates.
Insurance Editor
Review Your Coverage
Review your coverage, limits and deductibles to verify they continue to fit your needs. This can help prevent you from paying for unneeded coverage. And while you may want discount car insurance, I would avoid lowering liability limits because auto accident expenses are continuously increasing, and having inadequate coverage could be catastrophic for your finances.
Insurance Lead Editor
Ask About Discounts
Many auto insurance discounts are automatically applied when you get a quote but I also ask my agent if there are others I may be missing out on. For example, see if you qualify for a low-mileage discount if you drive only a small number of miles annually. Don’t hesitate to ask your agent about other tips to lower car insurance costs beyond discounts.
Insurance Editor
The Risks of Buying Cheap Car Insurance
Buying inexpensive car insurance with bare-bones limits and minimal coverage may sound like a pathway to low costs, but it could end up costing you much more in the long run. Risks of purchasing such a policy include:
Methodology
To identify the cheapest car insurance companies, we evaluated each insurer based on its average rates for a variety of drivers and the results of our customer service, pricing and claims satisfaction surveys.
Auto insurance rates (80% of score): We analyzed average rates from each company for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit, drivers caught without insurance, adding a teen driver, senior drivers and young drivers. We also analyzed average rates for minimum coverage and higher liability limits (250/500/250).
Unless otherwise noted, rates are based on a 40-year-old female driver insuring a new Toyota RAV4 and coverage of:
- $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
- Uninsured motorist coverage of 100/300.
- Collision and comprehensive insurance with a $500 deductible.
State minimum coverage rates reflect the minimum amount of auto insurance required in each state.
Source: Quadrant Information Services.
Satisfaction with customer service and price; satisfaction with claims process (20% of score): For customer satisfaction, we surveyed 3,000 American drivers with car insurance who purchased a new policy or renewed their policy within the last 12 months, 200 per company. This online survey was commissioned by Forbes Advisor and conducted by market research company Talker Research, in accordance with the Market Research Society’s code of conduct. Data was collected from October 11-29, 2024. The margin of error is ± 1.5 point with 95% confidence. This survey was overseen by Talker Research, whose team members are members of the Market Research Society (MRS) and the European Society for Opinion and Marketing Research (ESOMAR).
For satisfaction with the claims process, we surveyed 3,000 American drivers who had filed a car insurance claim within the past 12 months. This online survey was commissioned by Forbes Advisor and conducted by market research company Talker Research, in accordance with the Market Research Society’s code of conduct. Data was collected from October 11 to November 12, 2024. The margin of error is ± 1.8 point with 95% confidence. This survey was overseen by Talker Research, whose team members are members of the Market Research Society (MRS) and the European Society for Opinion and Marketing Research (ESOMAR).
Read more: How Forbes Advisor rates car insurance companies
Other Car Insurance Companies We Rated
These companies were also part of our analysis.
| Company | Forbes Advisor rating for cheap car insurance | Availability |
|---|---|---|
   | 26 states | |
| | 10 states | |
| | 50 states and Washington, D.C. | |
| | 48 states and Washington, D.C. | |
| | 15 states | |
| | 50 states and Washington, D.C. |
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Via Forbes Advisor's Partner
Cheap Car Insurance Frequently Asked Questions (FAQs)
Who has the cheapest car insurance?
Nationwide, Travelers, Geico and Erie have the cheapest car insurance in our analysis of rates for good drivers. USAA also has very good rates but sells auto insurance only to military members, veterans and their families.
Our findings are a jumping off point, as motor vehicle insurance costs vary greatly based on personal factors like your location, vehicle and driving record. You’ll want to compare quotes with multiple insurers to find car insurance with a low premium that fits your budget.
What is the cheapest type of car insurance?
The cheapest type of car insurance is a state-minimum policy, sometimes referred to as liability-only auto insurance. It provides the minimum car insurance required by your state to drive legally. A state-minimum car insurance policy costs an average of $631 per year, based on our analysis. That’s over $1,500 cheaper than the average annual cost of a full coverage policy ($2,149).
A state-minimum policy is inexpensive because it usually has low liability car insurance limits, which pay for injuries and property damage you cause others in an auto accident. Once accident costs pass your liability limit, you’ll be personally responsible for any remaining expenses and can be sued for them. For better financial protection, it’s wise to raise your liability limits if possible so it’s less likely that your insurance limits will be exceeded.
How can I find the cheapest car insurance quotes?
You can find the cheapest car insurance quotes by comparing rates from multiple insurance companies. Insurers all have different formulas for calculating rates, so you’ll often find a wide range of prices for the exact same coverage.
If you’re a safe driver, a usage-based insurance (UBI) program may be worth trying out to see if you get good rates. With some companies, you can get a sign-on discount plus a bigger discount at renewal time—if your driving scores well. Before signing up for a UBI program, check to see if your rates could possibly go up if your driving score isn’t great.
Do teachers get cheaper car insurance?
Teachers may be able to score affordable car insurance rates from insurers that offer affiliate group discounts for educators or certain occupations, such as teachers or school administrators. For instance, if you’re part of a national educational association—such as the Association of American Educators—ask your insurance company if you can get a price break on car insurance for teachers.
Companies that offer discounts for teachers include Country Financial, Geico and Liberty Mutual. While a discount for teachers is nice, the final price you pay is most important. Be sure to shop around with multiple auto insurance companies to find out which ones have the best rates for you.
