Cheapest Car Insurance Companies, Rates & Quotes (2024) (2024)

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The Cheapest Car Insurance Companies

At the national level, the cheapest car insurance company is Auto-Owners, with average rate estimates of $39 per month for minimum coverage and $142 per month for full coverage, substantially cheaper than the national averages of $78 and $210 per month, respectively. But Auto-Owners may not be the cheapest for you, and several other top providers had national rate estimates within $25 per month of Auto-Owners.

Remember: Car insurance rates are personalized to you as a driver based on where you live, how old you are, your driving record and other factors. In the sections below, you’ll learn how these factors impact your rates. We’ve also included a list of the cheapest providers based on those factors, along with estimates.

Cheapest Car Insurance by State

Varying state insurance requirements and local risk factors mean that you’ll see big differences in average rates between states. Hover over your state to see its average rate estimate, along with its cheapest provider and their estimated rate.

We’ve also listed the average rates and cheapest providers in the table below. Click “read more” to expand the section and see the table.

Cheapest Car Insurance by Age

Age has a powerful impact on your insurance rates. Young drivers typically pay far more for coverage than older drivers. In fact, teen drivers can cost more than three times as much to insure as a 30-year-old driver. Rates go down as drivers get older, and tend to level out around the age of 35.

Cheapest Car Insurance by Driving Record

A clean driving record gets you access to the cheapest auto insurance rates. Any accidents or violations such as speeding tickets can increase your premiums. Based on our data, average rates increase by the following percentages compared to rates for drivers with clean records:

Navigate the tabs below to see rate estimates for drivers with clean records, a recent accident, two speeding violations and a DUI.

Cheapest Car Insurance by Credit Score

Unless you live in California, Hawaii, Maryland, Massachusetts, Michigan, Oregon or Utah where state regulations have outlawed the practice, your credit score can be a major determining factor in how much you pay for car insurance. Drivers with good credit scores get access to the cheapest rates and those with lower scores tend to experience higher premiums.

While there is some variation in the terms used to describe credit bands and the ranges that define them, our data defines a score of below 600 as “poor” and scores above it as “good.” Based on our data, people with poor credit scores pay an average of 77.2% more for minimum coverage and 75.8% more for full coverage.

Best Cheap Car Insurance Companies

Below are thorough reviews of our top recommendations for the best cheap car insurance companies among large and midsize insurers. These rankings are based on average overall rates and our company rankings in our study of 130 providers.

What Is the Cheapest Car Insurance for Me?

The cheapest car insurance is a liability policy that only meets your state’s minimum insurance requirements. But minimum coverage isn’t for everyone. In fact, the overwhelming majority of people in the U.S. have additional coverage for themselves.

According to an Insurance Information Institute (III) analysis of 2021 data from the National Association of Insurance Commissioners (NAIC), 76% of insured drivers have a policy that includes collision coverage and 80% of drivers with insurance have comprehensive coverage on their policy.

While full coverage may make sense for most people, it may not make sense for you. In the following sections, we’ve included some information to help you decide. Click “read more” to learn about coverage.

Premiums on the Rise: Why Even the Cheapest Car Insurance Seems Expensive

According to the Bureau of Labor Statistics’ (BLS) consumer price index (CPI), the total cost for motor vehicle insurance has increased by 42.8% since 2020. On average, car owners in the U.S. are paying 6.1% more this year for the cheapest minimum-coverage insurance policies than they were last year, and 9.6% more for full coverage.

There are many national and local factors that have contributed to this trend. As the probability and financial risk of claims has increased, insurers have raised rates to compensate for the additional risk. On a national level, here are a few of the major factors that have influenced the cost of car insurance:

• Climbing used car prices: CPI data shows used car prices have grown by 32% since the beginning of 2020, according to BLS data. This has substantially increased the cost of payouts on total losses for insurers.
• Rising accident rates: After a long period of declining fatal accident rates, the U.S. has seen an uptick in recent years. According to data from the National Highway and Traffic Safety Administration (NHTSA), the U.S. saw a 10% increase in traffic fatalities from 2020 to 2021. More severe accidents means more payouts for insurance providers and more financial risk going forward.
• Increasing cost of car repairs: The cost of fixing cars following a covered loss has also gone up in recent years, adding to insurers’ financial liability. According to BLS data, the CPI for vehicle repairs and maintenance has increased by 32.2% since 2020.

Should You Get the Cheapest Car Insurance?

We encourage you to get the cheapest car insurance available if that’s all you can afford — just like Josh. The most important thing is staying in compliance with your state’s insurance laws. But if you can shop around and look at other plans and providers, it’s worth the time.

Ask an Expert

Martin F. Grace

Harry A. Cochran Professor of Risk, Insurance and Healthcare Management

Temple University

Fox School of Business

“There are a number of coverages, some mandated by the state, and others are optional. Liability coverage is required by state law and covers the risk of harm to others and bodily injury and property damages.”

Risks of Cheap Car Insurance

Buying the cheapest policy available from the cheapest provider can save you money, but it comes with a few risks. We’ve already told you about the risks of carrying minimum coverage, but there are a few other things to look out for when shopping for cheap auto insurance.

Poor Customer Service

Not all companies handle claims at the same standard. Cheaper providers may lack the customer support you get from more well-established companies that may cost a little more.

Who offers strong customer service: Allstate earned the highest overall rating in our 2024 auto insurance customer sentiment analysis. This reflects strong customer reviews across a variety of platforms and review scores from J.D. Power.

Slow Claims Processing

Some car insurance companies tend to take longer to process a claim than others. While your claim is being processed, you may be without a vehicle, which can be a major headache. Waiting longer for a company that processes claims more slowly could cause more issues than the savings are worth.

Who you can trust to handle claims: Erie Insurance claimed the highest score of providers offering cheap car insurance in the J.D. Power 2023 U.S. Auto Claims Satisfaction Study. This indicates that Erie customers were happier with their claims process than those of other providers.

Fewer Resources and Tools

Larger companies now offer apps and online services that can make the entire insurance experience easier and more convenient. Budget providers may lack some of these tools.

Who offers useful resources: State Farm has consistently high ratings for its apps and online services. This suggests that State Farm customers are satisfied with its resources and tools.

Best Cheap Car Insurance Companies: Six Under $66

The table below features six select auto insurance providers charging a national average of $66 per month or less. In addition to their cheap car insurance rates, these companies each scored above a 9 out of 10 overall in our 2024 auto insurance study.

Of the companies in this list, we rated Erie Insurance as our top pick overall. In our 2024 insurance study, Erie was named “Best for Basic Insurance Coverage.” USAA also scored well in all of our review categories, and while it has a cheaper national average than Erie, not everyone has access to USAA auto coverage. The company only offers policies to military members and their families.

How To Get the Cheapest Car Insurance Rates

Finding the cheapest auto insurance premiums takes time, effort and a little strategy. But with the money you can save by finding the best deal, it’s likely to be worth it. By following a few simple steps, you can give yourself a better chance of getting the best rates on auto coverage.

1. Determine Your Coverage Needs

Determining your coverage needs means identifying how much coverage you need based on your financial situation, where you live, how often you drive and other factors. If all you want is the cheapest car insurance available, a minimum policy is going to be your best bet. But if you want to insulate yourself from financial risk, consider a full-coverage policy.

To assess which kind of coverage makes sense for you, make sure to consider factors such as how much you drive, accident rates in your area and how much you need your vehicle for your daily life.

Car Insurance Policy Add-ons

Car insurance companies also offer coverage options that may be of value to you. Some of the more popular add-ons include:

• Roadside assistance: Covers the cost of emergency services such as towing, tire replacement and fluid services.
• Rental car reimbursem*nt: Covers the cost of a rental car while yours is unavailable following a claim.
• Gap insurance: Covers the difference between what you owe on a financed vehicle and its value at the time of a total loss claim.
• Rideshare insurance: Covers your vehicle while you are logged into the Lyft or Uber app waiting to accept a job.

2. Gather Your Information

To make sure your car insurance shopping process is as efficient as possible, you should gather the information you need to get quotes. Some providers and services ask for more information than others, but you’ll need at least some of the following information:

• ZIP code
• Vehicle identification number (VIN)
• Car mileage
• Car make, model and trim level
• Coverage needs
• Approximate miles driven per month
• Any other insurance products you’re shopping for

3. Gather Quotes from Multiple Providers

Once you’ve gathered everything you need to get quotes, it’s time to start shopping around. When you compare car insurance quotes, you can see who actually offers you the best rates since the quotes you receive reflect your actual information.

One way to do this is the old-fashioned method of reaching out to insurance companies one by one to get quotes, either over the phone, online or in person. Many people find this process to be time-consuming and arduous.

Another method is to find an insurance broker in your area and ask them to do the shopping for you. However, insurance brokers may not work with all companies in your area, so there may be options they can’t check out for you.

The most efficient and effective way to shop for car insurance quotes is likely to use an aggregator tool such as the ones featured on this page. These tools allow you to source quotes from multiple providers at once. According to Dr. Kunter Gunasti, associate professor of marketing and international business at Washington State University, these tools can be helpful.

Ask an Expert

Kunter Gunasti

Associate Professor of Marketing and International Business

Washington State University

“There are many online resources that…help you compare multiple insurance policies and provide you with the gist of everything you need to know about insurance policies.”

After trying each of these options, Josh told us he has a clear answer on what he would do next time he needs to shop for auto insurance.

“I had to spend three days total to find the car insurance I needed. In total, I had spent the most time on phone calls with single company agents when comparing and spent the least amount of time shopping online and working with brokers.

I would recommend comparing online and through brokers since it is easier to find the best and cheapest option. If you are going to talk to any agents, research online about coverage, insurance prices, and any discounts you may qualify for, and write down questions before speaking to anyone.”

4. Compare the Rates You Receive and Their Providers

After you receive a selection of auto insurance quotes, it’s time to compare them. Angelo DeCandia, an instructor of business at Touro University, says that finding the cheapest price is likely priority number one, but that shouldn’t be all you look at.

Ask an Expert

Angelo DeCandia

Instructor of Business

Touro University

“When comparing car insurance quotes, there are several major factors to consider but they vary amongst consumers. Unless money is no object, price should be paramount. But drivers should also consider customer service, helpful apps and the flexibility of making a claim.”

In our experience, comparing these quotes should reveal which providers offer the cheapest prices, which you can then use to help you make your decision.

Ask an Expert

Jeungbo Shim

Associate Professor, Risk Management and Insurance

University of Colorado Denver

“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.”

According to Dr. Shim, you should carefully examine the quotes before committing to a plan and company — judging the listed coverage and looking into the providers themselves.

5. Ask for Discounts

Before you sign your agreement, there is one more step you should take to make sure you’re getting the cheapest coverage: looking for discounts. Most insurance providers offer a healthy variety of discounts that can meaningfully reduce the cost of your policy. We dive deeper into what kinds of discounts you’re likely to find in the next section.

Insurance providers typically list the discounts they offer on their websites. However, not all discounts listed online are guaranteed to be available in your area, and your local office may offer others that aren’t listed. Talk to an agent and request a full list of available discounts and look for ones that you may be eligible for to get a final price on your car insurance policy.

Using Car Insurance Discounts To Get a Lower Premium

Most car insurance companies offer at least a few discounts that can lower the cost of your policy. You might be surprised by how much. Discounts for things like bundling multiple policies or for membership to a certain group or demographic can take off up to 30% from your monthly premium.

Bundling Discounts

One discount you’re likely to find with most providers is a bundling discount, sometimes called a multi-policy discount. This is applied when you combine your auto insurance policy with other types of insurance from the same provider, such as homeowners, renters, life or pet insurance.

Read more: Best Home and Auto Insurance

Other Car Insurance Discounts

In the list below, you’ll find some of the most common car insurance discounts on the market. Note that not every insurer offers every discount on this list.

• Military: For active or retired military members
• Senior: For policyholders 55 and older
• Student: For students who maintain good grades in school
• Homeowners: For people who own their home, rather than rent
• Good driver: For drivers who keep a clean record for three or more years
• Defensive driving: For drivers who complete an approved defensive driving course
• New car: For car owners who have purchased a newer vehicle, usually less than three model years old
• Safety features: For policyholders who have installed safety features such as anti-lock brakes, additional airbags or anti-theft technology
• Multi-vehicle: For people or households insuring more than one vehicle under the same auto policy
• Paperless: For policyholders who opt out of paper documents and choose digital-only communications
• Pay-in-full: For drivers who pay for their entire policy up front, rather than across monthly payments
• Sign online: For policyholders who sign documents online instead of on paper

More Ways To Save on Car Insurance

When you’re looking for the cheapest auto insurance, there are some things you can’t change — such as your driving history up to this point or your age. However, there are a few things you can do to try to bring the cost of your coverage down, including:

• Increase your deductible: A larger deductible means you’ll be on the hook to pay more out of pocket towards a claim, but it also tends to mean a lower premium.
• Lower coverage limits: You can keep the same coverages on your policy but lower the coverage limit to try to bring down the cost of your insurance. This leaves you at risk of being liable for costs that exceed these limits, but you can save on your policy.
• Consider telematics-based insurance: Most insurers offer telematics programs that track your driving habits and adjust your rates accordingly. Consistently practicing safe habits can lower your rate, but more than a few slip-ups can also increase them.
• Compare local providers: You can often find affordable rates from big, national providers. But your local or regional insurance companies may be able to compete. Don’t forget about smaller companies when shopping for auto coverage.

Cheapest Car Insurance: The Bottom Line

According to our driver profile, the cheapest car insurance in the U.S. overall is Auto-Owners, at a national average rate estimate of $39 per month for minimum coverage and $142 per month for full coverage. But Auto-Owners may not, in fact, have the cheapest rates for you. And you may not necessarily want the cheapest coverage available, for reasons we mentioned above.

Ultimately, cost is only one consideration. Taking the time to research your options and understand the basics of car insurance can help you find an affordable policy from a provider you feel good about. Rates may be up around the country, but you can still find a good deal if you know where and how to look.

Cheapest Car Insurance: FAQ

Below are some frequently asked questions pertaining to the cheapest car insurance.

Other Best and Cheap Insurance Company Guides

If you’re looking for other insurance coverage, we’ve provided our reviews of our top picks along with supporting cost information to assist your search:

Our Experts

How We Rated The Best Cheap Car Insurance Companies

Because 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:

• Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
• Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials:

• 800 hours researched
• 45 companies reviewed
• 8,500+ consumers surveyed

*Data accurate at time of publication.