If you are looking for the cheapest car insurance, you have come to the right place. We analyzed rates from auto insurance companies across the country to find cheap car insurance for a variety of drivers. The cheapest auto insurance will likely be the minimum coverage required in your state, so we focus our rate analysis on those minimums. In many states, this is just liability insurance, which covers property damage and medical bills for others due to the accident you caused.
Why you can trust us: Our authors and editors follow strict editorial guidelines to ensure fairness and accuracy in the writing and analysis of our data. You can trust the prices we show you because our data analysts take strict measures to eliminate outliers and inaccuracies in price data, which include rates from every zip code in the country where coverage is offered and data is available. When comparing rates for different amounts of coverage, age, and background, we only change one variable at a time, so you can easily see how each factor affects price. Read our methodology.
Another alternative is full coverage, but it can cost more than $1,000 more per year on average than the annual minimum policy. That's because it comes with additional coverage such as uninsured/underinsured rider protection and comprehensive and collision insurance.
If you need more than a bare bones policy, check out our analysis of the best cheap full insurance insurance. If you're just looking for the cheapest car insurance, we've listed the minimum affordable coverage providers below.
How we found the cheapest companies
The editorial team analyzed minimum coverage car insurance rates from price analysis firm Quadrant Information Services. Our analysis looked at 40-year-old drivers in all ZIP codes in all 50 U.S. states and Washington, D.C., with varying driving and credit histories. All drivers have a 2019 Toyota Camry L.
The cheapest car insurance
Geico is the cheapest major auto insurance company in the country, according to a recent analysis of minimum coverage rates. Geico's average annual rate is $354, or about $29 per month. The company received a 4.5 star rating.
Here are the cheapest annual auto insurance rates for the six largest auto insurance companies in the United States. We also include average rates for some small companies. This rate is only for state-mandated minimum coverage. Our "good driver" profile is that of a 40-year-old with no moving offences and credit at a "good" level.
These rates are only benchmarks; The cheapest car insurance for you may be different.
Cheapest car insurance from the biggest companies
1. Geico
2. State Farm
3. Progressive
4. Farmers
5. Allstate
Cheap car insurance from small companies
Finding affordable auto insurance doesn't mean you have to stick with a large insurance company. Central Insurance, MMG and Secura, small insurers that offer coverage in some states, have cheaper auto insurance rates than Geico.
While availability can be limited, regional and small insurers can beat the cheapest car insurance prices from larger carriers. Plus, they often have great customer service.
2. MMG
3. Secura
We chose these companies because of their low rates and availability in some states. But there may be more affordable car insurance options where you live. For example, many Farm Bureau insurance companies are only available in one state, but they are often among the cheapest in our analysis.
Cheap auto insurance for poor credit
Your driving record isn't the only factor that can increase your fares. Many insurance companies also use credit-based insurance scores to help calculate auto insurance rates. This can make it harder to get cheap car insurance with poor credit in many states.
Credit-based scores include the same factors as regular credit scores, such as debt and payment history, but weigh them differently. California, Hawaii, Massachusetts and Michigan do not allow insurers to use credit when determining auto insurance rates.
Credit can have a surprising impact on insurance costs. Drivers with bad credit can pay more than $400 more per year on average than those with good credit.
If you're looking for affordable auto insurance from a large company, Geico might be a good place to start. Based on our analysis, companies have the lowest average rates for good drivers with bad credit.
However, you should always shop around for the best auto insurance rates, no matter your credit history.
How to find cheap car insurance for new drivers
If you are a new driver, you may have difficulty getting cheap car insurance. That's because auto insurance companies see drivers without a recent driving history as more at risk of being insured. The group includes those with new licenses, drivers with lapses in auto insurance, immigrants and visitors to the U.S.
To get the cheapest car insurance, you will want to shop around and compare policies from different companies each year. If you live with your family, it may be the cheapest to stick to their policies until your driving history is stronger.
How to get cheap car insurance
If you are looking for the cheapest car insurance, it is important to compare quotes from several insurance companies. You can use NerdWallet's car insurance comparison tool to easily shop for cheap car insurance quotes online. You may find that you already have the most affordable insurance; But prices can change, so check about once a year.
These tips can help you get a lower car insurance rate:
Ask for a discount. There may be savings you don't take advantage of. For example, maybe you now work from home and drive less often than when you bought your policy. Mention that and you may get a low mileage discount.
Think back to your deductible. Higher collisions and comprehensive deductibles may make sense if you rarely drive or are comfortable with financial risk. Increasing your deductible means you'll owe more if you have to file a comprehensive or collision claim. But it's a surefire way to get cheaper auto insurance.
Know when to cut coverage. Don't remove coverage just for the sake of cheap car insurance. But if you're driving an older car, you might be able to drop comprehensive coverage and collisions. This type of coverage only pays up to the current value of your car, minus the deductible.
Cash in on a big change in life. Certain life events can translate to cheaper auto insurance, so shop for quotes whenever there is a major change in your life. For example, many companies offer lower rates for married couples or domestic couples. Or maybe you're moving to a suburb with lower rates of accidents and crime. Even if you're moving to a more expensive area for auto insurance, shopping around can help you get cheaper coverage.
Review the quote after your driving record improves. Shop for cheap car insurance quotes online three to five years after an accident, ticket or moving violation. They may have taken down your driving record.
