The lowest rates insurance
Let's compare the prices of two very comparable cars; one with extensive coverage (full coverage) and another with limited coverage (liability). Your range is wide when it comes to rates, but on average these are general lengths - Full Coverage => $1,000-$2,500/year Liability Insurance => $200-$800/year
The initial few thousand dollars you spend on full coverage may seem alarming at first, but your long-term investment is worth it for discounts on subsequent policies. For example, let's say you get in an accident after owning your car for 10 years. Without full coverage, you'll be paying $2,500 to replace your damaged vehicle.
Compare auto insurance rates to find the best auto insurance company
for your needs. Compare rates to find the best auto insurance company for your needs. Compare rates to find the best auto insurance company for your needs.
Compare auto insurance rates to find the best auto insurance company for your needs. Compare rates to find the best auto insurance company for your needs. Compare rates to find the best auto insurance company for your needs.
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Compare auto insurance rates to find the best auto insurance company for your needs. Compare rates to find the best auto insurance company for your needs. Compare rates to find the best auto insurance company for your needs.
Compare auto insurance rates to find the best auto insurance company for your needs. Compare rates to find the best auto insurance company for your needs. Compare rates to find the best auto insurance company for your needs.
Compare auto insurance rates to find the best auto insurance company for your needs. Compare rates to find the best auto insurance company for your needs. Compare rates to find the best auto insurance company for your needs.
Compare auto insurance rates to find the best auto insurance company for your needs. Compare rates to find the best auto
Car insurance for caravans is an essential safety feature for caravan owners. Caravan insurance is mandatory in most countries and if you fail to have it, your caravan could be taken away by the police and you could face heavy fines. Caravan insurance can be expensive, so how do you find the cheapest caravan insurance for your caravan?
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The Cheapest Car Insurance Companies (December 2021)
Did you know the exact same driver could be charged $32 per month by one insurance company and $104 per month by another? Our car insurance analysis — based on millions of quotes collected across the country — backs that up.
Beyond the data, the best advice we can give drivers looking for their best car insurance rates is to shop around. No single insurer will be the cheapest for every driver, but our research will give you a good foundation to start your search.
Our analysis found that USAA and State Farm are the most affordable major insurers in the country. USAA cost an average of $224 for a six-month policy, 49% below the national average. State Farm cost $309 (30% below the national average) for a six-month policy.
Although USAA is easily the cheapest option among major insurers, only active military members, veterans or their families will qualify for a policy.
Among insurers that have a smaller national footprint, Farm Bureau Insurance, at $251 for a six-month policy, and Erie, at $195, rank as the cheapest.
These insurers don't have the same name recognition as some of the companies you may recognize from national television campaigns, but could help you find savings if you're looking for the cheapest rate.
USAA is actually the cheapest of these three insurers and, like Geico, operates in all 50 states and D.C. Minimum coverage auto insurance costs $223 for a six-month policy, on average, which is the lowest rate by far. We list USAA last of these three insurers as only active military members, veterans and their families will be eligible. But as the fifth largest auto insurance company in the country, it's serving almost as many customers as other big names like Progressive and Allstate.
Click on a company name to read our full review.
How we determined the cheapest insurers: We collected quotes from 51 insurance companies across hundreds of ZIP codes (or more) in every state. Major insurers are noted with an asterisk, with major being defined as those who offered quotes in at least 20 states.
Quotes were for a sample driver and policy as described in our methodology.
A variety of factors can affect your car insurance rates, including your location, age, driving history, vehicle, financial profile and, maybe most importantly, elected coverage. Our rates above were for a sample 30-year-old driver with a clean driving history.
All rates are for a six-month policy with full coverage, rather than minimum coverage unless noted otherwise.
As you can see:
The price of car insurance can vary greatly between states. One company may be expensive in Utah but inexpensive in New York. Although State Farm did not rank as our cheapest car insurance company overall, it was the cheapest widely available and accessible insurer, meaning it operates in more than 40 states and there are no eligibility requirements.
USAA was often the cheapest option in any given state, but its eligibility requirements make it restrictive. If you are eligible, you should get a quote with USAA as it is available across the country.
In some states, a small, local company or affiliate could even offer you the best price. For example, the cheapest insurers on average in Kentucky, Louisiana, North Carolina and Virginia are their Farm Bureau affiliates.
Here, we've provided a list of the cheapest insurers in each state — on average — based on our research. Click on your state to see a deeper analysis on the least expensive car insurance in your area.
We identified the auto insurance companies with the cheapest rates, but depending on a variety of factors — location, driving history, financial profile and more — some insurers may be cheaper for certain types of drivers than others.
Shoppers looking for the best balance of affordability, strong customer service and features can compare the best auto insurance companies.
Given that USAA has eligibility restrictions and Farm Bureau is disproportionately expensive when you add more coverages, we rate Erie as the cheapest insurance company. And it's reliable to boot, given its strong customer service reputation. Erie's main downside is that it's only available in 12 states and D.C.
Whether you're looking for a car insurance policy that only meets your state requirements or a more extensive full-coverage policy, Erie was one of the most affordable non-USAA options for our sample driver.
Erie customers who are eligible for its rate lock program can avoid premium hikes that could cause rates to creep up over the years. This is a unique program where customers won't see their rates increase except for three reasons: you move to a different area or change where you park your car, add or remove someone from your policy or add or remove a car.
Additionally, despite its smaller size, Erie offers the same types of discounts that larger national insurers provide. These include premium reductions for having multiple policies, a vehicle equipped with anti-lock brakes or anti-theft equipment, as well as savings for young and senior drivers.
If you're not eligible for USAA and some of these smaller insurance companies are not offered in your state, we recommend State Farm as the cheapest overall insurance company and a great place to start your comparison shopping.
How insurance rates increase after an accident
Although Erie raised rates by 25% after an accident, a bigger penalty than State Farm, it remained the cheapest insurer for a driver with an at-fault accident on his record. But car insurance rates are highly variable, and the fact that State Farm penalizes drivers the least indicates that it is a good starting point for shoppers with an accident history looking for cheap insurance.
Other pros of State Farm include its positive marks for customer service and claims handling.
In fact, USAA is the cheapest company by quite a wide margin. While the average cost of minimum coverage only beats Farm Bureau by $27 for a six-month policy, Farm Bureau policies often require membership dues, which can range from $20 to $50 annually.
USAA stands out for more than just its affordability: It also has one of the best customer service reputations in the industry. According to our survey of current insurance customers, 62% of respondents rated its customer service as excellent and 78% were extremely satisfied with their most recent claim. Both those figures topped all qualifying insurers in the survey.
If you find yourself away from the wheel more times than not, a pay-per-mile auto insurance company such as Metromile may be the best company to go with.
Metromile was one of the first companies in the U.S. to determine premiums largely based on mileage. How much driving is too much when shopping with Metromile? Generally, for Metromile to be a good deal, drivers should drive fewer than 7,500 miles per year.
Overall, Geico was the cheapest auto insurance company for drivers with poor credit scores, averaging $1,193.
Broadly speaking, you should take two key steps to find the cheapest car insurance for you.
Taking the first step — knowing how much car insurance you need — is important for finding appropriately cheap car insurance because:
The following table gives a quick summary of the types of auto insurance coverage, whether you need them and how much you should have.
How much coverage you need will depend on your economic situation. For example, high-net-worth individuals should get liability limits similar to their net worth, which will probably exceed the state-required minimums.
Once you know how much coverage to buy, it's time to compare car insurance companies. Even when you opt for the exact same coverage levels with two different insurers, one company could be much cheaper for you than another based on how it calculates its rates.
It's easier than ever to compare insurance quotes using online quote tools. But you may want to talk to an insurance agent to ensure you get the most accurate quote possible
By talking to an agent, you can see if you qualify for discounts that may not be applied in the online quote tool process. Car insurance discounts are generally broken into four categories:
ValuePenguin analyzed nationwide insurance rates and found that a driver looking for a state-mandated insurance policy — the minimum coverage required — overpays by an average of $330 per year. Extrapolated across the country as a whole, this means Americans are overpaying for car insurance by almost $37 billion per year.
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