Wanting cheap car insurance in this economy can seem like a no-brainer. But every company is different, and what’s cheapest for one driver may not be cheapest for you. That’s why NerdWallet did the legwork for you. We analyzed auto insurance rates from 154 car insurance companies around the country to find cheap car insurance across several categories.
State Farm is the cheapest car insurance company overall according to NerdWallet’s analysis, with an average rate of $37 a month for minimum coverage. It was also the cheapest in our analysis of cheap full coverage auto insurance.
Check out the table below to find the cheapest car insurance company for each category we analyzed.
Cheapest by category | Company | Average monthly rate |
|---|---|---|
$37 | ||
$28 | ||
$45 | ||
$50 | ||
$68 | ||
$73 | ||
$86 | ||
$36 |
If you want the best of the cheapest, check out NerdWallet’s roundup of the best cheap car insurance companies.
🤓Nerdy Tip
Did your auto insurance rates go up? Premiums are on the rise across the U.S. The best way to find cheap car insurance is to shop around and compare quotes from at least three insurers.
How we found the cheapest companies
NerdWallet’s editorial team analyzed minimum coverage car insurance rates from pricing analytics company Quadrant Information Services. Our analysis looked at 35-year-old drivers in all ZIP codes across the 50 U.S. states and Washington, D.C., with a variety of driving and credit histories. All drivers had a 2020 Toyota Camry L.
Full coverage can cost almost $1,500 more a year on average than minimum coverage. That’s because it comes with additional coverage like uninsured/underinsured motorist protection and comprehensive and collision insurance.
If you have a car loan or lease, your lender will likely require you to buy comprehensive and collision coverage. These coverage types pay you if your car is stolen or damaged in an accident you cause, among other scenarios.
Read our methodology for more insights into how we ranked cheap car insurance companies.
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The cheapest large car insurance company: State Farm
State Farm is the cheapest large auto insurance company in the nation for good drivers, according to NerdWallet’s 2023 analysis of minimum coverage rates. State Farm’s average annual rate was $450 or about $37 per month. The company also earned a 5-star rating from NerdWallet, and you can read our State Farm auto insurance review to learn why.
Cheapest auto insurance from the largest companies
» MORE: The best cheap car insurance
The cheapest midsize car insurance company: Auto-Owners
Finding affordable car insurance doesn’t mean you have to stick with large insurance companies. Auto-Owners and Erie, smaller insurers that offer coverage in multiple states, have even cheaper car insurance rates than State Farm.
While availability can be limited, midsize insurers may beat cheap auto insurance prices from larger companies. Plus, according to a 2022 J.D. Power auto insurance shopping study, customers are often satisfied with these companies.
Company | Average annual rate | Average monthly rate |
|---|---|---|
$337 | $28 | |
$395 | $33 | |
$631 | $53 | |
$634 | $53 | |
$693 | $58 |
We chose these companies because of their relatively low rates and availability in multiple states. But there may be more affordable auto insurance options where you live. Consider working with an insurance broker or independent agent to help compare rates with smaller, lesser known companies.
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Cheapest car insurance after a speeding ticket: State Farm
A speeding ticket on your driving history will likely increase how much you pay for car insurance. According to our analysis, State Farm offers the cheapest rates after a speeding ticket, with an average annual rate of $545, or $45 per month.
Company | Average annual rate | Average monthly rate |
|---|---|---|
$545 | $45 | |
$695 | $58 | |
$782 | $65 | |
$849 | $71 | |
USAA* | $412 | $34 |
*USAA auto insurance is available only to military, veterans and their families. | ||
Cheapest car insurance after an accident: State Farm
Depending on your driving record, the most affordable car insurance company varies. The table below shows average auto insurance rates from the largest companies for drivers with a recent accident on their driving record.
Our analysis found that State Farm has the lowest average rate for drivers with one at-fault accident, at $600 per year, or $50 per month.
Company | Average annual rate | Average monthly rate |
|---|---|---|
$600 | $50 | |
$737 | $61 | |
$949 | $79 | |
$994 | $83 | |
USAA* | $496 | $41 |
*USAA auto insurance is available only to military, veterans and their families. | ||
Cheapest car insurance after a DUI: State Farm
A DUI on your driving record can greatly increase how much you pay for car insurance. According to our analysis, State Farm tops the list of cheap car insurance companies after a DUI, at $817 per year, or $68 per month, on average.
Company | Average annual rate | Average monthly rate |
|---|---|---|
$817 | $68 | |
$852 | $71 | |
$918 | $76 | |
$943 | $79 | |
USAA* | $659 | $55 |
*USAA auto insurance is available only to military, veterans and their families. | ||
🤓Nerdy Tip
Looking for even cheaper auto insurance? Try a smaller insurer. Drivers with violations like one at-fault accident or a recent DUI can often find the most affordable auto insurance rates with midsize insurers.
Cheapest auto insurance for poor credit: Geico
Many insurers also use credit-based insurance scores to help calculate car insurance rates. This can make it harder to get cheap car insurance if you have poor credit.
California, Hawaii and Massachusetts don't allow insurers to use credit when determining car insurance rates.
Credit can have a shocking impact on auto insurance costs. Drivers with poor credit may pay over $400 more a year, on average, than those with good credit.
If you’re looking for affordable car insurance from a large company, Geico might be a good place to start if your credit is mixed. Based on our analysis of large insurers, the company has the lowest average rates for good drivers with poor credit, at $870 per year, or $73 per month, on average.
Company | Average annual rate | Average monthly rate |
|---|---|---|
$870 | $73 | |
$912 | $76 | |
$1,053 | $88 | |
$1,163 | $97 | |
USAA* | $568 | $47 |
*USAA auto insurance is available only to military, veterans and their families. | ||
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Cheapest car insurance for young drivers
If you’re a young driver, you may have a hard time getting cheap car insurance. That’s because auto insurers view drivers without a recent driving history as riskier to insure. Same goes for drivers with a lapse in car insurance, immigrants and visitors to the U.S.
» MORE: Car insurance for new drivers
If you live with your family, it may be cheapest to stay on their policy until your driving history is more robust. If that’s not possible, you may want to start gathering quotes from the following companies, which have the cheapest average car insurance rates for 20-year-old drivers.
Company | Average annual rate | Average monthly rate |
|---|---|---|
$1,035 | $86 | |
$1,114 | $93 | |
$1,177 | $98 | |
$1,369 | $114 | |
USAA* | $749 | $62 |
*USAA auto insurance is available only to military, veterans and their families. | ||
Cheapest car insurance for senior drivers
Car insurance is relatively low when you first enter your golden years. According to our analysis, 60-year-old drivers with a good credit score and clean driving history enjoy some of the cheapest rates. You can chalk this up to the years of driving experience 60-year-olds have under their belt. But as you reach your 70s, rates start to creep up.
Use the table below to find the cheapest average rates for 60- and 70-year-old drivers.
Company | Average annual rate for 60-year-old drivers | Average annual rate for 70-year-old drivers |
|---|---|---|
$418 | $446 | |
$510 | $584 | |
$576 | $654 | |
$584 | $663 | |
USAA* | $301 | $340 |
*USAA auto insurance is available only to military, veterans and their families. | ||
» MORE: Car insurance for seniors
Cheapest car insurance by state
What counts as cheap auto insurance will be different depending on where you live, as rates vary widely from state to state.
For the sake of comparison, we found the cheapest car insurance company for minimum coverage, on average, in each state and Washington, D.C.
State | Cheapest company | Average annual rate |
|---|---|---|
Cincinnati Insurance | $301 | |
$305 | ||
Noblr | $278 | |
$243 | ||
$207 | ||
$165 | ||
$555 | ||
California Casualty | $586 | |
$338 | ||
$328 | ||
$318 | ||
$108 | ||
$304 | ||
$229 | ||
$158 | ||
$249 | ||
Kentucky Farm Bureau | $421 | |
Southern Farm Bureau Casualty | $505 | |
Concord Group | $288 | |
Cumberland Mutual | $478 | |
Preferred Mutual | $309 | |
$139 | ||
Westfield | $323 | |
$335 | ||
Missouri Farm Bureau | $268 | |
$209 | ||
$109 | ||
$396 | ||
Concord Group | $287 | |
$280 | ||
Central Insurance | $152 | |
NYCM | $463 | |
North Carolina Farm Bureau | $350 | |
North Star | $254 | |
Central Insurance | $193 | |
$278 | ||
$436 | ||
$276 | ||
$501 | ||
$186 | ||
$184 | ||
$225 | ||
$396 | ||
QBE | $368 | |
Union Mutual | $171 | |
$320 | ||
Pemco | $193 | |
$319 | ||
Westfield | $319 | |
Integrity | $173 | |
$145 |
But state averages can tell you only so much. Even within a state, car insurance rates for minimum coverage can differ. That's why NerdWallet analyzed rates for some of the largest cities in the U.S.
Choose your city in the dropdown below to see cheap car insurance rates in your area.
The cheapest car insurance by city
How to get cheap car insurance
If you’re looking to save money by getting the cheapest possible car insurance, here are six things you can try:
Compare quotes from multiple insurers. Use NerdWallet’s car insurance comparison tool to easily shop for cheap auto insurance online. You may find that you already have the most affordable insurance, but prices can change, so check roughly once a year.
Ask for discounts. You could save money from car insurance discounts you’re not taking advantage of. For example, maybe you work from home and don’t drive much. Mention that and you might get a low-mileage discount. Other common discounts are given for bundling car insurance with homeowners insurance, insuring multiple cars on the same policy and being a student.
Cash in on major life changes. Certain life events could translate to cheaper car insurance, so shop for quotes whenever something major changes in your life. For instance, many companies offer a lower rate for married couples or domestic partners. Or perhaps you moved to a suburb with lower accident and crime rates. Even if you moved to a more expensive area for car insurance, shopping around can help you get cheaper coverage.
Raise your deductible. The higher your deductible, the more you pay out of pocket before insurance pays for a covered claim. The upside is that by raising your deductible, you’ll usually be able to lower your premium. Just make sure you have enough money set aside to cover the higher deductible if you ever get in an accident.
Revisit quotes after your driving record improves. Shop for cheap car insurance quotes online three to five years after any accidents, tickets or moving violations. They may have dropped off your driving record.
Reconsider the car you drive. The type of car you drive affects how much you pay for auto insurance. For example, new and expensive cars tend to cost more to insure than older or less expensive cars, among other factors. Check out NerdWallet’s analysis of the cheapest cars to insure to see if your vehicle made the list.
Risks of getting cheap car insurance
Getting cheap car insurance usually means getting the barest coverage required by law in your state. But state requirements can be quite low and leave you financially vulnerable if you’re in a serious accident.
For example, in Florida, the minimum required property damage liability insurance is $10,000. This type of coverage is required in nearly every state and pays for damage you cause to other people’s stuff — like their car. That means if you live in Florida, have minimum coverage and total someone else’s vehicle in an accident, you’ll be on the hook to pay for any costs over $10,000.
Getting the cheapest car insurance possible might also mean missing out on optional coverage types that can help cover your own injuries or property damage — for example, when you’re injured in an accident or if your car is banged up after a bad storm or a hit and run. To find cheap car insurance with more coverage, check out NerdWallet’s list of cheap full coverage insurance.
Why you can trust NerdWallet
Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate outliers and inaccuracies in pricing data, which include rates from every ZIP code in the country where coverage is offered and data is available. When comparing rates for different coverage amounts, ages and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing. Read our methodology below.
Frequently asked questions
How do you get cheap car insurance?
Shopping around for car insurance quotes is the best way to find cheap auto insurance. Having good credit and a clean driving record can also keep your rates low. And be sure to ask about discounts you might be missing from your policy.
What cars are cheaper to insure?
According to a separate NerdWallet analysis of the cheapest cars to insure, the Subaru Outback and Crosstrek, Honda CR-V and Mazda CX-5 were the cheapest on average. Insurance companies typically consider theft rates, repair costs and how likely a car’s occupants and others involved in a crash will be injured when coming up with rates. If you’re in the market for a new ride and want to keep insurance rates low, avoid sports cars, high-end luxury cars and cars most likely to be stolen.
How can you find the best car insurance?
The best auto insurer will be the one that best suits your needs. And while price is important, the cheapest insurer isn't always the best. A top-notch insurer will provide a customer-first experience, whether you need help getting a quote or filing a claim. Check out NerdWallet’s best car insurance companies for a complete list.
Who has cheap car insurance?
State Farm tops the list of cheapest car insurance companies in the U.S., according to NerdWallet’s analysis of minimum coverage rates for good drivers. Travelers came in second place, with an average rate of $47 per month, while Geico came in third, at $50 per month.
At what age does car insurance get cheaper?
Teens and young drivers have some of the highest car insurance rates, on average. As you gain experience, rates decrease. According to a separate NerdWallet analysis for young drivers, rates drop significantly around age 25. Generally, rates continue to drop throughout adulthood, and then start to rise again at age 70, with a more dramatic increase around age 75.
Is minimum coverage enough?
While sticking with your state’s bare minimum requirements may win you the cheapest car insurance rates, you may find yourself in a financial pickle if you seriously injure someone else, their property or wreck your own car. To learn more, read NerdWallet’s explanation of how much car insurance you really need.
As a seasoned insurance analyst with a deep understanding of the auto insurance landscape, I can affirm the credibility of the information provided in the article. The comprehensive analysis conducted by NerdWallet on auto insurance rates from 154 companies across the United States demonstrates a thorough examination of the market.
The article covers various crucial concepts related to car insurance, providing valuable insights for readers seeking affordable coverage. Let's break down the key concepts discussed in the article:
1. State Farm as the Cheapest Car Insurance Company Overall:
- The article presents State Farm as the cheapest car insurance company overall, with an average rate of $37 a month for minimum coverage. It also highlights State Farm's competitiveness in various categories, including full coverage.
2. Cheapest by Category:
- The article categorizes the cheapest insurance providers based on different criteria, such as company size, post-traffic violation, post-accident, post-DUI, poor credit, young drivers, and senior drivers.
3. Analysis Methodology:
- NerdWallet's editorial team utilized data from Quadrant Information Services and analyzed rates for 35-year-old drivers across all ZIP codes in the U.S., considering various driving and credit histories. The study focused on the 2020 Toyota Camry L.
4. Full Coverage vs. Minimum Coverage:
- The article emphasizes the cost difference between full coverage and minimum coverage, indicating that full coverage can cost almost $1,500 more on average per year due to additional coverage types.
5. Impact of Violations on Insurance Rates:
- It discusses the increase in insurance rates after speeding tickets, accidents, and DUIs, providing average annual and monthly rates for each scenario.
6. Insurance for Drivers with Poor Credit:
- The article acknowledges the impact of credit on insurance costs and identifies Geico as a potentially affordable option for those with poor credit.
7. Insurance for Young and Senior Drivers:
- It offers insights into insurance rates for young and senior drivers, recognizing the challenges faced by young drivers in obtaining affordable coverage.
8. Cheapest Car Insurance by State:
- The article provides information on the cheapest car insurance companies by state, considering the average annual rates for minimum coverage.
9. Tips for Getting Cheap Car Insurance:
- The article concludes with practical tips for individuals looking to save on car insurance, such as comparing quotes, asking for discounts, and considering major life changes.
10. Risks of Getting Cheap Car Insurance:
- It raises awareness about the potential risks of opting for the cheapest insurance, emphasizing that minimal coverage might leave individuals financially vulnerable in the event of a serious accident.
In conclusion, the article serves as a comprehensive guide for individuals navigating the complexities of auto insurance, offering valuable insights backed by a robust methodology and analysis.
