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GEICO has the cheapest overall auto premiums in the U.S., with an average monthly rate of just $70 per month. In fact, GEICO is the cheapest auto insurer in many categories across the board.
But that doesn’t mean GEICO is the cheapest option for everyone. Several insurers stand out as the cheapest in some categories. And because each insurance company uses its own formula for setting rates, the cheapest on average may not be the cheapest for you. That’s why it’s important to shop around for multiple quotes before purchasing your next policy.
- GEICO has the cheapest average premiums in the U.S., followed by Auto-Owners and Erie, with monthly rates as low as $70.
- Several factors affect the cost of your insurance premiums, including your age, driving history, credit history, and more.
- You can save money on your insurance rates by taking advantage of discounts, reconsidering your policy needs, and shopping around for the best rates.
In This Article:
Snapshot: Cheapest Car Insurance by Category
If you’re in the market for car insurance, you want a policy that offers the protection you need while still coming at an affordable cost. No matter your age, driving record, credit score, or anything else, shopping around can help you find the best rate for your unique situation.
The table below features a snapshot of the cheapest insurers for several important categories. We’ll go into more detail on each in the sections below.
|Category||Company||Average Monthly Rate|
|Regional insurers||Farmers Mutual of Nebraska||$60|
|Drivers with a speeding ticket||GEICO||$87|
|Drivers with an at-fault accident||Auto-Owners||$98|
|Drivers with a DUI||State Farm||$119|
|Drivers with good credit||Auto-Owners||$55|
|Drivers with bad credit||GEICO||$106|
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The Cheapest Car Insurance Companies of 2023
In the confusing world of auto insurance, one thing’s for certain: There’s no shortage of companies to choose from, and it can be a challenge to know which offers the best coverage or the lowest price.
Shopping around and comparing quotes from multiple companies can help you identify the companies with the best premiums for your unique insurance profile. But it can also be helpful to know which companies offer the most affordable average rates to drivers in a similar situation based on age, driving record, location, and other factors.
To start, we’ve rounded up the cheapest overall car insurance companies this year, which you can find in the table below.
|Company||Average Monthly Rate|
GEICO offers the overall cheapest car insurance coverage, with an average monthly rate of $70. But other insurers — such as Auto-Owners and Erie — aren’t far behind. In fact, all five of the cheapest car insurance companies have monthly rates within $25 of each other.
Of course, these are just average rates. The companies on our list may not be the cheapest for you based on your unique situation. As you’ll learn in later sections, the cheapest company for you is likely to vary based on your age, driving history, credit score, location, and more.
But first, let’s dive into a little more detail on each of the cheapest companies on this list.
Average monthly quote: $70 per month
Compare.com rating: 4.65 out of 5
Trustpilot rating: 1.3 out of 5
Better Business Bureau (BBB) rating: A+
- Cheapest average rates of any company
- Many available discounts
- Usage-based insurance savings
- Hit-or-miss customer service
- Gap insurance not available
- Few local agents
GEICO offers the cheapest car insurance policies of any insurer in America, according to Compare.com internal data, with average insurance rates of just $70 per month. But the company also offers plenty of other ways for policyholders to save with discounts.
For example, GEICO offers a discount for safe drivers through its usage-based DriveEasy program. In fact, GEICO has the top-rated usage-based insurance program, according to J.D. Power’s 2023 U.S. Auto Insurance Study.
Average monthly quote: $75 per month
Compare.com rating: Not rated
Trustpilot rating: 2.3 out of 5
BBB rating: A+
- Above-average insurance claims satisfaction
- Many available coverage options
- Cheapest rates for drivers with an accident
- Online quotes not available
- Only available in 26 states
- Poor customer satisfaction in some states
Auto-Owners can be a great option if you want cheap car insurance rates and a personalized experience. Rather than shopping for insurance online, Auto-Owners has you work directly with an agent (which could be a pro or a con, depending on your preferences).
Auto-Owners offers unique insurance discounts and coverages. For example, you may be eligible for diminished value coverage, common loss deductibles, accident forgiveness, and more. And if you have an at-fault accident on your record, Auto-Owners may be your cheapest option, according to our research.
Average monthly quote: $82 per month
Compare.com rating: 3.8 out of 5
Trustpilot rating: 3.0 out of 5
BBB rating: A+
- Highly rated insurance claims satisfaction
- Many available coverage options
- Rate Lock program prevents premium price hikes
- Only available in 13 states
- Fewer available discounts than many competitors
- No usage-based insurance program
In addition to having the third-cheapest insurance coverage in the U.S., Erie Insurance also has one of the best lineups of coverage options. For example, you can expand your policy with unique coverage options such as diminishing deductible, accident forgiveness, windshield repair, pet injury coverage, and more.
Another reason to choose Erie is its Rate Lock program, which prevents your rate from increasing unless you make certain changes to your policy, such as moving or changing the drivers or vehicles. You won’t even see a rate increase after a claim unless you make one of these changes.
4. State Farm
Average monthly quote: $86 per month
Compare.com rating: 4.3 out of 5
Trustpilot rating: 1.7 out of 5
BBB rating: B-
- Cheapest coverage for drivers with a DUI
- High customer satisfaction scores
- Savings for usage-based insurance
- Gap insurance not available
- High number of customer complaints
- Fewer available discounts than many competitors
State Farm is the top auto insurance company in the U.S. in terms of total premiums. Combine that with the company’s affordable rates and highly rated customer satisfaction across the board, and it’s hard to go wrong.
State Farm is a good insurer for just about anyone, but it’s particularly well-suited to a few specific situations. First, it has the cheapest average rates for drivers with DUIs. It also offers usage-based savings through its Drive Safe & Save Program, and safe drivers can save up to 30% on their premiums.
5. American Family
Average monthly quote: $94 per month
Compare.com rating: 3.63 out of 5
Trustpilot rating: 4.5 out of 5
BBB rating: A
- More available discounts than most insurers
- Multiple usage-based programs
- High customer satisfaction scores
- Only available in 19 states
- Doesn’t have the cheapest rates for any category
American Family isn’t quite as cheap as some of its competitors, but it has several ways customers can save money.
First, American Family has one of the largest lineups of discounts of any auto insurer. Some unique discount options include a volunteer discount and a generational discount.
American Family also makes it easy to save by having two different usage-based programs to choose from. First, as with many other companies, you can save by opting into a usage-based insurance program for safe drivers — DriveMyWay or KnowYourDrive, depending on your state. The company also has a mile-based program called MilesMyWay. As a pay-as-you-go program, this policy only requires you to pay for the miles you actually drive.
Cheapest Large Insurance Company: GEICO
Large insurers — GEICO, State Farm, Progressive, and other well-known companies — make up the vast majority of the auto insurance market. In fact, the top 10 auto insurers make up more than three-quarters of the insurance market in terms of premiums written, according to the Insurance Information Institute (Triple-I).
Getting insurance through a large company has several benefits, including lower rates, more discounts, and more robust digital tools. It’s also quite easy to get quotes from online companies. Most of them allow you to do so online in just a few minutes.
The table below shows the five cheapest large insurance companies for both liability and full-coverage auto insurance policies. Each one offers coverage in at least 25 states, though most operate nationwide.
|State||Liability Only||Full-coverage Rates|
We’ve already talked about how GEICO is the cheapest overall insurer in the U.S., so it’s no surprise that it also tops the list of the cheapest large insurers. It has the lowest premiums for both liability-only and full coverage, at just $42 and $97 per month, respectively.
It’s also worth noting that there’s a significant difference in premiums between different companies, even for those on the list of the cheapest insurers. For example, the average liability insurance rate through Travelers is about twice as high as the same coverage through GEICO.
Yet another reason why comparing quotes is so important.
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Cheapest Regional Insurer: Farmers Mutual of Nebraska
Though most people choose to get their car insurance through a large national company, there are also some major benefits to working with a small, regional insurer.
For example, you’re likely to get more personalized service through a local agent. Small insurance companies don’t always allow you to get online quotes, but it’s just as important to shop around to find the best rate.
Below, you can see the five cheapest small, regional insurance companies. The table includes only companies that offer policies in fewer than five states.
|Company||Liability Rates||Full-coverage Rates|
|Farmers Mutual of Nebraska||$25||$95|
|Patriot Insurance Company||$28||$94|
|North Star Mutual||$33||$150|
|Concord Group Insurance||$34||$66|
Farmers Mutual of Nebraska has the cheapest liability rates of any regional insurance company, while Concord Group Insurance is the cheapest for full coverage. The good news is that you can get affordable rates from any of these companies, especially for liability coverage.
It’s worth noting that because these are small companies, their average rates are heavily influenced by which states they operate in. Consider researching small insurance companies in your state to see if this type of policy might be right for you.
Cheapest State-Minimum Insurance: Auto-Owners
Nearly every state in the U.S. requires you to purchase a minimum amount of liability insurance, — usually bodily injury liability and property damage liability — though the required minimum coverage differs from state to state. The coverage your state requires can play an important role in how much you pay since more coverage generally results in higher rates.
Your state’s minimum liability coverage is the cheapest type of insurance policy you can buy. The table below rounds up the cheapest insurance companies for minimum liability policies.
|Company||Average Liability Rate|
Auto-Owners offers the cheapest minimum liability insurance rates, though all five of the companies listed in the table offer competitive rates.
Of course, the insurer that’s cheapest for you will depend heavily on where you live. Certain companies offer cheaper car insurance rates for minimum coverage in certain states.
Cheapest Full-Coverage Insurance: GEICO
While liability-only insurance is the cheapest type of policy, it doesn’t offer all the protection that some drivers need. After all, liability insurance only pays for damages and injuries to other parties.
Because it includes more protection, full-coverage insurance is also more expensive — but by shopping around, you can still find affordable rates.
We’ve done some of the work for you by identifying the five cheapest companies for full-coverage insurance.
|Company||Average Full-Coverage Rate|
GEICO has the cheapest average rates for full-coverage insurance, which is no surprise since it also has the cheapest overall rates.
Remember that there’s no set definition of full-coverage insurance. The only way to determine your full-coverage rate is to get personalized quotes based on the coverage you actually want.
Expert Tips for Getting Cheaper Auto Insurance
No matter where you live or your personal situation, there are steps you can take to save money on your insurance premiums.
- Save with discounts: Most insurance companies offer discounts to help reduce your premiums. Common discounts help you save for driving a safe vehicle, paying your premiums up front, practicing safe driving, and more.
- Bundle your policies: Insurance companies often offer discounts when you bundle your auto insurance policy with other insurance products, such as your homeowners, renters, or life insurance.
- Adjust your auto coverages: It’s important to ensure you have enough coverage to protect yourself, but not so much that you’re paying more than necessary. You can adjust your coverages by either reducing your limits or dropping certain coverages.
- Increase your deductible: The lower your insurance deductible, the higher your premiums — and vice versa. You can generally save on your premiums by increasing your policy deductible, but make sure you can afford the extra out-of-pocket expense if you need to file a claim.
- Shop around for coverage: The same company won’t be the cheapest for every person or situation. It’s important to shop around and get free quotes from multiple companies to compare and find the cheapest one for you.
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Nick Schrader, insurance agent and owner of Second Western Insurance Services, says that while shopping can help you get the best rate for your situation, your rates ultimately come down to your personal situation — most importantly, your driving history.
“The best way to get affordable rates on insurance is to drive safely, avoid tickets and accidents, and apply available discounts to your auto insurance,” Schrader advises.
Cheapest Car Insurance Companies by State
Insurance premiums vary significantly from state to state for several reasons. Each state has its own minimum auto insurance requirements and unique insurance laws, which can affect the local insurance rates.
Other factors like population density, uninsured driver rates, and more can also affect a state’s insurance premiums.
We’ve compiled a list of the average premium and cheapest car insurance companies in each state to help give you a starting point when shopping for your new policy.
|State||Statewide Average Rate||Cheapest Company||Cheapest Average Rate|
|Georgia||$165||Georgia Farm Bureau||$76|
|New Hampshire||$78||Hanover Insurance||$44|
|North Dakota||$104||State Farm||$41|
|Rhode Island||$155||State Farm||$50|
|South Carolina||$117||American National||$55|
|Virginia||$113||Virginia Farm Bureau||$52|
|West Virginia||$109||State Farm||$44|
Vermont has the cheapest average insurance premiums, while New York has the most expensive.
The cheapest insurer for you may vary depending on your state, but GEICO is the cheapest in nearly half of all states.
Cheapest Car Insurance Companies by Age Group
Your age is one of the most important factors that affect your car insurance costs. Generally, teens and young drivers pay the highest rates, but those rates gradually decrease as you get older. But they typically increase again slightly once you reach your 70s.
The table below shows the average rate and the cheapest insurance company for drivers of different age groups, broken down into teens, young adults, middle-aged drivers, and seniors.
|Age Group||National Average Rates||Cheapest Company||Cheapest Average Rates|
|Young adults (25-year-olds)||$155||GEICO||$80|
|Middle age (40-year-olds)||$130||GEICO||$69|
GEICO offers the cheapest average insurance premiums for all four age groups, all the way from teens to seniors. Not only is it the cheapest, but it offers average rates for each age group that are nearly 50% cheaper than the national average.
In the next few sections, you can learn more about car insurance rates for various age ranges.
Cheapest car insurance for teens: GEICO
Car insurance is more expensive for teens than it is for any other age group. Teen drivers lack the experience older drivers have, and according to the Centers for Disease Control and Prevention (CDC), they’re more likely to engage in high-risk driving activities and be involved in fatal car accidents.
If you’re shopping for car insurance for a teen, there are ways to save on your premiums. For example, as the cheapest insurance company for teens, GEICO (and my other insurers) offers discounts specifically for teens, including its good student and driver’s education discounts.
Cheapest car insurance for young adults in their 20s: GEICO
Once you reach your 20s, you’ll see your insurance premiums decline significantly, especially around age 25. GEICO has the cheapest car insurance for drivers in their 20s, at just $80 per month, on average.
Many insurers, including GEICO, offer ways for young drivers to save money on their premiums when they’re in their 20s, including discounts for being a safe driver, having certain vehicle safety features, and more.
Cheapest car insurance for seniors: GEICO
Drivers in their 50s and 60s tend to pay the cheapest insurance premiums of any age group. These drivers have years of experience, tend to make safer decisions, and have lower-risk habits. But many senior drivers see their premiums increase again around age 70.
GEICO offers the cheapest car insurance for seniors. This company, and others, offer a variety of discounts that could help seniors save, including safe driver discounts. Additionally, some insurers offer a discount specifically for older drivers who take defensive driver courses.
Cheapest Car Insurance Companies by Driving Record
Your driving record is one of the most important factors that affect your driving rates. And the good news is that it’s one that’s largely within your control.
Driving infractions generally stay on your driving record for between three and five years, depending on your state. But, unfortunately, during those years, your premiums can be higher.
We’ve identified the cheapest insurance companies for drivers with clean records, as well as those with various infractions on your record. As you can see, the amount your premiums will increase depends on the severity of the infraction, with DUIs generally resulting in the largest increases.
|Driving Record||National Average Rates||Cheapest Company||Cheapest Average Rates|
GEICO offers the cheapest car insurance rates for drivers with clean records and those with a speeding ticket. But if you have an at-fault accident or a DUI on your record, you may be better off shopping with Auto-Owners or State Farm.
In the following sections, you can learn more about how various driving violations are likely to affect your premiums.
Cheapest car insurance after a speeding ticket: GEICO
Car insurance rates usually increase after you get a speeding ticket. The average rate increase after a ticket is 37% nationwide, according to Compare.com data. But the extent of your rate increase can depend on how fast you were driving, whether you have other tickets on your record, and more.
GEICO has the cheapest insurance rates for drivers with a speeding ticket — just $87 per month — but you should still shop around to make sure you find the company that offers you the best quote.
Cheapest car insurance after an at-fault accident: Auto-Owners
Insurance premiums increase by an average of 44% after an at-fault accident, according to Compare.com data. In some cases, your rates could also increase after an accident where you aren’t at fault, but it’s not as common.
Auto-Owners has the cheapest insurance premiums for drivers with an at-fault accident, at $98 per month.
You may be able to save on car insurance after an accident if you have accident forgiveness on your policy. And by focusing on driving safely moving forward, you can prevent future rate increases.
Cheapest car insurance after a DUI: State Farm
A DUI is one of the most serious driving infractions you can have on your record and, as a result, can cause the most significant increase to your premiums. We found that rates increase by an average of 94% nationwide after just one DUI.
State Farm has the cheapest premiums for drivers with DUIs on their records, with average rates coming in less than half of the national average.
Unfortunately, shopping for insurance after a DUI can be a challenge, and you may be denied coverage by some insurers. It’s more important than ever in this situation to shop around for the best rates.
Cheapest Car Insurance Companies by Credit History
You may be surprised to learn that, among other factors, your credit history can help determine your insurance premiums.
Companies use a credit-based insurance score when determining insurance rates. This score gives a prediction of how likely you are to file a claim, but each insurer uses its own formula when calculating it. Your credit history (though not necessarily your credit score) is just one of the factors that go into your credit-based insurance score, and the better your credit history, the lower your premiums will be.
It’s worth noting that four states — California, Hawaii, Maryland, and Massachusetts — prohibit insurance companies from using credit history as a factor when setting insurance rates. If you live in one of these states, you don’t have to worry about poor credit negatively affecting your monthly bill. Other states have attempted to pass similar initiatives, so that list could grow in the future.
In the table below, you can see the national average rates for drivers of each credit profile, as well as the cheapest insurers for each.
|Credit Score||National Average Rates||Cheapest Company||Cheapest Average Rates|
There’s a significant difference between the average premiums for drivers with good credit versus those with poor credit. A poor credit history can cost you upwards of $179 per month on your insurance premiums.
Cheapest car insurance for good credit: Auto-Owners or GEICO
Drivers with excellent credit pay lower insurance premiums than drivers of other credit profiles. Auto-Owners has the cheapest rates for drivers with “excellent” credit ($55 per month), while GEICO is the cheapest if you have a “good” credit score ($69 per month).
However, because each company uses its own formula, it’s still important to get car insurance quotes from multiple companies if you want the best possible deal.
Cheapest car insurance for bad credit: GEICO
If you have bad credit, you’ll probably pay higher insurance premiums because of a perceived increased risk. GEICO has the cheapest insurance premiums for drivers with bad credit, so you may be able to save money by getting a policy through the insurance giant. Just make sure to shop around to confirm that’s the case for you.
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Cheap Car Insurance FAQs
Before shopping for cheap auto insurance, make sure to read the answers to these frequently asked questions.
Which company has the cheapest auto insurance?
GEICO has the cheapest average insurance premiums, at just $70 per month. But the cheapest company for you will depend on your location, driving history, credit score, age, and more.
Which company has the cheapest full-coverage insurance?
GEICO has the cheapest full-coverage insurance, with an average monthly premium of just $97. Auto-Owners, Erie, State Farm, and American Family are also among the cheapest for full coverage.
What’s the best way to get cheap car insurance?
The best way to get affordable car insurance is to maintain a clean driving record and compare quotes every six months.
If you show insurers you’re a safe driver, you can generally qualify for the lowest rates. But the best way to save — regardless of your driving record — is by shopping around for the best quote.
Can you negotiate to get cheaper insurance?
Car insurance premiums aren’t usually negotiable, but you can reduce your rate by making changes to your policy. For example, reducing your coverage, increasing your deductible, and taking advantage of discounts can all help you lower your rate.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.
- J.D. Power, “2023 U.S. Auto Claims Satisfaction Study,” Accessed November 6, 2023.
- J.D. Power, “2023 U.S. Auto Insurance Study,” Accessed November 6, 2023.
- National Association of Insurance Commissioners, “Complaint Index,” Accessed November 6, 2023.
- Insurance Information Institute. “Facts + Statistics: Auto Insurance,” Accessed November 6, 2023.
- National Conference of State Legislators, “States Consider Limits on Insurers’ Use of Consumer Credit Info,” Accessed November 6, 2023.
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