The Cheapest Car Insurance Is $27 per Month on Average, and USAA, Erie Insurance, Geico, State Farm and Progressive Offer the Lowest Average Rates
We at the Guides Auto Team have researched dozens of the best car insurance companies to find out which providers offer the cheapest car insurance rates. In this guide, we highlight the cheapest car insurance companies, rates and quotes and cover our top picks overall in detail.
Key Takeaways:
- The cheapest car insurance costs $27 per month on average, based on our cost estimates.
- Of major national insurers, Geico is typically the cheapest car insurance provider.
- Nationwide provides the cheapest average rates for drivers with a DUI.
- State Farm generally offers the cheapest car insurance for drivers with an accident or speeding ticket.
- Geico has the cheapest car insurance on average for drivers with poor credit.
- The best way to find the cheapest car insurance is to get a quote from at least three providers.
What Is the Cheapest Car Insurance?
The cheapest car insurance rates are $27 per month ($324 per year) for minimum-liability coverage from the Grange. In most states, minimum car insurance coverage is the cheapest option available as it only pays for others’ medical bills and property damage in accidents you cause.
Best Cheap Car Insurance
Of the major national car insurance companies, Geico offers the cheapest average rates ($39 per month and $468 per year) for minimum-liability coverage. However, the cheapest car insurance available varies from driver to driver.
What’s the Cheapest Place To Get Car Insurance?
Because insurance premiums are based on personalized criteria like your location, driving history and credit score, the best place to get car insurance isn’t the same for everyone. Here are the companies that provide the cheapest minimum-liability auto insurance options on average for several driver profiles:
- Cheapest overall: Geico as the cheapest major provider at $39 per month, the Grange as the cheapest local provider at $27 per month
- Cheapest for military members and their families: USAA at $28 per month
- Cheapest car insurance for teens: Erie Insurance at $284 per month for 16-year-old drivers
- Cheapest car insurance for seniors: Erie Insurance at $102 per month
- Cheapest car insurance for high-risk drivers: Nationwide at $239 per month for drivers with a DUI, State Farm at $157 per month for drivers with an accident and $150 per month for drivers with a speeding ticket
- Cheapest car insurance for drivers with poor credit: Geico at $173 per month
*The price information above includes average rate estimates for a 35-year-old driver with a good credit history and clean driving record, unless otherwise stated.
Cheapest Car Insurance Companies
When it comes to major national providers, American Family Insurance, State Farm, Geico and Liberty Mutual consistently offer some of the cheapest car insurance. The criteria we use to determine the cheapest car insurance companies takes rate estimates for minimum-liability and full-coverage policies from Quadrant Information Services and the number of discounts offered by each provider into account.
Top 10 Cheapest Car Insurance Companies
The table below highlights overall cost ratings, average rates for minimum-liability and full-coverage policies, and the number of discounts offered by the cheapest nationwide car insurance companies:
Cheap Major Car Insurance Company Overall Cost Rating Cheapest Minimum Liability Car Insurance Rates (Monthly Average) Cheapest Full Coverage Car Insurance Rates (Monthly Average) Number of Available Car Insurance Discounts American Family Insurance 9.3 $57 $128 18 State Farm 9.2 $45 $123 12 Geico 9.2 $39 $109 16 Liberty Mutual 9.2 N/A N/A 13 Nationwide 9 $51 $107 10 Travelers 8.8 $61 $139 16 Progressive 8.7 $57 $134 13 Root Auto 8.5 N/A N/A N/A Farmers 7.5 $61 $178 17 Allstate 6.5 $60 $174 13 *USAA 9.8 $28 $88 13
*While USAA received our highest cost score, its services are limited to military members, veterans and their families.
**The rate estimates above are for a 35-year-old driver with a clean driving record and good credit history.
Cheap Local Car Insurance Companies
The cheapest local car insurance companies are the Grange, Erie Insurance, Country Financial, Auto-Owners Insurance and Elephant Insurance. You can learn more about each provider’s costs and discount opportunities below.
Cheap Local Car Insurance Company Overall Cost Rating Cheapest Minimum Liability Car Insurance Rates (Monthly Average) Cheapest Full Coverage Car Insurance Rates (Monthly Average) Number of Available Car Insurance Discounts The Grange 9.7 $27 $62 10 Erie Insurance 9.7 $38 $103 6 Country Financial 9.4 $39 $108 11 Auto-Owners Insurance 9 $29 $111 12 Elephant 8.9 N/A N/A 14 Cheapest Car Insurance Rates
Below, we highlight national and state car insurance rates for minimum-liability and full-coverage auto insurance. The average national cost by company is based on our estimated analysis for a 35-year-old married driver with a good credit rating and a clean driving record.
Cheapest Car Insurance Coverage
While minimum-liability coverage is the cheapest level of coverage available in most states, most car insurance quotes include estimates for full-coverage policies for those who want a higher level of protection. Below, we highlight the cheapest nationwide car insurance rates for both coverage types:
Cheapest Liability Car Insurance
The cheapest minimum-liability car insurance rates are offered by Auto-Owners, Erie, Geico, State Farm and Nationwide. The table below provides a complete list of companies that offer the cheapest state minimum coverage:
Car Insurance Company Monthly Cost Estimate Annual Cost Estimate Auto-Owners $29 $349 Erie $38 $459 Geico $39 $468 State Farm $45 $543 Nationwide $51 $613 American Family $57 $685 Progressive $57 $687 *USAA $28 $333
*USAA car insurance is limited to military members, veterans and their families.
Read more: Cheapest Liability Car Insurance
Cheapest Full-Coverage Car Insurance
Nationwide offers the cheapest full-coverage car insurance from a major national provider, with average rates of $107 per month ($1,281 per year). The cheapest car insurance rates for a full-coverage policy are offered by Erie and Nationwide.
Car Insurance Company Monthly Cost Estimate Annual Cost Estimate Erie $103 $1,238 Nationwide $107 $1,281 Geico $109 $1,308 Auto-Owners $111 $1,337 State Farm $123 $1,481 American Family $128 $1,537 Progressive $140 $1,611 Travelers $139 $1,669 Allstate $174 $2,088 Farmers $178 $2,140 *USAA $88 $1,054
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*USAA car insurance is limited to military members, veterans and their families.
Read more: Cheapest Full-Coverage Car Insurance
Cheapest Car Insurance by State
Depending on the state you live in, the cheapest car insurance rates can be notably lower or higher than the national averages we’ve previously discussed. The cheapest provider in each state also varies considerably.
In the sections below, we highlight the providers offering the cheapest car insurance rates in each state for minimum liability and full coverage auto insurance.
Cheapest Minimum-Liability Insurance by State
The table below highlights the cheapest minimum liability insurance in all 50 states. Each row lists the cheapest company and annual cost estimates for the lowest rate in each state:
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