Buy Cheap Auto Insurance in 2023

Insurance for cars, trucks, ATVs, and other moving vehicles accounts for 16% of your annual costs. If you want to pay less for auto insurance, read our complete guide on the cheapest auto insurance companies.

We found that Geico and State Farm are the cheapest companies across the country, but State Farm and Nationwide offer more competitive rates for high-risk drivers and those with poor credit. However, insurance rates vary widely based on city and state, and regional insurers like Erie, Farm Bureau, and Auto-Owners can offer cheap quotes to drivers in select states.

Keep reading to compare auto insurance rates by state and find the cheapest car insurance company where you live. We explain everything you need to know about finding affordable coverage and provide an auto insurance calculator to help you figure out what kind of policy you need.

What is the cheapest car insurance company for you?

The cheapest auto insurance company for you depends on where you live, the coverage you need, and your driving record.

If you’re a good driver, the cheapest car insurance is probably Geico auto insurance. You’ll get better quotes from State Farm auto insurance if you have an accident or DUI on your record, and Nationwide car insurance is cheaper for drivers with bad credit.

Not sure which is the right company for you? Finding the right auto insurance company comes down to knowing what kind of driver you are and the policy you need. Insurers consider different variables when determining your rates, and you’re less likely to be surprised by your insurance quotes when you know how you look to a provider.

Which drivers get the cheapest insurance rates?

Drivers who haven’t gotten into an accident, filed a claim, or received any other traffic violation over the past three years get the cheapest insurance rates. You’ll pay even lower rates if you can maintain a clean driving record for five years or more.

Of course, auto insurance for teenage drivers costs the most due to inexperience. Without a driving history, insurance companies consider teen drivers high risk and charge them XX% more per month.

Auto insurance rates don’t go down until you turn 25, and drivers in their 40s and 50s have the cheapest auto insurance.

Even without a spotless record, you can still find affordable insurance quotes. For example, drivers who work from home or have short commutes can qualify for low-mileage discounts or save money with a pay-per-mile auto insurance policy. You can also reduce coverage to liability-only on older vehicles to lower rates.

Below, we’ve compared auto insurance rates by age, driving record, and policy type to find the cheapest car insurance companies for any driver. Keep reading to see which is the most affordable insurer based on your coverage needs and driving habits.

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The Cheapest Auto Insurance Companies

This table shows the average monthly insurance rates from the cheapest auto insurance companies in the country.

Overall, the cheapest insurance is Erie Insurance auto insurance, USAA auto insurance, and Farm Bureau Mutual auto insurance. Unfortunately, coverage availability is limited based on where you live and whether you’re an active or retired member of the U.S. military. You can get cheap insurance quotes on customizable policies if you qualify.

Regarding national companies, Geico and State Farm offer the lowest rates to most drivers. State Farm won’t raise your rates as high after an at-fault accident or DUI/DWI, and Nationwide won’t punish drivers with poor credit. 

Take a closer look at each company and read our insurance company reviews below to learn about coverage options and how to get the cheapest rates on auto insurance.

Cheapest Auto Insurance Company Overall: Geico

Geico offers the cheapest car insurance rates out of all the popular companies. Coverage is available nationwide, and good drivers with no accidents or claims will get the best rates. Learn more about Geico by visiting our Geico auto insurance review.

Despite having the lowest auto insurance quotes, Geico raises rates higher after a claim than other companies. For example, Geico charges $50 more per month for car insurance rates after an accident versus drivers who only pay $20 more with State Farm. Still, Geico’s rates are cheaper than other competitors, including Progressive and Allstate. 

Cheapest Auto Insurance for Minimum Liability

Minimum liability auto insurance is the lowest coverage amount you can carry to drive a vehicle legally. Your liability limits depend on local state laws, and higher limits can lead to more expensive rates. Geico offers the lowest rates for drivers in most states for minimum insurance.

Drivers save around $20 per month by choosing Geico, but your rates will increase if you get into an accident or file a claim.

Cheapest Auto Insurance for Full Coverage

State law won’t require full coverage auto insurance, but your auto loan or lease will. Full coverage typically includes collision and comprehensive insurance on top of the required minimums in your state, so it costs more per month.

Again, drivers save the most money with Geico no matter where they live.

Drivers pay around $40 less than the national average for full coverage with Geico, and only Geico and State Farm offer full coverage auto insurance quotes for under $100 per month. 

Cheapest Auto Insurance for Good Drivers: Geico

Geico rewards drivers who remain accident and claim-free with the lowest average rates. It also has competitive liability-only and full coverage policies for teens, senior drivers, and those with poor credit if they maintain a clean driving record.

Good drivers can also earn 25% off with Geico DriveEasy, a usage-based insurance (UBI) program that rewards safe driving habits with discounts. However, rates can increase if you speed or drive more at night. So consider when and how you drive before signing up for DriveEasy or any other UBI discount.

Cheapest Auto Insurance for Teen Drivers: Erie

Teens historically pay the most for auto insurance. Geico offers the best rates nationally, but Erie is the cheapest regional insurer.

It offers the best auto insurance rates to 16-year-old drivers in states where coverage is available:

• Illinois
• Indiana
• Kentucky
• Maryland
• New York
• North Carolina
• Ohio
• Pennsylvania
• Tennessee
• Virginia
• Washington, D.C.
• West Virginia
• Wisconsin

On average, 16-year-old females pay $311 per month for coverage with Erie Insurance, while male drivers pay $366. Teen males pay more for insurance with all companies since they’re considered a higher risk. 

Compare these rates to quotes from the national companies listed below.

Geico and State Farm may offer better rates up front, but Erie provides cheaper rates when combined with the add-ons teen drivers benefit most from, including roadside assistance and rideshare auto insurance coverage. For example, Erie rideshare insurance rates start as low as $9 per month if you’re a teen delivery driver.

Erie roadside assistance is also only $5 annually per vehicle, providing free towing, tire changes, locksmith services, and more if you or your young driver get stranded on the side of the road. Learn more at our Erie auto insurance review.

Cheapest Auto Insurance for Teens and Parents

Adding a teen to an existing auto insurance policy will get you the cheapest car insurance rates for young drivers from any company. Teen drivers also qualify for more discounts when combined with other drivers, and their risk level greatly reduces by having a policy with older and more experienced drivers.

Erie raises annual rates by about $1,100 for a teen driver, which costs an extra $92 per month. Geico charges an extra $75 monthly to add a young driver, but rates increase if the added driver has accidents or speeding tickets. 

If you live in the 12 states listed above, it’s worth comparing auto insurance quotes from Erie and other local companies to see which is your cheapest insurance company. Whether you’re buying your own policy or adding a teen to existing coverage, Erie offers very competitive rates for new drivers.

Cheapest Auto Insurance for Seniors: Geico

Geico is the only national insurer offering annual auto insurance for older adults for under $1,000. State Farm is the second cheapest, but its annual rates climb to $1,010 after you turn 65.

Insurance rates for seniors average around $111 per month. However, with Geico, older drivers only pay $76 per month, a savings of nearly $400 per year.

Men still pay more than women, but that difference is much smaller — usually no more than a $20 monthly difference. State Farm is the only company whose rates remain the same for senior men and women, but Geico insurance rates are still the cheapest on average, regardless of gender.

Cheapest Auto Insurance for Military Members: USAA

Active and retired military members are eligible for discounts based on their service and certain association memberships. For example, USAA offers exclusive savings on auto insurance and other types of property coverage to U.S. military servicemen and women.

You must be active duty, a veteran, or an immediate family member to qualify for USAA auto insurance. Still, its rates are among the cheapest in the nation. If you are a military member, check out our USAA auto insurance review for more information.

USAA is cheaper than Geico and offers full coverage rates at half the national average cost. Eligible drivers can also sign up for USAA SafePilot and earn a bigger discount than with Geico — up to 30% for safe driving habits.

Unfortunately, just like Geico DriveEasy, SafePilot will raise your rates for speeding and distracted driving. It also increases rates after an accident or DUI, so it may not be the cheapest company for high-risk drivers, even as a military member.

Cheapest Auto Insurance for High-Risk Drivers: State Farm

State Farm and Geico are neck-and-neck when it comes to offering the cheapest auto insurance rates. However, State Farm offers the best rates to drivers with accidents, tickets, and DUIs. 

A closer comparison shows that State Farm won’t raise your rates nearly as high after a claim or traffic violation. For example, rates only go up by $10 after a speeding ticket, while Geico raises rates by $20 a month and Liberty Mutual by $40.

Let’s look at how State Farm compares to the competition after an accident or a DUI.

Cheapest Auto Insurance After an Accident

All insurance companies will raise your rates after an accident. You can expect a 32% increase after an at-fault accident, but State Farm’s is not nearly as high. You’ll save roughly $800 annually if you switch to State Farm with an accident on your record.

Unfortunately, State Farm doesn’t offer accident forgiveness, so you’ll see a slight rate hike if you get into an auto collision.

Drivers pay as little as $15 more per month after an accident with State Farm, and rates remain well below the national average at $107 per month. State Farm’s rates are also much cheaper than companies with accident forgiveness, like Liberty Mutual, which is already double the cost of State Farm with a clean record and triple with an accident. Check out our State Farm auto insurance review for more information.

Cheapest Auto Insurance After a DUI

Auto insurance after a DUI raises your insurance rates higher than any other traffic violation, except with State Farm. Rates only increase by about $30 per month after a DUI, while other companies nearly double your rates after the first offense. 

State Farm auto insurance rates remain cheaper than Geico and Progressive with a DUI. The company will also help you file SR-22 insurance if you need to reinstate your driver’s license and insurance coverage after a DUI charge.

Cheapest Auto Insurance With Poor Credit: Nationwide

Average monthly auto insurance quotes may be more expensive than Geico or State Farm, but Nationwide won’t punish drivers with poor credit scores with steep rate increases. It raises rates by less than 50% between poor and good credit scores, while other insurers hike rates by 70%-80%. 

 

Nationwide adds about $45 to your monthly bill if you have poor credit, still $60 less per month than the national average. Compared to Geico, which increases rates by 71%, or American Family raising rates by 83%, you can save a lot of money with Nationwide. If you have bad credit, check out our Nationwide car insurance review for more information.

Drivers with bad credit can also sign up for Nationwide SmartRide and save 10% by using UBI.

Unlike USAA SafePilot and Geico DriveEasy, SmartRide doesn’t increase rates for speeding, using your phone, or driving at night. Safe drivers with poor credit scores can save an average of 21% on their annual rates.

Cheapest Auto Insurance With Discounts: Geico

Geico has 16 car insurance discounts for drivers. Most automatically apply to your policy, but you may have to ask for others, such as military or federal employee discounts.

Some companies may offer more discounts than Geico. You’ll notice that Geico doesn’t offer popular ones like low-mileage or paid-in-full. However, it’s the cheapest auto insurance company with discounts because it offers lower rates than many other national insurers.

Geico offers uncommonly high discounts for anti-theft systems (23%), safe driving (22%), and new vehicles (15%). Active military members can also earn additional discounts for emergency deployment (25%). 

The only discount not listed above is the air bag discount, which saves drivers up to 23% annually by having driver-side and passenger-side air bags.

Cheapest Pay-Per-Mile Auto Insurance: Metromile

Metromile was one of the first companies to make pay-per-mile car insurance competitive, and it continues to offer the best rates to low-mileage drivers.

The company uses the Metromile Pulse, a wireless telematics device that connects to your vehicle and tracks your daily mileage. It doesn’t track driving habits or use them to determine your rates, but it provides a GPS tracking system when you can’t find your vehicle.

If Metromile is available in your state, you pay a monthly rate of $29 plus six cents per mile driven. This averages around $56 per month if you drive about 450 miles monthly. 

However, Metromile is only available in eight states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. Further, there are daily mile limits that vary by state. For example, New Jersey caps mileage at 150 miles per day, and California caps it at 250. Going over these limits can raise your rates.

Pay-per-mile coverage isn’t for everyone. Only drivers on the road less than 8,000 miles annually benefit from this insurance type. However, despite its limited availability, Metromile is the cheapest choice for drivers eligible for pay-per-mile coverage. Check out our Metromile auto insurance review for more information.

Cheapest Auto Insurance by State

Now that you know the cheapest car insurance companies, you can start comparing quotes where you live. Local insurance laws determine the minimum auto insurance required by state, which impacts the average auto insurance rates in each state listed below.

Your rates will vary based on age, gender, and driving record. For example, male drivers may pay a little more than what’s listed above and women a little less, so compare quotes from multiple companies to see which offers the best price.

It’s important to compare at least three auto insurance companies near you to determine what coverage is available and at what price. Your state insurance laws determine your minimum coverage, how much insurance companies can charge, and what kind of policies they can offer.

Certain insurance coverages offered by the above companies may be unavailable in your state. If unique coverage options such as UBI or pay-per-mile insurance decide where you shop, take advantage of our free comparison tool above to see what’s available with companies near you.

Cheapest Auto Insurance by City

Along with state insurance laws, insurance companies consider a city’s auto theft rate, traffic congestion, and average commute when determining your rates. These factors are completely out of your control but will raise your auto insurance if you live in a big city or commute into one for work. 

Using your ZIP code is the easiest way to find the cheapest and most accurate auto insurance quotes online. It allows you to narrow your search to get a clearer idea of which companies are available and how much they charge the average driver. 

If you have a company in mind, enter your ZIP code below to see what kind of coverage is available in your city. 

Cheapest Auto Insurance by Age

Nothing impacts your auto insurance rates more than your age. Teen drivers pay the highest rates regardless of their insurance company. Insurance prices start to drop after 25 but increase again after 70.

An 18-year-old driver pays hundreds more per month than a 40- or 50-year-old. However, State Farm and Geico each charge teens an average of $250 less per month than competitors.

Teen drivers are unique since they earn better rates when added to a parent’s or roommate’s existing policy and are eligible for good student and driver’s education discounts in most states. However, teens might require additional coverage, especially if they drive for work, which can drive up rates.

If you’re a young driver or are adding one to a policy, shop around and compare multiple quotes based on the coverage you need.

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Other Factors That Affect Auto Insurance Rates

You’ve seen how many factors affect your car insurance rates — insurance companies consider age and gender the biggest risk indicators, with teen males paying the most for coverage. The next largest risks are driving record, credit score, and ZIP code.

Here are a few other things to watch out for that can make you appear riskier to insurance companies:

• Vehicle make and model. Sports and luxury vehicles have higher average insurance quotes because they cost more to repair after a claim.
• Claims history. Even minor claims that don’t involve collisions can raise your rates by 20%-40%.
• Commute. More time on the road leads to an increased likelihood of an accident. Long work commutes cost you a low-mileage discount and raise your average rates.

Awareness of all the elements impacting your quotes can make shopping for auto insurance less stressful. Even if you don’t qualify for the lowest average rates, knowing what to expect gives you the tools to negotiate for the cheapest auto insurance in your unique situation.

How to Find Cheap Auto Insurance Companies Near You

If you’re looking for a cheap car insurance company, consider your driving record and how much coverage you need. There are quite a few other variables that impact how much an insurance company charges, but you can follow the tips below to reduce your average rates:

• Ask for different auto insurance with discounts. Geico offers the biggest discounts, but the list is limited. You may qualify for lower rates with other companies by asking for the four main discount types: driver safety discounts, vehicle safety discounts, policy discounts, and lifestyle discounts.
• Buy a more cost-effective vehicle. The cheapest cars to insure are the Ford F-150 and Honda CR-V, but other vehicles with high-safety ratings and advanced anti-theft systems will get you the lowest rates.
• Lower your coverage levels. Don’t carry full coverage insurance if you don’t need it. Buying liability-only insurance for an older vehicle you own will lower your average monthly rates.
• Comparing auto insurance quotes online. You’ll get the best rates on auto insurance if you compare at least three different companies. The more quotes you compare online, the more accurate your average will be when you buy your policy.

Generally, the cheapest auto insurance companies for full coverage are Geico and State Farm. However, drivers in some states will find better rates with regional companies like Erie and Farm Bureau Mutual.

State Farm offers cheap high-risk auto insurance depending on your driving and claims history, but teens will get lower quotes from Erie. Nationwide is less likely to raise your rates as high as some other insurers if you have poor credit.

However, auto insurance rates vary by driver, and some of these cheap insurance companies may not be available where you live. If you need affordable auto insurance today, use our free comparison tool below and get insurance quotes from the cheapest car insurance companies in your neighborhood.

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