The insurers with the lowest average costs among our Cheap Car Insurance Companies of 2023 rating offer inexpensive policies that may make sense for a broad range of motorists.
According to our analysis, the cheapest annual rates on average are offered by USAA, Geico, and State Farm. These companies consistently offer some of the cheapest annual rates on average, including policies to fit specific needs, such as for a teenager or for a driver with a blemish on their driving record like a speeding ticket or traffic accident.
Key Takeaways
USAA is No. 1 overall in our rating and has the cheapest average annual insurance rates in most of our categories. But coverage is only available to members of the military community.
Geico and State Farm, Nos. 2 and 3 in our rating, respectively, also have competitive rates in all our categories, including some of the cheapest rates for good drivers, senior drivers, and drivers with poor credit.
Cheapest Car Insurance Company for You
For Good Drivers: Geico
For Teen Drivers: State Farm and Geico
For Senior Drivers: State Farm
For Military Community: USAA
After a Speeding Ticket: State Farm
After an Accident: State Farm
After a DUI: State Farm
Poor Credit: Geico
Minimum Coverage: Geico
Full Coverage: State Farm
Low Mileage: Geico
What Is the Cheapest Car Insurance Company for You?
Insurance rates are highly individualized and based on a number of factors. A person’s age, the type of vehicle they drive, their credit and driving histories, and where they live, among other variables, go a long way toward determining what that particular person will pay for car insurance. In short, your premiums will differ from those in our rating, which are for comparison purposes only.
USAA car insurance
The least expensive insurance in our study of cheap car insurance companies is offered by USAA, which sells car insurance policies only to members of the U.S. military, pre-commissioned officers, veterans, and their spouses and children. In addition to having the lowest annual rates on average, USAA also has the cheapest rates for low- and high-mileage drivers and in most other categories included in our analysis of insurers.
Drivers without a connection to the U.S. military may find the cheapest car insurance is offered by Geico, which is rated No. 2 in our survey, or by State Farm, which is No. 3.
Geico car insurance
Excluding USAA, Geico has the cheapest car insurance coverage for motorists with clean driving records, as well as for those seeking minimum coverage and for higher-mileage drivers. The company also offers the cheapest average rates for male teenage drivers.
State Farm car insurance
State Farm offers the cheapest car insurance for senior drivers, female teenagers, and low-mileage drivers. State Farm also has the cheapest rates for drivers seeking full coverage. Motorists with a speeding violation, traffic accident, or DUI on their record also will find State Farm has the cheapest rates on average.
The rates in our analysis are based on information filed by car insurers with state regulators, which is available to the public. Insurance rates from most of the largest national insurers are included.
When it comes to what Americans believe about how car insurance rates are determined, there are many commonly held misconceptions. For instance, more than half of drivers surveyed did not realize credit history can impact the premiums one pays for auto coverage. Our Driving Habits Survey found out what U.S. drivers think about car insurance rates, along with other factors that influence their driving habits.
Cheap Car Insurance for Good Drivers: Geico
A clean driving record is likely to earn motorists their biggest savings, compared to the national average, when they choose Geico — unless they are eligible for USAA membership, which requires a connection to the military.
Cheapest for Good Drivers
Geico
$1,250
National average rate for year-long policy
$297
Savings compared to national average
Geico’s average annual rate for good drivers is $1,250, $297 less than the national average, a savings of just over 19%, according to our data.
No matter which insurance company you choose, your driving record is a major determining factor in how much you’ll pay for car insurance. Traffic violations, such as speeding tickets, and accidents can have a significantly negative impact on insurance rates.
On the other hand, a clean driving record can result not only in lower rates, but in some cases, the opportunity to earn a discount on your premium.
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Cheap Car Insurance for Teen Drivers: Geico and State Farm
When it comes to insuring teen drivers – the most expensive demographic on average to insure – Geico and State Farm have the cheapest sample rates, according to our data. Geico’s rates for 17-year-old male drivers are among the lowest in our analysis, while State Farm offers the cheapest car insurance rates on average for 17-year-old female drivers. For members of the military community, USAA has the lowest rates for both male and female teens.
Geico’s $3,742 average annual rate for teenage male drivers is the lowest, according to our data. That’s $2,008 less than the national average, an almost 35% savings. The company’s rate for female teenage drivers, $3,478, is $1,586 cheaper than the average national rate.
State Farm offers the lowest rate for female teen drivers among the companies we researched at $3,280 — $1,784 below the national average, a 35% savings. The company offers cheap car insurance for male teen drivers as well, with an annual rate of $4,019, or a difference of $1,731 from the national average.
Cheapest for Female Teen Drivers
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$3,280
17-year-old female drivers
$1,784
Savings compared to national average
Cheapest for Male Teen Drivers
Geico
$3,742
17-year-old male drivers
$2,008
Savings compared to national average
American Family Insurance is another option for cheap car insurance for teen drivers, with average annual rates of $3,550 and $3,769 for female and male teen drivers, respectively, both well below the national averages.
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Cheap Car Insurance for Senior Drivers: State Farm
Senior drivers enjoy some of the cheapest car insurance rates among groups included in our analysis. For drivers ineligible for USAA membership, State Farm offers the lowest annual average rates for seniors, based on our data.
State Farm’s sample annual rate for both married 60-year-old male and female drivers is $1,134. That’s $198 less than the national average for females and $242 less than the national average for males.
Cheapest for Female Senior Drivers
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$1,134
60-year-old female drivers
$198
Savings compared to national average
Cheapest for Male Senior Drivers
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$1,134
60-year-old male drivers
$242
Savings compared to national average
Annual Rates for Senior Female Drivers
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Annual Rates for Senior Male Drivers
Company
Annual Rate
Savings*
USAA
$876
$500
State Farm
$1,134
$242
Geico
$1,202
$174
Travelers
$1,211
$165
American Family
$1,217
$159
National Average
$1,376
–
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Cheap Car Insurance for the Military Community
Current and former military members have multiple options for car insurance discounts based on their service. A number of insurers offer discounts to active-duty military members and veterans.
One company in our study, USAA, provides its car insurance products exclusively to the U.S. military community and also offers some of the lowest rates among the companies we studied across a number of categories.
USAA offers the cheapest rates in our analysis to motorists with clean driving records, almost 34% below the national average. It’s also the cheapest option, according to our data, for those with a single speeding violation or an accident on their record. The company also offers the cheapest car insurance for drivers seeking minimum coverage.
Cheapest for Military Community
USAA
$1,022
National Average for Military Community
$525
Savings compared to national average
Those eligible for USAA membership — military members, pre-commissioned officers, veterans, and their spouses and children — might want to explore USAA’s offerings when looking for a cheap car insurance policy.
Cheap Car Insurance After a Speeding Ticket: State Farm
A speeding violation’s impact on car insurance rates can be felt by a policyholder for years, making it important to weigh one’s options when considering coverage in the aftermath of a ticket.
Cheapest After a Speeding Ticket
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$1,413
National average rate after a speeding ticket
$522
Savings compared to national average
Among the insurance companies in our Cheap Car Insurance Companies of 2023 rating, State Farm offers the lowest annual rates to drivers with a single speeding violation, with the exception of USAA’s offerings, which are exclusive to the military community.
State Farm’s sample rate of $1,413 is $134 higher than its average annual premium for drivers with a clean driving record, according to our data — roughly a 10% increase. The company’s rates for a driver with a single speeding violation are $522 less than the national average rate.
It’s typical for insurers to raise rates after a speeding violation, but some increases are easier to absorb than others. Shopping around can help you find the cheapest premiums.
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Cheap Car Insurance After an Accident: State Farm
Cheapest for After an Accident
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$1,522
National average rate after an accident
$690
Savings compared to national average
Those with an accident on their driving record might want to explore State Farm’s offerings as they search for the least expensive car insurance policy. The company has the lowest average annual rates for drivers with a single accident on their record, according to our data. Only USAA has lower rates for drivers after an accident.
State Farm’s average annual rate for drivers with a single accident is $1,522. That’s a savings of $690 compared to the national average rate among companies we studied.
State Farm’s rate for drivers with a single traffic accident is $243 more than its rate for motorists with clean driving records.
Annual Rates for Drivers After an Accident
Company
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Read more about how car insurance is impacted by an accident.
Cheap Car Insurance After a DUI: State Farm
Drivers can expect a significant increase in car insurance rates after a DUI. The national average annual rate for a driver with one DUI is $2,675, compared to $1,547 for a driver with a clean record, an increase of 73% in the amount paid for car insurance.
Cheapest After a DUI
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$1,717
National average rate after a DUI
$958
Savings compared to national average
State Farm, however, offers the lowest rates in our analysis for drivers after a DUI — lower even than USAA, a rarity. In most categories we studied, USAA offers its military-connected members the cheapest prices available.
State Farm’s average annual rate for a driver with a DUI is $1,717, a savings of $958, or almost 36%, compared to the national average rate.
The company’s rate for drivers with a DUI is $438 higher than its rate for those with clean driving records.
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Cheap Car Insurance With Poor Credit: Geico
Your credit-based insurance score is just another factor – along with the type of car you drive and your claims history – that can affect the price you pay for auto insurance. This score, which is based on factors including credit history, payment history, and outstanding debt, can predict how likely a person is to file an insurance claim, according to the Insurance Information Institute. (Note, this practice is illegal or limited in Massachusetts, California, Hawaii, Michigan, Maryland, Oregon, and Utah. Washington also implemented a limitation in March 2022 that will be in effect for three years.)
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Geico offers the cheapest average annual rate for most drivers with poor credit histories, according to our data. Among the companies we studied, USAA’s rates were lower, but USAA’s car insurance products are only available to members of the military community.
Cheapest for Poor Credit
Geico
$1,975
National average rate with poor credit
$919
Savings compared to national average
With an average rate of $1,975, Geico has the lowest rates among insurers other than USAA for drivers with poor credit histories. Its rates are almost 32% below the national average for poor-credit drivers.
A driver’s credit history can have a substantial impact on the cost of car insurance. The national average for drivers with poor credit is 87% higher than for drivers with good credit.
The Cheapest Auto Insurance in Your State
Our data indicates that the national average annual rate for car insurance is $1,547, based on information from 10 of the nation’s largest car insurance companies. Of the 10 insurers included in our analysis, seven of them have average annual rates below the national average: USAA, Geico, State Farm, Travelers, American Family, Nationwide and Progressive. Only AAA, Farmers, and Allstate have rates higher than the overall national average.
It’s worth noting that regardless of the coverage you go with, car insurance rates are determined by a number of factors, and the amount one pays for insurance is likely to differ from the rates in our study. The rates presented here are for comparative purposes only.
To find the cheapest car insurers in each state, we analyzed car insurance rates for drivers across the country. The rates provided here are simple averages taken from representative driver profiles, so the amount you pay for car insurance will differ. It’s important to note that our data may not include all the states each company operates in and that insurance premiums can vary by state. Even within the same state, rates can vary between ZIP codes.
State
Cheapest Company
Alabama
Progressive
Alaska
USAA
Arizona
Root
Arkansas
USAA
California
Wawanesa General Ins Co
Colorado
Geico
Connecticut
Geico
Delaware
State Farm
District Of Columbia
Geico
Florida
State Farm
Georgia
Auto-Owners
Hawaii
Geico
Idaho
State Farm
Illinois
Country Ins & Fin Serv Grp
Indiana
USAA
Iowa
State Farm
Expand List
Cheap Car Insurance for Minimum Coverage: Geico
Many drivers looking for the least amount of coverage available – typically, a policy that meets their state’s mandatory minimum amount of liability insurance – will find that Geico offers the cheapest car insurance available. Among the insurers in our analysis, the company has the least expensive average rates for drivers seeking lower levels of coverage. Only USAA, which offers car insurance exclusively to the military community, offers lower rates.
Cheapest for Minimum Coverage
Geico
$1,134
National average rate for minimum coverage
$336
Savings compared to national average
At $1,134, Geico’s average annual rate for a low-coverage policy is $336 cheaper than the national average rate, a savings of almost 22%.
State Farm also offers a cheap average rate for lower levels of coverage at $1,195, according to our data. USAA members enjoy the lowest rate in our study at $963.
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Cheap Car Insurance for Full Coverage: State Farm
Cheapest for Full Coverage
Geico
$1,373
National average rate for full coverage
$270
Savings compared to national average
Motorists may want or need full coverage – which typically includes collision, comprehensive, and liability insurance – particularly if they have financed or leased a new car. Higher levels of coverage are pricier than simply meeting state minimums for car insurance, but several insurers in our study offer high-coverage rates below the national average.
Motorists may want or need full coverage – which typically includes collision, comprehensive, and liability insurance – particularly if they have financed or leased a new car. Higher levels of coverage are pricier than simply meeting state minimums for car insurance, but several insurers in our study offer high-coverage rates below the national average.
State Farm has the cheapest high-coverage policy, according to our data, excluding rates offered by USAA exclusively to the military community. State Farm’s average annual rate for a high-coverage policy is $1,373, a savings of 16%, or $270, compared to the average of the companies we studied.
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Some will find the rate difference between State Farm and Geico in this instance negligible. Geico’s average rate for a high level of coverage is $1,374, a gap of only $1.
USAA’s offerings to those with connections to the military are the cheapest for high coverage levels in our study. USAA members can see an average rate for a high-coverage policy of $1,084, 34% lower than the national average.
How To Get the Cheapest Car Insurance Quotes
We’ve done the heavy lifting to find out which major car insurance companies are likely to have the best rates for you, but you won’t know exactly how much you’ll pay until you start getting quotes.
Insurance companies base rates, in part, on data that shows older drivers and married drivers make fewer claims. You shouldn’t get married just to save on insurance and you can’t change your age. However, you can consider these steps to save on car insurance and get the cheapest rate possible:
Shop Around
Comparing quotes from multiple companies is the first step toward getting cheap car insurance. Be sure to ask each insurer about how to adjust your level of coverage to fit your current needs.
Ask for Discounts
Nearly every insurance provider has discounts available for its customers. These can include lower rates for customer loyalty, maintaining a clean driving record and good students.
Switch to Pay-Per-Mile Insurance
This type of coverage replaces your traditional car insurance policy, and the main difference is that you pay for auto insurance by the mile. If you put only a few miles on your car every year, the savings can be worth making the switch.
Improve Your Driving Record
Insurance companies reward safe drivers with clean records by giving them lower rates. This is because good drivers are less likely to file a claim.
Improve Credit Rating
In most states, drivers with poor credit scores are penalized with higher insurance rates. Maintain a good credit score, or take steps to improve your credit, and you’ll likely secure a better rate.
Understand State Requirements
Nearly every state has auto insurance requirements that determine the minimum amount of coverage a driver must carry. Factoring in your state auto insurance requirements, alongside your personal assets and finances, can help you decide how much coverage you need or if you’ve purchased too much coverage.
Increase Your Deductible
Premiums are determined in part by the deductible you choose, which is the amount that you agree to pay if you need to file a claim. Opting for a higher deductible is one way that you can lower your insurance costs.
Look for Local Insurers
It’s possible that a large insurer might not be the best or cheapest match for your coverage needs. Check with smaller insurers or with a local agent to see if you can find a lower rate.
Bundle Your Insurance
Most companies offer car insurance discounts if you buy two or more policies. This could include purchasing a renters or homeowners policy with the same company. Some insurers also offer multi-car discounts for those who insure multiple vehicles together.
Review Coverage Annually
Take a look at your policy when it’s time to renew. Adjust your coverage, such as your deductible or the number of miles that you drive, to fit your current needs.
Pay Premiums Annually
Most insurance companies will allow you to pay for coverage monthly, biannually, or annually. However, paying your premiums annually will almost always save you money.
Decrease Your Limits
Limits refer to the amount of money your insurer will pay after a claim. Higher limits can decrease your out-of-pocket expenses after a claim. They can also drive up your annual premium. Review your personal finances and determine if lowering your limits is worth the lower rates.
Frequently Asked Questions
Who has the cheapest car insurance?
The cheapest car insurance rates in our study are offered by USAA. The company’s car insurance products are available exclusively to its members, which are composed of U.S. military personnel, pre-commissioned officers, veterans, and their spouses and children.
For drivers not eligible to join USAA, Geico and State Farm have the lowest rates among the companies we studied.
Who has the best car insurance?
Based on our car insurance survey and rates study, USAA offers the best car insurance. Their rates are generally the lowest among the insurers we analyzed, and they generally received high scores in our customer feedback survey.
USAA is only available to members of the military community, so if you don’t fall into that category, you may want to consider State Farm and Geico.
What is the cheapest car insurance policy?
For most drivers, the cheapest car insurance policy is a minimum-coverage policy that meets their state’s auto insurance requirements. Some people, particularly those who don’t drive frequently, may find that a pay-per-mile plan is cheaper than a traditional minimum-coverage policy.
How can I get cheaper car insurance?
According to the Insurance Information Institute (III), one of the best ways to save money on car insurance is to get quotes from at least three companies, as different insurers may have different premiums for the same level and types of coverage.
Another way to save money is to bundle your car insurance policy with another policy from the same company. For example, if you purchase both your homeowners or renters insurance and car insurance from the same company, most will provide some sort of bundling discount. More information on the benefits of bundling home and car insurance policies can be found in our rating of The Best Home and Auto Insurance Bundles.
Having a clean driving record can also get you better rates. If you look at the rates for our Cheap Car Insurance After an Accident or Cheap Car Insurance After a Speeding Ticket sections, most companies in our rating have higher rates after those events than before. If you maintain a good credit rating, you can also generally get a better premium than if you have poor credit.
How do I get car insurance as a new driver?
Whether you’re a new driver or a seasoned motorist, the basic process of shopping for insurance is the same:
Determine your coverage needs. Do you have a brand new car that has been financed or leased? If so, your lender may require full coverage. If you own outright a 10-year-old car, you may only need the state-mandated amount of minimal liability coverage. Or you may need something in between.
Get quotes from at least three different companies. You can do this yourself by checking company websites, calling a company representative, or working with a local agent.
Apply for a policy. Depending on the insurer, you may be able to apply for and purchase a policy online within minutes; other companies require that you work with a local agent.
Pay for your policy. It’s often cheaper to pay your entire premium up front, but your insurance company may also offer the option of paying monthly, bi-monthly, quarterly, or semi-annually. If your car is leased or financed, be sure to let your financing company know who you’re insured with.
Learn more about finding the cheapest car insurance for teens.
How can I find the cheapest car insurance quotes?
To get the cheapest car insurance quotes, make sure you’re not buying more car insurance than you actually need. You can use our guide to figure out the right coverage amount for you. Then, cast a wide net. The more quotes you get, the more likely you are to find the cheapest car insurance policy.
What’s the cheapest car insurance for members of the military?
Those eligible for USAA membership can find some of the lowest annual rates on average, including for teen and senior drivers. The company’s average annual rate for good drivers is $1,022, the lowest among the companies in our analysis and $526 less than the national average, a savings of 34%.
USAA membership, and access to its car insurance products, is available to members of the U.S. military community.
Is it a good idea to get the cheapest car insurance?
If you’re on a budget, it’s tempting to get the cheapest car insurance you can. However, it is not usually a good idea to go with the cheapest quote. A basic policy might not include the full types of coverage you need to protect your assets, or the company’s customer service may be lacking.
What’s the cheapest type of car insurance?
The cheapest type of car insurance is usually a basic policy that meets the minimum insurance requirements in your state. However, maintaining a clean driving record is key to finding the lowest rates.
What car insurance discounts can I get?
Multi-policy or bundling discount: If you have more than one policy with the same company, like combining your car insurance policy with a homeowners or renters policy, you will likely get a break on your insurance premium. Insuring two or more vehicles on the same policy may also get you a discount.
Safe driver discount: If you have and maintain a clean driving record or complete an offered driving skills program through your insurance provider, you’ll likely qualify for safe driver discounts.
Driver status discount: Some insurance providers also offer savings for various demographic groups, including age (e.g., senior discount), education enrollment, and profession (e.g., teachers and military affiliations).
Vehicle equipment discount: If your car has certain safety features, such as a theft prevention system, you may qualify for additional insurance breaks. Some insurers offer a similar discount for new or late-model cars.
Methodology – How We Collected Our Car Insurance Rates
Any car insurance policy purchased is individualized to fit the person behind the wheel. Your age, where you live, your driving record, your credit history, and a host of other variables are weighed by insurers as they consider extending you coverage, and what that coverage will cost. The car insurance rates different drivers pay are as varied as their driving profiles.
So, how did we arrive at these numbers for comparison? U.S. News and World Report worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from most of the largest national car insurance companies. (Not every car insurance company operates in every state.) The information obtained by Quadrant is publicly available rate data that car insurers file with state regulators and should not be interpreted as binding quotes.
The rates for our study are based on profiles for male and female drivers who are 17, 25, 35, and 60 years old. The vehicles used include the 2017 and 2022 Honda Civic, the 2017 and 2022 Toyota RAV4, and the 2017 and 2022 Ford F-150, with mileages of 6,000 and 12,000 annually. Coverage levels of low, medium, and high were used, as were credit tiers of poor, fair, and good. Clean driving records, as well as records with one accident, records with one speeding violation, and records with one DUI, were also used in the calculations for certain driver archetypes.
To get the rates used in our study, we computed the mean rate for male and female drivers 17, 25, 35, and 60 years old who drive 12,000 miles per year, have medium coverage, good credit, and a clean driving record.
The rates in our study should not be considered “average” rates available by individual insurers. They are for comparative purposes only. Because car insurance rates are based on so many individual factors — age, location, driving record, type of vehicle, etc. — your car insurance rates will likely differ from those shown here.
Please note that the information provided on this website is for general informational purposes only and does not, and is not intended to, constitute legal advice.
U.S. News takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.
How Do Those Car Insurance Tracking Devices Work?
Kristen Hall-Geisler and Jennifer Lobb
U.S. News 360 Reviews takes an unbiased approach to our recommendations. When you use our links to buy products, we may earn a commission but that in no way affects our editorial independence.
