Who Typically Has The Cheapest Car Insurance?

Finding cheapest car insurance is becoming more challenging in 2024, but there are still options for budget car drivers. 

According to our research, Geico offers the lowest rate at $38 per month for minimum coverage. To get the best rates, it’s important to shop around, get multiple quotes, and consider local providers as well as different coverage options like usage-based insurance.

The top 10 cheapest car insurance companies include Nationwide, Geico, State Farm, Travelers, Progressive, AAA, Allstate, Chubb, Farmers, and USAA. 

These companies are known for offering competitive rates along with quality coverage and service.

Despite a 38.7% increase in the consumer price index (CPI) for motor vehicle insurance from early 2020 to early 2024, you can still find affordable insurance by comparing quotes from multiple providers.

Our guide highlights the most cost-effective insurance companies that still provide excellent coverage and customer service.

Use this information to confidently compare quotes and find the best insurance for you and your car (vehicle).

Who Has the Best Car Insurance Rates?

The best car insurance rates in the USA can vary depending on individual circumstances such as driving history, age, and location.

However, some of the top car insurance providers in the USA are:

1. Nationwide – Nationwide has cheapest car insurance rates and full coverage
2. State Farm : Known for its range of coverage options and discounts.
3. Progressive : Offers competitive rates and a variety of coverage options.
4. GEICO : Well-regarded for its affordability and customer satisfaction.
5. USAA : Provides competitive rates and high customer satisfaction, but is limited to veterans, military members, and their families.
6. Liberty Mutual : Offers an online experience and user-friendly resources.

To determine the best car insurance rates for you, it is recommended to compare quotes from multiple providers, considering factors like coverage options, discounts, customer service, and financial strength. Additionally, factors like your driving history, age, and location will influence the rates you are offered. 

It is advisable to gather information on your personal details, decide on the coverage you need, and compare quotes from different companies to find the best deal of your needs.

Cheapest Car Insurance Rates in USA

The cheapest car insurance rates in the USA vary by age, state, and insurance company:

Top 10 cheapest car insurance companies in the USA

The top 10 cheapest car insurance companies in the USA vary depending on several factors such as location, driving history, and coverage options. 

However, here are some of the cheapest car insurance companies in the USA:

1. USAA:

With an average monthly premium of $114 for good drivers, USAA is one of the cheapest options available. However, it’s only available to members of the military, veterans, and their families.

2. Nationwide:

Nationwide offers an average monthly premium of $117 for good drivers. It’s known for its wide range of coverage options and discounts.

3. Progressive:

Progressive has an average monthly premium of $192 for drivers with a moving violation on their record. It’s known for its usage-based insurance program, Snapshot, which can help safe drivers save money.

4. Geico:

Geico is known for its low rates, with an average monthly premium of $130 for good drivers. It’s also known for its 24/7 customer service and online policy management.

5. Erie:

Erie Insurance is a regional insurer that offers low rates, with an average monthly premium of $130 for good drivers. It’s known for its excellent customer service and wide range of coverage options.

6. Auto-Owners:

Auto-Owners is a mutual insurance company that offers low rates, with an average monthly premium of $136 for full coverage. It’s known for its excellent customer service and wide range of coverage options.

7. State Farm:

State Farm is one of the largest insurance companies in the USA, offering an average monthly premium of $145 for good drivers. It’s known for its wide range of coverage options and discounts.

8. Travelers:

Travelers offers an average monthly premium of $150 for good drivers. It’s known for its wide range of coverage options and discounts, including a multi-car discount.

9. Liberty Mutual:

Liberty Mutual offers an average monthly premium of $155 for good drivers. It’s known for its wide range of coverage options and discounts, including a multi-car discount.

10. Farmers:

Farmers Insurance offers an average monthly premium of $160 for good drivers. It’s known for its wide range of coverage options and discounts, including a multi-car discount.

Please note that these rates are estimates and can vary significantly depending on your individual circumstances, including your location, driving history, and coverage options. 

It’s always a good idea to shop around and compare quotes from multiple insurance companies to find the best rate for your needs.

Cheapest Large Insurance Companies in USA

These companies are known for their competitive rates and comprehensive coverage options, making them popular choices for drivers seeking affordable car insurance in the USA. 

Cheapest Midsize Car Insurance Companies in the USA

These midsize insurance companies offer affordable options for drivers to save on car insurance. 

However, it’s important to get quotes from several companies to find the best rate for your needs, as prices can vary a lot.

Cheapest Car Insurance Coverage In USA

Below, we list the cheapest average car insurance rates for both minimum and full coverage.

Cheapest Liability Car Insurance

Note: These prices are for a 2022 Toyota Camry driven by a 35-year-old with a good driving record. USAA insurance is for military members, veterans, and their families.

Cheapest Full Coverage Car Insurance

Note: These prices are for a 2022 Toyota Camry driven by a 35-year-old with a good driving record. USAA insurance is for military members, veterans, and their families.

Cheapest Car Insurance for Young Drivers In USA

Geico offers the most affordable car insurance for many young drivers. However, it’s important to note that Geico may not be available everywhere, and you might find even cheaper coverage with other insurers. 

Continue reading to discover the cheapest auto insurance rates for teenagers and the best deals for young adults.

Note: Rate estimates are based on 2022 data. USAA car insurance is limited to active-duty military members, veterans, and their families.

Cheapest Car Insurance for Seniors In USA

In general, Geico provides the most affordable car insurance for senior drivers. However, if you’re a member of the military or part of a military family, USAA might offer cheaper rates. 

Below, we’ve outlined the least expensive car insurance options for older drivers aged 65 and 75.

Note: Costs were taken from 2022 information. USAA car insurance is limited to active-duty military members, veterans, and their families.

Cheapest Car Insurance for High-Risk Drivers In USA

In general, State Farm offers the most affordable car insurance for drivers considered high-risk, including those with a DUI, accident history, bad credit, or speeding ticket, among major insurance companies. 

Below, we’ll detail the cheapest rates for different high-risk driver profiles to assist you in finding the best-priced policy for your needs.

Note: USAA car insurance is limited to active-duty military members, veterans, and their families.

Cheapest Car Insurance By State In USA

Depending on where you live, the cheapest car insurance rates and the companies offering them can vary significantly. 

To assist you in finding the most affordable coverage, we’ll highlight the insurers with the lowest car insurance rates in each state for both minimum and full coverage.

Average Car Insurance Rates by State

The estimated cheapest auto insurance rates we’ve identified in each state are often much more economical than the average rates for that state. 

As auto insurance costs have risen over the past year, finding the provider offering the best deal can lead to even greater savings. 

The map below illustrates the changes in average minimum and full coverage rates from 2023 to 2024, as well as the average rates for each state in both years.

Cheapest Minimum-Liability Insurance & Full Coverage Insurance by State

Note: The rate estimates are based on a 2022 Toyota Camry driven by a single 35-year-old with a good credit history and clean driving record. 

USAA rates are not provided due to coverage availability limited to military members and their families.

✅ Does AAA Offer Gap Insurance? Apply Now

✅ Does AAA Cover Rental Car Insurance?

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Top Affordable Car Insurance Companies in the USA

When selecting the most affordable car insurance, it’s crucial to consider not only the price but also the coverage, customer service, and financial stability of the provider. 

Comparing quotes from multiple insurers is advisable to find the best policy that suits your specific needs and budget.

1. USAA: Known for offering the most affordable car insurance for military families, USAA provides an average monthly rate of $141 for a policy including a driver aged 16-21 with full coverage. For single drivers, USAA offers rates as low as $87 per month.

2. Geico: Widely recognized as one of the most affordable car insurance companies available nationwide, Geico offers an average minimum coverage rate of $38 per month. For good drivers, Geico provides competitive rates averaging $155 per month.

3. Nationwide: Ranked as the overall cheapest car insurance company, Nationwide offers an average full coverage rate of $119 per month. It provides budget-friendly rates across various driver profiles.

4. Erie: Consistently noted for its affordability, especially for young drivers, Erie boasts an average minimum coverage rate of $31 per month.

5. Progressive: Known for its extremely low rates for good drivers participating in its Snapshot usage-based insurance program, Progressive offers an average monthly rate of just $70.

6. Auto-Owners: With the lowest average minimum coverage premium and being one of the most affordable overall, Auto-Owners boasts an average rate of $27 per month. However, it operates in only 26 states.

7. Travelers: Another national contender for affordable car insurance, Travelers competes alongside Nationwide and Geico for offering competitive rates.

How To Get Cheap Car Insurance?

If you’re looking for affordable car insurance in the USA, here are some options to consider:

1. Auto-Owners: Known for offering the most budget-friendly car insurance overall, with an average monthly rate of $27 for basic coverage.
2. MAPFRE: Provides an average monthly rate of $28 for minimum coverage, making it another economical choice.
3. USAA: Particularly advantageous for military families, offering an average monthly rate of $141 for comprehensive coverage, including young drivers.
4. Erie: Offers reasonable rates, especially for young drivers, with an average monthly rate of $31 for basic coverage.
5. GEICO: Known for its competitive pricing, with an average monthly rate of $34 for minimum coverage.
6. Progressive: Offers very affordable car insurance for safe drivers participating in its Snapshot usage-based insurance program, averaging just $70 per month.
7. Nationwide: One of the most cost-effective car insurance providers nationwide, alongside Travelers and GEICO.
8. State Farm: Ranked as one of the cheapest car insurance companies in the U.S., according to NerdWallet’s analysis of minimum coverage rates for safe drivers.
9. American National: Stands out among midsize companies, offering auto insurance at an average rate of $27 per month.

While selecting the cheapest car insurance might seem appealing, it’s important to carefully assess your coverage requirements.

Opting for only minimum coverage might leave you financially vulnerable in case of accidents, while skipping comprehensive coverage could mean covering your own vehicle expenses out of pocket.

What are the Ways To Save Money on Car Insurance In USA?

To save money on car insurance in the USA, here are some effective strategies:

a) Compare Prices from Different Companies

One of the easiest ways to save money is to compare quotes from various insurers. Each insurance company calculates rates differently, so it’s essential to shop around to find the best deal.

b) Look for Discounts

Check for discounts you qualify for, such as:

• Low mileage discount for driving fewer miles annually.
• Multi-policy discount for bundling car insurance with other types of coverage.
• Good student discount for maintaining good grades.
• Defensive driving course discount for completing an approved course.

c) Opt for a Higher Deductible

Consider raising your deductible to lower your premiums. However, ensure you can afford the increased out-of-pocket costs if you need to make a claim.

d) Choose Your Vehicle Wisely

The type of car you drive affects insurance costs. Insurers consider factors like the car’s claims history and repair costs.

e) Pay in Full

Some insurers offer discounts for paying your premium upfront instead of in installments.

f) Maintain a Clean Driving Record

Keeping a clean driving record without accidents or traffic violations can lead to lower rates. Insurers often reward safe driving habits with discounts.

By implementing these strategies and comparing quotes from different insurers, you can find affordable car insurance that suits your needs. The key is to explore all available options and take advantage of potential discounts.

How To Lower Your Car Insurance Rate In USA?

Lowering your car insurance rate doesn’t always require switching companies. Here are some ways to reduce your car insurance costs with your current provider:

1. Use Usage-Based Programs

These programs monitor your driving habits through an app or device and can offer discounts of up to 40% for safe driving. They typically don’t increase premiums for bad driving.

2. Pay Annually or Biannually

Most insurers offer options to pay annually, biannually, or monthly. Paying annually or biannually may qualify you for discounts.

3. Review Your Coverage Regularly

Before renewing your policy, review it to see if you can adjust coverage to better suit your needs. You can also compare quotes to ensure you’re getting a competitive rate.

4. Take Advantage of Life Changes

Events like getting married, sending a student to college, or buying a home can affect your rates, so be sure to update your insurer.

5. Improve Your Driving Record

Safe drivers with clean records often qualify for lower rates. Consider taking a driver safety course to improve your profile.

6. Boost Your Credit Score

Since many states use credit scores to determine rates, improving your credit score over time can lead to lower premiums.

7. Drive a Less Expensive Vehicle

Some vehicles are cheaper to insure than others, so consider insurance costs when shopping for a car.

8. Raise Your Deductible

Increasing your deductible can lower your premiums, but make sure you can cover the higher out-of-pocket costs if you need to file a claim.

9. Adjust Your Coverage

While it involves more risk, opting for less coverage can save you money. Review your driving habits, state requirements, and finances before downgrading your coverage.

By implementing these strategies, you can potentially lower your car insurance expenses without switching providers.

Why is Car Insurance So Expensive In USA?

Many Americans have noticed their car insurance premiums increasing in recent years, often by significant amounts. Insurers determine insurance rates based on the likelihood of having to pay out claims on policies.

Several factors have led to the recent rise in auto insurance rates. Below, we delve into three of these factors:

1. Increased Risk Factors: 

Over time, certain risk factors have been on the rise, prompting insurers to raise premiums. 

These factors include more accidents, thefts, and severe weather events that result in higher claim payouts.

2. Rising Repair Costs: 

The cost of repairing vehicles has increased, mainly due to advancements in automotive technology. 

Features like sensors and cameras can make repairs more expensive, leading insurers to adjust their rates accordingly.

3. Growing Legal Costs: 

Legal expenses associated with settling claims have also risen. This includes expenses related to lawsuits, court fees, and settlements. 

As these costs go up, insurers may pass some of the burden onto policyholders through higher premiums.

By understanding these factors contributing to the cost of car insurance, consumers can better grasp why rates have been increasing in recent years.

Risks Of Getting Cheap Car Insurance In USA

Cheap car insurance can be tempting, but it often comes with risks that you should consider. 

Below are some of the drawbacks you may encounter with less expensive insurance policies:

It’s essential to weigh these risks against the potential savings when considering cheap car insurance options. 

Make sure you understand the coverage limitations and potential drawbacks before choosing a policy.

FAQ – Cheapest Car Insurance

1.Who typically has the cheapest car insurance?

    Drivers with a clean record and good credit scores often get the cheapest rates.

2. Who has the cheapest car insurance for full coverage?

   Geico frequently offers competitive rates for full coverage, but it’s wise to compare quotes from various insurers.

3. Who has the cheapest car insurance for minimum coverage?

   State Farm, Geico, and Travelers are often cited for offering affordable rates for minimum coverage.

4. Who has the cheapest car insurance for teens?

    Companies like Geico and State Farm are known for providing competitive rates for teen drivers, though individual factors can influence rates.

5. Who has the cheapest car insurance for young adults?

  Young adults may find affordable rates with companies such as Geico, State Farm, and Progressive.

6. Who has the cheapest car insurance for seniors?

   State Farm, Geico, and Nationwide are recognized for offering affordable rates for seniors.

7. Who has the cheapest car insurance for high-risk drivers?

   While State Farm and Travelers are often cited, it’s advisable to shop around for competitive rates.

8. Who has the cheapest car insurance for military members?

   USAA often provides the cheapest rates for military members and their families.

9. What is the cheapest plan for car insurance?

   The cheapest plan varies based on factors like driving history, location, and coverage needs.

10. Will my credit score be affected just by getting car insurance quotes?

    No, car insurance quotes typically use soft inquiries, which do not impact credit scores.

11. What factors go into lowering the cost of car insurance?

Factors like a clean driving record, good credit score, vehicle safety features, and bundling policies can lower car insurance costs.

12. What are the benefits and risks of having cheap car insurance?

Cheap car insurance may offer savings but could mean less coverage or weaker customer service, so it’s essential to weigh benefits against risks.

13. What is the best type of coverage?

The best type of coverage depends on individual needs, but comprehensive and collision coverage offers broad protection.

14. What types of damage does car insurance cover?

Car insurance can cover damage from accidents, theft, vandalism, weather, and other unforeseen events, depending on the policy.

15. How soon after buying a car do I need auto insurance?

Auto insurance is typically required immediately after buying a car, so it’s crucial to have coverage in place before driving.

16. Does my car insurance stay with me if I’m driving a different car?

Your car insurance may cover you when driving a different car, but coverage can vary based on the policy and circumstances.

You Know How We Rated The Best Cheap Car Insurance Companies?

To ensure we deliver reliable information to consumers, we developed a comprehensive rating system to assess and rank the best car insurance companies based on various factors. 

Our evaluation involved gathering data on numerous auto insurance providers and grading them across multiple criteria to determine an overall rating for each company. 

The top-ranked insurers are those that garnered the most points in our assessment.

Key factors considered in our ratings include:

1. Cost

We examined auto insurance rate estimates provided by Quadrant Information Services and evaluated discount opportunities offered by each company.

2. Coverage

We favored companies offering a diverse range of coverage options to cater to different consumer needs.

3. Reputation and experience

Our research team assessed market share, ratings from industry experts, and the number of years each company has been in business.

4. Availability

Companies with broader state availability and minimal eligibility requirements received higher scores in this category.

5. Customer experience

We considered the volume of complaints reported by the NAIC, customer satisfaction ratings from J.D. Power, and our own analysis of the responsiveness, friendliness, and helpfulness of each company’s customer service team.

Our credentials:

• 350 hours of extensive research conducted.
• Review of 40 different companies.
• Surveyed over 1,500 consumers for insights.

Wrap Up

Finding the cheapest car insurance involves exploring various options and considering factors like coverage, discounts, and customer service. By comparing quotes from multiple insurers and exploring available discounts, you can identify affordable rates that meet your needs. 

However, it’s essential to balance cost savings with adequate coverage to ensure financial protection in case of accidents or unforeseen events. 

Remember to review your policy regularly, take advantage of major life changes that may affect your rates, and maintain a clean driving record to potentially qualify for lower premiums. 

Ultimately, the best approach is to research thoroughly, ask questions, and choose a reputable insurer that offers the right balance of affordability, coverage, and quality service tailored to your specific circumstances.

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Jesuraj S

Jesuraj S,MBA, BCA

He is an experienced financial strategist, insurance adviser, and legal expert. With extensive knowledge in finance and law, Jesuraj provides valuable insights.

His passion is simplifying complex concepts, empowering readers to make informed decisions about their money and insurance.

Get ready for expert advice and in-depth analysis as Jesuraj S. guides you through the diverse world of finance, insurance, and legal matters.

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