The Cheapest Car Insurance Companies – October 2023
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State Farm is the cheapest car insurance company among large insurers, with an average minimum coverage rate of $450 per year.
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State Farm also has the lowest average rates for drivers with a recent accident, speeding ticket or DUI.
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Auto-Owners has the cheapest auto insurance among midsize companies, with an average rate of $337 per year and $28 per month.
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Insurer availability varies, but State Farm is the cheapest option, on average, for drivers in 15 different states.
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Many factors influence car insurance costs, and what you pay will probably be different than the averages included below.
State Farm might be a good place to start. NerdWallet analyzed auto insurance rates from 154 car insurance companies around the country to find cheap car insurance across several categories. State Farm is the cheapest car insurance company overall, with an average rate of $37 a month for minimum coverage. It was also the cheapest in our analysis of cheap full coverage auto insurance.
But there are many things that influence how much you dish out for car insurance. Check out the table below to find the cheapest car insurance company for each category we analyzed. Select the link for each category for an expanded list of the cheapest companies.
| Cheapest by category | Company | Average monthly rate |
|---|---|---|
| $37 | ||
| $28 | ||
| $45 | ||
| $50 | ||
| $68 | ||
| $73 | ||
| $86 | ||
| $36 |
If you want the best of the cheapest, check out NerdWallet’s roundup of the best cheap car insurance companies.
Take note: While our lists of cheap car insurance can help narrow your search, your own quotes won’t match these. That’s because car insurance companies base rates on a variety of factors unique to every driver. NerdWallet recommends you compare car insurance quotes from multiple insurers to find the best price possible. And don’t forget to ask about car insurance discounts.
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The cheapest large car insurance company: State Farm
State Farm is the cheapest large auto insurance company in the nation for good drivers, according to NerdWallet’s 2023 analysis of minimum coverage rates. State Farm’s average annual rate was $450 or about $37 per month. The company also earned a 5-star rating from NerdWallet, and you can read our State Farm auto insurance review to learn why.
Cheapest auto insurance from the largest companies
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| $450 | $37 | |
| $568 | $47 | |
| $603 | $50 | |
| $673 | $56 | |
| USAA* | $341 | $28 |
| *USAA auto insurance is available only to military, veterans and their families. | ||
The cheapest midsize car insurance company: Auto-Owners
Finding affordable car insurance doesn’t mean you have to stick with large insurance companies. Auto-Owners and Erie, smaller insurers that offer coverage in multiple states, have even cheaper car insurance rates than State Farm.
While availability can be limited, midsize insurers may beat cheap auto insurance prices from larger companies. Plus, according to a 2022 J.D. Power auto insurance shopping study, customers are often satisfied with these companies.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| $337 | $28 | |
| $395 | $33 | |
| $631 | $53 | |
| $634 | $53 | |
| $693 | $58 |
We chose these companies because of their relatively low rates and availability in multiple states. But there may be more affordable auto insurance options where you live. Consider working with an insurance broker or independent agent to help compare rates with smaller, lesser known companies.
Cheapest car insurance after a speeding ticket: State Farm
A speeding ticket on your driving history will likely increase how much you pay for car insurance. According to our analysis, State Farm offers the cheapest rates after a speeding ticket, with an average annual rate of $545, or $45 per month.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| $545 | $45 | |
| $695 | $58 | |
| $782 | $65 | |
| $849 | $71 | |
| USAA* | $412 | $34 |
| *USAA auto insurance is available only to military, veterans and their families. | ||
Cheapest car insurance after an accident: State Farm
Depending on your driving record, the most affordable car insurance company varies. The table below shows average auto insurance rates from the largest companies for drivers with a recent accident on their driving record.
Our analysis found that State Farm has the lowest average rate for drivers with one at-fault accident, at $600 per year, or $50 per month.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| $600 | $50 | |
| $737 | $61 | |
| $949 | $79 | |
| $994 | $83 | |
| USAA* | $496 | $41 |
| *USAA auto insurance is available only to military, veterans and their families. | ||
Cheapest car insurance after a DUI: State Farm
A DUI on your driving record can greatly increase how much you pay for car insurance. According to our analysis, State Farm tops the list of cheapest car insurance companies after a DUI, at $817 per year, or $68 per month, on average.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| $817 | $68 | |
| $852 | $71 | |
| $918 | $76 | |
| $943 | $79 | |
| USAA* | $659 | $55 |
| *USAA auto insurance is available only to military, veterans and their families. | ||
Cheapest auto insurance for poor credit: Geico
Many insurers also use credit-based insurance scores to help calculate car insurance rates. This can make it harder to get cheap car insurance if you have poor credit.
California, Hawaii and Massachusetts don’t allow insurers to use credit when determining car insurance rates.
Credit can have a shocking impact on auto insurance costs. Drivers with poor credit may pay over $400 more a year, on average, than those with good credit.
If you’re looking for affordable car insurance from a large company, Geico might be a good place to start if your credit is mixed. Based on our analysis of large insurers, the company has the lowest average rates for good drivers with poor credit, at $870 per year, or $73 per month, on average.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| $870 | $73 | |
| $912 | $76 | |
| $1,053 | $88 | |
| $1,163 | $97 | |
| USAA* | $568 | $47 |
| *USAA auto insurance is available only to military, veterans and their families. | ||
If you live with your family, it may be cheapest to stay on their policy until your driving history is more robust. If that’s not possible, you may want to start gathering quotes from the following companies, which have the cheapest average car insurance rates for 20-year old drivers.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| $1,035 | $86 | |
| $1,114 | $93 | |
| $1,177 | $98 | |
| $1,369 | $114 | |
| USAA* | $749 | $62 |
| *USAA auto insurance is available only to military, veterans and their families. | ||
Cheapest car insurance for senior drivers
Car insurance is relatively low when you first enter your golden years. According to our analysis, 60-year-old drivers with a good credit score and clean driving history enjoy some of the cheapest rates. You can chalk this up to the years of driving experience 60-year-olds have under their belt. But as you reach your 70s, rates start to creep up.
Use the table below to find the cheapest average rates for 60- and 70-year-old drivers.
| Company | Average annual rate for 60-year-old drivers | Average annual rate for 70-year-old drivers |
|---|---|---|
| $418 | $446 | |
| $510 | $584 | |
| $576 | $654 | |
| $584 | $663 | |
| USAA* | $301 | $340 |
| *USAA auto insurance is available only to military, veterans and their families. | ||
» MORE: Car insurance for seniors
Cheapest car insurance by state
What counts as cheap auto insurance will be different depending on where you live, as rates vary widely from state to state.
For the sake of comparison, we found the cheapest car insurance company for minimum coverage, on average, in each state and Washington, D.C.
| State | Cheapest company | Average annual rate |
|---|---|---|
| Cincinnati Insurance | $301 | |
| $305 | ||
| Noblr | $278 | |
| $243 | ||
| $207 | ||
| $165 | ||
| $555 | ||
| California Casualty | $586 | |
| $338 | ||
| $328 | ||
| $318 | ||
| $108 | ||
| $304 | ||
| $229 | ||
| $158 | ||
| $249 | ||
| Kentucky Farm Bureau | $421 | |
| Southern Farm Bureau Casualty | $505 | |
| Concord Group | $288 | |
| Cumberland Mutual | $478 | |
| Preferred Mutual | $309 | |
| $139 | ||
| Westfield | $323 | |
| $335 | ||
| Missouri Farm Bureau | $268 | |
| $209 | ||
| $109 | ||
| $396 | ||
| Concord Group | $287 | |
| $280 | ||
| Central Insurance | $152 | |
| NYCM | $463 | |
| North Carolina Farm Bureau | $350 | |
| North Star | $254 | |
| Central Insurance | $193 | |
| $278 | ||
| $436 | ||
| $276 | ||
| $501 | ||
| $186 | ||
| $184 | ||
| $225 | ||
| $396 | ||
| QBE | $368 | |
| Union Mutual | $171 | |
| $320 | ||
| Pemco | $193 | |
| $319 | ||
| Westfield | $319 | |
| Integrity | $173 | |
| $145 |
But state averages can tell you only so much. Even within a state, car insurance rates for minimum coverage can differ. That’s why NerdWallet analyzed rates for some of the largest cities in the U.S.
Choose your city in the dropdown below to see cheap car insurance rates in your area.
How to get cheap car insurance
If you’re looking to save money by getting the cheapest possible car insurance, it’s essential to compare quotes from multiple insurers. You can use NerdWallet’s car insurance comparison tool to easily shop for cheap auto insurance online. You may find that you already have the most affordable insurance; but prices can change, so check roughly once a year.
Follow these additional tips to get cheap auto insurance rates:
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Ask for discounts. There could be savings from car insurance discounts you’re not taking advantage of. For instance, maybe you now work from home and are driving less frequently than when you bought your policy. Mention that and you might get a low-mileage discount.
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Cash in on major life changes. Certain life events could translate to cheaper car insurance, so shop for quotes whenever something major changes in your life. For instance, many companies offer a lower rate for married couples or domestic partners. Or perhaps you moved to a suburb with lower accident and crime rates. Even if you moved to a more expensive area for car insurance, shopping around can help you get cheaper coverage.
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Revisit quotes after your driving record improves. Shop for cheap car insurance quotes online three to five years after any accidents, tickets or moving violations. They may have dropped off your driving record.
The type of car you drive also affects how much you pay for auto insurance. Check out NerdWallet’s analysis of the cheapest cars to insure to see if your vehicle made the list.