In today’s challenging economic climate, finding cheap car insurance can be a priority for many drivers. However, it’s important to remember that what may be the cheapest option for one driver may not necessarily be the best choice for another. With so many insurance companies to choose from, it can be overwhelming to navigate the options and find the best coverage at an affordable price.
At NerdWallet, we understand the importance of finding cheap car insurance that meets your needs. That’s why we’ve done the legwork for you, analyzing auto insurance rates from 139 companies across the country to identify the cheapest options in various categories. Whether you’re looking for minimum coverage or full coverage, we’ve got you covered.
How We Found the Cheapest Companies
Our team at NerdWallet analyzed minimum coverage car insurance rates from Quadrant Information Services, a leading pricing analytics company. We considered a variety of factors, including the age of the driver, ZIP code, driving history, and credit score. Our analysis focused on 35-year-old drivers with a 2021 Toyota Camry LE, ensuring a consistent comparison across all states and Washington, D.C.
It’s worth noting that while minimum coverage is the most affordable option, it may not provide comprehensive protection. Full coverage, which includes additional coverage like uninsured/underinsured motorist protection and comprehensive and collision insurance, comes at a higher cost but offers greater peace of mind. If you have a car loan or lease, your lender will likely require you to have full coverage.
The Cheapest Car Insurance Companies
State Farm: The Overall Cheapest Option
According to our analysis, State Farm emerges as the cheapest car insurance company overall for minimum coverage, with an average rate of just $39 per month. State Farm also offers affordable rates for full coverage, making it a top choice for budget-conscious drivers. With a 5-star rating from NerdWallet, State Farm stands out for its competitive rates and reliable service.
Here’s a comparison of the average annual rates for minimum coverage from the largest insurance companies:
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| State Farm | $471 | $39 |
| Geico | $491 | $41 |
| Travelers | $520 | $43 |
| Nationwide | $785 | $65 |
| USAA* | $362 | $30 |
*USAA auto insurance is available only to military, veterans, and their families.
American National: Affordable Midsize Insurance
While large insurance companies like State Farm and Geico often dominate the market, smaller insurers can offer even cheaper rates. Companies like American National, Auto-Owners, and Erie, which provide coverage in multiple states, have competitive rates that may beat those of larger insurers. It’s important to consider working with an insurance broker or independent agent to explore options from lesser-known companies in your area.
Cheap Car Insurance After a Speeding Ticket: State Farm Takes the Lead
Having a speeding ticket on your driving record can increase your car insurance rates. However, our analysis reveals that State Farm offers the cheapest rates after a speeding ticket, with an average annual rate of $553 or $46 per month. Geico and Travelers also offer competitive rates for drivers with a speeding ticket.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| State Farm | $553 | $46 |
| Geico | $619 | $52 |
| Travelers | $660 | $55 |
| Progressive | $712 | $59 |
| USAA* | $432 | $36 |
*USAA auto insurance is available only to military, veterans, and their families.
Cheap Car Insurance After an Accident: State Farm Comes Out on Top
Having an accident on your driving record can significantly impact your car insurance rates. However, State Farm offers the lowest average rate for drivers with one at-fault accident, at $615 per year or $51 per month. Travelers, Progressive, and Geico also provide competitive rates for drivers with an accident on their record.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| State Farm | $615 | $51 |
| Travelers | $686 | $57 |
| Progressive | $815 | $68 |
| Geico | $825 | $69 |
| USAA* | $533 | $44 |
*USAA auto insurance is available only to military, veterans, and their families.
Cheap Car Insurance After a DUI: Progressive Takes the Lead
A DUI on your driving record can have a significant impact on your car insurance rates. However, our analysis shows that Progressive offers the cheapest rates after a DUI, with an average annual rate of $716 or $60 per month. It’s important to note that rates for drivers with a DUI can vary, so it’s crucial to compare quotes from multiple insurers to find the best deal.
Affordable Car Insurance for Drivers with Poor Credit: Geico Takes the Lead
Having poor credit can make it challenging to find cheap car insurance. However, Geico offers competitive rates for drivers with mixed credit. Based on our analysis, Geico has the lowest average rates for good drivers with poor credit, at $689 per year or $57 per month. Allstate, Travelers, and Progressive also offer affordable options for drivers with less-than-perfect credit.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Geico | $689 | $57 |
| Allstate | $802 | $67 |
| Travelers | $871 | $73 |
| Progressive | $872 | $73 |
| USAA* | $597 | $50 |
*USAA auto insurance is available only to military, veterans, and their families.
Affordable Car Insurance for Young Drivers: Geico and Progressive Lead the Way
Young drivers often face higher car insurance rates due to their lack of driving experience. However, Geico and Progressive offer the cheapest average rates for 20-year-old drivers. It’s worth considering staying on your family’s policy until you have a more robust driving history, as this can often be the most affordable option. If that’s not possible, gathering quotes from Geico, Progressive, Travelers, and State Farm is a good starting point.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Geico | $951 | $79 |
| Progressive | $1,076 | $90 |
| Travelers | $1,086 | $91 |
| State Farm | $1,202 | $100 |
| USAA* | $737 | $61 |
*USAA auto insurance is available only to military, veterans, and their families.
Affordable Car Insurance for Senior Drivers: State Farm and Geico Lead the Way
Car insurance rates for senior drivers tend to be relatively low, thanks to their years of driving experience. According to our analysis, 60-year-old drivers with a good credit score and clean driving history enjoy some of the cheapest rates. State Farm and Geico offer affordable options for both 60-year-old and 70-year-old drivers, making them top choices for seniors.
| Company | Average Annual Rate for 60-year-old drivers | Average Annual Rate for 70-year-old drivers |
|---|---|---|
| State Farm | $439 | $459 |
| Geico | $464 | $529 |
| Travelers | $482 | $558 |
| Progressive | $532 | $587 |
| USAA* | $317 | $358 |
*USAA auto insurance is available only to military, veterans, and their families.
The Cheapest Car Insurance by State
Car insurance rates can vary significantly from state to state. While we’ve identified the cheapest car insurance company for minimum coverage on average in each state and Washington, D.C., it’s essential to remember that rates can also differ within a state. To find the best car insurance rates for your specific location, consider using NerdWallet’s car insurance comparison tool.
How to Get Cheap Car Insurance
If you’re looking to save money on car insurance, there are several strategies you can employ:
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Compare quotes from multiple insurers: Shopping around is crucial to finding the most affordable car insurance rates. NerdWallet’s car insurance comparison tool makes it easy to compare quotes online.
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Ask for discounts: Many insurers offer discounts that you may not be aware of. For example, low-mileage discounts are available for drivers who don’t commute long distances. Other common discounts include bundling car insurance with homeowners insurance, insuring multiple cars on the same policy, and being a student.
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Take advantage of major life changes: Life events like getting married or moving to a safer neighborhood can result in lower car insurance rates. It’s a good idea to get new quotes whenever these changes occur.
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Consider raising your deductible: Increasing your deductible can lower your premium, but be sure to have enough savings to cover the higher deductible in case of an accident.
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Revisit quotes after your driving record improves: If you’ve had accidents, tickets, or moving violations in the past, it’s worth shopping around for new quotes three to five years after these incidents have been cleared from your driving record.
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Choose your car wisely: The type of car you drive can affect your insurance rates. New and expensive cars are generally more expensive to insure. Consider consulting NerdWallet’s analysis of the cheapest cars to insure to find a vehicle that won’t break the bank when it comes to insurance costs.
The Risks of Getting Cheap Car Insurance
While getting the cheapest car insurance possible may be tempting, it’s important to understand the potential drawbacks. Minimum coverage, which is the most affordable option, may not provide sufficient protection in the event of a serious accident. State minimum requirements for property damage liability insurance can be relatively low, leaving you financially vulnerable if you cause significant damage to someone else’s property.
Additionally, choosing the cheapest car insurance may mean forgoing optional coverage types that can help cover your own injuries or property damage. It’s crucial to carefully consider your coverage needs and weigh the potential risks and benefits when selecting car insurance.
Why You Can Trust NerdWallet
At NerdWallet, our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our content and data analyses. Our data analysts take rigorous measures to eliminate outliers and inaccuracies in pricing data, making our rates reliable and trustworthy. By changing only one variable at a time, we provide clear insights into how each factor affects pricing, helping you make informed decisions about your car insurance.
Conclusion
Finding affordable car insurance doesn’t have to be a daunting task. By comparing quotes from multiple insurers and exploring the options available, you can find the cheapest car insurance that meets your needs. Whether you’re a young driver, a senior driver, or someone with a less-than-perfect driving record, there are affordable options out there. Remember to consider factors like coverage types, discounts, and major life changes when searching for the best car insurance rates. With NerdWallet’s guidance, you can navigate the car insurance market and find the coverage that fits your budget and provides the necessary protection on the road.