The Cheapest Car Insurance Companies For You

Cheapest car insurance by state

State Farm and USAA are the most cost-effective major Cheapest Car Insurance providers in the country. State Farm charges $44 per month on average for a minimum-liability policy, which is 26% less than the national average. USAA costs an average of $36 per month, but only active military, veterans, and their families are eligible.

The Cheapest Car Insurance Companies (July 2022)
The Cheapest Car Insurance Companies (July 2022)

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Farm Bureau Insurance, at $39 per month, and Auto-Owners, at $40 per month, are the cheapest among companies with a smaller national footprint. At $42 per month, Erie is a close third.

Because they compete with much larger companies, smaller car insurance companies may offer lower rates. Because they are based in your state or community, some provide more local knowledge or a more personal touch.

What is the most affordable car insurance company for you?

Begin by obtaining quotes from the auto insurance companies with the lowest rates in order to find the cheapest car insurance for you. Some companies may have lower quotes for certain drivers than others based on a variety of factors such as location, driving history, credit score, and so on.

Compare the best auto insurance companies if you’re looking for the cheapest companies that also provide the best balance of affordable rates, strong customer service, and coverage options.

State Farm is the most affordable car insurance company overall.

State Farm is the nation’s largest auto insurance company, offering the cheapest widely available quotes in 29 states. Furthermore, the company has a massive network of local agents, so there’s probably a State Farm agent in your town who can help you compare rates.

Given that USAA has eligibility restrictions, and Farm Bureau and Auto-Owners are disproportionately expensive when you add more coverage, State Farm is the best and cheapest car insurance company for most drivers.

State Farm also ranks highly in terms of policy options. It provides pet insurance, ridesharing insurance, and roadside assistance. Customers can also bundle their services to further reduce their rates.

Drivers with State Farm can take advantage of programs like Drive Safe & Save, which convert good driving habits into low-cost quotes. You may also be eligible for a variety of discounts, such as an accident-free discount, a multicar discount, and an anti-theft discount.

However, depending on your state, State Farm may not have the cheapest car insurance rates. Local companies such as Erie, Farm Bureau, and Auto-Owners may offer you lower rates, especially if you only require liability coverage.

Geico has the lowest car insurance rates after discounts.

Geico offers some of the most affordable car insurance in the country, ranking second only to State Farm among the largest companies.

Geico may have lower quotes than State Farm depending on where you live. Geico is the most affordable insurance provider in seven states, including California and Florida.

When it comes to potential savings through discounts, Geico stands out. Though Geico’s car insurance rates are slightly higher on average than State Farm’s, you may end up paying less overall if you qualify for one of Geico’s many car insurance discounts.

Geico has one of the most extensive discount lists available, and the amount you can save with each discount is greater with Geico than with most other companies.

For example, Geico provides safe drivers with a discount of up to 22%, compared to the national average of 10%. Installing anti-theft devices in your car can save you up to 15%, but Geico promises savings of up to 23%.

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One disadvantage of Geico is that its customer service is about average when compared to other major insurance companies. Customer complaints are mostly about denied or delayed claims. Geico also does not provide gap insurance for vehicles that are financed or leased.

Erie is the cheapest auto insurance company for a bad driving record.

For drivers with a ticket or an accident on their record, Erie has some of the most affordable car insurance quotes. And you’re unlikely to find a lower rate if you have a DUI (driving under the influence) on your record. Erie also has the lowest increase in auto insurance rates following a driving incident.

If you get a ticket, Erie will only raise your rates by an average of 7%, whereas most insurers will raise your rates by 22% or more. For an at-fault accident, Erie will only raise your rates by 25%, rather than the typical 44 percent. In Erie, the average quote for a DUI is $188 per month, a 64 percent increase. Other businesses can be expected to double your rates after a DUI.

Quotes for a full-coverage policy on a monthly basis

Erie also has a good reputation for customer service and a wide range of insurance options.

Customers who qualify for Erie’s Rate Lock program can avoid premium increases that could cause rates to rise over time. Customers will not see their rates increase unless they move to a different area or change where they park their car, add or remove someone from their policy, or add or remove a car.

That means your car insurance will not go up if you get a ticket or file a claim.

Erie also provides the same car insurance discounts as larger national companies, such as bundling multiple insurance policies, driving safely as a young or senior driver, or having a vehicle equipped with anti-lock brakes or anti-theft equipment.

The main disadvantage of Erie is that it is only available in 12 states plus DC:

  • The District of Columbia
  • Indiana, Illinois
  • Kentucky
  • Maryland
  • New York City
  • North Carolina (NC)
  • Ohio
  • Pennsylvania
  • Tennessee
  • West Virginia Virginia
  • Wisconsin

Auto-Owners has the cheapest car insurance for teens and parents.

Staying on a parent’s policy is usually the cheapest way to get car insurance for a teen driver. Auto-Owners offers some of the most affordable rates for drivers under the age of 21 on their parent’s plan.

The main drawbacks are that Auto-Owners is only available in 26 states and that you must contact an agent to obtain a quote.
Monthly insurance quotes for an 18-year-old driver versus a 50-year-old parent with a teen driver

Auto-Owners also consistently receives high marks for customer service. You can contact customer service or file a claim via your dedicated agent, the mobile app, or your online account. This is especially important for young drivers who are away at college and may not have access to a car.

Metromile offers the most affordable car insurance for safe and low-mileage drivers.

If you drive less than the average person or are a generally safe driver, a usage-based or pay-per-mile auto insurance company like Metromile may be the best option for you.

Metromile was one of the first companies in the United States to base car insurance quotes primarily on mileage. When shopping with Metromile, how much driving is too much? Metromile is generally a good deal if you drive less than 10,000 miles per year.

Usage-based insurance is frequently less expensive than standard car insurance because your rates are largely determined by how frequently and well you drive.

It’s a good option for people who are generally safe drivers but can’t find low-cost insurance elsewhere because they’re young, have bad credit, live in a crowded city, or have other risk factors that raise their insurance rates.

This means Metromile could provide low-cost car insurance to retirees or people who work from home, students who live on campus, and young drivers with a clean driving record.

Metromile’s main disadvantage is that it is only available in eight states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. If you do not live in one of these states, consider other telematics programs such as Nationwide, Liberty Mutual, or State Farm, which offer discounts for less driving or safer driving.

 

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