Cheapest Car Insurance Companies (January 2024)

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Wanting cheap car insurance in this economy can seem like a no-brainer. But every company is different, and what’s cheapest for one driver may not be cheapest for you. That’s why NerdWallet did the legwork for you. We analyzed auto insurance rates from 139 car insurance companies around the country to find cheap car insurance across several categories.

State Farm is the cheapest car insurance company overall according to NerdWallet’s analysis, with an average rate of $39 a month for minimum coverage. It was also the cheapest in our analysis of cheap full coverage auto insurance.

Check out the table below to find the cheapest car insurance company for each category we analyzed.

🤓Nerdy Tip

Did your auto insurance rates go up? Premiums are on the rise across the U.S. The best way to find cheap car insurance is to shop around and compare quotes from at least three insurers.

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 2024 analysis of minimum coverage rates. State Farm’s average annual rate was $471 or about $39 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

*USAA auto insurance is available only to military, veterans and their families.

The cheapest midsize car insurance company: American National

Finding affordable car insurance doesn’t mean you have to stick with large insurance companies. Companies like American National, 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.

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.

Find the right car insurance at the right price

Just answer a few questions to compare personalized insurance matches.

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Cheapest car insurance after a speeding ticket: State Farm

*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 $615 per year, or $51 per month.

*USAA auto insurance is available only to military, veterans and their families.

Cheapest car insurance after a DUI: Progressive

A DUI on your driving record can greatly increase how much you pay for car insurance. According to our analysis, Progressive tops the list of cheap car insurance companies after a DUI, at $716 per year, or $60 per month, on average.

🤓Nerdy Tip

Looking for even cheaper auto insurance? Try a smaller insurer. Drivers with violations like one at-fault accident or a recent DUI can often find the most affordable auto insurance rates with midsize insurers.

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 $300 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 $689 per year, or $57 per month, on average.

*USAA auto insurance is available only to military, veterans and their families.

Find the right car insurance at the right price

Just answer a few questions to compare personalized insurance matches.

Hand with a car

Cheapest car insurance for young drivers

If you’re a young driver, you may have a hard time getting cheap car insurance. That’s because auto insurers view drivers without a recent driving history as riskier to insure. Same goes for drivers with a lapse in car insurance, immigrants and visitors to the U.S.

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.

*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.

Average annual rate for 60-year-old drivers

Average annual rate for 70-year-old drivers

*USAA auto insurance is available only to military, veterans and their families.

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.

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, here are six things you can try:

  1. Compare quotes from multiple insurers. 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.

  2. Ask for discounts. You could save money from car insurance discounts you’re not taking advantage of. For example, maybe you work from home and don’t drive much. Mention that and you might get a low-mileage discount. Other common discounts are given for bundling car insurance with homeowners insurance, insuring multiple cars on the same policy and being a student.

  3. 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.

  4. Raise your deductible. The higher your deductible, the more you pay out of pocket before insurance pays for a covered claim. The upside is that by raising your deductible, you’ll usually be able to lower your premium. Just make sure you have enough money set aside to cover the higher deductible if you ever get in an accident.

  5. 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.

  6. Reconsider the car you drive. The type of car you drive affects how much you pay for auto insurance. For example, new and expensive cars tend to cost more to insure than older or less expensive cars, among other factors. Check out NerdWallet’s analysis of the cheapest cars to insure to see if your vehicle made the list.

Risks of getting cheap car insurance

Getting cheap car insurance usually means getting the barest coverage required by law in your state. But state requirements can be quite low and leave you financially vulnerable if you’re in a serious accident.

For example, in Florida, the minimum required property damage liability insurance is $10,000. This type of coverage is required in nearly every state and pays for damage you cause to other people’s stuff — like their car. That means if you live in Florida, have minimum coverage and total someone else’s vehicle in an accident, you’ll be on the hook to pay for any costs over $10,000.

Getting the cheapest car insurance possible might also mean missing out on optional coverage types that can help cover your own injuries or property damage — for example, when you’re injured in an accident or if your car is banged up after a bad storm or a hit and run. To find cheap car insurance with more coverage, check out NerdWallet’s list of cheap full coverage insurance.

Why you can trust NerdWallet

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate outliers and inaccuracies in pricing data, which include rates from every ZIP code in the country where coverage is offered and data is available. When comparing rates for different coverage amounts, ages and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing. Read our methodology below.

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