Cheapest Auto Insurance Companies in 2024 (Best Providers for Affordability)

If you’re on the hunt for the cheapest auto insurance companies, check out big names like USAA, Geico, and Erie, where rates can start as low as $45 a month.

Geico is perfect for safe drivers with great discounts, while State Farm has good deals for high-risk drivers. And if your credit isn’t great, Nationwide has some solid options at competitive prices.

Our Top 10 Picks: Cheapest Auto Insurance Companies

Although USAA and Geico typically have the most cheap car insurance quotes, the company with the best rates for you depends on your unique situation. Explore your auto insurance options by entering your ZIP code into our free comparison tool above today.

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#1 – USAA: Top Overall Pick

Pros

• Lowest Military Rates: Offers the cheapest auto insurance at $45 per month, specifically for military members seeking affordable coverage. Gain insights in our detailed USAA auto insurance review.
• Budget-Friendly Safe Driving: SafePilot program provides up to 30% off already low-cost premiums, making it one of the cheapest auto insurance options for safe drivers.
• Affordable Deployment Coverage: Includes special low-cost auto insurance perks for service members during overseas assignments, maintaining cheap rates.

Cons

• Potential Savings Loss: SafePilot program may increase auto insurance rates for detected infractions, potentially offsetting initial low costs.
• Fewer Budget Support Options: Limited local agents may make it challenging for some to maximize their auto insurance savings.

#2 – Geico: Best for Competitive Rates

Pros

• Affordable Clean Record Rates: Offers $50 monthly auto insurance premiums for drivers with spotless histories seeking low-cost coverage. Have a look at our full Geico auto insurance review for more information.
• Nationwide Low Rates: Accessible cheap auto insurance throughout the US, ensuring consistent affordable coverage during relocations.
• Budget-Friendly Teen Coverage: Charges $250 less per month than competitors for young drivers, offering some of the cheapest teen auto insurance.

Cons

• Post-Claim Rate Jumps: Tends to implement substantial increases to auto insurance rates following accidents, potentially losing its affordable edge.
• No Cheap Mileage Perks: Lacks specific auto insurance discounts for infrequent drivers, potentially making it less affordable for this group.

#3 – Erie: Best for Strong Coverage

Pros

• Stable Cheap Premiums: Unique Rate Lock feature maintains low rates even after filing a claim, ensuring long-term affordable auto insurance coverage. Check out our comprehensive Erie auto insurance review.
• Included Low-Cost Protection: Offers accident forgiveness in standard policies at no extra cost, enhancing the value of its affordable auto insurance coverage.
• Affordable Deductible Benefits: $100 annual collision auto insurance deductible decrease for claim-free years further enhances the cheapness of policies.

Cons

• Outdated Budget Tools: Online and mobile resources for managing cheap auto insurance policies may lag behind more tech-savvy affordable competitors.
• Low-Cost Obscurity: Lower brand recognition may impact trust in Erie’s auto insurance rates for some potential policyholders.

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#4 – State Farm: Best for Local Agents

Pros

• Affordable Local Support: Vast network of agents helps customers maximize savings on cheap auto insurance policies. See further details in our in-depth State Farm auto insurance review.
• Low-Cost Student Options: Substantial savings through Steer Clear program make it one of the cheapest auto insurance for young academic drivers.
• Budget-Friendly Claim Handling: Implements smaller rate hikes after claims compared to many auto insurance competitors, maintaining affordability.

Cons

• Missing Budget Gap Cover: Absence of cheap gap auto insurance option may deter some financed vehicle owners seeking comprehensive affordable coverage.
• Pricier Poor Credit Options: Less competitive cheap rates for those with poor credit compared to some low-cost auto insurance companies.

#5 – Progressive: Best for Flexible Options

Pros

• Significant Low-Cost Tracking Discounts: Snapshot program offers average savings of $145 on already cheap auto insurance for safe drivers. Look into the specifics in our Progressive auto insurance review.
• Affordable Policy Bundles: Up to 12% savings when combining cheap auto with other low-cost coverages like home or renters insurance.
• Budget-Friendly Pet Coverage: Includes cheap pet injury protection in affordable collision policies at no extra charge.

Cons

• Complex Discount System: Intricate requirements may make it challenging to maximize potential savings on cheap auto insurance.
• Risky Low-Cost Tracking: Snapshot participation could increase cheap auto insurance rates for less-than-ideal driving habits, offsetting initial affordable pricing.

#6 – American Family: Best for Comprehensive Policies

Pros

• Low-Cost New Driver Options: Substantial savings through Teen Safe Driver program, making it one of the cheapest auto insurance for newly licensed individuals.
• Cheap Loyalty Benefits: Earn $100 off deductible annually for safe driving, enhancing the affordability of auto insurance coverage over time. Read through our detailed American Family auto insurance review.
• Budget-friendly Accident Protection: Offers forgiveness to eligible policyholders after their first at-fault incident, maintaining cheap auto insurance rates.

Cons

• Varied Cheap Experiences: Average or below-average satisfaction ratings in some areas suggest inconsistencies in cheap auto insurance policy handling.
• Fewer Advertised Savings: Limited publicly advertised discount opportunities compared to some major cheap auto insurance competitors.

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#7 – Farmers: Best for Customizable Plans

Pros

• Affordable Telematics Option: Signal app offers up to 15% off cheap auto insurance rates for demonstrating safe driving behaviors. Examine the insights in our Farmers auto insurance review.
• Budget-Friendly Gig Coverage: Specialized cheap rideshare auto insurance is available for Uber or Lyft drivers seeking affordable protection.
• Customizable Policies: Various add-ons allow tailoring cheap auto insurance to balance coverage and affordability.

Cons

• Confusing Affordable Tiers: Three-level cheap auto insurance coverage structure (Standard, Enhanced, Premier) may complicate finding the most affordable option.
• Restricted Cheap Perks: Certain affordable auto insurance opportunities, like alternative fuel vehicle discounts, not universally available.

#8 – Travelers: Best for Extensive Discounts

Pros

• Short-Term Cheap Evaluation: IntelliDrive program bases cheap auto insurance discounts on 90-day driving performance. Browse our full Travelers auto insurance review for additional information.
• Extended Cheap Replacement: New car replacement coverage on affordable auto insurance policies extends to vehicles up to five years old.
• Cheap Group Options: Partnerships with employers and organizations for potential savings on already affordable auto insurance.

Cons

• Challenging Cheap Claims: Some auto insurance policyholders report difficulties navigating the reimbursement system for low-cost policies.
• Limited Cheap Support: Smaller network of in-person representatives compared to some major affordable auto insurance competitors.

#9 – Allstate: Best for Robust Coverage

Pros

• Substantial Cheap Driving Rewards: Drivewise program offers up to 40% off affordable auto insurance rates for demonstrated good habits. Read more in Allstate milewise review page.
• Budget-Friendly Car Protection: Affordable auto insurance replacement coverage available for vehicles less than two model years old.
• Low-Cost Satisfaction Promise: Offers credit in most states if customers are unhappy with cheap policy claims experience.

Cons

• Expensive Full Cheap Coverage: Comprehensive and collision auto insurance options often pricier than other cheap auto insurance competitors.
• Diminishing Affordable Value: Initial cheap auto insurance discounts may not offset higher base rates for all drivers over time.

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#10 – Liberty Mutual: Best for Reliable Claims

Pros

• Budget-Friendly New Car Perks: New car replacement auto insurance coverage ensures affordable full reimbursement for totaled cars less than a year old. Browse our full Liberty Mutual auto insurance review for additional information.
• Low-Cost Rental Coverage: Offers cheap rental car auto insurance coverage with the option to upgrade for luxury vehicles, enhancing affordable policy value.
• Economical Multi-Policy Options: Bundling cheap auto insurance with home or renters policies can lead to significant discounts, further lowering overall insurance costs.

Cons

• Potential Cheap Rate Volatility: Some customers report unexpected increases to their auto insurance premiums, potentially negating initial cheap policy benefits.
• Complex Affordable Discounts: The variety of savings options may make it challenging for customers to ensure they’re getting the cheapest possible auto insurance rates.

Where to Buy Cheap Auto Insurance for Your Situation

If you’re a good driver, the cheapest car insurance is probably Geico auto insurance. You’ll get better quotes from State Farm auto insurance if you have an accident or DUI on your record, and Nationwide car insurance is cheaper for drivers with bad credit.

Not sure which is the right company for you? Finding the right auto insurance company comes down to knowing what kind of driver you are and the policy you need. Insurers consider different variables when determining your rates, and you’re less likely to be surprised by your insurance quotes when you know how you look to a provider.

Take a closer look at each company and read our insurance company reviews below to learn about coverage options and how to get the cheapest rates on auto insurance.

Read More: Best Auto Insurance Companies in 2023

Geico offers the cheapest car insurance rates out of all the popular companies. Coverage is available nationwide, and good drivers with no accidents or claims will get the best rates. Learn more about Geico by visiting our Geico auto insurance review.

Auto Insurance Monthly Rates by Provider & Coverage Level

Despite having the lowest auto insurance quotes, Geico raises rates higher after a claim than other companies. For example, Geico charges $50 more per month for car insurance rates after an accident versus drivers who only pay $20 more with State Farm. Still, Geico’s rates are cheaper than other competitors, including Progressive and Allstate.

Drivers With the Cheapest Car Insurance Quotes

Drivers who haven’t gotten into an accident, filed a claim, or received any other traffic violation over the past three years get the cheapest insurance rates. You’ll pay even lower rates if you can maintain a clean driving record for five years or more.

Of course, auto insurance for teenage drivers costs the most due to inexperience. Without a driving history, insurance companies consider teen drivers high-risk and charge them more per month.

Auto insurance rates don’t go down until you turn 25, and drivers in their 40s and 50s have the cheapest auto insurance.

Even without a spotless record, you can still find affordable insurance quotes. For example, drivers who work from home or have short commutes can qualify for low-mileage auto insurance discount or save money with a pay-per-mile auto insurance policy. You can also reduce coverage to liability-only on older vehicles to lower rates.

Below, we’ve compared auto insurance rates by age, driving record, and policy type to find the cheapest car insurance companies for any driver. Keep reading to see which is the most affordable insurer based on your coverage needs and driving habits.

Read More: Does auto insurance go down after the first year?

Cheapest Auto Insurance for Good Drivers: Geico

Geico rewards drivers who remain accident and claim-free with the lowest average rates. It also has competitive liability-only and full coverage policies for teens, senior drivers, and those with poor credit if they maintain a clean driving record.

Good drivers can also earn 25% off with Geico DriveEasy, a usage-based insurance (UBI) program that rewards safe driving habits with discounts. However, rates can increase if you speed or drive more at night. So consider when and how you drive before signing up for DriveEasy or any other UBI discount.

Cheapest Auto Insurance by Age

Nothing impacts your auto insurance rates more than your age. Teen drivers pay the highest rates regardless of their insurance company. Insurance prices start to drop after 25 but increase again after 70.

Full Coverage Auto Insurance Monthly Rates by Age & Gender

An 18-year-old driver pays hundreds more per month than a 40- or 50-year-old. However, State Farm and Geico each charge teens an average of $250 less per month than their competitors.

Teen drivers are unique since they earn better rates when added to a parent’s or roommate’s existing policy and are eligible for good student and driver’s education discounts in most states. However, teens might require additional coverage, especially if they drive for work, which can drive up rates.

If you’re a young driver or are adding one to a policy, shop around and compare multiple quotes based on the coverage you need.

Cheapest Auto Insurance for Military Members: USAA

Active and retired military members are eligible for discounts based on their service and certain association memberships. For example, USAA offers exclusive savings on auto insurance and other types of property coverage to U.S. military servicemen and women.

You must be active duty, a veteran, or an immediate family member to qualify for USAA auto insurance. Still, its rates are among the cheapest in the nation. If you are a military member, check out our USAA auto insurance review for more information.

USAA is cheaper than Geico and offers full coverage rates at half the national average cost. Eligible drivers can also sign up for USAA SafePilot and earn a bigger discount than with Geico — up to 30% for safe driving habits.

Unfortunately, just like Geico DriveEasy, SafePilot will raise your rates for speeding and distracted driving. It also increases rates after an accident or DUI, so it may not be the cheapest company for high-risk drivers, even as a military member.

Cheapest Auto Insurance for High-Risk Drivers: State Farm

State Farm and Geico are neck-and-neck when it comes to offering the cheapest auto insurance rates. However, State Farm offers the best rates to drivers with accidents, tickets, and DUIs.

Full Coverage Auto Insurance Monthly Rates by Driving Record

A closer comparison shows that State Farm won’t raise your rates nearly as high after a claim or traffic violation. For example, rates only go up by $10 after a speeding ticket, while Geico raises rates by $20 a month and Liberty Mutual by $40.

Let’s look at how State Farm compares to the competition after an accident or a DUI.

Cheapest Auto Insurance With Poor Credit: Nationwide

Average monthly auto insurance quotes may be more expensive than Geico or State Farm, but Nationwide won’t punish drivers with poor credit scores with steep rate increases. It raises rates by less than 50% between poor and good credit scores, while other insurers hike rates by 70%-80%.

Full Coverage Auto Insurance Monthly Rates by Credit Score

Nationwide adds about $45 to your monthly bill if you have poor credit, still $60 less per month than the national average. Compared to Geico, which increases rates by 71%, or American Family raising rates by 83%, you can save a lot of money with Nationwide. If you have bad credit, check out our Nationwide car insurance review for more information.

Drivers with bad credit can also sign up for Nationwide SmartRide and save 10% by using UBI.

Unlike USAA SafePilot and Geico DriveEasy, SmartRide doesn’t increase rates for speeding, using your phone, or driving at night. Safe drivers with poor credit scores can save an average of 21% on their annual rates.

Cheapest Auto Insurance With Discounts: Geico

Geico has 16 car insurance discounts for drivers. Most automatically apply to your policy, but you may have to ask for others, such as military or federal employee discounts.

Some companies may offer more discounts than Geico. You’ll notice that Geico doesn’t offer popular ones like low-mileage or paid-in-full. However, it’s the cheapest auto insurance company with discounts because it offers lower rates than many other national insurers.

Geico offers uncommonly high discounts for anti-theft systems (23%), safe driving (22%), and new vehicles (15%). Active military members can also earn additional discounts for emergency deployment (25%).

The only discount not listed above is the air bag discount, which saves drivers up to 23% annually by having driver-side and passenger-side air bags.

Cheapest Pay-Per-Mile Auto Insurance: Metromile

Metromile was one of the first companies to make pay-per-mile car insurance competitive, and it continues to offer the best rates to low-mileage drivers.

The company uses the Metromile Pulse, a wireless telematics device that connects to your vehicle and tracks your daily mileage. It doesn’t track driving habits or use them to determine your rates, but it provides a GPS tracking system when you can’t find your vehicle.

If Metromile is available in your state, you pay a monthly rate of $29 plus six cents per mile driven.

However, Metromile is only available in eight states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. Further, there are daily mile limits that vary by state. For example, New Jersey caps mileage at 150 miles per day, and California caps it at 250. Going over these limits can raise your rates.

Pay-per-mile coverage isn’t for everyone. Only drivers on the road less than 8,000 miles annually benefit from this insurance type. However, despite its limited availability, Metromile is the cheapest choice for drivers eligible for pay-per-mile coverage. Check out our Metromile auto insurance review for more information.

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Cheapest Auto Insurance by State

Now that you know the cheapest car insurance companies, you can start comparing quotes where you live. Local insurance laws determine the minimum auto insurance required by state, which impacts the average auto insurance rates in each state listed below.

Full Coverage Auto Insurance Monthly Rates by State

Your rates will vary based on age, gender, and driving record. For example, male drivers may pay a little more than what’s listed above and women a little less, so compare quotes from multiple companies to see which offers the best price.

It’s important to compare at least three auto insurance companies near you to determine what coverage is available and at what price. Your state insurance laws determine your minimum coverage, how much insurance companies can charge, and what kind of policies they can offer.

Certain insurance coverages offered by the above companies may be unavailable in your state. If unique coverage options such as UBI or pay-per-mile insurance decide where you shop, take advantage of our free comparison tool above to see what’s available with companies near you.

Other Factors That Affect Auto Insurance Rates

You’ve seen how many factors affect your car insurance rates — insurance companies consider age and gender the biggest risk indicators, with teen males paying the most for coverage. The next largest risks are driving record, credit score, and ZIP code.

Here are a few other things to watch out for that can make you appear riskier to insurance companies:

• Vehicle Make and Model: Sports and luxury vehicles have higher average insurance quotes because they cost more to repair after a claim.
• Claims History: Even minor claims that don’t involve collisions can raise your rates by 20%-40%.
• Commute: More time on the road leads to an increased likelihood of an accident. Long work commutes cost you a low-mileage discount and raise your average rates.

Awareness of all the elements impacting your quotes can make shopping for auto insurance less stressful. Even if you don’t qualify for the lowest average rates, knowing what to expect gives you the tools to negotiate for the cheapest auto insurance in your unique situation.

How to Buy Cheap Auto Insurance Near You

If you’re looking for a cheap car insurance company, consider your driving record and how much coverage you need. There are quite a few other variables that impact how much an insurance company charges, but you can follow the tips below to reduce your average rates:

• Get Various Auto Insurance Discounts: Geico offers the biggest discounts, but the list is limited. You may qualify for lower rates with other companies by asking for the four main discount types: driver safety discounts, vehicle safety discounts, policy discounts, and lifestyle discounts.
• Purchase a Cheaper Car: The cheapest cars to insure are the Ford F-150 and Honda CR-V, but other vehicles with high-safety ratings and advanced anti-theft systems will get you the lowest rates.
• Reduce Coverage: Don’t carry full coverage insurance if you don’t need it. Buying liability-only insurance for an older vehicle you own will lower your average monthly rates.
• Compare Auto Insurance Quotes Online: You’ll get the best rates on auto insurance if you compare at least three different companies. The more quotes you compare online, the more accurate your average will be when you buy your policy.

Generally, the cheapest auto insurance companies for full coverage are Geico and State Farm. However, drivers in some states will find better rates with regional companies like Erie and Farm Bureau Mutual.

State Farm offers cheap high-risk auto insurance depending on your driving and claims history, but teens will get lower quotes from Erie. Nationwide is less likely to raise your rates as high as some other insurers if you have poor credit.

However, auto insurance rates vary by driver, and some of these cheap insurance companies may not be available where you live. If you need affordable auto insurance today, use our free comparison tool below and get insurance quotes from the cheapest car insurance companies in your neighborhood.

Read More: Farm Bureau Auto Insurance Review: Should you buy?

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