The Cheapest Car Insurance Companies

Did you know the exact same driver could be charged $36 per month by one insurance company and $123 per month by another?

Our car insurance analysis — based on hundreds of thousands of quotes collected across the country — backs that up. Read on to find out the cheapest companies in the country, in your state and for certain types of drivers.

Beyond the data, the best advice we can give drivers looking for their best car insurance rates is to shop around. No single insurer will be the cheapest for every driver, but our research will give you a good foundation to start your search.

What is the cheapest car insurance company?

Our analysis found that USAA and State Farm are the most affordable major insurers in the country. USAA cost an average of $215 for a six-month policy, 55% below the national average. State Farm cost $356 (24% below the national average) for a six-month policy.

Although USAA is easily the cheapest option among major insurers, only active military members, veterans or their families will qualify for a policy.

Among insurers that have a smaller national footprint, Farm Bureau Insurance, at $218 for a six-month policy, and Erie, at $226, rank as the cheapest.

These insurers don’t have the same name recognition as some of the companies you may recognize from national television campaigns, but could help you find savings if you’re looking for the cheapest rate.

CompanyRates with excellent creditRates with poor credit% difference
Farm Bureau Insurance$160$21836%
American Family$248$40563%
Auto-Owners Insurance$174$32487%
State Farm$188$35690%

Rates are for our designated sample driver shopping for a minimum coverage policy.

Shoppers should note that the Farm Bureau and its affiliates often have an annual membership fee, which should be taken into account when comparing premiums to other insurers.

On average, our sample insurers charged rates 60% higher if a driver had poor credit instead of excellent credit, so improving your credit score is a great way to garner big savings on your insurance policy.

Broadly speaking, you should take two key steps to find the cheapest car insurance for you.

  1. Ensure you’re shopping for the appropriate level of car insurance coverage.
  2. Shop for quotes between multiple insurers, including our top recommendations. When shopping, be sure to take advantage of all available discounts.

Taking the first step — knowing how much car insurance you need — is important for finding appropriately cheap car insurance because:

  • You don’t want to overpay for unnecessary coverage.
  • But you do want to purchase enough coverage to fulfill legal requirements and to appropriately cover your risk.
  • Finally, you’ll have to define your appropriate coverage limits to make fair price comparisons across insurers.

Leave a Reply

Your email address will not be published. Required fields are marked *