Cheapest car insurance in May 2025

To find the cheapest car insurance companies, Bankrate analyzed carrier rates obtained from Quadrant Information Services. These car insurance carriers ranged from the largest by market share to small, regional carriers. We also reviewed companies on a broader scale by examining customer satisfaction reviews, financial strength ratings, policy options, discounts, corporate sustainability, customer support and more. 

Each category was given a rating and then averaged into our proprietary Bankrate Score. To provide an easy-to-use shopping and comparison tool for consumers, we calculated the Bankrate Score out of five total points. The higher a company’s score, the more competitively that company ranked in each scoring category. Our picks highlight auto insurers that:

Admittedly, your car insurance premium may feel like a useless expense if you haven't needed to file a claim, but it could mean the difference between minor headaches and a significant financial crisis if you're involved in an accident. While you might not have all the bells and whistles that come with more expensive plans, low-cost insurance policies can help you stay within your monthly budget and meet the state's obligations for car insurance.

Staying under budget by purchasing the cheapest auto insurance you can find may not be worth it if you are left vulnerable to financial devastation from a car accident. Carrying higher than the state-mandated limits for bodily injury and property damage liability could only cost you a few dollars more per year and save you significant out-of-pocket expenses if you were to cause an accident. Instead of focusing on the cheapest coverage possible, try to balance affordability and protection. Also, you may want to get creative when researching car insurance benefits. Instead of paying extra for roadside assistance or rental reimbursement, you may want to see if your cell phone provider or credit card company offers these benefits for free or at a lower rate than your insurer.

Insurance companies generally consider you a youthful driver until age 25 (unless you live in Hawaii or Massachusetts, where state law prohibits insurers from using age as a rating factor). However, your rates are calculated using many rating factors. Depending on where you live, these could include your gender, credit score and ZIP code. Your driving and claims history also affect your average rate. That said, many drivers see gradual decreases in their car insurance premiums after age 25 — at least until their senior years, when age-related health issues may make accidents more likely and raise insurance rates accordingly.

Out of all the types of vehicles on the road, mid-sized cars tend to have the lowest cost of car insurance. Of course, this heavily depends on the year, make and model of the vehicle, along with several other rating factors, but a compact SUV or a mid-sized car usually has a more favorable risk profile than a truck or compact car. Insurance companies take into account the cost of parts and labor associated with the car and the kind of damage the vehicle can do to property, vehicle occupants and pedestrians in the event of an accident, among other factors.

According to Bankrate's proprietary data from Quadrant Information Services, the 2024 Subaru Outback is one of the cheapest new cars to insure when compared to other 2024 models, including the Toyota Prius, the Honda Odyssey and the Ford F-150.