Cheapest car insurance in March 2025
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Reviewed by
Edited by
Reviewed by
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C.
Average rate:
$/mo
$/yr
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C.
Average rate:
$/mo
$/yr
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
The cheapest car insurance companies
Car insurance pricing isn’t the same for everyone. While the national average runs $2,678 per year for full coverage and $799 for minimum coverage, what you actually pay depends on things like your driving record, the car you drive and the level of protection you choose.
But getting the lowest rate isn’t just about picking the cheapest option — it’s about finding the best value. A good insurer offers more than just an attractive price tag; it provides reliable coverage, solid customer service and discounts that fit your situation. Shopping around and comparing multiple quotes can help you find the balance between affordability and quality protection.
Key takeaways from Bankrate’s cheap car insurance analysis:
- Cheapest for full coverage: Auto-Owners $151
- Cheapest for minimum coverage: Auto-Owners $41
- Cheapest after a speeding ticket: Auto-Owners $174
- Cheapest after an at-fault accident: Auto-Owners $207
- Cheapest after a DUI: USAA $322
- Cheapest for teen drivers (age 16): Geico $385
- Cheapest for senior drivers (age 70): Auto-Owners $155
- Cheapest for drivers with poor credit history: Geico $269
(Average monthly rates for full coverage unless stated otherwise. From Quadrant Information Services as of March 2025)
The cheapest car insurance company by driving record: Auto-Owners
Based on our research, Auto-Owners offers the cheapest minimum coverage car insurance rates for high-risk drivers who have one speeding ticket conviction. For full coverage premiums, our proprietary data shows that USAA may offer low average rates for drivers with a DUI. Keep in mind that actual rates from every company will vary for each driver, and not every company will insure someone who has a DUI conviction. If you have a DUI or several moving violations, contact an agent for help.
|
|
|
|
|
|
|---|---|---|---|---|
|
$496
|
$576
|
$725
|
$1,160
|
|
|
$594
|
$706
|
$859
|
$1,104
|
|
|
$580
|
$710
|
$820
|
$1,289
|
|
|
$1,242
|
$1,532
|
$1,410
|
$3,001
|
|
|
$914
|
$1,061
|
$1,195
|
$1,646
|
|
|
|
|
|
|
|---|---|---|---|---|
|
$1,808
|
$2,093
|
$2,483
|
$3,716
|
|
|
$2,059
|
$2,463
|
$2,962
|
$3,866
|
|
|
$2,171
|
$2,666
|
$3,052
|
$4,614
|
|
|
$3,869
|
$4,774
|
$4,504
|
$9,696
|
|
|
$2,846
|
$3,259
|
$3,600
|
$4,738
|
Bankrate’s take: Depending on your state, you might be able to get license points associated with a speeding conviction removed from your driving record by completing a driver safety course. In most cases there will be a fee to take the class, but if you can remove the violation from your driving record, your policy is less likely to be surcharged. Ask your insurer if this option is available to you.
Related content on cheap car insurance:
The cheapest car insurance from smaller companies: Union Mutual
When it comes to car insurance, big-name companies with catchy jingles and comedic mascots dominate the conversation. However, regional companies with smaller market shares often offer cheaper rates for the same coverage options you’ll find with a national provider. In your search for cheap car insurance quotes, a smaller insurer may also help you find affordable car insurance, offer high customer satisfaction ratings and provide more personalized service. Plus, if you choose to work with a regional insurer, it may be able to provide boots-on-the-ground insight into different coverage types you should consider based on the risk factors common to your location. These regional carriers offer the cheapest average minimum and full coverage car insurance, according to Bankrate’s analysis.
|
|
|
|
|---|---|---|
|
Union Mutual
|
$162
|
$14
|
|
Integrity Insurance
|
$198
|
$16
|
|
American National
|
$261
|
$22
|
|
Rural Mutual
|
$263
|
$22
|
|
Nodak
|
$273
|
$23
|
|
|
|
|
|---|---|---|
|
Union Mutual
|
$756
|
$63
|
|
Countryway
|
$1,146
|
$95
|
|
Oregon Mutual
|
$1,157
|
$96
|
|
American National
|
$1,176
|
$98
|
|
Hastings Mutual
|
$1,240
|
$103
|
Bankrate’s take: When considering a smaller insurance company you aren't familiar with, you may want to check its financial stability ratings issued by AM Best, S&P or Moody's before you make the switch. Smaller companies aren't inherently less stable than larger ones, but this may be a friction point for some.
The cheapest car insurance company for poor credit: Geico
The table below reflects that Geico offers the cheapest average annual rates for drivers with poor credit histories, while USAA offers the lowest average annual rates for drivers with average credit. Keep in mind that not all states allow credit-based insurance scores to be used as a rating factor. California, Hawaii and Massachusetts ban the practice entirely, while other states put some limits on the use of credit in insurance underwriting. Check your state’s laws or speak with an insurance agent to determine how your credit history might affect your car insurance premium.
|
|
|
|
|
|
|---|---|---|---|---|
|
$2,871
|
$1,477
|
$1,242
|
$850
|
|
|
$1,458
|
$610
|
$496
|
$346
|
|
|
$1,509
|
$837
|
$722
|
$542
|
|
|
$879
|
$623
|
$580
|
$529
|
|
|
$950
|
$630
|
$594
|
$529
|
|
|
|
|
|
|
|---|---|---|---|---|
|
$8,815
|
$4,541
|
$3,869
|
$2,698
|
|
|
$5,607
|
$2,191
|
$1,808
|
$1,252
|
|
|
$4,650
|
$2,519
|
$2,191
|
$1,654
|
|
|
$3,229
|
$2,317
|
$2,171
|
$1,976
|
|
|
$3,612
|
$2,203
|
$2,059
|
$1,818
|
Bankrate’s take: Our proprietary data shows that drivers with poor credit may pay similar premiums to those with a DUI conviction. If you have significantly improved your credit score, you may want to contact your insurance provider and ask them to re-evaluate your policy — you may find substantial savings.
The cheapest car insurance company for new drivers: Geico
Age plays a major role when it comes to car insurance rates (except in Hawaii and Massachusetts, where age is not a permitted rating factor). Young drivers pay some of the highest average premiums due to their inexperience, but some companies offer cheaper car insurance for young drivers than others. For minimum coverage, Geico might be a good cheap option.
| Insurance company | Cheapest company | Average annual rate | Average monthly rate |
|---|---|---|---|
| Geico | $1,346 | $112 | |
| Geico | $1,230 | $102 | |
| Auto-Owners | $1,544 | $129 | |
| Auto-Owners | $1,311 | $109 | |
| Auto-Owners | $1,139 | $95 | |
| Geico | $920 | $77 | |
| Geico | $920 | $69 | |
| Geico | $769 | $64 | |
| Geico | $735 | $61 | |
| Geico | $674 | $56 |
*Rates reflect 16- and 17-year-old drivers added to their parents’ policy with the driver’s training and good student discounts applied.
| Insurance company | Cheapest company | Average annual rate | Average monthly rate |
|---|---|---|---|
| Nationwide | $4,012 | $334 | |
| Nationwide | $3,628 | $302 | |
| Erie | $4,760 | $397 | |
| Erie | $4,185 | $349 | |
| Erie | $3,845 | $320 | |
| Erie | $3,718 | $310 | |
| Geico | $3,070 | $256 | |
| Geico | $2,868 | $239 | |
| Erie | $2,825 | $235 | |
| Geico | $2,519 | $210 |
*Rates reflect 16- and 17-year-old drivers added to their parents’ policy with the driver’s training and good student discounts applied.
Bankrate’s take: Our data from Quadrant Information Services indicates that an 18-year-old with their own full coverage car insurance policy pays an average of 59 percent more than an 18-year-old who remains on their parents’ insurance. If your teen or young adult still lives at home, consider keeping everyone together on a family policy to help them save money.
The cheapest car insurance company for senior drivers: Auto-Owners
Rates can begin to creep upward as you age, especially when you reach your 70s. That’s because some age-related health issues, like poor eyesight and delayed reaction time, can increase the risk of accidents and lead to more serious injuries. In addition, older drivers tend to have a longer recovery time and are more prone to medical complications following an accident. Don’t worry, though; average rates for senior drivers with clean driving records are still far lower than they are for teen drivers. Based on our research, Auto-Owners offers some of the cheapest car insurance for senior drivers.
| Insurance company | Cheapest company | Average annual rate | Average monthly rate |
|---|---|---|---|
| Auto-Owners | $471 | $39 | |
| Auto-Owners | $478 | $40 | |
| Auto-Owners | $585 | $49 |
| Insurance company | Cheapest company | Average annual rate | Average monthly rate |
|---|---|---|---|
| Auto-Owners | $1,705 | $142 | |
| Nationwide | $1,777 | $148 | |
| Auto-Owners | $1,864 | $155 |
Bankrate’s take: Many insurance companies offer a senior defensive driver discount for drivers 55 and over if they complete an approved defensive driving course online or in person. Availability and percentage saved from this discount varies between states and carriers.
What are the best cheap car insurance companies?
We know drivers looking for the cheapest car insurance policy often opt for minimum coverage, so we kept low average minimum coverage rates at the forefront of our reviews. However, our insurance editorial team took care to avoid sacrificing quality. Although the companies below offer some of the cheapest minimum coverage premiums, they also stand out for their customer service, digital tools and discount opportunities, qualifying them for Bankrate’s list of the best cheap car insurance companies.
The top 5 cheap car insurance companies in 2025
Bankrate Score
Avg. monthly premium
Min. coverage
Avg. annual premium
Min. coverage
Avg. annual savings
Auto-Owners
Why Auto-Owners made our list: Auto-Owners has one of the lowest average minimum coverage premiums on our list and also offers numerous add-on options to help you personalize your coverage. Its high J.D. Power score suggests quality service, and its AM Best rating indicates a strong ability to pay out customer claims. If you live in one of the 26 states where Auto-Owners writes car insurance policies, it may be worth getting a quote.
Why Auto-Owners may be the cheapest overall: Based on our analysis, Auto-Owners has the cheapest average minimum coverage premium for drivers with clean driving records and good credit. This regional carrier also offers cheap average rates across a variety of other driving profiles. Auto-Owners won the 2025 Bankrate Awards for Best Auto Insurance Company For Young Drivers and Best Budget Auto Insurance Company.
| Bankrate Score | 4.3 |
| J.D. Power | 692/1,000 |
| AM Best Rating | A++ |
| States covered | 26 states |
Bankrate Score
Avg. monthly premium
Min. coverage
Avg. annual premium
Min. coverage
Avg. annual savings
USAA
| Bankrate Score | 4.3 |
| J.D. Power | 726/1,000 |
| AM Best Rating | A++ |
| States covered | All 50 states, plus Washington, D.C. |
Bankrate Score
Avg. monthly premium
Min. coverage
Avg. annual premium
Min. coverage
Avg. annual savings
Geico
Why Geico made our list: With nationwide availability, low average rates and a wide variety of discounts, Geico, the second-largest U.S. auto insurer by market share, might help you save money no matter where you live. Geico swept multiple categories in the 2024 Bankrate Awards, winning an award for Best Auto Insurance Company Overall (tied with Amica), Best Budget Auto Insurance Company (tied with Auto-Owners) and Best for Young Drivers. It also made our 2025 awards list for the Best Auto Insurance Company for High-Risk Drivers.
Why Geico may be cheapest for poor credit scores: Drivers with poor credit scores tend to receive less favorable auto insurance rates, but Geico may be able to help. According to our research and rate data from Quadrant Information Services, Geico’s average annual minimum coverage premium for drivers with poor credit is over $100 cheaper than the next cheapest company we analyzed.
| Bankrate Score | 4.3 |
| J.D. Power | 692/1,000 |
| AM Best Rating | A++ |
| States covered | All 50 states, plus Washington, D.C. |
Bankrate Score
Avg. monthly premium
Min. coverage
Avg. annual premium
Min. coverage
Avg. annual savings
Amica
Why Amica made our list: With a low average minimum coverage premium and high claims and customer satisfaction scores, Amica could be a great option for those looking for cheap automobile insurance and solid service. Amica took home 2024 and 2025 Bankrate Awards for Best Auto Insurance Company Overall (tie) and Best for Customer Experience.
Why Amica may be cheapest for stellar service: Amica is rated near the top of J.D. Power’s claims satisfaction study and also offers low average rates across a variety of profiles. Auto claims can be filed in numerous ways, including through an online account, via Amica’s online chat feature, by phone or on the Amica mobile app. You can learn more about Amica by calling 1-800-242-6422 or visiting www.amica.com.| Bankrate Score | 4.4 |
| J.D. Power | 746/1,000 |
| AM Best Rating | A+ |
| States covered | All 50 states except for Hawaii |
Bankrate Score
Avg. monthly premium
Min. coverage
Avg. annual premium
Min. coverage
Avg. annual savings
State Farm
Why State Farm made our list: State Farm (the largest insurance company in the U.S. by market share) does business through an extensive, nationwide network of brick-and-mortar agencies. For tech-savvy drivers, the company offers a highly-rated mobile app and online portal; no matter your preference, there are multiple ways to handle your State Farm policy. Additionally, State Farm offers cheap average rates among the companies we studied, and the company’s many discount opportunities might help you save even more.
Why State Farm may be cheapest for local offices: State Farm has a network of over 19,000 agents located in all 50 states and Washington, D.C, and according to our research of average premiums provided by Quadrant Information Services, the company consistently offers some of the lowest rates for many types of drivers. In fact, these factors helped State Farm earn the 2025 Bankrate Award for Best Auto Insurance Company for Safe Drivers.
| Bankrate Score | 4.3 |
| J.D. Power | 710/1,000 |
| AM Best Rating | A++ |
| States covered | All 50 states except for Hawaii |
Why you can trust Bankrate's picks for cheapest insurers
Read our full methodologyThere’s a lot of information out there, and unless you’re already versed in the subject, it can be difficult to decipher what information available online is reliable when researching insurance. After all, your policy is full of contractual language and stipulations, and every company and policy is different. Bankrate can help. Our insurance team includes licensed agents, and we have decades of combined real-world industry experience helping policyholders make wise decisions about their coverage. We know that while it’s sometimes overlooked or misunderstood, insurance is essential in providing peace of mind and financial protection. We also understand the importance of making every dollar count, especially in today’s market of record-high inflation.
46
years of industry expertise
122
carriers reviewed
34.5K
ZIP codes examined
1.2M
quotes analyzed
The cheapest car insurance companies by state
The cheapest car insurance depends on your individual circumstances, and each state has different insurance regulations. Your state’s minimum required levels of coverage are all you need to drive legally, but most insurance experts recommend opting for additional coverage to offer more financial protection in case of an accident.
Additionally, if you have a loan or lease on your vehicle, you will most likely be required to carry full coverage as a condition of your finance or lease agreement. Determining how much coverage you need involves a review of your broader financial picture. However, the following rate information may be useful for the sake of comparison.
|
|
|
|
|---|---|---|
|
Cheapest company
American Independent
|
Avg. annual premium*
$291
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$256
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$424
|
|
|
Cheapest company
The Hanover
|
Avg. annual premium*
$318
|
|
|
Cheapest company
CSAA
|
Avg. annual premium*
$506
|
|
|
Cheapest company
American National
|
Avg. annual premium*
$253
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$548
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$563
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$922
|
|
|
Cheapest company
Auto-Owners
|
Avg. annual premium*
$699
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$280
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$209
|
|
|
Cheapest company
Secura
|
Avg. annual premium*
$363
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$313
|
|
|
Cheapest company
Grange Insurance
|
Avg. annual premium*
$196
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$353
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$459
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$549
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$280
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$717
|
|
|
Cheapest company
Vermont Mutual
|
Avg. annual premium*
$274
|
|
|
Cheapest company
Wolverine Mutual
|
Avg. annual premium*
$307
|
|
|
Cheapest company
North Star Mutual
|
Avg. annual premium*
$429
|
|
|
Cheapest company
State Farm
|
Avg. annual premium*
$389
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$344
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$234
|
|
|
Cheapest company
North Star Mutual
|
Avg. annual premium*
$351
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$374
|
|
|
Cheapest company
The Hanover
|
Avg. annual premium*
$255
|
|
|
Cheapest company
Plymouth Rock
|
Avg. annual premium*
$736
|
|
|
Cheapest company
Central Mutual
|
Avg. annual premium*
$240
|
|
|
Cheapest company
Main Street America
|
Avg. annual premium*
$606
|
|
|
Cheapest company
State Farm
|
Avg. annual premium*
$387
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$238
|
|
|
Cheapest company
Central Mutual
|
Avg. annual premium*
$294
|
|
|
Cheapest company
American Farmers & Ranchers Mutual
|
Avg. annual premium*
$293
|
|
|
Cheapest company
Oregon Mutual
|
Avg. annual premium*
$510
|
|
|
Cheapest company
Auto-Owners
|
Avg. annual premium*
$151
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$85
|
|
|
Cheapest company
American National
|
Avg. annual premium*
$274
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$227
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$284
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$485
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$429
|
|
|
Cheapest company
Union Mutual
|
Avg. annual premium*
$162
|
|
|
Cheapest company
Countryway
|
Avg. annual premium*
$377
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$336
|
|
|
Cheapest company
Westfield
|
Avg. annual premium*
$353
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$218
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$175
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$418
|
|
|
|
|
|---|---|---|
|
Cheapest company
Travelers
|
Avg. annual premium*
$1,255
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$1,462
|
|
|
Cheapest company
Travelers
|
Avg. annual premium*
$1,485
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,674
|
|
|
Cheapest company
Kemper
|
Avg. annual premium*
$1,994
|
|
|
Cheapest company
American National
|
Avg. annual premium*
$1,505
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,637
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,821
|
|
|
Cheapest company
State Farm
|
Avg. annual premium*
$3,094
|
|
|
Cheapest company
Auto-Owners
|
Avg. annual premium*
$2,165
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,254
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$781
|
|
|
Cheapest company
Secura
|
Avg. annual premium*
$1,092
|
|
|
Cheapest company
Hastings Mutual
|
Avg. annual premium*
$1,017
|
|
|
Cheapest company
Hastings Mutual
|
Avg. annual premium*
$926
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,634
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,686
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$3,094
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$982
|
|
|
Cheapest company
Nationwide
|
Avg. annual premium*
$1,457
|
|
|
Cheapest company
Plymouth Rock
|
Avg. annual premium*
$1,268
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$1,575
|
|
|
Cheapest company
Allied
|
Avg. annual premium*
$1,463
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,735
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$1,462
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,311
|
|
|
Cheapest company
Auto-Owners
|
Avg. annual premium*
$1,475
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$1,512
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,043
|
|
|
Cheapest company
Travelers
|
Avg. annual premium*
$1,736
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$1,535
|
|
|
Cheapest company
Main Street America
|
Avg. annual premium*
$1,707
|
|
|
Cheapest company
State Farm
|
Avg. annual premium*
$1,194
|
|
|
Cheapest company
Allied
|
Avg. annual premium*
$927
|
|
|
Cheapest company
Hastings Mutual
|
Avg. annual premium*
$1,073
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,797
|
|
|
Cheapest company
Oregon Mutual
|
Avg. annual premium*
$1,096
|
|
|
Cheapest company
Auto-Owners
|
Avg. annual premium*
$756
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$270
|
|
|
Cheapest company
American National
|
Avg. annual premium*
$830
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,791
|
|
|
Cheapest company
Travelers
|
Avg. annual premium*
$1,287
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,789
|
|
|
Cheapest company
Nationwide
|
Avg. annual premium*
$1,158
|
|
|
Cheapest company
Union Mutual
|
Avg. annual premium*
$756
|
|
|
Cheapest company
Nationwide
|
Avg. annual premium*
$1,059
|
|
|
Cheapest company
Oregon Mutual
|
Avg. annual premium*
$1,082
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,601
|
|
|
Cheapest company
Travelers
|
Avg. annual premium*
$973
|
|
|
Cheapest company
State Farm
|
Avg. annual premium*
$1,366
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,308
|
How to get cheaper car insurance
Car insurance prices aren’t getting any cheaper, but that doesn’t mean you have to settle for overpaying. Whether you're a new driver or just looking to cut costs, there are ways to lower your premium without giving up the coverage you need. Here are a few strategies to help keep your rates in check:
- Shop around and compare quotes: Every insurer calculates risk differently, so the same coverage can come with a very different price tag depending on the company. Get quotes from multiple providers and make sure you're comparing identical coverage levels.
- Figure out what matters most to you: Some companies offer deep discounts for good students, while others give better deals for bundling home and auto policies or using a telematics program. If you prefer a local agent or a company with strong customer service, that’s worth factoring in, too.
- Adjust your coverage wisely: If your car is older and paid off, you might not need comprehensive or collision coverage. On the other hand, if you have a newer or financed vehicle, full coverage is usually the smarter choice.
- Raise your deductible (if feasible): A higher deductible can lower your monthly payment, but remember, you’ll have to cover that amount out of pocket if you file a claim. Only go this route if you have savings set aside.
- Avoid lapses in coverage: Letting your policy expire — even for a few days — can make your rates jump when you sign up again. Always have a new policy lined up before canceling your old one.
- Don’t be afraid to switch providers: Loyalty doesn’t always pay off in car insurance. If your rate keeps climbing, it might be time to see what another company can offer. Checking rates once or twice a year can help you find a better deal.
Save on cheap car insurance with discounts
Insurance companies offer a variety of discounts that can help reduce your costs. Here are some of the most common ways to save:
| Discount type | How to qualify |
|---|---|
| Young driver discounts | Good student, safe driving programs, distant student discounts |
| Affiliation discounts | Memberships in credit unions, professional groups or certain careers (education, medical, government, first responders) |
| Military discounts | Active duty, veterans and sometimes family members may qualify |
| Safe driving discounts | No at-fault accidents, clean driving record, defensive driving courses |
| Telematics discounts | Enroll in insurer’s app-based tracking program for safe driving habits |
| Bundling discounts | Combine auto with home, renters, motorcycle or sometimes even life insurance |
Risks of getting cheap car insurance
Going for the lowest-priced car insurance might seem like a smart way to cut costs, but it often comes with trade-offs that could leave you paying more in the long run. A bargain policy might offer the bare minimum coverage, come with sky-high deductibles or provide lackluster customer service when you need it most. Before locking in the cheapest rate, here’s some things you might want to consider.
| Risk | What It Could Mean for You |
|---|---|
| Only carrying state minimum coverage | If you cause a major accident, your policy might not cover all the damages, leaving you responsible for the rest. |
| Skipping collision and comprehensive coverage | If your car gets stolen or damaged, you’d have to pay for repairs or a replacement out of pocket. |
| Choosing a high deductible | Lower premiums come with trade-offs — can you afford a $2,000 repair bill before insurance kicks in? |
| Poor customer service | Some budget insurers may have slow claims processing, leaving you frustrated when you need help the most. |
| No extra perks | You might lose out on benefits like rental car coverage, roadside assistance or gap insurance. |
Things to consider
- Think about your financial safety net: Could you cover a major expense if your car were totaled or stolen?
- Check reviews before committing: A low premium won’t help if filing a claim isn’t an enjoyable process.
- Look beyond the price tag: Sometimes, paying a little more upfront can save you from big expenses later.
A cheap policy might work for some drivers, but it’s important to make sure you’re not sacrificing too much protection just to save a few bucks. The key is striking a balance between affordability and solid coverage so you’re not left scrambling should the time ever come when you actually need to use your car insurance.
Our industry experts weigh in
To help you pinpoint some extra savings, Bankrate spoke to a few industry experts. We asked them to share one thing they wish more people knew that would help them save money on car insurance.
What is one thing you wish more people knew that would help them save money on car insurance?
Chloe Moore, CFP
Founder, Financial Staples
“In general, a lot of people don’t have enough car insurance coverage. When reviewing car insurance policies for clients, I often see where they have the state minimum coverage and I recommend increasing their coverage limits. In addition to the common ways to save (shopping around, increasing their deductibles and taking advantage of multi-policy discounts), another way to save on car insurance is to reconsider filing small claims. For example, let’s say your deductible is $500 and you have $900 of damage to your vehicle. Or maybe a rock hit your windshield and it needs to be replaced. Consider if it’s worth filing a claim for a few hundred dollars, which can also result in your car insurance increasing for the next two to three years. Thinking about how a claim affects you long-term can prevent unnecessary increases at a time when the cost of car insurance is already going up.”
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze March 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates for our base profile are based on the following characteristics and full coverage limits:
Bodily injury liability
$100,000 per person$300,000 per accident
Property damage liability
$50,000 per accidentPersonal injury protection
$100,000 per accidentUninsured motorist bodily injury
$100,000 per person$300,000 per accident
Collision deductible
$500Comprehensive deductible
$500Other profiles
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. These are sample rates and should only be used for comparative purposes. Your quotes will differ.
Bankrate Scores
Our 2025 Bankrate Score for auto insurance considers key variables that our insurance editorial team determined impact policyholders’ experiences with an insurance company. These factors include a robust assessment of each company’s cost of coverage, product availability, financial strength ratings, online capabilities and customer and claims support accessibility. We grouped these factors into three essential categories — cost and ratings, coverage and savings, and support — which we then weighted in a tiered approach.
Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.
-
Cost & ratings 50%
-
Coverage & savings 30%
-
Support 20%
- Tier 1 (Cost & ratings): To determine how well auto insurance companies satisfy these priorities, our team analyzed quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the National Association of Insurance Commissioners (NAIC).
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated the discount options listed on each company’s website.
- Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored in a company’s corporate sustainability efforts.
