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Cheapest car insurance in July 2024
Bankrate’s analysis found Auto-Owners, USAA and Geico are among the cheapest insurers in the U.S.
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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.
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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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.
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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
The national average for a full coverage car insurance policy is $2,278 per year, and minimum coverage averages $621 per year. However, depending on your rating factors, you could pay more or less than that.
If you’re specifically shopping for the cheapest car insurance company, your quoted rate can seem like the most important factor. While price is largely front of mind when shopping around, it’s only one part of choosing the right insurance for your budget. The vehicle you drive, your driving record, available coverage options and discount selections can all influence which cheap car insurance provider stands apart from the rest as the best insurer for you.
Key takeaways from Bankrate’s cheap car insurance analysis:
- The national average cost of full coverage car insurance is $2,278 per year or $190 per month and minimum coverage is $621 per year or $52 per month.
- Florida has the highest average cost of full coverage car insurance in the country at $3,430 per year, which breaks down to monthly payments of $286.
- Drivers in Vermont pay $1,377 per year for full coverage car insurance — 40 percent less than the national average.
- Shopping with different insurance providers, inquiring about discounts and paring back on non-essential coverage can be a good place to start when seeking cheaper car insurance.
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.
| Insurance company | Clean driving record | One speeding ticket | One at-fault accident | One DUI |
|---|---|---|---|---|
|
$440
|
$514
|
$624
|
$1,079
|
|
|
$561
|
$665
|
$812
|
$1,002
|
|
|
$552
|
$682
|
$792
|
$1,334
|
|
|
$713
|
$872
|
$871
|
$1,962
|
|
|
$827
|
$971
|
$1,098
|
$1,636
|
| Insurance company | Clean driving record | One speeding ticket | One at-fault accident | One DUI |
|---|---|---|---|---|
|
$1,696
|
$1,981
|
$2,272
|
$3,656
|
|
|
$2,016
|
$2,410
|
$2,910
|
$3,621
|
|
|
$1,984
|
$2,464
|
$2,841
|
$4,588
|
|
|
$2,860
|
$3,512
|
$3,416
|
$8,182
|
|
|
$2,624
|
$3,051
|
$3,375
|
$4,762
|
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.
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.
| Insurance Company | Average annual premium | Average monthly premium |
|---|---|---|
|
Union Mutual
|
$151
|
$13
|
|
American National
|
$204
|
$17
|
|
Nodak
|
$205
|
$17
|
|
Integrity Insurance
|
$209
|
$17
|
|
Rural Mutual
|
$218
|
$18
|
| Insurance company | Average annual premium | Average monthly premium |
|---|---|---|
|
Union Mutual
|
$672
|
$56
|
|
American National
|
$929
|
$77
|
|
Kentucky Farm Bureau
|
$932
|
$78
|
|
Hastings Mutual
|
$1,024
|
$85
|
|
MMG
|
$1,061
|
$88
|
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, Massachusetts and Michigan 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.
| Insurance company | Poor credit | Average credit | Good credit | Excellent credit |
|---|---|---|---|---|
|
$1,802
|
$819
|
$713
|
$521
|
|
|
$1,149
|
$532
|
$440
|
$314
|
|
|
$1,518
|
$837
|
$719
|
$534
|
|
|
$819
|
$592
|
$552
|
$503
|
|
|
$957
|
$597
|
$561
|
$498
|
| Insurance company | Poor credit | Average credit | Good credit | Excellent credit |
|---|---|---|---|---|
|
$7,565
|
$3,316
|
$2,860
|
$2,045
|
|
|
$4,587
|
$2,022
|
$1,696
|
$1,212
|
|
|
$4,081
|
$2,197
|
$1,901
|
$1,421
|
|
|
$2,905
|
$2,134
|
$1,984
|
$1,805
|
|
|
$3,800
|
$2,172
|
$2,016
|
$1,773
|
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 | $1,322 | $110 | |
| Geico | $1,191 | $99 | |
| Auto-Owners | $1,428 | $119 | |
| Auto-Owners | $1,154 | $96 | |
| Auto-Owners | $1,008 | $84 | |
| Geico | $875 | $73 | |
| Geico | $875 | $65 | |
| Geico | $715 | $60 | |
| Geico | $698 | $58 | |
| Geico | $643 | $54 |
*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 | $3,983 | $332 | |
| Nationwide | $3,587 | $299 | |
| Erie | $4,273 | $356 | |
| Erie | $3,761 | $313 | |
| Erie | $3,455 | $288 | |
| Erie | $3,288 | $274 | |
| Geico | $2,814 | $235 | |
| Geico | $2,524 | $210 | |
| Erie | $2,456 | $205 | |
| Geico | $2,315 | $193 |
*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. 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 | $426 | $36 | |
| Auto-Owners | $426 | $35 | |
| Auto-Owners | $521 | $43 |
| Insurance company | Cheapest company | Average annual rate | Average monthly rate |
|---|---|---|---|
| Auto-Owners | $1,559 | $130 | |
| Nationwide | $1,731 | $144 | |
| Auto-Owners | $1,717 | $143 |
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 2024
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 also tied with Geico in the 2024 Bankrate Awards for Best Budget Auto Insurance Company.| Bankrate Score | 4.3 |
| J.D. Power | 865/1,000 |
| AM Best score | A++ |
| States covered | 26 states |
Bankrate Score
Avg. monthly premium
Min. coverage
Avg. annual premium
Min. coverage
Avg. annual savings
USAA
| Bankrate Score | 4.2 |
| J.D. Power | 890/1,000 |
| AM Best score | 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.
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 | 4.4 |
| J.D. Power | 874/1,000 |
| AM Best score | 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 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 | 4.6 |
| J.D. Power | 909/1,000 |
| AM Best score | 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 2023 Bankrate Award for best auto insurance company for high-risk drivers.
| Bankrate Score | 4.3 |
| J.D. Power | 882/1,000 |
| AM Best score | 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.
| State | Cheapest company | Avg. annual premium* |
|---|---|---|
|
Cheapest company
Geico
|
Avg. annual premium*
$320
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$263
|
|
|
Cheapest company
Travelers
|
Avg. annual premium*
$437
|
|
|
Cheapest company
The Hanover
|
Avg. annual premium*
$261
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$430
|
|
|
Cheapest company
American National
|
Avg. annual premium*
$225
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$525
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$503
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$937
|
|
|
Cheapest company
Encompass
|
Avg. annual premium*
$514
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$264
|
|
|
Cheapest company
American National
|
Avg. annual premium*
$158
|
|
|
Cheapest company
Mercury
|
Avg. annual premium*
$325
|
|
|
Cheapest company
Auto-Owners
|
Avg. annual premium*
$254
|
|
|
Cheapest company
Progressive
|
Avg. annual premium*
$173
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$344
|
|
|
Cheapest company
Kentucky Farm Bureau
|
Avg. annual premium*
$369
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$512
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$261
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$680
|
|
|
Cheapest company
State Farm
|
Avg. annual premium*
$224
|
|
|
Cheapest company
Wolverine Mutual
|
Avg. annual premium*
$273
|
|
|
Cheapest company
North Star Mutual
|
Avg. annual premium*
$379
|
|
|
Cheapest company
State Farm
|
Avg. annual premium*
$353
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$310
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$207
|
|
|
Cheapest company
North Star Mutual
|
Avg. annual premium*
$308
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$347
|
|
|
Cheapest company
MMG
|
Avg. annual premium*
$239
|
|
|
Cheapest company
Selective
|
Avg. annual premium*
$420
|
|
|
Cheapest company
Central Mutual
|
Avg. annual premium*
$228
|
|
|
Cheapest company
Main Street America
|
Avg. annual premium*
$545
|
|
|
Cheapest company
State Farm
|
Avg. annual premium*
$325
|
|
|
Cheapest company
Nodak
|
Avg. annual premium*
$205
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$268
|
|
|
Cheapest company
American Farmers & Ranchers Mutual
|
Avg. annual premium*
$322
|
|
|
Cheapest company
California Casualty
|
Avg. annual premium*
$490
|
|
|
Cheapest company
Auto-Owners
|
Avg. annual premium*
$333
|
|
|
Cheapest company
State Farm
|
Avg. annual premium*
$506
|
|
|
Cheapest company
American National
|
Avg. annual premium*
$198
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$218
|
|
|
Cheapest company
Tennessee Farmers Mutual
|
Avg. annual premium*
$284
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$469
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$404
|
|
|
Cheapest company
Union Mutual
|
Avg. annual premium*
$151
|
|
|
Cheapest company
Travelers
|
Avg. annual premium*
$358
|
|
|
Cheapest company
PEMCO
|
Avg. annual premium*
$306
|
|
|
Cheapest company
Westfield
|
Avg. annual premium*
$312
|
|
|
Cheapest company
Rural Mutual
|
Avg. annual premium*
$218
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$176
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$436
|
| State | Cheapest company | Avg. annual premium* |
|---|---|---|
|
Cheapest company
Travelers
|
Avg. annual premium*
$1,338
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$1,384
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$1,397
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,357
|
|
|
Cheapest company
Kemper
|
Avg. annual premium*
$1,996
|
|
|
Cheapest company
American National
|
Avg. annual premium*
$1,263
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$1,612
|
|
|
Cheapest company
Travelers
|
Avg. annual premium*
$1,400
|
|
|
Cheapest company
Progressive
|
Avg. annual premium*
$2,792
|
|
|
Cheapest company
Esurance
|
Avg. annual premium*
$1,812
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,173
|
|
|
Cheapest company
American National
|
Avg. annual premium*
$805
|
|
|
Cheapest company
Hastings Mutual
|
Avg. annual premium*
$1,056
|
|
|
Cheapest company
Hastings Mutual
|
Avg. annual premium*
$803
|
|
|
Cheapest company
Hastings Mutual
|
Avg. annual premium*
$704
|
|
|
Cheapest company
Encompass
|
Avg. annual premium*
$1,637
|
|
|
Cheapest company
Kentucky Farm Bureau
|
Avg. annual premium*
$932
|
|
|
Cheapest company
Southern Farm Bureau
|
Avg. annual premium*
$2,723
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$960
|
|
|
Cheapest company
Nationwide
|
Avg. annual premium*
$1,508
|
|
|
Cheapest company
State Farm
|
Avg. annual premium*
$747
|
|
|
Cheapest company
Hastings Mutual
|
Avg. annual premium*
$1,438
|
|
|
Cheapest company
AAA
|
Avg. annual premium*
$1,504
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,756
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,475
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,284
|
|
|
Cheapest company
Auto-Owners
|
Avg. annual premium*
$1,311
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$1,355
|
|
|
Cheapest company
MMG
|
Avg. annual premium*
$981
|
|
|
Cheapest company
Farmers
|
Avg. annual premium*
$1,436
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,429
|
|
|
Cheapest company
Main Street America
|
Avg. annual premium*
$1,432
|
|
|
Cheapest company
State Farm
|
Avg. annual premium*
$980
|
|
|
Cheapest company
American Family
|
Avg. annual premium*
$1,011
|
|
|
Cheapest company
Hastings Mutual
|
Avg. annual premium*
$833
|
|
|
Cheapest company
American Farmers & Ranchers Mutual
|
Avg. annual premium*
$1,694
|
|
|
Cheapest company
Oregon Mutual
|
Avg. annual premium*
$1,052
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$1,356
|
|
|
Cheapest company
State Farm
|
Avg. annual premium*
$1,718
|
|
|
Cheapest company
American National
|
Avg. annual premium*
$596
|
|
|
Cheapest company
Allstate
|
Avg. annual premium*
$1,822
|
|
|
Cheapest company
Tennessee Farmers Mutual
|
Avg. annual premium*
$1,267
|
|
|
Cheapest company
Geico
|
Avg. annual premium*
$1,743
|
|
|
Cheapest company
Nationwide
|
Avg. annual premium*
$1,282
|
|
|
Cheapest company
Union Mutual
|
Avg. annual premium*
$672
|
|
|
Cheapest company
Nationwide
|
Avg. annual premium*
$1,032
|
|
|
Cheapest company
Capital
|
Avg. annual premium*
$990
|
|
|
Cheapest company
Encompass
|
Avg. annual premium*
$1,333
|
|
|
Cheapest company
Travelers
|
Avg. annual premium*
$1,036
|
|
|
Cheapest company
State Farm
|
Avg. annual premium*
$1,315
|
|
|
Cheapest company
USAA
|
Avg. annual premium*
$1,324
|
How to get cheap car insurance
Shopping for auto insurance can feel like a chore, so you might be tempted to opt for the lowest coverage option available to you and take the first quote that fits your budget. But there’s more you can do to reduce your car insurance costs while still ensuring that you have the financial protections you need. Researching companies, talking to an agent about your coverage needs and understanding the strengths and weaknesses of your individual risk profile can help you lock in an affordable policy that balances cost and coverage. Here are a few steps to take when shopping for cheap auto coverage:
- Define your priorities: Before you begin gathering quotes, take a moment to identify your insurance priorities. Some drivers may need a company that offers lower rates for poor credit scores, while others are willing to pay a little more for top-notch customer service and added perks. Some drivers may prefer to manage their policy in person, while others prefer a robust app or website. Knowing what you need ahead of time can help streamline the quoting process.
- Research companies: Once you pinpoint the primary things you need in an insurance company, you can use Bankrate’s list of cheapest providers to seek out the best cheap car insurance companies known to offer competitive rates for your specific situation.
- Compare identical quotes: Always request quotes from multiple companies — and be sure that you’re getting quotes for the same coverage. If you have an existing policy, you can use your current declarations page to guide your coverage selections for a direct rate comparison.
- Ask about discounts: Discount opportunities vary between insurance companies, and some have more stringent eligibility requirements than others. It may be a good idea to ask the company to do a full discount review to ensure you take advantage of all possible savings.
- Avoid a lapse in coverage: In most states, a lapse in coverage can cause your premiums to increase. Car insurance companies generally regard those with lapses as less financially stable and more likely to file a claim — and typically reflect this increased risk with a higher premium. Be sure to schedule your new policy to start before your existing coverage expires to avoid that coverage gap. Enrolling your policy into automatic payments, or paying your policy in full rather than installments, might help you avoid a lapse which, over time, can help keep your premium down. As an added bonus, automatic payments may help you avoid unnecessary service fees.
Save on cheap car insurance with discounts
If you want to qualify for more car insurance discounts, you can start by looking at precisely which discounts your provider offers and determine which ones you may have missed out on when signing up for your policy. For example, if you did not disclose that you were a military member when you opened your policy, you may have missed out on a military discount.
Payment-related discounts are another common offering that you may have missed when signing up for your policy. Opting for paperless billing or paying your premium in full might also help you save some money. Once you have a better idea of how many discounts your current provider offers, you can see which ones you can take actionable steps to qualify for. Below are some options to consider.
Risks of getting cheap car insurance
Since car insurance rates are at an all-time high, many drivers are seeking ways to secure a more affordable car insurance policy. Price matters, but there are risks associated with purchasing bare-bones coverage.
Before reducing your policy to state minimum liability coverage, take stock of your financial situation. Consider the amount of money you have in savings, your other assets and your ability to pay high out-of-pocket expenses should an accident occur. While removing optional coverage like roadside assistance and rental reimbursement could be a lower-risk way to save money on premiums, removing collision and comprehensive coverage (aka full coverage) might be more of a gamble. Can you afford to repair or replace your vehicle if it’s damaged, totaled or stolen? If the answer is no and you rely on your vehicle for work or family obligations, then you may need full coverage more than you think.
Also, keep in mind that quality customer service and an experienced agent can make a difference. An insurance company with cheap policies but poor claims payment history may not be in your best interest. Checking company reviews online and doing some consumer research — like reading about the companies named The Best in Car Insurance in the 2024 Bankrate Awards — can help you find a balance of cheap premiums and quality coverage.
To learn more, Bankrate’s car insurance guide details these coverage types in detail.
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 July 2024 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 are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Credit-based insurance scores: These rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.
Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.
Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.Bankrate Scores
Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
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%
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Support 20%
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average 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 NAIC, were analyzed.
- 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 each company’s discount options listed on its 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 a company’s corporate sustainability efforts.
