Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager Chris Harrigan

UPDATED: Mar 12, 2022

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Key Takeaways

  • USAA has the cheapest car insurance company in the United States
  • Erie Insurance and Farm Bureau provide affordable car insurance in some states
  • Metromile and Root Insurance provide pay-per-mile car insurance

Locating the most affordable car insurance company isn’t as difficult as it seems. You can get cheap car insurance quotes, but you have to shop with the right companies.

So, which insurance companies have affordable auto insurance? Don’t worry – we’re here to show you which companies provide cheap insurance rates.

Read our guide to learn about the top 10 cheapest car insurance companies in America and how you can secure low rates.

If you’re ready to compare the cheapest auto insurance companies, enter your ZIP code in the free online quote tool to compare multiple insurance companies in your area.

What’s the cheapest auto insurance company?

The most affordable car insurance company varies by state, but USAA is one of the cheapest insurance companies overall. However, USAA auto insurance is only available to active and retired members of the U.S. Armed Forces and their immediate families.

So, which company is cheapest for most people in America? Let’s look at a table that shows the cheapest car insurance companies by state.

Most Affordable Car Insurance by State
StateCheapest companyMinimum Requirement Car Insurance Rates
AlabamaGEICO$22
AlaskaGEICO$23
ArizonaGEICO$23
ArkansasSouthern Farm Bureau Insurance$22
CaliforniaGEICO$31
ColoradoAmerican National$16
ConnecticutGEICO$35
DelawareGEICO$47
FloridaGEICO$59
GeorgiaAuto-Owners$26
HawaiiGEICO$24
IdahoAmerican National$11
IllinoisPekin$20
IndianaPekin$16
IowaWestern National$14
KansasState Farm$27
KentuckyKentucky Farm Bureau$32
LouisianaGEICO$37
MaineGEICO$15
MarylandGEICO$47
MassachusettsState Farm$17
MichiganTravelers$9
MinnesotaNorth Star$22
MississippiState Farm$28
MissouriColumbia$24
MontanaState Farm$18
NebraskaEMC$15
NevadaGEICO$27
New HampshireMMG$17
New JerseyAmica$45
New MexicoCentral Insurance$19
New YorkMain Street America$48
North CarolinaGEICO$23
North DakotaNodak$15
OhioErie$18
OklahomaGEICO$21
OregonState Farm$37
PennsylvaniaGEICO$15
Rhode IslandState Farm$26
South CarolinaAmerican National$18
South DakotaFarmers Mutual of Nebraska$14
TennesseeGrange Insurance Company$16
TexasGEICO$31
UtahGEICO$25
VermontUnion Mutual$15
VirginiaGEICO$25
WashingtonGrange Insurance Association$27
Washington, D.C.GEICO$31
West VirginiaErie$25
WisconsinGEICO$17
WyomingGEICO$14
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GEICO has also become one of the cheapest insurance companies in the United States. Other states have smaller companies as the most affordable, like Erie Insurance.

Overall, the cheapest company in each state is lower than the average. However, you can only get dirt cheap car insurance when you get liability-only coverage, the minimum coverage requirement.

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What are the top 10 cheapest car insurance companies for full coverage?

If you’re not sure where to get cheap insurance, start with the top 10 insurance companies in the United States. Here’s a quick look at the average monthly rates from America’s leading car insurance companies.

Monthly Car Insurance Rates by Company
CompaniesMonthly Car Insurance Rates
Allstate$318
American Family$224
Farmers$288
GEICO$179
Liberty Mutual$398
Nationwide$229
Progressive$283
State Farm$235
Travelers$287
USAA$161
National Average$260
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USAA has the most affordable insurance, but GEICO is the cheapest for all other drivers in the United States, followed by American Family and Nationwide.

However, your rates could vary. The most affordable auto insurance companies determine your rates using several factors. Those factors include your age and driving record.

Check out the subsections below to see how various factors affect car insurance rates.

Which insurance company is the cheapest by age?

One of the most significant factors is age. Teen drivers usually pay expensive rates, but how much is insurance for senior drivers? Let’s see how age affects insurance rates.

CompaniesMonthly Car Insurance Rates of a Single 17-Year-Old FemaleMonthly Car Insurance Rates of a Single 17-Year-Old MaleMonthly Car Insurance Rates of a Single 25-Year-Old FemaleMonthly Car Insurance Rates of a Single 25-Year-Old MaleMonthly Car Insurance Rates of a Married 35-Year-Old FemaleMonthly Car Insurance Rates of a Married 35-Year-Old MaleMonthly Car Insurance Rates of a Married 60-Year-Old FemaleMonthly Car Insurance Rates of a Married 60-Year-Old Male
USAA$401$449$166$177$129$128$121$121
State Farm$496$610$195$213$173$173$156$156
Travelers$776$1,071$194$208$182$183$171$173
American Family$500$678$191$225$184$185$166$168
Progressive$724$802$225$230$191$181$166$171
GEICO$471$523$198$189$192$193$187$190
Nationwide$480$598$224$241$197$199$178$185
Farmers$710$762$246$253$213$213$195$204
Allstate$774$887$285$298$263$260$243$249
Liberty Mutual$968$1,143$330$375$317$321$287$307
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Younger drivers pay at least three times more for car insurance, but drivers 25 and older pay significantly less than teens. Female drivers have cheaper car insurance rates, but male drivers have more expensive rates.

Drivers between 16 and 24 correlate to higher risks of filing car insurance claims, but drivers over 25 have cheaper insurance rates.

Which car insurance company is the most affordable by credit history?

Did you know your credit history affects your insurance rates? Car insurance companies provide more affordable rates with good credit, but poor credit produces more expensive rates.

How does credit history affect the top insurance companies in the nation?

Average Monthly Car Insurance Rates Based on Credit by Company
CompaniesMonthly Car Insurance Rates Based on Good CreditMonthly Car Insurance Rates Based on Fair CreditMonthly Car Insurance Rates Based on Poor Credit
USAA$152$185$308
State Farm$181$238$413
GEICO$203$249$355
American Family$224$264$372
Nationwide$244$271$340
Progressive$302$330$395
Farmers$306$325$405
Allstate$322$382$541
Travelers$338$362$430
Liberty Mutual$366$467$734
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The most affordable insurance company for drivers with poor credit is Nationwide. State Farm car insurance is the cheapest for people with good and fair credit.

Does coverage limit affect the insurance rates?

Yes, it does. Higher coverage limits — or the maximum amount of money insured by a policy — result in higher rates for car insurance.

Let’s examine how coverage limits impact insurance rates at the best companies.

CompaniesLow Coverage Level (Minimum Coverage Limit)Medium Coverage Level (50/100/50)High Coverage Level (100/300/100)
USAA$200$212$222
GEICO$250$268$286
State Farm$255$272$288
American Family$281$295$285
Nationwide$283$287$292
Progressive$311$335$363
Farmers$327$347$375
Travelers$352$372$385
Allstate$386$408$428
Liberty Mutual$484$505$530
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Average Monthly Car Insurance Rates Based on Coverage Level by Company

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GEICO is one of the cheapest companies for low and medium coverage limits. Meanwhile, American Family is the most affordable company for high coverage limits.

What insurance company has the cheapest rates by driving record?

The most effective way to get affordable car insurance is to keep a clean driving record. Speeding tickets, DUIs, and accidents can raise your rates.

Let’s review how traffic violations impact insurance rates at the top companies.

Average Monthly Car Insurance Rates Based on Driving Record by Company
CompaniesMonthly Car Insurance Rates Based on a Clean Driving RecordMonthly Car Insurance Rates With One Speeding TicketMonthly Car Insurance Rates With One AccidentMonthly Car Insurance Rates With One DUI
USAA$161$183$210$292
GEICO$179$220$266$406
American Family$224$252$310$361
Nationwide$229$259$283$379
State Farm$235$266$283$303
Progressive$283$334$398$331
Travelers$287$355$357$478
Farmers$288$340$377$393
Allstate$318$374$416$522
Liberty Mutual$398$475$517$634
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DUIs and accidents generate the most expensive increases in car insurance. Speeding tickets don’t affect car insurance rates as much, but multiple speeding infractions can significantly raise rates.

Which smaller insurance companies provide more affordable rates?

Sometimes the best companies aren’t the cheapest. You can secure low prices at some of the small car insurance companies.

Let’s look at three insurance companies that provide cheap monthly rates.

Comparing Full Coverage vs, Liability-Only Car Insurance Rates by Small Car Insurance Company
CompaniesFull Coverage Car Insurance RatesLiability-Only Car Insurance Rates
Erie Insurance$115$42
Farm Bureau$131$39
Auto-Owners$132$40
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Erie Insurance rates are the cheapest and more affordable than the USAA average. However, Erie Insurance isn’t available all over the United States. The Farm Bureau also provides the cheapest liability insurance rates.

Is pay-per-mile car insurance more affordable?

It depends on how much you drive. This type of insurance is known as pay-as-you-drive insurance. Metromile and Root Insurance could be cheaper for drivers, but they’ll have to limit their miles.

If you’ve searched for the “cheapest car insurance near me” online, you may have seen companies like Metromile or Root Insurance. These two companies provide coverage based on the number of miles you drive.

How do you get cheaper insurance rates with discounts?

You’ll see discounts added to your car insurance policy when you finish up your quote. If you have good credit and a clean driving record, you can save up to 30% on car insurance.

Bundling your car insurance with other insurance products can save you an additional 10% and safety features on a car can provide at least 5%.

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Cheapest Auto Insurance: The Bottom Line

Cheap car insurance varies by state, driving record, age, credit, and other factors. Therefore, your rates will differ when you get a quote.

Expensive rates are associated with higher chances of filing insurance claims. However, you should shop around until you find a company that provides cheap rates.

Now that you know more about the cheapest car insurance companies, use our free online quote tool to compare quotes from multiple companies near you.