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Cheapest car insurance in September 2023
The cheapest car insurance companies nationally include Auto-Owners, USAA and Geico, which offer average minimum coverage rates less than $375 per year.
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What To Know First
To help you find the cheapest car insurance company for your needs, we conducted a data-driven study using a mix of proprietary rate information and other key metrics. Our real-world insurance expertise, coupled with premium data from Quadrant Information Services, allows us to highlight the carriers that not only offer some of the most affordable car insurance policies, but receive high third-party rankings for financial strength, customer satisfaction and more. According to our findings, the companies below may offer you the cheapest premiums based on a variety of situations.
- With an average minimum coverage premium of $325 per year, the cheapest car insurance company overall is Auto-Owners
- Cheapest car insurance for military-focused coverage: USAA
- Cheapest car insurance company for poor credit scores: Geico
- Cheapest car insurance company with great customer service: Amica
- Cheapest car insurance company for local offices: State Farm
- Cheapest car insurance for new drivers: Geico and Erie
- Cheapest car insurance for seniors: Auto-Owners
Cheapest insurance providers in
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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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The rates above are based on a single driver with a Toyota Camry, no accidents, and good credit. Answer a few questions about what you drive and how you drive it and get a personalized set of rates that are ready to buy if you are.
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 $2,014 per year, and minimum coverage averages $622 per year. However, depending on your rating factors, you could pay more or less than that.
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 research. 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 2023
Bankrate score
Avg. monthly premium*
Avg. annual premium*
Avg. annual savings*
Auto-Owners
Bankrate Score | 4.2 |
J.D. Power | 865/1,000 |
AM Best score | A++ |
States covered | 26 states |

Bankrate score
Avg monthly premium*
Avg annual premium*
Avg. annual savings*
USAA
Bankrate Score | 4.3 |
J.D. Power | 890/1,000 |
AM Best score | A++ |
States covered | All 50 states, plus Washington, D.C. |
Bankrate score
Avg monthly premium*
Avg annual premium*
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 was also awarded two 2023 Bankrate Awards for best overall auto insurance company (tied with Amica) and best budget auto insurance company.
Why Geico may be cheapest for poor credit scores: According to our research, 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*
Avg annual premium*
Avg. annual savings*
Amica
Bankrate Score | 4.4 |
J.D. Power | 903/1,000 |
AM Best score | A+ |
States covered | All 50 states except for Hawaii |
Bankrate score
Avg monthly premium*
Avg annual premium*
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 many different 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 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 | 4.2 |
J.D. Power | 882/1,000 |
AM Best score | A++ |
States covered | All 50 states except for Hawaii |
*quotes rates are for minimum coverage policies
Why you can trust Bankrate's picks for cheapest insurers
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.
Compare the cheapest car insurance companies
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.
The cheapest car insurance from smaller companies: Union Mutual
Insurance company | Average annual rate | Average monthly rate |
---|---|---|
Union Mutual | $154 | $13 |
Nodak Insurance Company | $156 | $13 |
American National | $182 | $15 |
EMC Insurance | $189 | $16 |
Integrity Insurance | $194 | $16 |
Insurance company | Average annual rate | Average monthly rate |
---|---|---|
American National | $658 | $55 |
MMG Insurance Co | $771 | $64 |
Countryway Insurance Company | $850 | $71 |
Safety | $861 | $72 |
Pekin | $872 | $73 |
Bankrate’s take: Insuring with a small, regional insurance company may come with added benefits. Your agent may be more in-tune with your local market since they presumably live in your area. However, you may want to check your small company’s 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 by driving record: Auto-Owners
Based on our research, Auto-Owners offers the cheapest minimum coverage car insurance rates for drivers with clean driving records and high-risk drivers who have one speeding ticket conviction or one at-fault accident on their record. For full coverage premiums, average USAA car insurance rates may be the same as Auto-Owners for drivers with a clean record. However, our proprietary data shows that USAA may be lower 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 |
---|---|---|---|---|
Auto-Owners | $325 | $384 | $447 | $804 |
USAA | $371 | $450 | $549 | $713 |
Geico | $373 | $455 | $551 | $964 |
Amica | $429 | $522 | $524 | $1,100 |
State Farm | $464 | $541 | $608 | $847 |
National average | $622 | $748 | $892 | $1,244 |
Insurance company | Clean driving record | One speeding ticket | One at-fault accident | One DUI |
---|---|---|---|---|
Auto-Owners | $1,361 | $1,572 | $1,759 | $2,768 |
USAA | $1,361 | $1,652 | $1,971 | $2,620 |
Geico | $1,353 | $1,658 | $1,988 | $3,351 |
Amica | $1,467 | $1,788 | $1,742 | $3,934 |
State Farm | $1,480 | $1,704 | $1,876 | $2,431 |
National average | $1,771 | $2,138 | $2,521 | $3,421 |
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. There will likely be a fee to take the class, but by removing the violation from your driving history, your policy is less likely to be surcharged. If your state does not offer point-reduction courses, your insurance provider may extend a discount to you for taking a defensive driving class. This option is typically only available once every three years, but guidelines vary among insurers. Before enrolling in a point-reduction course, check with your agent to ensure you meet the qualifications.
The cheapest car insurance company for poor credit: Geico and Amica
The table below reflects that Geico and Amica offer the cheapest average annual rates for drivers with poor credit scores, while Auto-Owners and USAA offer the lowest average annual rates for drivers with average, good and excellent credit. All three carriers earned strong Bankrate Scores above 3.5 points as well. Keep in mind that not all states allow credit-based insurance scores to be used as a rating factor. 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
|
---|---|---|---|---|
Amica | $624 | $450 | $429 | $411 |
Auto-Owners | $967 | $381 | $325 | $237 |
Erie | $1,070 | $588 | $486 | $397 |
Geico | $512 | $395 | $373 | $349 |
USAA | $660 | $398 | $371 | $332 |
National average | $944 | $590 | $622 | $537 |
Insurance company
|
Poor credit
|
Average credit
|
Good credit
|
Excellent credit
|
---|---|---|---|---|
Amica | $2,216 | $1,572 | $1,467 | $1.392 |
Auto-Owners | $3,320 | $1,569 | $1,361 | $1,000 |
Erie | $3,009 | $1,553 | $1,356 | $1,090 |
Geico | $1,865 | $1,437 | $1,353 | $1,258 |
USAA | $2,625 | $1,476 | $1,361 | $1,204 |
National average | $3,479 | $52,176 | $2,014 | $1,764 |
Bankrate’s take: Unless you live in California, Hawaii, Massachusetts or Michigan, your credit history can impact your car insurance premium. In fact, drivers with poor credit may pay similar premiums to those with a DUI conviction. Although improving your credit isn’t an overnight fix, you could see gradual improvements in your average rate as you build up your score.
Learn more: Car insurance rates by credit score
The cheapest car insurance company for new drivers: Geico and Erie
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 and Auto-Owners might be good cheap options, and for full coverage, Nationwide and Erie have low average rates.
Insurance company | Cheapest company | Average annual rate | Average monthly rate |
---|---|---|---|
16-year-old* | Geico | $886 | $74 |
17-year-old* | Geico | $811 | $68 |
18-year-old | Auto-Owners | $1,044 | $87 |
19-year-old | Auto-Owners | $871 | $73 |
20-year-old | Auto-Owners | $766 | $64 |
21-year-old | Geico | $638 | $53 |
22-year-old | Geico | $558 | $47 |
23-year-old | Geico | $507 | $42 |
24-year-old | Geico | $481 | $40 |
25-year-old | Geico | $432 | $36 |
*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 |
---|---|---|---|
16-year-old* | Nationwide | $2,262 | $189 |
17-year-old* | Nationwide | $2,217 | $185 |
18-year-old | Erie | $2,988 | $249 |
19-year-old | Erie | $2,689 | $224 |
20-year-old | Erie | $2,525 | $210 |
21-year-old | Erie | $2,316 | $193 |
22-year-old | Geico | $2,026 | $169 |
23-year-old | Geico | $1,850 | $154 |
24-year-old | Erie | $1,655 | $138 |
25-year-old | Geico | $1,584 | $132 |
*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: Although young drivers may be eligible for their own car insurance policy once they reach 18, parents might want to consider listing their young adult child on their policy instead. Young adults on their parents’ policy typically pay much lower premiums than when listed on a separate policy. However, this is usually only an option if your young adult still lives at home. It’s also important to note that any driving convictions or accidents associated with your child will likely impact your rate (at least until you remove them from your policy).
The cheapest car insurance company for senior drivers: Auto-Owners
Rates can begin to creep upward as you age, especially when you reach around and above age 70. That’s because some age-related health issues can increase the risk of accidents. 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 and Nationwide offer some of the cheapest car insurance for senior drivers for both minimum and full coverage.
Insurance company | Cheapest company | Average annual rate | Average monthly rate |
---|---|---|---|
50-year-old | Auto-Owners | $309 | $26 |
60-year-old | Auto-Owners | $314 | $26 |
70-year-old | Auto-Owners | $386 | $32 |
Insurance company | Cheapest company | Average annual rate | Average monthly rate |
---|---|---|---|
50-year-old | Auto-Owners | $1,277 | $106 |
60-year-old | Nationwide | $1,217 | $101 |
70-year-old | Auto-Owners | $1,340 | $112 |
Bankrate’s take: Some insurance companies offer a discount for senior drivers if they complete a defensive driving course (either online or in person). You typically have to be 50 or 55+ to qualify, and the discount is normally applied for three years after course completion. However, these details can vary from carrier to carrier, so you may want to reach out to your agent for specifics.
The cheapest car insurance companies by state
In many states, USAA offers the cheapest minimum coverage premiums on average, but it has been excluded from our state table since its eligibility is restricted to military members and their qualifying family. Taking this into consideration, Geico offers the cheapest average minimum coverage car insurance in most states of the providers we assessed.
The cheapest car insurance depends on your individual circumstances, and each state has different insurance regulations. However, the following rate information may be useful for the sake of comparison. The best way to know if it’s right for your budget is to request a quote.
State
|
Cheapest Company
|
Avg. annual premium
|
---|---|---|
Alabama | Geico | $261 |
Alaska | Geico | $318 |
Arizona | Geico | $299 |
Arkansas | State Farm | $291 |
California | Geico | $415 |
Colorado | American National | $215 |
Connecticut | Amica | $401 |
Delaware | Travelers | $501 |
Florida | Geico | $766 |
Georgia | Auto-Owners | $358 |
Hawaii | Geico | $294 |
Idaho | American National | $131 |
Illinois | Geico | $291 |
Indiana | Pekin | $195 |
Iowa | Hastings Mutual | $131 |
Kansas | State Farm | $307 |
Kentucky | Westfield | $381 |
Louisiana | Geico | $450 |
Maine | Geico | $195 |
Maryland | Allstate | $488 |
Massachusetts | State Farm | $207 |
Michigan | Secura | $117 |
Minnesota | North Star Mutual | $308 |
Mississippi | State Farm | $298 |
Missouri | Columbia Insurance | $301 |
Montana[] | Progressive | $159 |
Nebraska | EMC Insurance | $189 |
Nevada | Geico | $392 |
New Hampshire | MMG | $208 |
New Jersey | NJM | $357 |
New Mexico | Central Mutual Insurance Co | $245 |
New York | American Family | $518 |
North Carolina | State Farm | $318 |
North Dakota | Nodak | $156 |
Ohio | Geico | $243 |
Oklahoma | Geico | $240 |
Oregon | State Farm | $432 |
Pennsylvania | Donegal | $235 |
Rhode Island | State Farm | $273 |
South Carolina | American National | $200 |
South Dakota | Farmers Mutual of Nebraska | $179 |
Tennessee | Grange | $199 |
Texas | Geico | $420 |
Utah | Geico | $308 |
Vermont | New England Guaranty Insurance Co | $151 |
Virginia | Travelers | $344 |
Washington | PEMCO | $335 |
Washington D.C. | Geico | $363 |
West Virginia | Encompass | $266 |
Wisconsin | Geico | $202 |
Wyoming | Geico | $176 |
State
|
Cheapest company
|
Avg. annual premium
|
---|---|---|
Alabama | Travelers | $1,166 |
Alaska | State Farm | $1,366 |
Arizona | Geico | $974 |
Arkansas | Farmers | $1,158 |
California | Capital | $1,548 |
Colorado | American National | $955 |
Connecticut | Geico | $1,096 |
Delaware | Geico | $1,444 |
Florida | State Farm | $2,307 |
Georgia | Auto-Owners | $1,287 |
Hawaii | Geico | $1,100 |
Idaho | American National | $481 |
Illinois | Geico | $1,068 |
Indiana | Hastings Mutual | $550 |
Iowa | Hastings Mutual | $550 |
Kansas | State Farm | $1,293 |
Kentucky | State Farm | $1,455 |
Louisiana | Southern Farm Bureau | $1,860 |
Maine | Geico | $604 |
Maryland | Kemper | $1,514 |
Massachusetts | State Farm | $608 |
Michigan | Secura | $940 |
Minnesota | Iowa Farm Bureau | $1,097 |
Mississippi | Mississippi Farm Bureau | $1,395 |
Missouri | Encompass | $1,431 |
Montana | Progressive | $810 |
Nebraska | Amco Insurance | $1,012 |
Nevada | Geico | $1,215 |
New Hampshire | MMG Insurance | $701 |
New Jersey | Palisades | $931 |
New Mexico | Geico | $1,408 |
New York | American Family | $1,095 |
North Carolina | Geico | $949 |
North Dakota | American Family | $1,019 |
Ohio | Hastings Mutual | $642 |
Oklahoma | Geico | $1,003 |
Oregon | Oregon Mutual | $912 |
Pennsylvania | Geico | $979 |
Rhode Island | State Farm | $1,002 |
South Carolina | American National | $537 |
South Dakota | State Farm | $1,148 |
Tennessee | State Farm | $901 |
Texas | State Farm | $1,373 |
Utah | Geico | $1,010 |
Vermont | State Farm | $836 |
Virginia | Nationwide | $946 |
Washington | Travelers | $957 |
Washington D.C. | Progressive | $1,236 |
West Virginia | Encompass | $1,012 |
Wisconsin | Hastings Mutual | $803 |
Wyoming | Farmers | $1,151 |
How to get cheap car insurance
There’s more that goes into buying the cheapest auto insurance than going with the lowest premium you find. Taking a little extra time to evaluate your insurance needs, set a budget for yourself and do a little digging into each provider can help you find significant car insurance savings both upfront and in the long term. Following the steps below can help point you in the right direction:
- Prioritize: Make a list of your priorities before requesting free quotes. 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. Knowing what you need ahead of time can help streamline the quoting process.
- Research: Once you pinpoint your primary qualifiers for 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: When requesting quotes, it’s vital to compare car insurance coverage apples-to-apples. Unequal coverage limits and varying coverage options will not accurately reflect the rates between companies. Using your current declarations page to guide you on your coverage selections may be a good idea.
- 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, reflecting this increased risk in the premium. 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
Car insurance discounts can be an effective way to reduce your premium. Luckily, providers tend to offer a broad selection of discounts that you could apply to your policy based on your age, profession, driving habits or other characteristics.
Frequently asked questions about cheap car insurance
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for 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 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 2021 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.
Bankrate Scores methodology
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 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 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.