Cheapest car insurance in September 2023

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

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

Cheap car insurance can help you stay on track with monthly bills while still providing meaningful financial protection. Your car insurance premium may feel like a useless expense if you haven’t needed to file a claim, but it’s well worth it. Car insurance provides a financial safety net in the event of an accident and can protect your hard-earned money from high out-of-pocket expenses.

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

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. Determining how much coverage you need involves a review of your broader financial picture. 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. If you are unsure how much coverage you need, consider speaking with a licensed insurance agent before purchasing an auto policy.

Broadly speaking, car insurance covers damages and injuries that result from covered accidents. Without car insurance, these costs will need to be paid out-of-pocket and could become very expensive. Liability coverage, which encompasses bodily injury and property damage liability, covers any injuries and damages you cause to the other party because of an accident. Collision and comprehensive coverage, on the other hand, covers damages your car sustained due to a collision or non-collision accident, like a falling tree, fire or theft. To learn more, Bankrate’s car insurance guide details these coverage types in detail.

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

If you want to qualify for more car insurance discounts, 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. Or, if you’re a homeowner, you may want to consider bundling your home and auto policies together to save.   

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. If your provider offers a telematics discount, you might want to install the device in your car. Taking an insurer-approved defensive driving course may also result in a discount. While you can do some of this research on your own, speaking with a licensed insurance agent can be a helpful step in maxing out the number of discounts you can apply to your policy.   

Bankrate’s analysis of average rate data from Quadrant Information Services and assessment of J.D. Power scores, AM Best and Moody’s financial strength ratings, customer support options, available discounts and policy options highlighted these five carriers as the best cheap car insurance companies: