Cheapest car insurance companies in August 2022

Cheapest car insurance companies for August 2022

*Average rates based on minimum coverage

How to get started: If you would like to get a quote from Auto-Owners, you will need to contact an independent agent in your area representing the company within the 26 states it offers coverage.

How to get started: USAA offers online quotes, or you can call 800-531-8722 to speak with a company representative to get a quote.

How to get started: Getting a quote with Geico is fairly easy. You can get a Geico quote online by phone at 800-207-7847 or in the Geico mobile app. Geico also has a network of local exclusive agents across the U.S.

How to get started: To get a quote from Amica, you can visit the Amica website at www.amica.com or call 800-242-6422. The carrier also operates local offices across the U.S.. Amica car insurance is unavailable in Hawaii.

How to get started: If you live within one of the 12 states, or Washington, D.C., where Erie writes coverage and would like to get a quote, you can do so on the Erie website by calling 800-458-0811 or visiting a local independent agent who represents the company in its operating territories.

Finding cheap car insurance by state

In many states, USAA offers the cheapest minimum coverage premiums, 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.

While the following rate information may be useful for the sake of comparison, the cheapest car insurance depends on your individual circumstances, and each state has different insurance regulations. For these reasons, while many carriers could be considered cheap insurance companies, the best way to know if it’s right for your budget is to request a quote.

Cheapest car insurance companies by driving record

Cheapest car insurance companies by credit tier

Cheapest car insurance companies by age

While the average cost of car insurance by age varies in most states, there are some exceptions. Hawaii and Massachusetts ban the use of age as a rating factor due to state regulations. In these states, a driver’s age will not impact their premium.

Our research revealed the cheapest car insurance companies for the following age groups, on average:

• The cheapest car insurance for new teen drivers aged 17-19 years old are Auto-Owners and Geico.
• The cheapest car insurance for mature drivers aged 50 and older is Auto-Owners.

Below are the cheapest car insurance companies for each age group by market share, based on 2022 premium data obtained from Quadrant Information Services. We have not included USAA in this list due to the eligibility restrictions, but the company was often the cheapest across a wide range of ages.

*Average rates based on minimum coverage

**17-year-old rates are for teen added to their parents’ policy and reflect the added cost rather than the total cost for the policy.

Cheap car insurance from smaller insurance companies

Although regional insurance brands might not sound as familiar as the larger companies, getting quotes from these lesser-known insurance providers might offer cheap insurance coverage in your area.

Factors that can affect your auto insurance rates

When applying for cheap auto insurance, keep in mind that the following personal factors typically affect your rates.

• Age: In every state except Hawaii and Massachusetts, car insurance companies may use age as a factor in determining your car insurance premiums. Younger drivers tend to pay more for their car insurance due to their lack of driving experience and higher likelihood of accidents.
• Gender: Gender may be used as a rating factor in every state except California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania. On average, men pay slightly higher car insurance rates than women, since they statistically have higher accident frequency and severity, and car insurance companies view them as riskier to insure.
• Credit score: Most insurance companies use a credit-based insurance score to help calculate your car insurance premium. Statistically, drivers with lower credit scores are more likely to file claims. As a result, their car insurance premiums are usually higher than drivers with good credit scores. Car insurance companies in California, Hawaii and Massachusetts, are prohibited or restricted from using credit as a rating factor, and companies in Michigan are barred from using your actual credit score but can use some metrics that make up your credit score. Washington state’s ban on factoring credit in premiums is currently on hold in the courts. Check your state’s laws or talk to a licensed insurance agent to determine how credit might affect your premium.
• Vehicle make and model: Since vehicles have different safety ratings, crash statistics and prices for replacement parts and labor, your vehicle type affects your car insurance premium.
• Claims history: If you’ve filed car insurance claims in the past, insurance companies view you as higher risk and more likely to file claims in the future.
• Driving history: One of the best ways to lower your car insurance premium is to keep a clean driving history. If you already have marks on your motor vehicle record, you may want to enroll in a usage-based telematics program that tracks you driving in real-time and offers potential discounts for safe driving.
• ZIP code: Different ZIP codes have different crash statistics, weather patterns, theft and vandalism rates and living costs. As a result, your address affects the price you pay for car insurance. In Michigan, insurance companies are not allowed to use your ZIP code when calculating your premium. California bans the use of individual ZIP codes but does allow companies to use pre-approved bands of ZIP codes if an accurate rate cannot otherwise be compiled.

Other factors to watch out for

Each car insurance company uses its own proprietary algorithm to determine rates. Different companies weigh different rating factors differently, which means that the cost for the same coverage can vary widely between carriers. Shopping around can help you lower your premium by allowing you to find the coverage you need at the lowest price. However, you should make sure you are buying enough coverage, too; skimping on coverage to get a cheaper premium could leave you with hefty out-of-pocket expenses if you cause an accident. If you are looking for cheap full coverage, consider the deductibles you choose as well. Choosing higher car insurance deductibles could mean a lower premium, but will also mean you’ll pay more out of pocket if you file a claim for damage to your vehicle. From there, make sure you take advantage of all the discounts available to you. For example, bundling policies often nets a decent discount on both your auto insurance and additional policy offered by your insurer, such as home coverage. Finally, you may want to reevaluate your policy, especially if a major life event occurs, to ensure the coverage types, limits, discounts and policy features still work for your needs and you are getting the best price on coverage. If not, you may want to consider switching car insurance companies.

How to get the cheapest car insurance quotes

Auto insurance helps provide you and your family with financial peace of mind. Although your premium is an important factor, buying minimum coverage levels could cost you more in out-of-pocket expenses if you cause an accident, leaving you financially vulnerable to a significant loss. Keeping your coverage needs in mind while looking for a cheap auto insurance policy can help you protect your financial well-being and find the best cheap car insurance for you.

How Bankrate picked the cheapest insurers

To find the best car insurance providers for your wallet, we analyzed companies based on average premium data obtained from Quadrant Information Services, J.D. Power auto claims satisfaction scores and AM Best financial strength ratings. For average premium data, we looked at both minimum coverage, since it is generally the cheaper option because it provides less coverage. We then combined this information with data that includes coverage options and digital resources to assign each carrier a proprietary Bankrate Score, on a scale of 0.0 to 5.0. The higher the Bankrate Score, the higher a company scored across these categories.

To make it onto our list of cheapest car insurance companies, an insurance provider had to meet the following criteria:

• Have an average annual minimum coverage premium lower than the national average of $545 per year.
• Have at least close to the industry average J.D. Power claims satisfaction rating.
• Have an AM Best financial strength rating of A+ (Superior) or higher.
• Have an overall Bankrate Score of 4.5 or higher.

We also analyzed data from several super-regional cheap insurance companies that may only offer auto insurance in a select number of markets. Due to their lower volume of annual premiums written, some of these smaller carriers may not be rated by J.D. Power or AM Best. Thus, these two factors had no bearing on their Bankrate Scores.

Frequently asked questions