Cheapest car insurance companies in September 2022

Bankrate's guide to cheap car insurance

Car insurance may be required if you own a car, but it doesn’t need to take a huge chunk out of your budget. Based on Bankrate’s analysis of average premiums from the largest car insurance companies by market share, Auto-Owners and Geico came out on top for offering some of the cheapest minimum coverage, but there are a few others that offer top-notch auto coverage at competitive prices.

But while price may be a priority, you don’t need to sacrifice in other areas of your car insurance policy. Whether you’re looking for dependable customer service, mobile app accessibility or financial strength, Bankrate’s picks for the cheapest car insurance companies can help you choose the carrier that most fits your needs.

Cheapest car insurance companies for September 2022

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 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.

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 company by state

The average annual auto insurance premium for minimum coverage by state.

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. With the exception of the 17-year-old rate data, these rates reflect no additional discounts applied.

Additionally, we have not included USAA in this list due to its eligibility restrictions, but the company was often the cheapest across a wide range of ages.

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 make and model 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

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 provide an easy-to-use shopping and comparison tool for consumers, we calculated a Bankrate Score out of 5.0 total points. The higher a company’s Bankrate Score, the more competitively that company ranked in each scoring category. Our picks highlight auto insurers that:

• 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

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 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 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 2020 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: 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 the use of credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts, and Michigan. In Michigan, while insurers are not allowed to use your credit score, they can use factors that contribute to your score to calculate your rate.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket conviction and single DUI conviction.

Status: Rates were evaluated based on the following marital/family status: single (base), married, 40 year married man and woman with a 16-year-old teen driver. Marital status is not a rating factor in HI and MI.

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.

Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.

Teens: Rates were determined by adding a 17-year-old teen to a 40-year-old married couple’s policy.