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Cheapest car insurance companies in August 2022

Updated Aug 02, 2022
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Cheapest car insurance companies for August 2022

Insurance company Average annual rate* Average monthly rate Bankrate Score
Auto-Owners $325 $27 4.5
USAA $354 $30 5.0
Geico $365 $30 4.7
Amica $444 $37 4.5
Erie $476 $40 4.6

*Average rates based on minimum coverage

Cheapest overall

JD Power:
878 /1000
AM Best:
A ++
Avg. annual premium for minimum coverage:
$ 325
Avg annual premium for full coverage:
$ 1305

Why Auto-Owners made our list: Auto-Owners has the lowest average minimum coverage premium on our list and also offers numerous add-on options to help you personalize your coverage.

Why Auto-Owners may be cheapest overall: Based on our analysis, Auto-Owners has the cheapest average minimum coverage premium for drivers with clean driving records and good credit, but the regional carrier also offers cheap average rates across a variety of other driving profiles.

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.

Learn more: Auto-Owners insurance review

Cheapest for military-focused coverage

JD Power:
909 /1000
AM Best:
A ++
Avg. annual premium for minimum coverage:
$ 354
Avg annual premium for full coverage:
$ 1209

Why USAA made our list: In addition to its low average minimum coverage rate, USAA, the fifth-largest auto insurer in the U.S. by market share according to the Insurance Information Institute (Triple-I), consistently receives high customer satisfaction scores from J.D. Power, although the company isn’t eligible for official ranking due to only insuring military members, veterans and qualifying family members.

Why USAA may be cheapest for military-focused coverage: USAA offers low average rates across a wide range of driver profiles, but to qualify for coverage you must be affiliated with the military or a qualifying family member. If you meet these criteria, USAA could be the cheapest car insurance company for you.

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.

Learn more: USAA insurance review.

*Not officially ranked by J.D. Power due to eligibility restrictions

Cheapest for poor credit scores

JD Power:
881 /1000
AM Best:
A ++
Avg. annual premium for minimum coverage:
$ 354
Avg annual premium for full coverage:
$ 1297

Why this company 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.

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.

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.

Learn more: Geico insurance review

Cheapest for stellar service

JD Power:
895 /1000
AM Best:
A +
Avg. annual premium for minimum coverage:
$ 444
Avg annual premium for full coverage:
$ 1495

Why Amica made our list: With a low average minimum coverage premium and high claims and customer satisfaction scores, Amica could be a great option for those looking for cheap automobile insurance and solid service.

Why Amica may be cheapest for stellar service: Amica is rated near the top of J.D. Power’s claims satisfaction study and also offers low average rates across a variety of profiles. Auto claims can be filed in numerous ways, including through an online account, via Amica’s online chat feature, by phone or on the Amica mobile app.

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.

Learn more: Amica Insurance review

Cheapest for steady rates

JD Power:
901 /1000
AM Best:
A +
Avg. annual premium for minimum coverage:
$ 476
Avg annual premium for full coverage:
$ 1321

Why this company made our list: With its low average minimum coverage premium and exclusive Rate Lock feature, Erie may be a great option for policyholders looking to lock in their savings for multiple years.

Why Erie may be cheapest for steady rates: Erie offers low average rates across a variety of driver profiles, and its Rate Lock program allows you to keep your auto insurance premium steady; the company advises that your price will only change if you make adjustments to your policy, like adding or removing a driver or vehicle.

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.

Learn more: Erie insurance review

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

Based on our research, Auto-Owners and USAA are the cheapest carriers for drivers with clean driving records, one speeding ticket conviction, one at-fault accident or one DUI conviction. Although maintaining a clean motor vehicle record (MVR) is one of the best ways to keep your car insurance premiums low, accidents happen. After multiple incidents, insurance companies may consider you a high-risk driver, which comes at an even greater insurance cost. Being labeled a high-risk driver may prevent you from experiencing the same low car insurance rate that drivers with a clean driving record have.

Cheapest car insurance companies by credit tier

Geico and USAA offer the cheapest average rates for drivers with poor credit scores, while USAA and Auto-Owners offer the lowest average rates for drivers with average, good and excellent credit. In every state except California, Hawaii, Massachusetts and Michigan, car insurance companies are permitted to use your credit-based insurance score as a rating factor. In the states mentioned, insurance companies are banned or restricted from using this information. Check your state’s laws or speak with an insurance agent to determine how your credit history might affect your car insurance premium.

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:

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.

Age Cheapest car insurance company on average Average annual rate*
17-year-old** Geico $435
18-year-old Auto-Owners $1,036
19-year-old Auto-Owners $866
20-year-old Auto-Owners $762
21-year-old Geico $628
22-year-old Geico $549
23-year-old Geico $499
24-year-old Geico $473
25-year-old Geico $425
30-year-old Auto-Owners $316
35-year-old Auto-Owners $323
40-year-old Auto-Owners $325
50-year-old Auto-Owners $310
60-year-old Auto-Owners $315
70-year-old Auto-Owners $386

*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 large companies sometimes offer more discount programs and options, you might want to get a look into regional companies with smaller market shares in your search for cheap car insurance quotes. A smaller insurer can also help you find affordable car insurance, offer high customer satisfaction ratings and be financially strong. These four regional carriers offer the cheapest minimum car insurance on average, according to Bankrate’s analysis.

Average minimum coverage car insurance premium from smaller insurance companies

Insurance company Average annual rate Average monthly rate
Union Mutual $154 $13
Nodak Insurance Company $159 $13
American National $181 $15
EMC Insurance $190 $16

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

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Looking to save money on auto insurance?

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:

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

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Written by
Cate Deventer
Insurance Writer & Editor
Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent.
Edited by Insurance Editor
Reviewed by Director of corporate communications, Insurance Information Institute