Skip to Main Content
Powered by Coverage.com (NPN: 19966249)

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.

Cheapest car insurance in January 2023

Auto-Owners and USAA offer the cheapest minimum coverage car insurance at rates less than $375 per year, according to Bankrate's average premium analysis.

Updated Jan 25, 2023
Find cheaper car insurance
A better rate is around the corner. See how much you could save in 3 minutes or less.
Location-Icon
Lock Secure Your information is secure
Select from a variety of trusted carriers
+ MORE
User
Get matched with personalized offers
Tell us a little about yourself so we can share accurate and personalized offers. We only ask for info we know will impact your rate.
Insurance Auto
Choose the best policy for you
Compare your options from carriers who want to work with you, and select as many offers as you’d like.
Congrats
Finalize your rate and policy details
Once you pick the carrier you want, finish the process by phone with an trusted agent or entirely online. That’s it!
Bankrate logo The Bankrate promise

At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation of . Our content is backed by Coverage.com LLC, a licensed entity (NPN: 19966249). For more information, please see our 

Cheapest car insurance companies in January 2023

Although you could be paying more or less than the 2023 national full coverage average of $2,014 per year, depending on your personal rating factors, you may want to start your search for cheap car insurance by requesting quotes from some (or all) of the carriers below. Based on our research, these companies may offer low average premiums while standing apart from the crowd for their customer service, digital tools, discount opportunities and more.  

Auto-Owners
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly premium
$27
Average annual premium
$325
Savings vs national average*
- $297
USAA
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly premium
$31
Average annual premium
$371
Savings vs national average*
- $251
Geico
Rating: 4.4 stars out of 5
4.4
Bankrate Score
Info
Average monthly premium
$31
Average annual premium
$373
Savings vs national average*
- $249
Amica
Rating: 4.4 stars out of 5
4.4
Bankrate Score
Info
Average monthly premium
$36
Average annual premium
$429
Savings vs national average*
- $193
State Farm
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly premium
$39
Average annual premium
$464
Savings vs national average*
- $158
*Based on minimum coverage policies for 2023.
Powered by Coverage.com (NPN: 19966249)
Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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.

Geico
Rating: 4.4 stars out of 5
4.4
Bankrate Score
Info
Average monthly premium
$113
Average annual premium
$1,353
Savings vs national average*
- $661
Auto-Owners
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly premium
$113
Average annual premium
$1,361
Savings vs national average*
- $653
USAA
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly premium
$113
Average annual premium
$1,361
Savings vs national average*
- $653
Amica
Rating: 4.4 stars out of 5
4.4
Bankrate Score
Info
Average monthly premium
$122
Average annual premium
$1,467
Savings vs national average*
- $547
State Farm
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly premium
$123
Average annual premium
$1,480
Savings vs national average*
- $534
*Based on full coverage policies for 2023.
Powered by Coverage.com (NPN: 19966249)
Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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.

How Bankrate picked the cheapest insurers

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 5 total points. The higher a company’s score, the more competitively that company ranked in each scoring category. Our picks highlight auto insurers that:

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.
Clock Wait
47
years of industry expertise
Search
122
carriers reviewed
Dollar Coin
2M
quotes analyzed
Location
34.5K
zip codes examined
Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Compare auto insurance rates

Answer a few questions to see personalized rates from top carriers.
Caret DownCaret Up
Please select age
Location-Icon
Lock Secure Your information is secure
Save on auto with quotes from trusted providers like:
Powered by Coverage.com (NPN: 19966249)
Insurance Disclosure

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 top 5 cheapest car insurers

Cheapest car insurance company overall

J.D. Power:
865 /1,000
AM Best:
A ++
Avg. annual premium for minimum coverage:
$ 325
Avg annual premium for full coverage:
$ 1,361

Cheapest car insurance company for military-focused coverage

J.D. Power:
890 /1,000
AM Best:
A ++
Avg. annual premium for minimum coverage:
$ 371
Avg annual premium for full coverage:
$ 1,361

Cheapest car insurance company for poor credit scores

J.D. Power:
874 /1,000
AM Best:
A ++
Avg. annual premium for minimum coverage:
$ 373
Avg annual premium for full coverage:
$ 1,353

Cheapest car insurance company for stellar service

J.D. Power:
903 /1,000
AM Best:
A +
Avg. annual premium for minimum coverage:
$ 429
Avg annual premium for full coverage:
$ 1,467

Cheapest car insurance company for local offices

J.D. Power:
882 /1,000
AM Best:
A ++
Avg. annual premium for minimum coverage:
$ 464
Avg annual premium for full coverage:
$ 1,480

The cheapest car insurance from smaller companies: Union Mutual

Although large companies sometimes offer more discount programs and options, you might want to look into regional companies with smaller market shares in your search for cheap car insurance quotes. A smaller insurer may also help you find affordable car insurance, offer high customer satisfaction ratings, provide personalized service and be in tune with your local market. These five regional carriers offer the cheapest minimum car insurance on average, according to Bankrate’s analysis.
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

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. Please note, however, that not all of these companies are available in all states.

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.

The cheapest car insurance companies for minimum coverage policies in 2023: 

STATE CHEAPEST CAR INSURANCE COMPANY AVERAGE 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 CAR INSURANCE COMPANY AVERAGE 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

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, with 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.

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

The cheapest car insurance company for poor credit: 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 $558 $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 $2,176 $2,014 $1,764

The cheapest car insurance company by age: Auto-Owners

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). Our research into average car insurance rates by age found Auto-Owners to offer the cheapest minimum coverage rates for most age groups, followed closely by Geico. For average full coverage rates, some of the cheapest carriers include Auto-Owners, Erie, Geico and Nationwide. 

Learn more: Tips for saving with teen driver discounts

Insurance company Cheapest car insurance company on average Average annual rate
17-year-old* Geico $811
18-year-old Auto-Owners $1,044
19-year-old Auto-Owners $871
20-year-old Auto-Owners $766
21-year-old Geico $638
22-year-old Geico $558
23-year-old Geico $507
24-year-old Geico $481
25-year-old Geico $432
30-year-old Auto-Owners $3316
35-year-old Auto-Owners $323
40-year-old Auto-Owners $325
50-year-old Auto-Owners $309
60-year-old Auto-Owners $314
70-year-old Auto-Owners $386
Insurance company Cheapest car insurance company on average Average annual rate
17-year-old* Nationwide $2,217
18-year-old Erie $2,988
19-year-old Erie $2,689
20-year-old Erie $2,525
21-year-old Erie $2,316
22-year-old Geico $2,026
23-year-old Geico $1,850
24-year-old Erie $1,655
25-year-old Geico $1,584
30-year-old Auto-Owners $1,383
35-year-old Auto-Owners $1,367
40-year-old Geico $1,353
50-year-old Auto-Owners $1,277
60-year-old Nationwide $1,217
70-year-old Auto-Owners $1,340
*Rates reflect 17-year-old drivers added to their parents’ policy with the driver’s training and good student discounts applied. 

How to get cheap car insurance

Auto insurance helps provide you and your family with financial peace of mind. Although carrying minimum coverage as a cost-saving measure may be tempting, this decision could leave you financially vulnerable to a significant loss. If you find your car insurance premium out of your realm of affordability, the following steps may help you fit this necessary expense back into your budget:

  1. 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. 
  2. Research: Once you know what your priorities are in 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. 
  3. Compare: When requesting quotes, it’s vital to ensure that you are comparing coverage apples-to-apples. If you request a quote with more coverage options from one company but less coverage option from another, your quote comparison 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. 
  4. Discounts: Some companies offer more discounts than others. Furthermore, some companies have strict eligibility requirements for the discounts they offer. It may be a good idea to ask the company to do a full discount review to ensure that you take advantage of all possible savings opportunities. 
  5. Avoid a lapse in coverage: A lapse in coverage can cause your premiums to increase. This is because car insurance companies generally regard those with lapses as less financially stable and more likely to file a claim. 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. 

Save on cheap car insurance with discounts

Auto Car Guides

Looking to save money on auto insurance?

ADVERTISEMENT
People with dog on back of truck
Progressive logo
Powered by Coverage.com (NPN: 19966249)
Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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.

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 insurers from using credit-based insurance scores as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan. 

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, and single DUI conviction.
 
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. Rates for 18 year olds are based on a driver of this age that is a renter (not a homeowner) and on their own policy. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.
 
Average rates for 17-year-old drivers were calculated for 17 year olds by evaluating our 2023 base profile, based on a driver of this age added to their parents’ policy. These rates also reflect the good student and driver’s training discounts. 
 

Bankrate Scores

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 
 
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
 
  • 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.
 

Compare rates and save on auto insurance today!

Close X
Written by
Carol Pope
Insurance Writer

Carol Pope is an insurance writer for Bankrate and prior to joining the team, she spent 12 years as an auto insurance agent. During this time, she sold, serviced and underwrote auto insurance for people across the country. She also has experience selling supplement coverage such as umbrella insurance.

Edited by Insurance Editor
Reviewed by Director of corporate communications, Insurance Information Institute