Did you know the exact same driver could be charged $39 per month by one car insurance company and $255 per month by another? Our analysis — based on millions of car insurance quotes from 37 companies across the country — confirms the best way to save on car insurance is to shop around and get multiple quotes.
What is the cheapest car insurance company?
State Farm and USAA are the most affordable major insurance companies in the country. State Farm offers an average rate of $532 per year for a minimum-liability policy, 26% below the national average. USAA costs an average of $432 per year, although only active military members, veterans or their families can qualify.
Among insurers that have a smaller national footprint, Farm Bureau Insurance, at $472 per year, and Auto-Owners, at $484 per year, rank as the cheapest. Erie’s in a close third place at $503 per year.
Smaller insurance companies sometimes offer lower rates because they compete with much bigger companies. Some also deliver more local knowledge or a personal touch because they’re based in your state or community.
What is the cheapest car insurance company for you?
To find the cheapest car insurance for you, start by getting quotes from the auto insurance companies with the cheapest rates. Depending on a variety of factors — location, driving history, credit score and more — some insurers may be cheaper for certain drivers than others. If you’re looking for the cheapest companies that also offer the best balance of affordability, strong customer service and coverage options, compare the best auto insurance companies.
The cheapest car insurance companies
- State Farm: Cheapest overall company
- Geico: Cheapest rates after discounts
- Erie: Cheapest for a bad driving record
- Metromile: Cheapest for low-mileage drivers
- Farm Bureau: Cheapest rates for drivers with poor credit
- USAA: Cheapest company for military families
Cheapest car insurance company overall: State Farm
State Farm is the largest auto insurance company in the country, with the cheapest widely available rates in 29 states. Additionally, the company boasts an enormous network of local agents, meaning there’s likely a State Farm agent in your city who can help you compare rates.
State Farm is the best and cheapest car insurance company for most drivers, considering that USAA has eligibility restrictions, and Farm Bureau and Auto-Owners are disproportionately expensive when you add more coverage.