What is the cheapest car insurance company?
Cheap auto insurance Our analysis found that USAA and State Farm are the most affordable major insurers in the country. USAA costs an average of $432 per year, 40% below the national average. State Farm costs $532 per year, 26% below the national average.
Although USAA is the cheapest option among major insurers, only active military members, veterans or their families can qualify for a policy.
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.
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.
How we found the cheapest companies
NerdWallet’s editorial team analyzed minimum coverage car insurance rates from pricing analytics company Quadrant Information Services. Our analysis looked at 40-year-old drivers in all ZIP codes across the 50 U.S. states and Washington, D.C., with a variety of driving and credit histories. All drivers had a 2019 Toyota Camry L.
The cheapest car insurance
Geico is the cheapest major car insurance company in the nation, according to NerdWallet most recent analysis of minimum coverage rates. Geico’s average annual rate was $354, or about $29 per month. The company earned a 4.5-star rating from NerdWallet.
Here are the cheapest annual auto insurance rates for six of the largest auto insurers in the United States. We also included average rates for some smaller companies. These rates are for only state-mandated minimum coverage. Our “good driver” profile is a 40-year-old with no moving violations and credit in the “good” tier.
Cheap car insurance after an accident or DUI
Depending on your driving record, the most affordable car insurance company varies. The tables below show average auto insurance rates from the largest companies for drivers after an accident or DUI.
We found that Geico has the lowest average rate for drivers with one at-fault accident. American Family is cheapest, on average, for drivers with a DUI.
Cheap auto insurance for poor credit
Your driving record isn’t the only factor that can increase your rates. Many insurers also use credit-based insurance scores to help calculate car insurance rates. This can make it harder to get cheap car insurance with poor credit in many states.
A credit-based score includes the same factors as a regular credit score, such as debt and payment history, but weighs them differently. California, Hawaii, Massachusetts and Michigan don’t allow insurers to use credit when determining car insurance rates.
The best cheap car insurance
We looked at our highest-rated auto insurers to find out which ones also offer cheap car insurance. Out of all the top companies, Auto-Owners has the most affordable car insurance rates on average, while Geico has the cheapest rates on average among the nation’s largest insurers.
To find affordable car insurance companies, NerdWallet compared rates among the best car insurance companies in 2022 for which we have complete pricing data. We looked at average rates in every ZIP code in all 50 U.S. states and Washington, D.C. Not all companies offer insurance in every state.
