Whether you are a recent graduate or retired, it is likely that you are looking for ways to save on car insurance. Luckily, there are a few simple ways to keep more money in your pocket.
In general, the cheapest car insurance rates are available to drivers who have a clean driving record, a good credit score and who drive fewer miles per year. The cheapest companies vary from state to state, but they typically include USAA, Geico and State Farm.
The Cheapest Car Insurance rates in 2023
Cheapest Car Insurance Companies and quotes
The cheapest car insurance companies are USAA, Erie Insurance, State Farm, Geico, and Progressive. The cost rating scores and monthly average rates of both minimum liability coverage and full coverage policies are highlighted below. You will also find our recommendations for the best driver for each company.
| Cheap Car Insurance Company | Cost Ratings Score | Cheapest Minimum-Liability Insurance | Cheapest Full-Coverage Insurance | Cheapest Coverage for |
|---|---|---|---|---|
| 1. USAA | 9.8 | $28 | $97 | Military families |
| 2. Erie Insurance | 9.7 | $38 | $111 | Basic coverage |
| 3. Geico | 9.2 | $39 | $113 | Most drivers |
| 4. State Farm | 9.2 | $45 | $125 | Students |
| 5. Progressive | 8.7 | $57 | $148 | High-risk drivers |
Cheapest Car Insurance in USA in 2023
We highlight national and state car insurance rates for minimal liability and full coverage auto insurance in the table below. Our estimated analysis for a 35-year-old married driver with a good credit rating and a clean driving record yielded the average national cost by company.
Car Insurance Quotes in 2023
A minimum-liability policy costs $28 per month ($333 per year) and a full coverage policy costs $97 per month ($1,168 per year). USAA provides both of these options, which are only available to military members and their families.
The most affordable car insurance rates are $29 per month ($349 per year) for minimum liability coverage, which is provided by Auto-Owners Insurance. Erie Insurance has the most affordable full coverage rates available, starting at $111 per month ($1,337 per year).
Finally, for a Geico minimum liability policy, the cheapest car insurance rates offered by the largest major national providers are $39 per month ($468 per year). Nationwide is the cheapest major national provider for full coverage car insurance, with rates starting at $108 per month ($1,297 per year).
Cheapest Car Insurance Policy
Most states require minimum liability insurance as the cheapest type of car insurance and the lowest level of coverage. Furthermore, most auto insurance quotes include full coverage quotes for those who require a higher level of protection.
The cheapest car insurance rates for both coverage types are highlighted below for the entire country. Each is broken down by company's average annual and monthly cost estimates.
How Can I Get the Cheapest Car Insurance?
USAA, Auto-Owners, Erie, Geico, and State Farm have the lowest minimum liability car insurance rates. The following table contains a comprehensive list of companies that provide the cheapest state minimum liability coverage:
| Car Insurance Company | Monthly Cost Estimate | Annual Cost Estimate |
|---|---|---|
| USAA | $28 | $333 |
| Auto-Owners | $29 | $349 |
| Erie | $38 | $459 |
| Geico | $39 | $468 |
| State Farm | $45 | $543 |
| Nationwide | $51 | $613 |
| Progressive | $57 | $687 |
Cheapest Comprehensive Car Insurance rates in 2023
USAA, Erie, and Nationwide have the lowest car insurance rates for a comprehensive insurance policy. Those looking for low-cost full-coverage auto insurance should look into the following companies:
| Car Insurance Company | Average Monthly Cost Estimate | Average Annual Cost Estimate |
|---|---|---|
| USAA | $97 | $1,168 |
| Nationwide | $108 | $1,297 |
| Erie Insurance | $111 | $1,337 |
| Geico | $113 | $1,360 |
| Auto-Owners Insurance | $124 | $1,490 |
| State Farm | $125 | $1,497 |
| Travelers | $131 | $1,574 |
| Progressive | $148 | $1,773 |
| Allstate | $193 | $2,312 |
| Farmers | $193 | $2,317 |
States with the cheapest Car Insurance quotes
Depending on where you live, the cheapest car insurance rates can be significantly lower or higher than the previously discussed national averages. The cheapest provider in each state varies significantly as well.
We highlight the providers offering the cheapest car insurance rates in each state for minimum liability and full coverage auto insurance in the sections below.
the cheapest car insurance companies rates in each state in 2023
The table below shows the cheapest minimum liability insurance in each of the 50 states. Each row includes the cheapest company as well as estimated annual costs for the lowest rate in each state:
| State | Cheapest Car Insurance Company* | Cheapest Minimum Liability Rate (Annual Estimate) |
|---|---|---|
| Alabama | Geico | $360 |
| Alaska | Allstate | $291 |
| Arizona | Auto-Owners | $359 |
| Arkansas | Southern Farm Bureau | $307 |
| California | Geico | $398 |
| Colorado | Southern Farm Bureau | $245 |
| Connecticut | Geico | $489 |
| Delaware | State Farm | $599 |
| District of Columbia | Chubb Limited | $359 |
| Florida | Geico | $586 |
| Georgia | Auto-Owners | $381 |
| Hawaii | Geico | $340 |
| Idaho | Auto-Owners | $181 |
| Illinois | Country Financial | $328 |
| Indiana | Auto-Owners | $318 |
| Iowa | State Farm | $198 |
| Kansas | Nationwide | $324 |
| Kentucky | State Farm | $381 |
| Louisiana | Southern Farm Bureau | $502 |
| Maine | Auto-Owners | $215 |
| Maryland | Geico | $468 |
| Massachusetts | The Hanover | $434 |
| Michigan | Auto-Owners | $649 |
| Minnesota | Auto-Owners | $353 |
| Mississippi | National General | $244 |
| Missouri | Missouri Farm Bureau | $385 |
| Montana | Progressive | $215 |
| Nebraska | Auto-Owners | $216 |
| Nevada | State Farm | $614 |
| New Hampshire | Auto-Owners | $211 |
| New Jersey | Geico | $565 |
| New Mexico | Central Mutual Insurance | $275 |
| New York | Progressive | $766 |
| North Carolina | Nationwide | $321 |
| North Dakota | North Star | $267 |
| Ohio | Auto-Owners | $266 |
| Oklahoma | American Farmers & Ranchers | $329 |
| Oregon | State Farm | $503 |
| Pennsylvania | Travelers | $338 |
| Rhode Island | Travelers | $561 |
| South Carolina | American National | $241 |
| South Dakota | Farmers Mutual of Nebraska | $171 |
| Tennessee | Tennessee Farm Bureau | $318 |
| Texas | Texas Farm Bureau | $348 |
| Utah | Geico | $471 |
| Vermont | Union Mutual | $200 |
| Virginia | Allstate | $414 |
| Washington | Pemco Mutual | $271 |
| West Virginia | Erie Insurance | $293 |
| Wisconsin | Erie Insurance | $292 |
| Wyoming | Geico | $188 |
Although USAA had the lowest rates in many states, because coverage is only available to military members and their families, its cost data is not included in this table.
States with the cheapest full coverage car insurance rates
The cheapest full coverage auto insurance rates in each state are listed below. Each row includes the cheapest company as well as estimated annual costs for the lowest rate in each state:
| State | Cheapest Car Insurance Company* | Cheapest Full Coverage Rate (Annual Estimate) |
|---|---|---|
| Alabama | Nationwide | $1,108 |
| Alaska | Geico | $1,084 |
| Arizona | Geico | $1,071 |
| Arkansas | State Farm | $1,223 |
| California | Progressive | $1,460 |
| Colorado | Geico | $1,119 |
| Connecticut | Geico | $891 |
| Delaware | State Farm | $1,265 |
| District of Columbia | Geico | $939 |
| Florida | Geico | $1,937 |
| Georgia | Geico | $1,238 |
| Hawaii | Allstate | $1,404 |
| Idaho | State Farm | $679 |
| Illinois | Country Financial | $994 |
| Indiana | Geico | $806 |
| Iowa | State Farm | $843 |
| Kansas | Nationwide | $961 |
| Kentucky | Geico | $1,127 |
| Louisiana | Southern Farm Bureau | $1,960 |
| Maine | Auto-Owners | $557 |
| Maryland | Geico | $1,100 |
| Massachusetts | Progressive | $1,922 |
| Michigan | Progressive | $1,530 |
| Minnesota | State Farm | $1,228 |
| Mississippi | National General | $910 |
| Missouri | State Farm | $1,339 |
| Montana | Progressive | $998 |
| Nebraska | Farmers Mutual Ins Co of NE | $1,261 |
| Nevada | Geico | $1,243 |
| New Hampshire | State Farm | $851 |
| New Jersey | Geico | $1,359 |
| New Mexico | Geico | $973 |
| New York | Progressive | $1,300 |
| North Carolina | Nationwide | $968 |
| North Dakota | State Farm | $1,109 |
| Ohio | Grange Mutual | $738 |
| Oklahoma | State Farm | $1,251 |
| Oregon | State Farm | $1,000 |
| Pennsylvania | Nationwide | $1,107 |
| Rhode Island | Geico | $1,429 |
| South Carolina | American National | $678 |
| South Dakota | American Family | $1,288 |
| Tennessee | State Farm | $1,042 |
| Texas | Texas Farm Bureau | $1,013 |
| Utah | Geico | $978 |
| Vermont | State Farm | $757 |
| Virginia | Erie Insurance | $941 |
| Washington | Pemco Mutual | $1,193 |
| West Virginia | Nationwide | $1,031 |
| Wisconsin | Geico | $738 |
| Wyoming | American National | $877 |
Although USAA had the lowest rates in many states, because coverage is only available to military members and their families, its cost data is not included in this table.
Cheapest Auto Insurance Quotes
While the information we've provided about insurance providers should help you find the best costs available, you won't know for sure until you start getting online quotes. In addition to location and coverage degree, auto insurance companies consider additional personalized factors when determining how much you should pay for a policy.
We break down the cheapest car insurance quotes for drivers who fall into several categories that are important when determining car insurance rates, such as age, driving history, and credit score, in the sections below.
1. Car Insurance Rates by Age
Car insurance rates are heavily influenced by age. We highlight the cheapest car insurance rates for young drivers and seniors who are over the age of 65 in the sections below.
Cheapest Car Insurance for Youth
We've highlighted the cheapest car insurance rates for young drivers below, broken down by age cohort.
Car Insurance for 16-Year-Olds at the cheapest Price
Individual full coverage policies for sixteen-year-olds cost an average of $6,912 per year. Erie, Auto-Owners, and State Farm, on the other hand, provide the cheapest full coverage car insurance for 16-year-olds:
| Car Insurance Company | Annual Rate Estimate | Monthly Rate Estimate |
|---|---|---|
| Erie | $3,410 | $284 |
| Auto-Owners | $3,533 | $294 |
| State Farm | $4,146 | $346 |
| Geico | $4,466 | $372 |
| Nationwide | $4,567 | $381 |
Car Insurance for 18-Year-Olds at the Cheapest Price
According to our estimates, 18-year-olds pay an average of $4,958 per year for insurance. For a full coverage policy, Erie, USAA, Auto-Owners, and Geico have the lowest rates for 18-year-olds:
| Car Insurance Company | Annual Rate Estimate | Monthly Rate Estimate |
|---|---|---|
| Erie | $2,888 | $241 |
| USAA | $2,897 | $241 |
| Auto-Owners | $2,923 | $244 |
| Geico | $3,161 | $263 |
| State Farm | $3,340 | $278 |
Car Insurance for 21-Year-Olds at the cheapest Price
Full coverage car insurance costs $2,786 per year on average for 21-year-olds. USAA, Geico, and Auto Owners provide the most affordable car insurance rates for 21-year-olds:
| Car Insurance Company | Annual Rate Estimate | Monthly Rate Estimate |
|---|---|---|
| USAA | $1,609 | $134 |
| Geico | $1,844 | $154 |
| Auto-Owners | $2,074 | $173 |
| Erie | $2,103 | $175 |
| Nationwide | $2,147 | $179 |
Car Insurance for 25-Year-Olds at the cheapest Price
According to our estimates, full coverage car insurance costs $2,019 per year on average for 25-year-olds, which is only slightly more than for middle-aged drivers. However, USAA, Geico, and Erie provide the most affordable auto insurance rates for 25-year-old drivers:
| Car Insurance Company | Annual Rate Estimate | Monthly Rate Estimate |
|---|---|---|
| USAA | $1,292 | $108 |
| Geico | $1,420 | $118 |
| Erie Insurance | $1,523 | $127 |
| Nationwide | $1,556 | $130 |
| Auto-Owners | $1,590 | $132 |
Car Insurance for Seniors at the cheapest Price
Auto insurance rates for drivers entering their senior years rise slightly as the risk of an accident rises. The national average for 65-year-olds is around $1,648 per year, but USAA, Erie, and Geico have lower rates:
| Car Insurance Company | Annual Rate Estimate | Monthly Rate Estimate |
|---|---|---|
| USAA | $1,057 | $88 |
| Erie Insurance | $1,219 | $102 |
| Geico | $1,227 | $102 |
| Auto-Owners | $1,247 | $104 |
| Nationwide | $1,263 | $105 |
The cheapest Car Insurance for High-Risk Drivers
Not everyone has the ideal driving record and situation to qualify for the lowest rates. The sections below show the average full coverage car insurance rates for drivers with a recent accident, speeding ticket, or DUI from some popular providers.
Cheapest Car Insurance Following a DUI
The following are the cheapest monthly car insurance rates for drivers with one DUI versus rates for those without a DUI:
| Insurance Company | Monthly Estimate for 1 DUI | Monthly Estimate for No DUI |
|---|---|---|
| USAA | $186 | $97 |
| Nationwide | $239 | $108 |
| Geico | $281 | $113 |
| State Farm | $182 | $125 |
| Progressive | $194 | $148 |
| Allstate | $299 | $193 |
After a single DUI, the average car insurance rate rises by more than 60% nationwide. This figure varies by region of the country and among providers.
Cheapest Insurance for Accident-Affected Drivers
For drivers who have recently been in an accident, USAA, State Farm, and Geico have the lowest car insurance rates.
| Car Insurance Company | Monthly Rate Estimate | Annual Rate Estimate |
|---|---|---|
| USAA | $138 | $1,647 |
| State Farm | $157 | $1,882 |
| Geico | $197 | $2,364 |
| Progressive | $235 | $2,822 |
| Nationwide | $172 | $2,063 |
| Allstate | $300 | $3,598 |
Cheapest Speeding Ticket Insurance
For those who have recently received a speeding ticket, USAA, State Farm, and Geico offer the most affordable car insurance rates:
| Car Insurance Company | Monthly Cost Estimate | Annual Cost Estimate |
|---|---|---|
| USAA | $118 | $1,413 |
| State Farm | $150 | $1,794 |
| Geico | $155 | $1,856 |
| Progressive | $193 | $2,311 |
| American Family | $172 | $2,061 |
| Nationwide | $138 | $1,656 |
Cheapest Car Insurance for Bad Credit Drivers
A low credit score can make it difficult to obtain low-cost car insurance. Many insurance companies use credit-based insurance scores to help calculate auto insurance rates for drivers in states where the practice is legal.
Here's how rate estimates for some of the top providers differ depending on whether drivers have good or bad credit:
| Car Insurance Company | Monthly Cost Estimate with Fair Credit | Monthly Cost Estimate with Poor Credit* | Rate Increase for Poor Credit |
|---|---|---|---|
| USAA | $98 | $151 | 0.54 |
| Geico | $132 | $173 | 0.31 |
| Progressive | $144 | $210 | 0.46 |
| Nationwide | $151 | $186 | 0.23 |
| State Farm | $153 | $301 | 0.97 |
| Allstate | $235 | $314 | 0.34 |
In California, Hawaii, Massachusetts, and Michigan, insurers are not permitted to use credit scores to help determine auto insurance rates (these states were excluded from this part of our analysis).
2. The most affordable car insurance rates in each category
The following are in-depth reviews of our top picks for the cheapest car insurance companies based on average rate estimates. The following providers stand out from the crowd due to the high quality of their coverage, discounts, customer service, and industry reputations.
#1 USAA: Affordability for Military Families
While USAA is available in all 50 states and Washington, D.C., only veterans, active-duty military members, reservists, and their immediate families are eligible. If you meet the requirements, compare quotes from this company when you're shopping around.
Despite its limited availability, USAA ranks as the fifth-largest auto insurance provider in the United States, according to the National Association of Insurance Commissioners (NAIC). USAA provides the following car insurance discounts, among others:
• Military installation
• Drive carefully.
• excellent student
• Low mileage
• Multi-vehicle coverage
In addition to offering low-cost policies, USAA is one of the most reputable providers in the industry, with some of the highest customer satisfaction ratings. Here are a few more reasons why we like USAA:
AM Best has assigned the insurer an A++ financial strength rating, indicating that it has a superior ability to pay customer claims.
The Better Business Bureau (BBB) has given USAA an A+ rating, indicating that the company follows sound business practices and works to resolve customer complaints.
The second-highest score in the J.D. Power 2022 survey. Insurance Shopping in the United StatesSM
In our 2022 car insurance survey, we had the highest percentage of very satisfied customers.
Accident forgiveness, guaranteed asset protection (gap), car replacement assistance (CRA), and telematics insurance are all available.
Although USAA has the highest customer satisfaction score in most regions, J.D. Power does not rank it with other insurance providers due to specific criteria.
#2 Erie Insurance: Reasonably Priced Basic Coverage
Basic Coverage is Reasonably Priced:
According to our research, Erie Insurance is one of the most affordable insurance providers for a wide range of drivers. In addition, the company has a respectable range of coverage levels and a strong reputation for customer service.
The Erie Rate Lock program allows eligible customers to avoid premium increases that occur over time. In this program, policyholders' rates can only rise for three reasons: adding or removing a vehicle, adding or removing someone from the policy, or changing addresses. Drivers who participate in the Rate Lock program will not see their rates increase if they file a claim or receive a ticket.
Aside from the Rate Lock program, Erie offers many of the same policy discounts as larger national providers, such as discounts for:
• Having an anti-theft device or anti-lock brakes on your vehicle
• Driving safely as an elderly or inexperienced driver
• Insurance policy bundles (25%)
• Being a first-time driver (20%)
Erie Insurance is ideal for drivers with a clean driving record and a high credit score. If you fit this description, Erie auto insurance can be very affordable.
Here are some additional reasons why we recommend Erie:
• AM Best gives AM Best a financial strength rating of A+.
• The BBB gave it an A+.
• According to the J.D. Power Auto Insurance study, the North Central and Mid-Atlantic U.S. regions have the highest overall customer satisfaction, while the Southeast region has the lowest.
• According to the J.D. Power Insurance Shopping study, midsize insurers rank second in overall customer satisfaction.
• Accident forgiveness, non-standard vehicle coverage, and pet injury coverage are all available.
Erie Insurance is available in 12 states and Washington:
| Illinois | Indiana | Kentucky | Maryland |
|---|---|---|---|
| New York | North Carolina | Ohio | Pennsylvania |
| Tennessee | Virginia | West Virginia | Wisconsin |
#3 Geico: Reasonably priced for the majority of drivers
Most Drivers Can Afford it:
Most drivers should consider Geico when looking for the cheapest car insurance because USAA has eligibility requirements and Erie Insurance is regional. Geico is one of the top providers we've looked at. It has high ratings from policyholders who are pleased with Geico's customer service and are likely to recommend the company to others looking for car insurance.
Behind State Farm, Geico is the second-largest car insurance provider in the United States and the second-most popular provider in our 2022 car insurance survey. The insurer can be an excellent choice for both full coverage policies and the bare minimum required by your state.
Geico may offer cheap car insurance to drivers in all 50 states, but drivers with a history of accidents may find better deals from other companies. Geico offers notable discounts such as a 25% savings on multiple vehicle insurance and a 15% student discount.
Here are a few more reasons why we like Geico:
• AM Best gives AM Best a financial strength rating of A++.
• The BBB gave it an A+.
• The Central, Northwest, and New York regions of the United States ranked third in overall customer satisfaction (J.D. Power Auto Insurance study).
• According to the same study, it is higher than the industry average in California, Florida, New England, North Central, and Southwest regions.
• In our 2022 car insurance survey, 79% of policyholders were satisfied.
• Mechanical breakdown insurance and usage-based insurance are both available.
• Appreciated mobile app.
#4 State Farm: Student-Friendly
Editor's Pick:
When looking for the cheapest car insurance, State Farm is another excellent option. State Farm has grown to become the largest insurance provider in the United States since its inception in 1922. The NAIC estimates that the company will write more than $41.6 billion in premiums in 2021.
At that scale, State Farm can provide a variety of coverage levels that will satisfy the majority of drivers. In addition, the company has a large national network of local agents, so there is likely an agent in your area who can help you compare rates.
State Farm received an 8.9 out of 10.0 rating in the coverage category due to its wide range of options. The company provides rideshare insurance, roadside assistance, accident forgiveness, and other services. State Farm also offers several discounts, including:
• Multi-vehicle
• Multiple policies
• Theft deterrent
• Free of mishaps
We discovered State Farm to be one of the most cost-effective options for students in particular. The company provides the industry's largest student discount (up to 25%). Young drivers can benefit from State Farm's Steer Clear program to improve their driving skills and receive additional discounts. Policyholders can also participate in programs such as Drive Safe & Save, which allows them to convert good driving habits into lower rates.
Here are a few more highlights from State Farm:
• AM Best's financial strength rating is A++.
• Large insurers rank first in overall customer satisfaction (J.D. Power Insurance Shopping study).
• More than 13% of respondents in our 2022 car insurance survey used it, the highest of any provider.
• Our survey found that 90% of customers were satisfied with their coverage.
• Provides rideshare insurance, usage-based insurance, classic car insurance, and other services.
#5 Progressive: Low-Cost Insurance for High-Risk Drivers
Low Insurance Rates for High-Risk Drivers:
Progressive, the nation's third-largest auto insurance company, insures millions of vehicles each year and can be one of the most affordable options for coverage. When compared to competitors, drivers with little experience or those with DWIs or DUIs on their records can generally find cheap car insurance with Progressive.
Progressive also offers a teen driver discount, a multi-car discount that can save you up to 12%, and a pay-in-full discount for paying your entire premium up front.
Here are a few more positive aspects of the auto insurance provider:
• AM Best's financial strength rating is A+.
• More than 74% of policyholders expressed satisfaction in our 2022 survey.
• Custom parts coverage, loan/lease payoff, and usage-based insurance options.
How to Get the cheapest Car Insurance in 2023
You don't have to pay a lot for auto insurance just because you're required to have it. There are steps you can take to increase your chances of finding cheap car insurance, allowing you to protect both your vehicle and your wallet.
Take Advantage of Savings with car insurance companies discounts
Most policyholders save the most money by taking advantage of car insurance discounts offered by providers. When shopping for insurance, look for the company that offers the best discounts to you.
You can also inquire with your current provider about available discounts.
Typical discounts include:
Military: This applies whether you are an active military member or a veteran.
Senior: Usually reserved for policyholders aged 55 and up.
Homeowners: If you have a mortgage, you may be eligible for this discount.
Good student: A college or high school student under the age of 25 who maintains a B average in their courses.
Good driver: This term refers to drivers who have a clean driving record (no speeding tickets, DUIs or at-fault accidents in the last three years)
Safe car: You may be eligible for this if your vehicle has safety features such as automatic braking or anti-theft technology.
Multi-policy: Combining two or more insurance policies, such as adding a homeowners or renters policy to your auto coverage.
Multi-vehicle: Insuring multiple vehicles on the same policy or combining auto policies with roommates or family members.
Other Ways to Get Cheaper Car Insurance rates in 2023
Aside from discounts, there are some things you can do to help save money on car insurance:
| Try usage-based programs | You are less likely to be involved in an accident if you drive less than the average person. Usage-based programs use an app, plug-in device, or Bluetooth beacon to track your mileage or safe driving habits. |
| Pay your premium annually or biannually | Most providers offer annual, biannual or monthly payment options. Providers often give slight discounts for paying in full for the entire year or every six months. |
| Increase your deductible | Because your rates are determined by your deductible, increasing your deductible is usually a good way to lower your premium. However, increasing your deductible means you'll have more out-of-pocket expenses if you need to file a claim, so make sure you're comfortable with the financial risk. |
| Review your coverage regularly | When it comes time to renew your policy, go over it again to see if there are any areas where you can make changes to better suit your needs. You can also compare quotes to make sure you're getting the best deal. |
| Get a quote after improving your driving record | Between three and five years after a citation or accident, shop around for new quotes. Previous infractions on your driving record may no longer be visible. |
| Capitalize on major life changes | You may find rates if you get married, send a student off to college, buy a home or have another major life change. |
| Improve your driver profile | Because safe drivers with clean records are less likely to file claims, insurance companies reward them with lower rates. Taking a driver safety course can help you improve your driving profile. |
| Improve your credit score | Because most states allow credit-based insurance scoring, if you improve your credit score, you can lower your rates over time. |
| Drive a vehicle that costs less to insure | Some models are more expensive to insure than others, so consider how much it will cost to insure vehicles you're interested in when shopping for one. |
| Shop around for quotes | Comparing coverage and rates from different companies is a simple way to find the cheapest car insurance. |
| Consider local providers | Local agents and smaller providers may be able to offer lower rates on occasion, as large insurers are not always the most cost-effective option. |
| Opt for less coverage | While choosing less coverage carries more risk, purchasing a minimum coverage policy can save you a significant amount on car insurance. Comprehensive and collision coverage only pay up to the current value of your vehicle, less the deductible. If you drive an older car worth a few thousand dollars or less, you may not need this type of coverage. Examine your financial situation to determine whether it is worthwhile to risk higher out-of-pocket expenses in order to lower your rates. A good rule of thumb is to obtain liability limits that are comparable to your net worth. You should still have enough coverage to meet the legal requirements of your state. |
Car Insurance rates and quotes in USA insurance companies
According to our cost estimate data, the average 35-year-old driver with good credit and a clean driving record will pay approximately $1,816 per year or $151 per month for full coverage car insurance in 2022. The average annual rate for minimum liability coverage is $635, or $53 per month.
1. Car Insurance cheapest and most expensive rates by State
Some states offer lower-cost auto insurance than others. The table below provides an overview of how states rank in terms of average cost.
The States with the cheapest Car Insurance
The five least expensive states for full coverage car insurance are as follows:
| State | Annual Cost Estimate | Difference from National Average |
|---|---|---|
| Maine | $1,051 | -42% |
| Vermont | $1,094 | -40% |
| Ohio | $1,105 | -39% |
| Idaho | $1,169 | -36% |
| Virginia | $1,217 | -33% |
The States with the Most Expensive car Insurance
The top five most expensive states for full coverage car insurance are as follows:
| State | Annual Cost Estimate | Difference from National Average |
|---|---|---|
| Michigan | $4,133 | 1.28 |
| Florida | $3,060 | 0.69 |
| Louisiana | $2,994 | 0.65 |
| New York | $2,910 | 0.6 |
| Delaware | $2,330 | 0.28 |
A state's average price can only tell you so much. Even within the same state, auto insurance rates can vary greatly. The provider that is typically the cheapest in a state may not be the cheapest in every ZIP code.
Smaller, local companies provide the cheapest car insurance in some states. National providers provide the best rates in other areas. A company that is expensive in Nevada may have some of the best rates in Pennsylvania, and vice versa.
2. Age Differences in Car Insurance Rates
As previously stated, your age has a significant impact on the amount of car insurance you will pay. On average, teenagers and young adults pay the highest rates for car insurance. Rates tend to fall as you get older, learn to drive better, and gain more road experience.
Average rates start to fall around the age of 25, level off around the age of 35, and then rise again after the age of 65. The following chart shows how average full coverage rates change with age:
| Age | Annual Cost Estimate | Monthly Cost Estimate |
|---|---|---|
| 16 | $6,912 | $576 |
| 17 | $5,612 | $468 |
| 18 | $4,958 | $413 |
| 19 | $3,708 | $309 |
| 21 | $2,786 | $232 |
| 25 | $2,019 | $168 |
| 30 | $1,831 | $153 |
| 35 | $1,785 | $149 |
| 40 | $1,755 | $146 |
| 45 | $1,730 | $144 |
| 50 | $1,658 | $138 |
| 55 | $1,609 | $134 |
| 65 | $1,648 | $137 |
| 75 | $1,912 | $159 |
Car Insurance rates Types and requirements
The following are some of the most common car insurance coverage options and requirements:
| Type of Car Insurance Coverage | Requirements | Recommended Coverage Level |
|---|---|---|
| Property damage liability | Required in every state except New Hampshire and Virginia | Recommended per accident limits close to your net worth |
| Bodily injury liability | Required in every state except Florida, New Hampshire and Virginia | Recommended per accident limits close to your net worth |
| Collision and comprehensive | Likely required if you have auto financing or lease a vehicle | Recommended if your vehicle is valued at $3,000 or more |
| Uninsured and underinsured motorist coverage | Required in 22 states | Recommended per accident limit close to your net worth if you don't have collision and personal injury protection |
| Personal injury protection (PIP) or medical payments coverage | Required in 14 states | Recommended if you have high health deductibles, or co-pays — or if you don't have health insurance at all |
| Gap insurance | Optional unless required by the terms of your loan or lease agreement (often required if your vehicle is less than three years old) | Enough to cover the difference between the loan and the car’s depreciating value by the third year |
According to our 2022 car insurance survey, 67% of the 1,000 respondents said they typically purchase full coverage insurance, which includes liability, collision, and comprehensive coverage. Almost 37% said they would buy full coverage with low limits, while slightly more than 30% said they would buy full coverage with high limits.
Factors Influencing Car Insurance Rates
Auto insurance quotes are based on your driver profile, desired coverage level, and the discounts offered by the company. While some things are unchangeable (for example, you cannot remove an at-fault accident from your recent history), there are many factors over which you have some control.
Many of these factors have been illustrated through car insurance rates or extensively discussed throughout this article. Those looking for a comprehensive list of the factors that influence your insurance rates should consult the table below:
| Factor | How It Affects Your Car Insurance Premium |
|---|---|
| Age | As people age and gain driving experience, they have fewer accidents (up to a point). Teenagers pay the most, followed by drivers under the age of 25. |
| Driving experience | Because providers consider drivers with no recent driving history to be more risky to insure, it is typically more difficult for new drivers to obtain low-cost car insurance. Immigrants, visitors to the United States, and those with new licenses or lapses in car insurance fall into this category. It may be cheaper to stay on a family member's car insurance policy at first, until you have a more established driving record. When your policy is up for renewal, compare rates from different companies. |
| Marital status | Because married drivers have fewer accidents, they pay less for auto insurance. |
| Car make and model | Cars that are more expensive to repair are also more expensive to insure. This applies to your car's collision and comprehensive insurance. Seatbelts and air bags, for example, can have an impact on your rates. |
| Annual mileage | People who drive long distances and put a lot of miles on their cars pay more for insurance. |
| Driving record | Because insurers rely heavily on your driving record to determine pricing, maintaining a clean driving record can help you secure lower rates and good driver discounts. As a result, clean-record drivers typically pay significantly less than high-risk drivers. Infractions such as a DUI or having multiple at-fault accidents can make finding cheap car insurance more difficult (or even purchase a policy at times). Minor traffic violations, such as speeding tickets, also raise rates, albeit to a lesser extent. |
| Credit history | Having bad credit can raise rates almost as much (if not more) than being convicted of DUI. Car insurance companies can use your credit history to determine your rates in most states. In these states, bad credit will cause your rates to rise, while good credit will cause them to fall. While a credit-based score includes the same factors as a regular credit score, such as payment history and debt, the weighting of these factors differs. |
| ZIP code | Because cities have higher rates of theft, accidents, and vandalism, city drivers pay the highest rates. Parking in a garage may sometimes result in a lower rate. |
| State requirements | The amount of coverage required varies greatly by state, so you'll pay more in states that require drivers to carry more types of insurance or higher coverage limits. |
| Desired coverage | Car insurance prices rise as you add more types of coverage or choose higher coverage limits. Drivers only looking for their state’s minimum coverage (like basic liability coverage) will generally have the cheapest car insurance rates. |
| Deductible | A higher deductible lowers your premium, and vice versa. |
1. Finding cheapest Auto Insurance
Even though these factors ultimately determine your rate, keep in mind that shopping around and comparing quotes from providers is the best way to find the cheapest insurance available to you. We recommend obtaining at least three quotes to get a good idea of the pricing and coverage options.
2. Car Insurance Quote Comparison
A quote for insurance shows how much you'd pay for the level of coverage you chose over a specified time period, which is usually six months. You'll always have a variety of prices to choose from. Even if two insurers offer you the same coverage levels, one option may be significantly less expensive depending on how each company calculates its rates.
Online insurance calculators make it simple to compare insurance quotes. Quotes are free, so you can compare as many as you want.
Obtaining an auto insurance quote online is simple. It may only take a few minutes if you have all of your information at hand.
All you need to get a car insurance quote is the following information:
• Your policy's drivers
• The boundaries you desire
• Your postal code
• Your credit score
Insurance quotes are only estimates, and they may change if the insurance company discovers you provided inaccurate information. Because auto insurance quotes are only estimates, the company may contact you for additional information.
Companies also have between 30 and 90 days to make changes to insurance policies if they discover new information after you receive an initial quote.
Conclusion on the Cheapest Auto Insurance in 2023
In this article, we looked at the cheapest car insurance rates, companies, and quotes based on a variety of factors. Because prices vary so greatly, cheap auto insurance looks different for each driver.
the cheapest car insurance companies in 2023
It's always a good idea to shop around for car insurance. As a reminder, here are our top picks for low-cost car insurance:
1. Erie Insurance
2. USAA
3. Geico
4. State Farm
5. Progressive
We recommend State Farm as the Editor's Choice for most drivers due to its strong financial standings, affordability, and high customer service ratings. Get free car insurance quotes when shopping for a policy to find the cheapest car insurance for your desired level of coverage.
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Car insurance