The cheapest auto insurance companies are likely to be your country’s minimum car insurance requirements, so we focused our analysis on those minimums. In many states in the USA, this is liability-only auto insurance, which pays for property damage and others’ medical bills from accidents you cause.
The absolute cheapest rate we found for minimum car insurance was an average of $9 per month or $108 per year. But how much you pay for car insurance will vary depending on which state you live in and how clean your driving history is, among other factors.
Here are the cheapest car insurance companies overall, plus the cheapest options for several driver types:
The cheapest car insurance company for good drivers: State Farm at $37 per month, on average
The cheapest midsize insurance company: Auto-Owners at $28 per month, on average.
The cheapest car insurance after a speeding ticket: State Farm at $45 per month, on average.
The cheapest car insurance after an accident: State Farm at $50 per month, on average.
The cheapest car insurance after a DUI: State Farm at $68 per month, on average.
The cheapest car insurance for poor credit: Geico at $73 per month, on average.
If you want the best of the cheapest, check out NerdWallet’s roundup of the best cheap car insurance companies.
READ ALSO: cheapest places to study abroad
List of the cheapest auto insurance companies
State farm
State Farm’s average annual premium is $1,123 per year for a full coverage policy. This average does not account for discounts and State Farm customers could save even more if they qualify.
State Farm offers more than 10 discount options, including almost all common major discounts: bundling insurance policies, insuring multiple cars, safe driving, anti-theft and airbag systems. The company also offers less common discounts, such as taking a defensive driving course or owning a new vehicle.
GEICO
GEICO is the cheapest company for a minimum coverage policy with an average rate of $513 per year — not including discounts. Taking advantage of GEICO’s elective discounts can save you even more.
For example, you can save on your premium by taking defensive driving or driver’s education courses. If you’re a member of an alumni or professional organization that partners with GEICO, you could be eligible for even more savings.
Progressive
On average, Opportunity den found out that Progressive offers the most affordable rates for drivers with a DUI.
Though the company doesn’t offer some of the most common discounts on the market, like savings for anti-theft systems or defensive driving courses, it still has plenty of opportunities to save. For example, if you pay your policy in full online and opt for paperless and automatic billing, you can receive money off your annual premium. Progressive also provides discounts for bundling home and auto insurance or owning a home, meaning that homeowners have extra opportunities to save.
Cheapest auto Insurance companies for Young Drivers
Insurance companies consider inexperienced student drivers as high-risk. For this reason, teen and student drivers can expect higher insurance rates.
The best chance to keep teen driver premiums low is to add them to a parent’s policy rather than having a policy of their own. The average annual premium for a policy with the addition of a young driver is $3,332 compared to $1,424 for an average driver.
All State and State Farm offer the cheapest rates when adding a young driver to your policy, according to MoneyGeek data.
All State
Allstate is the cheapest car insurance for students, with an average annual premium of $2,980 when added to a family policy. Allstate offers its policyholders teenSMART, a driving skills training program that helps reduce collision risk.
Additionally, parents of students also have several ways to save when they buy an Allstate policy. A full-time student who gets good grades qualifies for a discount. They may also be eligible for a distant student discount if they attend a school more than 100 miles away from where the car is garaged.
things to consider when finding Cheap Auto Insurance
- Can low-cost car insurance mean drivers are sacrificing quality?
- What steps can drivers take to lower their car insurance costs?
- What is the best way for drivers to fit auto insurance expenses into their budget?
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