Best Cheap Car Insurance of the Year – In many states, the cheapest option is liability-only auto insurance. This type of car insurance covers you for damage and injuries caused by an accident that’s your fault—but won’t help pay to fix anyone else’s vehicle or treat their medical bills if they get hurt in a crash with you.
The absolute cheapest rate we found for minimum car insurance was $29 per month. But how much you pay for car insurance will vary depending on where you live and what kind of driving record you have, among other factors.
Here are the five cheapest companies overall, as well as some tips on which one is best for you:
- The cheapest car insurance company overall: Geico at $29 per month, on average.
- The cheapest regional car insurance company: Central Insurance at $21 per month, on average.
- The cheapest car insurance after an accident: Geico at $48 per month, on average.
- The cheapest car insurance after a DUI: American Family at $60 per month, on average.
- The cheapest car insurance for poor credit: Geico at $42 per month, on average.
The cheapest car insurance company overall: Geico
According to NerdWallet’s analysis, Geico is the cheapest major auto insurance company in the nation. The average annual rate was $354—about $29 per month.
NerdWallet gives the company a 4.5-star rating, and you can read our Geico auto insurance review to learn more about it.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| 1. Geico | $354 | $29 |
| 2. State Farm | $452 | $38 |
| 3. Progressive | $619 | $52 |
| 4. Farmers | $620 | $52 |
| 5. Allstate | $666 | $55 |
| USAA* | $356 | $30 |
| *USAA auto insurance is available only to military, veterans and their families. | ||
» MORE : 10 Largest Online Auto Insurance
The cheapest regional car insurance company: Central Insurance
Even with the best auto insurance rates, you should also look into smaller insurers like Central Insurance, MMG and Secura. These companies offer cheap coverage for drivers in multiple states—and often have lower car insurance costs than Geico.
Cheap auto insurance prices may be available from regional or small providers. These insurers often have better customer service than the giants do.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| 1. Central Insurance | $257 | $21 |
| 2. MMG | $287 | $24 |
| 3. Secura | $319 | $27 |
| 4. Hastings Mutual | $428 | $36 |
| 5. Mutual of Enumclaw | $499 | $42 |
While these companies offer low rates, they may not be the best option for you.
Cheapest car insurance after an accident: Geico
The table below shows average rates for car insurance from the largest companies for drivers who’ve had a recent accident on their records.
Geico’s average annual rate for drivers with one at-fault accident—$577 per year, or $48 per month—was the lowest.
| Company | Average annual rate after one at-fault accident |
|---|---|
| 1. Geico | $577 |
| 2. State Farm | $618 |
| 3. Travelers | $634 |
| 4. American Family | $651 |
| 5. Nationwide | $901 |
| USAA* | $535 |
Note !!
*USAA auto insurance is available only to military, veterans and their families.
Cheapest car insurance after a DUI: American Family
American Family is the most affordable car insurance company for someone with a DUI on their record—their annual rates average $716, or $60 per month.
| Company | Average annual rate after one DUI |
|---|---|
| 1. American Family | $716 |
| 2. Travelers | $754 |
| 3. Progressive | $755 |
| 4. State Farm | $839 |
| 5. Farmers | $905 |
| USAA* | $621 |
Note !!
*USAA auto insurance is available only to military, veterans and their families.
For even more affordable auto insurance, go with a smaller insurer. Drivers who have had one at-fault accident or were convicted of driving under the influence in recent years can find better rates with local insurers rather than national ones like Geico or State Farm.
Car insurance rates vary based on many factors. Be sure to compare quotes from at least three insurers to find the cheapest auto insurance for you.
Cheapest auto insurance for poor credit: Geico
To determine car insurance rates, insurers often use a credit-based insurance score. This makes it harder to obtain cheap car insurance with poor credit in many states.
Credit-based scores weigh factors like debt and payment history differently than regular credit scores. Four states—California, Hawaii, Massachusetts and Michigan—already ban insurers from using your score when setting rates for car insurance.
Credit is one of the main factors that can determine how much you pay for insurance. Drivers with poor credit may be paying an average of $400 more a year than those with good credit.
The company has the lowest average rates for good drivers with poor credit, at $501 per year—or just over $42 a month on average.
Still, you should always shop around to get the best car insurance rates, no matter your credit history.
| Company | Average annual rate for drivers with poor credit |
|---|---|
| 1. Geico | $501 |
| 2. Nationwide | $775 |
| 3. Travelers | $803 |
| 4. Allstate | $916 |
| 5. American Family | $952 |
| USAA* | $626 |
| * USAA auto insurance is available only to military, veterans and their families. | |
Cheapest car insurance by state
The definition of “cheap car insurance” varies by state. For our survey, we compared quotes from the cheapest insurer in each state and Washington D.C.—the results may surprise you!
| State | Cheapest company | Average annual rate |
|---|---|---|
| Alabama | Geico | $261 |
| Alaska | Geico | $274 |
| Arizona | Geico | $272 |
| Arkansas | Southern Farm Bureau Insurance | $261 |
| California | Geico | $374 |
| Colorado | American National | $192 |
| Connecticut | Geico | $421 |
| Delaware | Geico | $568 |
| Florida | Geico | $704 |
| Georgia | Auto-Owners | $314 |
| Hawaii | Geico | $285 |
| Idaho | American National | $135 |
| Illinois | Pekin | $234 |
| Indiana | Pekin | $195 |
| Iowa | Western National | $164 |
| Kansas | State Farm | $322 |
| Kentucky | Kentucky Farm Bureau | $389 |
| Louisiana | Geico | $443 |
| Maine | Geico | $176 |
| Maryland | Geico | $559 |
| Massachusetts | State Farm | $209 |
| Michigan | Travelers | $106 |
| Minnesota | North Star | $259 |
| Mississippi | State Farm | $337 |
| Missouri | Columbia | $289 |
| Montana | State Farm | $213 |
| Nebraska | EMC | $181 |
| Nevada | Geico | $329 |
| New Hampshire | MMG | $209 |
| New Jersey | Amica | $539 |
| New Mexico | Central Insurance | $224 |
| New York | Main Street America | $572 |
| North Carolina | Geico | $278 |
| North Dakota | Nodak | $174 |
| Ohio | Erie | $211 |
| Oklahoma | Geico | $247 |
| Oregon | State Farm | $443 |
| Pennsylvania | Geico | $181 |
| Rhode Island | State Farm | $310 |
| South Carolina | American National | $217 |
| South Dakota | Farmers Mutual of Nebraska | $172 |
| Tennessee | Grange Insurance Company | $193 |
| Texas | Geico | $377 |
| Utah | Geico | $305 |
| Vermont | Union Mutual | $182 |
| Virginia | Geico | $305 |
| Washington | Grange Insurance Association | $327 |
| Washington, D.C. | Geico | $374 |
| West Virginia | Erie | $298 |
| Wisconsin | Geico | $203 |
| Wyoming | Geico | $170 |
How to find cheap car insurance for new drivers
For new drivers, getting cheap car insurance can be difficult. That’s because auto insurers view them as riskier to insure than experienced drivers with a recent driving history
To save money on car insurance, you should compare policies from several companies at least once a year. If your family already has an auto policy, it may be more affordable to add yourself to that coverage instead of obtaining separate insurance immediately after getting your license.
How to get cheap car insurance
The following tips could help you save money on your auto insurance premiums:
- Ask for discounts. Take advantage of the fact that you’re now driving less frequently than when you bought your policy, and mention it: You might get a low-mileage discount!
- Consider raising your deductible. A higher deductible can lower the cost of car insurance if you don’t drive much and are willing to risk having to pay more out-of-pocket for repairs. If you increase your deductible, you’ll pay more in the event that your car is damaged or stolen. But raising it will result in much lower insurance premiums for comprehensive and collision coverage.
- Know when to drop coverage. Don’t eliminate entire coverages just for the sake of cheap auto insurance, but if you drive an older car, you can probably waive collision and comprehensive—these pay out only up to your car’s current value minus deductible anyway.
- Cash in on major life changes. You can save money on car insurance by shopping around whenever there’s been a major change in your life. For example, many companies offer lower rates for married couples or domestic partners. Even if you moved to a more expensive area for car insurance, shopping around can help you get cheaper coverage—or perhaps even find one that offers better rates for people with your driving history.
- Revisit quotes after your driving record improves. Shop for cheap car insurance quotes online three to five years after any accidents, tickets or moving violations. They may have dropped off your driving record.
