The Best Cheap Car Insurance Companies
The average annual cost of car insurance among companies in our report is $2,068. Most car insurance companies we researched have sample rates below the national average. The table below shows the cheapest insurers based on their average annual rates.
Some auto insurers have lower sample costs than others in certain driver categories. Among companies in our report, Erie, USAA, Nationwide, and Progressive are the cheapest, on average, for certain groups of drivers.
Cheapest Car Insurance for Good Drivers: USAA and Erie
Having a clean driving record – one free of traffic violations, accidents, or other infractions – can reduce your car insurance premium. That being said, insurance rates for good drivers will vary. Among the companies in our report, Erie has the lowest sample rates in this category : $1,532 per year. That’s an almost 26% savings compared to the national average.
Only those who qualify for a USAA policy will find lower rates, on average. USAA’s sample annual rate is 35% below the national average. Auto-Owners and Nationwide also have average rates that are hundreds of dollars below the national average for drivers with a clean record.
USAA writes auto insurance policies in all 50 states and Washington, D.C.
Erie sells car insurance in Washington, D.C., and the following states: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin.
Auto-Owners operates in 26 states: Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia, and Wisconsin.
Cheapest Car Insurance for Teen Drivers: Erie
Teen motorists are consistently the most expensive age group in our analysis to insure. It’s riskier to insure young and inexperienced drivers because they have higher accident rates.
- Erie has the lowest sample annual rates for 17-year-old female ($3,478) and male ($4,351) drivers in our analysis. Those numbers are 54% below the national average for female teen drivers and 59% lower for males.
- Auto-Owners has the second-lowest sample rates for teen drivers, but policies aren’t available in every state.
- USAA has the third-lowest sample premiums, but it only sells policies to military members, veterans, and their families.
- Geico has the fourth-lowest premium, but offers policies in every state so it may be a more accessible options for teens across the country.
Cheapest Car Insurance for Senior Drivers: USAA and Erie
Senior drivers – defined in our study as married 60-year-olds – typically enjoy the lowest average car insurance rates of any age group in our analysis.
- USAA has the cheapest sample rates we found for seniors, but not everyone qualifies for its policies.
- Erie has the next-lowest average rates for senior motorists, according to our research: 73% below the national average for females and about 68% cheaper than average for males.
- Nationwide, which has a larger geographic footprint than Erie, also has affordable sample costs for female and male seniors with rates 25% and 22% below the national average, respectively.
- Auto-Owners’ average premiums are only slightly higher than Nationwide’s for female senior motorists, and are slightly lower for male drivers this age.
Cheapest Car Insurance for the Military Community: USAA
Current military members and veterans have multiple options for car insurance discounts based on their service. A number of insurers offer discounts to active-duty military members and veterans.
One company in our study, USAA, provides its car insurance products exclusively to the U.S. military community and also offers some of the lowest rates among the companies we studied across many categories.
USAA has the cheapest sample rates in our analysis for motorists with clean driving records, 35% below the national average. It’s also the cheapest option, according to our data, for those with a single speeding violation or an accident on their record. USAA also has the lowest rates we found in multiple other driver categories.
Cheapest Car Insurance After a Speeding Ticket: USAA and Erie
A speeding ticket will typically lead to an increase in your car insurance costs. Our research indicates that the average annual cost for a driver with a single speeding ticket is more than 20% higher than for a driver with a clean driving record.
- Other than USAA, Erie has the cheapest sample costs in our analysis for this group of drivers, with a rate about 30% below the national average.
- Auto-Owners and Nationwide have sample annual rates 23% and 19% below the national average, respectively, for drivers after a speeding ticket.
Cheapest Car Insurance FAQ
Who has the best car insurance?
Our rating of the best car insurance companies is topped by USAA. The rating is based not only on rate information but also on survey data, in which the company receives high marks from its policyholders in a number of categories, including customer service, claims handling, and the likelihood that a customer will renew a policy. USAA car insurance is only available to the U.S. military community.
How do I get car insurance as a new driver?
Whether you’re a new driver or a seasoned motorist, the basic process of shopping for insurance is the same:
- Determine your coverage needs: Do you have a brand new car that has been financed or leased? If so, your lender may require full coverage. If you own a 10-year-old car, you may decide to only carry the state-mandated amount of minimum liability coverage. Or you may choose something in between.
- Get quotes from at least three different companies: You can do this by checking company websites, calling a company representative, or working with a local agent.
- Apply for a policy: Depending on the insurer, you may be able to apply for and purchase a policy online within minutes; other companies may require that you work with a local agent.
- Pay for your policy: It’s often cheaper to pay your entire premium up front, but your insurance company may also offer the option of paying monthly, bimonthly, quarterly, or semi-annually. If your car is leased or financed, be sure to let your financing company know who you get your policy through.
What’s the cheapest car insurance for members of the military?
Those eligible for USAA membership can find some of the lowest annual rates on average, including for teen and senior drivers. The company’s national average rate for good drivers is $1,335, the lowest among the companies in our analysis and $733 less than the national average, a savings of 35%.
Are older cars cheaper to insure?
In general, older cars are cheaper to insure than newer ones. This is because it typically costs less to repair or replace them due to their depreciated value.
However, several factors impact your insurance premium, including your age, ZIP code, driving record, claims history, and coverage limits and deductibles. So if you drive an older car but have two at-fault accidents on your record, you could still pay more for car insurance than someone who drives a newer car but is accident free.
