The Cheapest Car Insurance Companies - September 2023
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State Farm is the cheapest car insurance company among large insurers, with an average minimum coverage rate of $450 per year.
State Farm also has the lowest average rates for drivers with a recent accident, speeding ticket or DUI.
Auto-Owners has the cheapest auto insurance among midsize companies, with an average rate of $337 per year and $28 per month.
Insurer availability varies, but State Farm is the cheapest option, on average, for drivers in 15 different states.
Many factors influence car insurance costs, and what you pay will probably be different than the averages included below.
Did your auto insurance rates go up? Premiums are on the rise across the U.S. The best way to find cheap car insurance is to shop around and compare quotes from at least three insurers.
With credit card debt climbing to new heights and personal savings rates in a historical basement, money-conscious drivers are left wondering: Where can I find cheap car insurance?
State Farm might be a good place to start. NerdWallet analyzed auto insurance rates from 154 car insurance companies around the country to find cheap car insurance across several categories. State Farm is the cheapest car insurance company overall, with an average rate of $37 a month for minimum coverage. It was also the cheapest in our analysis of cheap full coverage auto insurance.
But there are many things that influence how much you dish out for car insurance. Check out the table below to find the cheapest car insurance company for each category we analyzed. Select the link for each category for an expanded list of the cheapest companies.
If you want the best of the cheapest, check out NerdWallet’s roundup of the best cheap car insurance companies.
Take note: While our lists of cheap car insurance can help narrow your search, your own quotes won’t match these. That’s because car insurance companies base rates on a variety of factors unique to every driver. NerdWallet recommends you compare car insurance quotes from multiple insurers to find the best price possible. And don’t forget to ask about car insurance discounts.
The rates on this page are based on minimum coverage limits, which tend to be very low. Going with minimum car insurance is legal but may leave you financially vulnerable if you’re in a serious accident. To find cheap companies with more coverage, check out NerdWallet’s list of cheap full coverage insurance. The extra peace of mind may be worth the price.
The cheapest large car insurance company: State Farm
State Farm is the cheapest large auto insurance company in the nation for good drivers, according to NerdWallet’s 2023 analysis of minimum coverage rates. State Farm’s average annual rate was $450 or about $37 per month. The company also earned a 5-star rating from NerdWallet, and you can read our State Farm auto insurance review to learn why.
Cheapest auto insurance from the largest companies
» MORE: The best cheap car insurance
The cheapest midsize car insurance company: Auto-Owners
Finding affordable car insurance doesn’t mean you have to stick with large insurance companies. Auto-Owners and Erie, smaller insurers that offer coverage in multiple states, have even cheaper car insurance rates than State Farm.
While availability can be limited, midsize insurers may beat cheap auto insurance prices from larger companies. Plus, according to a 2022 J.D. Power auto insurance shopping study, customers are often satisfied with these companies.
We chose these companies because of their relatively low rates and availability in multiple states. But there may be more affordable auto insurance options where you live. Consider working with an insurance broker or independent agent to help compare rates with smaller, lesser known companies.
Cheapest car insurance after a speeding ticket: State Farm
A speeding ticket on your driving history will likely increase how much you pay for car insurance. According to our analysis, State Farm offers the cheapest rates after a speeding ticket, with an average annual rate of $545, or $45 per month.
Cheapest car insurance after an accident: State Farm
Depending on your driving record, the most affordable car insurance company varies. The table below shows average auto insurance rates from the largest companies for drivers with a recent accident on their driving record.
Our analysis found that State Farm has the lowest average rate for drivers with one at-fault accident, at $600 per year, or $50 per month.
Cheapest car insurance after a DUI: State Farm
A DUI on your driving record can greatly increase how much you pay for car insurance. According to our analysis, State Farm tops the list of cheapest car insurance companies after a DUI, at $817 per year, or $68 per month, on average.
Looking for even cheaper auto insurance? Try a smaller insurer. Drivers with violations like one at-fault accident or a recent DUI can find the most affordable auto insurance rates with Erie and other midsize insurers.
Cheapest auto insurance for poor credit: Geico
Many insurers also use credit-based insurance scores to help calculate car insurance rates. This can make it harder to get cheap car insurance if you have poor credit.
California, Hawaii and Massachusetts don't allow insurers to use credit when determining car insurance rates.
Credit can have a shocking impact on auto insurance costs. Drivers with poor credit may pay over $400 more a year, on average, than those with good credit.
If you’re looking for affordable car insurance from a large company, Geico might be a good place to start if your credit is mixed. Based on our analysis of large insurers, the company has the lowest average rates for good drivers with poor credit, at $870 per year, or $73 per month, on average.
Cheapest car insurance for young drivers
If you’re a young driver, you may have a hard time getting cheap car insurance. That’s because auto insurers view drivers without a recent driving history as riskier to insure. Same goes for drivers with a lapse in car insurance, immigrants and visitors to the U.S.
» MORE: Car insurance for new drivers
If you live with your family, it may be cheapest to stay on their policy until your driving history is more robust. If that’s not possible, you may want to start gathering quotes from the following companies, which have the cheapest average car insurance rates for 20-year old drivers.
Cheapest car insurance for senior drivers
Car insurance is relatively low when you first enter your golden years. According to our analysis, 60-year-old drivers with a good credit score and clean driving history enjoy some of the cheapest rates. You can chalk this up to the years of driving experience 60-year-olds have under their belt. But as you reach your 70s, rates start to creep up.
Use the table below to find the cheapest average rates for 60- and 70-year-old drivers.
» MORE: Car insurance for seniors
Cheapest car insurance by state
What counts as cheap auto insurance will be different depending on where you live, as rates vary widely from state to state.
For the sake of comparison, we found the cheapest car insurance company for minimum coverage, on average, in each state and Washington, D.C.
Average annual rate
Kentucky Farm Bureau
Southern Farm Bureau Casualty
Missouri Farm Bureau
North Carolina Farm Bureau
But state averages can tell you only so much. Even within a state, car insurance rates for minimum coverage can differ. That's why NerdWallet analyzed rates for some of the largest cities in the U.S.
Choose your city in the dropdown below to see cheap car insurance rates in your area.
How to get cheap car insurance
If you’re looking to save money by getting the cheapest possible car insurance, it’s essential to compare quotes from multiple insurers. You can use NerdWallet’s car insurance comparison tool to easily shop for cheap auto insurance online. You may find that you already have the most affordable insurance; but prices can change, so check roughly once a year.
Follow these additional tips to get cheap auto insurance rates:
Ask for discounts. There could be savings from car insurance discounts you’re not taking advantage of. For instance, maybe you now work from home and are driving less frequently than when you bought your policy. Mention that and you might get a low-mileage discount.
Cash in on major life changes. Certain life events could translate to cheaper car insurance, so shop for quotes whenever something major changes in your life. For instance, many companies offer a lower rate for married couples or domestic partners. Or perhaps you moved to a suburb with lower accident and crime rates. Even if you moved to a more expensive area for car insurance, shopping around can help you get cheaper coverage.
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.
The type of car you drive also affects how much you pay for auto insurance. Check out NerdWallet’s analysis of the cheapest cars to insure to see if your vehicle made the list.
NerdWallet averaged rates based on public filings obtained by pricing analytics company Quadrant Information Services. We examined rates for 35-year-old men and women for all ZIP codes in all 50 states and Washington, D.C. Although it’s one of the largest insurers in the country, Liberty Mutual is not included in our rates analysis due to a lack of publicly available information. Poor credit rates from The Hanover were removed in both Connecticut and New York.
In our analysis, “good drivers” had no moving violations on record; a “good driving” discount was included for this profile. Our “good” and “poor” credit rates are based on credit score approximations and do not account for proprietary scoring criteria used by insurance providers. These are average rates, and your rate will vary based on your personal details, state and insurance provider.
Sample drivers had the minimum required coverage by law in each state. Some policies include additional coverage at the insurer’s discretion.
We used a 2020 Toyota Camry L for all drivers and assumed 12,000 annual miles driven.
We used the same assumptions for all other driver profiles, with the following exceptions:
We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for drivers with poor credit.
For drivers with one at-fault crash, we added a single at-fault crash that happened six months ago, resulting in $10,000 in property damage and no bodily injury claim.
For drivers with a DUI, we added a single drunken driving violation that happened six months ago.