The Cheapest Car Insurance Companies - December 2023
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State Farm is the cheapest car insurance company among large insurers, with an average minimum rate of $37 per month.
Auto-Owners has the cheapest auto insurance among midsize companies, with an average rate of $28 per month.
Insurer availability varies, but State Farm is the cheapest option, on average, for drivers in 15 different states.
Wanting cheap car insurance in this economy can seem like a no-brainer. But every company is different, and what’s cheapest for one driver may not be cheapest for you. That’s why NerdWallet did the legwork for you. We 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 according to NerdWallet’s analysis, 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.
Check out the table below to find the cheapest car insurance company for each category we analyzed.
If you want the best of the cheapest, check out NerdWallet’s roundup of the best cheap car insurance companies.
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.
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 cheap 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 often find the most affordable auto insurance rates with 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, here are six things you can try:
Compare quotes from multiple insurers. 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.
Ask for discounts. You could save money from car insurance discounts you’re not taking advantage of. For example, maybe you work from home and don’t drive much. Mention that and you might get a low-mileage discount. Other common discounts are given for bundling car insurance with homeowners insurance, insuring multiple cars on the same policy and being a student.
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.
Raise your deductible. The higher your deductible, the more you pay out of pocket before insurance pays for a covered claim. The upside is that by raising your deductible, you’ll usually be able to lower your premium. Just make sure you have enough money set aside to cover the higher deductible if you ever get in an accident.
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.
Reconsider the car you drive. The type of car you drive affects how much you pay for auto insurance. For example, new and expensive cars tend to cost more to insure than older or less expensive cars, among other factors. Check out NerdWallet’s analysis of the cheapest cars to insure to see if your vehicle made the list.
Risks of getting cheap car insurance
Getting cheap car insurance usually means getting the barest coverage required by law in your state. But state requirements can be quite low and leave you financially vulnerable if you’re in a serious accident.
For example, in Florida, the minimum required property damage liability insurance is $10,000. This type of coverage is required in nearly every state and pays for damage you cause to other people’s stuff — like their car. That means if you live in Florida, have minimum coverage and total someone else’s vehicle in an accident, you’ll be on the hook to pay for any costs over $10,000.
Getting the cheapest car insurance possible might also mean missing out on optional coverage types that can help cover your own injuries or property damage — for example, when you’re injured in an accident or if your car is banged up after a bad storm or a hit and run. To find cheap car insurance with more coverage, check out NerdWallet’s list of cheap full coverage insurance.
Why you can trust NerdWallet
Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate outliers and inaccuracies in pricing data, which include rates from every ZIP code in the country where coverage is offered and data is available. When comparing rates for different coverage amounts, ages and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing. Read our methodology below.
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.