Car insurance rates are climbing, but that doesn’t mean you have to break the bank to stay covered. If you’re on the hunt for the cheapest car insurance, you’ve landed in the right place. We’ve analyzed premiums from top insurers across the U.S. to help you find the most budget-friendly options—without sacrificing quality coverage.
Who Offers the Cheapest Car Insurance?
Among national insurers, USAA, Erie, Auto-Owners, and Nationwide consistently offer the most competitive rates. However, factors like location, driving history, and credit score heavily influence the final cost of your policy.
| Rank | Company | Average Annual Rate |
|---|---|---|
| 🏆 1 | USAA | $1,335* |
| 🥈 2 | Erie Insurance | $1,532 |
| 🥉 3 | Auto-Owners | $1,619 |
| 4 | Nationwide | $1,621 |
| 5 | Geico | $1,778 |
| 6 | Progressive | $1,848 |
| 7 | State Farm | $2,150 |
| 8 | American Family | $2,170 |
| 9 | Farmers | $3,253 |
| 10 | Allstate | $3,374 |
*USAA is only available to military members, veterans, and their families.
Cheapest Car Insurance Based on Your Situation
Your insurance rate isn’t one-size-fits-all. Different insurers offer better rates depending on your personal circumstances.
For Good Drivers 🚗💨
- Best option: Erie Insurance – $1,532/year
- Runner-up: USAA – $1,335/year
A clean driving record can unlock significant savings. Erie consistently offers lower premiums for responsible drivers.
For Teen Drivers 🎓🚘
- Best option: Erie Insurance – $3,478 (female), $4,351 (male)
- Runner-up: Auto-Owners – $3,655 (female), $4,673 (male)
Teen drivers are expensive to insure, but Erie and Auto-Owners provide some of the most affordable options.
For Military Members 🪖
- Best option: USAA – $1,335/year
- Runner-up: Erie – $1,532/year
If you’re in the military, USAA offers the lowest rates, but if you don’t qualify, Erie is a solid alternative.
For Senior Drivers 👴🚙
- Best option: Erie Insurance – $1,224 (male), $1,277 (female)
- Runner-up: Nationwide – $1,321 (female), $1,423 (male)
Seniors often get lower rates, and Erie offers the best deals, followed closely by Nationwide.
After a DUI 🚔
- Best option: Progressive – $2,296/year
- Runner-up: Erie – $2,541/year
DUIs increase premiums significantly, but Progressive offers the most affordable rates post-violation.
For Minimum Coverage 🏁
- Best option: Erie Insurance – $1,483/year
- Runner-up: USAA – $1,272/year
Minimum coverage is the cheapest option, but it may not provide enough protection depending on your assets.
How Car Insurance Rates Vary by State
Car insurance costs differ dramatically based on where you live. Here’s a quick look at state averages:
- Most Expensive: Florida – $5,093/year, Texas – $5,234/year
- Most Affordable: Maine – $1,411/year, Ohio – $1,565/year
Local factors like accident rates, traffic congestion, and state regulations play a huge role in pricing.
How to Get the Cheapest Car Insurance
Finding cheap car insurance isn’t just about choosing the right provider—it’s about knowing how to lower your premium.
1. Compare Quotes From Multiple Insurers
Don’t settle for the first quote you get. Shop around using comparison tools like The Zebra or NerdWallet’s Insurance Marketplace.
2. Look for Discounts
Many insurers offer discounts for:
✅ Safe driving – If you have a clean record, you’ll pay less.
✅ Low mileage – Driving fewer miles each year can cut costs.
✅ Good students – Young drivers with a GPA of 3.0 or higher may qualify.
✅ Multi-policy bundling – Combining auto and home insurance can save you money.
3. Raise Your Deductible
Opting for a higher deductible (what you pay before insurance kicks in) can lower your monthly premium. Just make sure you can afford the out-of-pocket expense if you need to file a claim.
4. Maintain a Good Credit Score
In most states, a higher credit score leads to lower insurance rates. Pay your bills on time and keep debt low to qualify for the best premiums.
5. Consider Usage-Based Insurance
If you drive infrequently, insurers like Metromile or Root offer pay-per-mile plans that could save you big bucks.
Why Are Car Insurance Rates Increasing?
In 2024, the national average car insurance premium shot up 42% from the previous year. Why?
- Inflation & Cost of Car Repairs – Repair costs have skyrocketed due to supply chain issues.
- More Accidents & Risky Driving – Post-pandemic driving habits have led to increased claims.
- Extreme Weather Events – Natural disasters are causing more damage, leading to higher payouts.
Insurance companies adjust their rates based on these factors, making it essential to shop around regularly for the best deal.
Bottom Line: Who Has the Cheapest Car Insurance?
💰 Best Overall for Low Rates: USAA ($1,335) – if you qualify
💰 Best for General Consumers: Erie Insurance ($1,532)
💰 Best for High-Risk Drivers: Progressive ($2,296 after a DUI)
💰 Best for Young Drivers: Erie Insurance ($3,478 for female teens, $4,351 for males)
At the end of the day, the cheapest car insurance depends on your situation. Always compare quotes, look for discounts, and adjust your coverage to fit your budget. 🚘💨
Want to start saving today? Get a free quote from Insurify or Policygenius and see how much you can cut from your premium!