Finding the cheapest auto insurance company can be a great way to cut your monthly expenses. Bankrate obtained up-to-date information on premiums from Quadrant Information Services and analyzed the data to help you find low-cost auto insurance.
Auto-Owners and USAA offer the cheapest minimum coverage auto insurance on our list, with affordable rates of $382 and $384 per year, respectively.
In the US, the average cost of car insurance with minimum coverage is $565 per year, while full coverage costs $1,674 per year, on average. Choosing an auto insurer that offers the cheapest insurance coverage for your situation can help you feel more in control of your finances.
We present average rates for minimum coverage here because minimum limits tend to be the cheapest option. However, the minimum coverage provides relatively little financial protection, so you may want to consider full coverage car insurance.
What is the cheapest car insurance company?
Auto-Owners offers the cheapest average auto insurance rates, based on our analysis of minimum coverage premiums obtained from Quadrant Information Services. USAA, Amica, Erie, and Geico round out the five cheapest companies on our list.
In deciding which cheap auto insurance companies to feature, Bankrate’s insurance editorial team evaluated each company based on average quoted premiums, coverage options, discounts, policy features, and third-party ratings for satisfaction.
We combined these metrics into a Bankrate Score. Each of the companies received a score on a scale of 0.0 to 5.0. The higher the Bankrate Score, the higher a business ranks in various rating categories.
If you prefer to work with a local agent rather than using a mobile app, Auto-Owners has independent representatives in the 26 states in which it operates. The company ranks near the top of J.D. Power U.S. 2020, indicating that their customers are generally very satisfied with their claims process. Auto-Owners also offers numerous policy add-ons, so you can create a policy to suit your needs. However, Auto-Owners is not available nationally, so it may not be an option in your area.
If you are an active duty or retired military man or a close relative of someone who is, USAA is a great company to consider for cheap auto insurance rates and good coverage. The top insurer routinely receives exceptional customer satisfaction feedback from J.D. Power, although it is not officially classified due to its eligibility restrictions.
USAA has armed forces-focused discounts, such as savings for storing your car while deployed and storing your car on a military base, as well as some endorsements, including accident forgiveness and ride-sharing coverage, to help you tailor your policy to your needs. Although USAA is available nationwide, it is not an option for all drivers. If you are not eligible, you will have to look elsewhere for cheap coverage.
Although only available in 12 states and Washington D.C., Erie consistently performs well with its pricing and customer service. In addition to the standard coverage options, options such as accident forgiveness, rental reimbursement, travel expenses, and pet injury coverage are available.
Erie also has a one-time rate lockout feature that allows the policyholder to lock in their premium and coverage, although their rate will change if they make certain updates to their policy, such as adding a new vehicle or driver. Just like Auto-owners, Erie is a regional supplier. If you live in a state where coverage is not offered, the company will not be an option for auto insurance.
Farm Bureau has a relatively cheap average rate, but the company also offers solid coverage options. You can customize your policy with roadside assistance, replacement cost coverage, or the Driveology telematics program, which can help you get discounts based on your driving habits.
You can also lower your premium with savings opportunities like a good student, low mileage, and multiple cars. Farm Bureau has smaller subsections of your business in various regions of the country.
With one of the largest discount menus in the industry, it’s no wonder Geico is on our list of affordable auto insurance companies. You can save for being a federal employee, a member of the military, a good student, a safe driver, or a member of certain organizations.
Geico could also be a great option for you if you want to manage your insurance digitally. The company took first place in 2021 J.D. Power U.S. Insurance Digital Experience Study for the Service category.
However, if you want a comprehensive policy, Geico may not be the best option. The company only offers a few backup options, so it may not be able to add coverage options to suit your needs.
Due to less advertising and lower overhead costs, many smaller companies are able to offer more competitive premiums than their bigger counterparts. Although these companies may not sound as familiar as the bigger companies, getting quotes from these lesser-known insurance providers could help you find a lower premium if they offer auto insurance in your area.