Did you know that auto insurance companies can charge anywhere from $40 to $250 per month? However, the price tag doesn’t always correlate with the quality of service. Cheaper rates don’t necessarily mean poor coverage, and higher premiums don’t always equate to better service. That’s why it’s important to strike a balance between fair rates and excellent services rather than solely going for the cheapest option.
One way to save money on auto insurance without sacrificing quality service is to compare multiple quotes from different providers. But if that sounds like a hassle, don’t worry! Our team of insurance experts has already done the legwork for you. We’ve gathered and analyzed quotes from major auto insurance companies across the country and identified nine winners based on affordable rates, robust coverage options, and top-notch customer support and satisfaction with the claims process.
Below is a breakdown of what you’ll find in this quick and easy guide to cheap auto insurance companies in the United States:
- Cheapest car insurance companies for different drivers
- Factors that affect your auto insurance rates
Cheapest Car Insurance Companies for Different Drivers
Our analysis has revealed that among the top nine most affordable auto insurance companies, USAA, Geico, and State Farm stand out. They offer the most competitive rates for different types of drivers. However, it’s important to note that lower rates may not apply to all driver groups across all companies.
Some insurers may offer lower premiums to certain drivers but not to others. For instance, a company may offer cheaper rates to drivers with a speeding ticket but higher rates to teenage drivers. Let’s take a closer look at the most affordable options for different types of drivers.
Cheapest Car Insurance for those with the U.S. Military Connections: USAA
In our research, USAA stands out as the company with the lowest insurance premiums overall. However, there’s one important caveat to consider – USAA premiums are only accessible to individuals with a connection to the United States military. This includes veterans, active service members, as well as their spouses and children.
Cheapest Car Insurance for Teenagers: Geico
Geico positions itself as the best provider of low-cost car insurance for both male and female teen drivers. The national average rate for teenagers is $4,860 and Geico’s annual rate for female drivers is $3,166 and $3,555 for male drivers. In general, teen drivers with a Geico policy can save up to 35% over the national average.
|Company||Annual rates for teen female drivers||Annual rates for male teen drivers|
Cheap Car Insurance for Minimum Coverage: Geico
If you don’t have a military connection, we recommend Geico as the most affordable option for minimum car insurance coverage. While the national average for low-coverage insurance is $1,372 per year, Geico charges just $1,064 annually, making it an attractive choice for budget-conscious drivers.
|Company||Annual minimum coverage rate||Average savings|
Cheap Car Insurance for Full Coverage: Geico
You can’t go wrong with Geico if you want the best rates on a high-coverage policy. Its annual fee for full coverage is $1,238 compared to the national average of $1,518. That’s nearly 18% saved.
|Company||Annual rate for drivers with full coverage||Amount saved|
Cheapest Car Insurance for Good Drivers: Geico
Geico offers the best overall car insurance for good drivers who are not eligible for a USAA policy. Geico’s average annual rate is $1,148, meaning you could save up to $295 compared to the national average rate of $1,442. The rates for good drivers across the nine cheapest auto companies in the United States are shown below.
|Auto Insurance Company||Average Annual Rate for good drivers||Savings|
Cheap Car Insurance After an Accident: State Farm
Following an accident, drivers’ insurance rates can rise by up to 29%. The current national average rate after an accident is $2,041. On the other hand, State Farm charges $1,516 after an accident, which is significantly less than the national average.
|Company||Base rate||Rates after an accident|
Cheapest Car Insurance for Senior Drivers: Geico
When compared to other age groups, senior drivers (60 years) have the lowest premiums. In fact, their rates are usually lower than the national average. The national average for senior drivers ranges between $1,245 and $1,282. Geico’s annual rates for this age group are $1,049 for females and $1,085 for male drivers implying savings of up to 18%.
|Company||Annual rates for senior female drivers||Annual rates for senior male drivers|
Cheap Car Insurance After a Speeding Ticket: State Farm
Drivers’ premiums typically rise after receiving a speeding ticket, regardless of insurance company. According to our research, State Farm has the lowest rate increase of 11% for those issued a speeding ticket. Following a speeding ticket, most companies raise their rates by an average of 23%.
|Company||Normal rates||After speeding ticket|
Cheap Car Insurance After a DUI: State Farm
If you get a DUI, your insurance rates will almost certainly rise. While every company will undoubtedly raise rates following a DUI, State Farm’s average rates are lower than those of the other providers. In general, rates rise by 61%, while State Farm’s rates rise by 35%.
|Company||Normal rates||After DUI|
Cheap Car Insurance With Poor Credit: Geico
Driver’s with poor credit are not out of options. Geico offers them a policy for $1,810, which was the cheapest in our research. Nationwide’s policy for drivers with poor credit comes in second place, costing only 1% more ($1,837) than Geico’s.
|Company||Normal rates||Poor credit|
Cheap Car Insurance for Low-Mileage Drivers: Geico
From our data, Geico has the most affordable auto rates for low-mileage drivers. If you drive less than 6,000 miles annually, Geico can save you up to $400 yearly compared to the national average. The company’s rate for low-mileage drivers is $1,086, while the national average is $1,484.
|Company||Rates for low-mileage drivers|
Factors That Affect Your Auto Insurance Rates
Although we have furnished average rates for different driver groups, your actual insurance rate may vary. Therefore, consider these quotes as a general indication of what to anticipate, rather than exact figures. Several factors can impact your car insurance quotes, such as:
- Car type
- Insurance type and coverage
- Credit scores
- Driving record (clean, speeding ticket, accidents, DUI, etc.)
Remember that maintaining a clean driving record and comparing quotes before choosing one is the best way to get the cheapest auto insurance rates for you. From our study, USAA has the best overall rates, followed by Geico and State Farm.
Auto Insurance FAQS
Which car insurance company has the lowest prices?
USAA is the cheapest major auto insurance company based on our analysis. It has an average rate of $1,000 annually. That’s about $400 less than the national average. Geico is the next cheapest auto insurance company for those without military connections.
Is Progressive or Geico cheaper?
Both Geico and Progressive fall under the cheapest auto insurance providers category. However, Geico offers consistently lower rates for most driver groups than Progressive.
Is USAA only for the military?
Yes. USAA car insurance policies are designed for military members and their eligible family members (spouses and children).
Are people happy with Geico?
Indeed, Geico has garnered a high level of customer satisfaction and positive reviews. In our research, we had the opportunity to converse with numerous Geico policyholders who expressed satisfaction with the company’s services and would be willing to recommend it to their loved ones.