Who Has The Cheapest Auto Insurance?

Who has the cheapest auto insurance

Did you know that the exact same driver can be charged $39 a month with one car insurance company and $255 a month with another? To shop in different places and get multiple prices.

Looking for cheap car insurance? You’ve come to the right place. The minimum car insurance requirements in your state are probably the cheapest option, so we’ve focused our analysis on those minimum requirements. In many states, this policy is auto liability only, and you and we will pay for property damage and other people’s medical expenses. Caused by an accident

Who has the cheapest auto insurance?

  • For Good Drivers: Geico
  • For Teen Drivers: Geico
  • For Senior Drivers: Geico
  • For Military Community: USAA
  • After a Speeding Ticket: State Farm
  • After an Accident: State Farm
  • After a DUI: State Farm
  • Poor Credit: Geico
  • Minimum Coverage: Geico
  • Full Coverage: Geico
  • Low Mileage: Geico

The cheapest car insurance company overall: Geico

Geico is the cheapest major auto insurance company in the country, according to NerdWallet’s latest analysis of minimum coverage rates. Geico’s average annual rate was $354, or about $29 a month.

Geico’s annual rate of $1,148 is $295 less than the national average, a savings of more than 20 percent. Our latest customer survey data also shows that most Geico policyholders are satisfied with their customer service experience and are more likely to recommend the insurer to others buying auto insurance.

Accidents, speeding tickets, and other traffic violations can result in higher costs, regardless of which insurance company you choose. Keeping a clean driving record ensures that I can get the lowest rates and good driver discounts.

Cheap auto insurance from the largest companies

CompanyAverage annual rateAverage monthly rate
1. Geico$354$29
2. State Farm$452$38
3. Progressive$619$52
4. Farmers$620$52
5. Allstate$666$55

*USAA auto insurance is available only to military, veterans and their families.

Cheap Car Insurance for Military Community: USAA

Several auto insurance companies offer discounts to military personnel and their families, but if you’re a member of the military community, consider USAA.

USAA consistently offers the lowest rates in our research. At USAA, good drivers can expect fares 31% lower than the national average. USAA also explores classes in several subcategories, including teenage drivers, elderly drivers, drivers with speeding tickets or accidents, and drivers seeking minimum coverage.

If you’re considering USAA, be aware that its insurance products are limited to active duty and veteran members and their families.

Cheapest auto insurance company for a bad driving record: Erie

Erie has some of the most affordable car insurance rates for drivers with tickets or accidents on their driving record. You probably won’t find it. Erie also minimizes car insurance rate increases after a car accident. 

Most insurers increase premiums by 22% or more, but in Erie, you’ll get an average increase of 7% even if you buy a ticket. In the event of an at-fault accident, Erie increases costs by an average of 25% instead of 44%. And the average Erie DUI estimate is $188 per month, a 64 percent increase. Expect other companies to double your rates after a DUI.

Cheap Car Insurance for Senior Drivers: Geico

Men and women in our 60s have the lowest premium rates of all age groups in our survey, and annual premiums are typically lower than the national average. Seniors looking for the cheapest insurance should consider Geico, which has the lowest premiums overall in our survey.

On average, drivers in this group spend between $1,245 and $1,282 a year on auto insurance, depending on their gender. Geico costs about 18% less, ranging from $1,049 to $1,085 per year. Note that USAA’s percentage of 60-year-old drivers is significantly lower than the national average and Geico’s percentage. That’s why we recommend that qualified individuals consider USAA auto insurance first.

Cheap Car Insurance After a Speeding Ticket: State Farm

Avoiding speeding is the best way to get cheap auto insurance, but if it’s too late, try State Farm.

After a speeding ticket, drivers may see higher premiums. Our data shows that insurance companies increase the costs of drivers with a speeding ticket by an average of 23%. State Farm only raised prices by an average of 11 percent, the lowest among the providers surveyed. A driver with a speeding ticket can cost the State Farm an average of $1,409. This represents a savings of $358 compared to the national average of $1,767.

A speeding ticket doesn’t mean you’ll pay high premiums for life, but most insurance companies will increase premiums for at least three years, if not more. After getting a speeding ticket, researching and comparing car insurance rates can help you find the cheapest rate.

Cheapest auto insurance for poor credit: Geico

Driving records are not the only factor that increases the price. Many insurers use a credit-based insurance score to calculate car insurance rates. This can make it difficult to get cheap car insurance with poor credit in many states.

A credit-based score includes the same factors as a regular credit score, such as debt and payment history, but weighs them differently. California, Hawaii, Massachusetts and Michigan do not allow insurance companies to use credit to determine car insurance rates.

Credit can have a shocking effect on the cost of car insurance. A driver with low credit can pay an average of $400 more per year than a driver with high credit.

If you’re looking for affordable auto insurance for large businesses, Geico might be a good place to start. Based on an analysis of major insurance companies, they have the lowest average premiums for quality drivers with poor credit.

However, regardless of your credit history, you should always shop around to get the best auto insurance rates.

Related Posts: How Much Auto Insurance Do I Need?

CompanyAverage annual rate for drivers with poor credit
1. Geico$501
2. Nationwide$775
3. Travelers$803
4. Allstate$916
5. American Family$952

Frequently asked questions

Who has the cheapest car insurance?

Among national insurance companies, USAA is the cheapest at $36 per month, followed by State Farm at $44 per month. The cheapest local business is Farm Bureau at $39 per month.

What’s the cheapest online car insurance?

Geico, Progressive, USAA, and State Farm are some of the cheapest companies you can get quotes for and buy policies online. Buying car insurance online is often cheaper than working with an agent because you don’t have to pay an agency fee and you can get discounts when you buy online.

How can I save on car insurance premiums?

The best way to get cheap car insurance is to compare quotes from several insurance companies. Consider all factors in your price, including coverage, deductibles, and discounts. We don’t just get quotes from big national companies. If you live in a state served by local companies like Erie, Farm Bureau, Auto-Owners, you may have the lowest rates.

What is the cheapest type of car insurance?

State minimum liability coverage is the cheapest type of auto insurance. Liability-only insurance costs an average of $1,333 less than full coverage insurance. If your car is worth less and you don’t have a car loan or lease, switching to a debt-only policy can save you money.

Is it a good idea to buy the cheapest car insurance?

It depends on what you give up for the cheapest rate. For example, if you increase your deductible or decrease your coverage, think about how much your out-of-pocket costs will be in the event of a costly accident.

Or, if you’ve chosen a company known for its slow billing process, consider whether you can spend time without your car or pay for a rental car while you wait for your e-mail repair check.

What credit score do you need to get the cheapest car insurance?

If you have good or excellent credit, which usually means a credit score of 700 or higher, you can get the cheapest car insurance premiums.

When do young drivers get cheaper car insurance?

Car insurance for young drivers costs up to three times more on average. Teen drivers can expect their car insurance rates to drop as they gain more driving experience, dropping significantly between the ages of 21 and 25.


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