Luis Diaz Morales The Cheapest Car Insurance
According to NerdWallet’s analysis of the average minimum coverage rates, State Farm, Travelers, and Geico are the companies with the lowest rates for car insurance.
The Cheapest Insurance for Cars
The most affordable option is likely to be the state’s minimum requirements for car insurance. Our study is based on the minimum requirements for each state. In many states, it is the only type of auto insurance that is liability-only, covering damages to property and medical bills resulting from accidents caused by you.
The cheapest price we found for auto insurance with minimum coverage was $9 per month or $108 over the course of a year. The amount you will pay for insurance can vary based on the state you reside in and the cleanliness of your driving record, among other factors.
Here are the lowest-cost auto insurance companies overall and the most affordable options for various types of drivers:
- The most affordable car insurance provider for drivers with good driving records is State Farm, with an average monthly cost of $37.
- The most affordable insurance company for midsize companies is Auto-Owners, with an average monthly cost of $28.
- The cheapest insurance for cars after a speeding violation is State Farm, with an average monthly cost of $45.
- The most affordable car insurance policy following an accident is State Farm, with an average monthly cost of $50.
- The most affordable car insurance following a DUI occurrence is State Farm, with an average monthly cost of $68.
- The most affordable car insurance for those with poor credit scores is Geico, with an average monthly cost of $73.
If you’re looking for the best of the best, take a look at NerdWallet’s review of the top cheap car insurance companies.
We Found the Most Affordable Companies
NerdWallet’s editorial staff analyzed the minimum coverage rates for car insurance provided by the pricing analytics firm Quadrant Information Services. Our analysis focused on 35-year-old drivers in every ZIP code across fifty U.S. states, including Washington, D.C., and considered various driving styles and credit histories. All drivers were operating a 2019 Toyota Camry L.
Another option is to have comprehensive coverage; however, it will cost approximately $1500 more per year than a minimum annual policy. This is due to the additional coverage it includes, such as uninsured/underinsured motorist protection, comprehensive coverage, and collision insurance.
If you have an auto loan or lease, your lender is likely to require you to purchase collision and comprehensive coverage. These types of insurance provide coverage in the event that your vehicle is stolen or damaged, including accidents that you caused, as well as other situations.
The Reasons Why You Should Put Your Trust in NerdWallet
Our editors and writers adhere to strict guidelines for editorial writing to ensure accuracy and fairness in our writing and data analysis. The rates we provide can be relied upon because our analysts employ rigorous measures to eliminate outliers and pricing errors. These rates encompass coverage availability and rates for each ZIP code within the country. When comparing rates based on different levels of coverage, ages, and backgrounds, we alter only one factor at a time, allowing you to determine how each variable impacts pricing. For more information, please refer to our methodology.
The Most Affordable Car Insurance Company in General: State Farm
State Farm is the cheapest major auto insurance provider that offers good drivers, according to NerdWallet’s analysis of the minimum rates of coverage for 2023. The annual average for State Farm was $450, which amounts to approximately 37% per month. State Farm has also received five stars from NerdWallet. You can check out the State Farm automobile insurance reviews to find out the reasons behind this rating.
Cheapest auto insurance offered by the largest companies
| Company | Average annual rate | Average monthly rate |
| State Farm | $450 | $37 |
| Travelers | $568 | $47 |
| Geico | $603 | $50 |
| Nationwide | $673 | $56 |
| USAA* | $341 | $28 |
| *USAA auto insurance is available only to military, veterans and their families. | ||
The Cheapest Car Insurance for Midsize Cars Company Is Auto-Owners.
Finding low-cost car insurance doesn’t mean you have to stick with big insurance companies only. Auto-Owners and Erie, which are smaller insurance companies providing coverage across multiple states, offer even more affordable rates for car insurance compared to State Farm.
While insurance availability may not always be easy, midsize insurers can offer more affordable automobile insurance rates compared to larger insurers. According to the 2022 J.D. Power study on auto insurance buying, clients are generally satisfied with these businesses.
| Company | Average annual rate | Average monthly rate |
| Auto-Owners | $337 | $28 |
| Erie | $395 | $33 |
| The Hartford | $631 | $53 |
| Auto Club of Southern California | $634 | $53 |
| National General | $693 | $58 |
We picked these companies due to their relatively low rates, as well as their availability across multiple states. However, depending on where you reside, there may be better auto insurance options that are more affordable.
Cheapest Car Insurance After a Speeding Ticket: State Farm
A ticket for speeding on your driving record will raise the amount you’ll pay for your insurance. Based on our research, State Farm offers the cheapest rates following a speeding ticket, with an average annual premium of $545, which amounts to $45 per month.
| Company | Average annual rate | Average monthly rate |
| State Farm | $545 | $45 |
| Travelers | $695 | $58 |
| Geico | $782 | $65 |
| Nationwide | $849 | $71 |
| USAA* | $412 | $34 |
| *USAA auto insurance is available only to military, veterans and their families. | ||
Car Insurance with the Lowest Cost Following an Incident: State Farm
Based on your driving history, the cheapest car insurance company will differ. The table below displays the average rates for auto insurance from the top insurance companies for drivers who have had an accident in their record in the last few years.
Our research revealed that State Farm has the lowest average cost for drivers who have one at-fault accident, which amounts to $600 annually, or $49 per month.
| Company | Average annual rate | Average monthly rate |
| State Farm | $600 | $50 |
| Travelers | $737 | $61 |
| American Family | $949 | $79 |
| Geico | $994 | $83 |
| USAA* | $496 | $41 |
| *USAA auto insurance is available only to military, veterans and their families. | ||
Car Insurance with the Lowest Cost Following the DUI: State Farm
The occurrence of a DUI in your driving record could impact the amount you have to pay for car insurance. Based on our research, State Farm is the most affordable car insurance provider after a DUI, with an average cost of $817 per year, or $67 per month on average.
| Company | Average annual rate | Average monthly rate |
| State Farm | $817 | $68 |
| Travelers | $852 | $71 |
| Progressive | $918 | $76 |
| American Family | $943 | $79 |
| USAA* | $659 | $55 |
| *USAA auto insurance is available only to military, veterans and their families. | ||
Looking for even cheaper auto insurance? Consider smaller insurance companies. Drivers with a history of violations such as at-fault collisions or upcoming DUIs will find the lowest insurance rates for cars with Erie and other mid-sized insurance companies.
Rates can vary based on a variety of personal factors. Make sure you compare quotes for car insurance from at least three insurance companies to determine the most affordable insurance policy for your needs.
Cheapest Car Insurance for People with Bad Credit: GEICO
Your driving record isn’t the only factor that can raise your rates. Insurance companies also consider insurance scores based on credit to determine car insurance rates. This makes it more challenging to obtain low-cost car insurance if you have poor credit in various states.
A credit-based score incorporates the same elements as a regular credit score, including credit and payment history; however, it weighs them differently. California, Hawaii, Massachusetts, and Michigan do not allow insurers to use credit when determining insurance rates.
Credit scores can have a significant impact on the cost of auto insurance. Individuals with bad credit may end up paying over $400 more per year compared to drivers with excellent credit.
If you’re seeking affordable car insurance from a major company, Geico could be an ideal place to begin. According to our analysis of the largest insurance companies, Geico offers the lowest rates on average for individuals with excellent credit. The average annual rate is $870, equivalent to $73 per month on average.
However, it’s always important to shop around and compare rates for car insurance, regardless of your credit score.
| Company | Average annual rate | Average monthly rate |
| Geico | $870 | $73 |
| Nationwide | $912 | $76 |
| Travelers | $1,053 | $88 |
| State Farm | $1,163 | $97 |
| USAA* | $568 | $47 |
| *USAA auto insurance is available only to military, veterans and their families. | ||
State-Wide Insurance Is the Cheapest
What is considered cheap insurance for your vehicle will vary depending on where you reside, as rates differ between states.
To facilitate comparison, we have identified the cheapest insurance provider, on average, for car insurance with the minimum amount of coverage in each state as well as Washington, D.C.
| State | Cheapest company | Average annual rate |
| Alabama | Cincinnati Insurance | $301 |
| Alaska | State Farm | $305 |
| Arizona | Noblr | $278 |
| Arkansas | The Hanover | $243 |
| California | Geico | $207 |
| Colorado | American National | $165 |
| Connecticut | State Farm | $555 |
| Delaware | California Casualty | $586 |
| Florida | State Farm | $338 |
| Georgia | Auto-Owners | $328 |
| Hawaii | Geico | $318 |
| Idaho | American National | $108 |
| Illinois | State Farm | $304 |
| Indiana | Auto-Owners | $229 |
| Iowa | State Farm | $158 |
| Kansas | State Farm | $249 |
| Kentucky | Kentucky Farm Bureau | $421 |
| Louisiana | Southern Farm Bureau Casualty | $505 |
| Maine | Concord Group | $288 |
| Maryland | Cumberland Mutual | $478 |
| Massachusetts | Preferred Mutual | $309 |
| Michigan | Travelers | $139 |
| Minnesota | Westfield | $323 |
| Mississippi | State Farm | $335 |
| Missouri | Missouri Farm Bureau | $268 |
| Montana | State Farm | $209 |
| Nebraska | American National | $109 |
| Nevada | State Farm | $396 |
| New Hampshire | Concord Group | $287 |
| New Jersey | State Farm | $280 |
| New Mexico | Central Insurance | $152 |
| New York | NYCM | $463 |
| North Carolina | North Carolina Farm Bureau | $350 |
| North Dakota | North Star | $254 |
| Ohio | Central Insurance | $193 |
| Oklahoma | State Farm | $278 |
| Oregon | State Farm | $436 |
| Pennsylvania | State Farm | $276 |
| Rhode Island | Travelers | $501 |
| South Carolina | American National | $186 |
| South Dakota | State Farm | $184 |
| Tennessee | Auto-Owners | $225 |
| Texas | State Farm | $396 |
| Utah | QBE | $368 |
| Vermont | Union Mutual | $171 |
| Virginia | Erie | $320 |
| Washington | Pemco | $193 |
| Washington DC | Chubb | $319 |
| West Virginia | Westfield | $319 |
| Wisconsin | Integrity | $173 |
| Wyoming | American National | $145 |
State averages may provide only a limited amount of information. The rates for car insurance for minimum coverage can vary in every state. That’s why NerdWallet examined rates for several major metropolitan areas across the U.S.
Select your city from the dropdown menu below to view the lowest rates for car insurance in your region.
How to Find Low-Cost Auto Insurance for Young Drivers?
If you’re a brand new driver, you might have difficulties obtaining cheap car insurance. This is because insurance companies consider drivers with no prior driving record to be more risky to insure. This includes drivers with a fresh license, drivers with an uninsured car or immigration status, as well as those who have recently visited the U.S.
To find the most affordable car insurance, it’s best to shop around and compare policies from various insurance companies each year. If you’re part of a family, it might be beneficial to stay on the policy until your driving record becomes more secure.
How To Get Affordable Car Insurance?
If you’re trying to cut costs by purchasing the cheapest car insurance, it’s important to obtain quotes from multiple insurance companies. You can use NerdWallet’s tool to compare insurance quotes and easily search for affordable auto insurance online. It’s possible that your current insurance is the most affordable option. However, prices can fluctuate, so be sure to check annually.
These tips can help you obtain affordable auto insurance rates:
- Ask for discounts. You may be able to save money by taking advantage of car insurance discounts that you are not currently utilizing. For instance, if you work from home and drive less frequently than when you first purchased your policy, mentioning this could make you eligible for a low-mileage discount.
- Consider adjusting your deductible. A higher collision or comprehensive deductible may be suitable for low-risk drivers or those comfortable with assuming more financial risk. A higher deductible means you would have to pay more out of pocket in the event of a collision or comprehensive claim. However, it can be an effective way to lower your vehicle insurance costs.
- Be aware of when you should consider reducing coverage. Avoid completely cutting off coverage to save money on your car insurance. If you own an older vehicle, you may be able to remove collision and comprehensive coverage. These types of insurance coverages only pay up to the current value of your vehicle, minus the deductible.
- Making money on life events. Certain life events can lead to cheaper car insurance. So, make sure to compare quotes when something significant happens in your personal life. For example, many companies offer lower rates for married couples as well as domestic partners. Maybe you’ve relocated to a town with lower crime and collision rates. Even if you’ve moved to a location that has higher automobile insurance costs, conducting some research could help you find more affordable insurance.
- Review quotes after your driving history improves. Look for low-cost car insurance quotes online three to five years after incidents, tickets, or other violations that may have disappeared from your driving records.
The type of vehicle you own also impacts the amount you’ll have to pay for car insurance. Take a look at NerdWallet’s analysis on the most affordable cars for insurance to determine if your car made the list.
Frequently Asked Questions
How do you obtain low-cost car insurance?
Searching for quotes on car insurance is the most effective way to find affordable auto insurance. A good credit score, along with a clear driving history, can help keep your costs lower. Be sure to inquire about any discounts that you may not currently have on your insurance.
At what age does the cost of car insurance decrease?
Young drivers and teenagers generally have the highest car insurance rates. As you gain experience, rates start to decrease. According to an independent NerdWallet analysis, rates for younger drivers decrease significantly around the age of 25. Generally, rates continue to decrease throughout adulthood. However, they start to increase again after the age of 70, and the increase becomes more significant at age 75.
Which car has the lowest insurance?
Among the country’s biggest insurance firms, State Farm offers the most affordable car insurance with an average cost of just $37 per month, according to NerdWallet’s analysis on minimum coverage rates for high-risk drivers. Travelers ranked second with an average of $47 per month, while Geico came in third at $50 per month.
The rates can vary from person to person depending on factors such as gender, the vehicle you own, and your location. To determine the most affordable cost, compare car insurance rates between three or more insurers at least every year.
How do you locate the most affordable insurance for your car?
There isn’t one “best” car insurance firm that suits everyone. The most suitable auto insurance company is the one that meets your specific requirements.
While price is a factor, the most affordable insurance provider isn’t always the most reliable. Reliable auto insurance companies offer more than just low rates. A reputable insurer will provide a customer-focused experience, whether you need assistance with obtaining an estimate or filing claims.
To identify the right company for you, visit the website of your state’s insurance commissioner for information on complaints and other details about firms in your area. It is also important to choose an organization with a strong financial standing, which you can verify through companies such as AM Best.
Ensure that you are getting all the coverage you need. For instance, not all insurers provide the rideshare coverage required if you drive for services like Uber, Lyft, or delivery platforms such as GrubHub.
METRODOLOGY
NerdWallet averaged rates based on public filings received from Quadrant Information Services, a company that provides pricing analytics. We examined rates for 35-year-old females and males in all ZIP codes across every state and Washington, D.C. However, our analysis does not include Liberty Mutual, despite being one of the largest insurance companies in the United States, due to the lack of public information. The low credit rates of The Hanover were excluded in Connecticut and New York.
Our analysis revealed that “good drivers” had no recorded violations of the law and received a “good driver” discount based on this profile. The credit ratings of “good” or “poor” were calculated using approximations of credit scores and do not include the specific scoring criteria used by insurance companies. These rates are averages, and your individual rate may vary depending on your personal information, the state you reside in, and the insurance company.
The drivers in the sample were covered at the legally required minimum level in every state. It’s worth noting that some policies may offer additional protection at the discretion of the insurer.
For the analysis, we used the 2020 Toyota Camry L as the vehicle for all drivers and assumed an annual mileage of 12,000 miles.
We made identical assumptions in all the other driver profiles with the following exceptions:
- We have changed the credit level to “good” and then “poor” in order to inform the insurance company to determine rates for drivers with low credit.
- For drivers who have had one crash at fault, we have added a single at-fault accident that occurred just six months ago, resulting in property damage of $10,000 as well as no bodily harm claims.
- For drivers who have been charged with the requisite DUI, we have added one drunken driving offense that occurred in the last six months.
