The Cheapest Car Insurance Companies (March 2022)

Of the nine major auto insurance providers in our annual study, USAA, Geico, and State Farm consistently have the lowest annual rates for the driver groups we examined. This includes premiums for good drivers as well as for those who may have had a speeding ticket. These insurers also may be money-savers for teenage and senior drivers.

Keep in mind that shopping around and comparing quotes from different insurance companies is the best way to find the cheapest car insurance for you.

Cheapest Car Insurance Company for You

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

What Is the Cheapest Car Insurance Company?

For motorists with a clean driving record, USAA has some of the lowest rates in our car insurance study. It earns top ratings from its customers, and it has the lowest annual rates for drivers with a clean record and those shopping for minimum coverage. USAA also has the lowest car insurance premiums for motorists with a speeding ticket or an accident on their driving record.

Coverage from USAA is only available to members of the military community who qualify, however.

Geico offers cheaper car insurance than most of the providers in our study, USAA excepted. It is also one of the best car insurance companies in our ratings, with great reviews from policyholders. Our study found that Geico has the lowest rates for drivers with a clean record, drivers with poor credit, and teen drivers.

State Farm is an excellent choice if you need affordable car insurance, but have a less-than-perfect driving record. Our study found that State Farm has the lowest average cost of car insurance after a DUI. Its rates are also among the most affordable if you have a speeding ticket or an accident on your record.

The rates in our study are based on new customers shopping for insurance and can help you get an idea of how much you may pay for auto insurance with a new insurer. Keep in mind that car insurance rates are highly individualized. Your actual rate will depend on several factors, including where you live, the car you drive and your credit scores. Insurers also rely on your driving record, and some infractions, like a speeding ticket, a DUI or an at-fault accident, may increase your rates or make it harder to purchase a policy.

Cheap Car Insurance for Good Drivers: Geico

Good drivers who aren’t eligible for a USAA policy are likely to find the cheapest car insurance rates with Geico.

Geico’s annual rate of $1,148 is $295 less than the national average, a savings of more than 20%. Our latest customer survey data also indicates that most Geico policyholders are satisfied with their customer service experience and are likely to recommend the insurer to other people shopping for car insurance.

Accidents, speeding tickets, and other traffic violations can lead to higher rates, regardless of which insurer you choose. Keeping your driving record clean can help you secure the lowest rates and good-driver discounts.

Cheap Car Insurance for Teen Drivers: Geico

Our data indicates that Geico has the cheapest car insurance rates for most teen drivers, regardless of gender. Members of the military community may want to consider USAA instead, as it is slightly less expensive.

The average national rates for teen drivers range from $4,860 to $5,503, but Geico policyholders may be able to save up to 35%. Geico’s average rate for 17-year-old female drivers is $3,166 a year, or $1,694 less than the national average. Its average rate for male drivers in that same age bracket is $3,555, which beats the national average by $1,948.

Cheap Car Insurance for Senior Drivers: Geico

Male and female 60-year-olds have the lowest rates of all age groups in our study, and their annual premiums are typically lower than the national average. Seniors looking for the cheapest insurance should consider Geico, which has the overall lowest rates in our study.

On average, drivers in this group pay between $1,245 and $1,282 a year for auto insurance, depending on their gender. Geico’s rates are around 18% lower, ranging from $1,049 to $1,085 a year. It’s worth noting that USAA’s rates for 60-year-old drivers are significantly lower than both the national average and Geico’s rates. As such, individuals who are eligible may want to consider USAA car insurance first.

Cheap Car Insurance for Military Community: USAA

Several auto insurers offer discounts for military members and their families, but if you are a member of the military community, consider USAA.

USAA consistently offers some of the lowest rates in our study. With USAA, a good driver can expect rates that are 31% lower than the national average. USAA also has the lowest rates for several subcategories we reviewed, including teen drivers, senior drivers, drivers with a speeding ticket or accident on their record, and drivers seeking minimum coverage.

If you’re considering USAA, keep in mind that its insurance products are limited to active and veteran military members and their families.

Cheap Car Insurance After a Speeding Ticket: State Farm

Avoiding speed violations is the best way to get cheap car insurance rates, but if it’s too late for that, try State Farm.

After a speeding ticket, drivers may see higher premiums. Our data indicates that insurers increase rates by an average of 23% for drivers with a single speeding ticket. State Farm only increased their rates by an average of 11%, the smallest increase among providers in our study. Drivers with a speeding ticket can expect an average State Farm rate of $1,409. That’s a $358 savings when compared to the national average of $1,767.

A single speeding ticket doesn’t mean you’ll pay higher rates for the rest of your life, but most insurers will increase your premium for at least three years, if not more. Shopping around and comparing auto insurance rates after a speeding ticket can help you find the cheapest premiums.

Cheap Car Insurance After an Accident: State Farm

The national average rate for drivers with an accident on their record is $2,041. That’s 29% higher than the average rate for drivers with a clean record. Next to USAA, State Farm’s rate is the lowest in our study. At $1,516 a year, it beats the national rate by 26%, yielding a savings of $525 annually.

Cheap Car Insurance After a DUI: State Farm

For most drivers, a DUI will lead to a significant rate increase. A policy with State Farm may make paying for auto insurance more manageable.

Our analysis found that the average annual rate of $2,320 represents a typical increase of about 61% when compared to rates for drivers with a clean record. State Farm does increase rates after a DUI, but only by 35%. On average, drivers who choose State Farm pay $1,711 for car insurance, a savings of nearly $610 a year.

This is one category in which USAA didn’t come out on top. Its rates are higher than those offered by State Farm and American Family Insurance.

Cheap Car Insurance With Poor Credit: Geico

Poor credit can increase rates nearly as much as (and sometimes more than) a DUI. Every insurer in our study increases premiums for poor credit, but drivers still may be able to save with Geico. Its rates for drivers with poor credit are 28% lower than the national average and the cheapest in our study.

The average rate for drivers with a poor credit score is $2,524 per year, but Geico’s average rate is only $1,810 per year. That’s an annual savings of $714. It’s also worth noting Nationwide’s rates are $1,837, only 1% higher than Geico’s, making it another competitively priced option for drivers with bad credit.

Note that insurers do not consider credit score when factoring rates in California, Hawaii, and Massachusetts. As a result, data from those states was omitted from this part of our analysis.

Cheap Car Insurance for Minimum Coverage: Geico

If you’re looking for cheap auto insurance that meets state minimum guidelines, Geico is the least expensive choice.

Our study shows most consumers will save money with Geico. On average, a low-coverage policy with Geico costs $1,064 a year, $308 less than the national average of $1,372. Geico also fares well in our Best Car Insurance Company ranking and subrankings.

Despite Geico’s low rates, drivers who are eligible for USAA membership may want to consider its minimum coverage auto insurance. USAA is the only insurer in our study that offers minimum coverage for less than $1,000 a year.

Cheap Car Insurance for Full Coverage: Geico

Our analysis shows that Geico is the cheapest company if you want a high level of insurance coverage.

Geico’s average rate for high coverage is $1,238 a year. That’s $280 less per year than the national average, a total annual savings of nearly 18%. As is the case in many other subcategories we reviewed, USAA’s rates are still the cheapest overall, and drivers in the military community should consider USAA if they’re eligible for membership.

How to Get the Cheapest Car Insurance Quotes

We’ve done the heavy lifting to find out which major car insurance companies are likely to have the best rates for you, but you won’t know exactly how much you’ll pay until you start getting quotes.

Insurance companies base rates, in part, on data that shows older drivers and married drivers make fewer claims. You shouldn’t get married just to save on insurance and you can’t change your age. However, you can consider these steps to save on car insurance and get the cheapest rate possible:

Shop Around

Comparing quotes from multiple companies is the first step toward getting cheap car insurance. Be sure to ask each insurer about how to adjust your level of coverage to fit your current needs.

Ask for Discounts

Nearly every insurance provider has discounts available for its customers. These can include lower rates for customer loyalty, maintaining a clean driving record and good students.

Increase Your Deductible

The rates that you pay are directly related to your deductible, which is the amount that you agree to pay if you need to file a claim. Opting for a higher deductible is one way that you can lower your insurance premiums.

Decrease Your Limits

Limits refer to the amount of money your insurer will pay after a claim. Higher limits can decrease your out-of-pocket expenses after a claim. They can also drive up your annual premium. Review your personal finances and determine if lowering your limits is worth the lower rates.

Understand State Requirements

Nearly every state has auto insurance requirements that determine the minimum amount of coverage a driver must carry. Factoring in your state auto insurance requirements, alongside your personal assets and finances, can help you decide how much coverage you need or if you’ve purchased too much coverage.

Look for Local Insurers

It’s possible that a large insurer might not be the best or cheapest match for your coverage needs. Check with smaller insurers or with a local agent to see if you can find a lower rate.

Improve Your Driving Record

Insurance companies reward safe drivers with clean records by giving them lower rates. This is because good drivers are less likely to file a claim.

Switch to Pay-Per-Mile Insurance

This type of coverage replaces your traditional car insurance policy, and the main difference is that you pay for auto insurance by the mile. If you put only a few miles on your car every year, the savings can be worth making the switch.

Review Coverage Annually

Take a look at your policy when it’s time to renew. Adjust your coverage, such as your deductible or the number of miles that you drive, to fit your current needs.

Pay Premiums Annually

Most insurance companies will allow you to pay for coverage monthly, biannually or on a yearly basis. However, paying your premiums annually will almost always save you money.

Improve Credit Rating

In most states, drivers with poor credit scores are penalized with higher insurance premiums. Maintain a good credit score, or take steps to improve your credit, and you’ll likely secure a better rate.

Bundle Your Insurance

Most companies offer car insurance discounts if you buy two or more policies. This could include adding a renter’s or homeowner’s policy to your coverage, as well as insuring multiple vehicles together.

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