Cheapest car insurance companies in 2024
For many drivers, Nationwide’s monthly rate of $129 is the cheapest on average of any major insurer.
Written by
Editor
Laura Longero is an award-winning writer and editor with more than 15 years of experience in content development and communications.
Updated September 25, 2024, 11:31 AM EDT
Written by
Editor, car insurance
John McCormick is a former deputy editor at The Wall Street Journal and has been an editor and reporter at several other media outlets, including Digital Insurance and Financial Planning, where he covered insurance, personal finance, and technology.
Fox Money is a personal finance hub featuring content generated by Credible Operations, Inc. (Credible), which is majority-owned indirectly by Fox Corporation. The Fox Money content is created and reviewed independent of Fox News Media. Credible is solely responsible for this content and the services it provides.
We found that the national average for a full coverage car insurance policy is $1,895 a year, or around $158 per month.
Several companies, including Nationwide, Travelers and Geico, have less expensive policies. In fact, Nationwide's average rate, at $129 a month, is $29 less than the national average. Rates, however, vary for different drivers in different locations.
This guide to the cheapest car insurance companies in the U.S. will help you find reliable, budget-friendly car insurance.
List of the cheapest car insurance companies
The table below shows carrier prices for full coverage insurance from some major carriers and how much their rates differ from the national average.
The cheapest national car insurance companies offer monthly full coverage rates starting at $129 per month (Nationwide) and going up to $209 per month (Allstate).
Full coverage car insurance includes comprehensive, collision and other types of insurance. Collision pays for damages or losses that happen during a collision. Comprehensive covers theft, fire, vandalism, hail, flooding or glass breakage.
The national insurer rates below were collected from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.
*While USAA is the cheapest, it is only available to military members, veterans and their families.
Cheapest regional car insurance companies
While large, national carriers have great brand recognition, they might not necessarily have the cheapest insurance coverage for you. Regional insurance carriers like Texas Farm Bureau, NJM and Erie Insurance offer affordable auto insurance if they write policies in your state.
The table below shows the monthly cost of a full-coverage car insurance policy for regional carriers and where these insurance companies offer policies. This is based on coverage of 100/300/100 – or $100,000 per person, $300,000 per incident for injuries and $100,000 for property damage.
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Cheapest insurance costs by coverage level, state and age
Car insurance rates are influenced by many factors, including the coverage level chosen, where you live and your age.
Full coverage car insurance policies offer more financial protection than minimum coverage insurance, but, not surprisingly, those policies are more expensive.
Geographical location is also a major determinant of what you’ll pay for insurance. Different areas have different weather patterns, repair costs, and other factors insurers consider when setting rates.
And, of course, there is age. Younger drivers, typically those under 25, face higher insurance rates due to their driving inexperience and higher risk profile. Conversely, older drivers may benefit from lower premiums as they have more driving experience and a lower risk of filing claims.
Below we list the cheapest companies for various coverage levels, locations and ages.
Inexpensive state minimum policy
Most states require drivers to purchase a minimum amount of car insurance coverage, which varies depending on the state. However, state minimum coverage is extremely limited and only covers bodily injury and property damages to others if you cause an accident—at very low limits.
For most drivers, the state minimum car insurance is not enough coverage. But if you have very few assets or have limited income, a state minimum policy can provide cheap car insurance coverage. See the monthly cost for the cheapest state minimum policies from some major insurers in the table below.
*While USAA is the cheapest, it is only available to military members, veterans and their families.
Affordable liability-only coverage
At slightly higher rates, 50/100/50 coverage limits can give drivers more peace of mind than the state minimum liability coverage. Since many states require minimums of 25/50/25, limits of 50/100/50 –$50,000 per person, $100,000 per incident for injuries and $50,000 for property damage – provide twice the coverage for around $10 more per month.
But if your coverage limits don’t cover the cost of an accident for which you’re at fault, you’ll have to pay the remainder of the costs out of pocket. The table below shows monthly rates for the cheapest 50/100/50 liability-only insurance coverage.
*While USAA is the cheapest, it is only available to military members, veterans and their families.
Cheapest full coverage car insurance
The most inclusive car insurance policies – and the best option for most drivers – are full coverage policies that comprise liability, any other state-mandated coverage, collision and comprehensive coverage. Collison and comprehensive cover damages to your own vehicle in an accident (or due to theft, weather damage or animal strikes).
Furthermore, increasing your liability limits to 100/300/100 gives you peace of mind that you have more financial protection in the case of an expensive at-fault accident. We recommend that most drivers carry 100/300/100 limits. See monthly rates for full coverage from major insurers in the table below.
*While USAA is the cheapest, it is only available to military members, veterans and their families.
Cheapest companies in your state
The cheapest insurance company varies by state. See the cheapest company in each state and their monthly rates for full coverage car insurance with limits of 100/300/100 in the table below.
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Cost-effective insurance for different age groups
Your insurance rates will vary greatly according to your age. Teens pay the most for car insurance by far – their inexperience and risky habits inflate rates – followed by young adult drivers. Rates should start to go down around age 25 and can start to increase again for seniors around age 75. See monthly rates by age in the table below.
Low-cost premiums for high-risk drivers
Individuals categorized as high-risk drivers often have a history of multiple traffic violations, at-fault accidents, convictions for driving under the influence (DUI), low credit scores or a lack of previous vehicle insurance coverage.
High-risk drivers will have a tough time finding cheap car insurance, but shopping around is the best way to navigate this issue – insurers have proprietary rating systems, so one company may rate a violation higher than another company.
Related: Car insurance with DUI
The table below shows the percentage increases for at-fault accidents, DUIs and bad credit. States that prohibit credit as a car insurance rating factor include California, Hawaii, Massachusetts and Michigan.
How to get the cheapest car insurance
Lauren McKenzie, a senior agent at A Plus Insurance based in Sierra Vista, Arizona, says the best ways to save on car insurance costs are to shop around, bundle policies, review coverages, maintain a clean driving record and get quotes prior to purchasing a vehicle.
“Drivers who are looking at purchasing a new vehicle are sometimes surprised by the cost of insurance on that vehicle when they go to add it to their existing auto policy,” Mckenzie says.
“This is because some companies specialize in certain types of vehicles and drivers. Drivers should always call to check on the price of insurance on a vehicle they may be purchasing to see if it is within their budget before purchasing. Oftentimes, drivers will end up with a vehicle that the insurance is higher than the car payment because they are with the wrong insurance company, or they may have picked a high-risk vehicle.”
Below are some ways to get the cheapest car insurance policy.
- Inquire about available discounts, including reductions for being a safe driver or good student, opting for full payment upfront, online payments, combining auto and home insurance, insuring new vehicles and adding safety devices to your vehicle.
- Consider increasing your deductible, but make sure it is manageable in the event of a claim and that you can cover it out of savings.
- Compare quotes from at least three different companies.
- Explore low-mileage or usage-based insurance options. This is for those who drive infrequently — approximately 10,000 miles annually or less.
- Shop around for insurance – especially at policy renewal times, after purchasing a new vehicle, changing drivers on the policy, moving, buying a house, undergoing significant life changes like marriage or divorce, experiencing credit score adjustments, or post-accident.
“Prices will always vary between insurance companies,” McKenzie says. “It is important to shop around at least three different insurance providers, especially if your rate has gone up at your renewal offer.”
Expert tips for getting cheap car insurance quotes
By comparing car insurance quotes, drivers have the potential to save significantly. However, the cost of identical coverage can vary widely between companies.
“The key is to make sure you're comparing apples to apples. For each vehicle, make sure you are getting quotes on the exact same coverage, riders, etc.,” says Jim Brau, Joel C. Peterson professor of finance at Brigham Young University’s Marriott School of Business.
How to qualify for discounts
Auto insurance discounts are one of the top strategies for lowering your car insurance rates. Numerous discounts — including those for safe driving, reduced mileage and bundling policies — can lead to savings, securing you the most affordable car insurance.
“As you compare insurance products, have a list of the discounts you may qualify for. Good student discount. Combining home and vehicle insurance. Having a no-wreck record. This is part of the apples-to-apples comparison,” Brau says.
See the average discounts by insurance company and the number of discounts each company offers in the table below.
* USAA is only available to active and retired members of the military and their families.
Common insurance shopping mistakes to avoid
When you’re shopping for cheap car insurance, make sure you understand your current coverages and policy limits. For example, if you have a full coverage policy with limits of 100/300/100, make sure you get quotes for the same coverage limits – or your comparison won’t be accurate.
“The biggest two pitfalls are not getting enough quotes to have a broad comparison and not comparing apples to apples,” Brau said. “Also, look for any hidden or junk fees not in the quote.”
Another thing, make sure you have overlap in your coverage if you get a policy with a new carrier. So, if your new policy begins at 12:00 a.m. on May 1, your old policy shouldn’t end before 12:01 a.m. on May 1 so there isn’t a gap in coverage. Coverage gaps can make your insurance policy more expensive on future renewals.
How often should I shop around for cheaper car insurance?
Shop for car insurance around renewal time – which is typically every six months – or annually (at the minimum). If you get married or divorced, add a teen driver to your policy or have another significant life change, you’ll want to shop around to make sure you’re still getting the cheapest car insurance.
“Probably twice a year would be a good idea to make sure you're getting the best rates,” Brau said. “However, if one of your kids gets a ticket or in a wreck, or maybe even you do, shop around immediately. Companies can price these types of events much differently.”
Is it possible to negotiate lower car insurance premiums?
Typically, you can’t negotiate car insurance rates. But this is why shopping your policy is important – if you’re willing to go to another carrier, your insurer might offer incentives to stay. Plus, many companies offer loyalty discounts for a long tenure with an insurer.
“It never hurts to negotiate if you can show a legitimate competitor offering a more competitive rate. It will probably be a long shot, but there is no harm in asking,” Brau says.
Resources & Methodology
Sources
- Centers for Disease Control and Prevention. “Teen drivers and passengers: Get the facts.” Accessed August 2024.
- U.S. Bureau of Labor Statistics. “Consumer Price Index News Release.” Accessed August 2024.
Methodology
Editors collected rate information from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.
In addition, we also calculated rates for these hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lapse in coverage.
We analyzed more than 53 million quotes, over 34,000 ZIP codes, and 170 insurance companies nationwide.
Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property you damage.