What are the Cheapest Car Insurance Companies for 2024?
State Farm is the cheapest car insurance company for most drivers, charging $124 a month for full coverage and $50 a month for liability coverage, on average.
You might find an even cheaper rate with a regional or local car insurance company, like MMG, Concord or Erie.
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Among major car insurance companies, State Farm has the cheapest average rate of $1,487 a year for a full-coverage car insurance policy.
Among local car insurance companies, MMG has the lowest average rate of $902 a year for full coverage.
State Farm offers the cheapest average rates after a speeding ticket or accident, while Progressive has the cheapest rate after a DUI.
What are the cheapest car insurance companies?
State Farm has the cheapest car insurance among companies that serve the entire U.S., with rates that average $1,487 a year for full-coverage policies.
State Farm has the cheapest liability car insurance for most drivers, too, at an average rate of $597 a year.
USAA is even cheaper for both types, but it only offers insurance to current military members, veterans and their immediate family members.
Cheapest major car insurance companies
| Company | Liability coverage | Full coverage | LendingTree Rating |
|---|---|---|---|
| State Farm | $597 | $1,487 | 4.5  |
| Travelers | $835 | $1,919 | 4.4 |
| American Family | $728 | $1,920 | 4.1  |
| Geico | $727 | $1,937 | 3.7  |
| Progressive | $791 | $2,032 | 3.8 |
| Nationwide | $963 | $2,226 | 2.8  |
| Allstate | $1,158 | $2,609 | 3.2 |
| Farmers | $1,188 | $3,091 | 3.1 |
| AAA | $1,520 | $3,835 | Not Rated |
| USAA* | $398 | $1,199 | 4.1 |
*Only available to current/former military and their families.
Travelers, American Family and Geico offer the lowest rates among the top 10 car insurance companies in the nation after State Farm and USAA.
What is the cheapest car insurance company near me?
MMG is the cheapest regional or local car insurance company, charging an average of $902 a year for a full-coverage car insurance policy.
Paid monthly, MMG’s average rate is $75. Only drivers in eight states can buy car insurance from MMG, though.
Concord, Erie and Texas Farm Bureau are also good companies for cheap local car insurance.
Cheapest local car insurance companies
| Company | Liability coverage | Full coverage |
|---|---|---|
| MMG | $375 | $902 |
| Concord | $478 | $977 |
| Texas Farm Bureau | $401 | $1,036 |
| Erie | $497 | $1,270 |
| Island Insurance | $418 | $1,319 |
| Acuity | $478 | $1,361 |
| Hanover | $336 | $1,372 |
| Safety | $571 | $1,392 |
| Westfield | $439 | $1,481 |
| Pemco | $464 | $1,483 |
| Mercury | $511 | $1,596 |
| Country Financial | $623 | $1,600 |
| Umialik | $598 | $1,602 |
| Arbella | $720 | $1,629 |
| Co-Op | $437 | $1,635 |
| Grange | $570 | $1,638 |
| Auto-Owners | $516 | $1,690 |
| Shelter | $762 | $1,927 |
| Farm Bureau | $548 | $1,931 |
| Grinnell Mutual | $421 | $2,015 |
| Plymouth Rock | $853 | $2,236 |
| Amica | $1,098 | $2,548 |
| The Hartford | $1,007 | $2,688 |
| UAIC | $1,577 | $2,886 |
| Nodak | $553 | $2,917 |
| Safeway | $1,391 | $3,080 |
| NJM | $3,125 | $3,382 |
How much does car insurance cost in my state?
Where you live is one factor that can affect what you pay for car insurance. South Dakota has the cheapest liability car insurance rates on average, $351 a year, while Michigan has the most expensive, at $1,849 a year.
For average rates on full-coverage car insurance policies, Maine drivers usually pay the least, $1,100 a year, and Michigan again pays the most, at $4,638 a year.
Average car insurance rate by state
| State | Liability coverage | Full coverage |
|---|---|---|
| Alabama | $717 | $1,979 |
| Alaska | $605 | $1,532 |
| Arizona | $1,079 | $2,683 |
| Arkansas | $622 | $1,879 |
| California | $571 | $1,867 |
| Colorado | $897 | $2,542 |
| Connecticut | $1,088 | $2,346 |
| Delaware | $1,283 | $2,482 |
| Florida | $1,206 | $2,990 |
| Georgia | $790 | $1,832 |
| Hawaii | $609 | $1,643 |
| Idaho | $413 | $1,227 |
| Illinois | $848 | $2,109 |
| Indiana | $533 | $1,511 |
| Iowa | $444 | $1,663 |
| Kansas | $616 | $1,991 |
| Kentucky | $1,183 | $2,295 |
| Louisiana | $948 | $2,719 |
| Maine | $501 | $1,100 |
| Maryland | $1,093 | $2,051 |
| Massachusetts | $757 | $2,068 |
| Michigan | $1,849 | $4,638 |
| Minnesota | $743 | $1,884 |
| Mississippi | $662 | $1,796 |
| Missouri | $686 | $1,908 |
| Montana | $574 | $2,174 |
| Nebraska | $470 | $1,909 |
| Nevada | $1,368 | $2,958 |
| New Hampshire | $537 | $1,146 |
| New Jersey | $1,393 | $2,236 |
| New Mexico | $632 | $1,953 |
| New York | $1,059 | $2,030 |
| North Carolina | $532 | $1,305 |
| North Dakota | $522 | $1,858 |
| Ohio | $532 | $1,329 |
| Oklahoma | $656 | $2,119 |
| Oregon | $1,092 | $2,115 |
| Pennsylvania | $603 | $1,861 |
| Rhode Island | $1,213 | $2,636 |
| South Carolina | $803 | $1,808 |
| South Dakota | $351 | $2,016 |
| Tennessee | $505 | $1,554 |
| Texas | $696 | $1,833 |
| Utah | $989 | $2,261 |
| Vermont | $417 | $1,232 |
| Virginia | $715 | $1,598 |
| Washington | $651 | $1,534 |
| Washington, D.C. | $949 | $2,082 |
| West Virginia | $659 | $1,701 |
| Wisconsin | $503 | $1,540 |
| Wyoming | $370 | $1,437 |
Where you buy car insurance also plays a big role in how much you pay.
The cheapest car insurance company in California is Geico, for example, which charges an average of $1,486 a year for a full-coverage policy. That’s 20% cheaper than the state average rate of $1,867 a year.
Cheapest car insurance company in each state
| State | Company | Average rate |
|---|---|---|
| Alabama | State Farm | $1,025 |
| Alaska | Geico | $1,339 |
| Arizona | State Farm | $1,497 |
| Arkansas | State Farm | $1,209 |
| California | Geico | $1,486 |
| Colorado | State Farm | $1,510 |
| Connecticut | State Farm | $1,446 |
| Delaware | State Farm | $1,640 |
| Florida | State Farm | $1,956 |
| Georgia | Farm Bureau | $1,334 |
| Hawaii | Geico | $989 |
| Idaho | State Farm | $642 |
| Illinois | Travelers | $1,319 |
| Indiana | Auto-Owners | $1,167 |
| Iowa | State Farm | $955 |
| Kansas | State Farm | $1,511 |
| Kentucky | Farm Bureau | $1,020 |
| Louisiana | Farm Bureau | $1,740 |
| Maine | Concord | $847 |
| Maryland | Geico | $1,563 |
| Massachusetts | Safety | $1,392 |
| Michigan | Progressive | $3,040 |
| Minnesota | State Farm | $1,261 |
| Mississippi | State Farm | $1,057 |
| Missouri | State Farm | $1,461 |
| Montana | State Farm | $1,697 |
| Nebraska | State Farm | $1,264 |
| Nevada | State Farm | $1,438 |
| New Hampshire | Hanover | $681 |
| New Jersey | Geico | $1,163 |
| New Mexico | State Farm | $1,294 |
| New York | Progressive | $1,124 |
| North Carolina | Progressive | $727 |
| North Dakota | State Farm | $1,225 |
| Ohio | State Farm | $840 |
| Oklahoma | State Farm | $1,316 |
| Oregon | State Farm | $1,244 |
| Pennsylvania | Erie | $1,161 |
| Rhode Island | Travelers | $1,876 |
| South Carolina | Auto-Owners | $1,402 |
| South Dakota | State Farm | $1,121 |
| Tennessee | Erie | $1,288 |
| Texas | Texas Farm Bureau | $1,036 |
| Utah | Auto-Owners | $1,364 |
| Vermont | State Farm | $617 |
| Virginia | Erie | $1,086 |
| Washington | State Farm | $1,038 |
| Washington, D.C. | Geico | $1,627 |
| West Virginia | State Farm | $1,268 |
| Wisconsin | Erie | $991 |
| Wyoming | Geico | $965 |
Cheapest car insurance for young drivers: State Farm
State Farm is the cheapest car insurance company for young drivers, offering them liability coverage for $1,811 a year on average.
State Farm’s full-coverage rates are also the cheapest for young drivers, averaging $4,128 a year.
However, if you or your family have military ties, get a quote from USAA since its average rates for 18-year-old drivers are even lower than State Farm’s.
Cheapest car insurance for teen drivers
| Company | Liability coverage | Full coverage |
|---|---|---|
| State Farm | $1,811 | $4,128 |
| Geico | $2,044 | $5,048 |
| American Family | $2,364 | $5,413 |
| Travelers | $2,655 | $5,758 |
| Allstate | $3,399 | $7,668 |
| Nationwide | $3,371 | $7,743 |
| Progressive | $3,193 | $8,495 |
| Farmers | $4,227 | $9,354 |
| USAA* | $1,030 | $2,847 |
Teen drivers usually pay more for car insurance because they tend to get into more accidents than older drivers.
For the cheapest car insurance as a teen driver, get added to a parent’s policy. The parent’s rate will go up, but the price will still be cheaper than if you got your own coverage.
Cheapest car insurance after a speeding ticket: State Farm
The cheapest car insurance after a speeding ticket comes from State Farm, which charges these drivers an average of $1,616 a year. This is 9% higher than what State Farm charges drivers with clean records.
Overall, drivers with a speeding ticket on their records pay 23% more for car insurance than drivers with clean records since insurers see them as higher-risk drivers.
| Company | Average rate |
|---|---|
| State Farm | $1,616 |
| American Family | $2,352 |
| Travelers | $2,468 |
| Geico | $2,493 |
| Progressive | $2,606 |
| Nationwide | $2,839 |
| Allstate | $3,073 |
| Farmers | $4,252 |
| USAA* | $1,457 |
A speeding ticket stays on your record for several years, affecting your rates. The specific amount of time depends on where you live.
Cheapest car insurance after an accident: State Farm
State Farm is the cheapest car insurance company for drivers with an accident on their records, offering an average rate of $1,843 a year.
Travelers, American Family and Progressive come next in terms of affordability.
| Company | Average rate |
|---|---|
| State Farm | $1,843 |
| Travelers | $2,699 |
| American Family | $2,980 |
| Progressive | $3,026 |
| Geico | $3,341 |
| Nationwide | $3,460 |
| Allstate | $4,125 |
| Farmers | $4,598 |
| USAA* | $1,658 |
Drivers with an accident on their records pay 49% higher car insurance rates, on average, compared to drivers with clean records.
Cheapest car insurance after a DUI: Progressive
Progressive has the cheapest car insurance for drivers with a DUI (driving under the influence) conviction, charging them an average rate of $2,547 a year.
Travelers also offers these drivers a fairly low average rate of $2,893 a year.
| Company | Average rate |
|---|---|
| Progressive | $2,547 |
| Travelers | $2,893 |
| American Family | $3,114 |
| Allstate | $3,875 |
| Nationwide | $4,376 |
| State Farm | $4,402 |
| Geico | $4,584 |
| Farmers | $4,758 |
| USAA* | $2,252 |
Drivers with a DUI on their records pay an average of 84% more for car insurance than they would with a clean record.
Cheapest car insurance for drivers with bad credit: Geico
Geico offers the cheapest car insurance rates for drivers with a bad credit score, at $3,093 a year, on average. Nationwide and American Family also offer low rates to these drivers.
| Company | Average rate |
|---|---|
| Geico | $3,093 |
| Nationwide | $3,147 |
| American Family | $3,170 |
| Progressive | $3,472 |
| Travelers | $3,506 |
| Allstate | $4,211 |
| Farmers | $4,890 |
| State Farm | $5,654 |
| USAA* | $2,183 |
Not all states let car insurance companies use your credit score when setting your rate, so your credit may or may not impact what you pay for a policy.
How do I find cheap car insurance?
Some of the steps you can take to get cheap car insurance include comparing quotes, finding discounts and bundling multiple policies with one company.
Compare car insurance quotes
Comparing car insurance quotes from several companies side by side is one of the best ways to get the cheapest rate for you. Use the same information for each quote so you can make the most accurate comparison.
Look for discounts
Discounts can help make your car insurance payment a lot lower than it might be otherwise. Companies may offer car insurance discounts for:
- Automatic payments
- Defensive driving courses
- Good grades
- Insuring several vehicles under the same policy
- Military ties
Bundle policies
Many insurance companies will give you a discount if you bundle insurance policies with them. The most common examples are bundling auto and home policies or auto and renters, but you can bundle boat, motorcycle and other types of insurance, too.
Raise your deductible
Raising your car insurance deductible usually lowers your premium. It can be a good way to save money — as long as you can afford to pay the deductible amount if you file a claim.
Improve your driving record
If you have a speeding ticket, accident and/or DUI on your driving record, you will often pay more for car insurance than you would with a clean record. Improving your record over time can help lower your payment.
Why can’t I find cheap car insurance?
If you’re having a hard time finding cheap car insurance, it’s probably due to one or more of the rate factors that companies look at when calculating your rate.
Car insurance companies consider a number of factors when coming up with your rate, like your:
- Vehicle’s make and model
- ZIP code
- Insurance claim history
- Age
- Policy coverage limits
- Deductible amount
Companies often weigh these factors differently. This is why the quote or rate you get from one company can differ greatly from the rate you get from another.
That’s also why it’s so important to compare quotes from multiple companies when you shop for a car insurance policy.
Frequently asked questions
State Farm has the cheapest car insurance among national companies. It is the cheapest company for typical drivers for both liability and full coverage.
State Farm is also the cheapest car insurance company for drivers with a speed ticket or accident on their records, as well as the cheapest for young drivers.
Progressive is the cheapest company for drivers with a DUI on their records. Geico is the cheapest for those with bad credit.
USAA is the cheapest car insurance company for members of the military and their families in almost all areas. This includes drivers with incidents like accidents and DUIs on their records.
The main risk of cheap car insurance is that it might not provide enough coverage if you cause an accident. This is mostly a worry for those who buy just the minimum amount of coverage their state requires, though.
We recommend buying 100/300/100 liability car insurance at least. This means:
- $100,000 of bodily injury liability coverage per person
- $300,000 bodily injury per accident
- $100,000 property damage coverage
Also, if your car is new or worth a lot of money, get enough collision and comprehensive car insurance to protect you if something damages or destroys your car.
You need to buy at least a minimum amount of car insurance in every state except New Hampshire. And even in New Hampshire, drivers who don’t buy car insurance still need to prove they have enough money to meet the state’s financial responsibility requirements if they cause an accident.
In Virginia, drivers can pay a $500 Uninsured Motor Vehicle fee to get out of buying car insurance.
You need to buy as much car insurance as your state requires. Each state requires drivers to have at least a minimum amount of liability car insurance coverage, except New Hampshire. Some states require uninsured motorist coverage as well. Others require personal injury protection or medical payments coverage.