What are the Cheapest Car Insurance Companies for 2025?
Cheapest car insurance companies
Cheapest full-coverage car insurance: State Farm
USAA is cheapest overall for full coverage, but it only offers insurance to current military members, veterans and their immediate family members.
Cheap full-coverage auto insurance companies
| Company | Annual rate | LendingTree score | |
|---|---|---|---|
 | State Farm | $1,608 |  |
 | Travelers | $1,812 | |
 | American Family | $2,016 |  |
 | Progressive | $2,076 | |
 | Geico | $2,112 |  |
 | Nationwide | $2,400 |  |
 | Allstate | $2,964 | |
 | AAA | $2,988 |  |
 | Farmers | $3,468 | |
 | USAA* | $1,320 | |
Full-coverage car insurance includes collision Collision covers damage to your car from a collision with another vehicle or object. and comprehensive Comprehensive covers your car for theft or damage from a non-collision cause such as flood, fire or vandalism. . Neither of these coverages are required by law, but you usually need both for a car loan or lease.
Cheapest liability-only car insurance: State Farm
Both companies charge less than the national average of $69 a month for liability car insurance.
Cheap liability auto insurance
| Company | Annual rate |
|---|---|
| State Farm | $660 |
| American Family | $756 |
| Geico | $792 |
| Travelers | $792 |
| Progressive | $804 |
| Nationwide | $1,020 |
| AAA | $1,092 |
| Allstate | $1,344 |
| Farmers | $1,368 |
| USAA* | $432 |
Cheapest regional car insurance company: MMG
Regional companies like MMG, which is only available in five Eastern states MMG is available in Maine, New Hampshire, Pennsylvania, Vermont and Virginia. , are sometimes cheaper than large national companies. Vermont Mutual, Concord and Island Insurance are among the other regional companies with cheap rates.
Cheapest regional insurance companies
| Company | Annual rate full coverage | Annual rate liability |
|---|---|---|
| MMG | $1,092 | $408 |
| Vermont Mutual | $1,116 | $396 |
| Concord | $1,272 | $576 |
| Island Insurance | $1,320 | $420 |
| NYCM | $1,332 | $480 |
| Safety | $1,344 | $576 |
| Acuity | $1,368 | $564 |
| Erie | $1,380 | $516 |
| Hanover | $1,452 | $360 |
| Country Financial | $1,500 | $684 |
| Plymouth Rock | $1,680 | $624 |
| Arbella | $1,692 | $624 |
| Mercury | $1,704 | $684 |
| Auto-Owners | $1,740 | $636 |
| Co-Op | $1,752 | $444 |
| NJM | $1,872 | $1,032 |
| Grange | $1,896 | $732 |
| Farm Bureau | $1,908 | $636 |
| Umialik | $2,028 | $684 |
| Shelter | $2,052 | $792 |
How much does car insurance cost in my state?
For average rates on full-coverage car insurance policies, Maine drivers usually pay the least at $1,243 a year. Nevada pays the most at $3,439 a year.
Average car insurance rates by state
| State | Annual rate full coverage | Annual rate liability |
|---|---|---|
| Alabama | $2,322 | $907 |
| Alaska | $1,694 | $544 |
| Arizona | $2,618 | $1,094 |
| Arkansas | $2,314 | $717 |
| California | $2,017 | $700 |
| Colorado | $2,892 | $970 |
| Connecticut | $2,325 | $1,160 |
| Delaware | $2,758 | $1,407 |
| Florida | $3,267 | $1,216 |
| Georgia | $2,194 | $963 |
| Hawaii | $1,484 | $531 |
| Idaho | $1,330 | $460 |
| Illinois | $2,146 | $894 |
| Indiana | $1,560 | $574 |
| Iowa | $1,901 | $500 |
| Kansas | $2,099 | $682 |
| Kentucky | $2,378 | $978 |
| Louisiana | $2,989 | $1,042 |
| Maine | $1,243 | $543 |
| Maryland | $2,034 | $1,083 |
| Massachusetts | $1,740 | $612 |
| Michigan | $3,151 | $1,597 |
| Minnesota | $2,037 | $809 |
| Mississippi | $1,968 | $694 |
| Missouri | $2,041 | $746 |
| Montana | $2,218 | $586 |
| Nebraska | $1,933 | $570 |
| Nevada | $3,439 | $1,559 |
| New Hampshire | $1,278 | $575 |
| New Jersey | $2,384 | $1,266 |
| New Mexico | $2,037 | $688 |
| New York | $2,274 | $1,141 |
| North Carolina | $1,672 | $831 |
| North Dakota | $1,897 | $584 |
| Ohio | $1,373 | $565 |
| Oklahoma | $2,400 | $752 |
| Oregon | $2,218 | $1,137 |
| Pennsylvania | $2,060 | $650 |
| Rhode Island | $2,838 | $1,184 |
| South Carolina | $1,812 | $802 |
| South Dakota | $2,070 | $448 |
| Tennessee | $1,887 | $649 |
| Texas | $2,184 | $808 |
| Utah | $2,266 | $1,148 |
| Vermont | $1,283 | $428 |
| Virginia | $1,684 | $858 |
| Washington | $1,909 | $749 |
| Washington, D.C. | $2,371 | $1,097 |
| West Virginia | $1,788 | $716 |
| Wisconsin | $1,616 | $522 |
| Wyoming | $1,491 | $372 |
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 $1,496 a year for full coverage. This is 26% cheaper than the state average of $2,017 a year.
Cheapest car insurance company by state
| State | Cheapest company | Annual rate full coverage |
|---|---|---|
| Alabama | State Farm | $1,231 |
| Alaska | State Farm | $1,383 |
| Arizona | State Farm | $1,652 |
| Arkansas | State Farm | $1,359 |
| California | Geico | $1,486 |
| Colorado | State Farm | $1,948 |
| Connecticut | Travelers | $1,183 |
| Delaware | State Farm | $1,787 |
| Florida | State Farm | $1,957 |
| Georgia | Farm Bureau | $1,334 |
| Hawaii | Geico | $829 |
| Idaho | State Farm | $658 |
| Illinois | Country Financial | $1,232 |
| Indiana | Travelers | $1,272 |
| Iowa | State Farm | $1,050 |
| Kansas | Travelers | $1,405 |
| Kentucky | Farm Bureau | $1,689 |
| Louisiana | Farm Bureau | $1,746 |
| Maine | Travelers | $938 |
| Maryland | State Farm | $1,408 |
| Massachusetts | Geico | $1,320 |
| Michigan | Progressive | $1,906 |
| Minnesota | Travelers | $1,269 |
| Mississippi | State Farm | $1,144 |
| Missouri | American Family | $1,645 |
| Montana | State Farm | $912 |
| Nebraska | State Farm | $1,391 |
| Nevada | Travelers | $2,005 |
| New Hampshire | Hanover | $681 |
| New Jersey | Geico | $1,163 |
| New Mexico | State Farm | $1,464 |
| New York | Progressive | $1,201 |
| North Carolina | Erie | $789 |
| North Dakota | State Farm | $1,333 |
| Ohio | Geico | $690 |
| Oklahoma | State Farm | $1,541 |
| Oregon | State Farm | $1,302 |
| Pennsylvania | Travelers | $1,216 |
| Rhode Island | Travelers | $1,894 |
| South Carolina | Auto-Owners | $1,460 |
| South Dakota | State Farm | $1,289 |
| Tennessee | Erie | $1,379 |
| Texas | Texas Farm Bureau | $1,036 |
| Utah | Progressive | $1,665 |
| Vermont | State Farm | $714 |
| Virginia | Farm Bureau | $1,256 |
| Washington | State Farm | $1,180 |
| Washington, D.C. | Geico | $2,095 |
| West Virginia | Erie | $1,361 |
| Wisconsin | Erie | $1,236 |
| Wyoming | State Farm | $1,196 |
Cheapest car insurance for young drivers: State Farm
State Farm’s full-coverage rates are also the cheapest for young drivers, averaging $4,572 a year.
However, if you or your family have military ties, get a quote from USAA. Its average rates for 18-year-old drivers are even lower than State Farm’s.
Cheapest teen auto insurance
| Company | Annual rate full coverage | Annual rate liability |
|---|---|---|
| State Farm | $4,572 | $2,076 |
| Geico | $5,592 | $2,244 |
| American Family | $6,384 | $2,688 |
| Travelers | $5,976 | $2,736 |
| AAA | $7,476 | $3,072 |
| Progressive | $8,436 | $3,108 |
| Nationwide | $8,220 | $3,720 |
| Allstate | $8,544 | $3,936 |
| Farmers | $11,928 | $5,376 |
| USAA* | $3,192 | $1,152 |
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, they should get added to a parent’s policy. The parent’s rate will go up, but the total price will still be cheaper than if you get your own coverage.
Cheapest car insurance after a speeding ticket: State Farm
Overall, drivers with a speeding ticket on their record pay 23% more for car insurance than drivers with a clean record since insurers see them as higher-risk drivers.
Cheap auto insurance after a ticket
| Company | Annual rate |
|---|---|
| State Farm | $1,752 |
| Travelers | $2,316 |
| American Family | $2,412 |
| Progressive | $2,724 |
| Geico | $2,760 |
| Nationwide | $3,180 |
| Allstate | $3,516 |
| Farmers | $4,584 |
| USAA* | $1,608 |
A speeding ticket can normally impact your car insurance rate for three to five years. The specific amount of time varies by insurance company and state.
Cheapest car insurance after an accident: State Farm
Travelers, American Family and Progressive come next in terms of affordability.
Cheap car insurance after an accident
| Company | Annual rate |
|---|---|
| State Farm | $1,848 |
| Travelers | $2,520 |
| Progressive | $3,108 |
| American Family | $3,192 |
| Geico | $3,636 |
| Nationwide | $3,852 |
| Allstate | $4,704 |
| Farmers | $5,532 |
| USAA* | $1,812 |
Drivers with an accident on their records pay 50% higher car insurance rates, on average, compared to drivers with clean records.
Cheapest car insurance after a DUI: Progressive
Travelers also offers cheap car insurance with a DUI at $2,736 a year.
Cheap car insurance with a DUI
| Company | Annual rate |
|---|---|
| Progressive | $2,652 |
| Travelers | $2,736 |
| American Family | $3,372 |
| State Farm | $3,900 |
| Allstate | $4,680 |
| Geico | $5,064 |
| Farmers | $5,304 |
| Nationwide | $5,328 |
| USAA* | $2,580 |
Drivers with a DUI on their records pay an average of 85% more for car insurance than they would with a clean record.
Cheapest car insurance for drivers with bad credit: American Family
Cheap bad credit car insurance
| Company | Annual rate |
|---|---|
| American Family | $3,312 |
| Geico | $3,408 |
| Travelers | $3,420 |
| Nationwide | $3,540 |
| Progressive | $3,624 |
| Allstate | $4,860 |
| Farmers | $6,000 |
| State Farm | $6,480 |
| USAA* | $2,424 |
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?
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 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.
- 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 speeding 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.