How We Ranked the Cheapest Car Insurance Companies
Our comprehensive evaluation process analyzed over 25 national and regional insurance providers to determine which companies truly offer the best cheap car insurance in the US. We considered multiple factors beyond just the bottom-line premium to ensure you get the best value for your money.
Primary Ranking Factors
- Average premium costs across different driver profiles
- Available coverage options and customization
- Discount variety and potential savings
- Customer satisfaction ratings from J.D. Power
- Claims processing efficiency and satisfaction
- Financial strength ratings from AM Best
We collected and analyzed over 10 million auto insurance quotes from Quadrant Information Services to compare prices across different driver profiles, vehicle types, and coverage levels. This comprehensive approach ensures our recommendations work for a wide range of drivers seeking affordable coverage.
Top 7 Cheapest Car Insurance Companies of 2025
Based on our analysis, these providers consistently offer the best combination of affordable rates and quality coverage across multiple states and driver profiles.
| Insurance Company | Average Monthly Premium | Best For | Customer Satisfaction | Standout Feature |
| GEICO | $41 | Overall Affordability | Above Average | User-friendly digital tools |
| Progressive | $122 | High-Risk Drivers | Average | Name Your Price® tool |
| State Farm | $56 | Young Drivers | High | Drive Safe & Save™ program |
| Travelers | $143 | Full Coverage | Average | Extensive coverage options |
| American National | $25 | Minimum Coverage | Average | Lowest liability rates |
| Farmers | $30 | Teen Drivers | Above Average | Accident forgiveness |
| Farm Bureau | $32 | Rural Drivers | High | Member-only discounts |
Note: Rates are based on a 35-year-old driver with good credit and a clean driving record. USAA, which offers some of the lowest rates at approximately $32 monthly, is not included in our main rankings as it’s only available to military members, veterans, and their families.
1. GEICO: Best Overall Cheap Car Insurance
GEICO consistently ranks as one of the best cheap car insurance providers in the US, offering liability coverage for as low as $41 per month on average. The company’s widespread availability across all 50 states and user-friendly digital tools make it an excellent choice for drivers seeking affordable coverage without sacrificing service quality.
GEICO excels at providing competitive rates for most driver profiles, particularly for those with clean driving records. Their extensive discount program includes savings for federal employees, military personnel, good students, and vehicle safety features. The company’s mobile app and online portal make policy management and claims filing straightforward.
Average Monthly Premiums
- Minimum liability: $41
- Full coverage: $165
- After a speeding ticket: $214
- After an accident: $70
- For drivers with poor credit: $233
Pros
- Consistently low rates across most states
- Excellent digital tools and mobile app
- Wide variety of discounts
- Available in all 50 states
- Strong financial stability (A++ AM Best rating)
Cons
- Fewer local agents than some competitors
- Limited customization options
- Average claims satisfaction ratings
- No gap insurance available
2. Progressive: Best for High-Risk Drivers
Progressive stands out for offering some of the best cheap car insurance rates for drivers with less-than-perfect records. Their full coverage policies average $122 per month, making them particularly competitive for comprehensive protection. The company’s unique Name Your Price® tool helps drivers find policies that fit their budget constraints.
Progressive’s Snapshot program rewards safe driving habits with personalized rates, potentially leading to additional savings. The company offers an impressive range of coverage options, including pet injury protection, custom parts coverage, and rideshare insurance, making it suitable for drivers with specialized needs.
Average Monthly Premiums
- Minimum liability: $54
- Full coverage: $122
- After a DUI: $240
- After an accident: $268
- For young drivers (20): $322
Pros
- Competitive rates for high-risk drivers
- Innovative Name Your Price® tool
- Extensive coverage customization
- Strong digital experience
- Bundle discounts up to 12%
Cons
- Average customer service ratings
- Rates can increase significantly after claims
- Not always the cheapest for clean records
- Snapshot program may increase rates
3. State Farm: Best for Young Drivers
State Farm offers some of the best cheap car insurance options for young and student drivers, with liability coverage averaging $56 per month. As the largest auto insurer in the US, State Farm combines competitive rates with exceptional customer service through its extensive network of local agents across all 50 states.
The company’s Steer Clear program provides substantial discounts for drivers under 25 who complete a safe driving course. Their Drive Safe & Save program uses telematics to monitor driving habits and reward safe behaviors with discounts up to 30%, making it an excellent option for cautious drivers looking to save.
Average Monthly Premiums
- Minimum liability: $56
- Full coverage: $174
- For teen drivers: $383
- After a speeding ticket: $197
- For senior drivers: $158
Pros
- Excellent student driver discounts
- Superior customer service ratings
- Extensive local agent network
- Strong financial stability (A++ AM Best)
- Rideshare coverage available
Cons
- Higher rates for drivers with violations
- Fewer digital tools than competitors
- Limited customization options
- No accident forgiveness in most states
4. Travelers: Best for Full Coverage Options
Travelers offers the best cheap car insurance for drivers seeking comprehensive coverage, with full coverage policies averaging $143 per month. The company stands out for its extensive range of coverage options and add-ons, allowing drivers to create highly customized policies while still maintaining affordable rates.
Travelers’ IntelliDrive program uses a smartphone app to monitor driving habits and can provide discounts up to 20% for safe drivers. The company also offers unique coverage options like new car replacement, gap insurance, and accident forgiveness that aren’t always available from other affordable providers.
Average Monthly Premiums
- Minimum liability: $45
- Full coverage: $143
- For millennial drivers: $136
- After an accident: $201
- For drivers with poor credit: $244
Pros
- Extensive coverage customization
- Competitive full coverage rates
- Unique add-ons like new car replacement
- Strong multi-policy discounts
- Accident forgiveness available
Cons
- Average customer service ratings
- Mobile app has limited functionality
- Not available in all states
- Higher rates for drivers with violations
5. American National: Best for Minimum Coverage
American National offers the absolute cheapest car insurance rates for minimum liability coverage, with policies averaging just $25 per month. This makes them an excellent option for budget-conscious drivers who only need to meet their state’s minimum insurance requirements or who own older vehicles that don’t warrant full coverage.
While American National may not have the name recognition of larger insurers, they maintain solid financial stability and provide basic coverage at unbeatable rates. Their straightforward policies and pricing structure make them particularly appealing for drivers seeking simple, affordable protection without extra features.
Average Monthly Premiums
- Minimum liability: $25
- For young adults (25): $20
- After a speeding ticket: $26
- After a DUI: $36
- For drivers with excellent credit: $14
Pros
- Lowest minimum coverage rates
- Simple, straightforward policies
- Good rates for drivers with violations
- Solid financial stability
- Easy qualification process
Cons
- Limited coverage options
- Basic digital tools
- Not available in all states
- Fewer local agents than major insurers
6. Farmers: Best for Teen Drivers
Farmers Insurance offers surprisingly affordable rates for teen drivers, with policies averaging just $39 per month for drivers aged 16-19. This makes them one of the best cheap car insurance options for families with young drivers, who typically face the highest insurance premiums in the market.
Farmers’ three-tiered coverage system (Standard, Enhanced, and Premier) allows families to choose the right balance of coverage and cost. Their Accident Forgiveness program can be especially valuable for inexperienced drivers, while their Good Student and Away at School discounts provide additional savings opportunities for families.
Average Monthly Premiums
- Minimum liability: $30
- Full coverage: $145
- For teen drivers (16-19): $39
- After an accident: $30
- For drivers with poor credit: $35
Pros
- Excellent rates for teen drivers
- Flexible coverage tiers
- Strong accident forgiveness program
- Good student discounts
- Solid customer service ratings
Cons
- Higher rates for some adult drivers
- Limited availability in some states
- Average digital experience
- Complex policy structure
7. Farm Bureau: Best for Rural Drivers
Farm Bureau Insurance offers some of the best cheap car insurance rates for rural and suburban drivers, with minimum coverage averaging $32 per month and full coverage at $125 monthly. Operating through state-specific bureaus, this membership-based insurer provides personalized service through local agents who understand the unique needs of their communities.
While membership requires an annual fee (typically $20-$50), the savings on auto insurance often more than offset this cost. Farm Bureau is particularly known for its excellent customer service and claims satisfaction, making it a strong choice for drivers who value relationship-based insurance.
Average Monthly Premiums
- Minimum liability: $32
- Full coverage: $125
- After an accident: $144
- For multi-vehicle policies: $112
- For homeowner bundles: $105
Pros
- Excellent rates for rural drivers
- Superior customer service
- Local agents familiar with community
- Strong member-only discounts
- High claims satisfaction ratings
Cons
- Requires membership fee
- Limited digital tools
- Fewer coverage options than major insurers
- Availability varies by state
Understanding Car Insurance Coverage Types
When shopping for the best cheap car insurance in the US, understanding different coverage types is essential to finding the right balance between affordability and protection. Here’s what you need to know about the main coverage options:
Liability Coverage
Required in almost all states, liability insurance covers damages you cause to others in an accident. It includes:
- Bodily injury liability: Covers medical expenses for others
- Property damage liability: Pays for damage to others’ property
Average monthly cost: $25-$78
Full Coverage
Combines liability with additional protections:
- Collision: Covers damage to your car from accidents
- Comprehensive: Covers non-collision damage (theft, weather, etc.)
Average monthly cost: $122-$203
Additional Options
Optional coverages for enhanced protection:
- Uninsured/underinsured motorist: Protection from drivers without adequate insurance
- Medical payments/PIP: Covers your medical expenses regardless of fault
- Gap insurance: Covers the difference between your car’s value and loan balance
Average additional cost: $5-$50 per month
Pro Tip: While minimum liability coverage is the cheapest option, it may leave you financially vulnerable. Most experts recommend carrying at least 100/300/50 liability limits ($100,000 per person, $300,000 per accident for bodily injury, and $50,000 for property damage) for adequate protection.
10 Proven Ways to Get Cheaper Car Insurance
Finding the best cheap car insurance in the US requires more than just comparing quotes. Use these proven strategies to lower your premiums while maintaining adequate coverage:
- Compare multiple quotes. Rates can vary by hundreds of dollars between companies for identical coverage. Always get at least 3-5 quotes before making a decision.
- Bundle policies. Combining auto and home/renters insurance with the same company typically saves 5-25% on both policies.
- Increase your deductible. Raising your collision and comprehensive deductibles from $500 to $1,000 can lower your premium by 10-20%.
- Maintain good credit. In most states, improving your credit score from poor to excellent can cut your insurance costs nearly in half.
- Drive safely. Avoiding accidents and traffic violations keeps your record clean and your rates low.
- Take advantage of discounts. Ask about safe driver, good student, military, professional organization, and low-mileage discounts.
- Consider usage-based insurance. Programs like Progressive’s Snapshot or State Farm’s Drive Safe & Save can save 10-30% for safe drivers.
- Drive a cheaper-to-insure vehicle. Family sedans and SUVs typically cost less to insure than sports cars or luxury vehicles.
- Pay annually or semi-annually. Many insurers charge extra for monthly payment plans. Paying in full can save 5-10%.
- Review coverage on older vehicles. If your car is worth less than 10 times your premium, dropping collision and comprehensive coverage may make financial sense.
Factors That Affect Your Car Insurance Rates
Understanding what influences your car insurance rates can help you make informed decisions to find the best cheap car insurance in the US. Insurance companies consider numerous factors when calculating your premium:
Driver-Related Factors
- Age and gender: Young drivers and males typically pay more
- Driving history: Accidents, tickets, and DUIs increase rates
- Credit score: Better credit often means lower premiums (except in CA, HI, MA, MI)
- Driving experience: More years behind the wheel usually means lower rates
- Annual mileage: Less time on the road equals lower risk
- Occupation: Some professions qualify for discounts
- Marital status: Married drivers often receive lower rates
Vehicle and Policy Factors
- Vehicle make and model: Safety ratings, repair costs, and theft rates matter
- Vehicle age: Newer cars typically cost more to insure
- Coverage levels: Higher limits and additional coverages increase costs
- Deductible amount: Higher deductibles lower premiums
- Location: Urban areas and high-crime neighborhoods have higher rates
- Continuous coverage: Gaps in insurance history can increase rates
- Payment method: Paying in full or enrolling in autopay can reduce costs
Important: While you can’t control all factors that affect your rates, focusing on maintaining a clean driving record, good credit score, and taking advantage of available discounts can significantly reduce your insurance costs over time.
Minimum Car Insurance Requirements by State
Each state sets its own minimum car insurance requirements, which directly impacts the cost of the cheapest available policies. Understanding your state’s requirements is essential when shopping for the best cheap car insurance in the US.
| State | Minimum Liability Requirements | Additional Required Coverage | Average Monthly Minimum Premium |
| California | 15/30/5 | None | $78 |
| Florida | 10/20/10 | PIP: $10,000 | $138 |
| New York | 25/50/10 | PIP: $50,000, UM/UIM: 25/50 | $109 |
| Texas | 30/60/25 | None | $85 |
| Michigan | 50/100/10 | PIP: Choice of coverage levels | $167 |
| Ohio | 25/50/25 | None | $47 |
Note: Liability requirements are listed as bodily injury per person/bodily injury per accident/property damage (in thousands). PIP stands for Personal Injury Protection, and UM/UIM refers to Uninsured/Underinsured Motorist coverage.
Warning: While minimum coverage meets legal requirements, it may not provide adequate financial protection. Consider your assets and financial situation when deciding on coverage limits, as minimum policies may leave you personally liable for damages exceeding your coverage limits.
Finding Cheap Car Insurance for Special Situations
High-Risk Drivers
Drivers with accidents, DUIs, or multiple tickets face higher rates but can still find affordable options:
- Progressive offers some of the best rates for high-risk drivers
- Consider smaller regional insurers that specialize in non-standard policies
- Take defensive driving courses for potential discounts
- Look into usage-based insurance programs
Best option: Progressive ($240/month average after DUI)
Young Drivers
Teen and young adult drivers typically face the highest rates but can save through:
- Good student discounts (typically 10-15% off)
- Driver training programs
- Staying on parents’ policy when possible
- Student away-at-school discounts
Best option: Farmers ($39/month average for teens)
Seniors
Drivers over 65 may see increasing rates but can find savings through:
- Mature driver discounts
- Defensive driving courses for seniors
- Low-mileage discounts
- Bundling home and auto policies
Best option: Travelers ($137/month average for seniors)
Frequently Asked Questions About Cheap Car Insurance
What is the cheapest car insurance company in 2025?
Based on our analysis, American National offers the cheapest minimum liability coverage at $25 per month on average, while Progressive provides the most affordable full coverage at $122 monthly. However, the cheapest company for you will depend on your specific circumstances, including your location, driving history, vehicle, and coverage needs. Always compare quotes from multiple providers to find your best rate.
How can I get the lowest car insurance rates possible?
To secure the best cheap car insurance in the US, compare quotes from multiple companies, maintain a clean driving record, improve your credit score, bundle policies, increase deductibles, ask about all available discounts, consider usage-based insurance programs, and regularly review your coverage needs. Paying annually instead of monthly and choosing a vehicle that’s cheaper to insure can also significantly reduce your premiums.
Is it worth getting minimum coverage to save money?
While minimum liability coverage is the cheapest option, it provides limited financial protection. If you cause a serious accident, you could be personally responsible for damages exceeding your policy limits. Minimum coverage may be appropriate if you have an older vehicle with little value and limited assets to protect. However, most financial experts recommend purchasing higher liability limits (at least 100/300/50) to adequately protect your finances.
How much can I save by comparing car insurance quotes?
Drivers who compare quotes from multiple providers save an average of $427 annually, according to our research. Insurance companies use different rating factors and algorithms to calculate premiums, resulting in significant price variations for the same coverage. Even if you’re happy with your current insurer, shopping around at least once a year can help ensure you’re still getting competitive rates.
Does my credit score affect my car insurance rates?
Yes, in most states, insurance companies use credit-based insurance scores as a rating factor. Drivers with excellent credit can pay up to 67% less than those with poor credit, according to our analysis. However, California, Hawaii, Massachusetts, and Michigan prohibit insurers from using credit scores to determine auto insurance rates. Improving your credit score can significantly lower your insurance costs over time in states where it’s allowed.
Which cars are cheapest to insure?
Family sedans, minivans, and small SUVs typically have the lowest insurance costs. According to our data, vehicles like the Subaru Outback, Honda CR-V, Toyota Camry, and Ford Escape offer some of the best cheap car insurance rates. Cars with excellent safety ratings, low repair costs, and low theft rates generally cost less to insure. Sports cars, luxury vehicles, and models with high theft rates command higher premiums.
Finding Your Best Cheap Car Insurance in 2025
The best cheap car insurance in the US balances affordability with adequate protection for your specific needs. While American National and Progressive offer the lowest average rates for minimum and full coverage respectively, the right provider for you depends on your unique circumstances.
The cheapest policy isn’t always the best value. Look beyond the premium to consider coverage quality, customer service, claims handling, and financial stability when making your decision.
For most drivers, we recommend getting quotes from at least GEICO, Progressive, State Farm, and any regional insurers available in your area. Take advantage of discounts, consider your coverage needs carefully, and reevaluate your options annually to ensure you’re always getting the best combination of price and protection.
Remember that your circumstances will change over time. As your driving record improves, your credit score increases, or you age into a lower-risk category, you may qualify for better rates with different insurers. The key to finding the best cheap car insurance is staying informed and being willing to switch providers when better options become available.