Just seven car insurance companies make up more than 65% of the U.S. market for individual auto policies. They are Allstate, Farmers, Geico, Liberty Mutual, Progressive and State Farm, which are available to anyone, and USAA, the insurer for active military members, veterans and their families.
If you don’t shop around for your car insurance, you could be paying a much higher monthly premium than you need to be.Getting a good deal on car insurance is all about finding the balance between the coverage you want and rates that fit your budget.
The average cost of a car insurance policy is $2,390 per year, or $200 per month, when averaged across states for our sample driver with a full coverage policy.
The average cost of a car insurance policy meeting only the minimum requirements of each state is $937 per year, or $78 per month.
So which auto insurance company has the cheapest rates?
USAA is the cheapest car insurance company in the US, according to our analysis. This insurer has a low representative rate of just $885 per year, which is nearly $300 less than the next cheapest insurance company in our study.
The caveat here is that USAA’s coverage is only available to active-duty military, veterans, or their family members.
GEICO is the second largest auto insurance company in the country and operates in all 50 states and D.C. A minimum coverage policy with GEICO costs $409 for six months. GEICO also has one of the auto insurance market’s best quote tools, so it’s easy to get an instant rate online and comparison shop.
Geico offers some of the lowest study rates for nearly every driver profile, except the one with a DUI. This insurance company really stands out from its competitors when we look at our 25-year-old driver profiles. Geico’s representative rates for these profiles are hundreds of dollars cheaper than what nearly every other insurer offers.
State Farm is the next cheapest car insurance company in our study. With an annual representative rate of $1,234, State Farm is still cheaper than the national average. According to our analysis, this insurer is a great option for representative profiles with less-than-stellar driving records. State Farm’s study rates are well-below the national average for the profiles with a speeding ticket or an accident. This insurer was the cheapest of all for the profile with a DUI.
State Farm has an A++ (Superior) credit rating from AM Best and a four of five score with J.D. Power. State Farm focuses on value over lowest price. Customer service is excellent, and the company offers many insurance products as well as financial services like bank accounts, credit cards and home loans for one-stop shopping.
Like Geico, State Farm has rideshare insurance available in select states for Uber and Lyft drivers.
State Farm offers a few discounts, but not as many as Geico or Nationwide. Specifically, State Farm offers discounts for good drivers, good students, multiple policies and vehicle safety equipment.
Travelers comes next in our ranking of the cheapest car insurers. It’s still within striking distance of State Farm and Geico, however, with a representative premium of $1,267 per year. Across the range of our driver profiles, regardless of age, gender, credit score, or driving history, Travelers had study rates that were a bit below average.
Progressive’s representative rate is still a bit below the average among all the companies, with a study premium of $1,373. The same is true across most of our driver profiles, with Progressive’s rates hovering close to or just below the average. Progressive is a great option for the driver profile with a DUI, with a study rate much lower than average. However, it is among the most expensive for the profile with an accident.
Now the question you want to ask is “How do I get cheap car insurance?”
None of us wants to spend more than we need to for car insurance, but it isn’t always obvious how to get lower rates.
Dozens of insurance companies, large and small, are vying for your business. Many have an eye-glazing assortment of policy options, making it hard to compare policies and figure out who’s offering lower car insurance rates.
Here are eight things you can do to get cheap car insurance:
- Add multiple cars or drivers to your policy
- Don’t assume any one company is the cheapest
- Take a Defensive Driving Course
- Combine auto and home policies
- Ask about discounts
- Update your policy information regularly
- Increase Your Deductibles
- Consider usage-based or pay-per-mile insurance
- Skip comprehensive and collision coverage for an older car
Is the minimum required insurance in my state enough coverage?
In many cases, having the minimum required by your state may be legal but would not cover you completely in a serious accident. The minimum limit for damages could leave you personally responsible for any expenses above the insurance limit. If you own your home, have investments or other assets, protect them by raising your auto insurance coverage limits.
Who has the cheapest car insurance in the US?
USAA has the lowest car insurance rates in the US.
Which state has the cheapest car insurance?
Maine has the cheapest car insurance rate.Other are New Hampshire, Ohio, Virginia and Idaho.
How much is the average car insurance rate monthly in the US?
In the U.S., the average cost of car insurance is $1,457 per year. That’s $704 per six-month policy or about $121 per month. However, there are a lot of variables that determine your car insurance rates