If you’re looking for the cheapest car insurance, you’ve come to the right place. Nerd Wallet analyzed rates from auto insurers across the country to find cheap car insurance for a variety of drivers. The cheapest car insurance will likely be the minimum coverage required in your state, so we focused our rate analysis on those minimums. In many states, this is liability insurance only, which covers property damage and medical bills for others due to accidents you cause.
Why you can trust Nerd Wallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate outliers and inaccuracies in pricing data, which include rates from every ZIP code in the country where coverage is offered and data is available. When comparing rates for different coverage amounts, ages and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing. Read our methodology.
What is the cheapest car insurance company?
State Farm and USAA are the most affordable major insurance companies in the country. State Farm offers an average rate of $532 per year for a minimum-liability policy, 26% below the national average. USAA costs an average of $432 per year, although only active military members, veterans or their families can qualify.
If you think that cheap car insurance rate is too good to be true, it probably is
It’s our business to make sure that you, your car, and your livelihood are covered in the event of an accident. Without quality car insurance coverage, you could face unexpected financial hardship.
And we get it, you’re looking for the best price you can get (it’s one of the things we like most about you!), but cheap doesn’t just mean low cost, it usually means low quality as well.
Moral of the story: The cheapest insurance usually comes at a high price if you’re in an accident, so make sure you choose a good, reputable car insurance company that takes care of you as well as your wallet.
Check out how you can customize your insurance so you only pay for what you need.
What are some of the risks of cheap car insurance?
- Lack of coverage options
- High deductible payments
- Poor customer service, especially when you need them most
Nerd Wallet has named us one of the best car insurance companies of 20204. Proof that quality and price don’t have to be a compromise when it comes to choosing between auto insurance companies.
How can I lower my car insurance rates?
Certain factors influence your auto insurance rates, including some things you can control:
- The kind of car you drive – the price and style of your vehicle will impact how much your rates will be. The age of your car also matters; older cars tend to be cheaper to insure.
- The kind of coverage you choose – If you drive an older car with high mileage, you might consider dropping collision or comprehensive coverage if you need to keep your premiums low.
- The amount of your deductible – Higher deductibles can significantly lower car insurance premiums. While it could mean more out-of-pocket expenses in the event of an accident, it could also mean paying less over time.
- Where you keep your car – Rates are determined to some degree by the area in which you live and park your car.
- The number of drivers on your policy – If you add someone to your policy, your rate will increase, particularly if that “someone” is a new teen driver. Statistically teenagers have more accidents so they’re more expensive to insure.
- Your driving record – Insurance rates can sometimes increase after an accident or moving violation. The good news? You may qualify for a discount after a certain period of driving accident-free.
- You can learn more about the factors that impact the cost of car insurance– and be sure to take them into account as you shop for coverage.