In the United States, the average cost of full coverage car insurance is $1,674 per year, according to Bankrate’s 2021 premium data from Quadrant Information Services. That breaks down to about $140 each month. Although car insurance rates can be expensive, many companies offer affordable car insurance rates. We did some research to help you find the cheapest car insurance companies.
To evaluate these providers, we looked at average rates, but also paid attention to each company’s coverage options and discounts and finished with a review of financial strength scores and customer satisfaction ratings. The five companies on our list checked the box in each of these categories. Based on our review, the best cheap auto insurance companies are Erie, American Family, Geico, Auto-Owners, and USAA.
The 5 Best Cheap Car Insurance Companies
- Erie: Best for add-on coverage
- American Family: Best for young driver discounts
- Geico: Best for affordable policies
- Auto-Owners: Best for claims satisfaction
- USAA: Best for military-centric options
Compare the Cheapest Auto Insurance Companies
| AVERAGE ANNUAL PRICE FOR MINIMUM COVERAGE* | AVERAGE ANNUAL PRICE FOR FULL COVERAGE* | AM Best Financial Strength AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. POWER OVERALL CUSTOMER** J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|---|
| Pin Erie | $409 | $1,233 | A+ | 862/1,000 | |
| Pin American Family | $918 | $1,911 | A | 839/1,000 | |
| Pin Geico | $433 | $1,405 | A++ | 833/1,000 | |
| Pin Auto-Owners | $382 | $1,351 | A++ | 845/1,000 | |
| Pin USAA | $384 | $1,225 | A++ | 884/1,000 |
*Data provided by Bankrate.com
**J.D. Power 2021 Auto Insurance Customer Satisfaction Study, based on a 1,000-point scale. We calculated an average of combined regional scores. USAA is not officially rated due to eligibility restrictions.
Best for Add-On Coverage
Why we chose it
Why we chose it
Pros
- Above-average customer service
- Great add-on coverage for customizable policies
- Discounts to help you save
Cons
- Limited availability
- Disappointing digital experience
Types of Coverage Offered
- Pet coverage
- Personal item coverage
- Glass repair coverage
- Roadside assistance
- Rental car reimbursement
- Locksmith coverage
- Erie Rate Lock program
- First accident forgiveness
- Diminishing deductible program
- New car protection
- Better car protection
- Rideshare coverage
- Non-owners insurance
Discounts Available
- Safe driving
- Car safety features
- Multi-vehicle
- Multi-policy
- Reduced mileage
- Young drivers
- Annual payment plan
Best for Young Driver Discounts
Why we chose it
Why we chose it
Pros
- Great discounts
- Variety of coverage options
- Online tools and resources
Cons
- Not available in every state
- Below-average customer service
Types of Coverage Offered
- Gap insurance
- Rental car reimbursement
- Roadside assistance
- Accidental death and dismemberment
- Accident forgiveness
- Rideshare insurance
- OEM coverage
- Travel coverage package
- ForeverCar repair coverage
Discounts Available
- Multi-policy
- Multi-vehicle
- Loyalty
- Early bird
- Switching providers
- Vehicle safety
- Defensive driving course
- Good driving
- Low mileage
- KnowYourDrive program
- Good student
- Teen Safe Driver program
- Student away at school
- Young volunteer
- Generational
- AutoPay
- Pay in full
- Paperless statements
Best for Affordable Policies
Why we chose it
Why we chose it
Pros
- Outstanding customer satisfaction
- Good discounts
- Strong financial ratings
Cons
- No gap insurance
Types of Coverage Offered
- Roadside assistance
- Rental car reimbursement
- Mechanical breakdown coverage
Discounts available
- Vehicle safety features (airbags, anti-lock brakes, anti-theft system and daytime lights)
- New vehicle
- Good driver
- Seat belt use
- Defensive driving course
- Driver education course
- Good student
- Emergency deployment
- Federal employee
- Employee membership
- Military
- Multi-vehicle
- Multi-policy
Best for Claims Satisfaction
Why we chose it
Why we chose it
Pros
- Customizable coverage
- Highly-rated claims handling and customer satisfaction
- Variety of discounts
Cons
- Must work through an agent
- No online quote tool
Types of Coverage Offered
- Roadside assistance
- Gap insurance
- Rental car reimbursement
- Diminished value
- Additional expense
- Collision coverage advantage
- Common loss deductible
- Personal automobile plus package
Discounts Available
- Multi-policy
- Life multi-policy
- Paid-in-full
- Payment history
- Advance quote
- Paperless billing
- Multi-vehicle
- Safety features (anti-lock brakes, anti-theft system and airbags)
- Favorable loss
- Good student
- Student away at school
- Teen driving monitoring
Best for Military-Centric-Options
Why we chose it
Why we chose it
Pros
- Personalized customer service
- Affordable policies
- Many discounts
Cons
- Only available to active and retired military members and their families
- Very few branch locations
Types of Coverage Offered
- Extended benefits coverage
- Roadside assistance
- Rental car reimbursement
- Accident forgiveness
Discounts Available
- Safe driver
- Defensive driving course
- Driver training course
- Good student
- New vehicle
- Multi-vehicle
- Annual mileage
- Vehicle storage
- Family discount
- Length of membership
- Military installation
- Policy bundling
*Data provided by Bankrate.com
**J.D. Power 2021 Auto Insurance Customer Satisfaction Study, based on a 1,000-point scale. We calculated an average of combined regional scores.
The 3 Cheapest Car Insurance Companies
Based on our research, the three cheapest car insurance companies are AAA, Allstate, and American Family. However, car insurance rates vary based on your personal rating factors, including the state you live in, your driving history, and what type of vehicle you drive. While these numbers could give you an idea of what you might pay for minimum coverage with these companies, your rates will likely be different than the average.
| Company | Average Annual Premium for Full Coverage* |
| American National | $597 |
| Peking | $774 |
| MMG | $807 |
*Premium data provided by Bankrate.com
How to Choose the Best Cheap Auto Insurance?
Finding a cheap auto insurance company is often the first step when looking for affordable coverage, but there are other things to consider when shopping for coverage. Understanding these steps could help you find a car insurance policy that fits your unique situation as well as your budget.
- Consider a company’s discounts: Almost every insurance company offers discounts that could lower your premium. Choosing an insurance provider that has multiple savings opportunities that you can take advantage of could help you keep your premium down.
- Review financial strength scores: A company’s financial strength is indicative of its ability to pay you after a covered loss. Looking for insurance companies with good financial strength ratings from AM Best, S&P, and Moody’s might help you feel more confident in a company’s ability to pay claims.
- Analyze customer reviews: Get a sense of what customers think of the company. The NAIC Complaint Index shows the company’s complaint rating, but J.D. Power ratings can also be indicative of a company’s customer satisfaction levels.
- Think about endorsements: Basic car insurance policies don’t cover everything, but endorsements can help you tailor your coverage to your needs. For example, if you travel often, you may want to consider adding roadside assistance coverage.
- Shop around: One of the best ways to find cheap car insurance is to get a few car insurance quotes from different companies. Comparing rates side-by-side allows you to determine which company can offer you the best price for the coverage you need.
How to Lower your Car Insurance Rates
The first step to lowering your car insurance rates is often to shop around to several different companies. Each company uses its own rating system, which means that rates can vary widely. In addition to choosing a company with cheap rates, you could also take advantage of as many discounts as possible. If you also have a home, condo, or renters insurance policy, bundling your coverage with your car insurance is often one of the biggest discounts.
Avoiding accidents and tickets can also be an effective tactic to avoid rate increases. Since these incidents make you appear more high-risk to an insurance company, maintaining a clean driving record could help you avoid surcharges. Additionally, most states allow your credit tier to be used as a rating factor. Improving or at least maintaining your credit score might help you avoid unexpected increases in your premium.
Frequently Asked Questions
Methodology
Reviews.com reviews products, services, and companies based on five criteria to help readers understand how companies compare based on similar metrics. For the best car insurance companies, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores, and online resources from each company to determine top providers.
As for average pricing, we used Bankrate.com’s 2021 data of car insurance, based on the profiles of a 40-year male and female. For full coverage, the details used were the following:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
About the Authors
Jessie has been writing professionally for over a decade with experience in a variety of different topics and industries. She currently resides in the beautiful Outer Banks where she works as a freelance writer and marketing professional full-time. With a bachelor’s degree in history, she is extremely passionate about studying the local culture and teaching others about the history of the area.
