The Cheapest Car Insurance
Here are the cheapest car insurance options for 2025 according to our analysis.
| Cheapest car insurance by category | Company | Average monthly cost |
|---|---|---|
| For good drivers | $121 | |
| After a speeding ticket | $161 | |
| After an accident causing an injury | $211 | |
| After a DUI | $207 | |
| If you have bad credit | $173 | |
| For seniors | $125 | |
| For young drivers | $238 | |
| For teens on parent’s policy | $234 |
The Cheapest Car Insurance Companies
Take a look at which car insurance companies are the cheapest, according to our analysis of top auto insurers.
Who Has the Cheapest Car Insurance?
USAA has the cheapest car insurance rates but only offers auto insurance policies to military members, veterans and their immediate families. If you’re not eligible to buy from USAA, the cheapest car insurance rates are with Nationwide, Travelers and Geico, according to our analysis.
The company that offers the cheapest car insurance can vary depending on your driver profile, such as accidents and tickets. How much you pay for car insurance will depend on several factors, including your age, claims history and driving record.
The Cheapest Car Insurance for Good Drivers: Nationwide
Nationwide is the cheapest company for good drivers. USAA is a top choice for people who qualify.
We found that the national average for good drivers is $2,149 a year. The cheapest companies come in hundreds of dollars below that.
| Company | Average cost per year for good drivers | Average cost per month for good drivers | Total savings per year compared to average |
|---|---|---|---|
| $1,452 | $121 | $697 cheaper | |
| USAA* | $1,475 | $123 | $674 cheaper |
| $1,597 | $133 | $552 cheaper | |
| $1,849 | $154 | $300 cheaper | |
| $1,866 | $156 | $283 cheaper | |
| Average | $2,149 | $179 | - |
*USAA is available only to the military, veterans and their families.
The Cheapest Car Insurance After a Speeding Ticket: Nationwide
Our analysis found that Nationwide offers the cheapest car insurance after a speeding ticket for the general public. USAA auto insurance is a little cheaper but only available to those with a military connection.
Our analysis found that having a speeding ticket on your driving record means an average insurance increase of 25%.
| Company | Average cost per year for drivers with a speeding ticket | Average cost per month for drivers with a speeding ticket | Total savings per year compared to average |
|---|---|---|---|
| USAA* | $1,803 | $150 | $866 cheaper |
| $1,928 | $161 | $741 cheaper | |
| $2,068 | $172 | $601 cheaper | |
| $2,172 | $181 | $497 cheaper | |
| $2,403 | $200 | $266 cheaper | |
| Average | $2,669 | $222 | - |
The Cheapest Car Insurance After an Accident Causing Injury: Nationwide
Nationwide has the cheapest rates for all drivers if you caused an accident that injured someone else, with Travelers following close behind. USAA offers excellent rates to military members and veterans.
Nationally, the average increase after an accident is 50% compared to a driver with a clean record.
| Company | Average cost per year after an accident with injuries | Average cost per month after an accident with injuries | Total savings per year compared to average |
|---|---|---|---|
| USAA* | $2,174 | $181 | $1,036 cheaper |
| $2,407 | $201 | $803 cheaper | |
| $2,428 | $202 | $782 cheaper | |
| $2,522 | $210 | $688 cheaper | |
| $2,566 | $213 | $644 cheaper | |
| Average | $3,210 | $268 | - |
The Cheapest Car Insurance After a DUI: Progressive
Progressive has the cheapest rates in our analysis for drivers with a DUI, followed by Travelers. USAA is a good option for military car insurance, catering to military members and veterans who qualify. A DUI conviction leads to an average increase of 72%.
Car insurance companies usually request motor vehicle records before your policy renewal time to check for tickets and convictions such as DUIs.
| Company | Average cost per year for a driver with one DUI | Average cost per month for a driver with one DUI | Total savings per year compared to average |
|---|---|---|---|
| $2,485 | $207 | $1,108 cheaper | |
| $2,766 | $231 | $827 cheaper | |
| USAA* | $2,781 | $232 | $812 cheaper |
| $2,789 | $232 | $804 cheaper | |
| $2,961 | $247 | $632 cheaper | |
| Average | $3,593 | $299 | - |
The Cheapest Car Insurance for People With Bad Credit: Nationwide
Nationwide has the cheapest car insurance for drivers with bad credit, among the companies we analyzed. USAA is a good bet for military members and veterans.
Poor credit can cause higher auto insurance rates than having a DUI or at-fault accident on your record. Average auto insurance costs go up 96% for drivers with poor credit compared to those with good credit.
| Company | Average cost per year for drivers with poor credit | Average cost per month for drivers with poor credit | Total savings per year compared to average |
|---|---|---|---|
| $2,076 | $173 | $2,096 cheaper | |
| USAA* | $2,799 | $233 | $1,344 cheaper |
| $2,826 | $236 | $1,317 cheaper | |
| $2,830 | $236 | $1,113 cheaper | |
| $3,556 | $296 | $587 cheaper | |
| Average | $4,143 | $345 | - |
The Cheapest Car Insurance for Seniors: Nationwide
Nationwide has the best rates for senior drivers ages 65 and 80, according to our analysis. The best car insurance for seniors will vary based on where you live and your personal details, such as your driving record.
We found that senior drivers see an average increase of 11% from age 60 to 70. By age 80, your rates may have increased 22% above the rate you were paying at age 70 and 35% more than your car insurance cost at age 60.
| Company | Average cost per year for senior drivers | Average cost per month for senior drivers | Total savings per year compared to average |
|---|---|---|---|
| $1,504 | $125 | $820 cheaper | |
| USAA* | $1,639 | $137 | $685 cheaper |
| $1,820 | $152 | $504 cheaper | |
| $1,949 | $162 | $375 cheaper | |
| $2,006 | $167 | $318 cheaper | |
| $2,007 | $167 | $317 cheaper | |
| Average | $2,324 | $194 | - |
The Cheapest Car Insurance for Young Drivers: Erie
Erie, Travelers, Nationwide and Geico are the cheapest car insurance companies for young drivers ages 18 to 25 who are buying their own policies. USAA is also usually a top choice if you qualify.
Car insurance for a new driver is typically cheaper if you remain on a parent’s policy if you’re still living at home, whether you’re an 18-year-old or 25-year-old.
| Company | Average cost per year for young drivers | Average cost per month for young drivers | Total savings per year compared to average |
|---|---|---|---|
| USAA* | $2,666 | $222 | $1,599 cheaper |
| $2,858 | $238 | $1,407 cheaper | |
| $3,183 | $265 | $1,082 cheaper | |
| $3,228 | $269 | $1,037 cheaper | |
| $3,262 | $272 | $1,003 cheaper | |
| Average | $4,265 | $355 | - |
The Cheapest Car Insurance After Adding a Teen Driver: Nationwide
Nationwide has the lowest rates for adding a teen driver age 16 to 19 to a parent’s policy, according to our rate analysis. Other cheap companies include Shelter, Erie and Progressive. USAA also has low rates for adding a teen if you’re eligible.
It can be hard to find cheap car insurance for teens because young new drivers pose a considerable risk to insurers. Adding a teen driver typically doubles the parent’s auto insurance bill. But that’s usually less expensive than having the teen driver buy their own separate policy.
| Company | Average cost per year to add a teen driver to a parent’s policy | Average cost per month to add a teen driver to a parent’s policy | Total savings per year compared to average |
|---|---|---|---|
| $2,808 | $234 | $1,626 cheaper | |
| $3,025 | $252 | $1,409 cheaper | |
| USAA* | $3,056 | $255 | $1,378 cheaper |
| $3,198 | $266 | $1,236 cheaper | |
| $3,893 | $324 | $541 cheaper | |
| Average | $4,434 | $369 | - |
States With the Cheapest Car Insurance
Car insurance rates vary by state due to the different risks and claims made in each state. See which auto insurer is offering the cheapest price in your state for full coverage.
| State | Cheapest car insurance company | Average annual cost for the cheapest company | Average monthly cost for the cheapest company |
|---|---|---|---|
| $1,234 | $103 | ||
| $1,562 | $130 | ||
| $1,399 | $117 | ||
| Nationwide | $1,237 | $103 | |
| $1,872 | $156 | ||
| Colorado Farm Bureau | $1,518 | $127 | |
| Geico | $1,311 | $109 | |
| Travelers | $1,396 | $116 | |
| Travelers | $2,289 | $191 | |
| $1,647 | $137 | ||
| Geico | $873 | $73 | |
| Geico | $922 | $77 | |
| Hastings | $1,194 | $100 | |
| Hastings | $809 | $67 | |
| Hastings | $647 | $54 | |
| Nationwide | $1,172 | $98 | |
| Travelers | $1,430 | $119 | |
| Southern Farm Bureau | $2,116 | $176 | |
| Concord | $726 | $61 | |
| Geico | $1,132 | $94 | |
| $896 | $75 | ||
| Hastings | $1,391 | $116 | |
| Nationwide | $1,270 | $106 | |
| Nationwide | $1,167 | $97 | |
| Nationwide | $1,292 | $108 | |
| State Farm | $1,484 | $124 | |
| Auto-Owners | $1,342 | $112 | |
| Capital Insurance | $1,332 | $111 | |
| MMG Insurance | $898 | $75 | |
| Travelers | $1,402 | $117 | |
| Central Mutual | $1,550 | $129 | |
| Progressive | $1,223 | $102 | |
| State Farm & Progressive | $854 | $71 | |
| Nationwide | $989 | $82 | |
| Nationwide | $672 | $56 | |
| Oklahoma Farmers Union | $1,644 | $137 | |
| Travelers | $1,308 | $109 | |
| Travelers | $1,235 | $103 | |
| State Farm | $1,658 | $138 | |
| Travelers | $1,637 | $136 | |
| Nationwide | $1,658 | $138 | |
| Travelers | $1,285 | $107 | |
| Texas Farm Bureau | $1,036 | $86 | |
| Nationwide | $1,033 | $86 | |
| Progressive | $834 | $70 | |
| Travelers | $1,074 | $90 | |
| Kemper | $1,082 | $90 | |
| $1,764 | $147 | ||
| Rural Mutual Insurance | $825 | $69 | |
| Geico | $1,210 | $101 |
Source: Quadrant Information Services.
Cheapest Car Insurance by Age
Erie has the lowest-cost insurance for drivers age 16, 18 and 20, based on our analysis of auto insurance rates by age. Nationwide is the cheapest option for drivers of many other ages.
| Age | Cheapest company | Average annual cost |
|---|---|---|
| 16 | $4,401 | |
| 18 | Erie | $3,539 |
| 20 | Erie | $2,859 |
| 25 | $1,742 | |
| 35 | Nationwide | $1,516 |
| 45 | Nationwide | $1,421 |
| 55 | Nationwide | $1,312 |
| 65 | Nationwide | $1,311 |
| 75 | Nationwide | $1,485 |
| 80 | Nationwide | $1,641 |
How To Get the Cheapest Car Insurance Quotes
Ryan McMahon
Advisory Board Member
Amy Danise
Insurance Managing Editor
Penny Gusner
Insurance Senior Writer
Les Masterson
Insurance Editor
Michelle Megna
Insurance Lead Editor
Ashlee Valentine
Insurance Editor
Shop Around Regularly as Rates Change
Cost varies by state. Some carriers are more expensive in some states and more competitive in others. I don’t believe there is one universally cheap or expensive insurance company. Also, cost is a factor of the last time the insurance company updated its rates, so a company that was more expensive six months ago could now be the cheapest.
Advisory Board Member
Get Quotes From Multiple Companies
Comparing car insurance quotes with several companies is a great way to ensure you’re getting the most affordable car insurance. I would compare the rates of at least three companies. And if you make any changes to your policy, such as adding a vehicle, shop around again because the insurer that offered the best rates before may not be the cheapest anymore.
Insurance Managing Editor
Reconsider Your Deductible
Raising your car insurance deductible is an easy change that gets you cheaper rates. I’m a data nerd, so I crunched the numbers and found that if you raise your deductible from $250 to $500 you can save 9% on average—and 19% if you raise it from $250 to $1,000.
Insurance Senior Writer
Look for a Good Bundling Discount
Consider buying your auto and home (or renters) insurance from the same company. I find it convenient to have one insurer for both policies. Also, many companies offer a pretty good discount for bundling auto and home insurance, which typically gives you cheaper car insurance rates.
Insurance Editor
Review Your Coverage
Review your coverage, limits and deductibles to verify they continue to fit your needs. This can help prevent you from paying for unneeded coverage. I would avoid lowering liability limits because auto accident expenses are continuously increasing, and having inadequate coverage could be catastrophic for your finances.
Insurance Lead Editor
Ask About Discounts
Many auto insurance discounts are automatically applied when you get a quote but I also ask my agent if there are others I may be missing out on. For example, see if you qualify for a low-mileage discount if you drive only a small number of miles annually. Don’t hesitate to ask your agent about other tips to lower car insurance costs beyond discounts.
Insurance Editor
The Risks of Buying Cheap Car Insurance
Buying a cheap car insurance policy with bare-bones limits and minimal coverage may sound like a pathway to low costs, but it could end up costing you much more in the long run. Risks of purchasing such a policy include:
We Answer Your Questions
Jason Metz
Insurance Lead Editor
Ashlee Valentine
Insurance Editor
Michelle Megna
Insurance Lead Editor
Les Masterson
Insurance Editor
What is the cheapest type of policy I can have on a financed car?
– Jack S., Tempe, Arizona
When you have a financed car you’ll generally need to look for cheap full-coverage auto insurance. Your lender will require collision and comprehensive insurance to cover the vehicle, and this coverage, plus state-required coverage like liability insurance, make up a full coverage policy.
Insurance Lead Editor
What happens if I forget to list a speeding ticket my husband got last year when getting a car insurance quote?
– Diana G., Marble Falls, Texas
The auto insurer will usually find out about the ticket when it gets your husband’s motor vehicle report when processing your quote. With the ticket details, your final rate quote will likely increase over your initial one.
Insurance Editor
What are some discounts I should look for when buying car insurance?
– Saul R., White Plains, New York
Most discounts are automatically applied based on the information you provide during the quoting process such as discounts for your car’s safety features, claims-free status or insuring multiple cars. Some discounts you can seek out include a discount for going paperless, for bundling your auto and home insurance with the same insurer or paying your policy in full.
Insurance Lead Editor
What are the options for car insurance deductibles?
– Clint C., Edmond, Oklahoma
Deductible options for collision and comprehensive coverage usually are $250, $500, $1,000, $1,500, $2,000 or $2,500, but they can vary from insurer to insurer. A lower deductible may sound nice, but we found that rates are 10% higher on average if you choose a $250 deductible over a $500 deductible.
Liability insurance does not have a deductible.
Insurance Editor
Methodology
To identify the cheapest car insurance companies, we evaluated each insurer based on its average rates for a variety of drivers and the results of our customer service, pricing and claims satisfaction surveys.
Auto insurance rates (80% of score): We analyzed average rates from each company for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit, drivers caught without insurance, adding a teen driver, senior drivers and young drivers. We also analyzed average rates for minimum coverage and higher liability limits (250/500/250).
Unless otherwise noted, rates are based on a 40-year-old female driver insuring a new Toyota RAV4 and coverage of:
- $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
- Uninsured motorist coverage of 100/300.
- Collision and comprehensive insurance with a $500 deductible.
State minimum coverage rates reflect the minimum amount of auto insurance required in each state.
Source: Quadrant Information Services.
Satisfaction with customer service and price; satisfaction with claims process (20% of score): For customer satisfaction, we surveyed 3,000 American drivers with car insurance who purchased a new policy or renewed their policy within the last 12 months, 200 per company. This online survey was commissioned by Forbes Advisor and conducted by market research company Talker Research, in accordance with the Market Research Society’s code of conduct. Data was collected from October 11-29, 2024. The margin of error is ± 1.5 point with 95% confidence. This survey was overseen by Talker Research, whose team members are members of the Market Research Society (MRS) and the European Society for Opinion and Marketing Research (ESOMAR).
For satisfaction with the claims process, we surveyed 3,000 American drivers who had filed a car insurance claim within the past 12 months. This online survey was commissioned by Forbes Advisor and conducted by market research company Talker Research, in accordance with the Market Research Society’s code of conduct. Data was collected from October 11 to November 12, 2024. The margin of error is ± 1.8 point with 95% confidence. This survey was overseen by Talker Research, whose team members are members of the Market Research Society (MRS) and the European Society for Opinion and Marketing Research (ESOMAR).
Read more: How Forbes Advisor rates car insurance companies
Other Car Insurance Companies We Rated
These companies were also part of our analysis.
| Company | Forbes Advisor rating for cheap car insurance | Availability |
|---|---|---|
| 3.6 stars | 26 states | |
| 3.5 stars | 10 states | |
| 3.4 stars | 50 states and Washington, D.C. | |
| 3.2 stars | 48 states and Washington, D.C. | |
| 3.1 stars | 15 states | |
| 1 star | 50 states and Washington, D.C. |
Best Car Insurance Companies 2025
With so many choices for car insurance companies, it can be hard to know where to start to find the right car insurance. We've evaluated insurers to find the best car insurance companies, so you don't have to.
Compare Car Insurance Quotes
Via Forbes Advisor's Partner
Cheap Car Insurance Frequently Asked Questions (FAQs)
Who has the cheapest car insurance?
Nationwide, Travelers, Geico and Erie have the cheapest car insurance in our analysis of rates for good drivers. USAA also has very good rates but sells auto insurance only to military members, veterans and their families.
Our findings are a jumping off point, as car insurance costs vary greatly based on personal factors like your location, vehicle and driving record. You’ll want to compare quotes with multiple insurers to find the cheapest car insurance for your particular situation.
What is the cheapest type of car insurance?
The cheapest type of car insurance is a state-minimum policy, sometimes referred to as liability-only auto insurance. It provides the minimum car insurance required by your state to drive legally. A state-minimum car insurance policy costs an average of $631 per year, based on our analysis. That’s over $1,500 cheaper than the average annual cost of a full coverage policy ($2,149).
A state-minimum policy is cheap because it usually has low liability car insurance limits, which pay for injuries and property damage you cause others in an auto accident. Once accident costs pass your liability limit, you’ll be personally responsible for any remaining expenses and can be sued for them. For better financial protection, it’s wise to raise your liability limits if possible so it’s less likely that your insurance limits will be exceeded.
Should I drop collision and comprehensive coverage to get cheap car insurance?
If you drop collision and comprehensive coverage you’ll get cheaper insurance—but you’ll lose the ability to make a claim with your insurer if your car is stolen, totaled or severely damaged in an accident you cause.
The value of your vehicle can help determine if removing comprehensive and collision is a good idea or not. If your car’s value is low and would result in a small claim check if totaled, consider dropping the coverage if you own the car outright. A vehicle with a lease or loan must have comprehensive and collision coverage no matter the value because the lessor or lender mandates it.
How do I get cheap car insurance for a teenager?
Comparison shopping with multiple insurers is the best way to find cheap car insurance for teen drivers. Auto insurance for teenagers is quite pricey—parents can expect their policy costs to double—because of the inexperience and immaturity of these novice drivers.
It costs an average of $2,408 more per year for parents to add a 16-year-old to their car insurance policies, according to our analysis. Adding a teen to a parent’s policy is typically the best way to get a teen insured. It costs an average of $8,608 per year for a 16-year-old to purchase an auto insurance policy on their own.
How can I find the cheapest car insurance quotes?
You can find the cheapest car insurance quotes by comparing rates from multiple insurance companies. Insurers all have different formulas for calculating rates, so you’ll often find a wide range of prices for the exact same coverage.
If you’re a safe driver, a usage-based insurance (UBI) program may be worth trying out to see if you get good rates. With some companies, you can get a sign-on discount plus a bigger discount at renewal time—if your driving scores well. Before signing up for a UBI program, check to see if your rates could possibly go up if your driving score isn’t great.
Do teachers get cheaper car insurance?
Teachers may be able to score cheaper car insurance rates from insurers that offer affiliate group discounts for educators or certain occupations, such as teachers or school administrators. For instance, if you’re part of a national educational association—such as the Association of American Educators—ask your insurance company if you can get a price break on car insurance for teachers.
Companies that offer discounts for teachers include Country Financial, Geico and Liberty Mutual. While a discount for teachers is nice, the final price you pay is most important. Be sure to shop around with multiple auto insurance companies to find out which ones have the best rates for you.
