The 10 Cheapest Car Insurance Companies Ranked
We analyzed quotes from 30+ insurers across all 50 states to find the cheapest options for 2025. Here's how they stack up:
| Rank | Company | Avg. Annual Rate | Best For |
|---|---|---|---|
| 1 | USAA | $1,024 | Military members |
| 2 | GEICO | $1,245 | Good drivers |
| 3 | State Farm | $1,312 | Bundling discounts |
| 4 | Progressive | $1,378 | High-risk drivers |
| 5 | Nationwide | $1,425 | Young drivers |
| 6 | Farmers | $1,489 | Rural areas |
| 7 | Liberty Mutual | $1,534 | Custom coverage |
| 8 | Allstate | $1,612 | Safe driver rewards |
| 9 | Travelers | $1,678 | Mature drivers |
| 10 | American Family | $1,723 | Midwest residents |
7 Ways to Get Cheaper Car Insurance
1. Compare Quotes Every 6-12 Months
Insurance rates change constantly. What was cheapest last year might not be cheapest now. Spend 15 minutes comparing quotes annually—average savings: $400/year.
2. Bundle Home and Auto
Most insurers offer 15-25% discounts for bundling multiple policies. Progressive offers up to 23% off when you bundle.
3. Raise Your Deductible
Increasing your deductible from $500 to $1,000 can lower premiums by 15-30%. Just make sure you can afford the higher out-of-pocket cost.
4. Ask About All Available Discounts
Common discounts include: good driver (25%), good student (15%), low mileage (10%), paperless billing (5%), and pay-in-full (8%).
5. Improve Your Credit Score
In most states, insurers use credit scores to set rates. Improving your score from "fair" to "good" can save 20-30% on premiums.
6. Take a Defensive Driving Course
Many states offer a 5-15% discount for completing an approved defensive driving course. Courses typically cost $20-50 and take 4-6 hours.
7. Drop Coverage You Don't Need
If your car is older and paid off, consider dropping collision/comprehensive coverage. Rule of thumb: if your car is worth less than 10x your premium, liability-only might make sense.
Cheapest Car Insurance by State
Car insurance rates vary dramatically by state. Here are the cheapest and most expensive:
🟢 Cheapest States
- Maine - $858/year
- Vermont - $932/year
- New Hampshire - $941/year
- Ohio - $987/year
- Idaho - $1,012/year
🔴 Most Expensive States
- Michigan - $2,611/year
- Louisiana - $2,298/year
- Florida - $2,187/year
- New York - $2,156/year
- California - $2,089/year
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Get Free Quotes →Frequently Asked Questions
What is the cheapest car insurance company?
USAA is the cheapest for military members at $1,024/year average. For non-military, GEICO offers the lowest rates at around $1,245/year for most drivers. However, the cheapest company varies based on your driving record, location, and coverage needs.
How can I get cheaper car insurance?
The best ways to lower car insurance rates include: maintaining a clean driving record, bundling policies, raising your deductible, asking for discounts, and comparing quotes from multiple insurers every 6-12 months.
Is minimum coverage the cheapest option?
Yes, minimum liability-only coverage is the cheapest option, but it provides limited protection. If you cause an accident, you would pay for any damages above your coverage limits out of pocket.
Does credit score affect car insurance rates?
In most states, yes. Drivers with excellent credit pay 40-50% less than those with poor credit. California, Hawaii, and Massachusetts are the only states that prohibit using credit for insurance pricing.