According to dollardosh’s analysis of average minimum coverage rates, Geico has the cheapest car insurance at $29 per month.
Looking for low-cost auto insurance? You’ve arrived at the right place. Dollardosh combed through auto insurance quotes from companies across the country to find the cheapest car insurance for a variety of drivers:
- Geico is the most affordable car insurance company overall.
- Geico is the cheapest after an accident.
- American Family is the cheapest after a DUI.
- Geico is the cheapest option for people with bad credit.
Check out Dollardosh’s roundup of the best cheap car insurance companies if you want the best of the best.
Cheap car insurance
We focused our analysis on the cheapest option, which is likely to be your state’s minimum car insurance requirements. This is liability-only auto insurance in many states, which pays for property damage and other people’s medical bills resulting from accidents you cause.
Why you should believe Dollardosh: Our writers and editors adhere to strict editorial guidelines to ensure the fairness and accuracy of our writing and data analyses. Our data analysts take stringent measures to eliminate outliers and inaccuracies in pricing data, which includes rates from every ZIP code in the country where coverage is available and data is available. We change only one variable at a time when comparing rates for different coverage amounts, ages, and backgrounds, so you can easily see how each factor affects pricing. Examine our methodology.
Geico is the most affordable car insurance company overall.
According to Dollardosh’s most recent analysis of minimum coverage rates, Geico is the cheapest major auto insurance company in the country. The average annual rate for Geico was $354, or about $29 per month. Dollardosh also gave the company a 4.5-star rating, which you can read about in our Geico auto insurance review.
Cheap car insurance from the biggest providers
|Company||Average annual rate||Average monthly rate|
|2. State Farm||$452||$38|
|*USAA auto insurance is available only to military||veterans and their families.|
Smaller companies offer low-cost auto insurance.
Finding cheap car insurance does not require you to stick with large insurance companies. Smaller insurers that offer coverage in multiple states, such as Central Insurance, MMG, and Secura, have lower car insurance rates than Geico.
While availability may be limited, regional and small insurers may be able to outbid larger carriers on auto insurance. Furthermore, they frequently provide excellent customer service.
|Company||Average annual rate||Average monthly rate|
|1. Central Insurance||$257||$21|
|4. Hastings Mutual||$428||$36|
|5. Mutual of Enumclaw||$499||$42|
These companies were chosen because of their low rates and availability in multiple states. However, there may be more affordable auto insurance options in your area. Many Farm Bureau insurance companies, for example, are only available in a single state, but they were frequently among the cheapest in our analysis.
How we found the cheapest businesses
The editorial team at Dollardosh examined minimum coverage car insurance rates from pricing analytics firm Quadrant Information Services. Our study looked at 40-year-old drivers from all ZIP codes in all 50 states and Washington, D.C., with varying driving and credit histories. Each driver was driving a 2019 Toyota Camry L.
Full coverage is another option, but it can cost more than $1,000 more per year on average than an annual minimum policy. This is because it includes extra coverage such as uninsured/underinsured motorist protection as well as comprehensive and collision insurance.
State-specific low-cost auto insurance
|State||Cheapest company||Average annual rate|
|Arkansas||Southern Farm Bureau Insurance||$261|
|Kentucky||Kentucky Farm Bureau||$389|
|New Mexico||Central Insurance||$224|
|New York||Main Street America||$572|
|Rhode Island||State Farm||$310|
|South Carolina||American National||$217|
|South Dakota||Farmers Mutual of Nebraska||$172|
|Tennessee||Grange Insurance Company||$193|
|Washington||Grange Insurance Association||$327|
What constitutes cheap auto insurance will differ depending on where you live, as rates vary greatly between states.
We found the cheapest car insurance company on average in each state and Washington, D.C. for comparison purposes.
|Cheap car insurance analysis by city|
|Charlotte||New York City|
|Fort Worth||San Antonio|
However, state averages can only tell you so much. Car insurance rates for minimum coverage can vary even within the same state. That’s why Dollardosh examined rates in some of the country’s largest cities.
Click on your city in the table below to see the cheapest car insurance options.
After an accident or a DUI, you can get cheap auto insurance.
|Company||Average annual rate after one at-fault accident|
|2. State Farm||$618|
|4. American Family||$651|
The most affordable car insurance company varies depending on your driving record. The tables below show the average auto insurance rates from the largest companies for drivers who have been in an accident or have received a DUI.
Geico had the lowest average rate for drivers who had one at-fault accident. On average, American Family is the cheapest option for DUI drivers.
Geico offers the most affordable car insurance after an accident.
Looking for even more affordable auto insurance? Consider a smaller insurer. MMG and other regional insurers offer the most affordable auto insurance rates to drivers who have had one at-fault accident or a recent DUI.
Rates vary according to a variety of personal factors. To find the cheapest auto insurance, compare quotes from at least three different insurers.
Geico offers the most affordable auto insurance for people with bad credit.
Your driving record isn’t the only thing that can raise your insurance rates. Many insurance companies also use credit-based insurance scores to help them calculate car insurance rates. In many states, this can make getting cheap car insurance with bad credit more difficult.
A credit-based score takes into account the same factors as a traditional credit score, such as debt and payment history, but weights them differently. California, Hawaii, Massachusetts, and Michigan prohibit insurers from using credit to determine car insurance rates.
Credit can have a startling effect on auto insurance rates. Drivers with bad credit may pay more than $400 more per year than those with good credit.
Geico is a good place to start if you’re looking for affordable car insurance from a large company. The company has the lowest average rates for good drivers with bad credit, according to our analysis of large insurers.
Regardless of your credit history, you should always shop around for the best car insurance rates.
|Company||Average annual rate for drivers with poor credit|
|5. American Family||$952|
|*USAA auto insurance is available only to military, veterans and their families.|
How to Find Low-Cost Auto Insurance for New Drivers
If you’re a new driver, you might have trouble finding cheap car insurance. This is because auto insurers consider drivers with no recent driving history to be more risky to insure. This category includes new drivers, drivers with lapsed car insurance, immigrants, and visitors to the United States.
Each year, you should shop around and compare policies from various companies to get the best deal on car insurance. If you live with your family, it may be less expensive to stay on their policy until your driving record improves.
How to Get Low-Cost Auto Insurance
If you want to save money by getting the cheapest car insurance possible, you must compare quotes from multiple insurers. You can easily shop for cheap auto insurance online by using Dollardosh’s car insurance comparison tool. You may discover that you already have the most affordable insurance; however, prices can fluctuate, so check once a year.
These suggestions may assist you in obtaining low-cost auto insurance:
- Request discounts. You could be saving money by not taking advantage of car insurance discounts. For example, perhaps you now work from home and drive less frequently than when you purchased your policy. Mention it, and you may be eligible for a low-mileage discount.
- Reconsider your deductible. If you rarely drive or are comfortable with the financial risk, a higher collision and comprehensive deductible may make sense. If you raise your deductible, you will owe more money out of pocket if you have to file a comprehensive or collision claim. However, it is a sure way to get cheaper car insurance.
- Understand when to reduce coverage. Don’t skimp on coverage just to save money on car insurance. However, if you drive an older vehicle, you may be able to forego comprehensive and collision coverage. These types of coverage only pay out up to the current value of your vehicle, less the deductible.
- Profit from major life changes. Certain life events may result in lower car insurance rates, so shop around whenever something major occurs in your life. For example, many businesses provide a discount to married couples or domestic partners. Maybe you moved to a suburb with fewer accidents and crimes. Even if you moved to a more expensive area for car insurance, shopping around can help you get better coverage at a lower cost.
- Quotes will be reviewed once your driving record has improved. Three to five years after any accidents, tickets, or moving violations, look for cheap car insurance quotes online. They could have been removed from your driving record.
Commonly Asked Questions
How do you find low-cost auto insurance?
Shopping around for car insurance quotes is the most effective way to find low-cost auto insurance. Good credit and a clean driving record can also help you keep your rates low. Also, inquire about any discounts that may be missing from your policy.
When does car insurance become less expensive?
On average, teen and young drivers have some of the highest car insurance rates. Rates decrease as you gain experience. Rates for young drivers drop significantly around the age of 25, according to a separate Dollardosh analysis. In general, rates continue to fall throughout adulthood before beginning to rise again around the age of 70, with a more dramatic increase around the age of 75.
Who has the most affordable car insurance?
Geico has the lowest average auto insurance rates among the nation’s largest insurance companies. However, rates vary greatly from person to person depending on factors such as gender, car type, and location. Once a year, compare car insurance rates from at least three insurers to find the best deal.
How do you find the most affordable car insurance?
There is no such thing as the “best” car insurance company for everyone. The best auto insurer will be the one who best meets your requirements.
While cost is important, the cheapest insurer is not always the best. After all, the best car insurance companies offer more than just low rates. A great insurer will put the customer first, whether you need help getting a quote or filing a claim.
Check your state insurance commissioner’s website for complaints and other information about companies in your area to find the best one for you. You should also choose a company with strong financial health, which can be found through organisations such as AM Best.
Finally, ensure that the insurer provides all of the coverage you require. For example, not all carriers provide rideshare insurance, which you’ll need if you work for Uber, Lyft, or a delivery service like GrubHub.