Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Nov 19, 2021

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The Lowdown

  • Erie, GEICO, and USAA are among the cheapest companies in the United States
  • You can get auto insurance for at least $48/month
  • A clean driving record and good credit is the fastest road to affordable auto insurance

Do you want to compare the best companies for cheap auto insurance? Unfortunately, dirt cheap car insurance may be difficult to find. But don’t worry – we’re here to help.

Read our guide to learn how to secure the cheapest insurance, where you can find the top 10 cheapest car insurance companies, and what factors determine affordable auto insurance rates.

Once you learn everything about the best companies for cheap auto insurance, enter your ZIP code in the free online quote tool above to compare multiple insurance companies in your area.

Where can I find the best companies for cheap auto insurance?

You can locate the best companies for cheap car insurance by shopping around.

Shopping for auto insurance can get overwhelming. But we’ve located the best companies with the cheapest insurance in the United States.

The National Association of Insurance Commissioners (NAIC) reports that the average monthly rate for full coverage auto insurance is $90 per month. Meanwhile, liability-only car insurance is $48 per month on average.

Let’s compare the best companies to see which one has the most affordable car insurance rate.

Best Companies for Cheap Auto Insurance
CompaniesMonthly Auto Insurance Rates
Erie$33
USAA$37
Farm Bureau Mutual$42
State Farm*$52
American Family$65
GEICO$65
Progressive*$66
MetLife$76
Nationwide$78
Auto-Owners Insurance$86
Farmers$92
Travelers$104
Allstate$104
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Erie car insurance rates are the cheapest on the list. Usually, USAA car insurance and GEICO car insurance are known as the most affordable.

Although Erie has the lowest monthly auto insurance rate, your rates will vary when you apply for auto insurance quotes.

What factors determine cheap auto insurance rates at the best companies?

Several factors determine whether affordable car insurance is available to you. Here’s a list of factors that impact your auto insurance rates.

  • Driving Record
  • Location
  • Age
  • Gender (outlawed in some states)
  • Credit History
  • Coverage Level

Your marital status and deductibles impact monthly rates, but not as much as the characteristics in the list above.

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How does my driving record affect my auto insurance rates?

One of the most critical factors to cheap car insurance is your driving history. Accidents, DUI convictions, and speeding violations will mean more expensive rates regardless of the company.

But how much does auto insurance go up after an incident?

Let’s review the cost of car insurance at the best companies to see how infractions and accidents affect monthly rates.

Average Monthly Rates of the Top 10 Auto Insurance Companies
CompaniesMonthly Rates with a Clean Driving RecordMonthly Rates w/ One Speeding ViolationMonthly Rates w/ One AccidentMonthly Rates w/ One DUI Conviction
Allstate$318$374$416$522
American Family$224$252$310$361
Farmers$288$340$377$393
GEICO$179$220$266$406
Liberty Mutual$398$475$517$634
Nationwide$229$259$283$379
Progressive$283$334$398$331
State Farm$235$266$283$303
Travelers$287$355$357$478
USAA$161$183$210$292
Average$260$306$342$410
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A clean driving record is the fastest road to affordable auto insurance rates. Speeding infractions produce a slight increase, but accidents and DUIs can drive up your monthly rates from 25% to 40%.

These rates are based on full coverage car insurance. If you want liability-only coverage, you could pay 53% less than average.

Are auto insurance rates different for each state?

Yes, they are. Where you live is another significant factor that impacts car insurance rates. Some states have cheaper rates, and the rates auto insurance companies differs by the state as well.

Let’s compare the average monthly car insurance rate by state. Then, we’ll show you which company is the cheapest by state.

Cheapest Auto Insurance Company by State
StateMonthly Auto Insurance RatesCheapest Auto Insurance Company
Alabama$156State Farm
Alaska$131State Farm
Arizona$256GEICO
Arkansas$172State Farm
California$151GEICO
Colorado$260State Farm
Connecticut$229Travelers
Delaware$240State Farm
Florida$269GEICO
Georgia$199State Farm
Hawaii$147GEICO
Idaho$142State Farm
Illinois$185State Farm
Indiana$124Erie
Iowa$138IMT
Kansas$170State Farm
Kentucky$242Farm Bureau
Louisiana$296Farm Bureau
Maine$107MetLife
Maryland$199Erie
Massachusetts$180Citizens
Michigan$756Progressive
Minnesota$176State Farm
Mississippi$181State Farm
Missouri$211State Farm
Montana$191State Farm
Nebraska$187State Farm
Nevada$255State Farm
New Hampshire$168State Farm
New Jersey$234State Farm
New Mexico$170State Farm
New York$231State Farm
North Carolina$126Farm Bureau
North Dakota$191American Family
Ohio$130Westfield
Oklahoma$205State Farm
Oregon$194State Farm
Pennsylvania$150Erie
Rhode Island$299Progressive
South Carolina$173GEICO
South Dakota$202American Family
Tennessee$156State Farm
Texas$221State Farm
Utah$200State Farm
Vermont$145State Farm
Virginia$137Farm Bureau
Washington$146State Farm
West Virginia$176State Farm
Wisconsin$130Erie
Wyoming$177State Farm
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Although Erie, GEICO, and USAA are known for cheap auto insurance, State Farm appears to be the cheapest company in the nation.

Your personal factors may mean more affordable rates with another company. You won’t know until you start comparing various car insurance quotes.

How do age and gender affect auto insurance rates at the best companies?

Age is a determining factor that correlates to your driving experience, but gender describes your overall risk.

How do age and gender impact car insurance per month? Let’s look at the average monthly rates of the best auto insurance companies based on age, gender, and marital status.

Average Monthly Auto Insurance Rates by Age, Gender, and Marital Status
CompaniesSingle 17-Year-Old Female RatesSingle 17-Year-Old Male RatesSingle 25-Year-Old Female RatesSingle 25-Year-Old Male RatesMarried 35-Year-Old Female RatesMarried 35-Year-Old Male RatesMarried 60-Year-Old Female RatesMarried 60-Year-Old Male Rates
Allstate$774$887$285$298$263$260$243$249
American Family$500$678$191$225$184$185$166$168
Farmers$710$762$246$253$213$213$195$204
GEICO$471$523$198$189$192$193$187$190
Liberty Mutual$968$1,143$330$375$317$321$287$307
Nationwide$480$598$224$241$197$199$178$185
Progressive$724$802$225$230$191$181$166$171
State Farm$496$610$195$213$173$173$156$156
Travelers$776$1,071$194$208$182$183$171$173
USAA$401$449$166$177$129$128$121$121
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The cheapest car insurance company for married drivers over 35 is State Farm.

Why not USAA? USAA is for military veterans and their immediate families. Therefore, everyone may not be eligible for an auto insurance policy.

Young male drivers are likely to encounter more expensive car insurance rates. Meanwhile, senior female drivers pay the least.

New drivers, regardless of age, pay significantly more for auto insurance.

According to the Centers for Disease Control (CDC), most accidents that involve fatalities or severe injury involve teen drivers. This factor is one of the reasons young male drivers pay more for car insurance.

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How does your credit history affect auto insurance rates at the best companies?

Credit correlates to risk. The better your credit, the less you’ll pay for car insurance rates.

What happens to your auto insurance rates if you have fair or bad credit? Let’s examine the average monthly rates based on credit history.

Average Monthly Credit-Based Auto Insurance Rates by Company
CompaniesMonthly Rates Based Good CreditMonthly Rates Fair CreditMonthly Rates Bad Credit
USAA$152$185$308
State Farm$181$238$413
GEICO$203$249$355
American Family$224$264$372
Nationwide$244$271$340
Progressive$302$330$395
Farmers$306$325$405
Allstate$322$382$541
Travelers$338$362$430
Liberty Mutual$366$467$734
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Besides USAA auto insurance, State Farm, GEICO, and American Family are the best companies for cheap car insurance.

Bad credit car insurance produces the most expensive rates. If your credit scores change in the middle of your auto insurance policy, notify the insurance company to get cheaper rates on renewal.

Can my coverage level affect the cost of auto insurance at the best companies?

Yes, it can. The minimum coverage level generates the cheapest car insurance rates. But the minimum auto insurance requirements vary by state.

For example, the minimum coverage limits for some states are:

  • $25,000 for bodily injury of one person per accident
  • $50,000 for bodily injury of multiple people per accident
  • $25,000 for property damage per accident

These limits are often abbreviated as 25/50/25. Some states carry lower coverage limits. However, it is generally recommended that you choose higher coverage limits, such as 50/100/50 or 100/300/100.

But how much does that cost? As an example, here’s what auto insurance might look like when you increase your coverage limits.

Average Monthly Auto Insurance Rates by Coverage Level
CompaniesMonthly Rates for Minimum Auto Insurance RequirementsMonthly Rates for Medium Coverage Levels (50/100/50)Monthly Rates for High Coverage Levels (100/300/100)
USAA$200$212$222
GEICO$250$268$286
State Farm$255$272$288
American Family$281$295$285
Nationwide$283$287$292
Progressive$311$335$363
Farmers$327$347$375
Travelers$352$372$385
Allstate$386$408$428
Liberty Mutual$484$505$530
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Your car insurance rates will increase when you raise your coverage limits. USAA, GEICO, American Family, and State Farm are the most affordable companies by coverage level.

What are the top auto insurance discounts?

The best way to secure cheap car insurance is to qualify for discounts. Here’s a list of the best auto insurance discounts from insurance companies.

  • Safe driver discount
  • Good credit discount
  • Multi-policy discount
  • Low-mileage discount
  • Safety features discount
  • New vehicle discount
  • Multi-vehicle discount
  • Usage-based insurance discount
  • Good student discount

Safe driver and good credit discounts have the highest values. As a result, with the right car insurance company, you can save up to 40% off car insurance.

If you have several cars you want to insure, you can save at least 10%. Bundling your insurance is one of the best discounts available.

Also, raising your deductibles can provide cheaper auto insurance rates. Lower deductibles are associated with more expensive rates.

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Which auto insurance company has the biggest market share?

Affordable auto insurance isn’t the only factor that shows whether an insurance company is good or bad.

Market share indicates how many policies a company sells compared to its competitors. More people buying from a company is an indicator that the company is doing a good job. So which companies are the biggest?

Top 10 U.S. Auto Insurance Companies by Market Share and A.M. Best Ratings
RankCompaniesDirect Premiums WrittenLoss RatiosMarket SharesA.M. Best Ratings
1State Farm$41,963,578,0006317.01A++ (Superior)
2GEICO$33,075,434,0007113.41A++ (Superior)
3Progressive$27,058,768,0006210.97A+ (Superior)
4Allstate$22,663,214,000569.19A+ (Superior)
5USAA$14,467,936,000775.87A++ (Superior)
6Liberty Mutual$11,776,654,000624.77A (Excellent)
7Farmers$10,496,476,000614.26A (Excellent)
8Nationwide$6,726,799,000582.73A+ (Superior)
9Travelers$4,697,743,000601.9A++ (Superior)
10American Family$4,687,909,000691.9A (Excellent)
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State Farm, GEICO, and Progressive have the largest market shares in the United States.

The loss ratio shows how much an auto insurance company spends per $100 they earn. For instance, USAA spends $77 on claims for every $100 it earns. But USAA doesn’t have as much business as State Farm.

Best Companies for Cheap Auto Insurance: The Bottom Line

The most affordable car insurance company depends on where you live and other factors that determine car insurance.

In some cases, Erie auto insurance is cheaper than some of the best insurance companies. However, in areas where Erie isn’t available, you should shop for cheap insurance with the top companies in the nation.

State Farm, GEICO, Progressive, and American Family are among the best and cheapest car insurance companies in the United States.

Now that you know more about the best companies for cheap auto insurance, use our free online quote tool to compare multiple companies near you.