do you know the exact same driver could be charged $36 per month by one insurance company and $123 per month by another?
Our car insurance analysis — based on hundreds of thousands of quotes collected across the country — backs that up. Read on to find out the cheapest companies in the country, in your state and for certain types of drivers.
Beyond the data, the best advice we can give drivers looking for their best car insurance rates is to shop around. No single insurer will be the cheapest for every driver, but our research will give you a good foundation to start your search.
What is the cheapest car insurance company?
Our analysis found that USAA and State Farm are the most affordable major insurers in the country. USAA cost an average of $215 for a six-month policy, 55% below the national average. State Farm cost $356 (24% below the national average) for a six-month policy.
Although USAA is easily the cheapest option among major insurers, only active military members, veterans or their families will qualify for a policy.
Among insurers that have a smaller national footprint, Farm Bureau Insurance, at $218 for a six-month policy, and Erie, at $226, rank as the cheapest.
These insurers don’t have the same name recognition as some of the companies you may recognize from national television campaigns, but could help you find savings if you’re looking for the cheapest rate.
lick on a company name to read our full review.
|2||Farm Bureau Mutual (IA Group)||$218|
Insurers with an asterisk offered quotes in at least 20 states.
Read on to see our recommendations for the cheapest insurers for particular driver profiles and states.
Now that you’ve determined how much car insurance you need, shop around between insurers and apply all discounts possible
Once you know how much coverage to buy, it’s time to compare car insurance companies. Even when you opt for the exact same coverage levels with two different insurers, one company could be much cheaper for you than another based on how it calculates its rates.
It’s easier than ever to compare insurance quotes using online quote tools. But you may want to talk to an insurance agent to ensure you get the most accurate quote possible
By talking to an agent, you can see if you qualify for discounts that may not be applied in the online quote tool process. Car insurance discounts are generally broken into four categories:
- Driver safety discount: Cheaper rates for having a safe driver history or taking defensive driving courses.
- Driver status discount: Discounts lifestyle elements that insurers reward with cheaper rates. These can range from incentives — such as a student getting savings for obtaining good grades — to elements you can’t control, such as a senior discount for those of a certain age.
- Policy discount: Savings offered for buying more products or coverage from a particular insurer. The most common discount of this type is a home and auto bundle, in which you get big savings from buying home and auto insurance with the same company.
- Vehicle discount: If features of your vehicle increase its safety, such as anti-theft technology, you may qualify for a discount.