Cheap Car Insurance Companies (January 2023) IN US
The insurers with the lowest average costs among our Cheap Car Insurance Companies of 2023 rating offer inexpensive policies that may make sense for a broad range of motorists. According to our analysis, USAA, Geico, and State Farm consistently offer some of the cheapest annual rates on average, including policies to fit specific needs, such as for a teenager or for a driver with a blemish on their driving record like a speeding ticket or traffic accident. Our rating provides information to help identify the cheapest car insurance for you. Remember that shopping around and comparing quotes is the surest way to find cheap car insurance that best suits your needs.
Cheapest Car Insurance Company for You
What Is the Cheapest Car Insurance Company for You?
The least expensive insurance in our study of cheap car insurance companies is offered by USAA, which sells car insurance policies only to members of the U.S. military, pre-commissioned officers, veterans, and their spouses and children. In addition to having the lowest annual rates on average, USAA also has the cheapest rates for low- and high-mileage drivers and in most other categories included in our analysis of insurers.
Drivers without a connection to the U.S. military may find the cheapest car insurance is offered by Geico, which is rated No. 2 in our survey, or by State Farm, which is No. 3.
Excluding USAA, Geico has the cheapest car insurance coverage for motorists with clean driving records, as well as for those seeking minimum coverage and for higher-mileage drivers. The company also offers the cheapest average rates for male teenage drivers.
State Farm offers the cheapest car insurance for senior drivers, female teenagers, and low-mileage drivers. State Farm also has the cheapest rates for drivers seeking full coverage. Motorists with a speeding violation, traffic accident, or DUI on their record also will find State Farm has the cheapest rates on average.
The rates in our analysis are based on information filed by car insurers with state regulators, which is available to the public. Insurance rates from most of the largest national insurers are included.
An important thing for readers to keep in mind: Insurance rates are highly individualized and based on a number of factors. A person’s age, the type of vehicle they drive, their credit and driving histories, and where they live, among other variables, go a long way toward determining what that particular person will pay for car insurance.
In short, your premiums will differ from those in our rating, which are for comparison purposes only. A more complete description of our process can be found at the bottom of this article.
National Average Rates for a Year-long Car Insurance Policy
$2,500
$1,875
$1,250
$625
$0
$2,500
$1,875
$1,250
$625
$0
USAA
$1,022
Geico
$1,250
State Farm
$1,279
Travelers
$1,355
American Family
$1,383
Nationwide
$1,473
Progressive
$1,540
Average
$1,547
AAA
$1,958
Farmers
$2,078
Allstate
$2,135
Cheap Car Insurance for Good Drivers: Geico
A clean driving record is likely to earn motorists their biggest savings, compared to the national average, when they choose Geico — unless they are eligible for USAA membership, which requires a connection to the military.
Cheapest for Good Drivers
Geico
$1,250
National average rate for year-long policy
$297
Savings compared to national average
Geico’s average annual rate for good drivers is $1,250, $297 less than the national average, a savings of just over 19%, according to our data.
No matter which insurance company you choose, your driving record is a major determining factor in how much you’ll pay for car insurance. Traffic violations, such as speeding tickets, and accidents can have a significantly negative impact on insurance rates.
On the other hand, a clean driving record can result not only in lower rates, but in some cases, the opportunity to earn a discount on your premium.
Annual Rates for Good Drivers
Company
Annual Rate
Savings
USAA
$1,022
$525
Geico
$1,250
$297
State Farm
$1,279
$268
Travelers
$1,355
$192
American Family
$1,383
$164
Nationwide
$1,473
$74
Progressive
$1,540
$7
National Average
$1,547
–
AAA
$1,958
-$411
Farmers
$2,078
-$531
Allstate
$2,135
-$588
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Cheap Car Insurance for Teen Drivers: Geico and State Farm
When it comes to insuring teen drivers – the most expensive demographic on average to insure – Geico and State Farm have the cheapest sample rates, according to our data. Geico’s rates for 17-year-old male drivers are among the lowest in our analysis, while State Farm offers the cheapest car insurance rates on average for 17-year-old female drivers. For members of the military community, USAA has the lowest rates for both male and female teens.
Geico’s $3,742 average annual rate for teenage male drivers is the lowest, according to our data. That’s $2,008 less than the national average, an almost 35% savings. The company’s rate for female teenage drivers, $3,478, is $1,586 cheaper than the average national rate.
State Farm offers the lowest rate for female teen drivers among the companies we researched at $3,280 — $1,784 below the national average, a 35% savings. The company offers cheap car insurance for male teen drivers as well, with an annual rate of $4,019, or a difference of $1,731 from the national average.
Cheapest for Female Teen Drivers
[object Object] $3,28017-year-old female drivers
$1,784
Savings compared to national average
Cheapest for Male Teen Drivers
Geico
$3,742
17-year-old male drivers
$2,008
Savings compared to national average
American Family Insurance is another option for cheap car insurance for teen drivers, with average annual rates of $3,550 and $3,769 for female and male teen drivers, respectively, both well below the national averages.
