Cheapest Auto Insurance Companies in 2026

Auto-Owners, Erie, and Nationwide are the cheapest auto insurance companies, with Auto-Owners as the top pick for its competitive pricing and policy perks.

Erie offers competitive rates, flexible policies, and useful add-ons. Nationwide provides savings for customers who bundle multiple policies. The cheapest option depends on your driving history, location, and coverage needs.

Price, financial strength, and policy features also affect overall value. A higher premium may include valuable protection. Compare insurers and learn more about why auto insurance rates vary so much.

10 Best Companies: Cheapest Auto Insurance

That said, while prices may vary by individual, it’s helpful to know which companies are known for offering affordable rates.

You can compare multiple providers side by side, review available policy options, and find cheap auto insurance coverage today using our free quote comparison tool.

Comparing the Cheapest Car Insurance in the U.S.

Auto insurance rates vary widely by state because location plays a major role in pricing. Comparing auto insurance rates by state can help drivers see how claim frequency, laws, and repair costs affect premiums.

Who has the cheapest auto insurance in the USA? Our table compares low-cost auto insurance coverage options based on where you live.

Cheapest Liability-Only Auto Insurance Provider by State

Vermont, Wyoming, New Hampshire, Maine, and Iowa are among the cheapest states for auto insurance. Drivers in these states often benefit from lower average premiums.

Fewer claims, lighter traffic, and local insurance regulations may contribute to these lower rates. Still, comparing quotes can help you find the best rate in your state.

Lower average rates can make affordable coverage easier to find, but prices still vary by company, driver profile, and coverage level. Comparing quotes from several insurers can help you find the best rate in your state.

Even a short move could change what you pay for coverage. Michigan insurers can’t use your ZIP code to set the price. California does allow location to play a role, though your driving record, annual mileage, and years behind the wheel matter more.

You may lower your rates by bundling auto insurance with other coverages, especially if your insurer offers multi-policy discounts. This can help you save more when multiple policies qualify.

If your rates increase or your lifestyle changes, shop around for new quotes. Comparing options online before you buy can help ensure you’re getting the best deal.

The Cheapest Auto Insurance Overall

This table compares minimum coverage vs. full coverage rates from affordable auto insurance companies. Use it to see which insurers offer the lowest prices based on the coverage level you need.

Auto-Owners leads with $52 for minimum and $120 for full coverage, followed by Erie at $56 and $128.

Auto Insurance Monthly Rates by Coverage Level

Nationwide remains competitive, with minimum coverage at $63 per month and full coverage at $144 per month. The General has the highest rates at $94 and $216, respectively.

The table also shows how coverage level affects costs. Liability-only policies, which typically include bodily injury and property damage liability coverage, are usually the cheapest because they provide the minimum protection required by the state.

However, liability-only coverage may not provide enough protection for a new, valuable, leased, or financed vehicle. Broader coverage may be worth the added cost. Your driving record also affects your premium, as the next comparison of rates before and after a speeding ticket shows.

Read More: Comprehensive Auto Insurance

Cheapest Insurance Companies After a Speeding Ticket

Drivers with a traffic ticket often pay higher insurance rates, but some companies still offer affordable options. Auto-Owners has the lowest rates, averaging $63 for minimum coverage and $152 for full coverage.

Erie and Nationwide also stay competitive, with minimum coverage rates under $80. In comparison, higher-risk insurers like The General charge nearly twice as much for full coverage.

Auto Insurance Monthly Rates Before & After a Ticket

Traffic tickets often come with a small fine, but they may also raise your auto insurance rates for several years. Insurers may view even a single moving violation as a sign of higher risk, potentially resulting in a more expensive policy.

A traffic ticket adds about $11 to $21 per month to the rates shown here, or $132 to $252 per year. Because increases vary by company, comparing new quotes may help you find a lower rate after the same violation.

To see how tickets can affect your insurance, review how violations may change your rates over time. The infographic highlights ticket forgiveness, traffic school, quote comparison, and clean driving as possible ways to reduce or prevent further increases.

For more details about rate changes, insurer surcharges, and potential savings, read our guide: How does a speeding ticket affect auto insurance rates? It explains how long violations may remain on your record and how they may influence your premiums.

Insurers evaluate violations differently, so that the same ticket may result in a small increase with one company and a much higher surcharge with another. Comparing quotes can reveal which providers offer more competitive rates for your driving record.

Tickets are not the only incidents that can raise insurance costs. An at-fault accident may lead to an even larger increase, making it important to compare how companies price coverage for drivers with a history of accidents.

Cheapest Insurance Providers After an Accident

Your auto insurance rates can increase anywhere from $228 to $360 annually if you get into an accident, depending on the type of policy that you have.

Auto-Owners is the cheapest for drivers with an accident record at $71 per month. The best auto insurance companies for high-risk drivers may offer discounts for completing an approved defensive driving program.

Auto Insurance Monthly Rates Before & After an Accident

You may also want to raise your deductible after an accident, since choosing a $1,000 deductible can lower your premium. Before making the change, be sure you could comfortably pay the higher out-of-pocket cost if you file another claim.

There are a few more ways you can lower your rate over time. Try getting quotes from different insurers, check for any discounts you might have missed, and keep up good driving and credit habits if your state allows it.

Got a higher bill after a crash? Don’t assume the number is final. Your insurer may need updated mileage or may have missed a discount, so give them a call. Then pull two or three quotes before the policy renews.

An accident is only one part of a driving record, and insurers don’t treat every incident the same way. More serious violations, especially a DUI, can affect eligibility and pricing differently. The next comparison looks at affordable companies for drivers who have a DUI.

Cheapest Car Insurance After a DUI

A DUI on your record usually means higher insurance rates. However, some providers may still offer cheaper coverage options.

Regional insurers often compete on price and may offer more affordable auto insurance rates for drivers with a DUI.

Auto Insurance Monthly Rates Before & After a DUI

Regional companies often have lower overhead costs than bigger insurers, which may help reduce premiums. This can make them a good option for drivers looking to save.

Because rates can vary by company and driver profile, it’s helpful to review several options. Compare multiple companies to find the most affordable auto insurance quotes.

Providers With the Cheapest Insurance for Teens

For most teen drivers, staying on a parent’s auto insurance policy is usually the most affordable choice. Coverage is often cheapest for young drivers who join an existing policy rather than buying one on their own.

Auto-Owners offers some of the cheapest teen auto insurance for young drivers who need their own policy. Rates for an 18-year-old start at about $115 monthly, although age, location, vehicle, and driving history can change the final cost.

Auto Insurance Monthly Rates for Teens by Age

Teenage males are more likely to crash and file claims than experienced drivers. Insurers account for this added risk when setting premiums, which can result in higher rates even for teens without previous violations.

New drivers are still learning how to react to changing traffic and road conditions. Speeding or not wearing a seatbelt can increase both accident risk and insurance costs. Driver training and good-student discounts can make adding a teenager to a family policy less expensive.

In states where insurers can use gender to set rates, teen boys usually get higher quotes than teen girls. Past claims show that boys are involved in more serious accidents. However, each insurer assesses this risk differently, so the price difference varies.

Teens can lower their rates by following traffic laws and avoiding accidents. Driver safety courses may provide additional savings, while some insurers offer programs that reward responsible driving.

Rates may drop as teens gain experience without tickets or accidents. Review the policy after birthdays, vehicle changes, or a move to college because new discounts may apply.

Cheapest Car Insurance Companies for Senior Drivers

Senior drivers can take safety courses for discounts when available. A clean record and quote comparison can also help lower costs.

However, comparing rates can help seniors find savings on auto insurance for seniors. Auto-Owners is the cheapest auto insurance company for senior drivers.

Auto Insurance Monthly Rates for Seniors by Age

Senior drivers can often lower auto insurance costs by taking defensive driving courses, maintaining a clean record, and asking about discounts.

Senior male drivers may pay slightly more than female seniors, unless gender-based rates are banned. In those states, similar drivers pay the same rates. See Our Article: Cheap Auto Insurance for Drivers Over 80

Other ways to save include raising your deductible, reporting lower annual mileage, and dropping coverage you no longer need. Since eligibility varies by insurer and state, ask which discounts can be combined before making changes to your policy.

Review your discounts whenever your policy renews, since driving habits and household needs can change. Retired drivers may qualify for low-mileage savings, while updated vehicle safety features could provide additional discounts.

When comparing insurers, use the same coverage limits and deductible for every quote. This provides a fair price comparison and helps you avoid choosing a cheaper policy that offers less protection.

To compare more options, enter your ZIP code to find the best cheap auto insurance for your driver profile.

Finding the Cheapest Insurance Rates for You

What you pay for auto insurance comes down to more than the company you choose. Your location, driving record, vehicle, and coverage all play a part, so checking a few quotes may uncover a better price.

We organized the rate data into common driver categories to make the comparisons easier to follow. This helps you quickly see where certain companies may stand out based on your situation.

We break down each category and show which companies offer the cheapest rates for different drivers, while explaining how coverage type, driver profile, and pricing trends can affect your rate.

These comparisons can help you focus on insurers that may fit your situation rather than relying on a single average. Reviewing each category also makes it easier to spot where your biggest savings may come from.

Learn More: Factors That Affect Auto Insurance Rates

Common Factors That Can Raise Your Car Insurance Prices

Auto insurance companies do not weigh every rating factor equally. Your profile, vehicle, and policy choices can all influence how much you pay, even when comparing quotes from the same insurer.

Your location and coverage level can also change your final price. Understanding these details can help you see which rate factors matter most and where you may be able to save.

• Age: Young drivers are more likely to be involved in accidents, and older drivers face age-related issues such as slower reaction times.
• Claims History: Multiple claims can raise rates because insurers see you as high-risk. Find Out More: Which auto insurance company is best for claims?
• Credit Score: Lower credit scores may raise rates, but some states don’t allow insurers to use credit as a pricing factor.

Where permitted, insurers use credit-based insurance scores to estimate claim risk and set premiums. Stronger scores often lead to lower prices, but company formulas vary, so drivers with similar credit may still receive different quotes.

The table compares monthly premiums across four credit tiers for a 45-year-old male driver with a clean record. Using the same sample profile highlights how much prices can shift between excellent, good, fair, and poor credit.

Auto Insurance Monthly Rates by Credit Score

These differences show why maintaining good credit may help lower premiums where credit-based insurance scoring is permitted.

However, your driving record, location, vehicle, and coverage choices also affect the final premium rate.

• Driving Record: Even one ticket or at-fault accident can push your rate up for years. A DUI usually has an even larger impact.
• Gender: Some states allow gender-based pricing, while others have banned it. Where it’s used, insurers look at the claims and crash history of different driver groups.

Don’t assume your current price is the best available. Check what other insurers charge, then review your policy for unused extras or discounts your insurer may have missed.

Keeping tickets and claims off your record can save you money well beyond the next renewal. If you’re consistently careful behind the wheel, usage-based auto insurance may be worth a look.

Usage-based auto insurance looks at what happens behind the wheel, including when you drive and how sharply you brake. A clean stretch without tickets or accidents may help bring your rate down even further.

A low-mileage driver may do well in one program but save little with another. It comes down to what the insurer tracks, whether that’s Lower mileage, braking, speed, or travel time. Check those details before deciding whether enrollment makes sense.

A clean driving record can help show insurers that you are less likely to file claims, which may lead to lower premiums over time.

Location and coverage choices can affect your rate, especially if claim costs are higher where you live.

Read More: Geico Auto Insurance Review

How to Save Even More on Insurance Coverage

Auto insurance discounts are one of the easiest ways to lower your premium. These may include savings for safe driving, bundling, vehicle safety features, or low annual mileage.

You may qualify for more than one discount, depending on your insurer and policy. Checking these options regularly can help you find more ways to save.

Top Auto Insurance Discounts by Category

Generally, you can discover eligible discounts at an insurance company when getting a quote. However, other discounts, such as a safe-driving or UBI program discount, may not be reflected in your quoted price.

Reviewing your available discounts may help you reduce costs without changing your coverage, but shopping around and comparing quotes online can also help you find additional savings.

Insurers may offer savings for safety equipment, low annual mileage, or responsible driving habits. Policy choices such as bundling or selecting a higher deductible can also reduce premiums. Review the available auto insurance discounts before changing your coverage.

The same vehicle can receive noticeably different rates from one insurer to another. Each company weighs claims history, repair data, and driver information differently. Comparing personalized quotes shows which provider offers the strongest price for your specific situation.

When comparing auto insurance quotes, use identical liability limits, deductibles, and optional protection. A quote may appear cheaper simply because it includes less coverage. Keeping these details consistent provides a fairer view of which insurers offer the lowest prices.

Before purchasing a vehicle, request insurance estimates for several models on your shortlist. A lower purchase price does not always guarantee a lower premium. Checking this expense early can help you choose a car that suits your overall budget.

10 Cheapest Auto Insurance Companies

If you need affordable coverage, these are the top 10 cheapest auto insurance companies in the U.S. Some providers may not be available in every state.

Compare and evaluate insurance quotes online from multiple providers to find the cheapest company near you.

#1 – Auto-Owners: Top Pick Overall

Pros

• Competitive Pricing: Auto-Owners Insurance offers some of the most competitive pricing on add-ons such as roadside assistance and custom parts.
• High Customer Satisfaction: Auto-Owners is known for its high level of customer satisfaction, particularly in claims handling and customer service.
• Wide Range of Discounts Available: Offers safe driver, bundling, and paperless billing discounts. Read more in our guide: Auto-Owners Insurance Review.

Cons

• Agent-Based Quotes: Auto-Owners generally handles quotes and policy purchases through independent agents, which may not suit drivers who prefer to buy entirely online.
• Limited Availability: Auto-Owners does not sell auto insurance nationwide, so coverage may not be available in your area.

#2 – Erie: Cheapest for Add-Ons

Pros

• Strong Financial Standing: Erie has been in business for over 90 years and boasts an A+ financial rating from A.M. Best.
• Above-Average Customer Service: Many customers have reported quick, easy claims processes and helpful representatives.
• Multiple Discounts Available: Erie offers a variety of discounts, including multi-policy, safe-driving, and teen-driver discounts.

Cons

• Limited Availability: Erie is only available in 12 states, mostly in the Northeast and Midwest.
• Higher Rates for High-Risk Drivers: Erie tends to have higher rates for drivers with a history of accidents or violations.

#3 – Nationwide: Cheapest for Multiple Policies

Pros

• Multi-Policy Discounts: Offers savings when customers bundle auto insurance with home, life, or other policies.
• Good Customer Service: Nationwide has a strong reputation for excellent customer service, with high satisfaction ratings in customer surveys.
• Plenty of Coverage Options: Customers can tailor their auto insurance policy to their needs by choosing from a range of coverage options.

Cons

• Average Claims Process: Nationwide has received complaints that its claims process takes longer than expected, which can be frustrating for customers.
• Pricey: While Nationwide offers many discounts, its base prices may still be higher than those of other insurance companies.

#4 – The Hartford: Cheapest for Tailored Policies

Pros

• Tailored Policies: The Hartford excels in providing tailored insurance policies that cater to individual customer needs.
• Plenty of Discounts: Offers a wide range of discounts to help customers save on auto insurance.
• Easy Claims Process: The Hartford makes it fairly simple to file a claim and follow its progress through to resolution.

Cons

• Limited Availability: Coverage options vary by state, so some drivers may not have access to every policy or feature The Hartford offers.
• Expensive for Young Drivers: The Hartford’s auto insurance may be pricier for young drivers due to their age and driving experience.

#5 – AAA: Cheapest Roadside Assistance

Pros

• Roadside Assistance: Our AAA auto insurance review covers the pros and cons of its extensive roadside assistance coverage.
• Strong Reputation: AAA has a long-standing reputation for its reliability and trustworthiness in the insurance industry.
• Discounts and Rewards: AAA offers a wide range of discounts and rewards, including good-driver and new young-driver discounts.

Cons

• Membership Requirement: AAA auto insurance typically requires individuals to become AAA members.
• Regional Restrictions: If you move to a different state or region not served by your original AAA club, you may need to change AAA insurance providers.

#6 – American Family: Best for Claims Service

Pros

• • Excellent Claims Service: American Family has a reputation for providing efficient and responsive claims service, making the process easier for customers.
  • Customizable Policies: American Family lets drivers choose the coverage and add-ons that make sense for their situation.
  • Affordable Rates: At $69 per month, American Family remains one of the lower-priced options reviewed.

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Cons

• Limited Availability: American Family is only available in 19 states, which may make it difficult for some customers to access its services.
• Mixed Customer Reviews: While American Family has a strong reputation for claims service, some customers have reported issues with their policies and billing.

#7 – Travelers: Cheapest Comprehensive Coverage

Pros

• Claim Forgiveness Program: Your rate won’t increase after your first accident if you qualify for this program. Learn More: Travelers Auto Insurance Review
• Comprehensive Coverage Options: Customers can benefit from standard coverage and add-ons like gap, rental, and rideshare insurance.
• Discount Opportunities: Travelers offers safe driver discounts, multi-policy bundling, hybrid/electric vehicle discounts, and more.

Cons

• Sparse Local Agents: Travelers’ local agent network may be limited in some areas, making in-person support harder to access.
• Mixed Customer Reviews: While Travelers has many satisfied customers, there are also some negative reviews regarding claims handling and customer service.

#8 – Farmers: Cheapest for Safe Drivers

Pros

• Safe-Driving Discounts: Our Farmers review found that safe drivers can save through Signal, its usage-based program.
• Multiple Coverage Options: Customers can choose from several coverage options to customize their policy.
• Strong Financial Standing: Farmers has strong industry ratings, showing financial stability and providing customers with added peace of mind.

Cons

• Costlier for High-Risk Drivers: Customers with a history of accidents or traffic violations may pay higher rates with Farmers than with other insurers.
• Low Customer Satisfaction: Farmers received below-average ratings for overall experience and claims handling.

#9 – Liberty Mutual: Cheapest Customized Coverage

Pros

• Coverage Options: Customers can customize their coverage and choose from add-ons such as accident forgiveness and new-auto replacement.
• Nationwide Availability: Liberty Mutual is available in all 50 states. Read More: Liberty Mutual Auto Insurance Review
• Excellent Ratings: Liberty Mutual has received an A rating from A.M. Best for financial stability and an A+ rating from the BBB for customer satisfaction.

Cons

• Higher-Than-Average Complaints: National Association of Insurance Commissioners (NAIC) data shows Liberty Mutual has a higher complaint index in some states.
• Low Claims Satisfaction Ratings: Liberty Mutual received below-average overall and settlement satisfaction ratings.

#10 – The General: Cheapest for High-Risk Coverage

Pros

• High-Risk Coverage: The General auto insurance offers coverage specifically for high-risk drivers.
• Quick and Easy Quotes: Customers can get a quote within minutes on The General’s website or by calling their toll-free number.
• Flexible Payment Plans: The General offers flexible payment plans. Find out how to benefit from these plans: The General Auto Insurance Review.

Cons

• Slow Claims Process: According to customer reviews, The General’s claims process can be slow and frustrating.
• Poor Communication:  Some customers have reported poor communication from The General regarding their policies and claims.

How to Compare and Buy Cheap Auto Insurance

The cheapest type of auto insurance is the state minimum liability coverage. It can help you save hundreds by keeping only the required coverage.

However, a minimum liability auto insurance policy may not be enough for every driver. You should consider full coverage if the following applies:

• Your Auto Has a Loan or Lease: Most loan and lease agreements require you to carry comprehensive and collision insurance on your vehicle until the loan or lease is paid off.
• Your Auto Still Has Value: If your auto is expensive and fairly new, you could face a huge loss after an accident.

You generally shouldn’t drop optional coverages if they help protect your assets after a major loss. These coverages can be useful if your auto is totaled or badly damaged.

If your auto is paid off and worth little, minimum coverage may be a practical way to save, especially when repairs could cost more than the vehicle is worth. Once you know which coverage fits, you can compare quotes and purchase a policy online.

You can buy auto insurance online without much trouble, but it helps to have your paperwork within reach. Grab your current policy and pull together the vehicle and driving details for everyone in your household. You’ll spend less time digging through files while filling out quotes.

Don’t stop at the monthly price. Click into the quote and see what the company changed to get there. Sometimes the limits are lower; sometimes the deductible is higher. If neither one moved, the lower bill may be worth taking.

Before you buy, make sure you know when the policy begins and what you’ll pay now and later. Take a minute to look at the discounts, cancellation rules, and customer reviews, too. A bargain isn’t much of a bargain if the coverage falls short or no one helps when you file a claim.

If extra coverage payments equal at least 10% of your auto’s total value, consider dropping them. Within a year, those costs could add up to your auto’s full value.

Our free online comparison tool lets you compare cheap auto insurance quotes instantly. Just enter your ZIP code to get started.