Cheapest Auto Insurance Companies in 2026

Erie, Auto-Owners, and Travelers are the cheapest auto insurance companies, with Erie as the top pick for its accident forgiveness and policy perks.

Auto-Owners stands out for its various insurance alternatives, which cater to a broader range of driver demands, whereas Travelers shines in terms of coverage options.

Each insurer provides various perks, but the best option is determined by factors such as driving history and geography. Learn more about why auto insurance rates vary so much.

10 Best Companies: Cheapest Auto Insurance

That said, while prices may vary depending on the individual, it’s good to know which companies have a reputation 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.

Finding The Cheapest Auto Insurance Rates for You

Auto insurance rates can vary widely because insurers review several factors, including your location, driving record, credit score, age, vehicle type, and the coverage level you choose.

Learning how to get the cheapest auto insurance quotes starts with comparing several providers, since each insurer weighs these factors differently when calculating premiums.

We’ve grouped auto insurance companies by the cheapest options for different driver categories, such as age, driving history, location, and coverage type.

Below, we’ll break down each category and show which companies offer the cheapest rates for different drivers, while explaining key factors that affect auto insurance rates, such as driver profile, coverage type, and pricing trends.

Factors Affecting Your Auto Insurance Rates

Insurers use several common factors to calculate auto insurance premiums, including your driving record, location, and coverage choices. These details help companies estimate risk and set your rate.

Understanding these factors can help you see why prices vary from one driver to another. The main factors affecting your auto insurance rates are listed below:

• Age: Young drivers are more likely to get into accidents, and older drivers face age-related issues like decreased reaction time.
• Gender: Men often pay higher rates due to accident statistics, but some states ban insurers from using gender to set rates.
• Claims History: Multiple claims can raise rates because insurers may see you as a higher risk. Ask, “which auto insurance company is best for claims?” when comparing providers.
• Credit Score: Lower credit scores may raise rates, but some states don’t allow insurers to use credit as a pricing factor.
• Driving Record: Traffic tickets, accidents, DUIs, and other violations can increase your auto insurance rates.

You can lower costs by keeping a clean driving record, comparing quotes, and choosing only the coverage you need. Discounts may also help reduce your auto insurance rates.

Your driving history will impact your insurance costs the most. The good news is that safe drivers can try usage-based auto insurance to get a lower rate. The driving habits below will ultimately impact how much you pay for auto insurance.

Factors That Affect Usage-Based Auto Insurance Discounts

Usage-based auto insurance rewards safer driving habits, which can help lower your premium over time. Keep a safe driving record — or work toward one by avoiding accidents, tickets, and risky driving periods.

Smooth braking, lower mileage, and safe driving habits may help you save. You can also watch for easy-to-get discounts, since insurers measure driving behavior differently and discounts vary by provider.

Read More: Geico Auto Insurance Review

A clean driving record can help show insurers that you are less likely to file claims, which may lead to lower premiums over time. Avoiding accidents, speeding tickets, and other violations can make a noticeable difference when comparing rates.

Location and coverage choices can affect your rate, especially if claim costs are higher where you live. When reviewing your policy, compare deductible options and ask, “is it better to have a $500 deductible or $1000?”

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.

Erie leads with $32 for minimum and $83 for full coverage, followed by Auto-Owners at $47 and $124.

Auto Insurance Monthly Rates by Coverage Level

Travelers has the lowest rates in this comparison, with minimum coverage averaging $53 per month and full coverage averaging $141. This makes it a strong option for drivers seeking more affordable policy options.

Liberty Mutual has the highest rates, charging about $96 for minimum coverage and $248 for full coverage. Drivers may want to compare both costs and benefits before choosing between providers.

Liability-only auto insurance policies, which typically include a combination of bodily injury liability coverage and property damage liability coverage, are often the bare minimum coverage required by the state and are the cheapest options.

However, if you have a high-value auto, lease or finance your auto, or want more peace of mind, consider a more comprehensive policy. Ask about savings opportunities after a life change, since moving, retiring, or driving less may affect your rates.

Read More: Comprehensive Auto Insurance

Cheapest Auto Insurance Companies for Drivers with a Traffic Ticket

Drivers with a traffic ticket often pay higher insurance rates, but some companies still offer affordable options. Erie has the lowest rates, averaging $32 for minimum coverage and $100 for full coverage.

Auto-Owners and Travelers also stay competitive, with minimum coverage rates under $55. In comparison, higher-risk insurers like The General charge nearly four times more for full coverage.

Auto Insurance Monthly Rates After a Ticket

Traffic tickets often come with a small fine, but they can also affect your auto insurance rates. Insurers may view a violation as a sign of higher risk.

After a traffic ticket, auto insurance costs can increase by about $125 to $330 per year on average. Since rates vary by insurer and violation, comparing quotes can help you find coverage that’s cheapest for violations.

To see how tickets can impact your insurance, review how violations may affect your rates. You can also find tips for lowering premiums after getting one.

For more details about rate changes and possible savings, see our article “How does a speeding ticket affect auto insurance rates?”

Cheapest Auto Insurance Companies After a Car Accident

Your auto insurance rates will increase if you get in an auto accident and you are found to be at fault. Your auto insurance rates can increase anywhere from $250 to $640 annually, depending on the type of auto insurance policy that you have.

A clean driving record can help lower premiums, but you may also need to adjust your coverage to fit your budget. Erie is the cheapest for drivers with an accident record at $45 per month. Compare auto insurance quotes from other companies below.

Auto Insurance Monthly Rates After an Accident

Accidents won’t stay on your driving record forever. With safe driving habits, they may eventually fall off, helping you qualify for cheaper rates. For more details, read “How long does an accident stay on your record?”

The best auto insurance companies for high-risk drivers may offer discounts for completing an approved defensive driving program. You may also want to consider raising your deductible to lower your premium.

Cheapest Auto Insurance Companies 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 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.

Cheapest Auto Insurance Companies 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.

Erie offers the cheapest teen auto insurance, for those buying their own policy. Rates start as low as $136 per month, depending on the driver profile.

Statistically, teenage males are more likely to get into crashes and file insurance claims. This higher risk often leads insurers to charge higher premiums.

They are also more likely to take risks behind the wheel, such as speeding or skipping a seatbelt. Comparing quotes can help families find lower-cost coverage.

In states where insurers can use gender to set rates, teenage males often pay more than female teens. Insurers may view them as higher-risk based on claims data.

Teenage males can help lower their rates by keeping a clean driving record and avoiding violations. Participating in safe driving programs may also help them qualify for discounts.

Cheap Auto Insurance Companies for Seniors

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. Erie is the cheapest auto insurance company for senior drivers.

Senior drivers can often lower auto insurance costs by taking defensive driving courses, maintaining a clean record, and asking about discounts. Comparing quotes can also help them find cheaper rates for senior drivers from different companies.

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. If you’re 80 and looking for coverage, see our article on cheap auto insurance for drivers over 80.

Senior drivers can often lower auto insurance costs by taking defensive driving courses, maintaining a clean record, and asking about discounts. Comparing quotes from multiple companies may help them find more cheap rates for senior drivers.

Other ways to save include increasing your deductible, reporting lower annual mileage, and reviewing your policy regularly. You can also consider dropping coverage you no longer need. To compare more options, find the best cheap auto insurance for your driver profile.

Cheapest Auto Insurance Companies by State

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.

The table below helps answer the question of who has the cheapest auto insurance in the USA by showing which companies offer the lowest coverage in each state. Use it to compare low-cost auto insurance coverage options based on where you live.

Cheapest Liability-Only Auto Insurance Provider by State

Tennessee, South Dakota, Vermont, North Carolina, and Maine are among the cheapest states for auto insurance. Drivers in these states often benefit from lower average premiums.

These lower rates may be influenced by fewer claims, lighter traffic, and local insurance rules. 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.

Your ZIP code can affect rates based on weather, crime, cost of living, and other local factors. California and Michigan ban ZIP code use in rate calculations, so insurers must use other approved rating factors.

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 can help ensure you’re getting the best deal.

Learn More: Factors That Affect Auto Insurance Rates

How to Save Even More with Auto Insurance Discounts

Auto insurance discounts are one of the easiest ways to lower your premium. Many insurers offer savings based on your driving habits, policy choices, and vehicle features.

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

The following discounts are commonly available from most insurance providers. 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.

Most Common Auto Insurance Discounts

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

Taking advantage of these discounts after signing up with a company can help reduce your rates down the road. To learn more about how to qualify for these discounts and how much you could save, see our article on auto insurance discounts.

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 – Erie: Top Pick Overall

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: Offers a variety of discounts, including multi-policy, safe-driving, and teen-driver discounts. Check the full guide in our Erie auto insurance review.

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.

#2 – Auto-Owners: Cheapest for Add-Ons

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, especially in handling claims and customer service.
• Wide Range of Discounts Available: Offers safe driver, bundling, and paperless billing discounts. Learn more in our Auto-Owners auto insurance review.

Cons

• Limited Availability Online: Auto-Owners still relies on agents for quotes, policy issuance, and account management.
• Expensive for Certain Demographics: Might not always be the cheapest option for full coverage or for certain demographics.

#3 – Travelers: Cheapest Comprehensive Coverage

Pros

• 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.
• Accident Forgiveness Program: Your rate won’t increase after your first accident if you qualify for this program. Find out if you qualify in our Travelers auto insurance review.

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.

#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. Explore these discounts in our The Hartford auto insurance review.
• Easy Claims Process: The Hartford provides a streamlined claims process, making it convenient for customers to file and resolve claims.

Cons

• Limited Availability: The Hartford’s insurance coverage is only available in select states, which may limit access for some potential customers.
• Expensive for Young Drivers: The Hartford’s auto insurance may be pricier for young drivers due to their age and driving experience.

#5 – 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: Customers can personalize their auto insurance policies by selecting multiple coverage options that fit their needs.
• Affordable Rates: American Family offers competitive rates and discounts. Find the full overview in our American Family auto insurance review.

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.

#6 – Nationwide: Cheapest for Multiple Policies

Pros

• Multi-Policy Discounts: Offers savings when customers bundle auto insurance with home, life, or other policies. See what’s included in our Nationwide auto insurance review.
• 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.

#7 – AAA: Cheapest for Road Assistance

Pros

• Roadside Assistance: AAA offers extensive roadside assistance coverage, and you can get the full details in our AAA auto insurance review.
• 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.

#8 – Farmers: Cheapest for Safe Drivers

Pros

• Safe-Driving Discounts: Farmers offers a variety of discounts for safe drivers, including those who have completed driver’s education courses or are accident-free.
• Multiple Coverage Options: Customers can choose from several coverage options to customize their policy. See the full breakdown in our Farmers auto insurance review.
• 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 in customer satisfaction for overall experience and claims handling.

#9 – 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 from 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.

#10 – Liberty Mutual: Cheapest Customized Coverage Options

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 in our 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.

How to Find the Right Coverage For You

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 Still Has Value: If your auto is expensive and fairly new, you could face a huge loss after an accident.
• 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.

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 help you save. This can make sense when repair costs exceed its value.

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.