Cheapest Auto Insurance in 2023
Geico offers the cheapest car insurance, with a cost of $30 per month. But insurance premiums can change based on where you live, your driving history, and more. Find out which company has the cheapest insurance coverage for you.
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Scott W. Johnson
Licensed Insurance Agent
Scott W Johnson is an independent insurance agent in California. Principal Broker and founder of Marindependent Insurance Services, Scott brings over 25 years of experience to his clients. His Five President’s Council awards prove he uses all he learned at Avocet, Sprint Nextel, and Farmers Insurance to the benefit of his clients. Scott quickly grasped the unique insurance requirements of his...
Licensed Insurance Agent
UPDATED: Dec 4, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Dec 4, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Geico, State Farm, and Travelers offer the cheapest auto insurance on average.
- Most states require that all drivers carry a minimum amount of auto insurance coverage, typically a combination of bodily injury and property damage liability coverage. Meeting this legal minimum is often the cheapest coverage you can get.
- Many insurance providers offer discounts to drivers for being a safe driver, insuring multiple vehicles, or even being a good student. Make sure ask about these discounts when getting a quote in order to save even more.
Finding The Cheapest Auto Insurance Rates for You
When it comes to saving money on car insurance, every driver is different in terms of their driving profile. So a company cheapest for your friend may not be your cheapest auto insurance company. Car insurance rates depend on various factors — location, driving history, credit score, and more — so some insurance companies may be cheaper for certain drivers than others.
We’ve grouped auto insurance companies by which is cheapest for various categories, so you can easily find which company is cheapest for your own needs and profile.
- Cheapest Auto Insurance Overall: Geico – $30/month
- Cheapest Auto Insurance for Drivers with a Traffic Ticket: State Farm – $37/month
- Cheapest Auto Insurance After a Car Accident: State Farm – $40/month
- Cheapest Auto Insurance After a DUI: State Farm – $45/month
- Cheapest Auto Insurance for Teen Drivers: Geico – $107/month
- Cheapest Auto Insurance for Senior Drivers: Geico – $30/month
Below, we’ll detail each category so you can learn more about why each company is the cheapest for certain drivers.
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Cheapest Auto Insurance Overall
The cheapest car insurance company overall is Geico, which costs $30 per month for a liability-only policy.
Cheapest Auto Insurance Companies for Minimum Coverage
| Company | Monthly Rate | Annual Rate |
|---|---|---|
| USAA* | $22 | $266 |
| Geico | $30 | $362 |
| State Farm | $33 | $398 |
| Travelers | $37 | $450 |
| Progressive | $39 | $467 |
| National Average | $43 | $512 |
| Nationwide | $44 | $527 |
| Farmers | $53 | $637 |
| Allstate | $61 | $733 |
| Liberty Mutual | $68 | $810 |
*USAA auto insurance is only available for active duty military, veterans, and their families.
USAA does offer cheaper coverage, but this is not available to most buyers. USAA only offers auto insurance coverage to active duty military, veterans, and their families.
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 car, lease or finance your car, or just want more peace of mind then you may want to get a more comprehensive insurance policy. Of course, the added protection comes at a higher cost.
Read more: Comprehensive Auto Insurance
Cheapest Auto Insurance Companies for Drivers with a Traffic Ticket
State Farm is the cheapest national insurance provider for drivers with traffic tickets, offering rates as low as $37 a month. Depending on where you live, there are even cheaper insurance options offered by regional insurance providers like Erie, Clearcover, and Safeco.
| Company | Average Monthly Rate |
|---|---|
| Erie | $27 |
| Clearcover | $28 |
| Safeco | $34 |
| Mercury | $36 |
| State Farm | $37 |
| Geico | $39 |
| Auto Owners | $40 |
| AAA | $40 |
| Safe Auto | $42 |
| National Average | $56 |
Traffic tickets not only carry a small fine, but they can have a significant impact on car insurance rates. When you receive a traffic ticket, it typically means you’ve violated a traffic law or regulation, which can be seen by insurance companies as an increased risk. On average, the cost of auto insurance can increase anywhere from $125 to $330 more per year after getting a traffic ticket.
To learn more about how tickets can impact your insurance and how to lower your premiums after getting one, see our article How does a speeding ticket affect auto insurance rates?
Cheapest Auto Insurance Companies After a Car Accident
Your car insurance rates will increase if you get in a car accident and you are found to be at fault. Your car insurance rates can increase anywhere from $250 to $640 annually depending on the type of car insurance policy that you have. Maintaining a good, safe driving record is one of the best things you can do to keep your auto insurance premiums low.
State Farm is the cheapest insurance company for drivers with an accident on their record, offering coverage as low as $40 per month. Take a look at the other insurance companies with reasonable rates below.
| Company | Average Monthly Rate |
|---|---|
| USAA | $29 |
| State Farm | $40 |
| Auto Owners | $48 |
| Geico | $50 |
| AAA | $50 |
| Travelers | $53 |
| Nationwide | $61 |
| National Average | $66 |
| Progressive | $69 |
| Allstate | $87 |
Accidents won’t stay on your driving record forever. If you are able to maintain a safe driving record, then the accident will eventually fall off of your record and you will be able to get cheaper insurance again.
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 a record automatically means higher insurance rates. However, there are still options to find cheaper auto insurance coverage. Usually, regional insurance companies compete with each other to offer affordable auto insurance rates for drivers with a DUI.
Generally, these regional companies have lower overhead costs than big insurance companies and can help their customers save. Compare multiple quotes from companies to find the most affordable auto insurance.
| Company | Monthly Average Rate |
|---|---|
| USAA | $41 |
| State Farm | $45 |
| Auto Owners | $51 |
| Progressive | $52 |
| AAA | $57 |
| Hartford | $65 |
| Farmers | $74 |
| Travelers | $78 |
| National Average | $81 |
| Allstate | $106 |
Cheapest Auto Insurance Companies for Teens
For most teen drivers, the cheapest option for insurance is for the teen to stay on their parents’ auto insurance policy. Geico offers the cheapest auto insurance for teens purchasing their own policy, offering rates as low as $107 per month.
| Company | Average Monthly Rate |
|---|---|
| USAA | $88 |
| Geico | $107 |
| State Farm | $125 |
| Auto Owners | $156 |
| AAA | $162 |
| Nationwide | $167 |
| American Family | $178 |
| National Average | $216 |
| Farmers | $271 |
| Progressive | $281 |
Statistically, teenage males are more likely to get into crashes and file claims. They’re also more likely to participate in risk-taking behaviors like speeding or not wearing a seat belt. In states where insurers can consider gender when setting rates, teenage males have higher rates than teenage female drivers. However, teenage males can reduce their rates by keeping a clean driving record and participating in safe driving programs.
Read more: Auto Insurance for Teens
Cheap Auto Insurance Companies for Seniors
Senior drivers may see their rates slowly increase as they age since insurance companies view them as higher risk due to age-related factors like slowing reflexes and declining eyesight.
However, comparing rates can help find savings on auto insurance for seniors. The cheapest car insurance company for senior drivers is Geico.
| Companies | Average Monthly Rate |
|---|---|
| USAA | $22 |
| Geico | $30 |
| AAA | $32 |
| Auto Owners | $33 |
| State Farm | $33 |
| Travelers | $37 |
| Progressive | $38 |
| American Family | $43 |
| National Average | $45 |
| Farmers | $52 |
Senior drivers can also participate in driving safety courses to earn a safe driving discount if it’s available from their insurance provider. Maintaining a good driving record and shopping around will also go a long way to finding car insurance that fits a senior driver’s needs and budget.
Senior male drivers pay slightly more than female senior drivers for car insurance. However, in states where basing rates on gender is banned, rates will be the same for male and female senior drivers with the same driving record and demographic information.
Read more: Best Auto Insurance for Seniors
Cheapest Auto Insurance Companies by State
Auto insurance rates vary widely between states. Look at the table below to see which companies offer the cheapest auto insurance coverage in each state.
| State | Cheapest Insurance Company | Average Monthly Rate |
|---|---|---|
| Alaska | State Farm | $22 |
| Alabama | Travelers | $28 |
| Arkansas | State Farm | $28 |
| Arizona | Geico | $25 |
| California | Geico | $33 |
| Colorado | Liberty Mutual | $28 |
| Connecticut | Geico | $32 |
| District of Columbia | Geico | $29 |
| Delaware | Travelers | $43 |
| Florida | Geico | $30 |
| Georgia | Geico | $24 |
| Hawaii | Geico | $22 |
| Iowa | State Farm | $16 |
| Idaho | State Farm | $15 |
| Illinois | Geico | $18 |
| Indiana | Geico | $22 |
| Kansas | Geico | $24 |
| Kentucky | Geico | $29 |
| Louisiana | State Farm | $33 |
| Massachusetts | Geico | $28 |
| Maryland | Travelers | $55 |
| Maine | Geico | $15 |
| Michigan | Geico | $47 |
| Minnesota | State Farm | $27 |
| Missouri | Nationwide | $23 |
| Mississippi | Geico | $27 |
| Montana | Liberty Mutual | $16 |
| North Carolina | Progressive | $13 |
| North Dakota | Geico | $17 |
| Nebraska | State Farm | $18 |
| New Hampshire | Geico | $21 |
| New Jersey | Geico | $47 |
| New Mexico | State Farm | $24 |
| Nevada | Progressive | $35 |
| New York | Geico | $40 |
| Ohio | Geico | $23 |
| Oklahoma | State Farm | $29 |
| Oregon | State Farm | $38 |
| Pennsylvania | Geico | $23 |
| Rhode Island | State Farm | $32 |
| South Carolina | Geico | $33 |
| South Dakota | Nationwide | $12 |
| Tennessee | State Farm | $22 |
| Texas | State Farm | $33 |
| Utah | Geico | $33 |
| Virginia | Progressive | $26 |
| Vermont | Geico | $12 |
| Washington | Progressive | $26 |
| Wisconsin | State Farm | $21 |
| West Virginia | State Farm | $29 |
| Wyoming | Liberty Mutual | $17 |
Some of the cheapest states for auto insurance are Tennessee, South Dakota, Vermont, North Carolina, and Maine.
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Factors Affecting Your Auto Insurance Rates
While rates differ by company, all insurers will look at the same basic factors to calculate your auto insurance rates. The main factors affecting your auto insurance rates are as follows:
- Age. Your age matters to car insurance companies. Young drivers are more likely to get into accidents, and older drivers face age-related issues like decreased reaction time.
- Claims history. If you’ve filed multiple claims, you’ll have higher insurance rates.
- Credit score. Drivers with lower credit scores are more likely to file claims or miss payments. However, California, Hawaii, Massachusetts, and Michigan insurance companies can’t use credit scores as a factor.
- Driving history. Traffic tickets, accidents, DUIs, and other similar charges will raise rates.
- Gender. Men tend to pay higher rates than females, as statistics show men get into more accidents. However, insurers can’t consider gender in California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania.
- Vehicle model and make. Insurance companies consider safety ratings, crash statistics, and the vehicle’s overall expense when setting rates.
- Location. Auto insurance rates vary widely depending on the state you live in. Even the ZIP code where you live impacts your rates based on weather, crime rates, living costs, and similar factors. The exception is California and Michigan, where using ZIP codes to calculate rates is prohibited.
While you don’t have much control over many of the factors affecting your rates, you can work to reduce your rates by keeping a clean driving record and shopping around.
Another factor affecting your rates is your auto insurance company. Rates vary drastically by company, so shopping around and comparing rates can significantly reduce your costs. You should also know your coverage needs, as you may not need all the insurance extras or low deductibles.
Available discounts also affect your insurance rates. You may be able to reduce your rates by bundling auto insurance with other coverages and discounts. If you find that your rates are increasing or there’s a significant lifestyle change, shop around for new quotes to ensure you’re getting the best deal.
Read more: Factors That Affect Auto Insurance Rates
How to Find the Right Coverage For You
The cheapest type of car insurance is the state minimum liability coverage. Generally, you can save hundreds of dollars by keeping a minimum liability auto insurance policy.
However, you should get a full coverage policy if the following is true:
- Your car is still worth money. If your car is expensive and fairly new, you could face a huge loss after an accident.
- You have a lease or loan on your car. Most lease and loan agreements require you to carry comprehensive and collision insurance on your vehicle until you pay off your loan or lease.
Generally, you shouldn’t drop the optional coverages that protect your asset if you’d lose a lot of money after your car gets totaled or damaged. On the other hand, if your car gets paid off and is old enough not to be worth much after a collision, it can be beneficial to carry the bare minimum on your car to save money.
If the payments for extra coverages are worth at least 10% of your car’s total value, you can consider dropping them because, in a year or so, you’ll have paid your car’s entire value in add-on coverages.
Read more: How much car insurance do I need?
How to Save Even More with Auto Insurance Discounts
One of the best ways to save on car insurance — in addition to shopping around and getting quotes — is through discounts. The following discounts are generally available with most insurance providers:
Common Auto Insurance Discounts
| Vehicle Discounts | Driver/Customer Discounts | Personal Discounts |
|---|---|---|
| Active Disabling Device | Claim Free | Emergency Deployment |
| Adaptive Cruise Control | Continuous Coverage | Family Legacy |
| Adaptive Headlights | Defensive Driver | Family Plan |
| Anti-Lock Brakes | Driver's Education | Federal Employee |
| Audible Alarm | Driving Device/App | Further Education |
| Automatic Braking | Early Signing | Good Student |
| Blind Spot Warning | Full Payment | Homeowner |
| Daytime Running Lights | Good Credit | Life Insurance |
| Economy Vehicle | Loyalty | Married |
| Electronic Stability Control | Multiple Policies | Membership/Group |
| Farm/Ranch Vehicle | Multiple Vehicles | Military |
| Forward Collision Warning | New Customer/New Plan | New Address |
| Garaging/Storing | Occasional Operator | New Graduate |
| Green/Hybrid Vehicle | Online Shopper | Non-Smoker/Non-Drinker |
| Lane Departure Warning | On-Time Payments | Occupation |
| Newer Vehicle | Paperless/Auto Billing | Recent Retirees |
| Passive Restraint | Paperless Documents | Stable Residence |
| Utility Vehicle | Roadside Assistance | Student Away |
| Vehicle Recovery | Safe Driver | Student or Alumni |
| VIN Etching | Seat Belt Use | Volunteer |
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 appear 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 Auto Insurance Discounts.
Read more: How to Lower Your Auto Insurance Premiums
Frequently Asked Questions
How can I find cheap auto insurance?
The best way to find cheap insurance is to get quotes from multiple companies in your area. Rates depend on various factors such as location, driving history, credit score, and more, so some insurance companies may be cheaper for certain drivers than others.
Should I get the cheapest car insurance?
When it comes to auto insurance, opting for the cheapest, liability-only coverage may seem attractive from a cost perspective. However, it’s essential to consider your specific circumstances and insurance needs.
While choosing the cheapest, liability-only auto insurance might save you money upfront, it comes with potential risks. Carefully assess your financial situation, vehicle value, and driving habits to determine the right level of coverage for your needs. Striking the right balance between cost and protection is key when selecting your auto insurance policy. To learn more, read our article, How much car insurance do I need?
Which company is the cheapest for auto insurance overall?
The cheapest car insurance company, on average, is Geico. However, there are many different factors that determine the cost of car insurance. While Geico may be the cheapest option for most drivers, we suggest comparing quotes from multiple companies to ensure you are getting the best deal possible.
Do auto insurance rates vary by state?
Yes, auto insurance rates can vary widely between states. Factors such as state regulations, traffic patterns, and local risks influence insurance rates. It’s important to consider the specific rates and insurance companies available in your state when comparing prices.
What factors affect auto insurance rates?
Auto insurance rates are influenced by factors such as driving record, location, age, type of vehicle, credit score, and coverage needs. While you may not have control over all these factors, maintaining a clean driving record and shopping around for quotes can help reduce your rates.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Scott W. Johnson
Licensed Insurance Agent
Scott W Johnson is an independent insurance agent in California. Principal Broker and founder of Marindependent Insurance Services, Scott brings over 25 years of experience to his clients. His Five President’s Council awards prove he uses all he learned at Avocet, Sprint Nextel, and Farmers Insurance to the benefit of his clients. Scott quickly grasped the unique insurance requirements of his...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.