Cheapest Auto Insurance Companies: Lowest Rates for 2026

Auto-Owners, Erie, and Nationwide rank as the three cheapest auto insurance companies in our national comparison, with minimum coverage starting at $624 annually.

Erie stands out for flexible policy add-ons, while Nationwide offers savings for bundling policies. Compare their prices, customer service, and policy features to find the best value for your needs.

The lowest-priced insurer will vary by state. Local traffic, claims, and insurance laws can affect premiums. Learn more about why auto insurance rates vary so much.

10 Best Companies: Cheapest Auto Insurance

Minimum coverage rates range from $52 monthly with Auto-Owners to $94 with The General. Beyond price, compare each insurer’s financial strength, policy features, and customer service.

Compare multiple companies side by side using our free quote comparison tool to find the most affordable auto insurance quotes.

Finding the Cheapest Car Insurance in the U.S.

Auto insurance rates vary widely by state because location strongly influences pricing. Comparing auto insurance rates by state and compare quotes from different insurers.

Who has the cheapest auto insurance in the U.S.? Unlike the national ranking, these state results compare liability-only rates available in each location.

Cheapest Provider for Liability-Only Auto Insurance in Each State

Among the liability-only options compared, Vermont and Wyoming have the lowest rates at $26 monthly, followed by New Hampshire, Maine, and Iowa.

These figures represent the lowest liability-only provider rate in each state, not the statewide average premium. They identify the cheapest company in each location using the rates included in our comparison.

The map gives you a quick look at how rates compare across states. Your price may be different because your insurer, driving history, and coverage choices also affect what you pay.

Claim frequency, local traffic, and state insurance laws help explain why costs vary by location. To find the lowest rate in your area, enter your ZIP code and compare quotes from different insurers.

How Location Impacts Car Insurance Costs

Moving, even just a little, can affect your car insurance premium. In Michigan, insurers can’t use ZIP codes to set rates. In California, insurers consider your address along with your driving record, how much you drive each year, and your experience.

Tell your insurer about the move before your address changes. A new location can affect your price, eligibility, and coverage requirements, so ask when the updated policy will take effect.

Once your move is processed, review the updated premium and ask about discounts available at your new address. You may also save money by bundling auto insurance with another policy.

If your new premium goes up, get quotes from different insurers using the same coverage limits and deductibles. Also, review what each policy offers and how it handles claims. This way, you can find the best value for the protection you need.

Cheapest Auto Insurance Companies by Pricing Factor

Minimum vs. full coverage rates vary among affordable auto insurance companies. Comparing both coverage levels can help you find insurers that offer the lowest prices for your needs.

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

Erie and Nationwide remain competitive, with minimum coverage at $56 and $63 monthly. The General has the highest full coverage price at $216, nearly twice Auto-Owners’ $120.

Erie offers useful policy add-ons, but its policies are available in only a limited number of states. Your final rate will also depend on your driving profile.

What you choose to cover can significantly affect the price. Depending on the state, minimum coverage may include bodily injury, property damage liability, PIP, or UM/UIM coverage. It usually costs less than full coverage.

Minimum coverage might not protect a new, expensive, leased, or financed car. You could end up paying more out of pocket if you have an accident.

Read More: Comprehensive Auto Insurance

Besides your coverage choices, insurance companies also look at your driving record when deciding your rate. Each company weighs violations and claims differently, so prices can vary a lot.

Cheapest Insurance Companies After a Moving Violation

Drivers with a traffic ticket often pay higher insurance rates, but some companies remain affordable. Auto-Owners has the lowest minimum coverage rate after one moving violation at $63 monthly.

See More: How Auto Insurance Companies Check Driving Records

These monthly rates are for minimum coverage. They show what drivers may pay with a clean record and after receiving one traffic ticket.

Auto Insurance Monthly Rates Before & After a Ticket

If you get a traffic ticket, your car insurance rates may go up for a few years. Insurance companies usually see moving violations as a sign that you are a higher risk, so your costs can rise when it’s time to renew your policy.

A ticket can add $11 to $21 monthly, or $132 to $252 annually. Surcharges vary by insurer, so compare quotes in our guide: How long does a speeding ticket affect your auto insurance rates?

Ticket forgiveness, traffic school, quote comparison, and clean driving may help limit a violation’s financial impact. Available options and potential savings vary by insurer and state.

A violation may remain on your driving record for several years. Its effect on your premium depends on the offense, your insurer’s rating method, and insurance regulations in your state.

Different insurance companies treat violations in their own way. The same ticket could mean a small rate increase with one company but a much bigger jump with another. If you compare quotes online you can find out which companies offer better 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, so compare how companies price coverage for drivers with an accident history.

Cheapest Insurance Companies After a Car Crash

Your auto insurance rates can increase anywhere from $228 to $408 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.

These monthly minimum coverage rates show how each insurer’s pricing changes from a clean record to after an accident.

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.

If your premium goes up after a crash, call your insurer to check your mileage and available discounts. Before renewing, compare two or three quotes to see whether another company offers a better price.

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 Drunk Driving Offense

Getting a DUI usually raises your car insurance rates, but how much depends on the company. Drivers with a DUI often pay much more for minimum coverage than those with a clean record.

Auto-Owners has the lowest rate after a DUI among the insurers reviewed at $90 monthly. Other national and regional providers may also offer cheap auto insurance rates after a DUI, although availability varies by state.

Auto Insurance Monthly Rates Before & After a DUI

Auto-Owners also has the smallest monthly increase after a DUI at $38, while The General has the largest at $68. This $30 difference shows how insurers can price the same violation differently.

Your final rate will depend on the insurer and your driver profile. Use the existing free online comparison tool to review personalized quotes. Check the same coverage limits so each price reflects similar protection.

Cheapest Car Insurance Across Credit Levels

Where permitted, insurers use credit information to estimate claim risk and set auto insurance rates. Credit is only one of several factors that may affect the price you pay.

Stronger scores often lead to lower prices, but company formulas vary, so drivers with similar credit may still receive different quotes. For more details, read this article: How Credit Scores Affect Auto Insurance Rates

Auto Insurance Monthly Rates by Credit Score

Monthly premiums are based on a 45-year-old male driver with a clean record. Keeping the profile consistent shows how rates change across the four credit tiers.

Auto-Owners offers the lowest monthly rates across all tiers, ranging from $52 to $95. The General has the highest rates, ranging from $94 to $181.

Cheapest Auto Insurance Companies for Younger Drivers

Teens between 16 and 18 usually pay the highest car insurance rates, with 16-year-olds paying the most. Rates tend to drop each year and fall even more by age 19 as teens gain driving experience.

Auto-Owners offers some of the cheapest teen auto insurance among the companies compared and has the lowest rate at every age from 16 to 19. Actual prices will vary by driver profile and location.

Auto Insurance Monthly Rates for Teens by Age

For 16-year-olds, monthly rates go from $164 with Auto-Owners up to $296 with The General. By age 19, rates drop to between $101 and $183. Comparing quotes from different insurers can help you save a lot.

Insurance companies charge new drivers more since they have less experience and are more likely to get into accidents. You can lower your premiums over time by keeping a clean driving record, taking driver training, and getting good-student discounts.

In certain states insurance companies are allowed to take gender into account when setting prices, since previous claims have shown that boys tend to be involved in more serious accidents than girls. However, each insurer assesses this risk in its own way.

A safer, less powerful car may help lower a teen’s premium. Review the policy after birthdays or a move to college, since mileage and coverage needs can change. You can also check Does the car a teen drives affect car insurance rates?

Cheapest Auto Insurance Companies for Older Drivers

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

Comparing rates can help older drivers save on auto insurance. Auto-Owners is the cheapest auto insurance company for senior drivers. Explore More: Best Auto Insurance for Seniors.

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

You can also save money by raising your deductible, letting your insurer know if you drive fewer miles each year, or removing coverage you no longer need. Because discount eligibility depends on your insurer and state, ask which discounts you can combine before changing your policy.

Check your discounts each time your policy renews, since your driving habits or household needs might change. If you are retired, you may qualify for low-mileage savings. New safety features on your car may also qualify you for more 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.

Find the Most Affordable Coverage for Your Needs

Auto insurance rates depend on more than the company you choose. Your location, driving record, vehicle, and coverage level all influence what you pay.

We grouped the rate data by driver type to show how these factors shape prices and where certain companies may stand out. Learn More: Factors That Affect Auto Insurance Rates

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 help you focus on insurers that fit your situation and spot where you can save the most. Our guide explains how comparing quotes can help you balance price and coverage: How to Find Affordable Auto Insurance Rates Online

Top Reasons for Car Insurance Rate Increases

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: 10 Best Auto Insurance Companies for Paying Claims.
• Credit Score: Lower credit scores may raise rates, but some states don’t allow insurers to use credit as a pricing factor.
• 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 premium is set. Check your policy at renewal for unused extras, missed discounts, or coverage limits that no longer suit you.

Keeping tickets and claims off your record can help you maintain lower rates over time. If you drive carefully, usage-based auto insurance may offer additional savings.

Cheap usage-based auto insurance companies offer different programs and maximum discounts. Review their eligibility rules and whether poor results can raise your rate before enrolling.

A low-mileage driver may benefit from one program but not another. Check whether the insurer measures mileage, braking, speed, or travel time to determine whether it suits your habits.

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.

How to Save More Money on Your Car Insurance

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. For more details, read our guide, How Annual Mileage Affects Your Auto Insurance Rates.

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

You can generally find eligible discounts when getting a quote. But savings from safe-driving or pay-as-you-drive programs might not appear in your initial rate.

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 our guide to the Best Auto Insurance Discounts before changing your coverage.

One company might charge more than another to insure the exact same car. Insurers don’t all treat repair bills, past claims, and driver history the same way, so your quote could look quite different from the average.

Before choosing the cheapest quote, check the details. Different limits, deductibles, or optional coverage can lower the price, so make sure you’re comparing policies with the same protection.

See More: Why Do Auto Insurance Rates Vary So Much?

Get an insurance quote for each car you’re considering. A cheaper vehicle isn’t always cheaper to insure, and knowing both costs can help you avoid stretching your 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: Cheapest 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 high 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

• Useful Policy Add-Ons: Erie offers options such as rate lock, better vehicle protection, and a diminishing deductible. Learn More: Erie Auto Insurance Review
• Strong Financial Standing: Founded in 1925, Erie holds an A rating from A.M. Best.
• Above-Average Customer Service: Erie provides responsive claims support and clear guidance throughout the claims process.

Price isn’t the only reason to consider Erie. Its add-ons and discounts can change what you get for your money, so check what’s included before choosing a policy.

Learn more about Erie’s auto insurance options and key benefits. Explore its available discounts, policy features, and potential drawbacks. This overview can help you decide if Erie fits your needs.

Cons

• Limited Availability: Erie is only available in 12 states, mostly in the Northeast and Midwest.
• Limited Digital Tools: Erie’s online and mobile tools are less extensive than those offered by some larger national insurers.

#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 offers support online, by phone, and through local agents. See our Nationwide Review for additional details.
• 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 frustrate customers.
• Limited State Availability: Nationwide does not offer auto insurance in Alaska, Hawaii, Louisiana, or Massachusetts.

#4 – The Hartford: Cheapest for Tailored Policies

Pros

• Tailored Policies: The Hartford offers customizable policies designed to meet individual needs. Explore its options in our guide: The Hartford Review
• 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 cost more for young drivers because of their age and driving experience.

#5 – AAA: Cheapest Roadside Assistance

Pros

• Roadside Assistance: AAA provides dependable help with towing, flat tires, dead batteries, and lockouts. Find Out More: 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 you to become an AAA member.
• 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 offers responsive claims support to help customers navigate the process. Our American Family Review provides additional details.
• 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.

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: American Family’s customer feedback includes complaints about billing and policy changes.

#7 – Travelers: Cheapest Comprehensive Coverage

Pros

• Claim Forgiveness Program: Your rate won’t increase after your first accident if you qualify for this program. See More: Travelers Auto Insurance Review
• Comprehensive Coverage Options: Customers can benefit from standard coverage and add-ons like gap, rental, and rideshare insurance.
• Ways to Save: Savings are available for safe drivers, bundled policies, and hybrid or electric cars.

Cons

• Sparse Local Agents: A nearby Travelers office may be difficult to find in some areas.
• Mixed Customer Reviews: Travelers receives criticism for its claims handling and customer service.

#8 – Farmers: Cheapest for Safe Drivers

Pros

• Safe-Driving Discounts: Our Farmers Insurance 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

• Claims Delays: According to customer reviews, The General’s claims process can be slow and frustrating.
• Poor Communication: The General receives complaints about delayed or unclear policy and claim updates.

How to Find the Cheapest Auto Insurance

The cheapest type of auto insurance is usually state minimum coverage. It includes the coverages and limits required in your state.

However, minimum coverage may not be enough for every driver. You should consider full coverage if any of the following applies:

Read More: Cheapest Liability-Only Auto Insurance

• Your Auto Has a Loan or Lease: Most loan and lease agreements require you to carry comprehensive and collision insurance 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 the yearly cost of collision and comprehensive coverage is more than 10% of your car’s value, think about whether it’s still worth it. Before dropping either coverage, consider your deductible, your car’s value, and whether you could afford to replace it.

Our free comparison tool lets you compare auto insurance quotes instantly to find the cheapest coverage in your area.