What is the cheapest auto insurance company?

USAA has the lowest average auto insurance rates in the US, with an average cost of $211.44/mo. However, they only service military personal, veterans, and their families.

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance...

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Reviewed byDaniel Walker
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UPDATED: Apr 22, 2020

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Things to Remember...

  • Rather than looking for the cheapest auto insurer, think about what insurance will provide the best value
  • In general, you can expect to pay less for car insurance if you are a married woman over the age of twenty-five
  • In certain states, auto insurance costs more than in other states
  • If you have had a large number of insurance claims you may have to look harder to find a good value for your next automotive policy
  • Statistically, the further you travel each day to get back and forth to work, the more your auto insurance will cost you

Unfortunately, purchasing auto insurance is not as easy as simply looking for the cheapest auto insurance company. There are many factors that go into an auto insurance quote. There simply is no such thing as “the cheapest auto insurance company.”

Rather than looking for the cheapest auto insurer, think about what insurance will provide the best value. For insurance plans that are a great value, enter your ZIP code into our FREE auto insurance tool.

The most effective way to get the best possible value for your cheap auto insurance policy is to consider all the variables, then choose the policy that is the best fit for your needs.  Some variables that affect the price of auto insurance include:

Who are you?

Auto insurance company statistics are important to help you choose your company and policy. In general, you can expect to pay less for car insurance if you are a married woman over the age of twenty-five.

If you don’t fit this description, don’t give up, policies vary with different insurers.

Take time to compare the different prices that each insurance company offers for someone of your gender and age. Looking at the offers of several companies will help you locate the cheapest policy for you.

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Where do you live?

In certain states, auto insurance costs more than in other states. There are many geographical factors that go into an auto insurance quote, including annual snow and rainfall, population density, and crime rates for your specific neighborhood.

Living in an area with a high crime rate can have an impact on the cost of insurance, however, rates can vary from one street to the next.

Look for an auto insurance company that knows your particular area well to get the best rates.

It goes without saying that moving violations and tickets will have a negative effect on your insurance premiums. Don’t let a less-than-perfect driving record discourage you from looking for a better auto insurance rate.

Even those with imperfect driving records can find a good value in auto insurance if they compare rates across many companies.

How many claims have you made?

While tickets can make your insurance more expensive, the largest increase in the cost of auto insurance generally comes from the number of claims you have made on your current insurance.

Again, the number of claims it takes to trigger a cost increase vary by insurer.

If you have had a large number of insurance claims you may have to look harder to find a good value for your next automotive policy.

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What kind of car are you driving?

A more expensive car will cost more to repair or replace so you will pay higher premiums if you are driving a new or valuable car.

Imported cars and cars with custom features such as rims and paint jobs are also going to cost more to insure than a more modest car.

When shopping for a car consider the effect a new model may have on your insurance premiums.

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How far do you drive every year?

Statistically, the further you travel each day to get back and forth to work, the more your auto insurance will cost you.

Mileage can vary greatly by the insurer, however, so compare your average yearly mileage across several companies to find the best deal for your insurance needs.

What do you do for a living?

It may surprise you to know that insurers consider your occupation in the calculation of how much to charge for your insurance policy.

When you stop to think about it, it is clear that a person who uses their car to make deliveries is going to be a higher insurance risk than a teacher who is safely inside a classroom every day.

So with all of this to consider, how can a consumer find the cheapest auto insurer? The answer is not simple.

There is no one, single insurance carrier that is cheaper than all the others. Just like every person is unique, each policy offered will also be unique.

To find a unique auto insurance policy for you, enter your ZIP code into our FREE car insurance tool.

The best way to find the most affordable auto insurance policy is to enter your personal details into an insurance comparison calculator and carefully read and consider all the different policies that come up as a match for you.

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