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 vary because insurers look at factors like your location, driving record, credit score, age, vehicle, and coverage level.

Since each insurer weighs these factors differently, the cheapest option can vary by driver. Comparing quotes from several providers can help you find the best rate for your profile.

We’ve grouped auto insurance companies by the cheapest options for different driver categories. This helps you compare providers based on factors that may affect your rate.

Whether by age, driving history, location, or coverage type, these groupings highlight companies with lower prices. Use them to narrow your options and find a policy that fits.

Below, we’ll break down each category and show which companies offer the cheapest rates for different drivers. This helps explain why certain insurers stand out.

We’ll also explain the key factors behind each ranking, such as driver profile, coverage type, and pricing trends. Use these details to find the company that best fits your situation.

Read More: Geico Auto Insurance Review

Cheapest Auto Insurance Overall

This table ranks the cheapest auto insurance companies based on minimum and full coverage costs.

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 looking for cheaper policy choices.

Liberty Mutual has the highest rates, charging about $96 for minimum coverage and $248 for full coverage. Drivers may want to compare both cost 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 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

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. The exact increase depends on the driver, insurer, and violation.

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.

Keeping a clean driving record helps keep auto insurance premiums low. Erie is the cheapest option for drivers with an accident record, with rates as low as $45 per month. Compare the other insurance companies with reasonable rates 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 cheapest option. This can help lower costs compared to buying a separate policy.

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 take safety courses to earn discounts when available from their insurer. Maintaining a clean record and comparing quotes can also help them find coverage that fits their needs and budget.

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.

Cheapest Auto Insurance Companies by State

Auto insurance rates vary widely by state because location plays a major role in pricing. Factors like claim frequency, laws, and repair costs can affect premiums.

The table below shows which companies offer the cheapest coverage in each state. Use it to compare low-cost 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 it easier to find affordable coverage. However, prices still vary by company, driver profile, and coverage level.

Comparing quotes from several insurers can help you see which provider offers the best price. This can help you find the right rate in your state.

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: Filing multiple claims can lead to higher insurance rates because insurers may view you as a higher-risk driver.
• 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

The ZIP code where you live can affect rates based on weather, crime, living costs, and similar local factors. Insurers may use these details to estimate risk in your area.

California and Michigan are exceptions, as using ZIP codes to calculate rates is prohibited. In those states, insurers must rely on other approved rating factors.

You may lower your rates by bundling auto insurance with other coverages or 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

Discounts are one of the best ways to save on auto insurance. Shopping around and comparing quotes can also help lower your premium.

Many insurers offer savings based on your policy, driving habits, or vehicle features. Reviewing available discounts can help you find more ways to save.

The following discounts are commonly available from most insurance providers. These may include savings for safe driving, bundling, or vehicle features.

Reviewing these discounts can help you find more ways to lower your premium. You may qualify for more savings than expected.

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 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 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 around for over 90 years and boasts an A+ financial rating by A.M. Best.
• Above-Average Customer Service: Many customers have reported quick and easy claims processes with 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 located 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 for add-ons like 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 their 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 ratings in satisfaction surveys.
• Plenty of Coverage Options: Customers can tailor their auto insurance policy to fit their needs by choosing from various coverage options.

Cons

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

#7 – AAA: Cheapest for Road Assistance

Pros

• Roadside Assistance: AAA offers extensive roadside assistance coverage, which 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 has 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 giving customers added peace of mind.

Cons

• Costlier for High-Risk Drivers: Customers with a history of accidents or traffic violations may face higher rates with Farmers compared to other insurance companies.
• 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 various 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 lease and loan agreements require you to carry comprehensive and collision insurance on your vehicle until you pay off your loan or lease.

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.