Finding affordable car insurance that fits your budget while still providing adequate coverage is crucial. This comprehensive guide examines some of the cheapest national and regional auto insurance carriers for 2023. We analyzed rates and customer service factors to reveal the best value insurers on the market right now.
Methodology for Choosing the Best Cheap Insurance Companies
We took several steps to identify and rank top low-cost insurers from the hundreds of providers nationwide:
Evaluated Average Insurance Rates in All 50 States
Using up-to-date information on average annual premiums for minimum and full coverage from Quadrant Information Services, we identified carriers with consistently affordable pricing relative to competitors in each state and area.
Compared Customer Satisfaction Ratings
While cheap rates are crucial, value also means higher policyholder satisfaction. So we compared J.D. Power claims scores and other third party reviews to incorporate customer experience.
Reviewed Financial Stability Ratings
In addition to pricing and satisfaction, we wanted to highlight fiscally stable insurers, so we analyzed provider financial strength marks from A.M. Best and Moody’s to confirm their ongoing viability.
Calculated Bankrate Scores
Finally, we weighed all these factors – average premium rates, reviews, coverage options, and more – to assign each insurer an overall Bankrate Score out of 5 for easy comparison.
The 5 Cheapest Car Insurance Companies of 2024
After running the numbers and data, these rated as the top low-cost auto insurance providers based on unique ranking methodology:
1. Auto-Owners Insurance
With rock-bottom average rates and superb financial ratings, Auto-Owners takes the top spot for cheapest insurer. They offer the lowest average premiums specifically for high-risk drivers with marks on their record while maintaining strong customer service and claims reviews as well.
Best For – High-risk drivers, Minimum state required coverage
2. USAA
The second cheapest insurer overall, USAA continues providing competitive rates and top-class support exclusively for members of the military and their families. Average costs increased only negligibly for 2024.
Best For – Military members and families seeking minimum and full coverage
3. Geico
As one of the largest insurers in the country, Geico leverages that massive size to offer affordable pricing for all drivers from low-to-high risk. They excel at keeping premium costs low with bare bones minimum coverage plans specifically.
Best For – Minimum state required coverage and high-risk drivers
4. Amica Mutual
Lauded for world-class customer experience, Amica manages to combine top-tier support with cheaper than average premium rates across driver profiles. They increased slightly more than competitors for 2024 however.
Best For – Minimum and full coverage plans with top-notch service
5. State Farm
Rounding out the top national companies providing lowest priced plans is State Farm. As the #1 home insurer as well, they offer opportunities to save with multi-policy bundles to keep overall costs down.
Best For – Bundling home and auto insurance
Best for New Teen Drivers – Erie Insurance
Insurers view teen drivers as exponentially riskier than more experienced motorists. But Erie Insurance stands out for offering the most affordable rates specifically for younger newcomers behind the wheel.
READ ALSO: Average Car Insurance Costs in 2023: A Complete Analysis
Best Regional Companies by State for Minimum Coverage
In addition to large national brands, smaller providers concentrating efforts regionally offer affordable prices tailored to local markets. Here are top cheap insurers by state for minimum requirements:
Alabama – Alfa Mutual Insurance
Alaska – Hickel Mutual Insurance Co
Arizona – American National
Arkansas – Southern Farm Bureau
California – Wawanesa Insurance
Colorado – Pinnacol Assurance
Connecticut – Travelers
Delaware – Nationwide
Florida – State Farm
Georgia – Georgia Farm Bureau
Hawaii – Island Insurance
Idaho – Farmers Insurance
Illinois – COUNTRY Financial Insurance
Indiana – Indiana Farm Bureau Insurance
Iowa – Farm Bureau Financial Services
Kansas – Farm Bureau Property & Casualty Insurance Co
Kentucky – State Farm
Louisiana – Louisiana Farm Bureau Mutual Insurance Co
Maine – Concord General Mutual
Maryland – Erie Insurance Co
Massachusetts – Safety Insurance
Michigan – Hastings Mutual
Minnesota – Western National Insurance
Mississippi – Mississippi Farm Bureau
Missouri – Shelter Insurance
Montana – Mountain West Farm Bureau Mutual
Nebraska – American National
Nevada – Farmers Insurance
New Hampshire – Merchants Insurance Group
New Jersey – New Jersey Manufacturers
New Mexico – New Mexico Mutual
New York – NYCM Insurance
North Carolina – North Carolina Farm Bureau
North Dakota – ND Farm Bureau Insurance
Ohio – Westfield Insurance
Oklahoma – Oklahoma Farm Bureau
Oregon – State Farm
Pennsylvania – Erie Insurance
Rhode Island – Amica
South Carolina – South Carolina Farm Bureau
South Dakota – Farmers Mutual Insurance Co
Tennessee – Tennessee Farmers Life Insurance
Texas – Texas Farm Bureau
Utah – Bear River Mutual Insurance Co
Vermont – Vermont Mutual Insurance Group
Virginia – Erie Insurance
Washington – PEMCO Insurance
West Virginia – West Virginia National Auto Insurance Co
Wisconsin – West Bend Mutual Insurance Company
Wyoming – Ivinson Memorial Hospital
While pricing remains essential for picking the cheapest companies overall, make sure to also weigh customer service ratings, coverage amounts, and discounts offered to get the best value aligned to your situation.
READ ALSO: How to Get Car Insurance Quotes: A 4-Step Guide
Average Nationwide Car Insurance Rates
On a national level across all major insurers, here are typical costs the average American driver can expect to pay depending on policy specifics:
- Full coverage car insurance: $2,014 per year
- Full coverage car insurance monthly payments: $168 per month
- Minimum coverage car insurance: $622 per year
- Minimum coverage car insurance monthly payments: $52 per month
These figures provide a broad baseline for budgeting and comparisons, but your personalized premium will depend on many individual factors.
What Influences Car Insurance Rates by State
Depending on where you live in the country, average insurance rates fluctuate tremendously because insurers calculate varying risk levels by state and region when pricing plans.
Several territorial factors cause car insurance costs to swing wildly:
Traffic, Congestion, and Accident Rates
Densely populated areas with crowded, unsafe roads see more collisions and claims – and therefore carriers apply higher premiums. More dangerous driving conditions equal costlier coverage.
State Minimum Insurance Requirements
Whether collision, comprehensive, personal injury protection and other extra coverage types get mandated makes a massive rate impact. More required coverage means higher overall pricing.
Extreme Weather Risks
Hurricanes, hail storms, flooding, freezing winters and more drive claim volume way up so insurers raise base premiums to counterbalance those outlays in at-risk coastal and farm belt states.
Cost of Living
Higher costs of living and inflation in urban regions lead to pricier auto body repairs, medical care bills, and replacement vehicle values – all key factors in insurance claim payments.
So while America averaged $2,014 annually across the board, analyzing prices district-by-district within each state matters more.
Most Expensive States
Florida – $3,183 per year
Michigan – $2,691 per year
Nevada – $2,779 per year
Least Expensive States
Maine – $941 per year
Hawaii – $1,275 per year
Idaho – $1,133 per year
Evaluating rates through this geo-targeted lens highlights why shopping nationally recognized lowest cost insurers simultaneously with local niche competitors often reveals the best mix of value.
No-Fault vs At-Fault: State-Level Claims Handling Impacts Rates Too
Whether states use no-fault or at-fault systems for handling injury claims after accidents creates massive rate variations as well:
No-Fault States
Injured drivers file injury claims with their own insurer regardless of crash fault first. Required to carry extensive personal injury protection (PIP) policies to enable this claims handling process. At-fault party still covers vehicle repair costs and damages beyond specified thresholds however.
12 No-Fault States – Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, Utah
At-Fault States
Party responsible for accident pays directly for other driver’s losses either out-of-pocket or via their liability insurer. No requirement for not-at-fault injured party to claim against their own policy first in these “tort system” states.
So state-by-state legislative differences drive rates up through coverage mandates or down by limiting types required in each.
Average Car Insurance Cost Factors Beyond Location
While geography sets the pricing stage, insurers utilize proprietary algorithms weighing numerous individual traits to ultimately determine personalized premiums including:
Driving History
Past collisions, traffic violations, DUI convictions make carriers view policyholders as riskier bets so they apply surcharges raising rates accordingly. How long you’ve been licensed also plays a role.
Credit History
In most states, insurers charge significantly higher premiums for policyholders with lower credit scores relative to those maintaining excellent FICO marks. Poor credit equals over 50% pricier premiums routinely.
Vehicle Make, Model, & Type
Sports cars, luxury brands, and large trucks set you back much more compared to economy sedans due to higher accident likelihood, expensive parts/repairs, and medical care costs tied to greater injuries during crashes.
Gender & Marital Status
Married couples catch a break with discounts around 5% over single policyholders. And despite some state bans, men still tend to pay moderately more nationally due to riskier driving histories incurring violations and claims.
Mileage
Higher annual miles driven ratchets up risk of incidents plus more vehicle wear-and-tear so discounts apply for those motorists tallying less than 7,500 miles per year typically.
Incorporating this wide swath of individual driving data allows insurers to calibrate to the penny a customized premium tilted toward revenue protection against eventual payouts.
Comparing Car Insurance Quotes Properly
With so many personalized factors manipulating rates between policies, accurately comparing quotes requires adhering to several key guidelines:
Determine Exact Coverage Amounts Desired After Reviewing Budget
Figure out ideal limits and deductibles fitting your budget alongside each added protection type beyond liability – collision, comprehensive, rental, etc. Jot down specifics.
Gather All Personal Data Points Impacting Premiums
- Driving history – accidents, tickets, DUIs
- Current credit tier
- VIN number and vehicle features
- Years licensed and average annual miles
Get Quotes From at Least 5 Companies
National insurers plus smaller regional players helps uncover best rates available to you.
Compare Identical Policy Packages Side-by-Side
Plug the same liability limits, deductibles, and extra coverages into every quote generating system along with your personal data for standardized comparisons.
Overlooking these rules and entering differing details skews rate quote accuracy and muddies the cheapest company identification process.
How Can Young Drivers Receive the Best Cheap Rates?
Insurers classify drivers under 25 years old as “high risk” so they face exorbitant premium costs. But some tips help teens find affordable coverage:
Get Added to Parents’ Policy
Maintaining separate policies proves vastly more expensive so add them as additional insured drivers on your existing policy until they reach their mid-20’s and shift to independent policies.
Ask About “Good Student” Discounts
Most leading insurers provide discounted rates to teen students maintaining a 3.0 GPA or higher, so ensuring qualifying child’s make the grade earns savings around 20%.
Enroll Your Teen in Defensive Driving Courses
Many carriers knock 5-15% off premiums for completion of state approved driver safety classes teaching hazard avoidance skills.
Consider Telematics Tracking Programs
Installing driving behavior monitoring devices allows providers to witness safe habits firsthand and deliver lower rates in return through customized telematics policies.
Pursuing these avenues positions younger motorists to secure the cheapest car insurance rates available to them until establishing longer positive driving histories.
How Auto Insurance Premium Costs Change Over Time
Pricing models remain highly dynamic year-in and year-out with shifts happening constantly:
Periodic Premium Increases
Rising medical care costs, replacement vehicle value inflation, parts shortages, and economic recessions driving more claims all contribute to across the board rate hikes insurer wide.
Potential Intermittent Decreases
On the other hand improved accident-avoidance vehicle safety features, less traffic during COVID-type events, better regional risk modeling, and lower catastrophe damage payouts allow periodic temporary price decreases as well.
Typical Long Term Trends
- 16-25 year olds realize gradual premium drops annually as they build clean driving history
- Those with prior violations/accidents see glacially slower improvements
- Senior prices hold mostly steady then tick back up around age 70
So expect fluid movements on pricing but shop around consistently for maximum savings.
How Car Insurance Discounts Reduce Costs
Since insurers want your business, they offer myriad opportunities to lock-in discounts reducing premium costs:
Bundling Home & Auto Insurance
Maintaining multiple policies with one carrier usually earns up to 30% off versus holding separate unbundled plans.
Good Driver
Five years clean driving equates to a break around 30% as well compared to recent infractions raising rates exponentially.
Paying Premiums Upfront Annually
Opting to pay 6-month or annual lump sums secures a 5-8% discount over monthly installments.
Paperless E-Delivery Savings
Consenting to electronic delivery only of policy documents and bills avoids printing/postage fees so carriers pass back savings.
Affinity Group Membership
If belonging to recognized groups like AAA, owning hybrid vehicles, public servants etc. then discounted rates apply for those designations routinely.
Telematics Tracking
Allowing plug-in devices or smartphone apps to monitor real-time driving analytics rewards those displaying consistently safe habits with slashed premiums.
Since customer retention matters greatly, insurers make reducing loyalty costs easier through continual discount opportunities. Leverage them fully when shopping rates and securing coverage.
To Recap
Finding the most affordable car insurance resteems as a perpetual challenge – but gets easier positioning policies optimally early then revisiting deductibles, coverage limits, and discounts routinely. Avoid just automatically renewing policies without regular comparative quote shopping cycles.
Include both large national cost leaders like Geico alongside niche players such as regional outfits concentrating heavily on state-level competitiveness. The market remains oversaturated intentionally encouraging consumers to leverage choice as bargaining leverage even amid external economic turbulence straining prices continually.
Getting car insurance right comes down to vigilance – monitoring fluid rate movements, exploiting discount openings, and ultimately purchasing adequate protection balanced against budget limitations. Use this exhaustive guide as a roadmap to drive savings home without detours.
Frequently Asked Car Insurance Questions
Still have lingering questions about finding cheap rates in your state? Below see answers to some commonly asked questions:
How Much Can Discounts Reduce My Car Insurance Costs?
Stacking multiple discounts concurrently generates significant savings – dropping premiums paid 20-40% over time. Maximizing qualifying reductions positions policies at lowest prices.
Which Auto Insurers Increase Rates the Most at Renewal?
Unfortunately most insurers enacted outsized rate hikes upwards of 10-15% averaging the last couple years tied to external economic conditions. But Geico, Allstate and Progressive specifically also file for above average increases more frequently eroding affordability.
Should I Increase My Liability Coverage Limits?
Experts strongly advise buying higher 100/300/100 limits (or more) despite modestly higher premiums to replace woefully inadequate minimums barely covering an accident’s costly consequences.
What Steps Can High Risk Drivers Take to Find Cheaper Insurance?
Aside from maintaining clean driving records from this point forward, installing telematics trackers demonstrate driving safely now. Comparing quotes from specialty insurers offers better pricing options to mainstream carriers as well.
If I Drive Less Than 5,000 Miles Per Year, How Much Money Could I Save?
Ask every prospective insurer about “low mileage discounts” during initial rate quotes. Providing documented annual odometer readings or telematics app stats earns breaks around 15-23% for those motorists minimizing days on the road.
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