Which insurance company is usually the cheapest?
Cheapest car insurance in March 2024. Bankrate's analysis found Auto-Owners, USAA and Geico are among the cheapest insurers in the U.S.
State Farm is the cheapest car insurance company overall according to NerdWallet's analysis, with an average rate of $39 a month for minimum coverage.
Both Geico and Progressive offer cheap car insurance to drivers across the country. Geico's rates are typically lower overall, but Progressive tends to offer better prices to high-risk drivers. High-risk drivers are those with a recent DUI, at-fault accident or speeding ticket on their driving record.
The cheapest type of car insurance is state-minimum liability coverage. Liability car insurance costs $716 per year on average, and it is cheaper than a full coverage car insurance policy since it does not include comprehensive and collision coverage.
- Best for affordability: Geico.
- Best for customer satisfaction: State Farm.
- Best for wide coverage: Nationwide.
- Best for minimum coverage: Auto-Owners.
- Best for discounts: Amica.
- Best for high-risk drivers: Progressive.
- Best for military members and veterans: USAA.
In general, car insurance companies charge male drivers more for coverage because they're more likely to get into accidents. But while most states allow insurers to consider gender when setting rates, your age, location, insurance provider and driving record usually make a bigger difference.
AAA insurance premiums tend to be more expensive than the national average because AAA doesn't write its own policies. Each regional club operates independently and sells insurance policies underwritten by different agencies.
Is USAA Only for Military? Yes, USAA is only available to active and retired military members and their families. This includes active-duty, former military, cadets, widows, current or un-remarried spouses, and children.
Some of the car insurance inflation in the US can be explained by a pause in premium increases during the pandemic and the widespread parts shortages that hobbled the entire auto industry. But much of the cost pressure for insurers is because vehicles have taken a high-tech turn.
Is Geico overpriced?
The insurer has some of the most affordable rates — our research found that Geico's average rates tend to be 26% cheaper than the national average of $2,508 for good drivers. This is in addition to the savings that drivers can get by participating in the company's discount offerings.
Geico tends to have cheaper rates than Allstate, but Allstate offers more extensive coverage options and flexible roadside assistance packages, which come at a higher premium. Both companies offer similar coverage and discounts.
Geico is so cheap because it sells directly to the consumer. Geico also offers many discounts that help customers save even more on top of its already-low premiums.
Comprehensive. Comprehensive insurance is, in most cases, the most expensive coverage on the market. It provides the same cover as third party fire and theft; however, it also allows you to claim for accidental damage to your own vehicle, no matter who is to blame in the case of a collision.
Your rate may go up if you have comprehensive auto coverage and file a claim for incidents like car theft and vandalism, hitting a deer, fire, glass breakage (including a cracked windshield), hail/weather-related damage, and other acts of nature.
According to our data, Geico offers the best cheap car insurance for new drivers, with USAA, Erie, and Nationwide also making the list. The best cheap car insurance companies offer young and new drivers affordable premiums, numerous coverage options, responsive customer service, and an easy claims process.
Who is State Farm's biggest competitor? State Farm is the largest car insurance company with $46.7 billion in premiums written in 2022. Its largest competitor is Progressive, with $38.9 billion in written premiums.
State Farm is the most popular insurance company nationwide, and it also is the most popular company in 19 states. Progressive is the largest insurance company in 21 states, including many New England states, some states in the Midwest, Florida and Texas.
Based on our research, Geico offers the best car insurance in California. Progressive, USAA, State Farm and Allstate are also reliable options for most drivers. *Our research team considers nationwide factors when rating providers. The ranking order of providers in this table is specific to car insurance in California.
The Insurance Institute for Highway Safety reports that teen drivers are four times more likely to get into a car crash than drivers 20 and older. As a result, car insurance companies view young drivers as the most risky to insure. Drivers ages 16 to 24 tend to face the highest premiums compared to other age groups.
At what age does car insurance get cheaper Why do you think this is?
Experienced drivers are less likely to have accident claims, which means they cost less to insure. At Progressive, the average premium per driver tends to decrease significantly from 19-34 and then stabilize or decrease slightly from 34-75. At age 75, the average premium begins trending upward.
- Increase your deductible.
- Check for discounts you qualify for.
- Compare auto insurance quotes.
- Maintain a good driving record.
- Participate in a safe driving program.
- Take a defensive driving course.
- Explore payment options.
- Improve your credit score.
On average, GEICO offers more affordable rates than AAA for drivers with credit scores that dip below 580. Drivers with outstanding credit — a score of 800 or better — should consider GEICO as well, for an average savings of $1,750 per year compared to AAA.
Car insurance costs have been on the rise this year, leaving drivers paying more and searching for ways to save. According to a report from Bankrate, the average annual premium of full-coverage auto insurance rose to $2,543 in 2024 — up 26% from the previous year.
| AAA Classic | AAA Plus | AAA Premier |
|---|---|---|
| $65 per year $5.99 per month | $95 per year $8.49 per month | $135 per year $11.82 per month |
