Cheapest Auto Insurance Companies in 2024 (10 Most Affordable Providers)

Finding the cheapest auto insurance companies might feel difficult, especially when you consider that rates can vary between providers by over $100 a month. Several factors impact how much you’ll pay for auto insurance, which can make choosing the right company a challenge.

Despite rising costs, it’s not impossible to lower your auto insurance costs without sacrificing essential coverage.

Finding cheap auto insurance is a straightforward process requiring little time and research.

Read on to learn more about finding the most affordable auto insurance rates, then compare personalized quotes with multiple companies, by entering your ZIP code, to find the best price.

#1 – Geico: Best for Consistent Affordability

Pros

• Competitive Rates: Geico is known for offering some of the most consistently competitive rates in the car insurance industry, making it an attractive option for many drivers making it one of the cheapest auto insurance companies. Check out our Geico auto insurance review to learn more.
• Discounts: Geico offers a variety of discounts, such as good driver, good student, and multi-policy,  which can help lower premiums, contributing to its top spot for cheapest auto insurance.
• User-Friendly Online and Mobile Platforms: Geico provides online and mobile app services that allow their customers to manage their policies, file claims, and access roadside assistance, this automated service helps lower the price of their auto insurance. 
• Customer Service: Geico generally receives positive reviews for its customer service, with representatives available 24/7 to assist policyholders.

Cons

• Higher Rates for High-Risk Drivers: Geico can be less competitive in pricing for high-risk drivers compared to other insurers, which may result in higher premiums for auto insurance
• Customization of Policies: Some customers feel that Geico’s policies are less customizable compared to other insurers that offer more tailored options which may be a problem for cheaper auto insurance if the option is not available.
• Coverage Options: While Geico offers standard coverage options at affordable prices, it may lack some of the specialized coverage options available from other insurers, such as new car replacement or gap insurance. 

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#2 – USAA: Best for Military Affordability

Pros

• Competitive Rates: USAA offers competitive rates, especially for military members and their families. They offer special discounts and benefits tailored for military personnel giving cheaper auto insurance than other insurers.
• Excellent Customer Service: USAA consistently ranks high in customer satisfaction surveys, often praised for its helpful and responsive customer service, contributing to cheaper auto insurance. 
• Comprehensive Coverage Options: USAA offers a wide range of coverage options, including standard policies and additional options like roadside assistance and rental reimbursement. Find out more with our USAA auto insurance review.

Cons

• Eligibility Restrictions: USAA membership is restricted to military members, veterans, and their families, so not everyone is eligible to join. The rates for non-military members can be higher which can be a problem for those seeking cheaper car insurance.
• Limited Availability: USAA is not available in every state, so those looking for the cheapest auto insurance may find this as a drawback if you’re ever relocating outside their coverage area.

#3 – Progressive: Best for Competitive Pricing

Pros

• Competitive Rates with Coverage Options: Progressive is known for offering competitive rates with its wide range of coverage options, including gap insurance, rideshare cover, and custom parts and equipment coverage, often lower than many other major insurers.
• Snapshot Program: Progressive’s Snapshot program can offer discounts based on your actual driving habits, potentially lowering your premiums.
• Bundling Discounts: Progressive offers discounts for bundling car insurance with other types of insurance within their company. So if you’re already a customer of Progressive for other types of insurance, you can find cheaper auto insurance.
• Customer Service: Generally positive reviews for customer service and claims handling, contributing to their cheaper auto insurance prices. Our Progressive auto insurance review discusses their fantastic customer service and more.

Cons

• Rates Can Vary: While generally competitive, rates can sometimes be higher depending on individual circumstances such as location and driving history.
• Potential Rate Increases: Some customers have reported significant rate increases upon renewal, even without any claims or changes in driving history.
• Limited Local Agents: Progressive primarily operates online and over the phone, which might be a drawback for those who prefer face-to-face interaction with an agent.

#4 – Farmers: Best for Customizable Pricing

Pros

• Local Agents: Farmers has a robust network of local agents, find out more with our Farmers auto insurance review about the personalized service and support that contribute to their cheap car insurance premiums. 
• Comprehensive Coverage Options: Offers a wide range of coverage options, including liability, collision, comprehensive, uninsured/underinsured motorist, and specialty options like rideshare and new car replacement coverage.
• Discounts: Farmers provide various discounts, such as multi-policy, good student, safe driver, and affinity group discounts.
• Customizable Policies: Offers highly customizable policies to fit individual needs and preferences for cheap car insurance.

Cons

• Premiums Can Be Higher: Some customers find that Farmers’ premiums are higher compared to other insurers.
• Discount Availability: Not all discounts are available to every customer, which can limit potential savings for cheaper auto insurance.
• Potential Rate Increases: Some policyholders report significant rate increases upon renewal, even without claims or changes in driving history.

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#5 – American Family: Best for Competitive Rates

Pros

• Personalized Service: American Family offers a strong network of local agents within numerous states, providing personalized customer service for their auto insurance. Read American Family auto insurance reviews for their positive reviews on customer service.
• Comprehensive Coverage Options: Liability, collision, comprehensive, uninsured/underinsured motorist, and more coverage options are available, so if you’re working commercially or just driving leisurely, American family has the right cheap auto insurance for your needs.
• Discounts: Offers various discounts, such as multi-policy, good student, safe driver, loyalty discounts, and usage-based insurance programs like KnowYourDrive which can help save on auto insurance premiums.

Cons

• Premium Rates: Premiums can be higher compared to some competitors, depending on individual circumstances.
• Discount Limitations: Not all customers may qualify for the available discounts, which can limit potential savings for auto insurance.

#6 – State Farm: Best for Reliable Coverage

Pros

• Strong Local Presence: State Farm has a large network of local agents, offering personalized service and face-to-face interactions, perfect for people’s preferences to visit an agent for auto insurance help instead.
• Excellent Customer Service: Generally high ratings for customer service and claims handling, especially with their user-friendly app for mobile, this can be used for managing policies, filing claims, and accessing ID cards. 
• Comprehensive Coverage Options: Wide range of coverage options, including liability, collision, comprehensive, rental car coverage, and roadside assistance, along with discounts such as multi-policy, safe driver, and good student discounts.
• Financial Strength: State Farm is one of the largest and most financially stable insurance companies, ensuring reliability in paying claims with their cheap auto insurance. 

Cons

• Premiums Can Be Higher: Some customers find that State Farm’s premiums are higher compared to other insurers. To learn more about auto insurance premiums, read our “What are auto insurance premiums?” 
• Rate Increases: Reports of rate increases upon renewal, which can be frustrating for policyholders with no change in their driving history.
• Limited Flexibility with Online Tools: While the mobile app is robust, the website and online tools might not be as comprehensive or flexible as some auto insurance competitors.

Visit our State Farm auto insurance review for more information.

#7 – Nationwide: Best for Trusted Support

Pros

• Comprehensive Coverage Options: Nationwide offers a wide range of coverage options, including standard policies (liability, collision, comprehensive) and additional options like gap insurance, new car replacement, accident forgiveness, and vanishing deductible. Read our article on “What are the different types of auto insurance coverage?” to find more coverage options.
• Discounts: Multi-policy, multi-car, safe driver, good student, anti-theft device, and paperless billing discounts, are just a few mentioned which Nationwide offers to help lower auto insurance premiums.
• Strong Financial Ratings: Nationwide has strong financial ratings, indicating reliability in paying out claims and overall financial stability. To know more about Nationwide, check our Nationwide auto insurance review.
• Customer Service: Generally, Nationwide receives positive reviews for its customer service, with representatives available to assist policyholders with their needs. The claims process at Nationwide is also considered to be smooth and streamlined with online and mobile claims reporting, making it easier for policyholders to file and track claims, this contributes to cheap auto insurance.

Cons

• Higher Premiums: Some customers report that Nationwide’s premiums can be higher than those of other insurers, especially for full coverage options. This can be problematic for those looking for a cheaper premiums for bigger coverage.
• Mixed Reviews on Claims Satisfaction: While many customers are satisfied with Nationwide’s claims process, there are occasional complaints about claim denials or lower-than-expected payouts.
• Specialized Coverage: Nationwide may lack some specialized coverage options or endorsements that other insurers provide, such as rideshare coverage or classic car insurance, this can be a drawback for some drivers looking for specific auto insurance.

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#8 – Allstate: Best for Discount Options

Pros

• Local Agents and Digital Tools: Allstate has a strong network of local agents across the United States, who can provide personalized service, support, and claims handling. For even more flexibility, they offer a robust mobile app for managing policies, filing claims, and accessing insurance ID cards for their auto insurance policies.
• Comprehensive Coverage Options: Offers a wide range of auto insurance coverage options, including liability, collision, comprehensive, uninsured/underinsured motorist, and specialty coverages like rideshare insurance.
• Discounts: Provides various discounts, such as multi-policy, good student, safe driver, new car, and anti-theft device discounts. If you want to read more, check the Allstate auto insurance review for a wide range of discounts offered.
• Drivewise Program: The Drivewise program can help safe drivers save money by monitoring driving habits and offering discounts based on safe driving. 

Cons

• Premiums Can Be Higher: Some customers find Allstate’s premiums to be higher compared to other insurers in this list.
• Rate Increases: Some policyholders report significant rate increases with their auto insurance upon renewal, even without any claims or changes in driving history.
• Coverage Limits: Some specialty coverages may have limitations or restrictions that could impact overall auto insurance coverage.

#9 – Travelers: Best for Discount Variety

Pros

• Comprehensive Coverage Options: Travelers offers a wide range of coverage options, including standard policies (liability, collision, comprehensive) and additional options like gap insurance, new car replacement, accident forgiveness, and roadside assistance. Be sure to read Travelers auto insurance review to find out more.
• Discounts: Travelers provides various discounts, such as safe driver, multi-policy, multi-car, good student, and hybrid/electric vehicle discounts, helping to reduce premiums and find cheaper auto insurance.
• Customer Service: Travelers generally receive positive reviews for their customer service, which helps with any claim process needed if you get into an accident. The company offers a streamlined claims process with online and mobile claims reporting, making it easier for policyholders to file and track claims.
• Innovative Tools: Travelers offers tools like IntelliDrive, a usage-based insurance program that tracks driving behavior to potentially lower premiums for safe drivers, contributing to Traveler’s lower price for auto insurance.

Cons

• Higher Premiums: Some customers report that Travelers’ premiums can be higher than those of other insurers, especially for full coverage options, so depending on what vehicle you drive, your insurance premium may be larger than normal. 
• Limited Availability of Discounts: Travelers may offer fewer discounts compared to other insurers, which might result in higher premiums for some policyholders.
• Limited Online Tools: Although Travelers offers online and mobile tools, some customers feel that their digital platforms are less user-friendly and robust compared to those of other insurers like Geico or USAA.

#10 – Liberty Mutual: Best for Flexible Discounts

Pros

• Comprehensive Coverage Options: Offers a wide range of coverage options, including liability, collision, comprehensive, uninsured/underinsured motorist, and specialty coverages like accident forgiveness, new car replacement, and better car replacement for cheap car insurance.
• Discounts: Provides various discounts, such as multi-policy, safe driver, good student, as well as bundling instance discounts, which can give a large drop in your auto insurance premiums.
• Customizable Policies: Highly customizable policies to fit individual needs and preferences that contribute to cheap auto insurance
• Online Tools and Mobile App: Offers a user-friendly website and mobile app for managing policies, 24/7 assistance for customer service and filing claims, and accessing auto insurance ID cards.

Cons

• Premiums Can Be Higher: Some customers find Liberty Mutual’s premiums to be much higher compared to other insurers. Read into our Liberty Mutual auto insurance review to see how cheap auto insurance they could provide.
• Rate Increases: Some policyholders report significant rate increases upon renewal, even without any claims or changes in driving history, this can be problematic for first-year drivers
• Discount Availability: Not all discounts are available to every customer, which can limit potential savings contributing to higher auto insurance premiums.

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Most Affordable Auto Insurance Companies

Not all drivers are the same. It’s difficult to ascertain which auto insurance company offers the most affordable rates for every driver. The best way to buy the cheapest auto insurance is to field multiple quotes from different insurers. When shopping for a new car, it’s essential to consider affordable Subaru auto insurance quotes to ensure the best deal on coverage.

You can visit the website of any auto insurance company you choose and request a free quote. Once you shortlist 3-5 auto insurance companies, gathering a list of quotes shouldn’t be a hassle. 

Next, you should be mindful that many factors can affect the auto insurance rates you’ll receive. This can range from your credit score to your location. Finally, look for strong customer service reviews and multiple coverage options when assessing your options.

If you’re having trouble making the right decision, you can refer to some of the most affordable auto insurance companies or even just enter your ZIP code down below to compare quotes.

Read more:

• Geico DriveEasy Review: Can you get affordable auto insurance?
• Affordable Auto Insurance Quotes for State Employees

Understanding Auto Insurance Rates

In the United States, nearly all drivers are required to have auto insurance. This is because the U.S. government is vested in ensuring all drivers are safe on the road.

Full coverage auto insurance refers to having both collision and comprehensive auto insurance and the specific auto insurance limits your state dictates. Liability coverage is the most basic form of auto insurance and is required in nearly every U.S. state. Minimum liability is the minimum amount of auto insurance coverage required by your state. 

On top of that, anyone operating a motor vehicle must have valid auto insurance to cover their expenses or damages to another driver in the aftermath of an auto accident. As a result, auto insurance is a necessary expense for most people in the United States.

Auto insurance companies have taken advantage of this, many of them charging normal drivers high auto insurance rates. Nonetheless, there are hundreds of auto insurance companies throughout the country. From the corporate giants to local auto insurers, it’s possible to buy auto insurance that won’t break the bank. 

Look for Discounts to Find Affordable Auto Insurance Rates

If you’re looking for a more affordable auto insurance policy, it’s important to shop around and find the best auto insurance discounts. To get the most accurate quote possible, talk to an insurance agent and see if you qualify for special discounts. 

Auto insurance discounts are typically categorized into four types: driver safety discount, driver discount, policy discount, and safe auto discount.

Driver safety discounts generally come from having a good driving record or taking defensive driving courses. Driver discounts often reward certain lifestyles, such as students getting good grades, or seniors reaching a certain age group. 

Policy discounts can be acquired by buying multiple products or coverage levels from one insurer, such as bundling home and auto policies. Finally, a safe auto discount is available when your auto has certain safety features like anti-theft technology or automatic braking systems. 

Using a combination of these discounts, you can save money on auto insurance and get the coverage that best fits your needs. Comparing quotes online is an easy way to get started, but it’s ultimately important to talk to an insurance agent for the most accurate quote possible. 

With a bit of research and careful comparison shopping, you can find cheaper auto insurance with discounts.

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The Most Important Factor in Finding Affordable Auto Insurance Rates

The type of driver that can qualify for the cheapest auto insurance rates depends on various factors. The most crucial factor is typically a person’s driving record. 

Drivers with a clean driving record—meaning they have few speeding tickets, citations, DUIs and other traffic violations—are generally seen as less likely to be involved in accidents or cause property damage, so they tend to get better rates. Learn more about how a DUI affects your auto insurance rates.

Additionally, drivers over 25 years old and taking a defensive driving course may also be eligible for lower insurance premiums. 

Another factor that insurers consider when setting auto insurance premiums is the type of vehicle being covered. Autos with advanced safety features such as airbags and anti-lock brakes often receive discounts from insurers as these vehicles are considered less risky to insure. 

Additionally, autos with a higher market value can be more expensive to insure due to the greater risk of theft or damage. Finally, auto insurance companies look at a driver’s credit score when determining rates. Drivers with good credit are considered lower risks and may qualify for cheaper premiums. 

Not all insurers use credit scores in their rate calculation, but many do, so it is worth checking before applying for coverage.

Factors That Affect Auto Insurance Rates

When shopping for the most affordable auto insurance rates, there are some caveats to be aware of. Below are the most impactful factors that insurers use to calculate your car insurance rate:

Age

Age can be one of the most influential factors regarding auto insurance rates. Generally, auto insurance companies rate drivers between the ages of 18 and 25 at a higher risk for claims due to their lack of experience on the road. Read our article “Do auto insurance rates go down at 21?” to see more on how age affects auto insurance.

This means that young drivers are often subjected to much higher premiums than older drivers, but there are ways around this. Some insurance companies offer discounts for students with good grades or safe driving records, which can help offset the cost of coverage for younger drivers.

Driving Record

Your driving record is another important factor in determining your auto insurance rates. Getting a low rate can be more challenging if you have had previous tickets or accidents. 

Insurance companies will check your driving record before approving any policy and may increase your car insurance premium if they see any potential risks associated with insuring you. High-risk auto insurance costs can be high so be sure to check for the best auto insurance quotes below with our comparison tool.

It’s important to ensure that all violations on your record are accurate and up-to-date, as this could potentially save you money in the long run.

Credit Score

Your credit score is another major factor influencing your auto insurance rates. Insurance companies may use this information to determine the risk associated with insuring you, which could mean higher premiums for those with poor credit scores. 

That said, many companies offer discounts or other incentives to those with good credit, so be sure to ask your insurer about these options if they apply to you. Learn more about your credit score and auto insurance quotes.

Location

Where you live can also be an important factor in determining your auto insurance rates. Certain areas are considered more costly to insure because of the number of accidents or crimes. 

As a result, insurers may charge higher car insurance premiums for drivers in these areas than others.

Vehicle Type

The type of car you drive can also play a role in determining your auto insurance rates. Insurance companies consider certain makes and models riskier than others due to their likelihood of being involved in accidents or stolen. 

Vehicles with higher safety ratings may qualify for discounts, while autos that are more expensive to repair or replace could increase premium costs. Also, luxury vehicles may require additional coverage options and may result in higher premiums.

Driving Habits

Your driving habits can also influence your auto insurance rates. Drivers who take longer trips often pay higher premiums due to the greater risk associated with them. 

Similarly, drivers who exceed the speed limit or use their phones while behind the wheel may also see an increase in their rates.

Insurance History

Your insurance history can also be a determining factor when it comes to auto insurance rates. If you have previously had any claims or violations, insurers may consider this when assessing the level of risk associated with insuring you. 

As such, having a good driving record and a history of paying premiums on time can help reduce your premium costs overall. Be sure to use our comparison tool below, just by entering your ZIP code, you’ll get quotes in seconds.

Gender

Gender can also be a factor in determining auto insurance rates. Generally, males between the ages of 18 and 25 pay more than females of the same age group due to their higher risk of being involved in accidents or other incidents. 

That said, some insurers may offer discounts for drivers who take additional safety measures, such as enrolling in defensive driving courses. By understanding these factors and researching various companies, you can ensure that you get the best auto insurance rates possible.

The Most Affordable Auto Insurance by Age

Auto insurance rates for drivers of different ages vary greatly. Generally, it can be difficult to find affordable auto insurance quotes for women and men young adults under the age of 25 since companies consider them a higher risk.

Alternatively, getting affordable auto insurance for seniors is easier as long as they have a clean driving record. When it comes to changes in auto insurance premiums by age, the difference between younger and older drivers can be drastic. 

The cost of auto insurance for teenagers and young adults is much higher than any other age group due to their inexperience behind the wheel and the increased risk of an accident or claim being filed. Insurance companies compensate for this heightened risk by charging higher premiums on policies written for teenagers and young adults. 

Additionally, teenage males tend to pay more than their female counterparts due to statistics showing that male drivers are more likely to be involved in accidents and violate traffic laws. 

Auto insurance premiums tend to drop significantly for drivers over 25. This is because older drivers are less likely than younger drivers to be involved in an accident or file a claim. With that said, here is a chart depicting how auto insurance rates change as you age.

Many insurance companies offer discounts and other incentives to reward responsible driving habits and good credit history, which can further reduce premiums for older drivers. 

Additionally, certain states have regulations regarding auto insurance rates based on age groups, which may limit how much insurers can charge their customers depending on their age. 

Auto insurance rates vary significantly between different ages, with younger drivers paying higher premiums due to inexperience and increased risk of accidents or claims being filed.

While discounts are available for older drivers, they are still likely to pay more than their younger counterparts. Drivers of all ages must shop around and compare rates before purchasing auto insurance to get the best possible rate. 

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States With the Most Affordable Auto Insurance

The cost of auto insurance varies drastically from state to state. Factors such as the amount of traffic an area typically experiences, the population density in a particular area, and the number of drivers with access to automobile insurance all play integral roles in determining how expensive coverage is for any given region. 

For example, states with densely populated cities tend to have higher annual rates than rural areas with less road congestion, read our “Cheap North Carolina Auto Insurance” article to see how insurance rates compare to other states. Here is a complete chart showing the different auto insurance rates by state.

Auto insurance rates can also vary depending on whether or not a state has specific laws about coverage requirements, for instance, Utah has a No-Fault policy that can increase insurance premiums, read more with our “Cheap Utah Auto Insurance” to help find cheap auto insurance in Utah. 

Some states require drivers to obtain more comprehensive policies than others, while some may offer discounts based on specific criteria like age or driving history. Insurance companies will consider these factors when calculating premiums. Thus, it’s essential to be aware of the regulations in your state. 

Other Factors to Consider When Shopping for Affordable Auto Insurance

In addition, make sure you compare apples to apples when shopping for auto insurance. In other words, ensure that each quote’s coverage and limits are comparable. 

Not all companies offer the same coverage options, so it’s important to understand what is included in each policy. Also, many companies offer discounts for motorists with a good driving record or who have taken a defensive driving course. Check the “Best Car Insurance Discounts” article to find what suits you best to reduce auto insurance premiums. 

Additionally, some insurers may require additional fees for drivers under 25 or those living in specific zip codes. 

Before signing up, research the individual company’s offerings and any extra fees associated with your policy. Lastly, consider whether you can bundle your auto insurance with another type of coverage, such as home or renters insurance, to save money on premiums. 

Through research, you can find the right auto insurance policy that best fits your needs. 

Get Affordable Auto Insurance Coverage

Finding the most cost-effective auto insurance coverage doesn’t have to be a daunting task. By understanding your coverage needs, shopping around for quotes from multiple companies, and taking advantage of available discounts, you can ensure that you get the most affordable policy for your situation. 

 

Start by determining the necessary coverage based on your risk profile and state requirements. This will help to narrow down what types of policies are available to you and make comparison shopping easier. Speaking of comparison shopping, enter your ZIP code below with our comparison tool to help you find cheap auto insurance quotes. 

Once you’ve decided on the type of auto insurance coverage desired, collect quotes from various companies and compare them. 

Be sure to include applicable discounts when calculating the final price to find the most economical solution for your specific circumstances. With some research and diligence, you can get the right amount of coverage at the lowest price.

 

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