How Do I Get Cheap Car Insurance?
Finding the cheapest car insurance starts with comparing quotes from several different companies.
Once you find insurance providers that are available in your area and suit your needs, start looking into what discounts they offer to drive the rate cost down even more.
How do I find cheap car insurance?
How do I find cheap car insurance?Going online is an ideal starting point for finding the cheapest auto insurance. Here are some simple tips once you’re there:
- Compare car insurance quotes: Finding the cheapest car insurance starts with comparing quotes from many companies. Make sure that you’re using the same set of coverage limits for each quote to get an accurate comparison.
- Take advantage of discounts: Car insurance policy offerings tend to be similar, regardless of company, offering discounts to stay competitive. Ask about what discounts you qualify for to reduce your annual premium.
- Bundle: If you can bundle a car insurance policy with your renters, home or life insurance policy, you could save money on both policies.
What are the cheapest car insurance companies?
Of the top four companies in the country with the highest market shares in the auto insurance industry, State Farm comes out on top with an annual rate of $1,505 full-coverage car insurance, or $125 a month.
Cheapest car insurance companies
| Company | Average rate | Market share* |
|---|---|---|
| State Farm | $1,505 | 16.9% |
| GEICO | $1,942 | 13.8% |
| Progressive | $2,040 | 14.1% |
| Allstate | $2,620 | 10.7% |
Rates are for full-coverage car insurance for a 30-year-old male with a clean driving record.
*Source: iii.org
Car insurance companies look at many different factors before offering you a quote — these include:
- Your car’s make and model
- ZIP code
- Insurance claim history
- Age
- Policy coverage limits and the deductible amount you choose
Another factor to consider when looking for cheap car insurance quotes is that insurers apply different risk levels to these factors when calculating your premium.
For example, one company may consider the age of your car to be a more significant risk than another company would. This makes it even more important to compare quotes.
What company has the cheapest car insurance near me?
Of the overall list of car insurance providers underwriting policies in the country right now, MMG has the lowest average rate for full-coverage insurance, at $902 a year. However, MMG only underwrites insurance policies in eight states on the East Coast.
Make sure to see if an insurer sells policies in your area before doing too deep a dive into researching them.
Cheapest car insurance companies overall
| Company | Average annual rate |
|---|---|
| MMG | $902 |
| Concord | $977 |
| Texas Farm Bureau | $1,036 |
| Erie | $1,289 |
| Island Insurance | $1,319 |
| Acuity | $1,361 |
| Hanover | $1,372 |
| Safety | $1,392 |
| Westfield | $1,481 |
| Pemco | $1,483 |
| State Farm | $1,505 |
| Mercury | $1,596 |
| Country Financial | $1,600 |
| Umialik | $1,602 |
| Arbella | $1,629 |
| Co-Op | $1,635 |
| Grange | $1,638 |
| Auto-Owners | $1,690 |
| American Family | $1,920 |
| Shelter | $1,927 |
| Farm Bureau | $1,939 |
| GEICO | $1,942 |
| Travelers | $1,971 |
| Grinnell Mutual | $2,015 |
| Progressive | $2,040 |
| Plymouth Rock | $2,236 |
| Nationwide | $2,271 |
| Amica | $2,548 |
| Allstate | $2,620 |
| The Hartford | $2,688 |
| UAIC | $2,886 |
| Nodak | $2,917 |
| Safeway | $3,080 |
| Farmers | $3,091 |
| NJM | $3,382 |
| AAA | $3,835 |
| USAA* | $1,207 |
Rates are for full-coverage car insurance for a 30-year-old male with a clean driving record.
*USAA is available only for military members and their families.
How much does car insurance cost in my state?
Below is a table showing the average rate of full-coverage car insurance in all 50 states and the District of Columbia.
Car insurance rate by state
| State | Annual rate |
|---|---|
| Alabama | $1,979 |
| Alaska | $1,635 |
| Arizona | $2,683 |
| Arkansas | $1,879 |
| California | $1,867 |
| Colorado | $2,542 |
| Connecticut | $2,346 |
| Delaware | $2,482 |
| Florida | $2,990 |
| Georgia | $1,832 |
| Hawaii | $1,643 |
| Idaho | $1,227 |
| Illinois | $2,109 |
| Indiana | $1,511 |
| Iowa | $1,663 |
| Kansas | $1,991 |
| Kentucky | $2,295 |
| Louisiana | $2,719 |
| Maine | $1,100 |
| Maryland | $2,051 |
| Massachusetts | $2,068 |
| Michigan | $4,638 |
| Minnesota | $1,884 |
| Mississippi | $1,796 |
| Missouri | $1,908 |
| Montana | $2,174 |
| Nebraska | $1,909 |
| Nevada | $2,958 |
| New Hampshire | $1,146 |
| New Jersey | $2,236 |
| New Mexico | $1,953 |
| New York | $2,030 |
| North Carolina | $1,305 |
| North Dakota | $1,858 |
| Ohio | $1,329 |
| Oklahoma | $2,119 |
| Oregon | $2,115 |
| Pennsylvania | $1,861 |
| Rhode Island | $2,631 |
| South Carolina | $1,808 |
| South Dakota | $2,016 |
| Tennessee | $1,554 |
| Texas | $1,833 |
| Utah | $2,261 |
| Vermont | $1,232 |
| Virginia | $2,110 |
| Washington | $1,534 |
| Washington DC | $2,082 |
| West Virginia | $1,701 |
| Wisconsin | $1,540 |
| Wyoming | $1,437 |
Rates are for full-coverage car insurance for a 30-year-old male with a clean driving record.
The cost of car insurance in your state depends on many factors. Take Michigan, for example, which has the highest average rate for full-coverage car insurance, at $4,638 a year. This is 120% higher than the national average rate of $1,984.
Part of the reason for this is that Michigan has high liability insurance requirements for drivers. Other causes include the 25.5% of Michigan’s drivers who don’t have car insurance, according to iii.org — this increases rates for everyone else in the state. States with histories of extreme weather tend to see higher rates as well.
Who has the cheapest car insurance rates for young drivers?
State Farm also has the most affordable car insurance rates for new drivers, with an average annual rate of $1,835 for minimum liability insurance. GEICO has the second-cheapest rate of $2,050.
Cheapest car insurance for teen drivers
| Company | Average rate |
|---|---|
| State Farm | $1,835 |
| GEICO | $2,050 |
| Progressive | $3,193 |
| Allstate | $3,411 |
Rates are for liability car insurance for an 18-year-old male with a clean driving record.
Due to their lack of experience driving, teen drivers are considered the highest-risk group of any age demographic. Fortunately, your rates will drop over time if you keep a clean driving record.
If you’re the parent of a teen driver and are trying to find cheap car insurance for them, consider adding them to your current policy. Your rates will increase overall, but will still be more affordable than if you and them had separate policies.
Where do I find the cheapest car insurance after an infraction or accident?
Again, State Farm has the cheapest average rates for full-coverage car insurance after a speeding ticket or accident, but Progressive has the cheapest rate after a DUI. Here are the details:
Who has the cheapest car insurance after a speeding ticket?
If you’re looking for a car insurance policy with a ticket on your record, State Farm has the cheapest rate of $1,635 a month for full coverage. GEICO is the next most affordable at $2,499 a year.
Cheapest car insurance after a ticket
| Company | Average annual rate |
|---|---|
| State Farm | $1,635 |
| GEICO | $2,499 |
| Progressive | $2,615 |
| Allstate | $3,087 |
Rates are for full-coverage car insurance for a 30-year-old male with one ticket on their driving record.
A speeding ticket will stay on your record for several years, with the specific amount of time dependent on what state you live in. Expect to pay increased rates until the ticket drops off.
What car insurance company is the cheapest car after an accident?
State Farm has the lowest rate for auto insurance after an accident, with an average rate for full coverage of $1,863 a year. Progressive is the next cheapest at $3,037 a year.
Cheapest car insurance after an accident
| Company | Average annual rate |
|---|---|
| State Farm | $1,863 |
| Progressive | $3,037 |
| GEICO | $3,350 |
| Allstate | $4,145 |
Rates are for full-coverage car insurance for a 30-year-old male with one accident on their driving record.
Where do I get cheap car insurance after a DUI?
If you have a DUI or DWI on your record, Progressive is your cheapest option at $2,556 a year. Allstate has the next lowest rate at $3,891 a year.
Cheapest car insurance with a DUI
| Company | Average annual rate |
|---|---|
| Progressive | $2,556 |
| Allstate | $3,891 |
| State Farm | $4,418 |
| GEICO | $4,596 |
Rates are for full-coverage car insurance for a 30-year-old male with one DUI on their driving record.
A DUI will definitely raise your car insurance rates. Other penalties often include fines, jail time, and license suspension.
Auto insurance companies consider drivers with DUIs to be very high risk, and charge them much higher rates to offset the risk.
In a worst-case scenario, you may see your policy canceled and have difficulty finding another provider. In this case, contact your state’s insurance commissioner. Most states have a “last resort” program to ensure drivers can get the minimum mandatory liability insurance.
Where do I get cheap car insurance if I have bad credit?
If you have a low credit rating, Progressive has the cheapest average rate, $2,556 a year. Allstate is the second option at $3,891 a year.
Cheapest car insurance with poor credit
| Company | Average annual rate |
|---|---|
| Progressive | $2,556 |
| Allstate | $3,891 |
| State Farm | $4,418 |
| GEICO | $4,596 |
Rates are for full-coverage car insurance for a 30-year-old male with a poor credit rating.
Car insurance providers consider your credit score when calculating your quote. They’ve decided there’s a correlation between your credit rating and the chances of you filing a claim. However, this practice is considered controversial and has been prohibited in some states.
Methodology
Unless stated otherwise, we used thousands of car insurance quotes from across the country for a 30-year-old man with good credit and no tickets, accidents or DUIs driving a 2015 Honda Civic EX.
The following coverage limits were used:
- Bodily injury liability: 50,000 per person, $100,000 per accident
- Property damage liability: $25,000
- Uninsured motorist: $50,000 per person, $100,000 per accident, where required by law
- Personal injury protection: minimum limits, where required by law
- Collision: $500 deductible
- Comprehensive $500 deductible