Cheapest Car Insurance Companies (June 2023)
Our Cheap Car Insurance Companies of 2023 list the insurers with the lowest average costs. These insurers offer low-cost policies that might make sense for a wide range of drivers. Our investigation reveals that State Farm, USAA, and Geico offer the annual rates that are, on average, the most affordable.
Based on information from ten of the largest auto insurance companies in the country, our data indicate that the national average annual rate is $1,547. Seven of the insurers in our analysis have average annual rates that are lower than the national average: Travelers, American Family, Progressive, Geico, State Farm, and USAA are the insurance companies. Only Farmers, Allstate, and AAA have sample rates that are higher than the national average.
We looked at the costs of car insurance for drivers all over the country to find the cheapest providers in each state. The premium you pay for a policy will differ because these rates are simple averages taken from representative driver profiles. It is essential to keep in mind that our data may not cover all of the states in which each company operates. The rates shown here are only meant to be compared.
Which auto insurance company offers the best value for you?
Rates for insurance are highly individualized and determined by a variety of factors. Among other factors, a person’s age, vehicle type, credit and driving histories, and location all play a significant role in determining how much they will pay for car insurance. In a nutshell, your premiums will be different from those in our rating, which are only meant to serve as a comparison.
USAA car insurance
Pros:
Rated No. 1 for customer service in our survey of the best car insurance companies
Offers coverage in all 50 states and Washington, D.C.
Cons:
Coverage only available to military members, veterans, and their families
USAA, which only sells car insurance policies to members of the U.S. military, pre-commissioned officers, veterans, and their spouses and children, is the insurance that is offered at the lowest price in our study of cheap car insurance companies. In our analysis of insurers, USAA not only has the lowest average annual rates, but it also offers the most affordable rates for drivers with low and high mileage, as well as for most other categories.
Geico, which is ranked No. 1, may provide drivers who do not have any connection to the U.S. military with the cheapest automobile insurance. 2 in our survey, or No. 2 by State Farm 3.
Geico car insurance
Pros:
Some of the lowest annual rates on average among companies in our rating
High marks for customer service, claims handling, and customer loyalty, among policyholders surveyed
A wide range of discounts available
Cons:
Above-average sample rate for drivers with a DUI compared to other insurers in our rating
Geico, with USAA out of the picture, offers the lowest rates on car insurance for drivers with clean driving records, minimum coverage requirements, and high-mileage drivers. Additionally, the company provides the lowest average rates for male teen drivers.
State Farm car insurance
Pros:
High marks for customer service from policyholders surveyed
Below-average annual premiums in many categories
Cons:
Relatively high annual rates, on average, for drivers with poor credit
Must complete policy purchase with local agent, even with online quote
For senior drivers, female teenagers, and drivers with low mileage, State Farm offers the most affordable car insurance. For motorists seeking full coverage, State Farm also offers the most affordable rates. State Farm has the lowest average rates for motorists who have a record of speeding, traffic accidents, or a DUI.
Our analysis’s rates are based on publicly available information that auto insurers submit to state regulators. The majority of the largest national insurers’ insurance rates are included.
There are numerous commonly held misconceptions regarding how auto insurance rates are determined among Americans. For instance, more than half of the drivers surveyed were unaware that a person’s credit score can affect how much they pay for auto insurance. Our Driving Propensities Overview figured out what U.S. drivers contemplate vehicle protection rates, alongside different variables that impact their driving propensities.
