Best Cheap Car Insurance [2025]: 6 Companies To Consider

Q: Is GEICO cheaper than Progressive?

In our analysis of GECIO vs. Progressive , GEICO was cheaper than Progressive for full and minimum coverage insurance. Still, your results may vary based on factors such as your driving history, where you live, your gender, your age, and even your credit history if your state allows that to be included in premium decisions.

The cost of car insurance may never feel low enough, but there are often cheaper options out there than what you might be paying now. Even if you think you're getting a sweet deal on auto insurance, it's always smart to revisit your current policy and put feelers out — meaning, get quotes and compare options — from other providers.

Shopping around is your greatest superpower as a consumer. You can take your business anywhere that offers the coverage you need, and companies know you have the right to be picky. This is why they compete for your business with low rates, discounts, and other ways to save. If nothing else, you should always aim to spend less than the average.

Among the cheapest car insurance companies, Auto-Owners, USAA, and Root are near the top. But GEICO, State Farm, and Allstate deserve a place at the table, too. For this list, I've included the cheapest car insurance for good drivers, people with incidents, and more.

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Methodology

To compile this list of the best companies for cheap car insurance, I considered average premiums for typical users above all. Beyond that, I paid close attention to the following factors:

Liability-only and full-coverage rates: While there are definitely more types of policies than just the barest coverage you can legally have (liability) and the whole nine yards (full coverage), I used these coverage types for the purposes of comparing different companies because I could access fresh data for these.
Statewide availability: For this article, I only included companies with availability in more states than not. Some companies offer lower average rates, but I decided against including options that would not be accessible to many people. For instance, while Mile Auto, Erie, and Metromile provide competitive rates, their limited state coverage was enough reason for me to exclude them from this list.
Driver types: For each insurer, I weighed the impact of different driver profiles on average rates. Because people receive insurance premiums based on factors such as their driving history, age, location, and more, rates can vary widely from person to person. That said, it can be helpful to see averages for common types of drivers.

I did not consider all car insurance companies in my research, and some of the insurers in this list are past or current FinanceBuzz partners. However, the latter played no role in my decision-making. Here are some of the cheapest car insurance companies I found.

Company name	Best for	Average monthly full coverage cost	Average monthly liability-only cost
Auto-Owners	In-person support from an agent	$67	$31
USAA	Military families	$96	$46
Root	Good (incident-free) drivers	$114	$64
GEICO	People with accidents or incidents	$114	$52
State Farm	Teens and young adults	$115	$53
Allstate	Seniors	$128	$59

Auto-Owners

Best for in-person support from an agent

Company details

AM Best: A+ (Superior)
J.D. Power claims satisfaction: 692/1,000 (study average 697)
BBB: A+
NAIC complaints: 0.46 (Private Passenger)

Auto-Owners shouldn't surprise you if you've ever received a quote from this company, as the insurer is consistently among the cheapest, no matter what kind of driving history you're working with.

The company provides average rates that are well below national averages for both liability and full-coverage auto insurance policies. For instance, Auto-Owners' average liability-only premium for drivers in their 40s is just $29 compared to an average cost of $94.

But I need to mention a few significant drawbacks of this company. For one, it only issues car insurance policies in 26 states. For another, it doesn't provide online quotes. You have to contact a local agent to get a quote, which can make it more difficult and time-consuming to compare rates with this insurer to other companies. Still, I think it's worth doing if you live near an agent, and you might see this as an advantage anyway if you like in-person support.

Pros

Exceptionally low rates across all driver types
Strong customer satisfaction and financial stability
Unique coverage options
Over 48,000 local agents

Cons

Only offers car insurance coverage in 26 states
Must work directly with local agents

Learn more in our Auto-Owners insurance review.

USAA

Best for military families

Company details

AM Best: A++ (Superior)
J.D. Power claims satisfaction: 726/1,000 (study average 697)
BBB: A+
NAIC complaints: 0.96 (Private Passenger)

If you're looking for cheap car insurance and happen to be affiliated with the military, either through a family member or your own service, you're in luck. USAA is probably the first company you should check rates with, because it offers some of the most competitive premiums across the board. And in many cases, the next-cheapest company's rates aren't even close.

To give you an example, USAA's average premium for full-coverage for drivers with incidents in their profiles is $112. The U.S. average is $244, by contrast.

USAA isn't available to everyone, as you can probably guess. If you're not involved with the military directly or indirectly, there's, unfortunately, no loophole you can use to get a policy with this insurer.

Pros

Exceptionally low rates across all driver types
Offers policies in all 50 states
Military-specific discounts and benefits

Cons

Only available to military members and their families
Fewer coverage options than other large companies

Learn more in our USAA car insurance review.

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GEICO

The insurance savings you expect.

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Average Rate:

$ $$ /mo

Drivers who switch their auto insurance and save with State Farm save $764 on average!

Root

Best for good drivers

Company details

AM Best: Not rated
J.D. Power claims satisfaction: Not rated
BBB: A-
NAIC complaints: 1.93 (Private Passenger)

Root sets itself apart from other affordable car insurance companies for strongly favoring good drivers and not being shy about it. With its tagline "car insurance for good drivers," it should come as no surprise that the insurer's best rates are for people with the best records behind the wheel. That means if you've been accident-free for a while and never get tickets, Root could be one of your cheapest options.

This insurer is an especially good choice for full-coverage policies because its rates are more impressive compared to national averages. Its liability-only coverage is still worth looking into, though.

Somewhat weirdly, Root is also not a bad choice for teens, with an average liability-only premium of $86 for this demographic. It's pretty rare for a company to favor both good drivers and teens, as the two groups are on opposite sides of the risk spectrum.

Pros

Low rates for liability-only and full-coverage car insurance
Great safe driving program
Good range of coverage options and specialty policies

Cons

Above-average share of complaints with the NAIC
Not rated by AM Best or J.D. Power
Higher rates for people with accidents or incidents
Lacks many discounts provided by other companies

Learn more in our Root car insurance review.

GEICO

Best for people with accidents or incidents

Company details

AM Best: A++ (Superior)
J.D. Power claims satisfaction: 692/1,000 (study average 697)
BBB: A+
NAIC complaints: 0.75 (Private Passenger)

GEICO is a good deal kinder to people with imperfect driving histories than other companies, which is why I would recommend this one most to you if your record includes a ticket or two. If you have an incident in your driving history, the average rate with this company is $134 for full coverage and $61 for liability coverage.

Those with poor credit may also find a better price here than with GEICO's competitors. Its average rate for liability-only coverage for people with poor credit is $59, while the national average for this driver is $123.

GEICO offers the standard coverage required by most states, as well as several additional coverage options like RV and boat insurance and rental reimbursement.

Pros

Low rates for liability-only and full-coverage car insurance
Strong ratings for financial stability and low complaint index
Many types of additional or specialty coverage
More student discounts than many companies

Cons

Very limited network of insurance agents
Not known for having the best customer support via phone

Learn more in our GEICO car insurance review.

Pro tip

If you've had issues with accidents and incidents in the past, it's better to be honest with yourself about your profile's imperfections — and search for insurers accordingly — than it is to expect the best possible rates from whichever company you choose.

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State Farm

Best for teens and young adults

Company details

AM Best: A++ (Superior)
J.D. Power claims satisfaction: 710/1,000 (study average 697)
BBB: F
NAIC complaints: 0.84 (Private Passenger)

State Farm is worthy of just about any list of affordable auto insurance companies. Many people enjoy cheap car insurance with State Farm, including perfect and less-than-perfect drivers. Its average rates are excellent for senior drivers in their 60s or 70s, but I want to recommend this insurer specifically to teens and young adults for a couple of reasons.

One, average rates for these demographics are more than respectable. For full coverage, they're $212 for teens and $148 for 20-somethings; for liability-only, they're $98 for teens and $98 for drivers in their 20s. By comparison, teens pay an average rate of $366 for full-coverage car insurance.

Another reason I like State Farm for the younger crowd is its Steer Clear program, which promotes safe driving for drivers under 25 with training and potential discounts. This isn't a common perk.

Pros

Issues car insurance policies in 48 states
Unique Steer Clear safe-driving program for drivers under 25
More discounts than many companies, especially big ones

Cons

Doesn't offer car insurance in Massachusetts or Rhode Island
Fewer coverage options and policy add-ons than some large insurers

Learn more in our State Farm review.

Allstate

Best for seniors

Company details

AM Best: A+ (Superior)
J.D. Power claims satisfaction: 691/1,000 (study average 697)
BBB: A+
NAIC complaints: 1.02 (Private Passenger)

Allstate can lag a little behind other car insurance companies when you're just looking for the cheapest coverage possible, but it's still well worth considering for below-average rates. Its premiums, while slightly higher than those of companies like USAA, GEICO, and State Farm, are still comfortably below national averages and often beat Progressive and Nationwide.

Another reason to give Allstate a chance is that the insurer stands out from other companies for the benefits it provides to seniors. On top of extremely low premiums for older drivers, think 50 and up, Allstate offers stand-out benefits like discounts on roadside assistance for AARP members and defensive driving discounts in certain states.

Allstate also offers the potential to qualify for other senior discounts, as well as a pay-per-mile program — called Milewise — that may help seniors who spend little time on the road save money on car insurance.

Pros

Offers car insurance in all 50 states
Very wide range of policy options and coverage
Provides pay-per-mile insurance program (Milewise)

Cons

Lower overall claims satisfaction than some other companies
Milewise not available in every state
Higher average rates for teens and drivers with DUIs

Learn more in our Allstate auto insurance review.

How to find the cheapest car insurance rates

Choosing the best car insurance companies is a good place to start when you're on the hunt for low rates, but the cheapest option for one person won't always be the cheapest for another. Here are my recommendations for finding lower car insurance rates:

Get quotes from at least three different insurers (ideally more). Setting aside an hour to search for car insurance and compare quotes might feel frustrating, but think of it this way: If taking the time to research your options and find the lowest rates you can qualify for helps you to save even $100 or more each year, which is definitely possible, that's not a bad hourly rate.
Try out a few different coverage limits and deductibles you might be comfortable with. You're not stuck with your current coverage and policies. Test out a few combinations of coverages you could see yourself feeling good about when you're comparing companies, and don't just go with the exact policy you already have.
Check what discounts you might qualify for. Always do this before, not after, signing up for a new policy.

Tips for comparing car insurance quotes

Provide as much information as you can

Be honest, be specific, and be thorough at this stage. It's better to take an extra couple of minutes filling out your information with a company you're interested in than it is to be surprised by rates later on. Your quoted rates won't be exactly the same as rates you're offered, but they should give you a ballpark.

Check your rates against averages

It can be helpful to know what average rates people like you pay for car insurance to understand how your quotes compare. If your premiums are a lot higher than you might expect based on this, this could be a sign that you entered something incorrectly for your policy, your coverage needs to be adjusted, or insurance just costs more in your area.

Good to know

All of our car insurance reviews provide average auto insurance rates for a range of driver profiles.

Don't settle (but plan ahead)

Whether you're thinking you're going to stick with your current insurer or switch car insurance companies], you don't have to settle for the first rates you see. Start looking for coverage a few weeks before your policy is set to renew so you don't feel the need to scramble into a policy you don't love. Some insurers even offer discounts for obtaining coverage before your policy expires.

FAQs

Who actually has the cheapest auto insurance?

Auto insurance costs vary based on several factors, including your age, location, gender, and the type of car you drive. Although you may find a great rate from one company based on your driving history and location, someone else may find a better rate with another company.

Compare multiple quotes to help you find the best car insurance to fit your needs.

How do you get the cheapest car insurance?

You can get the most affordable car insurance policy by searching for discounts, including multi-policy, bundling, driver education, and paying your insurance premium in full before it's due. Improving your credit score and comparing multiple quotes could also help you get cheaper car insurance.

You could also consider reducing your coverage amount, raising your deductible, and comparing insurance costs before you buy a car to help you get the lowest car insurance price possible.

Is GEICO cheaper than Progressive?

In our analysis of GECIO vs. Progressive, GEICO was cheaper than Progressive for full and minimum coverage insurance. Still, your results may vary based on factors such as your driving history, where you live, your gender, your age, and even your credit history if your state allows that to be included in premium decisions.

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Bottom line

Searching for the best cheap car insurance can take a bit of time and effort, but believe me — it's worth it. Auto-Owners, USAA, Root, GEICO, State Farm, and Allstate are auto insurance companies you can rely on for low rates on liability-only and/or full-coverage policies, so this list is a good place to start when you're ready to get quotes.

Request multiple quotes to ensure you're getting the most competitive car insurance rates available, tailored to your specific needs and your state's requirements. Don't be afraid to shop around to find the best rates and coverage for you.

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