Top Cheapest Car Insurance Companies In USA (2023)
Top Cheapest Car Insurance Companies In USA (2023)
When purchasing a car, Car insurance can help protect you from expensive, sometimes devastating surprises. . As an insured driver, you can get help paying medical bills, repairs, certain legal defense costs, and more.
ALSO, READ Top 10 Best Insurance Agencies In USA (2022)
In this article, we will be looking at the cheapest car insurance which pays for property damage and others’ medical bills from accidents you cause, because it will help you choose the one that will benefit you the most.
Here are the most affordable vehicle insurance providers overall, as well as the cheapest options for several driver types:
Cheapest Car Insurance Companies In USA (2023)
| Company | Our rating | Has usage-based insurance? | Average cost estimate |
|---|---|---|---|
| GEICO | 96% | Yes | $1,356 |
| Erie Insurance | 86% | Yes | $1,183 |
| USAA | 96% | Yes | $990 |
| Progressive | 95% | Yes | $1,397 |
| State Farm | 95% | Yes | $1,312 |
Geico: Overall Cheapest Car Insurance Company
Geico is the cheapest major auto insurance company in the nation, according to NerdWallet’s most recent analysis of minimum coverage rates. Geico’s average annual rate was $354, or about $29 per month. The company also earned a 4.5-star rating from NerdWallet, and you can read our Geico auto insurance review to learn why.
Central Insurance: Cheapest Regional Car Insurance Company
Finding affordable car insurance doesn’t mean you have to stick with large insurance companies. Central Insurance, MMG, and Secura, smaller insurers that offer coverage in multiple states, have even cheaper car insurance rates than Geico.
While availability can be limited, regional and small insurers may beat the cheapest auto insurance prices from larger carriers. Plus, they often have great customer service.
Geico: Cheapest Car Insurance After An Accident
Depending on your driving record, the most affordable car insurance company varies. The table below shows average auto insurance rates from the largest companies for drivers with a recent accident on their driving record.
Our analysis found that Geico has the lowest average rate for drivers with one at-fault accident, at $577 per year, or $48 per month.
ALSO, READ Best Car Insurance Quotes In 2022 (Updated)
Erie Insurance: Cheapest Car Insurance For Basic Coverage
We found that Erie customers pay an average of $1,183 annually for auto insurance. While that doesn’t make it the cheapest car insurance provider, it is a little below average. Erie Insurance also has a strong reputation for customer service and is a respected provider within the insurance industry.
The company ranked in the top two in the J.D. Power 2021 U.S. Auto Insurance StudySM in the Midatlantic, North Central, and Southeast regions – an indication of Erie’s solid reputation in the areas it serves.
While many drivers regard Erie as an excellent provider, not everyone will get the best rates. Erie Insurance appears to be geared more toward drivers with good credit and good driving records. Drivers with poor credit or less-than-perfect driving records may find better rates elsewhere.
However, the company does offer special discounts for safe driving, car safety equipment, bundling with other types of coverage, and paying your premium annually instead of monthly.
State Farm: Cheapest Car Insurance for Student Drivers
Students and teen drivers will likely want to look at State Farm if they are trying to find the cheapest car insurance. While the company offers solid rates across the board, its safe driving and good student discounts make it an attractive option if you’re a young driver, especially if you’re in school.
We found that the typical 35-year-old driver pays an average of $1,312 per year for State Farm insurance, but the company’s Drive Safe & Save™ discount program can help you get those rates even lower. And if you’re a student, you can earn a discount worth up to 25% of your premium for excelling academically.
State Farm is the biggest car insurance company in the country, and it holds a strong reputation within the industry. It carries an A+ rating from the BBB, and AM Best awarded it an A++, the agency’s highest possible rating for financial stability.
Top Cheapest Car Insurance Companies In USA (2023)
Geico: Cheapest Car Insurance for Senior Drivers
Male and female 60-year-olds have the lowest rates of all age groups in our study, and their annual premiums are typically lower than the national average. Seniors looking for the cheapest insurance should consider Geico, which has the overall lowest rates in our study.
On average, drivers in this group pay between $1,245 and $1,282 a year for auto insurance, depending on their gender. Geico’s rates are around 18% lower, ranging from $1,049 to $1,085 a year. It’s worth noting that USAA’s rates for 60-year-old drivers are significantly lower than both the national average and Geico’s rates. As such, individuals who are eligible may want to consider USAA car insurance first.
age rate for male drivers in that same age bracket is $3,555, which beats the national average by $1,948.
USAA: Cheapest Car Insurance for Military Families
USAA serves only military members, veterans, and their families, meaning not everyone is eligible for its coverage. But for those who are, the company is worth considering. Based on our research, USAA charges an average annual premium of $990 to cover a 35-year-old male driver, making it one of the cheapest car insurance companies we found.
USAA offers a wide range of discounts, including one discount of up to 60% for storing your vehicle. Other discounts are available to drivers who:
- Get good grades
- Own reasonably new vehicles
- maintain clean driving records
- Rack up relatively few miles each year
Progressive: Cheapest Car Insurance for High-Risk Drivers
Some of the best car insurance companies offer reduced rates to drivers with good driving records but not drivers with accidents and violations on their records. But Progressive – the nation’s third-largest car insurance company – offers reasonable rates to both groups of drivers.
ALSO, READ Easy Steps On How To Cancel Progressive Insurance Plan In The USA
If you’ve committed severe violations, such as DWI or DUI, you can still find relatively decent rates from Progressive, especially compared to some competitors. Progressive also offers usage-based insurance, which charges you based on how many miles you drive. If you work from home or don’t drive much, choosing Progressive can yield significant savings.
Progressive also offers plenty of discounts to make coverage even more affordable. Teen drivers, for example, are eligible for discounted coverage, and you can also save around 12% by insuring multiple cars with Progressive. Other discounts are available for setting up auto payments, being a homeowner, or getting a car insurance quote online.
Top Cheapest Car Insurance Companies In USA (2023)
How To Get Cheap Car Insurance
If you’re looking to save money with the cheapest possible car insurance, it’s essential to compare quotes from multiple insurers. You can use NerdWallet’s car insurance comparison tool to easily shop for cheap auto insurance online. You may find that you already have the most affordable insurance; but prices can change, so check roughly once a year.
These tips could help you get cheap auto insurance rates:
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Ask for discounts. There could be savings from car insurance discounts you’re not taking advantage of. For instance, maybe you now work from home and are driving less frequently than when you bought your policy. Mention that and you might get a low-mileage discount.
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Rethink your deductible. A higher collision and comprehensive deductible might make sense if you rarely drive or are comfortable with the financial risk. Raising your deductible means you’d owe more out of pocket if you had to file a comprehensive or collision claim. But it’s a surefire way to get cheaper car insurance.
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Know when to cut coverage. Don’t strip away coverage just for the sake of cheap auto insurance. But if you drive an older car, you can probably drop comprehensive and collision coverage. These coverage types pay out only up to your car’s current value, minus the deductible.
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Cash in on major life changes. Certain life events could translate to cheaper car insurance, so shop for quotes whenever something major changes in your life. For instance, many companies offer a lower rate for married couples or domestic partners. Or perhaps you moved to a suburb with lower accident and crime rates. Even if you moved to a more expensive area for car insurance, shopping around can help you get cheaper coverage.
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Revisit quotes after your driving record improves. Shop for cheap car insurance quotes online three to five years after any accidents, tickets, or moving violations. They may have dropped off your driving record.
The type of car you drive also affects how much you pay for auto insurance. Check out NerdWallet’s analysis of the cheapest cars to insure to see if your vehicle made the list.
Conclusion
There’s no one-size-fits-all approach when it comes to car insurance. Where you live, how you drive your vehicle and the vehicle you drive can help determine the car insurance fit for you and your pocket.
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