10 Cheapest Car Insurance Companies Ranked: Worst To Best

Stop overpaying for coverage. We analyzed the cheapest car insurance rates to find the top carriers for your budget. Read more.

10 Cheapest Car Insurance Companies Ranked: Worst to Best

Finding the cheapest car insurance is often compared to solving a complex puzzle. If you turn to the internet and type in “best auto rates,” you are immediately bombarded with conflicting answers. One source says Company A is the holy grail of savings, while another claims Company B is the undisputed king.

Why the confusion? Because insurance isn’t one-size-fits-all. A carrier that offers the cheapest car insurance in Texas might be the most expensive option in Michigan.

In this deep-dive guide, we have analyzed data from major financial institutions, compared quotes from reputable sources like Bankrate and NerdWallet, and utilized insider knowledge from independent agency data to bring you the truth. We aren’t just looking at who promises the lowest rate; we are looking at who actually delivers value when you need to file a claim.

Below, we rank the major players from the bottom of the top 10 to the absolute number one pick for the cheapest car insurance on the market today.

The “It Depends” Factor: Why Rates Vary

Before we reveal the rankings, it is crucial to understand why your neighbor might pay half of what you pay. Insurance companies use proprietary algorithms to determine risk.

Location: This is arguably the biggest factor. Drivers in Michigan or Louisiana face vastly different premiums than drivers in Ohio or Maine due to state laws and accident rates.
Driver Profile: A teenage driver, a driver with a speeding ticket, and a senior citizen with a perfect record are all shopping in different marketplaces.
Bundling: Combining home and auto insurance changes the math entirely. Some companies are mediocre at auto-only policies but become the cheapest car insurance option when you add a home policy.

Now, let’s dive into the rankings based on competitive pricing, value, and current market trends.

10. Allstate: The Value Play

Coming in at number ten is Allstate. You will see Allstate listed on almost every major review site, often touted as a top contender. However, when strictly hunting for the cheapest car insurance, Allstate often struggles to take the gold medal.

The Good

Allstate is a fantastic company with a solid reputation. They handle claims well, they have a massive network of agents, and they offer high-quality coverage. If your goal is value and peace of mind, they are a strong contender. They focus heavily on ensuring you are paid correctly and treated well during a claim.

The Bad

They are rarely the absolute cheapest option. Allstate focuses on value over rock-bottom pricing. While their “Drivewise” telematics program can offer discounts, their base rates tend to be higher than the more aggressive competitors on this list. They are excellent for homeowners in specific states, but if you are looking for an auto-only policy on a tight budget, you might find lower premiums elsewhere.

9. Erie Insurance: The Regional Powerhouse

Erie Insurance lands at number nine. Erie is often described as a “bland” company, but in the insurance world, bland is often good. It means they are stable, reliable, and consistent.

Who is Erie For?

Erie is a great “backup” option. If you have quoted the big names and haven’t found the cheapest car insurance yet, Erie is the next logical stop. They offer good products and solid customer service.

The Catch

Erie is incredibly picky. They do not favor high-risk drivers. If you have tickets, accidents, or a lapse in coverage, Erie will likely price themselves out or deny coverage. However, if you have a clean record and live in their coverage area, they can surprisingly undercut the national giants.

8. American Family Insurance: The Mid-Size Contender

American Family (AmFam) falls into the eighth slot. Much like Erie, they are a mid-sized company that offers a mediocre (average) product—and we mean that in the best way possible. They don’t have massive scandals, but they also don’t have the flashy, aggressive marketing of a Geico or Progressive.

Why Consider American Family?

They are a solid “Plan B.” They used to have a unique partnership selling through Costco, which gave them some visibility. In the last decade, they have backed off on aggressive marketing, but they remain a customer-focused company. If you are struggling to find the cheapest car insurance with the top 5 carriers, obtaining a quote from American Family is a smart move. They rarely receive massive complaints and maintain a steady, reliable service record.

7. State Farm: The Giant of the Industry

Number seven is the largest insurer in the nation: State Farm. You cannot watch a sporting event without seeing Jake from State Farm. Their branding is impeccable, trying to build an ecosystem similar to Apple—where you simply belong to the State Farm family.

The Pricing Paradox

Despite their size, State Farm is technically not the cheapest car insurance provider for the average shopper. They invest heavily in branding and local agents, which adds to their overhead. However, in specific states (like parts of the Midwest), they can be untouchable.

When State Farm Wins

The “Clean” Driver: State Farm prefers low-risk drivers.
Telematics: Their “Drive Safe & Save” program is one of the biggest discount drivers in the industry. If you are willing to let them track your driving, you can see significant rate reductions.
Availability: They are everywhere. If you value walking into a local office, State Farm wins.

However, for modern tech features like warranties, vanishing deductibles, or aggressive pricing for high-risk drivers, they often lag behind the top contenders.

6. Travelers: The Bundling Expert

Travelers comes in at number six. This company is a sleeping giant that often sits in the top half of competitive rating charts.

The Bundling Advantage

Travelers shines when you combine home and auto insurance. They have fewer restrictions on zip codes compared to some competitors, though they are tightening up in coastal areas due to climate risks.

Pricing Trends

Travelers is dynamic. They are constantly adjusting rates. We have seen policies decrease in price upon renewal, which is rare in the current economy. If you are looking for the cheapest car insurance that includes a home policy, Travelers must be on your quote list. They are large enough to spread risk, meaning a massive wildfire in California won’t spike your rates in Ohio as drastically as it might with a smaller regional carrier.

5. Geico: The Low-Cost Leader

Now we enter the top five, and this is where the battle for the cheapest car insurance truly heats up. Geico is currently crushing the market.

The Shift to Independent Agents

Historically, Geico was direct-to-consumer only. Recently, they opened their doors to independent agents. This is a game-changer. It allows agents to compare Geico directly against Progressive and Nationwide. Because Geico spends less on marketing by using agents, they can pass those savings to you.

Pros:

High-Risk Friendly: Geico is much more forgiving of tickets and accidents than State Farm or Erie.
Tech-Forward: Their app is excellent, and they offer unique add-ons like mechanical breakdown insurance (similar to a warranty).
Price: In states like Texas, Virginia, and Michigan, Geico is aggressively undercutting competitors.

Cons:

Home Insurance: Geico does not write their own home insurance; they broker it to third parties. This can make bundling clunky.
Basic Service: It is a “no-frills” product. You get what you pay for.

If you need a bare-bones, liability-only policy, Geico is often the cheapest car insurance option, with rates averaging as low as 40-60/month for basic coverage in good areas.

4. Amica (AMA): The Silent Competitor

Ranked fourth is Amica (referred to as AMA in some contexts). Think of them as similar to Farmers Insurance—very good at everything, but not necessarily excellent at one specific thing.

The Average Excellence

Amica doesn’t generate a lot of noise. You won’t see thousands of angry tweets about them because their customer service is generally superior to the budget carriers. They fit into the “cheapest car insurance” list because, in the right zip code, their algorithms can offer incredibly low rates for preferred drivers. They are a company you check when you want a balance of decent price and above-average human support.

3. Progressive: The Aggressive Innovator

Progressive lands at number three, though they arguably fight for the number one spot depending on your driving history. Progressive wants all the business—good drivers, bad drivers, boats, motorcycles, and RVs.

Why They Are Cheap?

Progressive offers massive discounts for:

Paying in Full: This can drop your rate significantly.
Shopping Early: Getting a quote 7 days before your current policy expires earns you a discount.
Paperless/Auto-pay: Standard but effective stackable discounts.

Feature Rich

Progressive is trying to out-feature Geico. They offer a “Savings Bank” deductible (your deductible drops for every claim-free term) and are rolling out warranty-style coverages.

The Verdict

If you have a ticket, a DUI, or a lapse in coverage, Progressive is likely your best bet for the cheapest car insurance. They price themselves a bit higher for premium homeowners, but for the “standard” driver, they are a powerhouse.

2. USAA: The Gold Standard (With a Catch)

USAA takes the silver medal. For years, USAA was untouchable regarding price and service. While their service scores have dipped slightly in recent years, they remain a top-tier option.

The Exclusivity Factor

To qualify for USAA, you must be active military, a veteran, or a direct family member of a USAA member. This exclusivity allows them to keep rates low because the “risk pool” is generally more responsible.

Is it the Cheapest?

Often, yes. However, independent agents are beating USAA prices more frequently now than in the past. If you qualify, you absolutely must get a quote. But do not assume they are the cheapest car insurance without comparing them against the open market.

1. Nationwide: The Current Champion

Surprising many, Nationwide takes the top spot for the cheapest car insurance in the current market cycle.

Why Nationwide Wins?

Nationwide has recently “opened the doors” after a period of being restrictive. They are aggressively seeking new business, which means their rates are currently crushing the competition.

The Bundle King: Nationwide’s home and auto bundles are incredibly competitive.
Telematics: Their “SmartRide” program offers great discounts.
Coverage Options: They offer high-end features like vanishing deductibles and accident forgiveness, but at a price point that rivals the budget carriers.

The Caveat

Not every agent can quote Nationwide. They are selective about which agencies they work with. You need to find an independent agent who has access to Nationwide to unlock these rates. If you can find one, you are likely looking at the cheapest car insurance available for a standard to preferred driver profile.

Analyzing the Numbers: What Will You Pay?

It is easy to list companies, but let’s look at the data. Based on recent market research and quote aggregators, here is what the cheapest car insurance looks like in dollars and cents for 2025.

Full Coverage (Standard Adult Driver)

Full coverage generally includes Comprehensive and Collision with a $500 or $1,000 deductible, plus Liability limits of 100/300/100.

USAA: ~$140 – $150 per month.
Travelers: ~$160 per month.
Geico: ~$162 per month (Can drop to $120 for low-risk profiles).
Progressive: ~$160 – $200 per month (Drops significantly if paid in full).
State Farm: ~$220+ per month (Value-focused).

Note: These averages fluctuate wildly based on your credit score and zip code.

Basic Liability (The Bare Minimum)

If you are driving an older car and just need to be legal to drive, here is who offers the cheapest car insurance for liability only:

Geico: ~$40 – $50 per month.
Travelers: ~$45 – $55 per month.
State Farm: ~$46 – $60 per month.
USAA: ~$30 – $50 per month (If eligible).

Warning: Be wary of ads promising insurance for $19/month. These are often data-harvesting leads or extremely limited policies that may not meet your state’s requirements or your personal financial protection needs.

The “Full Coverage” Myth

In the transcript, the expert mentions that “full coverage is a made-up word.” This is a crucial concept for anyone looking for the cheapest car insurance.

“Full Coverage” simply refers to having both Liability (damage you do to others) and Physical Damage coverage (damage to your own car). However, it does not automatically include:

Rental Car Reimbursement: If your car is in the shop, you walk.
Towing/Roadside: If you break down, you pay the tow truck.
Gap Insurance: If you owe more than the car is worth, you pay the difference.

When comparing quotes to find the cheapest car insurance, make sure you are comparing apples to apples. A quote from Geico might look cheaper than Nationwide, but if Nationwide included Towing and Rental and Geico didn’t, the Geico policy might actually be more expensive in the long run if you have an accident.

How to Actually Get the Cheapest Rate?

Knowing the companies is half the battle. Executing the strategy is the other half. Here is how to secure the cheapest car insurance possible:

1. Use an Independent Agent

This was the most emphasized tip in our research. Captive agents (like a State Farm office) can only sell one brand. An independent agent can take your information once and run it through Nationwide, Progressive, Travelers, Safeco, and Geico simultaneously.

Benefit: They do the legwork.
Cost: It costs you nothing (the insurance company pays them).
Result: You get a true comparison of the cheapest car insurance options without receiving 50 spam calls.

2. Check Your Discounts

You might be missing out on easy savings.

Multi-Policy: Bundle Renters or Homeowners with Auto.
Telematics: Apps like Snapshot (Progressive) or Drivewise (Allstate) can save you up to 30%.
Payment Method: Paying in full for 6 months often saves nearly one month’s worth of premiums.

3. Re-shop Every 2 Years

Insurance companies often “creep” rates up. The company that was the cheapest car insurance for you two years ago might now be overpriced. As mentioned regarding Nationwide, companies cycle through phases of being competitive and being expensive. You must stay agile.

Frequently Asked Questions

Which company has the absolute cheapest car insurance?

For minimum liability coverage, Geico is often the cheapest car insurance provider on average. However, for full coverage, Nationwide and Progressive are currently extremely competitive depending on your state.

Is USAA always cheaper than Geico?

Not always. While USAA offers excellent rates for military members, Geico has become very aggressive with pricing and can sometimes beat USAA, especially for drivers with clean records who don’t require high-tier customer service.

Why is my car insurance quote so high?

Rates are determined by risk. If you are young, live in a high-traffic or high-crime zip code, or have a poor credit score, your rates will be higher. The cheapest car insurance for a high-risk driver is usually found with Progressive or The General, rather than standard carriers like State Farm.

Does bundling really save money?

Yes. Bundling home and auto can save you anywhere from 10% to 25%. Companies like Nationwide and Travelers heavily discount the auto portion when you bring your home policy to them, often making them the cheapest car insurance option overall.

Is “Full Coverage” worth it for an old car?

If your car is worth less than $3,000, paying for comprehensive and collision might cost you more in premiums over a few years than the car is worth. Dropping to liability-only is the fastest way to get the cheapest car insurance possible.

Conclusion: Who is the Winner?

So, who has the cheapest car insurance?

If you want a quick answer: Nationwide is currently the top contender for the best overall value and price, particularly if you are bundling. USAA remains the king for military families. Progressive is the go-to for drivers with less-than-perfect records, and Geico is the heavyweight champion for bare-bones, low-cost policies.

However, the real winner is the educated consumer. By understanding that “cheapest” is relative to your location and driving history, and by utilizing independent agents to shop the market for you, you can unlock rates that most people never see.

Don’t settle for the first quote you see on TV. The market is fighting for your business right now—make them earn it by finding the absolute cheapest car insurance that doesn’t sacrifice the coverage you need.