When it comes to finding affordable car insurance, Auto-Owners, State Farm, and GEICO lead the pack with some of the most competitive rates. Whether you’re looking for basic liability coverage or full coverage, these companies consistently offer policies that are both budget-friendly and comprehensive.
Car insurance costs are indeed climbing higher than ever. Rates surged by 24% in 2023, and Quote Nest predicts another 7% increase in 2024.
The current national average for full-coverage car insurance is $2,531 per year, pushing more drivers to search for affordable alternatives. Some drivers manage costs by seeking discounts, raising their deductibles, or switching to liability-only coverage, which has a lower national average of $1,252 per year.
While every state, except New Hampshire, requires drivers to carry some level of coverage, there are still ways to find lower rates. By comparing car insurance quotes, you can discover that many national and regional insurers offer competitive options to help you save.
Top 10 Most Affordable Car Insurance Providers
Your ideal low-cost car insurance policy will depend on multiple factors, including your vehicle type, driving history, and age. However, some insurers consistently offer significantly lower rates than others, making them top contenders when you’re comparing affordable coverage options.
Top Affordable Car Insurance Options for 2024
When searching for the most budget-friendly car insurance, affordability is likely your top concern. However, that doesn’t mean you need to compromise on quality. Using Quote Nest’s unique scoring system and real-time analysis of insurance rates, you can find the best deals from highly rated insurers.
While our review focuses on liability-only rates, as they are the most affordable, these insurance providers also excel in offering discounts and great customer service. Since insurance rates change over time due to various factors, it’s important to compare quotes annually to save money when renewing your policy.
How to Secure the Lowest Car Insurance Rates
There are several effective ways to lower your car insurance rates. Begin with the strategies outlined below to start saving:
Compare Car Insurance Rates
Potential savings: 30%
Effort: Very low
Shopping around for quotes from different insurers can help you find the best coverage based on your driving habits, credit history, and lifestyle. Comparing rates regularly ensures you’re getting the best deal.
Apply for Discounts
Potential savings: 2%–12%
Effort: Low
Many insurers offer discounts for being a safe driver, good student, or bundling home and auto policies. Make sure to ask about available discounts that could significantly reduce your premium.
Maintain a Clean Driving Record
Potential savings: 34%
Effort: Moderate
By practicing safe driving habits—using your seatbelt, avoiding distractions, and driving responsibly—you can keep your record clean and qualify for lower rates.
Adjust Your Coverage
Potential savings: 51%
Effort: Moderate
If your vehicle is paid off, switching from full coverage to liability-only can drastically lower your premiums. You might also consider lowering your liability coverage to state-minimum limits if you’re looking to cut costs.
Install Safety Features
Potential savings: 3%–40%
Effort: Moderate
Equipping your car with safety features like anti-theft systems and anti-lock brakes can lead to discounts. Many insurers offer savings for drivers with vehicles that include these features.
Consider Usage-Based Insurance
Potential savings: 34%
Effort: Moderate
For drivers who don’t log many miles, usage-based policies, such as pay-as-you-go or pay-per-mile insurance, can be an affordable alternative.
Improve or Maintain Good Credit
Potential savings: 9%–45%
Effort: High
Paying off bills on time and maintaining a low credit card balance can improve your credit score. Insurers often use credit scores to determine rates, so better credit can result in lower premiums.
What Are the Risks of Opting for the Cheapest Car Insurance?
The biggest risk of choosing the lowest-priced car insurance is potentially inadequate coverage. Liability-only insurance covers damages and injuries to others in accidents you cause but leaves your own vehicle unprotected. In the event of an accident, you’ll be responsible for the full cost of repairing or replacing your vehicle.
State-minimum coverage may not offer enough protection if an accident leads to significant damages or injuries. Additionally, drivers who lease or finance their cars are usually required to carry full coverage, as lenders need more than just liability insurance.
Expert Advice
Mallory Mooney, Director of Sales and Service
“It’s important to consider more than just the lowest rate. Ensure your insurer has the financial stability to pay claims and maintain steady rates that won’t drastically increase at renewal. In many industries, you get what you pay for, and insurance is no exception.”
Cheapest Car Insurance by State
Car insurance rates vary widely based on location. Factors such as population density, weather conditions, vehicle theft rates, and claims filed by other drivers all influence the cost. Below are the average monthly liability-only quotes from the cheapest insurers in each state:
Most Affordable Insurers for Drivers with Incidents
Having an incident on your driving record can significantly increase your insurance premium, as insurers view these as indicators of future risk. However, some insurers are more lenient with certain incidents than others. By comparing quotes, you can find the best policy for your situation.
Many of the cheapest insurers also offer competitive rates for drivers with incidents due to their lower base rates. Additionally, discounts (which are not always reflected in quoted amounts) can further reduce your premium.
The most affordable national insurer for drivers with an incident is Auto-Owners, offering average monthly liability-only quotes of:
- $42 for drivers with a speeding ticket
- $44 for drivers with an at-fault accident
- $58 for drivers with a DUI
Cheapest Insurers for Drivers with Speeding Tickets
Speeding tickets can result in higher insurance premiums, especially when your policy is up for renewal. Since violations stay on your record for several years, they can impact your rates long after the ticket is paid. Comparing policies and adjusting your deductible are good strategies to mitigate these increases.
Most Affordable Insurers for Drivers with an At-Fault Accident: Auto-Owners
If you’ve been in an at-fault accident, your car insurance rates are likely to rise, and those increases can remain on your premium for several years. However, taking a defensive driving course may help reduce your premium if you have an at-fault accident on your record.
Most Affordable Insurers for Drivers with a DUI: Auto-Owners
Having a DUI on your driving record can result in a significant increase in your insurance premium, as driving under the influence greatly raises the risk of accidents. However, some insurers offer non-standard policies for high-risk drivers. By shopping around, you can find the best available coverage for your situation.
Most Affordable Insurer for Teen Drivers: Auto-Owners
Insurance companies often view teen drivers as higher-risk due to their lack of experience and tendency toward risky driving behaviors. However, many insurers offer discounts for teens who maintain good grades or complete driver education courses.
Although teens tend to have the highest premiums among all age groups, rates typically decrease as you maintain a clean driving record, starting at age 20 and continuing thereafter, according to Quote Nest data. Insuring a young driver on a family policy may also help reduce costs and allow you to take advantage of multi-vehicle discounts.
Most Affordable Insurer for Senior Drivers: Auto-Owners
Insurance premiums often decrease as you gain driving experience, but they may start to rise again for drivers in their 70s due to changes in vision, mobility, and coordination, which can increase the likelihood of accidents.
Comparing policies is key to finding the best rates, as many insurers offer discounts for senior drivers. For example, GEICO provides a guaranteed renewal policy for senior drivers in 30 states, ensuring that your coverage won’t be canceled due to age-related concerns.
Most Affordable Regional Insurance Companies
When searching for the lowest car insurance rates, it’s worth considering regional insurers. If you prefer a more personalized approach to buying coverage, smaller companies often provide direct interaction with agents and possess more local knowledge compared to large national insurers. Although regional insurers are typically limited to certain states, they may offer the most competitive rates depending on where you live.
How to Save with Car Insurance Discounts
Most auto insurance companies offer discounts to policyholders who meet specific criteria. Below are some common car insurance discounts and how much you could potentially save:
- Bundling Discounts: Save 5%–25%
Combine renters, condo, or homeowners insurance with your auto policy to take advantage of bundling discounts. Many insurers offer significant savings for bundling multiple policies. - Multi-Vehicle Discounts: Save up to 25%
Insuring more than one vehicle on your policy can lead to substantial savings. Most insurers provide discounts when you add multiple cars to a single policy. - Good Driver Discounts: Save up to 34%
If you’ve gone several years without accidents or traffic violations, you may qualify for good driver discounts. Companies like State Farm, Nationwide, and GEICO offer this incentive. - Anti-Theft and Safety Feature Discounts: Average Savings Vary
Cars equipped with anti-theft or safety features like car alarms, steering-wheel locks, collision warning systems, or anti-lock brakes often qualify for lower premiums. - Telematics Discounts: Average Savings Vary
Many insurers use telematics programs to track driving behavior and offer discounts for safe driving habits. However, poor driving habits detected by telematics could increase your rates. - Defensive Driving Course Discounts: Average Savings Vary
Completing an approved defensive driving course can signal lower risk to insurers and may lead to premium reductions. Check with your insurer to confirm which courses qualify. - Military Discounts: Average Savings Vary
Active-duty military personnel, veterans, and retired service members may be eligible for discounts on their auto insurance.
Cheap Car Insurance FAQs
Which insurance company is usually the cheapest?
There isn’t one insurance company that is always the cheapest. Factors like age, location, and driving history all influence premiums. The cheapest car insurance quote currently available is $35 per month from Auto-Owners, according to Quote Nest data. Comparing quotes from both national and regional insurers is the best way to find the cheapest option for you.
What is the most affordable full-coverage car insurance?
COUNTRY Financial offers the cheapest rates for full-coverage insurance at $40 per month. NJM and Auto-Owners follow, with rates of $54 and $76 per month, respectively. Regional insurers often have competitive rates, but availability varies by state, so it’s important to shop around for the best options.
At what age does car insurance get cheaper?
Car insurance premiums typically start to decrease after age 25 and continue to drop as you maintain a clean driving record. Rates usually remain lower until you reach your 70s, when premiums may start to increase again due to age-related factors.
How much car insurance coverage do you need?
The amount of car insurance you need depends on several factors. At a minimum, you must meet your state’s liability coverage requirements. If you finance or lease your vehicle, your lender will likely require full coverage, including specific amounts of comprehensive and collision coverage. Drivers with high-value vehicles or assets may also want to consider purchasing additional coverage.
Which cars are the cheapest to insure?
Reliable cars with modern safety and anti-theft features tend to be the cheapest to insure. Subaru Forester and Subaru Outback were named Top Safety Picks in 2023 by the Insurance Institute for Highway Safety, making them two of the least expensive vehicles to insure. In contrast, sports cars and luxury vehicles often carry higher insurance premiums due to their increased risk and repair costs.