Cheapest Car Insurance Companies in 2026

The five cheapest car insurance companies nationwide on average are:

1. Progressive: $52/mo
2. GEICO: $53/mo
3. Travelers: $54/mo
4. State Farm: $54/mo
5. Nationwide: $76/mo

Progressive offers the lowest rates at 38% below the national median, saving drivers $374 annually. GEICO, Travelers and State Farm cluster tightly together within $2 monthly, but each offers the most affordable rates in different coverage scenarios. Travelers is the cheapest company for full coverage policies, GEICO offers the cheapest liability-only rates, and State Farm provides the lowest rates for high-risk drivers with accidents, tickets or DUIs.

Compare quotes from the cheapest companies below to find which insurer offers the most budget-friendly rates and how much you can save.

*Rates are based on the average of state minimum liability and comprehensive and collision coverage with 100/300/100 limits and a $1000 deductible insuring a 20212 Toyota Camry.

Travelers offers the cheapest full coverage car insurance nationwide at $97 monthly, which is 29% below the national average. GEICO ranks second among the cheapest providers in our industry-wide review, with premiums at $98 monthly, just $1 more than Travelers. Both companies save drivers over $230 annually compared to typical full coverage costs, but Travelers is the least expensive for customers who don't qualify for GEICO's military or federal employee discounts.

GEICO offers the cheapest liability-only car insurance at $43 monthly, which is 36% below the national average and saves drivers $264 annually. National General ranks second at $48 monthly with rates 28% below typical costs. While minimum state liability coverage has the cheapest rates, drivers with assets to protect should consider higher liability limits like 100/300/100. The premium difference is often modest. Compare quotes for both options to determine the actual cost difference before making a decision.

State Farm offers the cheapest rates in 18 states while GEICO leads in 16 states, with the right choice saving you up to $1,943 yearly. Your state's cheapest insurer varies based on local accident rates, weather patterns and state insurance regulations. Check your state in the table below to find which company offers the lowest rates for your coverage level.

Age affects insurance costs, with the cheapest company varying by life stage. National General offers the lowest rates for teens and young adults, while GEICO is the most affordable provider for seniors. Teen drivers pay higher premiums due to inexperience and higher accident rates. Rates drop after age 25 for clean-record drivers, reaching their lowest between ages 40 and 60 before rising again after 65.

National General is the cheapest car insurance company for teens, with minimum coverage at $210 monthly, 13% below the national average. National General is also the most affordable company for comprehensive and collision protection, with rates averaging $459 per month. State Farm ranks second at $225 monthly for liability and $444 for full coverage, also 13% below average.

National General's bridge positioning between standard and non-standard markets allows it to accept young drivers that traditional insurers price out, while its granular underwriting rewards teens on family policies rather than applying blanket youth surcharges.

National General is the cheapest company for young adults looking for cheap coverage. This insurer offers the cheapest average monthly premium for minimum liability coverage, with rates as low as $88 monthly, 29% cheaper than the national average. GEICO follows closely behind and is a budget-friendly choice; its monthly costs are $94 for liability and $207 for full coverage.

For drivers who need comprehensive and collision protection, National General is again the most affordable company, offering full coverage at an average monthly rate of just $182.

GEICO is the cheapest car insurance company for seniors at $83 monthly—13% below the national average for this age group. The auto insurer employs a direct-to-consumer model, keeping overhead low, while its mature driver discounts and defensive driving course savings are combined with multi-policy bundling, which many seniors already utilize through their homeowners insurance.

National General is the most affordable company providing full coverage at $167 monthly, undercutting competitors by accepting seniors who traditional insurers price into higher brackets. GEICO's $171 monthly full coverage follows just $4 behind, making the choice between National General's competitive pricing through agent networks versus GEICO's digital-first convenience with 24/7 phone support.

Drivers with accidents, speeding tickets or DUIs pay higher premiums, but State Farm is the most affordable company for most high-risk drivers, treating them as pricing anomalies within a diversified risk pool rather than routing them to expensive non-standard divisions. State Farm charges 23% to 29% below competitors across various violation types, absorbing high-risk drivers into its massive policyholder base, where their premiums average out against those of millions of clean-record customers.

• At-Fault Accident: State Farm charges $62 monthly for minimum coverage and $141 for full coverage—23% below the national average.
• Speeding Ticket (11-15 MPH Over): Minimum coverage costs $56 monthly with State Farm, 18% below average rates. Travelers offers competitive pricing at $63 monthly.
• DUI Conviction: State Farm remains the most affordable option at $73 monthly for minimum coverage and $159 for full coverage—29% below average. Travelers and Progressive also offer competitive rates for drivers with DUIs.

Nationwide is the most affordable company for drivers with bad credit at $165 monthly for minimum coverage and $164 for full coverage, 29% below the national average. Farmers ranks second at $179 monthly for liability and $203 for full coverage, 17% below average. GEICO costs $183 monthly for minimum coverage, making it more expensive than Nationwide and Farmers for liability-only policies. However, GEICO's full coverage rate of $195 monthly places it just 18% below average, nearly matching Farmers' discount percentage despite the higher liability costs.

Insurance companies price identical coverage anywhere from $1,200 to $8,500 differently depending on whether you're a teen driver, carry violations, own multiple vehicles, or have poor credit. The right carrier for your situation, combined with strategic discount stacking, delivers 20% to 40% lower premiums than advertised base rates, with regional insurers frequently undercutting national carriers by 28% to 34% in markets where they concentrate operations.

The cheapest car insurance company isn't determined by advertised rates or market share—it's determined by how well an insurer's business model and discount structure align with your specific driver profile. Young drivers save most with Travelers' youth-focused programs, high-risk drivers find lowest rates through State Farm's forgiving violation pricing, multi-car families benefit from GEICO's stackable household discounts, and poor credit drivers pay dramatically less through Nationwide's credit-light underwriting.

The most economical car insurance company varies by individual circumstances, but GEICO offers competitive rates across multiple driver profiles.  Travelers provides excellent value for full coverage at $97/month. Learning how to switch car insurance companies makes transitioning to a cheaper car insurance provider straightforward.

We answer common questions about saving money on car insurance to help you find the cheapest policy: