Progressive offers the cheapest car insurance rates, averaging $52 monthly or $624 annually - that's typically 38% below the national average. That's saving you $374 yearly. GEICO, Travelers, and State Farm's rates are within $2 per month of each other, but each is the least expensive in different scenarios. Compare quotes from the low-cost insurers below to find the best car insurance company for you to maximize your savings.
Cheapest Car Insurance Companies in 2026
Updated: February 16, 2026
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Top 5 Cheapest Car Insurance Companies
*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.
Cheapest Car Insurance Companies by State
Your state's cheapest insurer changes based on local accident rates, weather patterns and state regulations. State Farm is the cheapest in 18 states. GEICO leads in 16 states. Pick the right one and save up to $1,943 yearly. Check your state's average car insurance rates in the table to find your lowest rates.
| Alabama | Travelers | $47 | $86 | 1% |
| Alaska | Geico | $41 | $87 | 21% |
| Arizona | Travelers | $41 | $83 | 24% |
| Arkansas | Travelers | $41 | $89 | 8% |
| California | Geico | $39 | $91 | 24% |
| Colorado | Geico | $32 | $97 | 30% |
| Connecticut | Geico | $34 | $75 | 46% |
| Delaware | Travelers | $48 | $78 | 38% |
| District of Columbia | Geico | $86 | $152 | 30% |
| Florida | Travelers | $52 | $112 | 26% |
| Georgia | Geico | $40 | $101 | 14% |
| Hawaii | Geico | $24 | $66 | 28% |
| Idaho | State Farm | $18 | $56 | 21% |
| Illinois | Geico | $30 | $69 | 25% |
| Indiana | Geico | $33 | $64 | 8% |
| Iowa | Travelers | $28 | $66 | 9% |
| Kansas | Geico | $25 | $71 | 29% |
| Kentucky | Travelers | $47 | $94 | 18% |
| Louisiana | Geico | $54 | $156 | 21% |
| Maine | Travelers | $28 | $52 | 13% |
| Maryland | Geico | $51 | $89 | 22% |
| Massachusetts | Amica | $35 | $84 | 0% |
| Michigan | Travelers | $25 | $79 | 19% |
| Minnesota | State Farm | $33 | $94 | 4% |
| Mississippi | Travelers | $54 | $105 | 12% |
| Missouri | Travelers | $40 | $81 | 11% |
| Montana | State Farm | $19 | $85 | 34% |
| Nebraska | Geico | $27 | $68 | 0% |
| Nevada | Travelers | $57 | $105 | 24% |
| New Hampshire | Geico | $33 | $61 | 17% |
| New Jersey | Amica | $86 | $152 | 4% |
| New Mexico | Geico | $46 | $95 | 6% |
| New York | Progressive | $34 | $64 | 15% |
| North Carolina | State Farm | $24 | $56 | 33% |
| North Dakota | Geico | $28 | $61 | 9% |
| Ohio | Travelers | $36 | $75 | 1% |
| Oklahoma | Progressive | $29 | $96 | 16% |
| Oregon | Progressive | $46 | $82 | 10% |
| Pennsylvania | Travelers | $30 | $70 | 6% |
| Rhode Island | State Farm | $43 | $88 | 20% |
| South Carolina | Geico | $58 | $112 | 9% |
| South Dakota | Progressive | $14 | $55 | 32% |
| Tennessee | Travelers | $38 | $78 | 15% |
| Texas | State Farm | $41 | $93 | 25% |
| Utah | Geico | $46 | $90 | 23% |
| Vermont | State Farm | $22 | $56 | 23% |
| Virginia | Travelers | $30 | $61 | 15% |
| Washington | Geico | $39 | $96 | 12% |
| West Virginia | Geico | $42 | $92 | 28% |
| Wisconsin | Geico | $20 | $53 | 9% |
| Wyoming | State Farm | $21 | $76 | 21% |
Cheapest Full Coverage Car Insurance Companies
Travelers has the cheapest full coverage car insurance nationwide at $97 monthly, 29% below the national average. GEICO costs $98 monthly, only $1 more. Both save you over $230 yearly versus typical full coverage costs. Pick Travelers if you don't qualify for GEICO's military or federal employee discounts.
| Travelers | $97 | $1,158 | 29% |
| Geico | $98 | $1,177 | 28% |
| National General | $112 | $1,340 | 18% |
| Amica | $115 | $1,381 | 16% |
| State Farm | $121 | $1,448 | 11% |
Cheapest Minimum Coverage Car Insurance Companies
GEICO has the cheapest liability-only car insurance at $43 monthly, 36% below the national average. You save $264 yearly. National General costs $48 monthly, 28% below typical costs. Minimum state liability coverage costs least, but higher limits like 100/300/100 protect your assets better. The premium jump is usually small. Compare quotes for both to see your actual cost difference.
| Geico | $43 | $514 | 36% |
| National General | $48 | $579 | 28% |
| Travelers | $50 | $601 | 25% |
| State Farm | $53 | $634 | 21% |
| Amica | $56 | $669 | 17% |
Cheapest Car Insurance Companies by Age
Your cheapest insurer depends on your age. National General costs least for teens and young adults. GEICO costs least for seniors. Teen drivers pay more because they crash more. Rates drop after age 25 for clean-record drivers, hit bottom between ages 40 and 60, then climb after 65.
Cheapest Car Insurance Companies for Teens
National General is the cheapest car insurance company for teens at $210 monthly for minimum coverage, 13% below the national average. It's also cheapest for comprehensive and collision at $459 monthly. State Farm costs $225 monthly for liability and $444 for full coverage, also 13% below average.
National General sits between regular and high-risk markets. It accepts young drivers that traditional insurers reject. It also prices teens on family policies individually instead of hitting all young drivers with the same surcharge.
| National General | $210 | $459 | 13% |
| State Farm | $225 | $444 | 13% |
| Geico | $225 | $477 | 8% |
| Travelers | $237 | $466 | 8% |
Cheapest Car Insurance Companies for Young Adults
National General is the cheapest company for young adults at $88 monthly for minimum liability, 29% cheaper than the national average. GEICO costs $94 for liability and $207 for full coverage.
Need comprehensive and collision? National General costs $182 monthly for full coverage.
| National General | $88 | $182 | 29% |
| Geico | $94 | $207 | 21% |
| Travelers | $115 | $228 | 10% |
| State Farm | $123 | $253 | 1% |
Cheapest Car Insurance Insurers Companies for Seniors
GEICO is the cheapest car insurance company for seniors at $83 monthly, 13% below the national average for this age group. GEICO keeps costs low with a direct-to-consumer model. It combines mature driver discounts and defensive driving course savings with multi-policy bundling (many seniors already bundle homeowners insurance).
National General has the cheapest full coverage at $167 monthly. It accepts seniors that traditional insurers push into higher price brackets. GEICO's full coverage costs $171 monthly, just $4 more. Choose between National General's competitive pricing through agent networks or GEICO's digital-first convenience with 24/7 phone support.
| Geico | $83 | $171 | 13% |
| Amica | $89 | $187 | 6% |
| National General | $90 | $167 | 12% |
| State Farm | $95 | $189 | 3% |
Cheapest Car Insurance Companies for High Risk Drivers
Drivers with accidents, speeding tickets or DUIs pay higher premiums, but State Farm costs the least for most high-risk drivers. It treats them as pricing anomalies within its diversified risk pool rather than routing them to expensive, non-standard divisions. State Farm charges 23% to 29% below competitors across violation types, absorbing high-risk drivers into its massive policyholder base where their premiums average out against 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. Travelers costs $63 monthly.
- DUI Conviction: State Farm costs $73 monthly for minimum coverage and $159 for full coverage, 29% below average. Travelers and Progressive also have competitive rates for drivers with DUIs.
- Non-Owner: GEICO is the cheapest provider with rates starting at $58 monthly for minimum coverage or $693 yearly. GEICO saves drivers around $144 annually.
Cheapest Car Insurance Companies for Drivers With Bad Credit
Nationwide is the cheapest company for drivers with bad credit at $165 monthly for minimum coverage and $164 for full coverage, 29% below the national average. Farmers costs $179 monthly for liability and $203 for full coverage, 17% below average. GEICO costs $183 monthly for minimum coverage (more expensive than Nationwide and Farmers for liability only). But GEICO's full coverage rate of $195 monthly is 18% below average, nearly matching Farmers' discount despite higher liability costs.
| Nationwide | $165 | $164 | 29% |
| Farmers | $179 | $203 | 17% |
| GEICO | $183 | $195 | 18% |
| Travelers | $190 | $208 | 14% |
| Allstate | $214 | $227 | 4% |
HOW MUCH DO CAR INSURANCE COMPANIES PENALIZE BAD CREDIT?
In states where credit-based insurance scoring is legal, poor credit (scores below 580) will increase premiums by about 100%. California, Hawaii, and Massachusetts prohibit insurers from using credit scores in rate calculations. Compare quotes from multiple insurers to find the cheapest option for your credit situation.
Cheap Car Insurance Companies: Buying Guide
Insurance companies price identical coverage anywhere from $1,200 to $8,500 differently based 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, can cut premiums by 20% to 40% below advertised base rates. Regional insurers often undercut national carriers by 28% to 34% in markets where they focus operations.
How to Get the Cheapest Car Insurance
Your cheapest car insurance company depends on your driver profile and coverage needs. Find out how to get car insurance that fits your needs and budget by following the five steps below.
- 1Match Your Driver Profile to Specialized Insurers
Identify your category: teen, young adult, senior, military member, or high-risk driver. Then focus on companies that offer the cheapest rates in your demographic. Each insurer prices differently by driver type, so specialization matters. To make sure you select the right insurance for your high-risk profile, you can start by reading our car insurance company reviews for State Farm, Travelers, and Progressive - all of which specialize in insuring drivers with violations.
- 2Compare Regional vs. National Companies
Check if regional companies operate in your state. Regional insurers often cost 28 to 34 percent below national averages in specific markets. Availability varies by location, so your cheapest option may be regional instead of national. Regional carriers often have lower pricing but fewer coverage options and may lack easy digital claims processes.
- 3Evaluate Each Company's Discount Programs
Discount programs vary widely between insurers. State Farm emphasizes bundling discounts (10% to 25% off) for homeowners and households with multiple vehicles. GEICO targets military members, federal employees, and low-mileage drivers. Common discounts include good student (15% to 25%), safe driver (20 to 30%), and multi-policy savings.
- 4Review Company Pricing by Coverage Type
Get quotes for your coverage level. Some insurers have better rates for minimum liability. Others have lower rates than competitors for full coverage. Use state comparison tables and MoneyGeek's car insurance calculator to estimate costs before you request formal quotes.
- 5Check State-Specific Company Performance
Your cheapest company changes by state. State Farm has the lowest rates in 18 states. GEICO leads in 16. Nationwide, Progressive, Farmers, Allstate and Travelers cost less in specific regional markets. Use state comparison tables to find which company performs best in your state.
Car Insurance Company Discounts to Lower Rates
Your cheapest car insurance company isn't determined by advertised rates or market share but by how well an insurer's business model and discount structure match 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. Poor credit drivers pay much less through Nationwide's credit-light underwriting.
Clean Record | Travelers | $97 | $1,158 | Policy bundle (13%) + Safe driving (10%) | $75 |
Clean Record | GEICO | $98 | $1,177 | Multiple vehicles (25%) + Home policy (25%) | $73 |
Teen Driver | State Farm | $444 | $5,328 | Academic achievement (25%) + Steer Clear | $333 |
Teen Driver | Travelers | $466 | $5,592 | Student discount (25%) + IntelliDrive (30%) | $256 |
Young Adult | National General | $182 | $2,184 | Household policies combined | $155 |
Young Adult | GEICO | $207 | $2,484 | Student rate (15%) + Clean record (22%) | $153 |
Senior (60+) | National General | $167 | $2,004 | Mature driver course (10%) + Policy bundle (25%) | $125 |
Senior (60+) | GEICO | $171 | $2,052 | Safety course (10%) + Home/auto bundle (25%) | $128 |
High-Risk (DUI) | State Farm | $159 | $1,908 | Monitored driving (20%) + Policy bundle (17%) | $127 |
High-Risk (DUI) | Progressive | $161 | $1,932 | Snapshot safe driving program | $142 |
Poor Credit | Nationwide | $164 | $1,968 | SmartRide usage-based (40%) + Multi-policy | $115 |
Poor Credit | GEICO | $195 | $2,340 | Combined policies (25%) + Violation-free (22%) | $137 |
Descriptions of the Best Car Insurance Company Discounts
- Telematics-based insurance: Usage-based programs like Progressive's Snapshot and State Farm's Drive Safe & Save monitor your driving habits through a mobile app or plug-in device. Safe drivers earn discounts averaging $231 yearly. These programs work well for cautious drivers who want rates that reflect actual behavior instead of demographic assumptions.
- Good student discount: Full-time students maintaining a B average or higher qualify for savings ranging from 15% to 25% off their premium. You'll need to provide report cards or transcripts to verify eligibility.
- Multi-vehicle discount: Insuring multiple cars with the same company reduces each vehicle's premium by up to 25%. The discount applies because insurers save on administrative costs and view multi-car households as more stable, lower-risk customers.
- Bundling discount: Combining auto insurance with homeowners or renters coverage from the same insurer cuts costs 10% to 25% on both policies. Bundling also simplifies billing and claims management by keeping all coverage under one provider.
- Safe driver discount: Maintaining a clean driving record for three to five years without accidents or violations earns you discounts of 20% to 30% on most coverage types. Insurers view your history as the strongest predictor of future claims, so drivers who avoid tickets and accidents benefit from consistently lower rates.
- Military and federal employee programs: Active duty military, veterans, and federal employees access specialized discounts of 12% to 15% through companies like GEICO and USAA. These programs often include additional benefits like deployment storage options that suspend coverage during overseas assignments.
- Loyalty rewards: Long-term customers earn benefits like accident forgiveness, vanishing deductibles, and rate cuts for staying with the same insurer for multiple years. Progressive has decreasing deductibles that drop $50 per policy period without claims. Amica pays dividends to policyholders.
Cheapest Auto Insurance Companies: Bottom Line
Your most economical car insurance company varies by individual circumstances, but GEICO has competitive rates across multiple driver profiles. Travelers provides excellent value for full coverage at $97 monthly. Learning how to switch car insurance companies makes transitioning to a cheaper provider straightforward.
FAQs About the Cheapest Insurers
We answer common questions about saving money on car insurance to help you find the cheapest policy:
Is cheap car insurance worth it?
Finding affordable coverage saves money, but the absolute lowest price doesn't always give you the best value. Companies with lower rates may cut corners when you file a claim.
Watch for slow claims processing, limited customer service, and fewer coverage options. Your policy covers damage only up to your limit. You pay anything beyond that amount in a serious accident. Insurance fraud costs the average family between $400 and $700 yearly in premiums.
How can I find the cheapest car insurance in my state?
Shop around to find your cheapest car insurance company. GEICO has the lowest rates for most states and drivers. Your most affordable insurer depends on your unique profile, so compare quotes from multiple cheap car insurance companies.
What's the lowest you can pay for car insurance?
Minimum coverage policies meeting your state's requirements are usually the cheapest car insurance available. GEICO's minimum coverage rates start at $43 monthly, though your actual rate depends on your location and driver profile.
Which states have the cheapest car insurance?
Maine, Vermont and Idaho have the lowest car insurance rates due to lower population density, fewer claims and favorable regulations.
Can bundling policies reduce the cheapest car insurance rates?
Bundling auto and home insurance with the same company gives you 10% to 25% discounts, making it one of the most effective ways to cut your car insurance rates.
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Affordable Auto Insurance Companies: Related Pages
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Centers for Disease Control and Prevention. "Risk Factors for Teen Drivers." Accessed June 27, 2025.
- Centers for Disease Control and Prevention. "Older Adult Drivers." Accessed June 27, 2025.