Which of the top cheap car insurance companies offers the best coverage at the price you want?

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Everyone wants to save money. One way to do this is to shop for cheap auto insurance. Still, there are numerous factors to consider when looking for affordable car insurance. We have evaluated the top providers to not only help you find the most affordable auto insurance plans, but to steer you toward companies that offer exceptional coverage and customer service.

Among the cheapest auto insurance providers we discovered USAA, Erie Insurance, Root Insurance, Geico, and State Farm. Let’s dive deeper into the average rates and coverage options to help you find a provider that fits your needs.

Whenever you shop for cheap auto insurance, we recommend getting quotes from multiple providers so you can compare coverage and rates. In addition to the insurance company you choose, factors such as your age, vehicle make and model, and driving history can affect your premium, so what’s best for your neighbor might not be best for you.

Use our tool below to start comparing personalized auto insurance quotes. You can also receive free quotes seven days a week by calling (855) 518-0148.

 

In this article: 

Best Cheap Auto Insurance Providers

In our study into cheap car insurance companies, we found several companies that provide low rates. While there are several car insurance companies that provide cheap auto insurance, we are going to focus our attention on five. These five have the lowest rates for minimum car insurance coverage, as well as full coverage with no other factors involved. In our review, however, we won’t focus solely on insurance price, we’ll also evaluate the customer service, ease of filing a claim, and company reputation.

Here are the top five providers of cheap auto insurance in the U.S.:

Best Cheap Auto Insurance Overall Star Rating Usage-Based Insurance Accident Forgiveness New Car Replacement

1. USAA Auto Insurance

5.0

2. Erie Auto Insurance

4.0

3. Root Insurance

4.0

 

 

4. Geico Auto Insurance

4.5

 

5. State Farm Auto Insurance

4.5

 

 

 


 

USAA Insurance logo

#1 USAA Auto Insurance: Best For Military

Not only does USAA provide low-cost liability insurance, but also full coverage. The organization also made it to the top of our other charts. The only trouble with USAA is that not everyone will qualify for coverage. In fact, USAA is designed to cover only military members, veterans, and their families.

Aside from that, USAA auto insurance also provides further perks, such as roadside assistance, accident forgiveness, rental car coverage, and Car Replacement Assistance (CRA). USAA also providers other types of insurance, including life insurance, homeowners/renters insurance, health insurance, and more.

We are fond of the USAA Mobile App, which makes filing a claim simple. In addition, the organization is known for its superior customer satisfaction. Throughout our research, we found two studies on auto insurance, both done by J.D. Power. Both the Auto Claims Satisfaction Survey and the 2019 Auto Insurance Study indicate that this provider is among the best.

USAA auto insurance might be right for you if:

  • You are part of the military, are a veteran, or family member
  • Want the lowest cost coverage available
Pros Cons

Affordable rates and numerous discounts

Only available for military and their families

Good option for military members and young drivers

 

Superior financial rating from AM Best

 

Nationwide avaiability

 

To learn more about this cheap auto insurance provider, check out our review of USAA auto insurance.

 


 

Erie Insurance logo

#2 Erie Auto Insurance: Best For Multi-Car Homes

Another provider that shows up in three out of our four lists is Erie Insurance. This company provides cheap auto insurance quotes online and is also known for customer service. The downside with Erie Insurance is that the coverage isn’t available in every state. You can only get a policy if you live in these regions.

District of Columbia

Illinois Indiana Kentucky Maryland

North Carolina

Ohio Pennsylvania Tennessee Virginia West Virginia Wisconsin

Looking at the Better Business Bureau (BBB) ratings for Erie Insurance, you also see that this provider has an A+ score. Furthermore, Auto Claims Satisfaction Survey and the 2019 Auto Insurance Study suggest that this company is a leader wherever coverage is sold.

Erie Insurance might be right for you if:

  • You live in a covered state
  • You have had one accident
  • Your credit score is excellent
Pros Cons

Received top industry awards

Only available in 15 states

Excellent claims experience

 

Local, personalized service

 

Locations throughout Maryland

 

To learn more about this cheap auto insurance provider, check out our review of Erie auto insurance.

 


 

Root Insurance logo

#3 Root Insurance: Best Usage-Based Insurance

Root Insurance is a little different from other insurance providers. Instead of basing your auto insurance premium on mainly on your driving record, it weighs your driving behavior first. That means that in order to get a quote from Root Insurance, your driving behavior first has to be recorded through the Root mobile app, which can take a couple of weeks.

Since Root provides coverage only to good drivers, it pays out less often, which makes it one of the cheapest auto insurance providers. However, that means Root can deny coverage if you aren’t the best driver. 

Root Insurance provides all of the standards types of coverage. On top of that, every plan comes with roadside assistance already included.

Root might be for you if:

  • You are a good driver
  • Prefer doing everything through a mobile app
Pros Cons
Great rates for good drivers

May deny coverage based on your driving behavior

Everything is done through a mobile app making for a simple quotes/claims process

Only available in 29 states

Includes roadside assistance

No personal agents assigned to your policy

A+ rating from the BBB

A very young company compared to others in the industry

To learn more about this cheap auto insurance provider, check out our review of Root auto insurance.

 


 

Geico Insurance logo

#4 Geico Auto Insurance: Best For Good Drivers

Geico isn’t just well-known because of its commercials, but also one of the cheapest auto insurance providers you can choose. While Geico might not be the best choice for someone with a spotty record, safe drivers find a lot of benefits to using the provider. Some additional perks offered by Geico include roadside assistance, ridesharing insurance, and mechanical breakdown coverage.

In addition, the company has an A+ rating from the BBB, plus it scored highly on the 2019 Auto Insurance Study and Auto Claims Satisfaction Survey. When you use the organization’s website, you will also find that the quote process is simple and you can track claims with ease. You can find a variety of plans covering property damage, bodily injury, as well as comprehensive plans. No matter what type of coverage you opt for, you are likely to get one of the lowest rates through Geico.

Geico might be for you if:

  • You want to customize coverage
  • You don’t have infractions on your driving record
Pros Cons
Many choices for coverage

Average quotes experience

A+ rating from the BBB and A++ financial strength rating from AM Best

 

High level of customer satisfaction

 

Available in all 50 states  

To learn more about this cheap auto insurance provider, check out our review of Geico auto insurance.

 


 

State Farm Insurance logo

#5 State Farm Auto Insurance: Best For Students

State Farm is another one of the cheapest auto insurance company options. It showed up on all of our lists, whether you are looking for simple liability coverage or comprehensive. Furthermore, the company boasts an A+ rating from the BBB.

The company also offers Drive Safe & Save Discounts to help you keep more money in your pocket. By participating in the program, you can save up to 30 percent. The program is simple to use and can be performed from OnStar or your smartphone.

In addition, State Farm is a provider that shows up on both the Auto Claims Satisfaction Survey and the 2019 Auto Insurance Study, although some regions rank it slightly lower than others

State Farm might be a good fit for you if:

  • You want to participate in the safe driving program
  • You have poor credit
  • Your driving record shows an accident
Pros Cons
Comprehensive coverage offerings

Reported errors with autopay

Extensive selection of discounts

Not available for new customers in Massachusetts or Rhode Island

Positive online quotes process  
A+ rating from the BBB  

To learn more about this cheap auto insurance provider, check out our review of State Farm auto insurance.

Get started comparing quotes by filling out the form below or by calling (855) 518-0148.

 

 

What Determines The Cost Of Auto Insurance?

The Insurance Information Institute details all of the factors that go into determining your rates. While a few of these seem obvious, it might come as a shock to see a couple of them.

  • Driving record: The better you drive, the lower your car insurance rates will be. If there are serious traffic violations or accidents on your record, you will pay more.
  • Use of vehicle: The more you drive, the more you will pay, because your risk is increased. If you do a lot of commuting or traveling, insurance companies will give you a higher rate. If you don’t spend a lot of time driving, you can sign up for what’s known as a “pleasure” rate.
  • Age: Once you hit 25 years old, you will notice your insurance premiums begin to decrease. That’s because you aren’t as much of a risk as a young driver. As you become a senior, the rates will once again start to rise.
  • Location: Urban drivers can expect to pay more because of the increase in vandalism, accidents, and theft. Furthermore, where you park your car can have an impact on the bottom line as well. Parking in a garage might lower your rates. You can research the highest cost and cheapest auto insurance by state.
  • Vehicle type: Some cars are known to be expensive to insure, while others are rated as the cheapest. The companies consider the cost of your vehicle, as well as the likelihood of theft, the price of repairs, and overall safety record.
  • Credit history: Credit scores designed specifically for insurance purposes are usually always taken into account as a way to examine your reliability. A poor credit history indicates a higher likelihood of filing a claim.
  • Gender: Statistics by the Insurance Institute for Highway Safety show that women get into fewer car accidents than men. As a result, women will pay less for car insurance than men, on average.
  • Auto insurance coverage: The limits you choose, the amount of your deductible, and policy options affect the price you pay for coverage.

 


 

Tips For Finding Cheap Auto Insurance

If you have speeding tickets or accidents on your record, or you suffer from poor credit, you might need to pay a higher insurance premium. Still, there are some ways to save money on your insurance premiums, according to the Insurance Information Institute.

  • Consider what car you buy: Before you buy a car, get a quote on insurance. You might be surprised at what models raise your rates.
  • Reduce comprehensive car insurance: If you have an older car, you might consider removing the collision and comprehensive coverage. Just make sure you have the money to replace the vehicle if something should happen. Not every state requires you to carry personal injury protection either. Play with the plans to see what makes the most sense for your financial situation.
  • Increase deductibles: If you have some money in your savings, you can increase the deductible to lower the premium.
  • Maintain a good credit score: This is an automatic way to get bigger savings.
  • Ask about the discounts: You might find a lower rate for safe driving, bundling your policies, and having new safety features.
  • Look for low-income car insurance: Some states have government-sponsored programs that help families without money afford auto insurance. While not everyone qualifies, it might be something to look into if you are struggling to make ends meet.

The main key to finding cheap auto insurance is knowing how to shop. Because of the many factors that are unique to you, what might be considered low-cost car insurance for you, may not be the same for the next person. 

  • Shop: Don’t just go with the first company you land on; shop around. Each car insurance company will often have its own discounts and rates.
  • Don’t assume one company is the best: Just because you see a lot of commercials for an insurance agency, doesn’t make them the cheapest provider for auto insurance. Do your own research to determine who deserves your business.
  • Check local insurers: While many of the big companies can provide low cost auto insurance, you don’t want to neglect the local companies too. Call a local broker to see what’s offered in your area.
  • Consider pay-per-mile or usage-based insurance: If you don’t drive a lot, you might be better off using a specialized program. There are many options, such as Allstate’s Drivewise or State Farm’s Drive Safe & Save. These let the insurer track how many miles you drive and how well you do on the road in exchange for a discount.

With a little work and some patience, you will find the car insurance provider with the best rates for your situation. For more tips, check out our article on how to get cheap auto insurance.

 


 

Cost Isn’t Everything

While we all want to save money, we have to remember that the cost of auto insurance isn’t the only factor to consider. After all, if you decide to go strictly with state minimum coverage and you cause an accident, you might be liable for the additional damages out of pocket. This expense is something to consider when trying to save a dollar on coverage long term. Sometimes, more is better.

On top of that, when choosing an auto insurance provider, you can’t strictly assess your options based on affordable auto insurance prices. Otherwise, you might get the lowest rate but have a company that drags its feet when it comes time to pay. In the meantime, you are left without a vehicle and in worse shape than if you had paid more for your auto insurance.

When you do your online comparison shopping between insurance providers, take into account the price, but also look at other factors. Evaluate the customer satisfaction scores, reliability ratings, financial reputation, and ease of filing an auto insurance claim. All of these factors put together will help you to find the provider that fits your needs, and you can save money in the process.

If you are still not convinced and would like to consider more options for cheap auto insurance, we recommend that you read our Liberty Mutual auto insurance review. We also have an articles on how to get very cheap car insurance, no deposit.

Enter your zip code in the tool below or call (855) 518-0148 to collect and compare affordable car insurance quotes from providers available in your state:

 

 


 

FAQ About Cheap Auto Insurance

Who has the cheapest auto insurance?

We recommend USAA car insurance for those looking for the cheapest auto insurance. If you are not eligible for USAA, Erie Insurance and Root both provide cheap auto insurance. As always, we recommend getting several car insurance quotes to find the most affordable auto insurance for you.

What do you do if you can’t afford auto insurance?

With limited income, it is sometimes difficult to make financial decisions, including those related to car insurance. Most states have basic car insurance requirements, which is why you should never drive without insurance. If you can't afford your current car insurance, consider reducing your premiums or switching to a cheaper car insurance provider. Learn more in our article: When You Can't Afford Auto Insurance

 

 

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