Low Cost Car Insurance Companies (July 2022)

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Among the top nine auto insurance providers in our annual survey, USAA, Geico, and State Farm consistently have the lowest annual rates for our driver groups. This includes rewards for good drivers as well as those who may have a speeding ticket. These insurance companies can also save money for teen and elderly drivers.


Keep in mind that shopping and comparing offers from different insurance companies is the best way to find the cheapest car insurance for you.


What is the cheapest car insurance company for you?


The company with the lowest auto insurance premiums in our ranking is USAA. In addition to having the lowest total premiums, it also offers the lowest premiums to motorists who have had a speeding ticket or accident. USAA offers auto insurance policies to drivers associated with the US military, including active duty military personnel, veterans, junior officers, spouses, and children.


For those non-military drivers, Geico is the next cheapest car insurance company. It also has the cheapest insurance premiums besides USAA for both teenage and senior drivers, motorists with a clean driving history, and those with bad credit.


If you have a speeding ticket or have an accident, State Farm has lower premiums besides USAA. And if you're driving drunk, State Farm offers, on average, the cheapest auto insurance policies of any company in our ranking.


The rates in our research are based on new customers buying insurance and can help you get an idea of ​​how much you can pay for auto insurance with a new insurance company. Keep in mind that car insurance rates are very individual. Your actual rates will depend on several factors, including where you live, the car you drive, and your credit score. Insurance companies also rely on your driving history. Certain infractions, such as a speeding ticket, drunk driving, or a wrongful accident, can increase prices or make it difficult to purchase an insurance policy.


National Average Rates for a Year-long Car Insurance Policy

USAA

$1,000

Geico

$1,148

State Farm

$1,267

Nationwide

$1,327

Travelers

$1,371

American Family

$1,371

National Avg.

$1,442

Progressive

$1,533

Farmers

$1,917

Allstate

$2,047

Cheap Car Insurance For Good Drivers: Geico

Good drivers who do not qualify for a USAA policy are more likely to find Geico's lowest car insurance rates.

Cheapest for Good Drivers

Geico

$1,148

National average rate for year-long policy

$295

Savings compared to national average


Geico's annual rate of $1,148 is $295 lower than the national average, meaning a savings of over 20%. The latest customer survey data also shows that the majority of Geico policyholders are satisfied with their customer service experience and are more likely to recommend the insurance company to other people buying auto insurance.

Crashes, speeding tickets, and other traffic violations can result in higher rates, no matter which insurance company you choose. Keeping your driving history clean can help you secure the lowest prices and good driver discounts.

Cheap auto insurance for teen drivers: Geico

Our data shows that Geico has the lowest auto insurance rates for most teen drivers, regardless of gender. Members of the military community may want to consider the USAA option instead, as it's slightly cheaper.

Average national rates for teen drivers range from $4,860 to $5,503, but Geico insurers can save up to 35%. Geico's average rate for 17-year-old female drivers is $3,166 per year, $1,694 less than the national average. Its average price for male drivers in the same age group is $3,555, $1,948 more than the national average.

Cheapest for Teen Drivers

Geico

$3,166

Annual rate for teen female drivers

$3,555

Annual rate for teen male drivers


Cheap car insurance for older drivers: Geico

60-year-old men and women had the lowest rates of any age group in our study, and their annual premiums were generally lower than the national average. Seniors looking for the cheapest insurance should look to Geico, which has the lowest overall rates in our study.

On average, drivers in this group pay between $1,245 and $1,282 a year for auto insurance based on gender. Geico's rates are about 18% lower and range from $1,049 to $1,085 per year. It's worth noting that USAA rates for 60-year-old drivers are significantly lower than the national average and Geico's rates. Therefore, qualified individuals may consider USAA auto insurance first.

Cheapest for Senior Drivers

Geico

$1,049

Annual rate for senior female drivers

$1,085

Annual rate for senior male drivers

Cheap car insurance for the military community: USAA

Many auto insurance companies offer discounts for members of the military and their families, but if you're in the military community, consider USAA.

USAA consistently delivers some of the lowest rates in our study. With USAA, a good driver can expect rates 31% lower than the national average. USAA also has the lowest prices for many of the subcategories we reviewed, including teen drivers, older drivers, drivers with speeding or accidents, and drivers who require minimal coverage.

If you are considering USAA, be aware that their insurance products are limited to active duty military personnel, veterans, and their families.


Cheapest for Military Community

USAA

$1,000

National Average for Military Community

$442

Savings compared to national average



Please note that insurance companies do not consider credit score when calculating rates in California, Hawaii and Massachusetts. As a result, data from these countries were excluded from this part of our analysis.

Cheap car insurance after a speeding ticket: a government farm

Avoiding speeding violations is the best way to get cheap auto insurance rates, but if it's too late, try State Farm.

Cheapest After a Speeding Ticket

Geico

$1,409

National average rate after a speeding ticket

$358

Savings compared to national average



After a speeding ticket, drivers can receive higher premiums. Our data shows that insurance companies raise rates by an average of 23% for drivers who have a single speeding ticket. State Farm only increased its rates by an average of 11%, the smallest increase among providers in our study. Drivers with a speeding ticket can expect an average State Farm price of $1,409. This represents a saving of $358 compared to the national average of $1,767.

A single speed card doesn't mean you'll pay higher rates for the rest of your life, but most insurance companies will increase your premium for at least three years, if not more. Shopping and comparing car insurance rates after a speeding ticket can help you find the cheapest insurance premiums.

Cheap car insurance after an accident: a state farm


The national average for drivers involved in an accident is $2,041. This is 29% above the average for drivers with a clean history. After USAA, State Farm's rate is the lowest in our study and second only to USAA in our best auto insurance 2022. At $1,516 per year, it beats the national rate by 26%, resulting in a savings of $525 per year. .

Cheapest for After an Accident

Geico

$1,516

National average rate after an accident

$525

Savings compared to national average

Cheap Car Insurance After Drunk Driving: State Farm

For most drivers, driving under the influence of alcohol will cause a significant increase in the rate. A policy with State Farm can make auto insurance payments easier.

Our analysis showed that the average annual price of $2,320 represents a typical increase of nearly 61% over rates for drivers with a clean record. State Farm increases rates after drunk driving, but only by 35%. On average, drivers who choose State Farm pay $1,711 in auto insurance, saving roughly $610 a year.

This is one of the categories in which USAA did not take first place. Their rates are higher than those offered by State Farm and American Family Insurance.

Cheapest After a DUI

Geico

$1,711

National average rate after a DUI

$609

Savings compared to national average

Cheap car insurance for bad credit: Geico

Bad credit can increase rates almost (and sometimes more) as drunk driving. Every insurance company in our study increases premiums for bad credit, but drivers can still save money with Geico. Its rates for drivers with bad credit are 28% lower than the national average and the lowest in our study.

The average price for drivers with bad credit is $2,524 a year, but the average Geico price is just $1,810 a year. This is an annual saving of $714. It's also worth noting that Nationwide's prices are $1,837, just 1% higher than Geico's, making it another competitively priced option for drivers with bad credit.

Please note that insurance companies do not consider credit scores when calculating rates in California, Hawaii and Massachusetts. As a result, data from these countries were excluded from this part of our analysis.

Cheapest for Poor Credit

Geico

$1,810

National average rate with poor credit

$714

Savings compared to national average

Cheap car insurance with full coverage: Geico

Our analysis shows that Geico is the cheapest company if you need a high level of insurance coverage.

Geico's average high coverage rate is $1,238 per year. That's $280 per year less than the national average, and total annual savings of nearly 18%. As with many of the other subcategories we covered, USAA prices are still the lowest overall, and drivers from the military community should consider USAA if they qualify for membership.

Cheapest for Full Coverage

Geico

$1,238

National average rate for full coverage

$280

Savings compared to national average

Cheap car insurance for low mileage drivers: Geico

Motorists who drive less than 6,000 miles per year can save money by switching to a lower mileage plan. Geico offers the lowest prices for people who drive less frequently.

Geico's low-mileage car insurance averages $1,086 per year for those who drive less than 6,000 miles per year. That's about $400 less per year than the national average, and total annual savings of nearly 27%. As with many of the other subcategories we've covered, USAA prices are still the lowest—about $150 less than Geico's—so drivers from the military community should consider USAA if they qualify for membership.

Cheapest for Low-Mileage Drivers

Geico

$1,086

National average rate with low mileage

$398

Savings compared to national average

Cheap car insurance with minimal coverage: Geico

If you're looking for cheap auto insurance that meets the state's minimum requirements, Geico is your cheapest option.

Cheapest for Minimum Coverage

Geico

$1,064

National average rate for minimum coverage

$308

Savings compared to national average



Our research shows that most consumers will save money with Geico. On average, a low coverage policy with Geico costs $1,064 per year, $308 less than the national average of $1,372. Geico has also performed well in the Best Car Insurance Company rankings and its sub-rankings.

Despite Geico's low rates, drivers who qualify for USAA membership may want to consider a minimum auto insurance amount. USAA is the only insurance company in our study that offers minimum coverage for less than $1,000 per year.
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