How to Compare Car Insurance Rates 2024
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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

What are the Cheapest Car Insurance Companies for 2024?

Updated on:
Content was accurate at the time of publication.

State Farm is the cheapest car insurance company for most drivers, charging $124 a month for full coverage and $50 a month for liability coverage, on average.

You might find an even cheaper rate with a regional or local car insurance company, like MMG, Concord or Erie.

Find the Cheapest Car Insurance Quotes in Your Area

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 Among major car insurance companies, State Farm has the cheapest average rate of $1,487 a year for a full-coverage car insurance policy.

 Among local car insurance companies, MMG has the lowest average rate of $902 a year for full coverage.

 State Farm offers the cheapest average rates after a speeding ticket or accident, while Progressive has the cheapest rate after a DUI.

State Farm has the cheapest car insurance among companies that serve the entire U.S., with rates that average $1,487 a year for full-coverage policies.

State Farm has the cheapest liability car insurance for most drivers, too, at an average rate of $597 a year.

USAA is even cheaper for both types, but it only offers insurance to current military members, veterans and their immediate family members.

Cheapest major car insurance companies

CompanyLiability coverageFull coverageLendingTree Rating
State Farm$597$1,4874.5 4.5 stars
Travelers$835$1,9194.4 4.5 stars
American Family$728$1,9204.1 4 stars
Geico$727$1,9373.7 3.5 stars
Progressive$791$2,0323.8 4 stars
Nationwide$963$2,2262.8 3 stars
Allstate$1,158$2,6093.2 3 stars
Farmers$1,188$3,0913.1 3 stars
AAA$1,520$3,835Not Rated
USAA*$398$1,1994.1 4 stars

*Only available to current/former military and their families.

Travelers, American Family and Geico offer the lowest rates among the top 10 car insurance companies in the nation after State Farm and USAA.

MMG is the cheapest regional or local car insurance company, charging an average of $902 a year for a full-coverage car insurance policy.

Paid monthly, MMG’s average rate is $75. Only drivers in eight states can buy car insurance from MMG, though.

Concord, Erie and Texas Farm Bureau are also good companies for cheap local car insurance.

Cheapest local car insurance companies

CompanyLiability coverageFull coverage
MMG$375$902
Concord$478$977
Texas Farm Bureau$401$1,036
Erie$497$1,270
Island Insurance$418$1,319
Acuity$478$1,361
Hanover$336$1,372
Safety$571$1,392
Westfield$439$1,481
Pemco$464$1,483
Mercury$511$1,596
Country Financial$623$1,600
Umialik$598$1,602
Arbella$720$1,629
Co-Op$437$1,635
Grange$570$1,638
Auto-Owners$516$1,690
Shelter$762$1,927
Farm Bureau$548$1,931
Grinnell Mutual$421$2,015
Plymouth Rock$853$2,236
Amica$1,098$2,548
The Hartford$1,007$2,688
UAIC$1,577$2,886
Nodak$553$2,917
Safeway$1,391$3,080
NJM$3,125$3,382

Find the Cheapest Car Insurance Quotes in Your Area

Where you live is one factor that can affect what you pay for car insurance. South Dakota has the cheapest liability car insurance rates on average, $351 a year, while Michigan has the most expensive, at $1,849 a year.

For average rates on full-coverage car insurance policies, Maine drivers usually pay the least, $1,100 a year, and Michigan again pays the most, at $4,638 a year.

Average car insurance rate by state

StateLiability coverageFull coverage
Alabama$717$1,979
Alaska$605$1,532
Arizona$1,079$2,683
Arkansas$622$1,879
California$571$1,867
Colorado$897$2,542
Connecticut$1,088$2,346
Delaware$1,283$2,482
Florida$1,206$2,990
Georgia$790$1,832
Hawaii$609$1,643
Idaho$413$1,227
Illinois$848$2,109
Indiana$533$1,511
Iowa$444$1,663
Kansas$616$1,991
Kentucky$1,183$2,295
Louisiana$948$2,719
Maine$501$1,100
Maryland$1,093$2,051
Massachusetts$757$2,068
Michigan$1,849$4,638
Minnesota$743$1,884
Mississippi$662$1,796
Missouri$686$1,908
Montana$574$2,174
Nebraska$470$1,909
Nevada$1,368$2,958
New Hampshire$537$1,146
New Jersey$1,393$2,236
New Mexico$632$1,953
New York$1,059$2,030
North Carolina$532$1,305
North Dakota$522$1,858
Ohio$532$1,329
Oklahoma$656$2,119
Oregon$1,092$2,115
Pennsylvania$603$1,861
Rhode Island$1,213$2,636
South Carolina$803$1,808
South Dakota$351$2,016
Tennessee$505$1,554
Texas$696$1,833
Utah$989$2,261
Vermont$417$1,232
Virginia$715$1,598
Washington$651$1,534
Washington, D.C.$949$2,082
West Virginia$659$1,701
Wisconsin$503$1,540
Wyoming$370$1,437

Where you buy car insurance also plays a big role in how much you pay.

The cheapest car insurance company in California is Geico, for example, which charges an average of $1,486 a year for a full-coverage policy. That’s 20% cheaper than the state average rate of $1,867 a year.

Cheapest car insurance company in each state

StateCompanyAverage rate
AlabamaState Farm$1,025
AlaskaGeico$1,339
ArizonaState Farm$1,497
ArkansasState Farm$1,209
CaliforniaGeico$1,486
ColoradoState Farm$1,510
ConnecticutState Farm$1,446
DelawareState Farm$1,640
FloridaState Farm$1,956
GeorgiaFarm Bureau$1,334
HawaiiGeico$989
IdahoState Farm$642
IllinoisTravelers$1,319
IndianaAuto-Owners$1,167
IowaState Farm$955
KansasState Farm$1,511
KentuckyFarm Bureau$1,020
LouisianaFarm Bureau$1,740
MaineConcord$847
MarylandGeico$1,563
MassachusettsSafety$1,392
MichiganProgressive$3,040
MinnesotaState Farm$1,261
MississippiState Farm$1,057
MissouriState Farm$1,461
MontanaState Farm$1,697
NebraskaState Farm$1,264
NevadaState Farm$1,438
New HampshireHanover$681
New JerseyGeico$1,163
New MexicoState Farm$1,294
New YorkProgressive$1,124
North CarolinaProgressive$727
North DakotaState Farm$1,225
OhioState Farm$840
OklahomaState Farm$1,316
OregonState Farm$1,244
PennsylvaniaErie$1,161
Rhode IslandTravelers$1,876
South CarolinaAuto-Owners$1,402
South DakotaState Farm$1,121
TennesseeErie$1,288
TexasTexas Farm Bureau$1,036
UtahAuto-Owners$1,364
VermontState Farm$617
VirginiaErie$1,086
WashingtonState Farm$1,038
Washington, D.C.Geico$1,627
West VirginiaState Farm$1,268
WisconsinErie$991
WyomingGeico$965

State Farm is the cheapest car insurance company for young drivers, offering them liability coverage for $1,811 a year on average.

State Farm’s full-coverage rates are also the cheapest for young drivers, averaging $4,128 a year.

However, if you or your family have military ties, get a quote from USAA since its average rates for 18-year-old drivers are even lower than State Farm’s.

Cheapest car insurance for teen drivers

CompanyLiability coverageFull coverage
State Farm$1,811$4,128
Geico$2,044$5,048
American Family$2,364$5,413
Travelers$2,655$5,758
Allstate$3,399$7,668
Nationwide$3,371$7,743
Progressive$3,193$8,495
Farmers$4,227$9,354
USAA*$1,030$2,847

Teen drivers usually pay more for car insurance because they tend to get into more accidents than older drivers.

For the cheapest car insurance as a teen driver, get added to a parent’s policy. The parent’s rate will go up, but the price will still be cheaper than if you got your own coverage.

The cheapest car insurance after a speeding ticket comes from State Farm, which charges these drivers an average of $1,616 a year. This is 9% higher than what State Farm charges drivers with clean records.

Overall, drivers with a speeding ticket on their records pay 23% more for car insurance than drivers with clean records since insurers see them as higher-risk drivers.

CompanyAverage rate
State Farm$1,616
American Family$2,352
Travelers$2,468
Geico$2,493
Progressive$2,606
Nationwide$2,839
Allstate$3,073
Farmers$4,252
USAA*$1,457

A speeding ticket stays on your record for several years, affecting your rates. The specific amount of time depends on where you live.

State Farm is the cheapest car insurance company for drivers with an accident on their records, offering an average rate of $1,843 a year.

Travelers, American Family and Progressive come next in terms of affordability.

CompanyAverage rate
State Farm$1,843
Travelers$2,699
American Family$2,980
Progressive$3,026
Geico$3,341
Nationwide$3,460
Allstate$4,125
Farmers$4,598
USAA*$1,658

Drivers with an accident on their records pay 49% higher car insurance rates, on average, compared to drivers with clean records.

Find the Cheapest Car Insurance Quotes in Your Area

Progressive has the cheapest car insurance for drivers with a DUI (driving under the influence) conviction, charging them an average rate of $2,547 a year.

Travelers also offers these drivers a fairly low average rate of $2,893 a year.

CompanyAverage rate
Progressive$2,547
Travelers$2,893
American Family$3,114
Allstate$3,875
Nationwide$4,376
State Farm$4,402
Geico$4,584
Farmers$4,758
USAA*$2,252

Drivers with a DUI on their records pay an average of 84% more for car insurance than they would with a clean record.

Geico offers the cheapest car insurance rates for drivers with a bad credit score, at $3,093 a year, on average. Nationwide and American Family also offer low rates to these drivers.

CompanyAverage rate
Geico$3,093
Nationwide$3,147
American Family$3,170
Progressive$3,472
Travelers$3,506
Allstate$4,211
Farmers$4,890
State Farm$5,654
USAA*$2,183

Not all states let car insurance companies use your credit score when setting your rate, so your credit may or may not impact what you pay for a policy.

Some of the steps you can take to get cheap car insurance include comparing quotes, finding discounts and bundling multiple policies with one company.

Compare car insurance quotes

Comparing car insurance quotes from several companies side by side is one of the best ways to get the cheapest rate for you. Use the same information for each quote so you can make the most accurate comparison.

Look for discounts

Discounts can help make your car insurance payment a lot lower than it might be otherwise. Companies may offer car insurance discounts for:

  • Automatic payments
  • Defensive driving courses
  • Good grades
  • Insuring several vehicles under the same policy
  • Military ties

Bundle policies

Many insurance companies will give you a discount if you bundle insurance policies with them. The most common examples are bundling auto and home policies or auto and renters, but you can bundle boat, motorcycle and other types of insurance, too.

Raise your deductible

Raising your car insurance deductible usually lowers your premium. It can be a good way to save money — as long as you can afford to pay the deductible amount if you file a claim.

Improve your driving record

If you have a speeding ticket, accident and/or DUI on your driving record, you will often pay more for car insurance than you would with a clean record. Improving your record over time can help lower your payment.

If you’re having a hard time finding cheap car insurance, it’s probably due to one or more of the rate factors that companies look at when calculating your rate.

Car insurance companies consider a number of factors when coming up with your rate, like your:

  • Vehicle’s make and model
  • ZIP code
  • Insurance claim history
  • Age
  • Policy coverage limits
  • Deductible amount

Companies often weigh these factors differently. This is why the quote or rate you get from one company can differ greatly from the rate you get from another.

That’s also why it’s so important to compare quotes from multiple companies when you shop for a car insurance policy.

State Farm has the cheapest car insurance among national companies. It is the cheapest company for typical drivers for both liability and full coverage.

State Farm is also the cheapest car insurance company for drivers with a speed ticket or accident on their records, as well as the cheapest for young drivers.

Progressive is the cheapest company for drivers with a DUI on their records. Geico is the cheapest for those with bad credit.

USAA is the cheapest car insurance company for members of the military and their families in almost all areas. This includes drivers with incidents like accidents and DUIs on their records.

The main risk of cheap car insurance is that it might not provide enough coverage if you cause an accident. This is mostly a worry for those who buy just the minimum amount of coverage their state requires, though.

We recommend buying 100/300/100 liability car insurance at least. This means:

  • $100,000 of bodily injury liability coverage per person
  • $300,000 bodily injury per accident
  • $100,000 property damage coverage

Also, if your car is new or worth a lot of money, get enough collision and comprehensive car insurance to protect you if something damages or destroys your car.

You need to buy at least a minimum amount of car insurance in every state except New Hampshire. And even in New Hampshire, drivers who don’t buy car insurance still need to prove they have enough money to meet the state’s financial responsibility requirements if they cause an accident.

In Virginia, drivers can pay a $500 Uninsured Motor Vehicle fee to get out of buying car insurance.

You need to buy as much car insurance as your state requires. Each state requires drivers to have at least a minimum amount of liability car insurance coverage, except New Hampshire. Some states require uninsured motorist coverage as well. Others require personal injury protection or medical payments coverage.

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Methodology

LendingTree obtains rates from insurance company filings reported to Quadrant Information Services. Rates shown in this article are based on an analysis of more than 800,000 car insurance quotes for sample drivers across the U.S. Your rates may vary.

Unless stated otherwise, our sample driver is a 30-year-old man with good credit and no tickets, accidents or DUIs driving a 2015 Honda Civic EX.

Minimum liability policies provide liability coverage with the state’s required minimum limits.

Full-coverage policies include the following limits and deductibles:

  • Bodily injury liability: $50,000 per person, $100,000 per accident
  • Property damage liability: $25,000
  • Uninsured motorist: $50,000 per person, $100,000 per accident, where required by law
  • Personal injury protection: minimum limits, where required by law
  • Collision: $500 deductible
  • Comprehensive: $500 deductible

Our team of insurance experts rated insurance companies based on several categories. These categories include average rates, discounts, coverage options, third party customer service ratings, and app / website experience. We weighted these categories based on what customers value in an insurance company.

For 3rd party customer service ratings, we included NAIC’s Complaint Index scores and financial strength ratings from A.M. Best. NAIC Complaint Index scores are used to determine how satisfied customers are with their claims, while financial strength ratings from A.M. Best reflect the ability to pay out claims.

*USAA is only available to current and former military members and their families.