Of the nine major insurance providers in our annual study, three companies consistently led the pack with the lowest yearly rates for the driver groups we examined: USAA, Geico and State Farm.
Keep in mind that shopping around and comparing quotes from different insurance companies is the best way to find the cheapest car insurance for you.
What Is the Cheapest Car Insurance Company?
USAA is tough to beat for cheap car insurance, but you need a connection to the military to qualify for coverage. For that reason, we kept USAA’s rates for the sake of comparison, but omitted the company from the bulk of our analysis of the cheapest car insurance providers. USAA earns top ratings from its customers, and it has the lowest annual rates for drivers with a clean driving record or poor credit history. USAA also has the lowest car insurance premiums if you have a speeding ticket or an accident on your driving record.
Geico is the cheapest car insurance company we found for good drivers that have a clean driving record, but lack a military affiliation. If your credit rating needs work, Geico also offers cheaper car insurance than most of the providers in our study.
State Farm is an excellent choice if you need affordable car insurance, but have a less-than-perfect driving record. Our study found that State Farm has the lowest average cost of car insurance after a DUI. Its rates are also among the most affordable if you have a speeding ticket or an accident on your record.
Cheap Car Insurance for Good Drivers: Geico
Though USAA has the cheapest rates for good drivers, Geico is the best choice for most consumers due to USAA’s membership requirements.
Geico’s annual rate of $1,100 represents a savings of about 17% compared with the national average of $1,321. Geico is also one of the best insurance companies in our rankings, with great reviews from actual Geico customers.
Being a safe driver and maintaining a clean record is essential to getting cheap car insurance. Good drivers are less likely to file a claim, so insurance companies offer lower rates than those available to drivers with speeding tickets or crashes in their driving history.
Annual Rates for Good Drivers
Company
Annual Rate
Savings*
National Average
$1,321
-
*Compared to the national average.
Cheap Car Insurance for New Drivers: State Farm and Geico
State Farm and Geico are two of the best car insurance companies in our rankings, with great customer feedback in terms of service and claims satisfaction. These two companies also offer the best rates for young drivers.
.
Cheapest for New Female Drivers
$2,986
National average rate for year-long policy
Cheapest for New Male Drivers
Geico
$3,414
National average rate for year-long policy
Our study shows that in general, rates for 17-year-old females will be lower than rates for males in the same age group.
State Farm comes in with a yearly rate of $2,986 for females at this age, with Geico close behind at $3,111. That’s a savings of 34% with State Farm when compared with the national average. When it comes to males, Geico has the cheaper rate, $3,414, which saves 34% compared with the national average. State Farm is next cheapest, at $3,661.
Annual Rates for New Female Drivers
Company
Annual Rate
Savings*
National Average
$4,515
-
Annual Rates for New Male Drivers
Company
Annual Rate
Savings*
National Average
$5,140
-
*Compared to the national average.
Cheap Car Insurance for Senior Drivers: Geico
Car insurance rates tend to be much less expensive for older drivers than younger drivers. Our study shows that Geico is the cheapest major insurance company for 60-year-old women and men, with average yearly rates of $1,004 and $1,036, respectively.