Best Cheap Car Insurance Companies

Car insurance can quickly get expensive, especially if you are a high-risk driver or have a DUI on your record.

If you’re looking for the cheapest car insurance companies, it’s important to consider what kind of coverage you’re getting for that low price. Our expert analysis includes industry ratings to offer a well-rounded portrait of each insurance provider so you can make the best choice for your family.

These are the best cheap car insurance companies of 2023.

Best Cheap Car Insurance Companies of January 2023

1. Erie


Erie Insurance
  • Price: $1,082 per year
  • Purchasing Options: Online, phone, local agent
  • Available Discounts: 9

Why We Chose It

Erie is not only convenient and accessible, but it offers some of the most affordable car insurance rates of 2023. 

Pros and Cons

Pros

  • Excellent accessibility
  • Extended coverage

Cons

  • Limited service area
  • No online claims

Overview

Founded in 1925, Erie is a Fortune 500 company still based today out of Pennsylvania. It has a limited reach with service in just D.C. and 12 states: District of Columbia, Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin. Combined, over 13,000 agents are available to help with your policy. 

With Erie, you can purchase several types of auto insurance:

  • Comprehensive
  • Collision
  • Bodily injury liability
  • Property damage liability
  • Uninsured or underinsured motorist coverage
  • Roadside assistance
  • Rental car expense coverage
  • New car protection
  • Motorcycle insurance
  • Pet injury coverage
  • Rideshare insurance
  • Gap insurance

There are just nine car insurance discounts available, but they’re some of the discounts that matter most. They include signature programs like Erie Rate Lock, which protects your rate from inflation, and Erie Auto Plus, which bundles key services like increased policy limits and a waived or diminishing deductible option. Young drivers can benefit from a host of youth- and student-related discounts, while the family can save when everyone signs up with Erie for their insurance. Discounts like these help make already affordable rates even cheaper. 

When you’re ready to purchase, it’s made easy with online, phone, and local agent options. 

Erie holds high scores for customer satisfaction from J.D. Power, performing especially well within the North Central region.1 It also scores high with AM Best for financial strength.

2. Allstate


Allstate
  • Price: $1,674 per year
  • Purchasing Options: Online, phone, local agent
  • Available Discounts: 11

Why We Chose It

Allstate has been a long-standing source of support for young drivers, especially due to its wide-ranging coverage and high number of discounts.

Pros and Cons

Pros

  • Fantastic discounts
  • Expanded coverage
  • Multi-faceted roadside support

Cons

  • Restricted policy terms
  • Poor customer satisfaction
  • Roadside assistance costs extra

Overview

Established in 1931, Allstate has its headquarters in Illinois and provides services in all 50 states and D.C.

Allstate offers several types of insurance:

  • Collision
  • Comprehensive
  • Liability
  • Medical payments
  • Uninsured and underinsured motorist
  • Personal injury protection
  • Custom equipment
  • Personal umbrella 
  • Rental reimbursement
  • Classic car insurance
  • Mexico tourist car insurance
  • Gap insurance

Two types of roadside assistance are also available, for both occasional and heavy drivers, so you don’t have to pay any more than necessary for your insurance. 

Policies are sold in six-month terms, which may be a problem for some drivers accustomed to full 12-month terms. You have multiple ways to save, like the Drivewise program which uses telematics to set your auto insurance rates. Many other discounts are available for students with good grades, bundling home and auto insurance, and insuring a new car, for example.

There are excellent tools to help you navigate and make changes to your policy. In addition to online quotes and phone support, you have the option of meeting a local agent who can work side-by-side with you to ensure all of your concerns are addressed.

Just beware of the customer service: Allstate does not score consistently well among J.D. Power rankings, although AM Best deems it financially sound.31

3. New Jersey Manufacturers


New Jersey Manufacturers Insurance
  • Price: $1,310 per year
  • Purchasing Options: Phone, local agent
  • Available Discounts: 12

Why We Chose It

New Jersey Manufacturers (NJM) Group may not be as big as some of its competitors, but it’s the company to choose if you prioritize safe driving.

Pros and Cons

Pros

  • Financially sound
  • Strong customer satisfaction
  • Offers online quotes

Cons

  • Limited service area
  • Roadside support costs extra
  • Mobile app is not for account management

Overview

As a smaller insurer, New Jersey Manufacturers Group focuses on more of a niche market than other companies, with service in only five states: Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania. Still, NJM brings decades of experience, offering a variety of insurance products since its establishment in 1913. 

NJM has several insurance products available:

  • Liability coverage
  • Medical expenses
  • Underinsured and uninsured motorist coverage
  • Gap insurance
  • Collision
  • Comprehensive
  • Classic and collector car
  • Motorcycle and ATV
  • Boat and personal watercraft

While online quotes are available, policies must be purchased either over the phone or directly through a licensed insurance agent. To help lower the cost of auto insurance, there are 12 discounts available, offering savings for everything from safe driving to being a student or setting up autopay. However, roadside assistance does come at an extra cost, making it even more important that you leverage NJM car insurance discounts wherever possible. 

Once you are an NJM client, you can look forward to highly-rated service from a company that consistently receives high scores for customer satisfaction from J.D. Power.1 NJM also receives superior ratings from AM Best, signifying strong financial stability and efficient claims processing when you need it most.4 Policy management, payments, and claims processing can all be conveniently done online.

4. Auto-Owners


Auto Owners
  • Price: $1,157 per year
  • Purchasing Options: Local agent
  • Available Discounts: 11

Why We Chose It

If you’re a safe driver, Auto-Owners could be the best auto insurance company for you with excellent rates and discounts for drivers with no or few accidents.  

Pros and Cons

Pros

  • Financially strong
  • Exclusive discount programs
  • Multiple other discounts

Cons

  • No quotes online
  • Restricted customer support
  • Limited area served

Overview

Established in 1916, Auto-Owners holds its headquarters in Michigan. It’s a smaller operation, servicing just 26 states, but there are many different types of car insurance available, including boat, ATV, motorcycle, and RV insurance. There are other types of insurance too, such as home, life, pet, and flood, to round out your coverage.

 Auto-Owners offers several options for your auto insurance policy:

  • Collision
  • Comprehensive
  • Liability
  • Uninsured and underinsured motorist
  • Medical payments
  • Personal injury protection
  • Additional expenses
  • Gap insurance
  • Rental car coverage
  • Purchase Price Guarantee
  • Gap coverage
  • Diminished value coverage

Auto-Owners provides quite a few ways to save on your insurance, offering 11 discounts. There’s also the Personal Automobile Plus Package: a combination of several of Auto-Owners’ top services, such as identity theft and cell phone protection. However, if you want a quote for a car insurance policy, you will need to contact an agent directly for assistance.

According to AM Best rankings, Auto-Owners is a financially sound company.5 It also receives above-average scores from J.D. Power for customer satisfaction, making it a safe bet, in addition to an affordable one.1

USAA


USAA
  • Price: $1,471 per year
  • Purchasing Options: Online, phone, agent
  • Available Discounts: 12

Why We Chose It

USAA is a membership-based insurance provider for active-duty and veteran military members and their families. There are several military-specific resources available to help with everything from car buying to auto insurance. 

Pros and Cons

Pros

  • Fantastic customer service ratings
  • Expanded insurance protections
  • Military-specific savings program

Cons

  • USAA membership required
  • No local agent network

Overview

USAA was founded in 1922 and is headquartered in San Antonio, Texas. It provides a full menu of insurance coverage to the military community in all 50 states.

USAA offers the following types of car insurance coverage:

  • Comprehensive
  • Collision
  • Liability
  • Uninsured and underinsured
  • Gap insurance
  • Roadside assistance
  • Rental reimbursement
  • Rideshare insurance

In addition to auto insurance, USAA provides other policies including homeowners, life, property, and even health insurance. If you bundle multiple policies with USAA, you can save money with added discounts. Online quotes are available or you can contact an agent for more assistance. 

In all, USAA has 12 car insurance discounts. This includes discounts for student drivers, good students, and safe drivers. If your parents are USAA policyholders, you can apply a legacy discount to your premium. There are also military-specific discounts, such as a discount when you store your car on a military base and discounts while on deployment, plus savings for low annual mileage. 

Few companies are able to provide the level of customer service and satisfaction that USAA offers. USAA is consistently rated the top provider for customer service from J.D. Power throughout the U.S., although it has a different customer base than most insurance companies.1

Read our full USAA auto insurance review.

Final Verdict

The best car insurance companies offer extensive coverage, flexible policies, affordable pricing, and award-winning customer service. Based on our analysis, Erie is the best cheap auto insurance company because it offers policies that are affordable, accessible, and flexible for your family’s needs. However, Erie services a restricted area of just 12 states and D.C, so you may have to check the rest of the list to find a company that works for you.

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