Our Home Media study found that companies with the cheapest car insurance rates in 2022 include USAA, Erie Insurance, State Farm, Geico and Progressive.
Just because you’re required to have auto insurance doesn’t mean you have to pay a lot to get it. There are many ways to find the cheapest car insurance available to you so you can protect your vehicle and your wallet at the same time.
We at the Home Media reviews team have researched dozens of the best car insurance providers to find companies that provide both reliable and affordable car insurance. We’ll cover our top picks in this guide.
Cheapest Car Insurance Rates
According to our cost estimate data, the average 35-year-old driver with good credit and a clean driving history pays about $1,730 per year or $144 per month on average for full coverage car insurance in 2022. For minimum liability coverage, the average rate is $635 per year or $53 per month.
Cheapest Car Insurance by State
However, some states have cheaper car insurance than others. Below you can get a general idea of how states rank on average costs.
In some states, the smaller, local companies offer the cheapest car insurance. In others, national providers offer the best rates. One company that may be expensive in Nevada may offer some of the lowest rates available in Pennsylvania. While USAA is often the cheapest provider in most states, it’s not available to everyone due to eligibility requirements.
Cheapest Minimum Liability Insurance by State
Below is the cheapest minimum liability company in each state.
| State | Car Insurance Company* | Annual Cost Estimate |
|---|---|---|
| Alabama | Geico | $360 |
| Alaska | Allstate | $291 |
| Arizona | Auto-Owners | $359 |
| Arkansas | Southern Farm Bureau | $307 |
| California | Geico | $398 |
| Colorado | Southern Farm Bureau | $245 |
| Connecticut | Geico | $489 |
| Delaware | State Farm | $599 |
| District of Columbia | Chubb Limited | $359 |
| Florida | Geico | $586 |
| Georgia | Auto-Owners | $381 |
| Hawaii | Geico | $340 |
| Idaho | Auto-Owners | $181 |
| Illinois | Country Financial | $328 |
| Indiana | Auto-Owners | $318 |
| Iowa | State Farm | $198 |
| Kansas | Nationwide | $324 |
| Kentucky | State Farm | $381 |
| Louisiana | Southern Farm Bureau | $502 |
| Maine | Auto-Owners | $215 |
| Maryland | Geico | $468 |
| Massachusetts | The Hanover | $434 |
| Michigan | Auto-Owners | $649 |
| Minnesota | Auto-Owners | $353 |
| Mississippi | National General | $244 |
| Missouri | Missouri Farm Bureau | $385 |
| Montana | Progressive | $215 |
| Nebraska | Auto-Owners | $216 |
| Nevada | State Farm | $614 |
| New Hampshire | Auto-Owners | $211 |
| New Jersey | Geico | $565 |
| New Mexico | Central Mutual Insurance | $275 |
| New York | Progressive | $766 |
| North Carolina | Nationwide | $321 |
| North Dakota | North Star | $267 |
| Ohio | Auto-Owners | $266 |
| Oklahoma | American Farmers & Ranchers | $329 |
| Oregon | State Farm | $503 |
| Pennsylvania | Travelers | $338 |
| Rhode Island | Travelers | $561 |
| South Carolina | American National | $241 |
| South Dakota | Farmers Mutual of Nebraska | $171 |
| Tennessee | Tennessee Farm Bureau | $318 |
| Texas | Texas Farm Bureau | $348 |
| Utah | Geico | $471 |
| Vermont | Union Mutual | $200 |
| Virginia | Allstate | $414 |
| Washington | Pemco Mutual | $271 |
| West Virginia | Erie Insurance | $293 |
| Wisconsin | Erie Insurance | $292 |
| Wyoming | Geico | $188 |
*USAA offered the cheapest rates across many states, but given that coverage is only available to military members and their families, its cost data is not provided in this table.
Cheapest Full Coverage Insurance by State
Below is the cheapest full coverage insurance company in each state.
| State | Car Insurance Company* | Annual Cost Estimate |
|---|---|---|
| Alabama | Nationwide | $1,108 |
| Alaska | Geico | $1,084 |
| Arizona | Geico | $1,071 |
| Arkansas | State Farm | $1,223 |
| California | Progressive | $1,460 |
| Colorado | Geico | $1,119 |
| Connecticut | Geico | $891 |
| Delaware | State Farm | $1,265 |
| District of Columbia | Geico | $939 |
| Florida | Geico | $1,937 |
| Georgia | Geico | $1,238 |
| Hawaii | Allstate | $1,404 |
| Idaho | State Farm | $679 |
| Illinois | Country Financial | $994 |
| Indiana | Geico | $806 |
| Iowa | State Farm | $843 |
| Kansas | Nationwide | $961 |
| Kentucky | Geico | $1,127 |
| Louisiana | Southern Farm Bureau | $1,960 |
| Maine | Auto-Owners | $557 |
| Maryland | Geico | $1,100 |
| Massachusetts | Progressive | $1,922 |
| Michigan | Progressive | $1,530 |
| Minnesota | State Farm | $1,228 |
| Mississippi | National General | $910 |
| Missouri | State Farm | $1,339 |
| Montana | Progressive | $998 |
| Nebraska | Farmers Mutual Ins Co of NE | $1,261 |
| Nevada | Geico | $1,243 |
| New Hampshire | State Farm | $851 |
| New Jersey | Geico | $1,359 |
| New Mexico | Geico | $973 |
| New York | Progressive | $1,300 |
| North Carolina | Nationwide | $968 |
| North Dakota | State Farm | $1,109 |
| Ohio | Grange Mutual | $738 |
| Oklahoma | State Farm | $1,251 |
| Oregon | State Farm | $1,000 |
| Pennsylvania | Nationwide | $1,107 |
| Rhode Island | Geico | $1,429 |
| South Carolina | American National | $678 |
| South Dakota | American Family | $1,288 |
| Tennessee | State Farm | $1,042 |
| Texas | Texas Farm Bureau | $1,013 |
| Utah | Geico | $978 |
| Vermont | State Farm | $757 |
| Virginia | Erie Insurance | $941 |
| Washington | Pemco Mutual | $1,193 |
| West Virginia | Nationwide | $1,031 |
| Wisconsin | Geico | $738 |
| Wyoming | American National | $877 |
*USAA offered the cheapest rates across many states, but given that coverage is only available to military members and their families, its cost data is not provided in this table.
States With the Cheapest Car Insurance
Below are the five least expensive states for full coverage car insurance:
| State | Annual Cost Estimate | Difference from National Average |
|---|---|---|
| ME | $964 | -44% |
| OH | $1,027 | -41% |
| VT | $1,056 | -39% |
| ID | $1,069 | -38% |
| VA | $1,142 | -34% |
Most Expensive Car Insurance by State
And here are the top five most expensive states for full coverage car insurance:
| State | Annual Cost Estimate | Difference from National Average |
|---|---|---|
| MI | $3,785 | 119% |
| CT | $2,999 | 73% |
| FL | $2,947 | 70% |
| NY | $2,783 | 61% |
| LA | $2,783 | 61% |
State average costs can only tell you so much. One reason for this is because, even within a state, auto insurance rates can vary considerably. The provider that’s typically the cheapest car insurance company in a state might not be the cheapest in every zip code.
Cheapest Car Insurance for Drivers With a Recent Accident
Not everyone has the ideal driving history and situation to get the cheapest rates. Below, you can see some popular providers’ average full coverage car insurance rates for drivers with a recent accident:
| Car Insurance Company | Monthly Rate Estimate | Annual Rate Estimate |
|---|---|---|
| USAA | $119 | $1,428 |
| State Farm | $139 | $1,671 |
| Geico | $202 | $2,427 |
| Progressive | $206 | $2,471 |
| Nationwide | $212 | $2,545 |
| Allstate | $317 | $3,798 |
Cheapest Car Insurance After a DUI
Getting convicted of a DUI will lead to a significant increase in car insurance rates. In fact, the average rate increase after one DUI is over 60% nationally. This number varies in different regions of the country and among providers.
Below are the cheapest monthly car insurance rates for drivers who have had one DUI compared to rates for those without a DUI:
| Insurance Company | Monthly Estimate for 1 DUI | Monthly Estimate for No DUI |
|---|---|---|
| State Farm | $146 | $95 |
| Progressive | $147 | $116 |
| USAA | $153 | $84 |
| Geico | $281 | $113 |
| Nationwide | $287 | $128 |
| Allstate | $356 | $202 |
Cheapest Car Insurance for Drivers With Bad Credit
Factors outside of your driving record can influence your car insurance premiums. To help calculate auto insurance rates, many providers use credit-based insurance scores. While a credit-based score includes the same factors as a regular credit score, including payment history and debt, the two scores weigh these factors differently.
Insurers aren’t allowed to use credit scores to help determine auto insurance rates in California, Hawaii, Massachusetts and Michigan (these states were excluded from this part of our analysis). That said, having a poor credit score can make it harder to get cheap car insurance in most other states. Having poor credit can increase rates almost as much (and sometimes more than) being convicted of a DUI.
Regardless of your credit score, you should get quotes from providers to find the cheapest car insurance. Here’s how rate estimates for some top providers change based on whether drivers have good or bad credit:
| Car Insurance Company | Monthly Cost Estimate with Good Credit | Monthly Cost Estimate with Poor Credit | Rate Increase for Poor Credit |
|---|---|---|---|
| Nationwide | $151 | $186 | 23% |
| Geico | $132 | $173 | 31% |
| Allstate | $235 | $314 | 34% |
| Progressive | $144 | $210 | 46% |
| USAA | $98 | $151 | 54% |
| State Farm | $153 | $301 | 97% |
Car Insurance Rates by Age
On average, teenagers and young adults pay the most for car insurance. Rates generally start to decrease as you get older, drive better and gain more road experience. Rates begin to decrease at around age 25, level off around age 35 and then increase again after age 65.
Because providers view drivers without a recent driving history as more risky to cover, it’s usually more difficult for new drivers to get cheap car insurance. Drivers in this category include those with new licenses and lapses in car insurance, and as well as visitors and immigrants to the U.S.
Until you have a more established driving record, it may be cheaper for you to stay on a family member’s car insurance policy at first. After that, compare rates from companies when your policy is up for renewal.
Here’s how average full coverage rates change based on age:
| Age | Annual Cost Estimate | Monthly Cost Estimate |
|---|---|---|
| 16 | $6,912 | $576 |
| 17 | $5,612 | $468 |
| 18 | $4,958 | $413 |
| 19 | $3,708 | $309 |
| 21 | $2,786 | $232 |
| 25 | $2,019 | $168 |
| 30 | $1,831 | $153 |
| 35 | $1,785 | $149 |
| 40 | $1,755 | $146 |
| 45 | $1,730 | $144 |
| 50 | $1,658 | $138 |
| 55 | $1,609 | $134 |
| 65 | $1,648 | $137 |
| 75 | $1,912 | $159 |
Cheapest Car Insurance for 16-Year-Olds
Sixteen-year-olds pay around $6,912 for individual full coverage policies on average, but they can find much cheaper rates from providers like Erie, Auto-Owners and State Farm.
| Car Insurance Company | Annual Rate Estimate | Monthly Rate Estimate |
|---|---|---|
| Erie Insurance | $3,410 | $284 |
| Auto-Owners | $3,533 | $294 |
| State Farm | $4,146 | $345 |
| Geico | $4,466 | $372 |
| Nationwide | $4,567 | $381 |
Cheapest Car Insurance for 18-Year-Olds
Our estimates show 18-year-olds pay about $4,958 per year for insurance. However, cheaper rates can be had with Erie, USAA, Auto-Owners and Geico.
| Car Insurance Company | Annual Rate Estimate | Monthly Rate Estimate |
|---|---|---|
| Erie insurance | $2,888 | $241 |
| USAA | $2,897 | $241 |
| Auto-Owners | $2,923 | $244 |
| Geico | $3,161 | $263 |
| State Farm | $3,340 | $278 |
Cheapest Car Insurance for 21-Year-Olds
Car insurance rates for 21-year-olds decline to $2,786 per year on average. The cheapest providers offer full-coverage rates under $2,000 per year.
| Car Insurance Company | Annual Rate Estimate | Monthly Rate Estimate |
|---|---|---|
| USAA | $1,609 | $134 |
| Geico | $1,844 | $154 |
| Auto-Owners | $2,074 | $173 |
| Erie Insurance | $2,103 | $175 |
| Nationwide | $2,147 | $179 |
Cheapest Car Insurance for 25-Year-Olds
Twenty-five-year-olds only pay slightly more than middle-aged drivers for car insurance. Our estimates show full coverage car insurance costs about $2,019 per year on average for this age group.
| Car Insurance Company | Annual Rate Estimate | Monthly Rate Estimate |
|---|---|---|
| USAA | $1,292 | $108 |
| Geico | $1,420 | $118 |
| Erie Insurance | $1,523 | $127 |
| Nationwide | $1,556 | $130 |
| Auto-Owners | $1,590 | $132 |
Cheapest Car Insurance for Seniors
Rates rise slightly as drivers enter their senior years since the risk of accident also rises. Average rates for 65-year-olds are around $1,648 per year.
| Car Insurance Company | Annual Rate Estimate | Monthly Rate Estimate |
|---|---|---|
| USAA | $1,057 | $88 |
| Erie Insurance | $1,219 | $102 |
| Geico | $1,227 | $102 |
| Auto-Owners | $1,247 | $104 |
| Nationwide | $1,263 | $105 |
What How Much Car Insurance Do You Need?
Your car insurance rates largely depend on the level of coverage you want. Your state requires a certain level of bodily injury and property damage liability car insurance (unless you live in New Hampshire or Virgina). States can also require underinsured/uninsured motorist coverage and medical coverage. No state requires you to carry collision insurance or comprehensive insurance, so you’ll have to decide if you want the extra protection these options offer.
In our 2022 car insurance survey, 67% of the 1,000 respondents polled said they usually buy full coverage insurance, which includes liability, collision and comprehensive coverage. Nearly 37% said they would buy full coverage with low limits, while just over 30% reported they would purchase full coverage insurance with high limits.
If you finance your vehicle, your lender will likely require you to carry full coverage until your auto loan is paid off.
Types of Car Insurance
Below are some of the main types of car insurance coverage and their requirements:
| Type of Car Insurance Coverage | Requirements | Recommended Coverage Level |
|---|---|---|
| Property damage liability | Required in every state except New Hampshire and Virginia | Recommended per-accident limits close to your net worth |
| Bodily injury liability | Required in every state except Florida, New Hampshire and Virginia | Recommended per-accident limits close to your net worth |
| Collision and comprehensive | Likely required if you have auto financing or lease a vehicle | Recommended if your vehicle is valued at $3,000 or more |
| Uninsured and underinsured motorist coverage | Required in 22 states | Recommended per-accident limit close to your net worth if you don’t have collision and personal injury protection |
| Personal injury protection (PIP) or medical payments | Required in 14 states | Recommended if you have high health deductibles or co-pays or don’t have health insurance at all |
| Gap insurance | Optional unless required by the terms of your loan or lease agreement (often required if your vehicle is less than three years old) | Enough to cover the difference between the loan and the car’s depreciating value by the third year |
Car Insurance Rates
It’s important to keep in mind that car insurance rates are heavily personalized, as insurance companies take numerous factors into account when determining what you should pay for a policy. Your rates will depend on factors such as your age, location, credit score and vehicle and driving history, as well as the level of coverage you choose.
For example, while there is more risk in choosing less coverage, buying a minimum coverage policy could save you a substantial amount on car insurance. Also, if you have a clean driving record, you’ll usually pay much less than drivers with an accident history.
Because insurers heavily rely on your driving record to determine pricing, infractions like a DUI, a speeding ticket or an at-fault accident can make it more difficult to find cheap car insurance (or even purchase a policy in some cases).
Having a DUI will make your rates jump, and you’ll be deemed “high risk” by insurance companies. Having multiple at-fault accidents lands you in the high-risk category, too. Minor traffic violations like speeding tickets increase rates but to a lesser degree.
Factors That Affect Car Insurance Rates
The table below contains a comprehensive list of factors that affect your insurance rates:
| Factor | How It Affects Your Car Insurance Premium |
|---|---|
| Age | People generally have fewer accidents as they age and gain driving experience (up to a point). Teen drivers pay the most, followed by drivers under 25. |
| Marital status | Married drivers tend to have fewer accidents, so they pay less for car insurance. |
| Car make and model | Cars that cost more to repair also cost more to insure. This applies to collision and comprehensive insurance, which cover your car. Safety equipment such as seatbelts and air bags can affect the price as well. |
| Annual mileage | People who commute long distances and put many miles on their cars pay higher insurance prices. |
| Driving record | A clean driving record can help you secure cheaper rates and reward you with good driver discounts. Accidents, speeding tickets and other vehicle-related violations can lead to rate increases no matter what provider you choose. |
| Credit history | Most states allow car insurance companies to consider your credit history when determining prices. Poor credit will make your rates go up, and good credit will make them decrease. |
| Zip code | Urban areas have higher rates of theft, accidents and vandalism, so drivers in cities pay the highest rates. Parking in a garage can sometimes reduce your rate. |
| State requirements | States vary widely in how much coverage is required, meaning you’ll generally pay more in states that require drivers to carry more types of insurance or higher coverage limits. |
| Desired coverage | Car insurance rates rise as you add more types of coverage or choose higher coverage limits. Drivers only looking for their state’s minimum coverage, like basic liability coverage, will generally have the cheapest car insurance rates. |
| Deductible | A high deductible will reduce your premium and vice versa. |
Even though these factors ultimately determine your rate, keep in mind that the best way to find the cheapest insurance available to you is to shop around and compare quotes from providers.