The cheapest car insurance
The cheapest option will likely be your state’s minimum car insurance requirements, so we focused our analysis on those minimums. In many states, this is liability-only auto insurance, which pays for property damage and others’ medical bills from accidents you cause.
The absolute cheapest rate we found for minimum car insurance was an average of $9 per month, or $108 per year. But how much you pay for car insurance will vary depending on which state you live in and how clean your driving history is, among other factors.
Here are the cheapest car insurance companies overall, plus the cheapest options for several driver types:
- The cheapest car insurance company for good drivers: State Farm at $37 per month, on average.
- The cheapest midsize insurance company: Auto-Owners at $28 per month, on average.
- The cheapest car insurance after a speeding ticket: State Farm at $45 per month, on average.
- The cheapest car insurance after an accident: State Farm at $50 per month, on average.
- The cheapest car insurance after a DUI: State Farm at $68 per month, on average.
- The cheapest car insurance for poor credit: Geico at $73 per month, on average.
The cheapest car insurance company overall: State Farm
State Farm is the cheapest major auto insurance company in the nation for good drivers, according to NerdWallet’s 2023 analysis of minimum coverage rates. State Farm’s average annual rate was $450 or about $37 per month. The company also earned a 5-star rating from NerdWallet, and you can read our State Farm auto insurance review to learn why.
Cheapest auto insurance from the largest companies
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| State Farm | $450 | $37 |
| Travelers | $568 | $47 |
| Geico | $603 | $50 |
| Nationwide | $673 | $56 |
| USAA* | $341 | $28 |
| *USAA auto insurance is available only to military, veterans and their families. | ||
How to get cheap car insurance
If you’re looking to save money with the cheapest possible car insurance, it’s essential to compare quotes from multiple insurers. You can use NerdWallet’s car insurance comparison tool to easily shop for cheap auto insurance online. You may find that you already have the most affordable insurance; but prices can change, so check roughly once a year.
These tips could help you get cheap auto insurance rates:
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Ask for discounts. There could be savings from car insurance discounts you’re not taking advantage of. For instance, maybe you now work from home and are driving less frequently than when you bought your policy. Mention that and you might get a low-mileage discount.
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Rethink your deductible. A higher collision and comprehensive deductible might make sense if you rarely drive or are comfortable with the financial risk. Raising your deductible means you’d owe more out of pocket if you had to file a comprehensive or collision claim. But it’s a surefire way to get cheaper car insurance.
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Know when to cut coverage. Don’t strip away coverage just for the sake of cheap auto insurance. But if you drive an older car, you can probably drop comprehensive and collision coverage. These coverage types pay out only up to your car’s current value, minus the deductible.
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Cash in on major life changes. Certain life events could translate to cheaper car insurance, so shop for quotes whenever something major changes in your life. For instance, many companies offer a lower rate for married couples or domestic partners. Or perhaps you moved to a suburb with lower accident and crime rates. Even if you moved to a more expensive area for car insurance, shopping around can help you get cheaper coverage.
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Revisit quotes after your driving record improves. Shop for cheap car insurance quotes online three to five years after any accidents, tickets or moving violations. They may have dropped off your driving record.