How to find cheap auto insurance companies

Finding a cheap auto insurance company doesn’t have to be hard. You might be surprised when you compare auto insurance to find that the cheapest auto insurance companies are often also some of the biggest and best-known insurance companies out there. What are the cheapest auto insurance companies? While rates will vary depending on factors like your driving record, averages can give you a good idea of what to expect.

So what do the rates look like from the best auto insurance companies out there? Let’s take a look at the average cost of car insurance from the top 10 insurance companies.

Insurance CompanyAverage Annual RatesAverage Monthly RatesDifference Compared to
National Average
Annual Rates
Allstate$4,532.96$377.75+23.82%
American Family$3,698.77$308.23+1.03%
Farmers$3,907.99$325.67+6.75%
GEICO$3,073.66$256.14-16.04%
Liberty Mutual$5,295.55$441.30+44.65%
Nationwide$3,187.20$265.60-12.94%
Progressive$3,935.36$327.95+7.5%
State Farm$2,731.48$227.62-25.39%
Travelers$3,729.32$310.78+1.87%
USAA
(Military & Family Members)
$2,489.49$207.46-32%
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USAA has the lowest average rates but is only available to military members and their families. Fortunately, there are other cheap options among the biggest auto insurance companies, including GEICO and State Farm. Surprised to see State Farm listed? They’re the biggest car insurance company in the country, and they often also have some of the lowest rates. That’s partly because being so big means they can spread the risk around and afford to charge less.

The company that’s cheapest for one person may not be the cheapest for another. It’s important to remember that just because one company has high rates on average doesn’t mean it might not have cheap insurance rates for you.

There are a lot of factors that insurance companies use to determine what each person pays for their auto insurance. These include where you live, what car you drive, and your driving record. The important thing to remember is that while auto insurance companies may all look at the same factors to determine rates, they don’t all weigh those factors the same way. That means that while a speeding ticket may mean high rates at one company, that same speeding ticket may not have as much impact at another company. Some companies may ding drivers for having a long commute while others don’t. And young drivers may get a better rate from one company than another.

Finding a cheap insurance company is about looking for a company where all of your specific factors add up to the best price. The best way to find out which company has the cheapest rates for you is to shop around and compare.

What about budget auto insurance companies? You’ve probably seen ads for companies promising rock bottom pricing, no down payments, and low monthly payments. There’s nothing wrong with choosing a budget insurance company for cheap auto insurance, but there are a few things to keep in mind.

  • Cheap insurance rates may mean bare-bones coverage. If that’s what you want, that’s ok – just make sure you know what you’re getting.
  • A cheap rate doesn’t always mean a good company. Read company reviews and check on any insurance company’s reputation before you buy.
  • Some companies have low auto insurance quotes that aren’t the rate you will actually get. Make sure the quote is based on enough information about you, your cars, and your driving record to be accurate and prevent any surprises.

There are plenty of ways to get a cheaper insurance rate without cutting coverage, increasing deductibles, or choosing a company with a questionable reputation. Most insurance companies offer a long list of discounts, and you’d be surprised how much you can save with simple steps like bundling your coverage or asking about other available discounts. Don’t assume that your insurance company has applied every discount you qualify for automatically, it always pays to ask.

Any company can be a cheap car insurance company if they’re right for you. Comparing car insurance rates online lets you see multiple quotes from companies with cheap rates and a name you can trust, too. There’s no easier way to save.