Auto Insurance Guide for 2025
Auto insurance offers protection through liability, collision, and comprehensive coverage. The cheapest car insurance starts at just $43 a month for minimum coverage. Drivers can save up to 40% through usage-based insurance (UBI) programs, which use telematics to track habits like braking, speed, and mileage.
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Table of Contents
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Insurance and Finance Writer
Luke Williams is a finance, insurance, real estate, and home improvement expert based in Philadelphia, Pennsylvania, specializing in writing and researching for consumers. He studied finance, economics, and communications at Pennsylvania State University and graduated with a degree in Corporate Communications. His insurance and finance writing has been featured on Spoxor, The Good Men Project...
Luke Williams
Senior Director of Content
Sara Routhier, Senior Director of Content, has professional experience as an educator, SEO specialist, and content marketer. She has over 10 years of experience in the insurance industry. As a researcher, data nerd, writer, and editor, she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world of insurance....
Sara Routhier
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with Title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Michelle Robbins
Updated September 2025
Auto insurance helps cover the cost of accidents, vehicle damage, and medical bills through essential protections like liability, collision, and comprehensive coverage. Most states require minimum liability car insurance.
- Auto insurance covers liability, collision, comprehensive, and medical costs
- Geico offers the lowest minimum coverage rates starting at just $43 a month
- Save up to 40% with discounts for usage-based insurance (UBI) programs
Auto insurance rates start as low as $43 per month, depending on your age, location, driving record, and vehicle. Many drivers save up to 40% through discounts for safe driving, bundling, low mileage, and usage-based insurance (UBI) programs. Top-rated companies include American Family, Geico, and Nationwide, known for affordable pricing and strong customer satisfaction.
Whether you’re a new driver or renewing your policy, understanding what auto insurance covers can help you choose the best protection at the lowest price. Use our free comparison tool to find the best auto insurance rates today.
Auto Insurance Explained
Auto insurance helps pay for damage or injuries if you’re in a car accident, if your car is stolen, or if it’s damaged by something like weather or fire.
Auto Insurance Coverage in the U.S.| Feature | Description |
|---|---|
| Purpose | Covers costs from accidents, theft, or damage |
| Required By | Mandatory in most states with minimum liability |
| Common Coverages | Liability, collision, comprehensive, uninsured, injury |
| Optional Add-ons | Roadside, rental, gap, custom parts coverage |
| Premium Factors | Based on age, location, record, vehicle, and limits |
| Policy Types | Liability, full, non-owner, usage-based |
| Claims Process | File online, via app, or with an agent |
| Discounts Available | Safe driver, bundle, student, multi-car, paperless |
| Major Providers | Progressive, State Farm, Geico, Liberty Mutual, etc. |
| Who Needs It? | Anyone who drives, leases, or owns a vehicle |
Most states require you to have at least basic coverage, called liability auto insurance. You can also add more protection, like coverage for your own car, help with rental cars, or roadside assistance if your car breaks down.
- Auto Insurance Basics
- How to Cancel an Auto Insurance Policy in 2025
- At-Fault Accident: What it Means & How it Affects Insurance Rates
- What does the Insurance Institute for Highway Safety do?
- What Happens If You Cancel Auto Insurance in 2025 (Risks & Penalties)
- What to Do If You Can’t Afford Your Auto Insurance in 2025 (Follow These 5 Steps)
- When Animals or Natural Disasters Damage Your Vehicle in 2025 (Advice + Coverage Guide)
- What to Do When You’re Denied Insurance Coverage in 2025 (Take These 5 Steps)
- How to Lease a Car When You Can’t Afford to Buy One [Buy vs. Lease Calculator]
- How Self Driving Cars Work
- An Insured Story: These 3,000 People Got Auto Insurance Right
- How to File an Auto Insurance Claim & Win in 2025
- Buckling Up Behaviors: Exploring Americans’ Seatbelt Habits
- How Fire Engines Work
- Traffic Collision Reconstruction
- How Wankel Rotary Engines Work
- How Electric Cars Work
- Disc vs. Drum Brakes
- A Visual Guide to Auto Insurance
- 12 Ways You’re Wasting Money on Your Car in 2025
What you pay each month depends on your age, where you live, your driving record, and the type of car. Some companies give discounts if you drive safely, bundle auto and home insurance, or use automatic payments.
10 Best Auto Insurance Companies
The best car insurance companies give good service, fair prices, and strong coverage. American Family is one of the top choices for great customer support and trust. Geico is another top choice because it offers low prices and easy online tools. See what drivers say in our Geico insurance review.
Best Auto Insurance Companies for Customer Satisfaction| Company | Rank | BBB | J.D. Power | NAIC |
|---|---|---|---|---|
 | #1 | A+ | 692 / 1,000 | 0.26 |
 | #2 | A+ | 692 / 1,000 | 0.52 |
 | #3 | A+ | 728 / 1,000 | 0.9 |
 | #4 | A+ | 692 / 1,000 | 0.75 |
 | #5 | A+ | 672 / 1,000 | 1.11 |
 | #6 | A+ | 706 / 1,000 | 1.32 |
 | #7 | A+ | 691 / 1,000 | 1.02 |
 | #8 | A+ | 684 / 1,000 | 3.96 |
 | #9 | F | 710 / 1,000 | 0.84 |
 | #10 | A- | 717 / 1,000 | 4.28 |
Nationwide also gets high scores for keeping customers happy. Auto-Owners and Farmers are known for helping drivers quickly after accidents. Progressive, Allstate, and Travelers offer many coverage choices and useful discounts. Many driver also trust State Farm and Liberty Mutual for their wide coverage and support.
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Auto Insurance Coverage Rates
Monthly rates for auto insurance depend on whether you choose minimum or full coverage. Geico has the lowest prices, starting at just $43 a month for basic coverage and $114 monthly for full.
Auto Insurance Monthly Rates by Coverage Level| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| $87 | $228 |
| $62 | $166 |
| $47 | $124 |
| $76 | $198 |
| $43 | $114 |
| $96 | $248 |
| $63 | $164 |
| $56 | $150 |
| $47 | $123 |
| $53 | $141 |
Auto-Owners and State Farm also offer great deals, both starting at $47 per month and staying affordable for full coverage. American Family and Nationwide give good value with full coverage for under $170 monthly. Get an auto insurance quote online to see how much coverage costs near you.
Read More: State Farm vs. Farmers, Geico, Progressive, Allstate: The Best?
How Driving Record Affects Your Insurance Rates
Your driving record can change how much you pay each month for insurance. Geico stays the most affordable even if you’ve had an accident, ticket, or DUI, with prices starting at $43. State Farm and Auto-Owners also offer low rates for drivers with clean or imperfect records.
Auto Insurance Monthly Rates by Driving Record| Insurance Company | Clean Record | One Accident | One DUI | One Ticket |
|---|---|---|---|---|
| $87 | $124 | $88 | $103 |
| $62 | $94 | $62 | $73 |
| $47 | $69 | $72 | $57 |
| $76 | $109 | $76 | $95 |
| $43 | $71 | $43 | $56 |
| $96 | $129 | $95 | $116 |
| $63 | $88 | $62 | $75 |
| $56 | $98 | $59 | $74 |
| $47 | $57 | $47 | $53 |
| $53 | $76 | $53 | $72 |
American Family and Nationwide are also helpful for keeping costs down after a driving mistake. These providers are good options for safe drivers and those trying to save after past issues. Learn full details in our American Family Insurance review.
Age and Auto Insurance Rates
Age has a big impact on what you pay for auto insurance. Geico offers the lowest monthly rates for most drivers, with prices as low as $41 for older adults and $50 for younger drivers.
Auto Insurance Monthly Rates by Age| Company | Age 16 | Age 25 | Age 35 | Age 45 | Age 55 | Age 65 |
|---|---|---|---|---|---|---|
| $371 | $102 | $95 | $87 | $82 | $86 |
| $296 | $78 | $73 | $62 | $59 | $61 |
| $260 | $60 | $55 | $47 | $45 | $46 |
| $452 | $98 | $91 | $76 | $72 | $75 |
| $178 | $50 | $46 | $43 | $41 | $42 |
| $464 | $119 | $110 | $96 | $91 | $95 |
| $279 | $81 | $76 | $63 | $59 | $62 |
| $467 | $77 | $72 | $56 | $52 | $55 |
| $208 | $60 | $56 | $47 | $45 | $47 |
| $517 | $62 | $58 | $53 | $50 | $53 |
Auto-Owners and State Farm are also affordable, especially for drivers over 25. American Family is a good choice for teens and young drivers looking for better rates.
Read More: Cheap Auto Insurance for Teens
Cost of Auto Insurance by State
Auto insurance costs can vary widely depending on where you live. Several factors affect these rates, including local accident rates, repair costs, traffic laws, and the level of required coverage in each state. States with lower average claims and fewer accidents tend to offer cheaper premiums.
On the other hand, states like Michigan often have higher rates due to stricter coverage requirements and higher accident-related costs. Knowing your state’s average can help you decide how much coverage you need. Learn how to buy auto insurance and get a good deal.
Ways to Save on Auto Insurance
Car insurance can get expensive, especially if you have a new car or are adding a teen driver. Follow these strategies to make your monthly premiums more manageable.
- Park in a Garage: Companies may offer discounts for parking your vehicle in a garage or covered lot, saving drivers up to 10% with some providers.
- Increase Your Deductibles: Choosing an insurance deductible of $1,000 or more will help lower your monthly rates.
- Qualify for Discounts: Providers apply discounts if you drive less than average, are in the military, or are a full-time student with good grades.
Some of the biggest savings come from safe driver discounts, bundling your auto insurance with your home or renters policy, or insuring more than one car.
Top Auto Insurance Discounts & Average Savings| Discount Type | Savings | Requirements |
|---|---|---|
| Safe Driver | 25% | No violations or accidents in the past 3–5 years |
| Good Student | 15% | Full-time student with at least a B average |
| Bundling | 20% | Combine auto and home or renters insurance |
| Multi-Vehicle | 25% | Insure two or more cars under the same policy |
| Low Mileage | 15% | Drive less than 7,500–12,000 miles per year |
| Defensive Driving | 10% | Complete a state-approved safety course |
| Military | 15% | Must be active duty, veteran, or military family |
| Senior Citizen | 10% | Age 55+ or 65+ depending on the insurer |
| Anti-Theft Device | 10% | Car must have alarm, GPS, or immobilizer |
| Safety Features | 15% | Vehicle must have airbags, ABS, or lane assist |
You can get discounts for your car’s safety features like anti-lock brakes, alarms, or automatic braking. Drivers who stay claim-free, take a defensive driving course, or have good credit can also save money.
Personal details like being a student with good grades, being married, or owning a home may also lead to extra savings. The more of these discounts you qualify for, the more you can cut your monthly bill.
Learn More: Top Ways Drivers are Wasting Money on Their Cars
Usage-Based Auto Insurance
Usage-based insurance (UBI) programs reward safe driving by tracking how you drive using a mobile app or a device in your car. Top programs include Drivewise from Allstate and SmartRide from Nationwide, both offering savings up to 40%.
Top Usage-Based Auto Insurance (UBI) Programs| Company | Program | Savings | System |
|---|---|---|---|
| Drivewise® | 40% | Mobile App |
| KnowYourDrive | 20% | Mobile App |
| TrueRide® | 30% | Mobile App |
 | YourTurn® | 30% | Mobile App |
| RightTrack® | 30% | Plug-in Device |
| SmartRide® | 40% | Mobile App or Plug-in |
| Snapshot® | 30% | Mobile App |
| Drive Safe & Save™ | 30% | Mobile App or Plug-in |
 | TrueLane® | 25% | Mobile App |
| IntelliDrive® | 30% | Mobile App |
Other good programs like Snapshot by Progressive and Drive Safe & Save by State Farm can save you up to 30%. These programs look at things like how hard you brake, how far you drive, and what time you drive. If you’re a safe driver, UBI can be a smart way to pay less.
Read More: Car Insurance Discounts You Can’t Miss
Filing an Auto Insurance Claim
Securing auto insurance is important because it protects you from paying large costs out of pocket when accidents or unexpected events happen. The most common auto insurance claim in the U.S. is for a collision, which isn’t covered by minimum liability insurance.
Most Common Auto Insurance Claims in the U.S.| Coverage Type | Share | Cost Per Claim | Description |
|---|---|---|---|
| Collision | 30% | $4,500 | Vehicle impact |
| Property Damage | 25% | $4,200 | Others’ property |
| Comprehensive | 15% | $2,500 | Theft, weather, fire |
| Bodily Injury | 12% | $20,000 | Injuries to others |
| Personal Injury | 8% | $8,000 | Medical, passengers |
| Uninsured Motorist | 6% | $15,000 | Uninsured driver hit |
| Medical Payments | 3% | $2,500 | Medical, any fault |
| Other Types | 1% | $1,000 | Rental, roadside |
Property damage claims come next at 25%, covering damage you cause to someone else’s car or belongings. Comprehensive claims, at 15%, cover things like theft, weather damage, vandalism, or fire. These are all common situations where drivers need more than minimum liability insurance to help cover big repair or replacement costs.
From fixing your car to paying for someone else’s damage or covering losses from a storm, having the right coverage can save you thousands of dollars. Without auto insurance, even one accident could lead to serious money problems. Browse more details on how to file an auto insurance claim and win each time.
Auto Insurance Claims by State
Every year, states like California and Florida have millions of car accidents and insurance claims, meaning drivers there have a higher chance of getting into a crash. Even in smaller places like Alaska or Delaware, thousands of people still file claims each year.
Annual Accidents & Insurance Claims by State| State | Accidents | Traffic Deaths | Claims | Claim Cost |
|---|---|---|---|---|
| Alabama | 520K | 10,196 | 168K | $53,760 |
| Alaska | 60K | 8,219 | 28K | $13,160 |
| Arizona | 730K | 10,000 | 280K | $106,400 |
| Arkansas | 350K | 11,667 | 125K | $45,000 |
| California | 3.5M | 8,861 | 1.9M | $1,026,000 |
| Colorado | 480K | 8,276 | 360K | $270,000 |
| Connecticut | 290K | 8,056 | 140K | $67,200 |
| Delaware | 150K | 15,152 | 65K | $27,950 |
| Florida | 2.5M | 11,521 | 1.6M | $1,024,000 |
| Georgia | 850K | 7,944 | 790K | $734,700 |
| Hawaii | 120K | 8,571 | 65K | $35,100 |
| Idaho | 230K | 12,105 | 110K | $52,800 |
| Illinois | 950K | 7,540 | 800K | $672,000 |
| Indiana | 690K | 10,147 | 520K | $390,000 |
| Iowa | 300K | 9,375 | 200K | $134,000 |
| Kansas | 310K | 10,690 | 200K | $130,000 |
| Kentucky | 440K | 9,778 | 420K | $403,200 |
| Louisiana | 450K | 9,783 | 420K | $390,600 |
| Maine | 160K | 11,429 | 85K | $45,050 |
| Maryland | 490K | 8,033 | 430K | $378,400 |
| Massachusetts | 680K | 9,855 | 470K | $324,300 |
| Michigan | 830K | 8,300 | 710K | $610,600 |
| Minnesota | 640K | 11,228 | 380K | $224,200 |
| Mississippi | 340K | 11,333 | 230K | $156,400 |
| Missouri | 670K | 10,807 | 540K | $437,400 |
| Montana | 120K | 10,909 | 90K | $67,500 |
| Nebraska | 160K | 8,000 | 130K | $105,300 |
| Nevada | 270K | 8,438 | 260K | $249,600 |
| New Hampshire | 140K | 10,000 | 110K | $86,900 |
| New Jersey | 800K | 8,989 | 720K | $648,000 |
| New Mexico | 200K | 9,524 | 170K | $144,500 |
| New York | 1.1M | 5,641 | 1.1M | $1,100,000 |
| North Carolina | 840K | 7,851 | 850K | $858,500 |
| North Dakota | 90K | 11,539 | 60K | $40,200 |
| Ohio | 900K | 7,692 | 820K | $746,200 |
| Oklahoma | 380K | 9,500 | 350K | $322,000 |
| Oregon | 340K | 7,907 | 330K | $320,100 |
| Pennsylvania | 1.0M | 7,752 | 880K | $774,400 |
| Rhode Island | 120K | 10,909 | 85K | $60,350 |
| South Carolina | 520K | 10,000 | 510K | $499,800 |
| South Dakota | 90K | 10,000 | 70K | $54,600 |
| Tennessee | 700K | 10,000 | 700K | $700,000 |
| Texas | 3.2M | 10,848 | 2.4M | $1,800,000 |
| Utah | 240K | 7,273 | 220K | $202,400 |
| Vermont | 80K | 12,308 | 50K | $31,500 |
| Virginia | 780K | 9,070 | 620K | $496,000 |
| Washington | 750K | 9,615 | 510K | $346,800 |
| West Virginia | 150K | 8,333 | 120K | $96,000 |
| Wisconsin | 650K | 11,017 | 450K | $310,500 |
| Wyoming | 90K | 15,517 | 50K | $28,000 |
The annual accident numbers show how many car crashes happen in each state every year, while the annual claims numbers show how many times drivers file insurance claims to cover those accidents or other damage. No matter where you live, accidents can happen at any time.
Read More: Worst States for Filing Auto Insurance Claims
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Where to Get the Best Auto Insurance Coverage
The most popular auto insurance companies in the U.S. are the ones that cover the most drivers. Progressive is the largest, holding 39% of the market. Find out why so many drivers trust and choose it in our Progressive auto insurance review.
Many drivers choose these companies for their strong customer support, digital tools, and large network of agents or service centers. Bigger providers also tend to offer more discounts, better claims handling, and flexible policy choices, making them popular with drivers in all states.
Choose auto insurance that meets your state’s minimums, covers what you can't afford to fix or replace, and balances a deductible that fits your monthly budget.
Jeff Root Licensed Insurance Agent
Choosing a well-known provider can give peace of mind, especially when dealing with claims or needing fast help on the road. Explore auto insurance quotes from companies near you by entering your ZIP code into our free comparison tool today.
Frequently Asked Questions
How do I find the best auto insurance?
Start by comparing quotes from multiple companies online. Look for providers that offer the coverage you need, have strong customer reviews, and provide discounts for safe driving, bundling, or usage-based programs. Make sure the company has good claims service and financial strength.
What is the main purpose of auto insurance?
The main purpose of auto insurance is to protect you financially after an accident. It helps cover the cost of damage to your car, other people’s property, and medical bills so you’re not stuck paying out of pocket. Explore how medical payments coverage works.
What factors affect auto insurance rates?
Your auto insurance quotes will vary depending on your location, age, and driving record. Credit score and marital status may also impact rates in some states.
Who has the cheapest car insurance?
Geico often offers the lowest minimum coverage rates, starting as low as $43 a month. Other affordable companies include Auto-Owners, State Farm, and American Family. Enter your ZIP code to find out when you can get a the best auto insurance.
How do I choose the best auto insurance company?
First determine how much coverage you need and a budget you can afford, then start comparing providers on auto insurance marketplaces and comparison sites like this one to get quotes. When you find an affordable company, research its customer satisfaction rates and discount list to see if it works for you.
How much liability insurance should you carry on your car?
What is a good amount of car insurance coverage? It depends on your state’s minimum requirements, but many experts recommend carrying higher limits, such as $100,000 per person/$300,000 per accident for bodily injury and at least $50,000 for property damage. Compare liability vs. full coverage auto insurance to better protect your assets.
What does PD mean in auto insurance?
PD stands for Property Damage. It’s part of liability insurance that pays for damage you cause to someone else’s car, building, fence, or other property in an accident.
What is the 15/30/5 rule in auto insurance?
This is a type of liability coverage limit. It means your policy covers up to $15,000 for one person’s injuries, $30,000 total for all injuries in an accident, and $5,000 for property damage. This is the minimum requirement in some states like California.
What does $100k/$300k/$100k mean in car insurance?
This means your liability limits are $100,000 for injuries to one person, $300,000 total for all injuries in one accident, and $100,000 for damage to property. These higher limits give more protection if you’re at fault in a major accident.
Is it better to have collision or comprehensive insurance?
It depends on your needs and budget. Collision covers damage from crashes (like hitting another car), while comprehensive covers non-crash events like theft, fire, or weather. Many drivers choose full coverage because it comes with collision vs. comprehensive auto insurance plus minimum liability requirements.
Can you have car insurance in a different state than your registration?
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