Cheapest Car Insurance in 2025 (Find Savings With These 10 Companies)

USAA, Geico, and State Farm have the cheapest car insurance. Before you cancel car insurance, these providers can help you save money on coverage while still offering robust protection.

Our Top 10 Company Picks: Cheapest Car Insurance

The top three providers distinguish themselves with competitive pricing — minimum coverage rates start at $22 per month at USAA.

Only military members can buy USAA insurance, but Geico and State have cheap auto insurance starting at $30 in most states.

Enter your ZIP code above to shop for coverage from the top insurers to get the right car insurance at the best price in your city.

Where to Get The Cheapest Car Insurance Rates

USAA stands out with the lowest monthly rates, charging $22 for minimum and $59 for full coverage. However, since coverage is only available to military personnel, Geico and State Farm are the next affordable options.

Car Insurance Monthly Rates by Provider & Coverage Level

On the other end, Liberty Mutual lists the highest monthly rates at $68 for minimum and $174 for full coverage since it provides a broader spectrum of options for potential policyholders.

Minimum coverage is cheaper, but your vehicle will not be protected in case of an accident. USAA, Geico, and State Farm are still the cheapest car insurance companies for full coverage, so use our auto insurance visual guide to find the best balance between cost and coverage.

How to Lower Car Insurance Rates

Choosing the right insurer involves more than just comparing price tags. It requires understanding the full value of what each provider offers. Top insurers are distinguished not only by their competitive rates but also by catering to specific demographics with additional perks and extensive discount opportunities.

State Farm, Travelers, and USAA cater to diverse needs with discounts for good students, accident-free records, and military service. Evaluate these options to significantly reduce your car insurance premiums.

Other top providers such as Allstate, American Family, and Farmers offer a mix of discounts, including multi-policy, safe driving, and early signing. Liberty Mutual, Nationwide, and Progressive also provide savings through unique programs like RightTrack and SmartRide, and discounts for homeowners and safe drivers.

There are numerous ways to reduce costs, from bundling policies to earning rewards for safe driving. Learn how to compare car insurance companies to choose the right provider.

Top 10 Cheapest Car Insurance Companies

USAA has the cheapest auto insurance at $22 per month. Military members exclusively enjoy its low rates and excellent customer service. If you aren’t in the military, compare quotes from Geico and State Farm to find lower rates.

By comparing the top ten cheapest car insurance companies in the country, drivers can find plans that fit their budget and actually save more money on car insurance.

Enter your zip code below to view companies that have cheap insurance rates.

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#1 – USAA: Top Overall Pick

Pros

• Lowest National Rates: Offers some of the cheapest car insurance for military families, starting at $22 a month. Compare quotes in our USAA insurance review.
• Dedicated Military Support: Provides significant discounts that can lower the cost of premiums while drivers are deployed.
• Exceptional Service: Known for exceptional customer service that helps military families access the cheapest car insurance options.

Cons

• Limited to Military Families: Only available to military personnel and their families, which limits accessibility to the cheapest car insurance for others.
• Limited Local Support: Operates primarily online with very few local agents for drivers who prefer to shop for cheap car insurance in person.

#2 – Geico: Cheapest For Safe Drivers

Pros

• Cheapest Monthly Rates: Drivers with clean records and no claims can buy full coverage starting at $80 per month.
• Wide Range of Discounts: Offers a variety of discounts, including federal employee and low mileage discounts, that lead to cheaper car insurance rates.
• Cost-Saving Technology: Streamlined mobile app and website provide cheaper car insurance through tools like online quote comparisons.

Cons

• Variable Customer Service: Even if Geico’s rates are cheap, the quality of its customer service varies. Find out everything you need to know about Geico before you buy.
• Basic Coverage Options: Geico lacks add-ons that many drivers need, like gap insurance.

#3 – State Farm: Best for Local Agents

Pros

• Local Agent Deal Support: Provides personalized service to help drivers find the cheapest car insurance rates through local agents.
• User-Friendly Mobile App: Facilitates management of policies and claims, supporting the ongoing affordability of car insurance.
• Usage-Based Savings: Drive Safe & Save tracks good driving habits for discounts and won’t raise your rates if you speed or brake too hard. See how it works in our  State Farm review.

Cons

• Variable Regional Availability: State Farm agents may not write new car insurance policies in Massachusetts, Rhode Island, Florida, or California.
• Reliance on Discounts: Without qualifying for discounts, customers might not get the cheapest car insurance rates available.

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#4 – Travelers: Best for Industry Experience

Pros

• Reliable Market Experience: Over 100 years in the insurance industry gives Travelers agents an edge over the competition when it comes to finding the cheapest car insurance.
• Financially-Driven Stability: Its A++ financial rating supports cheap car insurance with reliable claims payments. See more company ratings in our Travelers auto insurance review.
• Flexible Discount Options: Offers multiple discounts that help customers secure cheaper car insurance rates, including for electric vehicles and teen drivers.

Cons

• Comprehensive Rate Increases: Adding more comprehensive options may come at a higher price than with other cheap auto insurance companies.
• Poor Claims Handling: Travelers ranks in the bottom five for claims satisfaction in annual J.D. Power customer surveys.

#5 – Progressive: Best for Budget Shoppers

Pros

• Flexible Rate Structures: Online features like the Name Your Price tool make it easy for drivers to find the cheapest car insurance.
• Wide Driver Eligibility: Progressive offers cheap car insurance to drivers with less-than-perfect records. Read everything you need to know about Progressive insurance to learn how to qualify.
• National Coverage: Progressive sells cheap auto insurance in all 50 states. Minimum coverage starts for $39 a month.

Cons

• Negative Claims Reviews: Progressive has the worst claims handling out of the top ten cheapest car insurance companies on this list.
• Renewal Cost Fluctuations: Some customers report unexpected rate increases at renewal, losing their cheap car insurance savings.

#6 – American Family: Cheapest for Loyal Customers

Pros

• Loyalty-Driven Rewards: Long-term customers can benefit from loyalty discounts, and teen drivers get cheaper car insurance rates if their parents have an AmFam policy.
• Broad Acceptance: Welcomes a wide range of drivers, including high-risk drivers who need SR-22 insurance and young drivers under 21.
• High Customer Satisfaction: AmFam customer service and claims handling are well-reviewed in most regions, supporting its affordable coverage.

Cons

• Regional Availability: American Family car insurance coverage is not available in every state. Find out if it’s near you in our American Family Insurance review.
• Complex Policy Management: Managing highly customizable policies can be complex, potentially leading to difficulties in maintaining the cheapest rates.

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#7 – Nationwide: Cheapest Vanishing Deductible

Pros

• Shrinking Deductibles: Nationwide reduces deductibles by $50 every six months if drivers go without a claim to help reduce out-of-pocket insurance costs.
• Reliable Financial Stability: View our Nationwide insurance review to see how Nationwide’s financial strength ensures reliable and consistently affordable pricing.
• Usage-Based Discount: Save up to 40% with safe driving habits using Nationwide SmartRide to track things like speeding, braking, and mileage.

Cons

• Regional Availability: Despite its name, Nationwide car insurance is only sold in 46 states.
• Expensive Monthly Rates: Features like vanishing deductibles might come with initially higher costs, potentially making it less affordable compared to other cheap car insurance options.

#8 – Farmers: Cheapest With Insurance Discounts

Pros

• Cheap With Discounts: Farmers has more discounts than other cheap car insurance companies, and drivers who bundle various types of policies can achieve significant savings.
• Personalized Support: Local agents are available to help customers navigate options and secure the cheapest car insurance deals.
• Uncommon Coverages: Farmers provides cheap car insurance add-ons for rideshare insurance, glass replacement, and custom parts coverage.

Cons

• Complex Customization Costs: Customizing coverage can sometimes result in higher costs. Here’s everything you need to know about Farmers Insurance to see if its policies are right for you.
• Regional Rate Fluctuations: Premiums can vary widely depending on the location, which may impact the affordability of the cheapest car insurance in certain areas.

#9 – Allstate: Cheapest Comprehensive Coverage

Pros

• Comprehensive Policies: Our Allstate insurance review covers how policy options can be adjusted to fit your budget while securing comprehensive protection.
• Long List of Discounts: Various discounts are available to help reduce premiums, making it easier to find the cheapest car insurance.
• Robust Agent Network: A Widespread local agent network can negotiate the best, cheapest car insurance deals for new policyholders.

Cons

• Increased Coverage Costs: Comprehensive options can come at a higher cost of $61 per month, more than double the average rates from the top three companies.
• Variable Customer Service: Allstate ranks lower in claims satisfaction, and drivers in different regions have mixed reviews regarding local agent service.

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#10 – Liberty Mutual: Cheapest for Multiple Policies

Pros

• Substantial Multi-Policy Savings: Drivers who bundle auto with home or renters insurance get some of the cheapest car insurance rates.
• Flexible Add-on Coverage: Use our Liberty Mutual insurance review to find flexible coverage add-ons, like new car replacement and classic car insurance.
• Educator Perks: Teachers qualify for additional coverage up to $2,500 for school-related items damaged in a covered event.

Cons

• Higher Base Rates: Initial rates with Liberty Mutual are usually higher than other cheap auto insurance companies on this list.
• High Number of Complaints: Liberty Mutual auto insurance receives twice as many complaints as other cheap car insurance companies.

Finding Affordable Car Insurance Near You

USAA, Geico, and State Farm stand out as the cheapest car insurance companies. USAA and State Farm receive high marks for their robust local agent networks and extensive discount options, while Geico is the cheapest for safe drivers in more states.

Affordable auto insurance starts at $22 per month, but your rates could go up at renewal, even with the cheapest providers. Start shopping for the best liability-only car insurance with our free quote comparison tool. Enter your ZIP code below to begin.

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