What car Insurance is the Cheapest? Insurers with the lowest average premiums are those that offer low-cost policies that may be suitable for a wide variety of drivers.
Our analysis shows that the lowest annual rates are on average offered by USAA and Geico, as well as State Farm, among the top Cheap Car Insurance Companies in our 2023 rating.
Cheapest Car Insurance Company in Every State
If you’re looking for the cheapest car insurance in your area, we’ve got you covered. We looked at the average annual rates for 10 of the biggest car insurance companies in the US and found that the average annual rate is just over $1,500.
Of the seven insurers we looked at, seven have annual average rates that are lower than the US average. That means you don’t have to worry about paying more than you have to.
Read Also: Multi-Unit Property Insurance
AAA, Farmers, and Allstate are the only ones with rates that are higher than the national average. We’ve broken down the rates by state, so you can get an idea of how much you’ll pay for your policy.
Cheap Car Insurance for Good Drivers
If you have a clean driving record, you’re likely to save the most when choosing Geico — unless you’re eligible for a USAA membership, in which case you’ll need to connect with the military.
Geico offers an average annual rate of $1,250 for good drivers, which is just over 19% lower than the national average.
Regardless of which insurance company you select, your driving record plays a big role in how much you’ll pay for car insurance premiums. Traffic violations, like speeding tickets and accidents, can have a significant impact on your rates.
A clean driving record doesn’t just mean lower rates, however. In some cases, you may even be able to earn a premium discount.
Read Also: Best Places To Invest In Multifamily Real Estate
Cheap Car Insurance for Teen Drivers
Geico, State Farm, and USAA all offer the lowest teen driver insurance rates in our analysis. Geico has the lowest teen driver rates among the companies that we looked at.
State Farm has the lowest car insurance rates for the military community.
The average teen driver rate for Geico is $3,279 per year, which is 35% lower than the national rate. That’s $2,742 less than the average teen male rate.
State Farm also has the lowest teen car insurance rates for female drivers. The average teen car insurance rate for State Farm is $3,483 per year, or 35% less than the average car insurance rate for the national average.
For male teen drivers, the average rate is $4,731 per year, or 34% less than the state average.
Read Also: Best Cities For Multifamily Investing
Cheap Car Insurance for Senior Drivers
When it comes to car insurance rates, senior drivers have some of the best deals among the groups we looked at. If you’re not a USAA member, State Farm has the lowest average annual rates for senior drivers, according to our analysis.
For both married men and women aged 60 and over, the average State Farm annual rate for senior drivers is just over $1,000.
That’s just over $100 less than the average national rate for women 60 and over, and just over $200 less than the average nationwide rate for men.
Cheap Car Insurance for the Military Community
There are a variety of car insurance discounts available to current and former members of the armed forces, depending on the type of service they have.
Many car insurance companies offer discounts to current and former active-duty members of the military, as well as to current and former veterans.
Read Also: Best Insurance Jobs From Home
One of the companies in our study that offers car insurance products specifically for the military community is USAA. USAA has some of the best rates in our study across a variety of categories.
For example, USAA offers the lowest rates in our study for motorists with a clean driving record, which is almost 34% lower than the national average, and it’s the cheapest option for those with just one speeding violation on their record or an accident. USAA also offers the lowest car insurance rates for drivers looking for minimum coverage.
Cheap Car Insurance After a Speeding Ticket
A speeding ticket can have a long-term effect on your car insurance rates, so it’s important to consider your options when it comes to speeding ticket coverage.
When it comes to speeding tickets, State Farm is one of the cheapest auto insurance companies on our list of the cheapest car insurance companies of 2023. (USAA isn’t on our list, but that doesn’t mean it’s a bad deal.)
If you’re a State Farm policyholder, you’re in luck. The company’s single speeding violation rates are the lowest among the insurance companies we’ve looked at, with only a few exceptions.
The average State Farm premium for a single speeding ticket is $1.413 per year, which is $134 more than the average State Farm annual premium for clean driving record drivers. That’s an increase of about 10% from our data.
Read Also: Do Insurance Companies Record Calls
Nationwide, the average State Farm rate for a speeding violation is $522 per year, or $1.
Cheap Car Insurance After an Accident
If you have an accident on your driving record, State Farm may be worth considering if you’re looking for the cheapest car insurance policy.
According to our data, State Farm has the lowest average yearly rates for drivers with just one accident on their record. Only USAA offers lower rates for post-accident drivers.
The average State Farm auto insurance rate for a single accident starts at $1,522 per year, which is $690 cheaper than the national average rate for auto insurance companies we looked at.
The rate for State Farm auto insurance for a single traffic accident starts at $243 more than the rate for motorists with a clean driving record.
Cheap Car Insurance With Poor Credit
Your credit score is just one of several factors – along with your vehicle type and claims history – that influence the cost of auto insurance. The Insurance Information Institute (III) estimates that a credit score can predict a driver’s likelihood of filing an insurance claim.
Read Also: Why Car Insurance Is So Expensive
This practice is illegal or restricted in the following states:
- Massachusetts
- Hawaii
- Michigan
- Maryland
- Oregon
- Washington
In March 2022, Washington implemented a three-year limitation on this practice.
Geico – For most drivers with bad credit histories, Geico offers the lowest average annual rate among the companies we studied.
USAA – USAA offered lower rates overall, but USAA’s car insurance products are exclusive to military members.
Cheap Car Insurance for Minimum Coverage
If you’re looking for the lowest amount of coverage you can get – typically a policy that matches your state’s mandatory minimum liability insurance – you’ll likely find Geico has the lowest car insurance rates of any insurer in our analysis.
Geico has the lowest average rates of any insurer for drivers looking for low-level coverage. It’s the only insurer, aside from USAA, that offers car insurance specifically for the military community.
For a low-level policy, Geico has an average annual rate of $1.134. That’s $336 less than the average national rate, which is an almost 22% savings.
Read Also: Life Insurance Strategies for Business Owners
For lower-level coverage, State Farm has the lowest average rate of any insurer. At $1.195, State Farm offers the lowest rate among USAA members in our study. The lowest rate for USAA members is $963.
Wrapping Up
Insurance companies base their rates partly on claims data that show older and married drivers make fewer claims. You should not get married for the sole purpose of saving on insurance and you cannot change your age. Nevertheless, you can take the above tips to reduce your car insurance costs and get the best deal.
