10 Cheapest Car Insurance Companies in 2024

The best among the 10 cheapest car insurance companies are Auto-Owners, USAA, and AAA, offering competitive rates and comprehensive coverage.

These companies excel in providing affordable options without compromising on the quality of service and benefits. Their offerings are tailored to diverse driver needs, ensuring that every policyholder receives optimal protection and value.

Our Top 10 Picks: Cheapest Car Insurance Companies

By comparing these top providers, consumers can secure the best possible car insurance tailored to their individual circumstances. Welcome to our comprehensive guide on how to get the cheapest car insurance quotes.

Shop for the best liability-only car insurance with our free quote comparison tool. Enter your ZIP code above to begin.

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#1 – Auto-Owners: Top Overall Pick

Pros

• Significant Multi-Vehicle Discount: Auto-Owners offers a 25% discount for multi-vehicle policies. If you want to learn more about the company, head to our “Auto-Owners Insurance Review & Ratings.”
• Competitive Pay-Per-Mile Rates: Ideal for drivers who use their vehicles infrequently, with rates starting at $30.
• Excellent Customer Satisfaction: Known for high customer retention due to strong service and claim handling.

Cons

• Limited Availability: Auto-Owners insurance may not be available in all states.
• Fewer Online Resources: Compared to competitors, they offer fewer online tools and mobile app functionalities.

#2 – USAA: Best for Military Discounts

Pros

• Tailored for Military: USAA provides excellent rates and services specifically for military members and their families.
• Strong Reputation: Known for outstanding customer service and support. Discover insights in our “USAA Insurance Review & Ratings.”
• Low Premiums for Young Drivers: Offers competitive rates for younger drivers who are military members.

Cons

• Exclusivity: Only available to military members, veterans, and their families.
• Limited Physical Locations: Primarily operates online, with few physical branches.

#3 – AAA: Best for Membership Benefits

Pros

• Extensive Membership Perks: Offers numerous benefits beyond insurance, including travel discounts and roadside assistance. Delve into our evaluation of “AAA Insurance Review & Ratings.”
• High Multi-Vehicle Discount: Like Auto-Owners, AAA offers a 25% discount on multi-vehicle policies.
• Variety of Insurance Products: Provides a wide range of insurance options, from auto to home and beyond.

Cons

• Membership Required: Must purchase a membership to access insurance products.
• Variable Customer Service: Service quality can vary significantly depending on the regional club.

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#4 – State Farm: Best for Reliable Service

Pros

• Bundling Policies: Offers significant discounts for bundling multiple insurance policies.
• High Low-Mileage Discount: Provides a substantial discount for low-mileage usage.
• Wide Coverage: Offers various coverage options tailored for different business needs. Unlock details in our “State Farm Insurance Review & Ratings.”

Cons

• Limited Multi-Policy Discount: The multi-policy discount of State Farm is not as high compared to some competitors.
• Premium Costs: Despite discounts, State Farm’s premiums might still be relatively higher for certain coverage levels.

#5 – American Family: Best for Customizable Plans

Pros

• Highly Customizable Coverage Options: Allows customers to tailor their insurance plans to their specific needs.
• Discount for Safe Drivers: Offers significant discounts for customers with safe driving records.
• Support for Young Drivers: Provides good educational tools and discounts for young drivers. See more details on our “American Family Insurance Review & Ratings.”

Cons

• Inconsistency Across States: Coverage options and customer satisfaction can vary widely by state.
• Higher Rates for High-Risk Drivers: Generally more expensive for those with poor driving records.

#6 – Erie: Best for Cost-Effective Plans

Pros

• Low Overall Cost: Known for offering economical insurance solutions. Learn more in our “Erie Insurance Review & Ratings.”
• Rate Lock Feature: Offers a rate lock feature that ensures your premium won’t increase.
• Accident Forgiveness: Includes accident forgiveness policies, even for long-term customers.

Cons

• Limited Service Area: Only available in certain states, primarily in the Northeast and Midwest.
• No Major Discounts for Multiple Policies: Smaller discounts for bundling policies compared to others.

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#7 – Travelers: Best for Discount Availability

Pros

• Wide Range of Discounts: Offers a variety of discounts, including for safe driving and green vehicles.
• Flexible Payment Options: Allows customers to choose how and when they pay their premiums.
• Coverage Options: Extensive options for coverage customization. More information is available about this provider in our “Travelers Insurance Review & Ratings.”

Cons

• Higher Rates for Teen Drivers: Generally, premiums for teen drivers are higher than some competitors.
• Complexity in Policy Management: Customers may find managing their policies through the website or app cumbersome.

#8 – Nationwide: Best for Wide Coverage Options

Pros

• Comprehensive Coverage Options: Offers a wide range of insurance coverage, from auto to specialty vehicles.
• Vanishing Deductible: Nationwide offers a vanishing deductible for safe driving years. Check out insurance savings in our complete “Nationwide Insurance Review & Ratings.”
• SmartRide Discount: Encourages safe driving habits through its SmartRide program, offering discounts.

Cons

• Average Customer Service Ratings: Receives mixed reviews for customer service.
• Pricing Inconsistencies: Prices can vary significantly depending on location and other factors.

#9 – Progressive: Best for Competitive Rates

Pros

• Name Your Price Tool: Allows customers to tailor plans to their budget. Access comprehensive insights into our “Progressive Insurance Review & Ratings.”
• Strong Online Presence: Offers robust online tools for managing policies and filing claims.
• Loyalty Rewards: Progressive offers discounts and perks for long-term customers.

Cons

• Variable Agent Quality: Experience with agents can be inconsistent.
• Rates Can Increase: Premiums may increase significantly after the first term, especially post-claim.

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#10 – The Hartford: Best for Comprehensive Options

Pros

• Tailored for Older Drivers: Offers excellent rates and services for AARP members. Read up on the “The Hartford Insurance Review & Ratings.” for more information.
• Wide Range of Benefits: Extensive benefits, including recovercare and new car replacement.
• Lifetime Renewability: Offers a lifetime renewability option, which is a huge benefit for senior drivers.

Cons

• AARP Membership Required: Insurance is generally only available to AARP members.
• Higher Costs for Non-AARP Members: Those who aren’t AARP members may face higher rates.

Comparative Monthly Rates for Car Insurance: Minimum vs. Full Coverage

When shopping for car insurance, understanding the difference in monthly rates between minimum and full coverage options is crucial. This comparison can help you make an informed decision based on your needs and budget.

Car Insurance Monthly Rates by Coverage Level & Provider

The table provides a clear snapshot of how monthly rates vary between minimum and full coverage across various insurance providers. For instance, Auto-Owners offers the most affordable minimum coverage at just $30 per month and full coverage at $100, making it a cost-effective option. I

n contrast, The Hartford presents the highest rates with minimum coverage starting at $47 and escalating to $125 for full coverage. Other insurers like AAA and American Family offer middle-ground options, with AAA charging $39 for minimum and $112 for full coverage, and American Family pricing their plans at $41 and $113 respectively.

Notably, USAA also stands out with competitive rates of $38 for minimum and $105 for full, catering primarily to military families.

Learn more in our “What does car insurance cover?.”

This range in pricing underscores the importance of comparing what each provider offers to ensure you receive the best coverage for your investment.

Factors That Affect Car Insurance Rates

In order to learn how to get cheaper auto insurance, you first need to know how car insurance rates are determined. Many different factors affect your rates. While you can’t change some elements, others can be adjusted to get the cheapest insurance quote.

Factors That Determine Car Insurance Rates Include:

• Demographics: Your age, gender, and marital status affect rates. Younger drivers, males, and single drivers have higher rates since they are more likely to be in accidents.

• Vehicle: New or expensive cars cost more to repair and replace, so coverage costs more. Also, custom and exotic cars are more costly to insure.

• Driving Record: Your driving record indicates if you’re a risky driver. Drivers who are likely to cost the insurance company money see much higher rates.
• ZIP Code: Drivers who live in high-crime areas are more likely to file an accident or theft claim. Likewise, drivers who live in high-traffic areas are also more likely to be in an accident.
• Coverage: The coverages and limits you choose affect rates. More coverage with high limits and low deductibles equals higher rates.
• Credit Score: Drivers with a low credit score are more likely to file claims and may not make payments on time. Meanwhile, a high credit score indicates drivers are more willing to pay for damages out of pocket.

Obviously, you can’t change your age or gender. However, you may see lower rates if you get married.

Significant life events drastically change car insurance rates. So, whether you’re getting married or your teenager just got a driver’s license, compare the best car insurance by vehicle quotes to see if you can get lower rates.

With the goal of promoting safe driving habits among new drivers, several insurance providers offer teenager car insurance discounts, which can ease the financial burden for families and encourage teens to maintain a clean driving record.

See more details on our: Car Insurance Teen Discount Gps Tracker

Keep reading to learn how American Access car insurance discounts help your chances of getting cheaper car insurance.

Read more: Georgia Car Insurance Discounts

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How to Get Cheaper Car Insurance Quotes

The first thing to consider is your vehicle. When buying a new car, look for cars with the cheapest insurance rates. Avoid overly expensive or exotic cars to keep rates low. Instead, choose a car with low repair costs and inexpensive insurance. When it comes to getting the cheapest car insurance, improving your driving record makes a significant impact.

If your driving history leaves something to be desired, you’re not stuck with high rates forever. Infractions on your driving record come off every few years. So avoid adding more accidents, tickets, and DUIs to reduce rates drastically.

Moving to get lower car insurance rates might not be practical. However, you can improve your car’s security, park in a garage, and install enough lighting to discourage vandals and thieves. Then, when you move, research to find ZIP codes with lower crime and traffic.

Although a few states may restrict car insurance companies from checking your credit score, in the majority of states, this practice is still allowed. The good news is that enhancing your credit score is an achievable goal while seeking the best car insurance in your state.

Think carefully before using credit and make on-time payments. While the process takes time, eventually, you’ll see much lower auto insurance rates. In addition, you’ll get lower rates on other purchases, such as a home or car.

If you’re looking for the most affordable car insurance rate, it’s best to compare different insurance providers to find the right coverage for you. Each company evaluates your personal details differently, which means you’ll receive different quotes to consider.

If you’re looking for discounts on your car insurance, it’s important to do your research and find the best option for your specific needs. Many car insurance companies advertise low rates, but it’s crucial to compare quotes thoroughly to discover the most cost-effective coverage.

Don’t forget to consider smaller or local insurance companies, as they sometimes offer competitive rates that even larger national companies can’t match.

Changing Coverage Helps You Get Cheap Insurance Quotes

When learning how to get the cheapest car insurance quotes, first look at your coverage. Even though most states require you to have auto insurance, liability coverage is all that’s typically needed, and limits are very low.

Most experts suggest full coverage, which combines liability, collision, comprehensive, and other mandated coverages. However, full coverage rates are higher because you’re more protected.

In order to decide how much coverage you need, think about your vehicle and how you use it. If your car is older or not worth much money, it may be cheaper to forgo extra coverage and pay for damages yourself.

You can also drop extra coverages, such as rental car coverage and roadside assistance. For example, if you have a vehicle you can borrow if yours is in the shop, you don’t need rental coverage. Also, your credit card may already have rental car coverage.

You can probably skip roadside assistance if you don’t often drive or drive very far. Many third-party companies also offer roadside assistance and may have cheaper rates than your insurance company.

Your insurance policy comes with deductibles. A deductible is the amount of money you pay before your insurance kicks in. A higher deductible means you pay more out of pocket, but your rates are lower since the insurance company pays less.

If you don’t spend a lot of time behind the wheel, consider changing to usage-based insurance. You pay a small fixed fee plus a per-mile charge with this type of insurance. However, coverages are generally the same, and rates are much lower.

It’s important to compare the same coverages as your  quotes. Keep coverages, limits, and deductibles the same when looking for the cheapest online insurance.

Discounts Help You Get the Cheapest Rates for Car Insurance

Sometimes getting the cheapest car insurance means finding the best discounts. Discounts make a huge impact on auto insurance rates. They can make the difference in which company is cheaper for you.

By insuring all company vehicles under a single policy, businesses can take advantage of a fleet car insurance discount, saving both time and money while ensuring adequate protection for their entire vehicle fleet.

More information is available about this provider in our “Encompass Car Insurance Discounts.”

In the competitive world of business, every saving counts, and a commercial car insurance discount offered by many insurers can significantly reduce the overall cost of insuring a company’s fleet of vehicles.

Car insurance discounts encompass a wide range of benefits, tailored to the driver, policy, and vehicle. Nevertheless, the exact discounts and potential savings may differ among insurers. When you’re looking for cheaper car insurance, take advantage of all savings available.

Drivers get discounts based on their driving record, how they do in school, and even where they work.

Driver discounts include: 

• Safe driver
• Defensive driving course
• Occupation
• Distant student
• Driver’s ed
• Good student
• Membership

Check out insurance savings in our complete “Good Student Car Insurance Discount.”

While some driver discounts, such as safe drivers, are based on how they drive, some discounts have nothing to do with driving. Drivers are eligible for discounts based on their occupation and membership in certain groups.

For example, first responders and teachers typically earn car insurance discounts. The cheapest car insurance for teachers, police, and other emergency personnel is usually from the company with the highest discount.

Administrative professionals who have a company car may be eligible for an administrative car insurance discount, recognizing their responsible use of the vehicle and dedication to their work.

In recognition of the risks they undertake and their commitment to public safety, many insurance providers extend a police officer car insurance discount, providing valuable savings for these community heroes.

Policy discounts are based on specifics such as what type of policy you have and how long you’ve been with the company.

Unlock details in our “Persistency Car Insurance Discount.”

Policy discounts include:

• Multi-car
• Multi-policy
• Continuous coverage
• Paid in full
• Claims-free
• Loyalty
• Paperless

Read more: American National Car Insurance Discounts

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It Is Cheaper to Combine Car Insurance Policies

Yes, your insurance company probably offers a discount if you have more than one policy, such as home and auto.

Your car can also help you save money. Auto insurance companies offer discounts if you have features to avoid accidents. Avoiding accidents keeps you safe and saves the insurance company money.

Vehicle discounts include:

• Low mileage
• Anti-theft devices
• Green vehicle
• Anti-lock brakes
• Vehicle recovery system
• Collision warning systems
• Adaptive cruise control

In an effort to encourage safer driving habits and the use of advanced safety features, many insurers offer a reverse carmatic braking system car insurance discount, acknowledging the enhanced security these systems provide.

Read more: Carmatic Payment Car Insurance Discount

Insurance companies also allow you to bundle all of the discounts available. So when looking for the cheapest online insurance, don’t forget to factor in discounts. The savings are significant.

Getting Cheaper Car Insurance Quotes: The Bottom Line

Learning how to get the cheapest car insurance is a must for today’s drivers. Fortunately, there are multiple ways to lower rates and save money on car insurance. The first step to getting cheaper car insurance is figuring out your needs. Consider which coverages you need, what you can skip, and how much you’re willing to pay out of pocket with deductibles.

Additionally, consider a different type of insurance, such as usage-based coverage, if you don’t drive a lot. While coverages are the same, rates are typically much lower.

Then, change the factors that affect your rates, such as cleaning up your driving record and improving your credit score. Also, look for the cheapest car to get insurance on that still fits your needs and budget.

If you want to learn more about the company, head to our: Hidden Car Insurance Discounts

Getting cheaper car insurance with discounts is an easy way to save. Auto insurance companies offer discounts based on you, your policy, and your car. Combine discounts for the most savings.

Finally, compare the cheapest car insurance quotes online to find the best fit for you. Remember, each company weighs your personal factors differently and offers different rates. For example, one company may overlook that speeding ticket, but another may raise your rates.

Read more: Online Car Insurance Discount Program

Learning how to get the cheapest insurance is essential for all drivers. Enter your ZIP code for a car insurance free quotes comparison to ensure you always have the best coverage with the lowest rates.

Find cheap car insurance quotes by entering your ZIP code below.

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