Auto insurance is a necessity for many Americans. But it can also be quite costly, with the average car owner spending just over $2,000 a year for full coverage, or $622 for minimum coverage according to Bankrate.Â
Premiums can vary significantly by state since each has different requirements on how much coverage is necessary. In most states, car insurance is a requirement. But it can also provide valuable financial protection for a variety of situations. Depending on the type of coverage you decide to get, auto insurance can help protect your wallet from taking a hit if you’re involved in a fender bender or have your car stolen.Â
It’s worth noting that your auto insurance costs can vary based on a number of other factors, including your credit score, age and driving history, to name a few.
If you’re looking for the cheapest car insurance, CNBC Select has chosen some of the best companies for affordable coverage based on cost and service.
Cheapest car insurance companies
- Best overall: Geico
- Best for minimum coverage: Auto-OwnersÂ
- Best for customer satisfaction: AmicaÂ
- Best for military members and veterans: USAA
Best overall
Geico Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Pros
- Lowest average rates
- Inclusive coverage options, including high-risk drivers
- Available nationwide
Cons
- High premiums for high-risk driversÂ
- Fewer branches for in-person services
Geico is also rated best overall in our list of best car insurance, so it’s a strong bet for both customer service and competitive pricing. With high ratings for customer satisfaction and a wide range of financial products to bundle car insurance and save, Geico takes our top spot for the best cheap car insurance companies. It also offers the most affordable average annual premium for full coverage car insurance of the companies we reviewed, including 16 different types of discounts available.
Average annual premium for minimum coverage:Â $373
Average annual premium for full coverage:Â $1,353
Best for minimum coverage
Auto-Owners Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Auto-Owners offers affordable premiums with high customer satisfaction ratings. There are 12 different types of discounts available, as well as various other types of insurance besides auto.
Pros
- Offers at-fault accident forgiveness as an add-on
- High customer satisfaction scores from JD Power
- Low NAIC complaint index score
Cons
- Only available in 26 states
- Quotes must be obtained through an agent
Auto-Owners offers affordable car insurance for those looking for minimum coverage — the lowest average premium for the companies we reviewed. While it’s not available in all states, Auto-Owners auto insurance is highly rated by AM Best for financial strength. CNBC Select also selected Auto-Owners insurance as one of the top picks for young adult drivers and seniors.
Average annual premium for minimum coverage:Â $325
Average annual premium for full coverage:Â $1,361
Best for customer satisfaction
Amica Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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Policy highlights
Amica offers a variety of auto insurance policies to fit your coverage needs. The company also offers a total of 18 discounts, including discounts for bundling and for students.
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App available
Pros
- Highly rated by J.D. Power for auto claims satisfaction
Cons
- Not available in all 50 states
Amica takes the top spot in J.D. Power’s Auto Claims Satisfaction Study, scoring 903 out of 1,000 possible points. It also offers rates lower than many of the other companies we considered. In addition to discounts for bundling, it offers discounts for families, how you drive, what you drive and how you pay.
Average annual premium for minimum coverage:Â $429
Average annual premium for full coverage:Â $1,467
Best for military members and veterans
USAA Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
USAA’s auto insurance is available in all 50 states, Washington D.C. and some international locations. In addition to low rates and coverage options for unique circumstances, such as for active-duty members, customers have access to an intuitive mobile app.
Pros
- Lowest average premium for minimum coverageÂ
- Highest customer satisfaction ranking
- Superior discounts for military members
Cons
- Only available to military members, veterans and their immediate family members
USAA’s high customer satisfaction ratings and relatively low rates have earned it top spots on several of our best auto insurance lists. However, only some are eligible — USAA limits eligibility to those who are current and former military members and their spouses and children. For those who are eligible, USAA offers competitive average auto insurance rates.
Average annual premium for minimum coverage:Â $371
Average annual premium for full coverage:Â $1,361
FAQs
How do I get cheap car insurance?
To get the best cheap car insurance, you’ll want to do your research and shop around.
Every car insurance company considers your information differently, including things like your driving history and the type of car you’re insuring, among other factors.
To shop for car insurance, you’ll want to get quotes from several different insurers, making sure that you’re getting the same amount of coverage and types of coverage in each quote. Once you have several quotes on hand, compare the premium, or the price you pay for coverage, to find the one that offers the most coverage for your money.
How can I make car insurance cheaper?
Many factors go into your car insurance price, including some factors that you can change and some that are out of your control. That said, it is possible to do a few things to make your car insurance cheaper, including:
- Raise your credit score. In many states, your credit score is a factor that insurance companies can use when pricing your car insurance policy. Generally, those with higher credit scores are offered lower premiums. To raise your credit score, make payments on time, pay attention to your credit utilization rate, and check your credit report for errors.
- Bundle your insurance policies. Many insurers offer more types of coverage than just car insurance, and some offer savings for buying two or more insurance policies at the same company, also called bundling. To take advantage of this discount, shop for your homeowners insurance, renters insurance, or condo insurance with your auto insurance.
- Look for discounts. Most auto insurers offer various types of discounts. In addition to bundling, they may be discounts for safe driving, automatic payments, paying on time and insuring multiple cars.
What cars are cheaper to insure?
The type of car you plan to insure will also have an effect on the amount you’ll pay for coverage. Generally, luxury vehicles and sports cars are more expensive to insure since they have higher repair costs. Some of the cheapest car insurance rates are for smaller SUVs.
Whether you’re insuring a top-of-the-line sportscar or an everyday sedan, make sure to shop around for car insurance to get the best deal for your car.
Average cost of car insurance
Here’s an overview of the average car insurance costs by state. Premiums can vary significantly by state due to varying regulations and requirements.
| State | Average annual cost for full coverage | Average annual cost for minimum coverage |
|---|---|---|
| Alabama | $1,843 | $441 |
| Alaska | $1,946 | $421 |
| Arizona | $1,810 | $587 |
| Arkansas | $1,907 | $443 |
| California | $2,291 | $636 |
| Colorado | $2,121 | $500 |
| Connecticut | $1,533 | $620 |
| Delaware | $2,103 | $801 |
| Florida | $3,183 | $1,128 |
| Georgia | $2,085 | $639 |
| Hawaii | $1,275 | $344 |
| Idaho | $1,133 | $267 |
| Illinois | $1,806 | $552 |
| Indiana | $1,295 | $327 |
| Iowa | $1,315 | $223 |
| Kansas | $1,878 | $416 |
| Kentucky | $2,124 | $678 |
| Louisiana | $2,909 | $815 |
| Maine | $941 | $225 |
| Maryland | $1,971 | $815 |
| Massachusetts | $1,262 | $429 |
| Michigan | $2,691 | $1,104 |
| Minnesota | $1,760 | $585 |
| Mississippi | $1,771 | $446 |
| Missouri | $1,943 | $490 |
| Montana | $1,889 | $310 |
| Nebraska | $1,624 | $359 |
| Nevada | $2,779 | $973 |
| New Hampshire | $1,262 | $319 |
| New Jersey | $1,754 | $782 |
| New Mexico | $1,591 | $346 |
| New York | $3,139 | $1,371 |
| North Carolina | $1,446 | $432 |
| North Dakota | $1,302 | $269 |
| Ohio | $1,266 | $338 |
| Oklahoma | $1,998 | $406 |
| Oregon | $1,415 | $616 |
| Pennsylvania | $2,040 | $428 |
| Rhode Island | $1,886 | $551 |
| South Carolina | $1,532 | $524 |
| South Dakota | $1,553 | $276 |
| Tennessee | $1,429 | $371 |
| Texas | $2,019 | $565 |
| Utah | $1,510 | $539 |
| Vermont | $1,061 | $238 |
| Virginia | $1,439 | $494 |
| Washington | $1,410 | $515 |
| Washington D.C. | $2,072 | $607 |
| West Virginia | $1,580 | $421 |
| Wisconsin | $1,292 | $358 |
| Wyoming | $1,582 | $263 |
Source: Bankrate.com
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Bottom line
Auto insurance can be a big expense, but it doesn’t have to be. Shopping around for coverage by getting multiple quotes and comparing them could help make sure you get the best deal for you.
Our methodology
To determine the best cheap car insurance companies, CNBC Select looked at many U.S. car insurance companies with competitive prices.
When narrowing down and selecting the best cheap car insurance companies, we focused on the average cost of both full-coverage auto insurance policies and minimum coverage auto insurance policies. We then considered coverage types, availability of coverage, and customer satisfaction using data from AM Best, J.D. Power’s Auto Claims Satisfaction Study rankings, and car insurance premium data from Bankrate.com.
Average annual premium data is based on a 40-year-old driver with a 2021 Toyota Camry, a clean driving record and good credit, and the following limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
After reviewing the above factors, we sorted our recommendations by best overall, best for minimum coverage, best for customer satisfaction, and best for military members and veterans.
Note that the premiums and policy structures advertised for car insurance companies are subject to fluctuate in accordance with the company’s policies.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.