In this guide, we’ll explore the most affordable insurance providers, ways to save on your premium, and tips to find the best deal without sacrificing coverage.
Who Offers the Cheapest Vehicle Insurance?
Insurance rates vary depending on factors like location, driving history, and coverage needs. However, some companies consistently offer lower rates.
Top 10 cheapest vehicle insurance providers
Based on national averages, here are some of the cheapest vehicle insurance companies:
- Central Insurance – $36/month (minimum coverage)
- USAA – $39/month (available for military families)
- Auto-Owners – $42/month
- Country Financial – $48/month
- Geico – $52/month
- Erie Insurance – $55/month
- Travelers – $58/month
- Progressive – $72/month
- State Farm – $72/month
- Nationwide – $73/month
These rates are for minimum coverage policies, but full coverage prices will vary. Keep in mind that the cheapest option may not always be the best, so consider customer service and claims processing when choosing an insurer.
Cheapest Vehicle Insurance by Coverage Type
The type of coverage you choose affects your premium. Let’s break down the most affordable options.
Cheapest Minimum Liability Insurance
Minimum liability insurance covers damages you cause to others but does not protect your own vehicle.
- USAA – $471/year
- Geico – $620/year
- Travelers – $691/year
- Progressive – $859/year
- State Farm – $861/year
Cheapest Full Coverage Insurance
Full coverage includes liability, collision, and comprehensive insurance, offering better protection.
- Travelers – $1,692/year
- USAA – $1,741/year
- Geico – $1,995/year
- Nationwide – $2,063/year
- Progressive – $2,326/year
Full coverage is a smart choice if you have a newer car or want added protection against theft, weather damage, and accidents.
Cheapest Vehicle Insurance by Age Group
Insurance rates are heavily influenced by age. Younger drivers and seniors often pay higher premiums due to risk factors.
Cheapest Insurance for Teens (16-19 years old)
Teen drivers pay the highest rates, but these companies offer the best prices:
- USAA – $1,530/year (minimum coverage)
- Travelers – $1,696/year
- Geico – $1,797/year
For full coverage, Travelers offers the lowest rates for teen drivers.
Cheapest Insurance for Young Adults (21-25 years old)
Young adults can find affordable options with:
- USAA – $661/year (minimum coverage)
- Geico – $845/year
- Travelers – $888/year
Again, Travelers provides the most affordable full-coverage policies for this age group.
Cheapest Insurance for Adults (35-55 years old)
Most drivers see lower rates in this age range. The most affordable providers include:
- USAA – $463/year
- Geico – $623/year
- Travelers – $682/year
Cheapest Insurance for Seniors (65-75 years old)
Seniors may see higher premiums due to increased accident risks. The cheapest options are:
- USAA – $560/year
- Geico – $704/year
- Travelers – $736/year
Comparing quotes regularly can help seniors keep their rates low.
Cheapest Vehicle Insurance for High-Risk Drivers
Certain factors, like a poor credit score or a driving violation, can increase insurance rates. However, some providers offer lower rates for high-risk drivers.
Cheapest Insurance for Drivers with Bad Credit
- USAA – $812/year
- Geico – $970/year
- Travelers – $1,199/year
Cheapest Insurance After a DUI
- USAA – $915/year
- Travelers – $968/year
- State Farm – $1,008/year
Cheapest Insurance After an Accident
- USAA – $692/year
- Travelers – $889/year
- State Farm – $1,050/year
Cheapest Insurance for Drivers with a Speeding Ticket
- USAA – $574/year
- Travelers – $816/year
- Geico – $835/year
If you have a bad driving record, improving your habits over time can help lower your premium.
How to Get the Cheapest Vehicle Insurance Rates
Here are some tips to help you find the best deal on auto insurance.
- Compare multiple quotes: Prices vary by provider, so always check multiple companies before purchasing a policy.
- Increase your deductible: A higher deductible lowers your monthly premium, but make sure you can afford it if you need to file a claim.
- Take advantage of discounts: Many insurers offer discounts, such as: Bundling policies (home and auto insurance); Multi-car discounts (insuring multiple vehicles); Telematics programs (monitoring your driving for safe habits); Good student discounts (for young drivers with good grades)
- Choose a cheaper car to insure: Luxury and sports cars come with higher insurance costs. Choosing a vehicle with good safety ratings and a lower replacement cost can help reduce your premiums.
- Improve your credit score: In many states, your credit score affects your insurance rate. Paying bills on time and reducing debt can lead to lower premiums.
- Review your policy regularly: Insurance rates change over time, so it’s smart to compare quotes at least once a year to make sure you’re still getting the best deal.
Risks of Choosing the Cheapest Vehicle Insurance
While saving money is important, the cheapest vehicle insurance may come with drawbacks.
- Limited coverage – Minimum liability insurance may not fully cover damages in an accident.
- Lower customer service quality – Some budget insurers may not provide the best claims experience.
- Slower claims processing – A cheaper provider may take longer to handle claims.
- Fewer policy options – You might not get extras like roadside assistance or rental car coverage.
Make sure to balance affordability with the level of protection you need.
Final Thoughts
The cheapest vehicle insurance varies based on factors like age, driving history, and coverage needs. By comparing quotes, increasing your deductible, and taking advantage of discounts, you can find a policy that fits your budget without compromising on coverage.