Cheapest Car Insurance Companies with Affordable Rates (2023)

Car insurance rates are rising in most areas of the country.^[1] Your premiums might increase for a number of reasons. Some, like your driving habits, are under your control. Others, such as accident claims and car thefts in your area, are out of your hands.

Depending on the duration of your policy, your rates could rise annually or even twice a year. Whether your policy is up for renewal or you’re a newer driver with less experience and credit history, comparing car insurance quotes can help you find the most affordable car insurance for your needs.

Here’s what to know about shopping for cheap, good car insurance.

Compare the cheapest car insurance companies and rates

Car insurance quotes can vary widely from company to company, depending on a number of factors, including:^[2]

• The type and amount of insurance

• The car insurance company

• Your driving history

• Your credit

• The number of miles you drive each year

• Your age and gender

• The make and model of your car

Insurify’s data scientists analyzed millions of real-time quotes from partner auto insurance companies to identify the cheapest car insurance rates available for different driver profiles.

Overall, liability-only car insurance — also known as minimum coverage — is the cheapest car insurance available, averaging $85 per month, or $1,020 annually. Most states require drivers to carry at least a minimum level of liability coverage, but depending on your situation, you may choose to carry more coverage.

The following table shows the cheapest monthly car insurance premiums for some common driver profiles and compares those rates to the 2022 national average monthly rate of $148.

Cheapest car insurance company overall: MetLife

MetLife has the cheapest overall quote, at just $120 per month, or $1,440 per year. This is 19% less than the national average.

MetLife may not be the cheapest option for all driver profiles. However, the company has good customer service reviews and a number of car insurance discounts that can lower the cost of your policy, including safe driver, good student, and safety feature discounts.

Cheapest midsize car insurance company: Amigo USA

Located in Illinois, Amigo USA is a midsize insurer that offers coverage in Illinois, Indiana, Texas, and Wisconsin. Amigo USA earned an A+ rating from the Better Business Bureau and offers an affordable monthly quote of $156 on average, according to Insurify data.^[3]

Amigo USA is a good option if you’re looking for a more local experience and like talking with an agent to tailor your coverage. Amigo also offers optional car insurance that covers trips to Mexico.

The biggest drawback to a midsize insurer like Amigo is its limited coverage area — Amigo is only available in four states. Also, although you can start the quote process online, you have to secure a policy through an agent.

Cheapest car insurance company for good drivers: Kemper

A good driving record means you have none of the road violations that can commonly raise car insurance rates, including accidents, speeding tickets, or convictions for driving under the influence. Most drivers have good driving records, Insurify data shows.

Generally, good drivers can qualify for the most favorable car insurance rates available to them given other rating factors like age, gender, and location.

Kemper provides affordable coverage for good drivers, with an average of just $138 per month, or $1,656 for a 12-month car insurance policy. Although at least two regional insurers we considered offered lower average monthly quotes than Kemper, the company offers discounts that make it a superior choice for drivers with a clean record, including:

• Good student

• Bundling

• Anti-theft devices

• Paid-in-full (for paying the entire premium up front)

However, it’s worth noting that Kemper has a higher number of customer complaints than the industry norm.^[4]

Best cheap car insurance with an incident: Certainly

Running a stop sign or red light, making an illegal U-turn, failing to yield, tailgating, and failing to show proof of insurance and registration are all common traffic violations. Even a single violation on your record could affect your insurance rates when you apply for a new policy or are ready to renew your existing one.

For drivers with just one minor blemish on their records, regional insurance company Certainly can be a good choice. Certainly has the lowest average monthly quote for a driver with one or more incidents, at $141. You can quote, buy, and maintain your auto insurance policy entirely online with Certainly, and the company also offers renters and small-business insurance.

However, Certainly auto insurance is only available in Arizona, Illinois, Ohio, Tennessee, and Wisconsin, so if you live in a different state, you’ll have to consider a different insurer.

Cheapest car insurance with a DUI: USAA

Driving under the influence of alcohol or drugs is a serious driving violation that can come with legal consequences as well as significantly higher rates for car insurance. USAA offers the cheapest quote for drivers with a DUI on their record — $165 monthly, or $1,980 annually. However, that’s roughly 9% more than USAA customers with a clean driving record might pay for the same coverage.

Generally, drivers with one or more DUIs on their record will see their car insurance premiums increase. Some may struggle to find an insurer willing to issue them a policy. Multiple government studies have shown that drivers with a single DUI are likely to have subsequent violations,^{[5] [6]} and alcohol-related crashes account for nearly one-third of all fatal accidents in the U.S.^[7]

However, while USAA has the overall lowest auto insurance quotes for drivers with a DUI, not everyone will be eligible to take advantage of this. USAA only provides policies to members of the military and veterans, their spouses, and children.

Keep Reading: How Long Does a DUI Stay on Your Record?

Cheapest car insurance for drivers with poor credit: Farmers

Drivers with low credit scores tend to have higher car insurance rates than motorists with good credit. Studies and statistics indicate drivers with poor credit pose a higher risk of loss to auto insurance companies because they’re more likely to file a claim.^[8]

Fortunately, your credit is an insurance rating factor that you can control. Improving your credit score may help you qualify for better insurance rates. Meanwhile, Farmers offers the cheapest car insurance quotes for drivers with poor credit, at $162 per month, or $1,944 annually.

In addition to affordable car insurance rates for drivers with poor credit, Farmers offers discounts and perks that could help you lower your costs, including:

• Accident forgiveness

• Bundling/multi-policy discounts

• Safe driver discount

• Employee/affinity member programs

Farmers also has a lower-than-expected rate of customer complaints, according to the National Association of Insurance Commissioners (NAIC).

Keep Reading: What Does Liability Insurance Cover?

Cheapest car insurance for new drivers: National General

New drivers generally pay the highest car insurance premiums of any age group. Younger drivers, such as teenagers and people younger than 25, are more likely to get into an accident. Insurance companies charge younger drivers more due to their higher risk of filing a claim. In fact, the average annual rate for new drivers is about 107% higher than the overall average for car insurance.

National General can be a good choice for young drivers looking for the best cheap car insurance. Its monthly average rate for drivers younger than 25 is $243. However, National General has a high rate of customer complaints compared to other insurance companies, according to NAIC data.

Cheapest car insurance for low-mileage drivers: Mile Auto

Auto insurance companies consider the number of miles you drive each year when setting your insurance rate. Generally, the lower your annual mileage, the lower your insurance premium will be. Most insurers reward low-mileage drivers, but pay-per-mile insurers go a step further, charging drivers only for the miles they actually drive in a year.

The concept of pay-per-mile has been around for decades but gained new traction during the COVID-19 pandemic, when more people began working from home and commuting less. Mile Auto stands out for offering the cheapest car insurance for low-mileage drivers, at just $113 per month on average. The company has a rating of 3.8 out of 5 stars on Trustpilot.

Keep in mind, though, that pay-per-mile insurance likely isn’t a good choice for people who drive an average or above-average number of miles every year.

Good Read: Pay-Per-Mile Car Insurance: A Guide

Cheapest car insurance with an accident: Kemper Preferred

Getting into an accident can raise your insurance rates, even if you weren’t at fault for the crash. Generally, an accident claim and the increased premiums that come with it will stay on your driving record for three years.^[9] Comparison shopping can be a good way to find a lower insurance premium after an accident.

Kemper Preferred had the cheapest car insurance in our study, averaging $153 per month for car insurance following an accident claim. Kemper Preferred customers with a car accident on their records pay about 8% more than those with clean driving records. If you’re looking for cheaper insurance after an accident, Kemper Preferred might be worth considering. However, the company does have a high rate of customer complaints, according to the NAIC.

Cheapest car insurance with a speeding ticket: Erie

Most insurers will raise your car insurance rates if you get one or more speeding tickets. Speeding increases your risk of getting into an accident, which will result in a costly car insurance claim at best and serious injuries or even death at worst. Speeding is a factor in about one-third of all traffic fatalities, according to the NHTSA.

Erie Insurance offered the lowest rates in our data sample for drivers with speeding violations on their records. The average monthly premium from Erie was $159 — nearly 50% lower than the overall average of $316 for drivers with tickets. Keep in mind, though, that Erie is only available in 12 states and Washington, D.C.

Related Read: How Long Do Speeding Tickets Stay on Your Record?

Cheapest car insurance for military families: USAA

Military families can have special needs when it comes to car insurance. Reassignment from state to state, potentially long commutes, possible lapses in coverage due to deployment, and other circumstances can make it difficult for enlisted people and their families to find cheap car insurance.

USAA, which exclusively serves members of the military, veterans, their spouses, and children, offers the cheapest car insurance for military families. Its average cost per month is just $189 — 50% lower than the overall average for military families of $405 per month.

While some drivers may be able to find lower rates elsewhere, USAA’s focus on military and veteran families — and its broad range of insurance products — make it a standout for cheap car insurance for military families.

Best cheap car insurance for seniors: Farmers

Senior drivers typically have the lowest car insurance rates of any age group. Multiple factors contribute to lower rates for older drivers, including their years of driving experience and the likelihood they’ll spend less time behind the wheel than drivers who commute to work or school.

However, rates start to climb for senior drivers in their 70s and 80s. Drivers in their 70s or older are more at risk of dying in a crash than younger drivers.^[10]

Senior drivers looking for cheap car insurance should consider Farmers: The company’s average monthly rate for older drivers is just $137 per month. The company’s bundling discounts can help seniors save on both their car and homeowners insurance policies.

How to shop for the cheapest car insurance

Regardless of what type of coverage you need or your driver profile, comparison shopping is the best way to find affordable car insurance rates. Comparing car insurance quotes from multiple companies allows you to weigh the coverages, features, and costs of each plan. You can streamline the process of comparison shopping by using a comparison website like Insurify to get free car insurance quotes. Insurify is a virtual agent licensed in all 50 states.

As you compare quotes, be sure to pay close attention to:

Coverage limits

You must buy at least the minimum amount of liability coverage required in your state. But if you have a leased or financed car, a high-value vehicle, or assets to protect, you may want higher liability limits and full coverage. Be sure to request quotes for the same types and amounts of coverage to ensure you’re making an apples-to-apples comparison.

Available discounts

Most car insurance companies offer multiple discounts — such as a good driver discount or low-mileage discount — to help lower your costs. Check what discounts might apply to you, whether the companies you’re considering offer them, and how those discounts affect the auto insurance quotes you get.

Deductible amount

A deductible is an amount you have to pay out of pocket before your insurance begins to pay for a covered event. Be sure to apply the same deductible amount to each quote, and check how lowering or raising the deductible will affect each quote. Keep in mind, though, that you’ll need to be able to afford the deductible amount in case of a claim.

Customer service

Check online user reviews to see how well each company does with customer service. Compare how many options each insurer provides for contacting them — email, phone, online chat, etc. You’ll want to pick an insurer that’s convenient for you to communicate with and that has good customer service.

Company reputation

Check industry ratings for each company you consider. Online insurer reviews can make this easy. You’ll want to be sure the company you choose is financially strong and has a good reputation for quality.

How to get cheap car insurance for new drivers

If you’re new to driving, new to driving in the U.S. or just getting back into driving after not having done so for a while, chances are you’ll face higher car insurance costs than more experienced drivers. Just as you would shop around before making any big-ticket purchase, comparison shopping for car insurance can help ensure you find affordable coverage.

Additionally, you can take some other steps to ensure you get the lowest rates available to you:

• Complete a driver safety course. Some insurers offer discounts for drivers who complete professional driver safety or education training.

• Look for discounts. High school or college students with good grades may be able to qualify for a good student discount. Your car may qualify you for a safety equipment discount if it has certain features. You may also save by bundling your car insurance with your renters or homeowners insurance.

• Stay on your parents’ insurance. Experienced motorists with good driving records typically qualify for cheaper car insurance. If you live at home, adding you and your vehicle to your parents’ insurance will probably be cheaper than getting your own policy. 

Car insurance discounts

An easy way to decrease your premiums and get cheap car insurance is to research as many discounts as you can. Many car insurance companies offer multiple discounts to explore, but here are the best car insurance discounts to look into: 

• Bundling: If you insure your car and your apartment, condo, or house with one insurance company, you can usually get a discount on your premiums. Not only can you expect to see savings, but it’s easier to manage both policies under one account. 

• Driving programs: GEICO, Progressive, State Farm, Allstate, and other companies may offer programs that track your driving habits and calculate savings based on how safely you drive. For example, State Farm’s Drive Safe & Safe program advertises a discount of up to 30% for drivers enrolled in the program. 

• Safety devices: Insurers consider your vehicle’s make, model, and year when setting your premiums, so insuring cars with anti-theft devices and higher safety ratings may result in relatively lower premiums.

• Pay-in-full: Some insurance companies will apply a modest discount to your premiums if you pay for your policy up front, rather than breaking it up into monthly payments. If you can pay hundreds of dollars at the beginning of the policy, you may pay less.

Cheapest car insurance by state

Location is an important factor in car insurance costs. Population density, road, and weather conditions, and claims filed by other drivers in your area can all affect your car insurance rate. Rates can vary significantly from state to state and between different ZIP codes in the same state.

The following table shows the cheapest average monthly car insurance quote in every state and Washington, D.C.

Cheap car insurance FAQs