Top 10 Cheap Car Insurance Companies in January 2026

In the first half of 2025, car insurance rates held steady nationally and decreased in 27 states. But costs were expected to increase 4% to 7% by year’s end, according to an Insurify report.

The national average rate for full-coverage car insurance is now $2,095 per year, leading more drivers to search for cheaper options. Some drivers cut costs by finding discounts, increasing deductibles, or switching to liability-only car insurance, which has a lower national average rate of $1,192 per year.

Every state except New Hampshire legally requires drivers to have some coverage. Thankfully, if you compare car insurance quotes, you’ll find that many national and regional insurers have competitive rates.

The 10 cheapest car insurance companies overall

The cheapest car insurance policy for you will depend on several factors, from the type of car you drive to your age. But some insurance companies offer significantly cheaper rates than others.

Insurify data scientists analyzed more than 90 million quotes to find the cheapest car insurance companies for every type of driver. Here’s an overview of average monthly liability-only and full-coverage quotes from the 10 cheapest auto insurance companies.

The below rates are estimated rates current as of: Monday, January 19 at 11:00 AM PST. 

Data reviewed by Chase Gardner

Chase GardnerData Insights Manager

• Data expert on auto trends and driver behavior

• University of Chicago graduate with statistics degree

Chase spearheads analytics for Insurify’s data insights team. With his deep expertise in insurance data, Chase is often interviewed on industry trends.

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Insurance Company	Liability Only	Full Coverage
COUNTRY Financial	$44	$81
Auto-Owners	$47	$81
State Farm	$55	$108
Allstate	$75	$142
Safeco	$87	$140
GEICO	$87	$141
Root	$91	$151
National General	$91	$173
Dairyland	$92	$235
Nationwide	$96	$182

Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

The cheapest car insurance company by driver category

Car insurance companies consider multiple factors when setting rates, from local accident rates to your age, driving record, and, in some states, your gender and credit history. Auto insurance rates can vary widely among drivers with different profiles because each factor indicates a different level of risk.

Here’s a look at the insurance companies offering cheap car insurance quotes for a few driver categories.

Driver Category	Cheapest Insurance Company	Cheapest Monthly Quote
Drivers with a clean record	COUNTRY Financial	$44
Drivers with an incident	COUNTRY Financial	$62
Drivers with bad credit	COUNTRY Financial	$50
Military members and their families	USAA	$53
Teen drivers	COUNTRY Financial	$61
Senior drivers	COUNTRY Financial	$33

Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

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Cheapest car insurance by state

Location is an important factor in car insurance costs. Population density, road and weather conditions, vehicle vandalism and theft rates, and claims that other drivers file 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 city.

Nationally, car insurance in Florida is typically more expensive at $105 per month for liability coverage. Here are the average monthly quotes from the cheapest insurers in every state and Washington, D.C.

Average Liability-Only Rates by State

State	Liability Only
Alabama	$46
Arizona	$66
Arkansas	$44
California	$84
Colorado	$59
Connecticut	$109
Delaware	$79
Florida	$105
Georgia	$90
Idaho	$32
Illinois	$48
Indiana	$44
Iowa	$23
Kansas	$53
Kentucky	$76
Louisiana	$64
Maine	$39
Maryland	$149
Massachusetts	$55
Michigan	$71
Minnesota	$62
Mississippi	$43
Montana	$77
Missouri	$57
North Dakota	$81
Nebraska	$43
New Hampshire	$60
Nevada	$56
New Jersey	$108
New Mexico	$56
New York	$93
North Carolina	$62
Ohio	$40
Oklahoma	$37
Oregon	$72
Pennsylvania	$40
South Carolina	$69
South Dakota	$57
Tennessee	$45
Texas	$58
Utah	$60
Virginia	$62
Washington	$58
Washington D.C.	$194
Vermont	$67
West Virginia	$45
Wisconsin	$35
Wyoming	$67

Source: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile. Insufficient data is available to show results for Alaska, Hawaii, and Rhode Island.

State	Liability Only
California	$84

Cheapest regional insurance companies

It’s well worth considering regional insurers when you’re looking for affordable car insurance rates. If you prefer to handle buying coverage one-on-one with an insurance agent, smaller companies may offer more personalized service and have more local knowledge than large insurers.

Regional insurers are more limited and usually only offer policies in certain states, but depending on where you live, they may be the cheapest option.

These are the average liability-only and full-coverage car insurance quotes from the cheapest regional insurance companies.

Insurance Company	Regions Served	Full Coverage	Liability Only
COUNTRY Financial	Central, North Central, Northwest, Southeast, Southwest	$81	$44
NJM	Northeast and Mid-Atlantic	$93	$58
Mile Auto	North Central, Northwest, Southeast, Southwest	$117	$70
Erie	Mid-Atlantic, North Central, Southeast	$121	$75
Metromile	North Central, Northwest, Southeast, Southwest	$111	$61
American Family	Central, North Central, Northwest, Southeast, Southwest	$151	$82
Mercury	Central, Mid-Atlantic, North Central, Southeast, Southwest, Western	$162	$96
Direct Auto	Mid-Atlantic, North Central, Southeast, Southwest	$153	$95
Clearcover	Central, Mid-Atlantic, North Central, Southeast, Southwest	$195	$141

Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

How to get the cheapest car insurance

You have several ways to get cheaper rates on your car insurance. Start with the strategies below.

• 

  Compare car insurance rates

  • Potential savings: 30%

  • Effort: Very low

  Different insurers may offer better coverage options for your driving habits, credit history, and lifestyle. Shopping around will help you find the best car insurance quote.

• 

  Apply for discounts

  • Potential savings: 2%–34%

  • Effort: Low

  Safe driver, good student, multi-car, and multi-policy discounts could lower your car insurance bill. You can also get a discount for bundling home (or renters) and auto policies with the same insurer, which often results in substantial savings.

• 

  Maintain a clean driving record

  • Potential savings: 34%

  • Effort: Moderate

  Practice safe driving habits by wearing your seat belt, using your turn signal, and avoiding speeding, tailgating, distracted driving, and hard braking. Keeping your driving record clean is the best way to qualify for lower rates.

• 

  Consider adjusting your coverage

  • Potential savings: 51%

  • Effort: Moderate

  If you’ve paid off your vehicle, dropping a full-coverage policy for liability-only insurance could save you a lot on premiums. You may also consider reducing your liability coverage to state-minimum limits. An Insurify survey found that more than 5% of Americans have dropped full coverage and more than 12% have lowered their coverage limits to combat rising car insurance prices.

• 

  Equip your vehicle with safety features

  • Potential savings: 3%–40%

  • Effort: Moderate

  Improve your and your car’s safety with anti-theft systems, anti-lock brakes, and daytime running lights. Some insurers will reward you with discounts.

• 

  Consider usage-based insurance

  • Potential savings: 34%

  • Effort: Moderate

  If you’re an infrequent or low-mileage driver, usage-based options like pay-as-you-go and pay-per-mile insurance may be the cheapest.

Risks of getting the cheapest possible car insurance

The biggest risk when getting the cheapest car insurance policy is that you might not buy enough coverage.

Liability insurance covers costs related to any bodily injury and property damage you cause to other people in an accident. Unlike full coverage, it doesn’t cover your property damage. You pay for 100% of the damage to your vehicle in an at-fault accident if you have liability-only insurance. That means it’s often easier to find cheap liability-only coverage than cheap full-coverage car insurance.

State-minimum coverage tends to have low limits, so buying only liability coverage will likely leave you exposed financially if an accident you cause results in high costs for the other driver. Drivers leasing or financing their cars will need to buy full coverage, as leasing companies and lenders require more than state-minimum or liability-only insurance.

Our licensed insurance agents weigh in

Expert Insight

Mallory Mooney

Director of Sales and Service

Drivers would want to consider more than just the lowest rate. They need to know insurers have the financial stability to pay claims and maintain steady rates that won’t jump around or increase significantly on renewal. In many industries, you get what you pay for. Insurance is no exception to this.

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Expert Insight

Buddy Parkhurst

Insurance Agent

Be sure to account for all household members when you’re seeking a quote to make sure the insurance company can rate and cover them properly. Besides helping you get an accurate quote, disclosing your household members protects you from a “material misrepresentation incident,” which could mean your insurer denies a claim or cancels your policy.

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Cheap car insurance FAQs