Cheap car insurance buying guide: How to get affordable coverage

Car insurance is a major expense for most drivers. Although every driver has a unique situation that impacts their insurance premiums, some insurers consistently offer lower rates than others. Nationwide, Travelers, and Geico are a few companies that regularly offer attractive rates to drivers. 

Getting affordable car insurance doesn’t have to be complicated if you know what steps to take. Whether you’re shopping for a new policy or trying to lower your current premium, there are several strategies to help you save. Start by comparing quotes from multiple insurance companies, as rates can vary significantly. Next, look for discounts, such as those for safe driving, bundling policies or good students. Adjusting your coverage levels and raising your deductible can also lower your premium. 

Read on to learn how to secure cheap car insurance without sacrificing the protection you need.

Cheapest car insurance companies

Some insurers tend to offer cheaper car insurance rates than others. As you explore your car insurance options, keep these relatively affordable car insurance companies in mind. 

The table below highlights the average annual rates by company.

Note: USAA is only available to military community members and their families.

Cheapest car insurance companies by state

The state you live in has a dramatic impact on your car insurance costs. In each state, some insurers tend to offer more affordable rates than others. 

The table below highlights the cheapest insurance companies by state. 

Cheapest car insurance companies by driving record

Car insurance companies consider a range of factors when determining your auto insurance premiums, including your driving record. Generally, drivers with a clean record enjoy lower rates. 

We take a closer look at how different violations impact rates below. 

Cheap car insurance companies for speeding tickets

Drivers with a speeding ticket tend to see higher car insurance costs. But some insurers still offer relatively affordable rates. 

State Farm, Nationwide, and Travelers each offer relatively cheap rates to drivers with speeding tickets. Use the table below to explore other cheap companies.

Note: USAA is only available to military community members and their families.

Which insurance companies offer cheap rates after a DUI conviction?

A DUI conviction is a serious driving offense, which leads to a significant rate spike. 

State Farm, Progressive, and Travelers each offer relatively cheap rates to drivers with DUIs. Use the table below to explore other cheap companies.

Note: USAA is only available to military community members and their families.

Insurance companies that offer cheap rates after an at-fault accident

After an at-fault accident, you should expect your insurance costs to rise. 

State Farm, Nationwide, and Travelers each offer relatively cheap rates to drivers with at-fault accidents. Use the table below to explore other cheap companies.

Note: USAA is only available to military community members and their families.

How often should I shop around for new car insurance rates? 

In general, experts recommend shopping around for car insurance at least once a year.

That guideline is because premiums can change, and, as we found, the difference in price between insurers can be significant. For example, the cheapest coverage we found for adults between the ages of 25 and 60 was $1,406 a year for full coverage from USAA. By contrast, the highest was Allstate at $2,509 — a difference of over $1,100. By shopping around and comparing quotes, you could save hundreds each year. 

Why it’s important to shop around for car insurance coverage

Across the board, car insurance is getting more expensive for most drivers. According to the U.S. Bureau of Labor Statistics, the cost of car insurance increased by nearly 13% between November 2023 and November 2024, the latest available data. 

Rather than sticking with one insurer, shopping around is key. You may find that another insurer offers much lower rates for the same coverage level.

“The most important thing to consider here is making sure you’re looking at equivalent coverages offered between the different providers,” cautioned Benjamin Bruinekool, principal at the Western Michigan Insurance Agency. 

Although you may find competitive rates from major insurers operating nationwide, it’s a good idea to get quotes from smaller, regional or local insurers as well. 

Regional insurers like Erie Insurance, NJM Insurance and CSAA Insurance Group are highly rated for customer satisfaction, and they may be able to offer more competitive rates than larger companies. In fact, Erie Insurance ranks as one of our top car insurance companies thanks to its low rates, policy offerings and customer satisfaction. 

Keep in mind that cost shouldn’t be the only determining factor to consider when shopping for a policy. How responsive a company is and the level of service it provides when you have a claim are critical.

“If the consumer is happy with their current provider when it comes to customer service and claims handling, then I would not advise switching for savings less than 15%,” said Bruinekool.

Cheap car insurance companies by age group

Age can play a significant role in your premiums. Generally, teens and young adults pay much higher rates than other drivers. That’s because teens are statistically more likely to be involved in serious accidents.

By contrast, seniors — those 65 or older — tend to pay slightly lower rates than other age groups. 

Tips for new drivers to secure cheap car insurance rates

New drivers tend to be on the younger side; in a study from AAA’s Foundation for Traffic Study, 60% of young adults said they got a driver’s license before they turned 18. These drivers have limited driving records and credit histories thanks to their young age. As a result, coverage tends to be quite expensive. 

However, there are some ways a newer driver can reduce their premiums: 

1. Establish a clean driving record: It may seem obvious, but practicing safe driving habits — following speed limits and obeying traffic signs and lights — can help you avoid accidents. Your insurance premiums will drop as you build more experience behind the wheel and remain accident-free. 
2. Choose the right first car: The year, make and model of your car plays a big role in determining your premiums. Since coverage for teens and young adults is already expensive, avoid cars with higher premiums. Luxury and exotic cars can have sky-high premiums, while we found that cars like the Honda HR-V and the Mazda CX-30 tend to have the lowest premiums. 
3. Add on to a parent’s policy: If possible, ask your parents to add you to their policy. If you’re part of their household, it will be cheaper to add to their policy than to purchase a standalone one on your own. 

Car insurance discounts to lower your premiums

Whether you’re shopping for a new policy or renewing an existing one, be sure to ask your insurer about potential discounts. 

“Ask about any and all discounts that are available, not just what they have applied,” advised Bruinekool. “Oftentimes, there are discounts you qualify for that were not applied because the information did not come up when doing the initial fact-finding.”

Potential discounts include: 

• Good student discounts: High school and college students who maintain good grades — usually a “B” average or better — may be eligible for premium discounts. 
• Anti-theft discounts: Anti-theft devices and security systems can be effective deterrents, so many insurers give you a discount for installing these devices. 
• Multi-policy: If you bundle your auto insurance with homeowners, renters or other insurance products from the same company, you could slash your premiums. 
• Telematics discounts: Many insurers offer telematics programs. By installing a device or a mobile app that tracks your driving habits and vehicle usage, safe drivers could qualify for substantial savings. 

Resources & Methodology

Methodology

The rates are based on the sample profile of a 40-year-old male and female driver for different coverage limits.

• Full coverage policy with limits 100/300/100 and a $500 coll/comp deductible.
• A liability-only policy with limits 50/100/50.
• Minimum liability policy with state-specific limits.

We have gathered data based on different driving profiles, including-

• Teen drivers (Age: 16-19)
• Senior drivers (Age: 65-75)
• Drivers with a DUI
• Drivers with a speeding ticket
• Drivers with an at-fault accident on their record.