Cheapest car insurance in 2026: Compare rates by company and state

In 2026, Travelers has the cheapest rates for full-coverage car insurance at $164 per month. GEICO offers the most affordable state minimum coverage at $53 per month and liability-only policies at $65 per month. After three years of steep rate hikes, average premiums are finally stabilizing across the industry, with several major insurers reducing their prices this year.

To find the best deal, compare insurance quotes from different insurance companies, consider your personal risk factors, and choose the coverage that fits your needs.

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Contents

Table of Contents

Table of Contents

• Which company has the lowest rates overall?
• How do rates compare by driver age group?
• How does your driving record affect your rate?
• What does poor credit do to your rate?
• Which states have the lowest car insurance rates?
• Car insurance rates by state — all 50 states and D.C. 
• How have car insurance rates changed since 2021?
• Which coverage type gives you the lowest rate?
• Does gender affect car insurance rates?
• How do you get a lower car insurance rate?
• What are the risks of buying the lowest-priced policy?
• Frequently Asked Questions: Cheap car insurance
• Why do no two drivers pay the same price 
• Resources & Methodology

Which company has the lowest rates overall?

Travelers is the overall cheapest car insurance carrier in 2026. Its average cost is $1,962 per year for a full coverage policy with limits of 100/300/100 and $500 collision and comprehensive deductibles, based on CarInsurance.com’s 2026 data analysis. 

GEICO, on the other hand, has the cheapest insurance premiums for a state minimum and liability-only policy, at $635 annually and $781 per year, respectively. 

The table below lists cheap car insurance companies in 2026 and their monthly rates for different coverage types. 

* USAA offers its policies only to military members, veterans and their immediate families.

The table above shows average rates; exactly how much you pay depends on your personal circumstances. Car insurance quotes vary based on your age, location, driving record, credit-based insurance score, driving habits and the type of vehicle you drive. 

How do rates compare by driver age group?

Car insurance rates drop significantly as drivers get older and gain experience behind the wheel. Teen drivers aged 16-19 pay the highest rates across all insurers, averaging $5,528–$12,511 annually, while adults aged 25-60 pay the least, as low as $1,974 per year with Travelers.

Below is the average annual rate breakdown by age group across six major insurers, based on our recent data study.

*USAA is available exclusively to active military members, veterans and their immediate families.

Teen drivers (16–19) are the highest-risk age group on the road, which is why insurers price their policies significantly higher than for other demographics. Insurers use a rating system that groups drivers by the statistical likelihood of filing a claim, and teens have the highest claim frequency and severity of any age group.

A teen driver insured with Progressive pays $9,823 annually, nearly $7,274 more than what an adult 25-60 pays with the same insurer ($2,549). 

Senior drivers aged 65-75 pay the lowest rates with Travelers ($1,987), followed by GEICO at $2,237 per year. Both these insurers offer annual savings of more than $1,000 compared to Allstate’s $3,170 rate for the same age group.

Teen drivers aged 16-19 pay an average of $8,045 per year for full coverage, $5,470 more than the national average of $2,575 for drivers aged 25-60.

How does your driving record affect your rate?

A single speeding ticket on your driving record can raise your annual premium by 20% to 68%, depending on your insurer and driving record. Speeding tickets cause the smallest increases; at-fault accidents hit harder, and a DUI can more than double what you pay, in some cases adding more than $1,500 to your annual premium.

The violation type matters significantly, but so does your insurance company. State Farm applies the smallest surcharge for both speeding tickets (22%) and at-fault accidents (26%), making it one of the more affordable options for drivers with a minor infraction. 

Nationwide, in comparison, increases the rates by 149%, jumping from $2,524 for a clean record to $6,276 after a speeding ticket, a $3,752 annual increase for a single offense.

Not all insurers treat DUIs the same. Progressive’s rates go up by 36%, while Nationwide and GEICO hike rates by more than 140%. That difference alone can cost you more than $1,500 annually, underscoring the importance of reevaluating your policy after a major infraction.

A DUI doesn’t just increase your premium; it can completely change which insurer offers you the best rate. The company that was cheapest before may no longer be the most affordable later.

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What does poor credit do to your rate?

If you have poor credit, your annual car insurance premium could go up by 65% to 342%, depending on your insurer. This means you might pay between $2,159 and $9,832 more each year than someone with good credit for the same coverage. State Farm has the largest increase in our analysis, with rates rising from $2,875 for good credit to $9,832 for poor credit. GEICO has the smallest increase at 65%.

*USAA is available exclusively to active military members, veterans and their immediate families.

Many insurers use credit information to help assess risk, as people who manage their credit poorly are more likely to file claims, according to the Insurance Information Institute.

States such as  California, Hawaii, Massachusetts and Michigan prohibit insurers from using credit scores as a rating factor entirely. If you live in one of these states, your premium cannot be affected by your credit history, regardless of your score or which insurer you choose.

Which states have the lowest car insurance rates?

Vermont is the most affordable state for car insurance in the country, with average full coverage costing $1,660 annually or $138 per month. It’s closely followed by New Hampshire ($1,689), Hawaii ($1,757), Ohio ($1,783) and Maine ($1,808).

The top five most affordable states all sit well below the national average, with full coverage ranging from $1,660 to $1,808 per year.

Most affordable states (full coverage, annual average)

Low car insurance rates in these states aren’t accidental; they reflect a combination of factors insurers use to price risk at the state level. Low population density, less traffic congestion, fewer accidents per mile driven and lower rates of uninsured drivers. Fewer cars on the road mean fewer collisions, which directly translates into lower claim costs for insurers and lower premiums for drivers.

Most expensive states (full coverage, annual average)

Car insurance rates by state — all 50 states and D.C. 

Car insurance rates vary by more than $2,300 annually, depending on where you live. On average, car insurance costs $2,587 nationwide for a full coverage policy, according to a detailed data analysis by CarInsurance.com’s data team.

Vermont is the most affordable state at $1,660 per year for full coverage, while Louisiana is the most expensive at $3,999, nearly 2.5 times more for the same coverage type. Where you live is one of the biggest factors in what you pay for insurance.

How have car insurance rates changed since 2021?

New Jersey experienced the highest increase of any state, with rates rising 57% between 2023 and 2025, from $1,998 to $3,133. Washington state (up 51%) and Washington, D.C. (up 50%) also saw significant jumps. As a result, drivers in these areas are paying roughly $1,000 to $1,200 more annually in 2025 compared to two years earlier.

Looking back to 2021, the increases are even more striking. In Idaho, rates climbed from $1,146 in 2021 to $2,270 in 2025, nearly double in four years. Vermont, typically one of the most affordable states, saw rates rise from $957 in 2021 to $1,830 in 2025. Even the least expensive states experienced substantial increases.

Car insurance rates increased in every state between 2021 and 2025, with New Jersey, Washington and Washington, D.C. seeing the steepest climbs, up 50% or more since 2023. Alabama, Montana and South Dakota saw the smallest increases between 2023 and 2025.

It’s important to compare quotes because it is one of the most practical ways to make sure you’re still getting a fair rate.

Which coverage type gives you the lowest rate?

State minimum liability is the cheapest way to insure a car, averaging $76 a month or $913 a year. But cheap and right aren’t always the same thing. The coverage type that makes the most sense for you depends on the type of car you drive, your financial situation and how much risk you’re willing to take on.

State minimum liability is the bare minimum you need to drive legally. It helps cover the other person’s damages, but leaves your own car unprotected. The $76 monthly cost is appealing, but if you’re at fault in a crash, the repair bill is yours alone.

Liability-only coverage at 50/100/50 is a solid step up from the bare minimum, with higher limits for injuries and property damage. For $86 more a month, it’s a good way for drivers to get more protection without the cost of full coverage. But like state minimum, it still leaves your own car completely unprotected.

Full coverage with liability limits of 100/300/100 is what CarInsurance.com editors recommend for most drivers. It bundles liability with collision and comprehensive, so your own car is protected whether you cause the accident, someone else does or something unexpected happens, like a tree falling on your car.

Going from a $250 to a $1,000 deductible saves $511 a year. If you can handle a $1,000 expense, the lower monthly cost makes more sense.

Does gender affect car insurance rates?

Gender has far less impact on car insurance rates than many expect. Travelers offers the cheapest car insurance rates for both male and female drivers, at $1,975 and $1,949, respectively, a difference of only $26. 

Below are average annual full-coverage car insurance rates for male and female drivers.

*USAA is available exclusively to active military members, veterans and their immediate families.

California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania don’t allow insurers to use gender as a rating factor at all. If you live in one of these states, your gender has zero effect on your premium by law.

How do you get a lower car insurance rate?

The most effective ways to lower your car insurance rate don’t require a perfect driving record or a brand new car. Most drivers overpay simply because they haven’t compared quotes recently, haven’t asked about discounts or are carrying a deductible that doesn’t match their financial situation.

• Compare quotes: Rates vary significantly across insurers for similar coverage, and loyalty is rarely rewarded as people expect. Compare at renewal, but also after any major life change: a new car, a new address, adding a teen driver, getting married or divorced or even after an accident.
• Ask about discounts: Most insurers offer more discounts than they proactively tell you about. Safe driver, good student, multi-policy bundling, paying your premium in full, paperless billing, new vehicle and safety features, all these can help lower your premiums.
• Raise your deductible strategically: Going from a $250 deductible to a $1,000 deductible saves an average of $511 a year nationally. You pay less monthly but more out of pocket if you file a claim. It only makes sense if you have enough in savings to comfortably cover that higher amount when you need it.
• Drive less, pay less: If you drive under 10,000 miles a year, you might qualify for low rates. Ask your insurer about low-mileage discounts or pay-per-mile programs, which charge you based on how much you actually drive rather than a fixed annual estimate.
• Improve your credit score: In most states, your credit-based insurance score plays a role in what you pay. The better your score, the lower your premium tends to be. Even moving from poor to fair credit can put you into a noticeably lower rate tier.

Not sure if you’re overpaying? The CarInsurance.com ZIP code calculator shows average rates by insurer in your area — no personal information required.

What are the risks of buying the lowest-priced policy?

The cheapest policy available will always look appealing, especially when premiums have risen as sharply as they have since 2022. But the lowest price almost always comes with trade-offs, and most drivers don’t discover what those trade-offs are until they’re standing on the side of the road after an accident. The savings are real upfront. The exposure can be far more expensive later.

• Low limits leave you personally exposed: State minimum liability covers damage you cause to other people and their property. It does not cover your car, your medical bills or anything that happens to you. In a serious accident, minimum limits can be exhausted quickly. If you cause $80,000 worth of damage and your policy only covers $25,000, you’re personally responsible for the remaining $55,000. That gap doesn’t disappear; it follows you.
• Liability coverage limits: The maximum your insurer will pay per person, per accident and for property damage, matter enormously in a serious claim. Buying the cheapest policy often means buying the lowest limits available, which is fine until it isn’t.
• Cheap doesn’t always mean reliable: A low premium from an insurer with poor claims handling can cost you more in time, stress and out-of-pocket expenses than a slightly higher premium from a carrier with a strong track record. When you need your insurer to come through, their reputation matters as much as their price.

The true cost of a cheap policy isn’t what you pay each month; it’s what you pay out of pocket when the coverage runs out before the damage does.

Frequently Asked Questions: Cheap car insurance

Who has the cheapest car insurance?

Travelers offers the lowest average full-coverage rate nationwide at $164 per month, according to CarInsurance.com’s 2026 analysis. GEICO is the most affordable for liability-only ($65/month) and state minimum coverage ($53/month).

Although USAA has lower rates across all categories, eligibility is limited to military members, veterans, and their families.

What is the cheapest car insurance coverage type?

State minimum liability is the cheapest option, averaging $76 a month nationwide. It satisfies legal requirements but won’t cover damage to your own car after an accident or theft. Full coverage with a $1,000 deductible averages $192 a month and offers much broader protection, a smarter choice if your car is new or you have a loan or lease on your vehicle. 

Which states have the cheapest car insurance?

Vermont has the cheapest car insurance in the country at $1,660 a year for full coverage, followed closely by New Hampshire ($1,689), Hawaii ($1,757), Ohio ($1,783) and Maine ($1,808).

How can I get cheap car insurance online?

The quickest way to find affordable coverage online is by using a comparison tool that gathers quotes from multiple insurers at once. Aim to get at least three quotes, review each company’s reviews, and ask about available discounts before making a decision. CarInsurance.com’s ZIP code calculator lets you compare estimated rates side by side without having to enter your contact details upfront.

Why is my car insurance more expensive than my neighbor’s for the same car? 

Even if everything looks the same, insurance rates can still vary widely. That’s because insurers aren’t just pricing the vehicle; they’re pricing your driving record, age, credit score, claims history, and even marital status, all of which play a role. So if your neighbor has a cleaner record or good credit, they could pay less for the exact same coverage.

It also comes down to the insurer. Every company weighs these factors differently, which is why quotes can vary by hundreds of dollars. On top of that, your neighbor might have a higher deductible or different coverage limits, which would lower their monthly cost.

I’ve been with the same insurer for 10 years — am I getting a loyalty discount or am I overpaying?

Loyalty discounts do exist, but they’re usually small and don’t always keep pace with rate changes over time. In many cases, long-time customers end up paying more simply because they haven’t shopped around. Insurers often offer better deals to new customers, so it’s worth comparing quotes every year or two to make sure you’re still getting the best deal.

Does the cheapest car insurance company in my state charge the same rate in every city?

No, even the cheapest insurer in your state won’t charge the same rate in every city.

Car insurance pricing is heavily based on location, often down to your ZIP code. Insurers consider local risk factors such as traffic density, accident rates, theft, weather, and repair costs, all of which can vary widely from one city to another.

Why do no two drivers pay the same price 

Every insurer builds your rate from a combination of personal factors: your driving record, age, credit score, how many miles you drive, where you live and the coverage you choose. Each of those factors is weighed differently by insurers, which is why the same driver can get wildly different quotes just by shopping around.

Your ZIP code alone can significantly affect your rate. Insurers look at local accident frequency, theft rates, weather patterns and even how expensive repairs are in your area. Two drivers in the same city but with different ZIP codes can pay different premiums.

The bottom line is that no two drivers bring the same combination of factors to the table, which is why no two drivers pay the same price, and why comparing quotes regularly is the only way to know if your rate still makes sense.

Resources & Methodology

Source

Insurance Information Institute. “What if I can’t find auto coverage?” Accessed March 2026.

Methodology

CarInsurance.com commissioned Quadrant Information Services to get car insurance rates. The rates are based on the sample profiles of 40-year-old male and female drivers carrying full coverage policies with limits of 100/300/100 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.

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