Car insurance rates vary based on your personal factors and the insurer. Although car insurance is an expense most drivers have to deal with, you don’t necessarily have to pay a lot for it. It may be possible to get car insurance for less than $100 per month.
Here’s what you need to know about cheap car insurance.
CarInsurance.com Insights
- You can lower your premiums by taking advantage of discounts for a good driving record, bundling policies and enrolling in a defensive driving course.
- Seniors and experienced drivers with clean driving records are more likely to find affordable rates.
- Teens and drivers with poor driving records are unlikely to find car insurance less than $100 due to their higher risk.
Can I get car insurance for $100 a month?
You may be able to get car insurance for $100 a month, but it depends on various factors, including your state and your coverage limits. Your state and its laws play a significant role in determining your insurance premiums.
Rates can vary widely by state and even by ZIP code. They’re influenced by accident rates, traffic density and the frequency of insurance claims in the area. Living in an area with fewer accidents and claims can help keep your insurance costs lower.
Choosing the minimum coverage required by your state can lower your monthly premium. However, experts recommend getting more than the state minimums because minimums don’t provide much financial protection if you’re at fault in a costly accident.
Additionally, taking advantage of discounts offered by insurance companies, such as those for bundling policies or having a good driving record, can help.
Top companies offering policies under $100/month
Though your insurance rates will ultimately depend on personal factors, some companies offer cheaper rates than others.
You can get liability-only car insurance for $100 monthly with a coverage limit of 100/300/100. These limits mean the following:
- $100,000 per person in bodily injury liability
- $300,000 total for injuries in an accident
- $100,000 property damage liability
Liability-only vs. full coverage in the $100 range
While a liability-only policy of 100/300/100 isn’t one that people traditionally pick, it’s a great option if you have an older vehicle that’s not worth a ton but want plenty of liability protection.
Adding collision and comprehensive coverage will increase the monthly premium, but the extra cost is worth the added protection. Full coverage not only covers liabilities but also helps with repairs or replacement of your car, giving you peace of mind in case of accidents or other incidents.
The table below shows the companies that offer liability car insurance with limits of 100/300/100 for less than $100 monthly and how much extra you’ll have to pay for comprehensive and collision coverage.
| Company | Liability-only (100/300/100) | Full coverage with liability limits of 100/300/100 | Difference |
|---|---|---|---|
| Nationwide | $58 | $129 | $71 |
| Travelers | $60 | $134 | $74 |
| GEICO | $56 | $147 | $91 |
| State Farm | $63 | $165 | $102 |
| Progressive | $68 | $166 | $98 |
| Farmers | $94 | $199 | $105 |
| Allstate | $80 | $209 | $129 |
| USAA | $42 | $115 | $74 |
Regional insurers that offer full coverage for $100/month
Based on our data, the regional car insurance companies listed below offer full coverage car insurance rates at around $100 per month. These rates are for a full coverage policy with limits of 100/300/100 and $500 collision/comprehensive deductibles.
| Company | Average monthly rates |
|---|---|
| American National | $69 |
| Grange Insurance | $82 |
| Oregon Mutual Insurance | $96 |
| Virginia Farm Bureau | $97 |
| North Carolina Farm Bureau | $101 |
Full coverage refers to a policy that includes liability insurance, any other coverage required by law and comprehensive and collision coverages, which carry a deductible. Full coverage car insurance offers the most protection and is generally recommended unless your car is low value.
Smart strategies to get coverage under $100
If you haven’t found under $100 a month auto insurance coverage, you’re not out of luck. There are a few steps you can take to help lower your rate.
Shop around
Your first step should be to get several quotes online. Even if you’re happy with your current insurer, it doesn’t hurt to check out competitors’ rates every six months or annually.
Increase your deductible
The deductible is the amount you pay out of pocket before your insurance coverage kicks in when you file a claim. If you can afford it, carrying higher deductibles for comprehensive and collision coverage can reduce your monthly premium. But make sure you have your deductible amount in savings – you’ll be responsible for it if you have to file a claim.
Consider usage-based programs
Usage-based or telematics programs track your driving and can result in discounts for good drivers.
Bundle policies or sign up for discounts
Policy, driver and vehicle discounts can help you save money on car insurance.
“Some ways to lower car insurance rates to less than $100 per month are to increase deductibles, decrease coverage, shop for discounts, bundle policies, maintain a clean driving record and consider telematics programs that reward safe driving,” says James Brau, Joel C. Peterson professor of finance at Brigham Young University. “If you have kids or are a student yourself, have them study to get that good-student discount and maybe a scholarship down the road.”
Case studyWe used our car insurance calculator to get a sample quote for a vehicle owner between the ages of 25 and 44 living in Boston, Massachusetts. Using this sample profile, a state minimum coverage policy with limits of 25/50/30 would cost $50 per month, and a standard liability policy with coverage limits of 50/100/50 would cost $65 per month.
How can I check if I qualify for car insurance under $100?
The easiest way to determine if you qualify for car insurance under $100 per month is to use our free online estimator tool. Based on your ZIP code and driver profile, you can compare real monthly car insurance quotes in minutes. No personal information is required to see your quotes.
What factors determine whether you qualify for $100/month car insurance?
There are many factors that auto insurers consider when setting their rates. If you’re looking to get cheap auto insurance, particularly for less than $100 per month, keep these in mind:
- Driving record. A clean record without tickets or accidents will help you secure the lowest premiums possible.
- Mileage. The more you drive, the more you risk an accident and therefore will pay higher rates.
- Where you live: Risk is also based on location, so states and ZIP codes where crime and accidents are more prevalent have higher insurance costs.
- Age. Young, inexperienced drivers are much riskier to insure and pay more for coverage.
- Gender. Teenage male drivers pay higher rates than teenage females. As drivers age, this evens out.
- Type of car. Your rate will also be impacted by the vehicle you drive. An older, less expensive vehicle with safety features will typically be cheaper to insure than a sports car or luxury vehicle.
- Creditworthiness. Car insurance companies evaluate credit because drivers with lower credit scores are more likely to file claims, making them high risk, influencing their insurance premiums. However, this isn’t allowed in every state.
- Type of policy and coverage level. Finally, the details of your policy and how much coverage you have will impact the price. A minimal liability-only policy will be significantly cheaper than a full coverage policy with additional riders or endorsements, since the insurer must pay much less if you’re in an accident.
Types of car insurance available for $100 a month or less
A $100 monthly budget will likely cover liability insurance, but will have limited additional coverage options. Here’s what you can realistically expect for $100 a month:
- Liability insurance: Covers medical expenses and lost wages for others if you’re at fault in an accident. Liability insurance also covers the cost of repairing or replacing another person’s vehicle or property that you damage.
- Uninsured/underinsured motorist coverage: Some states require uninsured/underinsured motorist coverage; it can be included in a $100 monthly budget, though the limits might be minimal.
- Personal injury protection (PIP): In states where personal injury protection coverage is required, you might be able to include a basic level of this coverage within your budget.
How much does 50/100/50 liability-only insurance cost monthly?
Based on our data analysis, liability-only car insurance costs $54 monthly for a coverage limit of 50/100/50. These rates are based on a 50/100/50 policy, which provides slightly more protection than what is required under state laws in most cases.
These limits mean the following:
- $50,000 per person in bodily injury liability
- $100,000 total for injuries in an accident
- $50,000 property damage liability
If you’re looking for liability-only coverage, which only pays for damage you cause to other vehicles and property, you have many options from national insurers. Here are the cheapest companies for 50/100/50 liability-only coverage:
| Company | Average monthly rates | Average annual rates |
|---|---|---|
| GEICO | $47 | $560 |
| Travelers | $54 | $646 |
| Nationwide | $54 | $651 |
| State Farm | $54 | $651 |
| Progressive | $59 | $709 |
| Allstate | $71 | $854 |
| Farmers | $83 | $991 |
| USAA | $36 | $435 |
Note: USAA offers its services only to military members, veterans and their families.
What’s the monthly cost for state minimum car insurance?
The state minimum coverage costs an average of $42 monthly or $502 a year.
The state minimum limits aren’t advised for most drivers as they don’t provide much financial protection in case of an accident. Our editors recommend liability limits of 100/300/100.
If you’re looking for bare-bones coverage and the cheapest possible car insurance premiums, these major companies offer policies that meet your state’s minimum liability limits required to drive legally for under $100 per month:
| Company | Average monthly rates | Average annual rates |
|---|---|---|
| GEICO | $34 | $405 |
| State Farm | $42 | $502 |
| Travelers | $43 | $518 |
| Nationwide | $44 | $532 |
| Progressive | $46 | $549 |
| Allstate | $58 | $700 |
| Farmers | $58 | $701 |
| USAA | $28 | $335 |
Note: USAA offers its services only to military members, veterans and their families.
How to structure your coverage for affordability
If you want more affordable car insurance, it’s essential to structure your policy to make it as affordable as possible. Here are some tips for getting cheaper coverage:
- Consider your coverage types and limits: Look at the types of coverage you have and your coverage limits. The higher your coverage limits are, the more expensive your premium will be. Similarly, if you’ve added endorsements to your policy, like roadside assistance, it will raise your premium. Review your policy to see if there are ways to reduce your coverage limits or coverage types without sacrificing the protection you need.
- Choose a low deductible: Full coverage car insurance policies have a deductible, which you pay out of pocket when you file a claim. Choosing a higher deductible will reduce your monthly car insurance premium. For example, if you currently have a $250 deductible, raising your deductible to $500 or $1,000 would reduce your premium. However, make sure you can afford a higher deductible in the event of an accident or other claim before you change it.
- Bundle your policies: One of the most effective ways to save money on car insurance is to bundle multiple policies. Most car insurance companies offer a discount if you purchase more than one policy, like car insurance with home insurance or renters insurance. Some insurers, like Allstate and Progressive, offer bundling discounts of 20% or more.
- Explore a pay-per-mile policy: If you don’t drive often, a pay-per-mile car insurance policy could be a more affordable option. With these policies, you pay a flat monthly rate and a small fee for each mile driven. At the end of the month, you’re only charged for the distance you drove. Pay-per-mile insurance policies are often recommended for people driving less than 10,000 miles yearly.
When $100/month coverage isn’t realistic
While $100 monthly car insurance is possible for some drivers, it isn’t always a realistic expectation — especially if you fall into a high-risk driver category. Insurers use complex rating systems to assess risk, and some profiles are simply more expensive to insure.
High-risk profiles (tickets, accidents)
Drivers with a history of speeding tickets, accidents or DUI convictions are considered high-risk by insurers. These violations increase the likelihood of future claims, which drives up premiums significantly. Even one at-fault accident can raise your rate well above $100 per month. In these cases, improving your record over time and shopping for high-risk coverage options can help reduce costs.
Teens and new drivers
Young drivers — especially teenagers — typically pay the highest car insurance rates. With little to no driving history, insurers view them as more likely to cause accidents. In fact, average monthly premiums for 16- to 19-year-olds often exceed $300 for full coverage.
Areas with high car insurance rates
Where you live matters. States like Florida, Michigan and Louisiana have some of the highest car insurance rates in the country due to higher accident rates, weather-related risks or state laws that drive up claim costs. If you live in one of these areas, $100/month premiums may be out of reach — especially for full coverage. Consider adjusting your coverage levels or increasing your deductible to find savings.
FAQ
Is $100 a month for car insurance a reasonable price?
The average annual rate for 100/300/100 coverage with comprehensive and collision coverage and a $500 deductible is $1,895 or about $158 monthly, so $100 a month is reasonable.
Should you opt for liability-only coverage to save on car insurance?
Opting for liability-only coverage can help you save money on car insurance, especially if you drive an older vehicle with a low market value. This type of coverage will pay for damages you cause to others but leaves you responsible for any repairs to your car in the event of an accident, theft or other incidents.
While it’s cheaper, consider whether you can afford to replace or repair your vehicle out of pocket if needed. If you drive an expensive or new vehicle, it’s wise to opt for higher liability limits and also get comprehensive and collision insurance to protect your investment.
Can you get full coverage for $100 a month?
While it is possible to get full coverage for $100 a month, it largely depends on your location, driving record, vehicle type, age and insurance company. In some areas, drivers with clean records may find policies in this price range. However, full coverage typically costs in many cases because it includes comprehensive and collision.
Can new drivers get car insurance for $100 a month?
New drivers, especially teens or those without previous driving experience, pay higher insurance premiums due to their lack of driving history and higher risk. New drivers are unlikely to find car insurance for $100 a month. However, they may reduce costs by taking advantage of discounts or being added to a parent’s policy.
Can teens get car insurance for less than $100 a month?
Teens are highly unlikely to get car insurance for less than $100 a month.. Insurance companies consider teens high-risk, leading to higher premiums. Families can explore discounts for good students, safe driving courses, and bundling policies to lower costs, but reaching a $100 monthly premium is still unlikely.
Can seniors get car insurance under $100 a month?
Seniors may find getting car insurance for under $100 a month easier than teens or new drivers. Insurance companies often offer discounts for mature drivers, especially those with clean driving records and low annual mileage. Additionally, many insurance providers offer senior-specific discounts, making it possible for some seniors to obtain affordable rates.
Is $100 a month car insurance available for high-risk drivers?
High-risk drivers, such as those with multiple traffic violations or accidents, typically face higher insurance premiums. Finding car insurance for $100 a month in this category is challenging. High-risk drivers can look for specialized insurers and work on improving their driving records to lower their premiums over time.
Can younger drivers qualify?
No, younger drivers will not qualify for car insurance for $100 a month or less — especially not teen drivers. While it’s unlikely a teen will qualify for a $100/month policy, joining a parent’s policy, maintaining good grades and enrolling in telematics programs can help reduce the cost.
Final thoughts
Cost is an essential factor in car insurance, but it can’t be the only consideration. Maintain coverage limits that protect you, your property and your family in the case of an accident.
“You could opt for liability-only coverage, which can save on car insurance, but it can be a risky trade-off. It provides minimal protection and may not cover damages to your own vehicle, making it more appropriate for older/cheaper cars or if you’re on a tight budget,” Brau says.
Resources & Methodology
Methodology
CarInsurance.com commissioned Quadrant Information Services to pull car insurance rates in 2023 for a 40-year-old male and female driver with a clean driving record and good insurance score. To evaluate the rates, we have compared 53,409,632 insurance quotes from 170 national & regional insurance companies across 34,588 ZIP codes in the U.S.
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