Cheapest Car Insurance: How to Get It

If you want the cheapest car insurance possible, you have to choose the lowest amount of coverage that’s legally required. This “bare bones” coverage usually consists of liability insurance at the lowest legal limits. If you cause an accident, it pays for others’ property damage and medical bills and that’s it. For more coverage, you have to raise the limits and buy optional coverages, which bring the price of insurance a lot higher.

To get the cheapest car insurance, choose the liability option with the lowest numbers, don’t buy optional coverages and ask about car insurance discounts. This will give you the cheapest car insurance quote from that insurer.

If you know what coverage you want to buy, start comparing quotes from multiple insurance companies. To find out more, keep reading.

Jump ahead:

• Cheapest Car Insurance Companies in Your State for Full Coverage
• Minimum car insurance rates by state
• When it makes sense to buy the cheapest car insurance
• Discounts
• Frequently asked questions

Find cheapest car insurance by comparing car insurance rates

Aside from buying the least amount of coverage required to drive legally, comparing car insurance rates will always save you money. You can't buy the cheapest car insurance policy if you don't which one that is, and that is only learned from shopping around to see how much prices vary for the same coverage. To give you an example of how much you save, CarInsurance.com analyzed rates for a full coverage policy to identify the savings drivers can expect. Rates were fielded from up to six major insurers for nearly every ZIP code in each state. The average savings is the dollar difference between the highest and lowest rates received from insurers, on average, for each state’s ZIP codes.

Key findings reveal that:

• the average savings nationwide after comparing car insurance quotes $1,127 a year
• the average percentage savings after comparing car insurance quotes is 138 percent a year

Enter your state in the search field below to find cheapest car insurance in your state, compare & see the annual average car insurance rate, highest and lowest rates, on average, and the amount of savings.

Cheapest Car Insurance Companies in Your State for Full Coverage

If you don't want bare-bones coverage, but want to know who has the lowest rates, you need to do some comparison shopping. Below you'll see how major car insurance companies compare for price for full coverage in your state. Enter your state in the search field to see major insurers ranked cheapest to most expensive.

*Rates were fielded by Quadrant Information Services from up to six major insurers in nearly every ZIP code of each state. Driver profile: male, age 40, married, clean record and good credit, driving 2016 Honda Accord.

As you can see, among top insurers from whom rates were commissioned, Geico is the cheapest car insurance company in the nation's capital and every state, except the following, for full coverage:

• Alaska
• Iowa
• Kansas
• Maryland
• Missouri
• North Carolina
• North Dakota
• Nebraska
• New Jersey
• Rhode Island
• Texas
• Virginia
• Washington
• Wyoming

Here are nationwide average car insurance rates by company, for full coverage:

• Geico: $901
• Nationwide/Allied; $1,227
• State Farm: $1,313
• Farmers: $1,351
• Progressive: $1,415
• Allstate: $1,758

Cheapest Car Insurance Companies in Your State for Minimum Liability Coverage

If you want to see how companies compare on price, below are average rates by company, for each state's minimum liability coverage, the amount you need to drive legally. Based on CarInsurance.com's rate analysis of six major insurers, Geico was the cheapest car insurance company in 37 states and in the District of Columbia. Enter your state in the search field to find the cheapest car insurance company for minimum coverage where you live.

As you can see, among top insurers from whom rates were commissioned, Geico is the cheapest car insurance company in the nation's capital and every state, except the following, for state minimum liability coverage:

• Iowa
• Illinois
• Massachusetts
• Maryland
• North Carolina
• North Dakota
• New Jersey
• Nevada
• Ohio
• Oregon
• Pennsylvania
• Rhode Island
• Virginia

Here are nationwide average car insurance rates by company for state required minimum liability coverage:

• Geico: $338
• State Farm: $454
• Nationwide: $523
• Progressive: $552
• Farmers: $659
• Allstate: $667

Minimum car insurance rates by state

Liability limits are usually written like this: 30/60/25. In this example, using Texas minimum requirements, the numbers show coverage that would pay:

• medical expenses of up to $30,000 per person for those you injure in an accident
• medical expenses up to $60,000 per accident for others' injuries
• up to $25,000 for property damage to another driver's vehicle or property

To give you an idea of how much state minimum coverage costs, here are average annual rates for the cheapest car insurance coverage in every state.

Methodology: The table shows the average annual rate for nearly all ZIP codes in the state for minimum coverage from up to six major carriers including Progressive, Allstate, State Farm, Nationwide, GEICO and Farmers. In some states, uninsured motorist coverage and/or personal injury protection coverage is mandatory in addition to liability. For those states, these coverages are included in our average rate shown in the chart, though we list just the state minimum levels for liability. Data was provided for CarInsurance.com in May 2017 by Quadrant Information Services. New Hampshire doesn’t require drivers to have car insurance, but most drivers do, and we’ve listed what is mandated if you choose to carry coverage. Driver profile is male, age 40 with good credit and clean driving record for 2016 Honda Accord.

When it makes sense to buy the cheapest car insurance?

Going with the minimum liability car insurance required by your state is rarely recommended. The amount of coverage required by state law is low, which means even a minor accident can exceed the amount your insurer will pay out. "You should be careful to have adequate coverage to fully protect your vehicle and other assets so you don't get stuck with out-of-pocket expenses," says Penny Gusner, consumer analyst for CarInsurance.com. But there are a few scenarios in which having minimum coverage may be a good strategy. Here are four:

1. Your car is old and not very valuable, so you skip comprehensive and collision

Collision coverage pays to repair your car if you're in an accident. Comprehensive coverage pays to replace your car if it’s stolen and pays for damages from fallen objects, like a tree, and from fire, floods, animal strikes and vandalism. Both of these types of protection are optional. Comprehensive and collision only pay out up to the actual cash value of your car. That’s why these coverages may be unnecessary if the vehicle isn't worth much.

"This is especially true for a car that you aren't driving as much, such as an extra car that sits most of the time and you want to pay as little as possible for insurance," says Gusner. “If you are looking to save to buy a newer car, then by dropping down coverage to state minimum you can put away the money saved for the replacement car."

William Harris, an independent insurance agent in Los Angeles, echoes Gusner, but points out the consequences. "Dropping comp and collision could be reasonable, but remember that, if it's your only car, you'll have to pay for any body work or be prepared to drive around a car that looks like a wreck."

2. You don't drive very much.

If you log few miles on your car, Gusner says minimum coverage may suffice, simply because the less you drive, the less risky your driving experience will be.

"If you are retired, work from home or otherwise don't drive much, then dropping liability coverage to the lowest possible limits can save you money," she says. "You aren't as likely to be in an accident as someone who commutes to and from work each day or drives for work."

She adds that consistently driving few miles each year will likely snag a low-mileage discount.

3. You don't have a home, big savings or other assets to protect.

If you're in an accident, the other driver or drivers can sue you to cover damages beyond what your insurer pays out, which puts all your assets at risk. But if you don't have any assets to target, it's less likely you'll be sued, says Gusner.

But that comes with a strong warning: "Just because you don't have much doesn't mean a lien can't be placed against you, or that your license and registration can't be suspended if you cause an accident and can't pay for all damages," Gusner says. "If you don't want to end up in that type of situation, then it's wise to buy higher liability limits if you can afford it."

4. You want to wait until dings are off your record and full coverage becomes cheaper.

Points are placed on your traffic and insurance record for most moving violations and accidents that are your fault. These points figure into the mix that insurers use to determine how much you pay. High-risk drivers mean higher risks for insurance companies and higher rates for you if you have a less-than-stellar driving record.

These points usually follow you for a few years. Esurance, for one, says moving violations will be used when setting premiums for three years, which gives motorists the opportunity to get lower rates after that time. Most insurers follow similar guidelines.

Until your rates drop, however, you may decide to buy only minimum liability insurance to save money, Gusner says.

"Insurance may be costing you more than average due to violations or accidents on your record," she explains. "While it's always wise to carry higher liability limits if you can, carrying bare-bones basic car insurance is better than nothing.

Try to work on keeping a clean record and within three years your rates should drop so that you can afford higher limits."

There are other ways high-risk drivers can find affordable rates. One way to keep costs low is to buy a policy from a company that sells the majority of its policies to high-risk drivers. A company that provides coverage to just a few high-risk drivers will generally charge you more than a company that specializes in high-risk drivers, Gusner says. Typically, car insurance companies that cater to high-risk drivers offer policies with limits. For instance, they may just cover you, and not those you lend your car to, which helps keep their rates low.

How to get the cheapest car insurance: Frequently asked questions

But what if you want more than the state minimum coverage, and still want to save money? The savings are in the details. Car insurance discounts come when you’re different from the average driver. Sometimes it’s your profession, sometimes it’s your grades, and sometimes it’s your long accident-free record. But sometimes the cheapest car insurance simply means avoiding the most common car insurance pitfalls. If you don’t see the answer to your question here, ask Penny Gusner, our consumer analyst, your own question.

The cheapest car insurance company isn't always the best in terms of customer service

Everyone loves a bargain, but you should also consider customer service along with price when comparing car insurance companies. An Insure.com survey of 3,700 customers yielded the following results, with all scores out of 100.

Note that Geico was the cheapest car insurance company among those surveyed in CarInsurance.com's rate analysis, as outlined in the charts above. But in Insure.com's "Best Car Insurance Companies" survey, Geico was not among the top 10 for customer service, placed 10th for claims handling and 11th in the overall ranking.

Auto insurance companies ranked on value, customer service and claims handling