Cheapest Car Insurance Companies for 2022

If you’re looking for the cheapest car insurance rates in 2022, look no further.

Carinsurance.com compared rates from 35 auto insurance providers across the United States including major companies such as State- Farm, Geico, Progressive, Allstate and USAA to find the cheapest car insurance in 2022.

Get personalized rate estimates based on your driver profile in just a few minutes and see how much you can save on car insurance. You’d be surprised at how much money you can save by switching to top-rated providers.

Car insurance quotes vary based on your unique driver profile that’s based on your age, location, driving record, credit-based insurance score, driving habits and the type of vehicle you drive – some insurers may be cheaper for certain types of drivers than others.

Shopping around and comparing quotes for similar coverage from different car insurance companies is the best way to find the most affordable car insurance without compromising on quality.

But does everyone do so?

Not necessarily, says William Shughart, professor in public choice at the Jon M. Huntsman School of Business at Utah State University.

We’ll provide all the information and tips you need to find cheap car insurance no matter what driving habits you have.

The data in this report is from our analysis of various driver profiles, from dozens of major carriers. The rates reported here are averages that give you an accurate idea of coverage costs for different scenarios. However, exactly what you pay will depend on your own personalized data.

Who has the cheapest auto insurance?

Progressive is the cheapest major car insurance company for full coverage policies providing savings of $850 over the national average.

Our team of insurance experts carefully analyzed different driver profiles and coverage levels to help you find cheap car insurance for your unique situation.

While Progressive also is the cheapest insurance company for liability and state minimum, Geico’s rates are just a few dollars higher.

Geico, however, is the cheapest car insurance company for drivers with speeding tickets, accidents or bad credit. Progressive had the lowest car insurance rates for young drivers. For teens, students and low-mileage drivers, Liberty Mutual is the insurance company with the lowest car insurance rate.

• For full coverage
  Progressive

  $75per month; $895 a year
• For liability-only
  Progressive

  $28 per month; $333 a year
• For state minimum
  Progressive

  $26 per month; $315 a year
• For drivers with speeding tickets
  Geico

  $118 per month; $1,419 year
• For poor credit
  Geico

  $175 per month; $2,094 a year
• For young drivers
  Progressive

  $134 per month; $1,606 a year
• For students
  Liberty Mutual

  $174 per month; $2,082 a year
• For senior drivers
  Progressive

  $60 per month; $724 a year
• For teens
  Liberty

  $183 per month; $2,191 a year
• For low-mileage drivers
  Farmers

  $75 per month: $899 a year
• For drivers with accidents
  Geico

  $132 per month: $1,578 a year

Tip

CarInsurance.com recommends getting a car insurance quote from at least three insurance companies to see who has the best cheap car insurance for you. There are many factors that affect car insurance rates, but comparing quotes will prevent you from paying more than you should.

Cheapest car insurance rates from major auto insurance providers by coverage type

Cheapest insurance for full coverage policy

In our research, we found that Progressive is the cheapest car insurance company for full coverage policies among those surveyed by our expert editorial team. “Full coverage” is the term used to describe a policy that includes liability insurance, which is required by state law, and also the optional coverages of comprehensive and collision, which carry a deductible.

If you financed your car, your lender will require you to have full coverage. Full coverage provides the most protection, so it is recommended unless your car is very old, not worth much and you have few assets or savings. This type of policy will cover damage to your car, as well as damage you cause to other cars, and covers injuries in an accident.

Full coverage car insurance

Cheapest car insurance for liability-only

Liability insurance pays for damage you cause to other vehicles and property. It does not cover damage to your own car. You can buy just enough coverage to drive legally or opt for higher limits that provide more protection.

The rates below are for a policy that provides more protection than the minimum that is required by state law. The bodily injury liability portion would pay up to $50,000 for injuries per person, up to $100,000 per accident, and the property damage liability would pay up to $50,000 for property damage you cause.

Liability car insurance

Cheapest insurance for state minimum car insurance requirements

If you’re looking for an auto policy with bare-bones coverage, Progressive and Geico are the auto insurance companies with the lowest car insurance premiums, according to a CarInsurance.com rate analysis.

A policy that meets your state’s minimum liability limit requirements is the cheapest car insurance you can get among coverage options. Since a state minimum liability policy is the least amount of coverage you can get, the car insurance premium will be low.

These insurance policies include just bodily injury liability and property damage liability and only cover damage and injuries you cause to others and their property – they don’t cover your own vehicle or injuries.

Cheapest car insurance rates from major auto insurance providers by driver profile

Cheapest car insurance rates for people with bad credit

Geico has the lowest rate for drivers with poor credit among the auto insurance carriers surveyed. If you’re looking for cheap car insurance with poor credit, you’ll see in the table below how companies compare.

Note that though other companies have a lower percentage increase for poor credit, Geico has the lowest price. Aside from comparison shopping, keeping dings off your credit history and sustaining a high credit score is one of the best ways to get – and keep – cheap car insurance rates.

Drivers with poor credit pay an average of 71%, or about $1,000 more for insurance than those with good credit, according to a CarInsurance.com rate data analysis. That’s higher than the premium increase (32%) for an at-fault accident that injures someone.

How Can I Get Cheap Car Insurance with Bad Credit?

Cheapest car insurance rates for people with speeding tickets

Geico has the lowest rate after a speeding ticket (exceeding the limit by 11 to 15 mph) among auto insurance companies researched by the experts at CarInsurance.com. Tickets for moving violations affect what you pay for car insurance, so part of keeping costs low is maintaining a clean driving record.

Insurance companies check your driving history upon renewal or when you ask for quotes for a new policy and use that information when pricing policies. Typically, it means higher rates if you’ve had a recent moving violation, such as a speeding ticket.

However, each company assesses risk differently, so even with driving infractions on your record, you’ll save if you compare car insurance companies. Let’s break down average increases for speeding tickets by company:

How much do car insurance rates go up after a speeding ticket?

Cheapest car insurance rates for people with a recent accident?

Cheap car insurance after an accident claim comes only by comparing rates. Again, you'll see Geico has a high percentage increase for drivers with a recent accident claim but has the lowest car insurance rate for those who have had a wreck, according to our rate analysis.

The data below is for a claim of property damage above $2,000.

How much does insurance go up after an accident?

Cheapest car insurance for teen drivers

Liberty Mutual is the cheapest car insurance company for teen drivers, among those surveyed in our study of rates for a 17-year-old driver buying their own full coverage policy.

Car insurance companies consider teens to be high-risk drivers due to their lack of experience behind the wheel, so car insurance for teens is pricey in general. However, by comparing car insurance rates, you can still save, regardless of what age driver you are.

Below you’ll see who has cheap car insurance for teen drivers, based on our rate analysis.

How much is car insurance for teen drivers?

Cheapest car insurance for student drivers

Liberty Mutual is the insurance company that has the cheapest car insurance rates for student-age drivers compared with the other major car insurance companies surveyed in our rate analysis.

You will pay more if you don’t compare quotes, as the lowest price is about $3,000 less than the highest price among auto insurers in the study.

How much is the average car insurance for a college student?

Cheapest car insurance companies for young drivers

Progressive is the auto insurance company that’s cheapest for young drivers based on our analysis. Because drivers younger than 24 have a short insurance history and are relatively new drivers with less experience, rates are higher than for drivers 30 and older.

If you’re a driver under age 24 looking for cheap coverage and you’re still in school, make sure to check for student discounts when comparing car insurance quotes.

Many major insurers will renew a good student discount up to a certain age, which results in an average savings of 16%. If you’re no longer a student, you can still save by taking advantage of other driver discounts like bundling with renters insurance, which yields a 6% price break, on average.

How to get cheap car insurance for young drivers?

Cheapest car insurance for senior drivers (age 70)

Progressive takes the checkered flag for having cheap auto insurance rates for senior drivers among the insurance companies in our study. Progressive provides cheap car insurance rates for older motorists, about $400 less than Geico and more than $1,000 less than other major carriers.

Senior car insurance : What you need to know?

Cheapest car insurance for low-mileage drivers

If you’re a driver who logs less than about 12,000 miles a year, you could qualify for cheaper auto insurance. Driving less means you have a smaller chance to get into an accident, so insurance rates for a low-mileage driver will generally be lower than for a driver who is on the road more, all else being equal. Farmers is the cheapest auto insurance company for low-mileage drivers.

How to get the cheapest car insurance rates?

Comparing car insurance quotes can help you save hundreds of dollars in your search for cheaper car insurance because each car insurance company uses its own formula to calculate your insurance rate. This means the same policy can have prices that vary significantly among insurance companies.

The CarInsurance.com editorial team recommends getting a car insurance quote from at least three companies to see who has the cheapest car insurance for you. There are many factors that affect car insurance rates, but comparing quotes will prevent you from paying more than you should.

Here are a few tips to help you find cheap car insurance without sacrificing coverage:

Expert Advice

William Shughart

Professor in public choice at the Jon M. Huntsman School of Business at Utah State University

“Car insurance buyers, like voters in political elections, are time- and attention-constrained and therefore do not devote much energy to searching for information about the alternatives available to them,” he says.

“Theories of consumer searches conclude that it is optimal to stop when the costs of gathering one more piece of information (value of other uses of time forgone) equal the perceived benefits of continued search (lower price or improved quality).”

Cheapest car insurance companies by state

If you’re wondering who has the cheapest auto insurance near you, our rate data analysis can help.

Here we show average car insurance rates from major insurers, ranked from least to most expensive, for every state, for a full coverage insurance policy (which includes comprehensive and collision coverage). Geico is the cheapest car insurance company in 33 states among insurers surveyed.

In the table below, you can see how companies rank in your state, from cheapest to most expensive for car insurance premiums.

Car insurance rates by state with interactive map

Is it a bad idea to buy cheap car insurance?

You might be wondering when it makes sense to buy bare-bones auto insurance coverage and when it’s advisable to buy more insurance to ensure you are financially protected. Going with the minimum bodily injury liability and property damage 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 payout. You should have adequate coverage to fully protect your vehicle and other assets so you don't get stuck with out-of-pocket expenses.

But there are a few scenarios in which having minimum coverage may be a good strategy, such as:

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, which is why these coverages may be unnecessary if your 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. If you are looking to save to buy a newer car, then by dropping down coverage to the state minimum, you can put away the money saved for the replacement car.

Dropping comprehensive and collision could be an option in a pinch but remember: You'll have to pay for bodywork or be prepared to drive around a car that looks like a wreck.

You don't drive very much

If you log very few miles on your car, minimum coverage may suffice, simply because the less you drive, the less risky your driving experience will be. Common scenarios: You’re retired or work from home because you’re less likely to be in an accident than someone who commutes to and from work each day or drives for work.

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.

But just because you don't have much doesn't mean a lien won’t be placed against you or that your license and registration won’t be suspended if you cause an accident and can't pay for all damages. Buy higher liability limits if you can afford it.

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.

Until your rates drop, you may decide to buy only minimum liability insurance. While it's 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 typically charge higher rates than a company that specializes in high-risk drivers.

Furthermore, car insurance companies that cater to high-risk drivers offer policies with limits so make sure to familiarize yourself with the policy’s fine print.

Review customer service ratings for the best cheap car insurance

You can take into account the affordability of a policy when looking for cheaper car insurance, but the price of your premium shouldn’t be the sole factor in deciding which auto insurance company to choose for your next car insurance policy.

In addition to comparing car insurance quotes, you should research what policyholders and experts have to say about customer service and the claims process for the insurers on your list so you can lock in the best cheap car insurance without sacrificing customer satisfaction.

CarInsurance.com’s experts fielded a survey of 3,700 customers, yielding the following results. Our best car insurance companies guide has detailed rankings that show how the top 20 largest auto insurance companies rank on metrics of customer service, claims handling, value and website/app functionality.

The top 10 car insurance companies for customer service were:

Average auto insurance rates are up 22% from 2017 for full coverage

CarInsurance.com's auto insurance rates by ZIP code analysis showed a national average rate of $1,758 for full coverage. That's up 22% since 2017 when the rate by ZIP code data was last surveyed by the experts at CarInsurance.com. State-required minimum coverage ticked up just 4%, while standard liability limits rose 16%.

Why is car insurance so expensive?

Cynthia Burleson, the director of the Center for Insurance & Risk Management at Central Arkansas University, explains why the trend of rising car insurance rates won't end anytime soon: An increased number of claims, or frequency, and the cost of claims, or severity. As these two variables increase, so do premiums.

Cynthia L. Burleson

Director of the Center for Insurance and Risk Management at the University of Central Arkansas (UCA)

"There are two causes of upward trends in auto insurance rates: rising frequency and severity," Burleson says. "There were many companies that, during the pandemic, took rate reductions due to the drop in vehicle use, which saw lower frequency numbers.

Other companies, instead of reducing rates, offered premium credits for a short period of time. Now, the companies who lowered their rates are seeing higher frequency numbers as driving increases with more and more business and office openings and vacation seekers."

The other side of rising auto rates is severity, or claims costs. Several factors contribute to higher claims costs, resulting in higher costs for insurance companies, which pass the expense on to customers in the form of higher rates.

"Severity numbers (dollars) may have dropped some during the pandemic but probably not significantly,” she says. However, severity numbers are currently on the rise because of an increase in frequency, increase in the cost of vehicles and increase in the cost of service (repairs, parts, medical care, etc.) because of inflation and supply chain logjams.”

The average cost of a vehicle in 2019 was $36,718, according to Kelley Blue Book. In 2020, the average price had increased to $38,273, up 2.5%. The price in 2021 was $41,263 – a 5.4% increase from 2020.

The bottom line on cheap car insurance in 2022

Given that car insurance rates are expected to keep climbing, remember that comparison shopping for the cheapest car insurance is the most effective way to save money on coverage.

– Michelle Megna contributed to this story.

Sources:

1. Annual Credit Report - Source for your free credit report
2. National Foundation for Credit Counseling

Laura Longero

Executive Editor

Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.