CarInsurance.com Insights
- Raising your deductible from $250 to $1,000 saves an average of $511 per year, but you should only choose a higher deductible if you have enough in savings to cover the higher out-of-pocket cost after a claim.
- GEICO is the cheapest car insurance carrier for full coverage in 20 states. In roughly half of all states, however, a regional car insurance company has the cheapest state minimum and liability-only rates.
- Drivers with poor credit face the largest rate increase from State Farm. Customers with bad credit pay an average of $12,707 per year, up 342% from State Farm customers with good credit ($2,875 per year).
- Farmers has the lowest average rates for teen drivers. Male teen drivers pay an average of $13,020 per year with Farmers, while female teen drivers pay an average of $11,984 per year.
In 2026, Travelers is the cheapest car insurance company overall, with an average full coverage premium of $164 per month. GEICO is the cheapest insurer for state minimum coverage ($54 per month) and liability-only insurance ($45 per month).
While Travelers offers the lowest full-coverage rates nationally, it might not be the cheapest insurer for you. Rates depend on individual factors, and each insurer weighs those factors differently. Seeing average rates by insurer, age, driving record and other factors can be helpful before you start comparing car insurance quotes.
Which car insurance company is the cheapest right now?
Travelers is the overall cheapest car insurance carrier in 2026. Its average cost is $1,962 per year for a 40-year-old driver with 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 $539 and $651 per year, respectively. It’s also the cheapest insurer for non-owner car insurance, at $458 per year.
The table below lists cheap car insurance companies in 2026 and their annual rates for different coverage types, based on rates from more than 170 insurers.
| Company | State minimum | Liability-only | Full coverage | Non-owner |
|---|---|---|---|---|
| Travelers | $767 | $833 | $1,962 | $464 |
| GEICO | $539 | $651 | $2,159 | $458 |
| Nationwide | $932 | $941 | $2,524 | $758 |
| Progressive | $752 | $864 | $2,569 | $708 |
| State Farm | $1,025 | $1,139 | $2,875 | $555 |
| Allstate | $946 | $1,059 | $3,159 | $826 |
| Farmers | $950 | $1,064 | $3,207 | $615 |
| USAA* | $406 | $465 | $1,628 | $207 |
* USAA offers its policies only to military members, veterans and their immediate families.
The table above shows average rates, but actual car insurance quotes depend on your specific location. Think of a national average like a national weather forecast. It’s useful for packing, but useless for deciding whether you need an umbrella today.
Which insurer is the cheapest in your state?
GEICO is the cheapest car insurance company for full coverage in 20 states, and Travelers is the cheapest in 13 states. But in nearly half of all states, a regional carrier is the cheapest option for state minimum and liability-only coverage. That includes regional insurance companies such as NJM in New Jersey and Auto-Owners in South Carolina.
If you only compare quotes from national insurers, like GEICO and State Farm, you could miss out on the cheapest car insurance company in nearly half of all states. Similar to how a national grocery store chain isn’t automatically cheaper than the local store in your town. The only way to find the best price is to compare both.
The median gap between the cheapest and most expensive insurer in the state for the same driver is $1,894 a year. Michigan has the highest spread at $5,866 per year, which reinforces the importance of comparison shopping.
In the table below, you can see the cheapest car insurance in your state and the average annual premium.
| State | Cheapest — state minimum | Cheapest — liability-only | Cheapest — full coverage |
|---|---|---|---|
| Alabama | Country Financial — $383 | Country Financial — $408 | GEICO — $1,546 |
| Alaska | GEICO — $474 | GEICO — $481 | GEICO — $1,831 |
| Arizona | GEICO — $475 | Travelers — $547 | Travelers — $1,734 |
| Arkansas | GEICO — $414 | GEICO — $480 | GEICO — $1,918 |
| California | CSAA Insurance (AAA) — $496 | CSAA Insurance (AAA) — $522 | GEICO — $2,039 |
| Colorado | American National — $302 | American National — $333 | American National — $1,496 |
| Connecticut | GEICO — $480 | GEICO — $562 | GEICO — $1,621 |
| Delaware | GEICO — $545 | GEICO — $639 | Travelers — $1,786 |
| Florida | GEICO — $700 | Travelers — $994 | Travelers — $2,448 |
| Georgia | GEICO — $576 | GEICO — $765 | Progressive — $1,807 |
| Hawaii | GEICO — $289 | GEICO — $340 | GEICO — $1,296 |
| Idaho | GEICO — $312 | GEICO — $356 | State Farm — $1,313 |
| Illinois | GEICO — $391 | Erie Insurance — $458 | Travelers — $1,428 |
| Indiana | GEICO — $315 | GEICO — $347 | GEICO — $1,192 |
| Iowa | GEICO — $328 | GEICO — $372 | GEICO — $1,923 |
| Kansas | GEICO — $391 | GEICO — $484 | Travelers — $1,834 |
| Kentucky | Kentucky Farm Bureau Insurance — $431 | Kentucky Farm Bureau Insurance — $473 | Travelers — $1,828 |
| Louisiana | Southern Farm Bureau — $560 | Southern Farm Bureau — $771 | Southern Farm Bureau — $2,230 |
| Maine | GEICO — $382 | GEICO — $388 | Travelers — $977 |
| Maryland | GEICO — $532 | GEICO — $582 | GEICO — $1,561 |
| Massachusetts | Amica — $560 | Amica — $644 | Plymouth Rock Assurance — $1,646 |
| Michigan | GEICO — $706 | GEICO — $784 | GEICO — $1,971 |
| Minnesota | North Star Mutual — $382 | North Star Mutual — $434 | Travelers — $1,837 |
| Mississippi | Travelers — $527 | Safeway Insurance — $557 | Travelers — $1,779 |
| Missouri | Missouri Farm Bureau Insurance — $411 | Missouri Farm Bureau Insurance — $479 | Travelers — $1,692 |
| Montana | GEICO — $376 | GEICO — $468 | State Farm — $2,058 |
| Nebraska | Farmers Mutual of Nebraska — $262 | Farmers Mutual of Nebraska — $322 | Farmers Mutual of Nebraska — $1,625 |
| Nevada | GEICO — $565 | GEICO — $698 | Travelers — $2,206 |
| New Hampshire | MMG Insurance — $304 | MMG Insurance — $321 | GEICO — $1,216 |
| New Jersey | GEICO — $846 | GEICO — $1,057 | NJM — $2,373 |
| New Mexico | Central Insurance — $322 | Central Insurance — $430 | GEICO — $1,518 |
| New York | NYCM Insurance — $534 | NYCM Insurance — $609 | Progressive — $1,258 |
| North Carolina | State Farm — $499 | State Farm — $499 | Progressive — $1,460 |
| North Dakota | North Star Mutual — $347 | North Star Mutual — $380 | GEICO — $1,978 |
| Ohio | Erie Insurance — $315 | Erie Insurance — $344 | Grange Insurance — $1,512 |
| Oklahoma | Mercury Insurance — $365 | Mercury Insurance — $415 | GEICO — $2,194 |
| Oregon | Country Financial — $608 | Country Financial — $700 | Progressive — $1,539 |
| Pennsylvania | Westfield Insurance — $302 | Erie Insurance — $472 | Travelers — $1,770 |
| Rhode Island | State Farm — $643 | State Farm — $783 | Travelers — $2,124 |
| South Carolina | Auto-Owners — $609 | Auto-Owners — $675 | Auto-Owners — $1,731 |
| South Dakota | Progressive — $228 | Progressive — $254 | Farmers Mutual of Nebraska — $1,504 |
| Tennessee | GEICO — $326 | GEICO — $389 | GEICO — $1,686 |
| Texas | Incline Insurance — $626 | Incline Insurance — $733 | Incline Insurance — $1,638 |
| Utah | GEICO — $494 | GEICO — $583 | GEICO — $1,550 |
| Vermont | Co-operative Insurance Companies — $228 | Allstate — $255 | State Farm — $1,513 |
| Virginia | Virginia Farm Bureau Insurance — $472 | Virginia Farm Bureau Insurance — $482 | Virginia Farm Bureau Insurance — $1,240 |
| Washington | PEMCO — $439 | PEMCO — $487 | GEICO — $2,033 |
| Washington, D.C. | Chubb — $359 | Chubb — $443 | GEICO — $1,991 |
| West Virginia | Erie Insurance — $334 | GEICO — $422 | GEICO — $1,907 |
| Wisconsin | GEICO — $286 | Rural Mutual Insurance — $379 | GEICO — $1,607 |
| Wyoming | GEICO — $225 | American National — $245 | American National — $1,271 |
Sophie’s Tip
Where you live is one of the few rating factors you cannot change. Which insurer you pick is entirely up to you. Even in the cheapest states, the gap between the best and worst price for the same driver clears $1,000 a year — so if you only do one thing with this page, get a quote from your state’s cheapest name above alongside your current insurer.
Cheapest car insurance by driver type
Travelers is the cheapest car insurance company for most driver profiles, including adults, seniors, young adults and drivers with a ticket, accident or DUI. GEICO has the lowest average rates for teens, drivers with poor credit and non-owner auto policies. But keep in mind that no single insurer is the cheapest for every profile, and the cheapest insurer could vary at different life stages.
The insurance company that’s the cheapest for a 22-year-old in a rented apartment probably isn’t the cheapest for a 40-year-old with a mortgage and a teen driver on their policy. And it’s not just life events that can trigger premium changes: moving to a new state or seeing a rate increase at renewal are all opportunities to shop around and potentially secure cheaper coverage.
The table below shows the cheapest car insurance companies by driver profile, age, coverage type and driving record, based on 2026 data from Quadrant Information Services.
| Driver type or situation | Cheapest insurer | Monthly | 6-month | Annual |
|---|---|---|---|---|
| Full coverage | Travelers | $164 | $981 | $1,962 |
| Liability-only (50/100/50) | GEICO | $54 | $326 | $651 |
| State minimum | GEICO | $45 | $270 | $539 |
| Non-owner policy | GEICO | $38 | $229 | $458 |
| Teen drivers (16–19) | GEICO | $542 | $3,254 | $6,507 |
| Young adults (20–24) | Travelers | $255 | $1,529 | $3,057 |
| Adults (25–60) | Travelers | $165 | $987 | $1,974 |
| Seniors (65–75) | Travelers | $166 | $994 | $1,987 |
| Low-mileage drivers | Travelers | $149 | $896 | $1,792 |
| Poor credit | GEICO | $296 | $1,778 | $3,555 |
| After a speeding ticket | Travelers | $233 | $1,401 | $2,801 |
| After an at-fault accident | Travelers | $235 | $1,412 | $2,823 |
| After a DUI conviction | Travelers | $244 | $1,467 | $2,933 |
If you’re shopping for car insurance for the very first time, the next section specifically applies to you.
Speak with a friendly agent and get your quote in minutes!
Cheapest car insurance for a first-time driver
First-time drivers typically have the most expensive car insurance premiums. The average rate for a 16- to 19-year-old is $8,045 per year for full coverage and $2,510 per year for state minimum coverage. A 20- to 24-year-old pays $4,051 and $1,165, respectively, which is cheaper but still high.
New drivers usually pay the highest rates for coverage because insurers base rates on claim frequency. A driver with no record has no prior evidence of being a safe driver, so they pay more until they can prove they’re low risk.
As you gain experience behind the wheel, your car insurance premium will decrease, assuming you avoid traffic violations and claims. But for young adult drivers, your first insurance policy is the one you should shop for most aggressively.
Below, you can see the average cost of car insurance by age demographic and the cheapest insurer for every group.
| Age band | State minimum | Liability-only | Full coverage | Non-owner | Cheapest insurer (full coverage) |
|---|---|---|---|---|---|
| Teens (16–19) | $2,510 | $2,866 | $8,045 | $1,262 | GEICO — $6,507 |
| Young adults (20–24) | $1,165 | $1,316 | $4,051 | $665 | Travelers — $3,057 |
| Adults (25–60) | $740 | $831 | $2,575 | $489 | Travelers — $1,974 |
| Seniors (65–75) | $780 | $874 | $2,531 | $514 | Travelers — $1,987 |
When buying car insurance for the first time, there are a few key decisions you have to make: how much liability coverage you want, which deductible makes sense for your budget and whether you need traditional car insurance or non-owner car insurance.
| The decision | What it means | What it costs |
|---|---|---|
| How much liability? | The maximum your insurer pays for damage and injuries you cause to other people. State minimum is the legal floor; 50/100/50 roughly doubles the injury limits. | State minimum $738 a year nationally, 50/100/50 liability $829 — about $7 a month apart |
| Which deductible? | What you pay out of pocket before your own car is covered. Only applies if you buy comprehensive and collision. | $250 deductible $2,820 · $500 $2,578 · $1,000 $2,309 |
| Do you own the car yet? | If you drive but do not own a car, a non-owner policy covers you without covering a vehicle. Common for people who are between cars or borrow a family car. | $486 a year nationally, $458 with GEICO |
Non-owner insurance is a common option if you drive someone else’s car, but don’t own a vehicle yourself. It’s usually cheaper than traditional car insurance at $486 per year.
You might consider non-owner insurance if you’re coming off a parent’s policy, waiting to buy a car after getting your first paycheck, earning a driver’s license later in life or have a driving history from another country that doesn’t transfer to the U.S.
How your coverage level changes what you pay
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 average state minimum coverage rate is $738 per year, or $62 monthly. That’s an appealing number, 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. The average rate for this type of policy is $829 per year. Moving to a state minimum policy with 50/100/50 liability limits costs about $7 more per month and roughly doubles your limits for bodily injury coverage. But like state minimum, liability-only still leaves your own car completely unprotected.
Full coverage with liability limits of 100/300/100 is the policy level 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. A full-coverage policy with a $500 deductible costs $2,578 annually on average.
The following table lists the average annual, 6-month and monthly car insurance premiums for different types and levels of coverage.
| Coverage level | Annual | 6-month | Monthly | What it leaves uncovered |
|---|---|---|---|---|
| Non-owner | $486 | $243 | $41 | Any vehicle — it covers you, not a car |
| State minimum BI/PD | $738 | $369 | $62 | Your own car, your own injuries, and anything above your state’s limits |
| Liability-only — 50/100/50 | $829 | $414 | $69 | Your own car |
| Full coverage — 100/300/100, $1,000 deductible | $2,309 | $1,154 | $192 | The first $1,000 of any claim on your own car |
| Full coverage — 100/300/100, $500 deductible | $2,578 | $1,289 | $215 | The first $500 of any claim on your own car |
| Full coverage — 100/300/100, $250 deductible | $2,820 | $1,410 | $235 | The first $250 of any claim on your own car |
How much your deductible actually saves you
Full coverage car insurance policies have a deductible, which is how much you pay out-of-pocket when you file a claim. The higher your deductible is, the lower your premium will be, and vice versa.
Raising your deductible from $250 to $1,000 saves $511 per year nationally. That means a $750 increase in your deductible pays for itself in just about 18 months without a claim. But that doesn’t mean raising your deductible is the right move (more on that below).
The table below shows how different deductibles impact the average full-coverage car insurance premium.
| Deductible | Annual | Monthly | Saving vs $250 |
|---|---|---|---|
| $250 | $2,820 | $235 | — |
| $500 | $2,578 | $215 | $242 |
| $1,000 | $2,309 | $192 | $511 |
While raising your deductible can lead to premium savings, the amount you can actually save depends on your location. In D.C., Texas and Oklahoma, for example, a higher deductible saves you an average of $850 a year. But in New York and Maryland, the savings are less than $320 per year.
These states have the biggest and smallest annual savings resulting from raising your deductible.
| Biggest annual savings, $250 → $1,000 | Savings | Smallest annual savings, $250 → $1,000 | Savings |
|---|---|---|---|
| Washington, D.C. | $858 | New York | $267 |
| Texas | $854 | Maryland | $317 |
| Oklahoma | $850 | Oregon | $323 |
| Michigan | $849 | South Carolina | $326 |
| West Virginia | $849 | New Hampshire | $345 |
| South Dakota | $770 | Arizona | $347 |
Finally, it’s important to note that raising your deductible doesn’t always make sense. You should only choose a higher deductible if you can cover the higher amount from your savings today, not from next month’s paycheck. If you can’t comfortably afford a higher deductible, it could lead to more stress if you have a claim.
Sophie’s Tip
There is a simple test for this one. Could you write a $1,000 check today without moving money around? If yes, the higher deductible usually wins. If not, the lower one is buying you something real — not just costing you more.
How rates change by driver age
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 $8,045 for full coverage, while adults aged 25-60 pay $2,575, which is a difference of $5,470 for the exact same coverage.
The following table shows the average car insurance rates by age group and insurance company.
| Company | Teens (16–19) | Young adults (20–24) | Adults (25–60) | Seniors (65–75) |
|---|---|---|---|---|
| Travelers | $6,597 | $3,057 | $1,974 | $1,987 |
| GEICO | $6,507 | $3,240 | $2,159 | $2,237 |
| Nationwide | $8,661 | $4,268 | $2,523 | $2,370 |
| Progressive | $9,823 | $4,083 | $2,549 | $2,404 |
| State Farm | $7,981 | $4,586 | $2,883 | $2,745 |
| Allstate | $9,659 | $4,714 | $3,144 | $3,170 |
| Farmers | $12,511 | $4,920 | $3,151 | $3,078 |
| USAA | $5,528 | $2,611 | $1,647 | $1,681 |
Teen drivers (16-19) are the riskiest 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, exactly $7,274 more than what an adult aged 25-60 pays with the same insurer.
The national average rate for drivers 65-75 ($2,531) is slightly below the average premium for drivers aged 25-60 ($2,575). Senior drivers aged 65-75 pay the lowest rates with Travelers ($1,987), followed by GEICO at $2,237 per year. Travelers offers annual savings of $1,183 compared to Allstate’s $3,170 rate for the same age group, while GEICO offers savings of over $900.
Does your gender change how much you pay?
Gender has far less impact on car insurance rates than many expect. For drivers aged 25-60, Travelers offers the cheapest car insurance rates for both male and female drivers, at $1,996 and $1,952, respectively, a difference of only $44.
For teenagers, however, the gap is much bigger. Gender changes a teenager’s premium by around $1,000 per year, but for adults, the difference is less than $50 between males and females.
However, not every state uses gender as a car insurance rating factor. California, Hawaii, Massachusetts, Michigan, 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.
Below are average annual full-coverage car insurance rates for male and female drivers of different ages by insurance company.
| Company | Teens 16-19 | Young adults 20-24 | Adults 25-60 | Seniors 65-75 |
|---|---|---|---|---|
| Travelers | $7,108 / $6,089 | $3,201 / $2,914 | $1,996 / $1,952 | $2,051 / $1,923 |
| GEICO | $6,841 / $6,176 | $3,313 / $3,167 | $2,146 / $2,173 | $2,240 / $2,235 |
| Nationwide | $9,270 / $8,052 | $4,450 / $4,086 | $2,557 / $2,489 | $2,449 / $2,290 |
| Progressive | $10,266 / $9,377 | $4,236 / $3,931 | $2,538 / $2,560 | $2,462 / $2,347 |
| State Farm | $8,634 / $7,329 | $4,870 / $4,304 | $2,898 / $2,869 | $2,748 / $2,741 |
| Allstate | $10,030 / $9,283 | $4,899 / $4,529 | $3,150 / $3,138 | $3,205 / $3,135 |
| Farmers | $13,020 / $11,984 | $5,067 / $4,773 | $3,146 / $3,156 | $3,142 / $3,014 |
| USAA | $5,684 / $5,373 | $2,677 / $2,544 | $1,664 / $1,630 | $1,710 / $1,653 |
How a violation on your record changes what you pay
A single speeding ticket on your driving record can raise your annual premium by 22% to 68% if you’re insured by a widely available carrier. Speeding tickets cause the smallest increases among violations; at-fault accidents hit harder, with average rate increases of 26% to 82%. A DUI can add anywhere from 36% to 149% to your annual premium.
If you have a violation on your record, the higher premium may not last forever. Typically, a speeding ticket or accident stays on your driving record for three to five years, depending on the state. DUIs tend to last for much longer or may be permanent.
The type of violation matters significantly, but so does your insurance company.
What a speeding ticket adds to your premium
A single speeding ticket raises your annual premium by 22% to 68%, depending on the insurer. State Farm applies the smallest surcharge at 22%, whereas Nationwide applies the largest at 68%. But State Farm applies a much larger surcharge after a DUI, reinforcing the fact that the same insurer treats each type of violation differently.
Here are the average car insurance premiums after a single speeding ticket by insurer.
| Company | Clean record | After a speeding ticket | Increase |
|---|---|---|---|
| Travelers | $1,962 | $2,801 | 43% |
| GEICO | $2,159 | $3,426 | 59% |
| Progressive | $2,569 | $3,436 | 34% |
| State Farm | $2,875 | $3,497 | 22% |
| Allstate | $3,159 | $4,025 | 27% |
| Nationwide | $2,524 | $4,247 | 68% |
| Farmers | $3,207 | $4,431 | 38% |
| USAA | $1,628 | $1,955 | 20% |
What an at-fault accident adds
An at-fault accident raises average premiums by 26% to 82% among widely available insurers. State Farm’s average rate hike is 26%, and Farmers has the biggest increase at 82%. Allstate’s average rate increase after a speeding ticket is only 27%, but for at-fault accidents, the company raises rates by an average of 77%, which is among the highest figures among the carriers we analyzed.
Below, you can see the average rates by insurer for drivers who have been at fault in an accident.
| Company | Clean record | After an at-fault accident | Increase |
|---|---|---|---|
| Travelers | $1,962 | $2,823 | 44% |
| State Farm | $2,875 | $3,634 | 26% |
| GEICO | $2,159 | $3,872 | 79% |
| Progressive | $2,569 | $4,061 | 58% |
| Nationwide | $2,524 | $4,359 | 73% |
| Allstate | $3,159 | $5,589 | 77% |
| Farmers | $3,207 | $5,823 | 82% |
| USAA | $1,628 | $2,490 | 53% |
What a DUI adds
A DUI raises car insurance premiums by 36% to 149%, so it has a much bigger impact on car insurance rates than other violations. Progressive’s rates go up by 36%, while Nationwide hikes rates by almost 150%. For drivers with a DUI, Travelers has the cheapest average rate of $2,933 among widely available insurers.
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. You might also need to carry an SR-22, which has an additional cost.
Below, you can see the cheapest insurers and average rates for drivers with a DUI.
| Company | Clean record | After a DUI | Increase |
|---|---|---|---|
| Travelers | $1,962 | $2,933 | 50% |
| Progressive | $2,569 | $3,486 | 36% |
| State Farm | $2,875 | $4,972 | 73% |
| GEICO | $2,159 | $5,321 | 146% |
| Farmers | $3,207 | $5,455 | 70% |
| Allstate | $3,159 | $5,513 | 75% |
| Nationwide | $2,524 | $6,276 | 149% |
| USAA | $1,628 | $3,130 | 92% |
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 $1,396 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 by $9,832, from $2,875 for good credit to $12,707 for poor credit. That’s a staggering 342% increase and is significantly higher than those of other insurers we analyzed. For context, GEICO has the smallest increase at 65%.
The following table shows the average cost of car insurance by credit score and insurance company.
| Company | Good credit | Poor credit | Increase ($) | Increase (%) |
|---|---|---|---|---|
| GEICO | $2,159 | $3,555 | $1,396 | 65% |
| Nationwide | $2,524 | $4,198 | $1,674 | 66% |
| Travelers | $1,962 | $4,583 | $2,621 | 134% |
| Progressive | $2,569 | $5,182 | $2,613 | 102% |
| Allstate | $3,159 | $5,336 | $2,177 | 69% |
| Farmers | $3,207 | $5,695 | $2,488 | 78% |
| State Farm | $2,875 | $12,707 | $9,832 | 342% |
| USAA | $1,628 | $3,069 | $1,441 | 88% |
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.
Currently, 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.
Cheapest and most expensive states for car insurance
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). Louisiana has the highest average rates at $3,999 per year.
States with cheaper car insurance rates aren’t accidental; they reflect a combination of factors insurers use to price risk at the state level. These factors include 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.
Moving to a new state will change your car insurance premium more than any discount will. Relocating is one of the few times it’s worth getting new car insurance quotes immediately rather than waiting for the renewal period.
Cheapest states for car insurance in 2026
The cheapest states for car insurance in 2026 are Vermont, New Hampshire, Hawaii, Ohio and Maine. See their annual rates in the table below.
| State | State min | Liability | Full coverage |
|---|---|---|---|
| Vermont | $392 | $435 | $1,660 |
| New Hampshire | $567 | $608 | $1,689 |
| Hawaii | $477 | $549 | $1,757 |
| Ohio | $475 | $513 | $1,783 |
| Maine | $469 | $478 | $1,808 |
Most expensive states for car insurance in 2026
The most expensive states for car insurance are Louisiana, Michigan, Nevada, Florida and Washington, D.C.; their annual rates are shown in the table below.
| State | State minimum | Liability-only | Full coverage |
|---|---|---|---|
| Louisiana | $1,033 | $1,338 | $3,999 |
| Michigan | $1,303 | $1,390 | $3,964 |
| Nevada | $1,212 | $1,414 | $3,963 |
| Florida | $1,228 | $1,635 | $3,916 |
| Washington, D.C. | $918 | $1,052 | $3,465 |
Rates in every state and D.C.
| State | State minimum | Liability-only | Full coverage |
|---|---|---|---|
| Alabama | $574 | $610 | $2,116 |
| Alaska | $588 | $605 | $2,167 |
| Arizona | $768 | $896 | $2,420 |
| Arkansas | $689 | $753 | $2,942 |
| California | $897 | $985 | $3,444 |
| Colorado | $651 | $753 | $3,181 |
| Connecticut | $1,048 | $1,130 | $2,742 |
| Delaware | $1,300 | $1,449 | $3,157 |
| Florida | $1,228 | $1,635 | $3,916 |
| Georgia | $860 | $964 | $2,503 |
| Hawaii | $477 | $549 | $1,757 |
| Idaho | $594 | $638 | $1,901 |
| Illinois | $527 | $579 | $1,938 |
| Indiana | $506 | $548 | $1,894 |
| Iowa | $481 | $523 | $2,460 |
| Kansas | $698 | $781 | $2,496 |
| Kentucky | $721 | $778 | $2,624 |
| Louisiana | $1,033 | $1,338 | $3,999 |
| Maine | $469 | $478 | $1,808 |
| Maryland | $810 | $929 | $1,999 |
| Massachusetts | $789 | $882 | $2,429 |
| Michigan | $1,303 | $1,390 | $3,964 |
| Minnesota | $852 | $903 | $2,591 |
| Mississippi | $628 | $701 | $2,397 |
| Missouri | $563 | $616 | $2,151 |
| Montana | $521 | $570 | $2,476 |
| Nebraska | $515 | $585 | $2,095 |
| Nevada | $1,212 | $1,414 | $3,963 |
| New Hampshire | $567 | $608 | $1,689 |
| New Jersey | $1,395 | $1,505 | $3,122 |
| New Mexico | $562 | $650 | $2,577 |
| New York | $1,279 | $1,451 | $2,596 |
| North Carolina | $681 | $681 | $2,638 |
| North Dakota | $564 | $608 | $2,439 |
| Ohio | $475 | $513 | $1,783 |
| Oklahoma | $585 | $637 | $2,993 |
| Oregon | $834 | $922 | $2,048 |
| Pennsylvania | $460 | $603 | $2,327 |
| Rhode Island | $845 | $1,039 | $2,878 |
| South Carolina | $785 | $874 | $2,417 |
| South Dakota | $450 | $490 | $2,575 |
| Tennessee | $613 | $641 | $2,235 |
| Texas | $841 | $928 | $3,106 |
| Utah | $850 | $916 | $2,356 |
| Vermont | $392 | $435 | $1,660 |
| Virginia | $693 | $706 | $1,835 |
| Washington | $638 | $695 | $2,389 |
| Washington, D.C. | $918 | $1,052 | $3,465 |
| West Virginia | $587 | $720 | $2,415 |
| Wisconsin | $569 | $680 | $2,343 |
| Wyoming | $339 | $367 | $2,061 |
Which insurers have raised rates the most since 2021?
Between 2021 and 2025, Travelers raised rates the least among widely available insurers at 48%. It’s currently the cheapest carrier overall, and the slowest to raise premiums, which is worth noting. Nationwide raised its average full coverage premium 102% in the same timeframe, and State Farm’s rates went up by 99%.
If your premium is going up at renewal, it doesn’t mean you’re being punished. It might just be your insurer’s curve. You can use the table below to see how widely available insurers have raised rates since 2021. But keep in mind that these figures are historical averages, so don’t assume that these exact trends will continue.
| Company | 2021 | 2022 | 2023 | 2024 | 2025 | Change |
|---|---|---|---|---|---|---|
| Nationwide | $1,350 | $1,799 | $1,906 | $2,868 | $2,726 | +102% |
| State Farm | $1,194 | $1,348 | $2,041 | $2,414 | $2,375 | +99% |
| Farmers | $1,800 | $2,191 | $2,756 | $2,963 | $3,443 | +91% |
| Progressive | $1,595 | $1,929 | $2,335 | $2,955 | $2,757 | +73% |
| GEICO | $1,390 | $1,650 | $1,973 | $2,157 | $2,176 | +57% |
| Allstate | $2,105 | $2,378 | $2,832 | $3,142 | $3,291 | +56% |
| Travelers | $1,395 | $1,397 | $1,654 | $1,963 | $2,070 | +48% |
| USAA | $1,226 | $1,330 | $1,701 | $1,718 | $1,858 | +52% |
Why the same insurer charges different prices across cities
No car insurance company is the cheapest option in even a third of U.S. cities. The most expensive ZIP code in the country (89101, Las Vegas, NV) averages $6,092 per year, while the cheapest (45840, Findlay, OH) averages $1,449. That’s more than four times the difference for the same coverage.
Travelers is the cheapest car insurance company in 20% of cities, while GEICO is the cheapest in 19% of cities and Progressive wins on price in 12% of cities.
In general, car insurance rates are lower in rural areas than in urban centers. But insurers look at a variety of location-based factors when setting rates, including:
- Local claim frequency: Areas with higher claim frequency (and more expensive claims) typically have a higher average cost of car insurance.
- Vehicle thefts: Car insurance is often more expensive in cities with high car theft rates.
- Average repair costs: If car repair and labor costs are high in your city, rates could be higher because insurers have to pay higher claim settlements.
- Weather risks: Regions with severe weather, like hurricanes and hailstorms, typically have higher car insurance costs.
- Litigation rates: Litigation costs for accident-related lawsuits can affect car insurance prices across different areas.
Here’s a real example of how rates can vary by city and insurer: For a 40-year-old driver in Miami, the average premium from GEICO is $3,040 and the average rate from Progressive is $8,190. That’s a price difference of $5,150 after just one year. In this case, comparison shopping can help you find which insurer is the cheapest in your city and for your personal driver profile.
How to get a lower 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. In a single state, the median gap between the cheapest and most expensive insurer for the same driver is $1,894 per year. Compare rates at renewal, but also after major life changes, like adding a teen driver, moving to a new state or city, getting a job with a longer commute or a violation that’s getting dropped from your record after several years.
- 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.
- Consider regional insurers: They are the cheapest option in 24 of 51 states, based on CarInsurance.com data. Get quotes from both national carriers and regional carriers to see which is the most affordable insurer in your location.
When the cheapest policy costs you more
The cheapest policy available will always look appealing, but that doesn’t mean it’s the right option. For example, a state minimum liability insurance policy might only cost $738 per year, but it leaves your car uncovered, and your limits are low enough that a serious at-fault crash could lead to major exposure.
Here are some of the reasons why a cheap policy could cost you more in the long run:
- 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. Choosing a minimum coverage policy deliberately is a legitimate decision, but choosing it because nobody explained the alternative is not.
Sophie’s Tip
There’s a real difference between finding a lower rate for the coverage you actually need and cutting coverage to get a lower rate. The first one is smart shopping. The second one is a financial risk you might not see until it’s too late.
Why no two drivers pay the same price
Car insurance premiums depend on multiple personal factors, like your driving record, credit score and age. Each of those factors is weighed differently by insurers, which is why you can get different quotes just by shopping around.
Your ZIP code alone can significantly affect your rate. Insurers look at local accident frequency, theft rates and weather patterns in your area. Two drivers in the same city but with different ZIP codes can pay wildly different premiums.
The bottom line is that no two drivers have the same combination of rating factors, which is why no two drivers pay the same price. Comparing quotes regularly is the only way to know if your rate is still the cheapest.
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 ($54/month) and state minimum coverage ($45/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 $62 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.
Should I choose a $500 or $1,000 deductible?
Whether you should choose a $500 or $1,000 deductible depends on how much you could realistically afford to pay right now if you had a claim. If you’re able to pay the higher amount, you’ll likely save on the premium. The average annual rate for a full coverage policy with a $500 deductible is $2,578, and the average for a policy with a $1,000 deductible is $2,309, about a $270 difference.
Does a higher deductible always mean cheaper insurance?
A higher deductible almost always results in a lower car insurance premium, but the amount you can save varies based on many factors, especially your location. For example, a driver in South Dakota who raises their deductible from $250 to $1,000 saves an average of $770 per year, whereas a driver in Maryland saves only an average of $317 by raising their deductible by the same amount.
What deductible should a first-time driver choose?
There’s no “best” deductible for a first-time driver. The right deductible for you depends on how much you could pay out of pocket if you had a claim, using the money you have available right now. First-time drivers often pay higher rates than more experienced drivers, so a higher deductible could offset some of those costs. But if you have a claim, a higher deductible means you’re on the hook for more of the cost.
Resources & Methodology
Sources
- Insurance Information Institute. “What if I can’t find auto coverage?” Accessed September 2026
- Insurance Information Institute. “ Background on: Insurance scoring.“ Accessed September 2026
Methodology
CarInsurance.com commissioned 2026 data from Quadrant Information Services to get car insurance rates for different age demographics, genders, credit tiers, driving records, deductible levels and states. The rates are based on sample profiles of 40-year-old male and female drivers with full-coverage policies and limits of 100/300/100 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.
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