Cheapest car insurance companies in 2025

Nationwide and GEICO have the cheapest auto insurance rates in 2025 among the dozens of insurance providers CarInsurance.com studied. Major insurers State Farm, Progressive, Farmers and Allstate also offer some of the cheapest car insurance. 

The cheapest company for a full coverage policy is Nationwide with a monthly cost of $129. GEICO is the cheapest for a liability-only or state minimum policy with monthly rates of $47 and $34, respectively.

Keep reading to explore the cheapest auto insurance companies and tips for finding the most affordable policy for your situation.

Cheapest car insurance company for you

• For full coverage
  Nationwide

  $129 per month; $1,548 a year
• For liability-only
  GEICO

  $47 per month; $560 a year
• For state minimum
  GEICO

  $34 per month; $405 a year
• For teens drivers
  Travelers

  $403 per month; $4,834 a year
• For senior drivers
  Nationwide

  $121 per month; $1,456 a year
• For drivers with poor credit
  Nationwide

  $188 per month; $2,259 a year
• For drivers with speeding tickets
  State Farm

  $193 per month; $2,321 year
• For drivers with DUI
  Progressive

  $225 per month; $2,707 a year
• For drivers with accidents
  State Farm

  $203 per month: $2,436 a year
• For low-mileage drivers
  Travelers

  $125 per month; $1,499 a year

Cheapest car insurance company overall: Nationwide

Nationwide is the cheapest major car insurance company for full coverage policies, providing savings of $347 compared to the national average of $1,895. GEICO is the cheapest insurance company for liability and state minimum coverage levels.

Travelers is the cheapest carrier in most other categories. 

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 idea of coverage costs for different scenarios.

However, exactly how much you pay depends on your personal circumstances. Car insurance quotes vary based on your age, location, driving record, credit-based insurance score, driving habits and the type of vehicle you drive.

Cheap car insurance from major insurers by driver profile

Cheap car insurance for drivers with poor credit

Among the auto insurance carriers surveyed, Nationwide offers the most affordable car insurance for drivers with poor credit. The table below shows how companies compare for cheap car insurance with poor credit. 

Note that though other companies have a lower percentage increase for poor credit, GEICO has the lowest rate.

Note: USAA is only available to military community members and their families.

How can I get cheap car insurance with bad credit?

Cheapest car insurance after a speeding ticket

Nationwide has the cheapest car insurance rates after a speeding ticket, at an average annual cost of $2,352.

Tickets for moving violations affect how much you pay for car insurance, so part of keeping your costs low is maintaining a clean driving record. Insurance companies check your driving history upon renewal or when you get quotes for a new policy and use that information for rate pricing. You’ll pay higher rates if you’ve had a recent moving violation, such as a speeding ticket.

However, each company assesses risk differently, so even if you have driving infractions on your record, you’ll save if you compare car insurance companies. 

Below is a breakdown of average increases for speeding tickets by company.

Note: USAA is only available to military community members and their families.

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

Cheap car insurance after a DUI

If you are caught driving under the influence, you risk losing your driver’s license, with penalties varying by state and prior DUI convictions. Your car insurance premiums will increase as well, anywhere from 35% to 155%. Progressive is the cheapest company after a DUI, with a rate increase of $709 annually.

Following a DUI conviction, your insurance company might drop you, necessitating a search for a new insurer and likely leading to higher premiums due to your status as a high-risk driver. 

See annual rates before and after a DUI in the table below.

Note: USAA is only available to military community members and their families.

How much does your insurance go up after a DUI?

Cheap car insurance after an accident

Following an at-fault accident, State Farm offers the cheapest car insurance rate at $2,440, which represents a 23% increase. State Farm has the lowest increase percentage for drivers with a recent accident claim as well as the most affordable car insurance for those who have had an accident. 

The table below breaks down the average rates for drivers before and after an accident. 

Note: USAA is only available to military community members and their families.

How much does insurance go up after an accident?

Cheap car insurance for teens

Travelers is the cheapest car insurance company for teen drivers, among those surveyed in our study of rates for a 16- to 19-year-old driver with their own full coverage policies. However, teens can’t buy policies without having a parent/guardian co-sign until they’ve reached the age of majority in their state. 

USAA is among the cheapest companies with a rate of $4,473 and $4,296 for male and female teen drivers, respectively, per year, but is only available to military members, veterans and their immediate family. Also, Liberty Mutual, one of the biggest auto insurers in the U.S., is not included in the list of insurers offering cheap car insurance because of a lack of public rate information from the company.

Travelers’ average rates for male and female drivers are $5,155 and $4,516, respectively. See more rates in the table below.

Note: USAA is only available to military community members and their families.

How much is car insurance for teen drivers?

Cheap car insurance for seniors

Nationwide has the cheapest car insurance rates for senior drivers among the insurance companies in our study. Their average rates for males vs. females are comparable at $1,493 and $1,419.

USAA is among the cheapest companies with average annual rates of $1,418 and $1,383 for male and female senior drivers, respectively, but is only available to military members, veterans and their immediate families. 

See more rates in the table below.

Note: USAA is only available to military community members and their families.

Senior car insurance : What you need to know?

Cheap car insurance quotes for low-mileage drivers

You could qualify for cheaper auto insurance if you’re a driver who logs less than 12,000 miles a year.  Farmers is the cheapest auto insurance company for low-mileage drivers.

Driving fewer miles means you have a smaller chance of getting 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. 

See the average annual rates for low-mileage drivers in the table below.

Note: USAA is only available to military community members and their families.

Cheapest car insurance companies by state

GEICO, State Farm and Progressive are the cheapest car insurance companies in most states among insurers surveyed. The table below shows how companies rank in your state, from the cheapest to the most expensive.

Affordable car insurance companies, by city

Car insurance rates don’t just differ from state to state. They vary – sometimes greatly – from city to city and even by ZIP code. That’s because your location is important in how insurers calculate rates. But you can find cheap rates in your city by using CarInsurance.com’s car insurance ZIP code calculator.

Cheapest car insurance rates by coverage type

The type of car insurance coverage you want can greatly impact your insurance premiums. Below, we explore the cheapest options for different kinds of insurance coverage. 

Affordable car insurance for drivers with full coverage

Full coverage car insurance includes both comprehensive and collision insurance. After an accident, this type of coverage can help you pay for repairs or replace your own vehicle. 

Check safety ratings and buy a safer vehicle: Safer cars have fewer accidents and typically are cheaper to insure. Nationwide is the cheapest car insurance company for full coverage policies among those surveyed by CarInsurance.com’s editorial team. Full coverage includes liability insurance, which state law requires, and comprehensive and collision coverage.

Note: USAA is only available to military community members and their families.

Cheapest small companies for full coverage insurance

Smaller, regional carriers American National, Grange and Oregon Mutual offer the cheapest car insurance. American National’s rate for a full coverage policy is $827 per year. See more rates from small and regional car insurance companies in the table below.

What is full coverage car insurance and what does it cover?

Affordable car insurance for liability-only coverage

Liability car insurance pays for damage you cause to other vehicles and property. It does not cover damage to your car. GEICO offers the cheapest liability-only car insurance at a monthly cost of $47.

The table below shows rates for a policy that provides more protection than most state minimums: Bodily injury liability of up to $50,000 for injuries per person, up to $100,000 per accident and up to $50,000 for property damage liability.

Note: USAA is only available to military community members and their families.

Affordable car insurance rates from smaller companies for liability only

For liability-only coverage from smaller companies, American National offers the cheapest car insurance, followed by IMT Insurance, Grange and Nodak Insurance. See more rates in the table below.

Liability car insurance: What it covers and what it costs by state

Cheapest car insurance companies for state minimum coverage

If you’re looking for an auto policy with bare-bones coverage, GEICO, State Farm and Travelers have the cheapest car insurance for state-minimum liability-only coverage.

The cheapest car insurance policy among coverage options is the one that meets your state’s minimum liability limit requirements. Since a state-minimum liability policy provides the least coverage so the premium will be low, as seen in the table below.

Note: USAA is only available to military community members and their families.

Cheapest smaller companies for state minimum car insurance

Many small companies offer state minimum coverage policies. See the options and average rates in the table below. 

What is state minimum car insurance?

How to get the cheapest car insurance rates

Comparing car insurance quotes can help you save hundreds of dollars because each car insurance company uses its own formula to calculate your rate. So, the same policy can have different prices among different insurance companies.

Shopping around and comparing quotes for affordable car insurance coverage from several insurers is the best way to find cheap car insurance without compromising on quality.

“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,” says William Shughart, professor in public choice at the Jon M. Huntsman School of Business at Utah State University. “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).”

Here are a few tips to help you save money on car insurance:

• Ask about discounts: Common car insurance discounts include those for safe drivers and students, paying in full, paying online, bundling auto and home, insuring a new vehicle, and installing safety features on your car.
• Increase your deductible: If you increase your deductible, ensure you can pay the deductible if you file a claim.
• Comparison shop for insurance: Compare car insurance quotes upon the renewal of your policy – and if you buy a new car, add or remove drivers, add a teen driver, move, buy a house, get married or divorced, have a change in your credit score or get into an accident. Get a car insurance quote from at least three companies. 
• Check safety ratings and buy a safer vehicle: Safer cars have fewer accidents and typically are cheaper to insure.
• Consider low-mileage or usage-based auto insurance plans: If you don’t drive much – 10,000 miles or so a year – you can save money by purchasing a low-mileage plan from a company like Metromile.

Check out our detailed guide on the factors that affect car insurance rates

What are the risks of buying the cheapest car insurance?

In life, they say, you get what you pay for. Just because a particular carrier charges the lowest rate doesn’t necessarily mean you should choose that company. There could be risks with opting for the cheapest insurer, such as the possibility that the company may not be financially solvent, for example.

“Cost of coverage is just one factor you should consider when purchasing car insurance,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute. “You need to make sure your insurer is financially stable and has the capability to pay claims, even after a catastrophic large-scale loss event like a hurricane, tornado, wildfire or flood. Ask your insurance agent to provide you with the insurer’s from a third-party rating firm like AM Best, as well as their J.D. Power customer satisfaction scores. You can also check out consumer sites where policyholders post unfiltered comments about their customer service and claims experiences.”

Choosing the cheapest car insurance goes beyond the lowest price

“Drivers should remember that the cheapest policy isn’t necessarily the best,” says Scott Distasio, a Florida-based board-certified civil trial lawyer with extensive experience in auto accident law. “It’s crucial to ensure adequate coverage to safeguard against costly liabilities in the event of a severe accident. Balancing cost with coverage is key.”

As you look for 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.

Frequently asked questions

Resources & Methodology

Sources

1. Insurance Information Institute “What determines the price of an auto insurance policy?” Accessed June 2025. 
2. Insurance Information Institute “How much auto coverage do I need?” Accessed June 2025.

Methodology

CarInsurance.com commissioned Quadrant Information Institute to get car insurance rate data. The rates are based on the sample profile of a 40-year-old male and female driver for different coverage limits.

• Full coverage policy with limits 100/300/100 and a $500 coll/comp deductible.
• A liability-only policy with limits of 50/100/50.
• Minimum liability policy with state-specific limits.

We have gathered data based on different driving profiles, including-

• Teen drivers (Age: 16-19)
• Senior drivers (Age: 65-75)
• Low-mileage drivers
• Drivers with a DUI
• Drivers with a speeding ticket
• Drivers with a poor credit score
• Drivers with an at-fault accident on their record.

Read the detailed methodology for more information.