Cheapest car insurance in 2025: Compare rates by company and state

In 2025, Travelers and GEICO stand out with the lowest auto insurance rates among their national competitors. Major insurers like Nationwide, Progressive, State Farm, Farmers and Allstate also rank among the most affordable options.

Travelers offers the cheapest car insurance rates for a full coverage policy, starting at $175 monthly. And if you’re looking for liability-only coverage, GEICO has the most affordable premiums at an average cost of $52 a month and $37 for a state-minimum policy.

Cheapest car insurance company for you

• For full coverage
  Travelers

  $175 per month; $1,051 for six-months
• For liability-only
  GEICO

  $52 per month; $309 for six-months
• For state minimum
  GEICO

  $37 per month; $219 for six-months
• For teens drivers
  GEICO

  $509 per month; $3,056 for six-months
• For senior drivers
  Travelers

  $173 per month; $1,038 for six-months
• For drivers with poor credit
  Nationwide

  $299 per month; $1,797 for six-months
• For drivers with speeding tickets
  Travelers

  $264 per month; $1,582 for six-months
• For drivers with DUI
  Progressive

  $302 per month; $1,812 for six-months
• For drivers with accidents
  Travelers

  $275 per month: $1,651 for six-months
• For low-mileage drivers
  Travelers

  $160 per month; $1,925 for six-months

Cheapest car insurance company overall: Travelers

Travelers is the cheapest car insurance company for full coverage policies, providing coverage at $1,051 for a six-month policy. GEICO is the cheapest insurance company for liability and state minimum coverage.

Travelers is the cheapest carrier in most other categories. 

This report’s data comes 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

Nationwide provides cheap car insurance rates even if you have a poor credit score, at an average of $3,594 annually. It has the lowest cost increase among the insurers on our list. On the other hand, State Farm increases car insurance rates by 336% on average for someone with a bad credit score. 

Below you’ll find how other insurance companies compare. 

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

Travelers has the cheapest car insurance rates after a speeding ticket, at an average annual cost of $3,165. However, State Farm had the smallest increase with a speeding ticket – 19%.

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 annual 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 also increase – anywhere from 35% to 155%, depending on the insurer. 

Based on our analysis, Progressive is the cheapest company after a DUI, with an average annual cost of $3,625. GEICO increases its rates the most, 155%.

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?

Cheapest car insurance after an accident

Following an at-fault accident, Travelers offers the cheapest car insurance rate at $3,302 — a 57% increase from the average cost of $2,103. However, State Farm has the lowest percentage increase for drivers with a recent accident claim and the most affordable car insurance for those with an accident, 23%. 

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

GEICO offers the most affordable car insurance for male teen drivers aged 16 to 19, with full coverage costing an average of $6,441 annually. 

However, teens can’t buy policies without a parent or guardian co-signing until they reach the age of majority in their state, which is usually 18. 

USAA is among the cheapest companies for teens, with rates of $5,448 and $5,085 per year for male and female teen drivers, respectively. However, it is only available to military members, veterans, and their immediate family. 

Travelers’ average rates for male and female drivers are $6,821 and $6,014, 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

Travelers has the cheapest car insurance rates for senior drivers among the insurance companies in our study. Their average rates for males and females are comparable, at $2,139 and $2,014, respectively.

USAA is among the cheapest companies, with average annual rates of $1,614 and $1,556 for male and female senior drivers, respectively. However, it 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.

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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.  Travelers is the cheapest auto insurance company for low-mileage drivers, with a monthly cost of $160.

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 monthly and six-month rates for low-mileage drivers in the table below.

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

Senior car insurance : What you need to know?

Cheapest car insurance companies by state

Car insurance costs vary widely by state — an affordable policy in Vermont might be expensive in Florida.

Our analysis highlights each state’s cheapest car insurance companies, helping you find the best deal. Use this data as a starting point to find affordable coverage that fits your needs and budget.

Remember, rates can vary based on factors like driving history, vehicle type and coverage limits, so comparing quotes is the best way to ensure you’re getting the most value.

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. Travelers is the most affordable car insurance company for full coverage policies among those analyzed 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 Erie Insurance, American Family and Auto-Owners offer the cheapest car insurance. Erie Insurance’s rate for a full coverage policy is $159 per month. See more rates from small and regional car insurance companies in the table below.

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

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 $52.

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

Westfield Insurance offers the cheapest car insurance for liability-only coverage from smaller companies, followed by Erie Insurance, North Star Mutual, Auto-Owners and Country Financial. 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, Progressive, Travelers, State Farm and Nationwide 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.

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 are typically 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.

“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).”

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 insurers 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: Cheap car insurance

Which company has the cheapest car insurance?

Travelers and GEICO offer the cheapest average car insurance for most drivers nationwide.

What is the cheapest type of car insurance coverage?

The cheapest type of policy is minimum liability coverage, which only meets your state’s legal requirements. However, it won’t cover damage to your car after an accident or theft. For broader protection, full coverage (liability, collision and comprehensive) costs more but saves thousands if you have an expensive or financed car.

Which states have the cheapest car insurance?

The cheapest states for full coverage are as follows:

1. Vermont: $1,504
2. New Hampshire: $1,650
3. Maine: $1,701
4. Hawaii: $1,721
5. Ohio: $1,739

Why are car insurance rates so high in some states?

Rates are higher in certain states due to a combination of factors, such as:

• High accident and theft rates
• More severe weather claims (hurricanes, hail, flooding)
• Expensive medical and repair costs
• State insurance regulations and coverage mandates

What’s the cheapest car insurance for new or young drivers?

Young drivers can lower rates by:

• Being added to a parent’s policy
• Completing defensive driving courses
• Choosing safe, inexpensive vehicles
• Asking about good student discounts or usage-based insurance

GEICO and Travelers typically offer the best rates for teen drivers in 2025.

Resources & Methodology

Sources

1. Insurance Information Institute “What determines the price of an auto insurance policy?” Accessed October 2025.

2. Insurance Information Institute “How much auto coverage do I need?” Accessed October 2025.

Methodology

CarInsurance.com commissioned Quadrant Information Services to get car insurance rates. The rates are based on the sample profiles of 40-year-old male and female drivers carrying full coverage policies with limits of 100/300/100 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.