Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. Through her years working in th...

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Reviewed by Melanie Musson
Published Insurance Expert Melanie Musson

UPDATED: Mar 10, 2022

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Just What's Essential

  • USAA has the most affordable car insurance in America
  • Car insurance rates are determined by several factors, such as age and driving record
  • Liability car insurance is 53% cheaper than full coverage

Are you trying to find the cheapest car insurance companies in your town? Locating cheap insurance isn’t as complicated as it seems.

The internet has made it much easier for you to compare affordable car insurance. But where should you start?

Don’t worry – we’re here to help you find cheap car insurance. Read this article to learn which insurance companies are the best and most affordable in the United States.

If you want to find cheap car insurance right now, enter your ZIP code in the free online tool above to compare quotes from multiple insurance companies near you.

What are the best cheap car insurance companies in America?

The best car insurance companies in the nation have the highest market share in the car insurance industry. But which companies have the highest market share in 2022?

Let’s look at the top 10 companies by market share.

A.M. Best Financial Strength Ratings for the Top Car Insurance Companies in the U.S.
Auto Insurance CompanyA.M. Best RatingsDirect Premiums Written (in Billions)Market Shares (in Percent)Loss Ratios (in Percent)
State FarmA++ (Superior)$40.3 (↓)16.20 (↓)63 (↓)
GEICOA++ (Superior)$33.9 (↑)13.60 (↑)71 (~)
ProgressiveA+ (Superior)$33.1 (↑)13.30 (↑)62 (~)
AllstateA+ (Superior)$25.8 (↑)10.40 (↑)56 (↓)
USAA (Military & Family Members)A++ (Superior)$15.7 (↑)6.30 (↑)77 (~)
Liberty MutualA (Excellent)$11.8 (~)4.70 (↓)62 (~)
FarmersA (Excellent)$9.9 (↓)4.00 (↓)61 (~)
NationwideA+ (Superior)$5.7 (↓)2.30 (↓)58 (↓)
American FamilyA (Excellent)$5.1 (↑)2.10 (↑)69 (~)
TravelersA++ (Superior)$4.8 (↑)2.00 (↑)60 (~)
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These companies are considered the best because of their earnings, their place among the A.M. Best ratings, and their stable loss ratio.

State Farm has been one of the top earners in the last few years, but USAA and GEICO have cheaper insurance rates. And in some parts of the United States, State Farm is rated lower than companies like Travelers and Allstate.

Quality varies by state. Some companies don’t perform well in specific areas, while others do. But looking at averages can give you a better idea about which company is more affordable overall.

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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Which insurance company is the cheapest by age?

Age is a significant factor that can lead you to cheap auto insurance. Drivers 25 and older often pay less for car insurance, but drivers younger than 25 pay significantly more.

Check out the table below to see which company is cheapest by age group.

Average Monthly Car Insurance Rates Based on Age, Gender, and Marital Status by Company
CompaniesMonthly Car Insurance Rates of a Single 17-Year-Old FemaleMonthly Car Insurance Rates of a Single 17-Year-Old MaleMonthly Car Insurance Rates of a Single 25-Year-Old FemaleMonthly Car Insurance Rates of a Single 25-Year-Old MaleMonthly Car Insurance Rates of a Married 35-Year-Old FemaleMonthly Car Insurance Rates of a Married 35-Year-Old MaleMonthly Car Insurance Rates of a Married 60-Year-Old FemaleMonthly Car Insurance Rates of a Married 60-Year-Old Male
USAA$401$449$166$177$129$128$121$121
State Farm$496$610$195$213$173$173$156$156
Travelers$776$1,071$194$208$182$183$171$173
American Family$500$678$191$225$184$185$166$168
Progressive$724$802$225$230$191$181$166$171
GEICO$471$523$198$189$192$193$187$190
Nationwide$480$598$224$241$197$199$178$185
Farmers$710$762$246$253$213$213$195$204
Allstate$774$887$285$298$263$260$243$249
Liberty Mutual$968$1,143$330$375$317$321$287$307
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USAA is the cheapest company, but each company fights for second place in each age group. GEICO is the second-cheapest company for 17-year-old females, but State Farm is the most affordable for 60-year-old females.

Not everyone can get a USAA insurance policy because it’s an insurance company that serves only veterans and their immediate families.

Teen drivers pay nearly double the average rate that a 35-year-old driver pays. Meanwhile, senior drivers pay the least for insurance. And if you’re married, you can secure affordable auto insurance.

Which car insurance company is the most affordable by credit history?

People who have good credit have access to the cheapest auto insurance on the market. Insurance companies correlate good credit with a low risk of filing car insurance claims, but drivers with bad credit have the opposite effect.

Therefore, bad credit can lead to more expensive insurance rates. Here’s an example of how poor credit can affect cheap insurance.

Average Monthly Car Insurance Rates Based on Credit History by Company
CompaniesMonthly Car Insurance Rates Based on Good Credit ScoresMonthly Car Insurance Rates Based on Fair Credit ScoresMonthly Car Insurance Rates Based on Poor Credit Scores
USAA$152$185$308
State Farm$181$238$413
GEICO$203$249$355
American Family$224$264$372
Nationwide$244$271$340
Progressive$302$330$395
Farmers$306$325$405
Allstate$322$382$541
Travelers$338$362$430
Liberty Mutual$366$467$734
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Besides USAA, State Farm and GEICO are the most affordable companies for drivers with good and fair credit. However, Nationwide is the cheapest car insurance company for drivers with poor credit.

Fair and poor credit drives up auto insurance rates, but you can offset high-cost insurance with other factors that determine car insurance cost. If your credit improves during your policy, let the insurance company know.

Which insurance company is the cheapest by driving record?

Your driving record is one of the best roads to take to get cheap insurance. A clean driving record produces affordable car insurance rates, but multiple driving infractions can raise your rates.

Let’s look at the table below to see how different traffic violations and accidents affect your insurance rates.

Average Monthly Car Insurance Rates Based on Driving Record by Company
CompaniesMonthly Car Insurance Rates Based on a Clean Driving RecordMonthly Car Insurance Rates With One Speeding TicketMonthly Car Insurance Rates With One AccidentMonthly Car Insurance Rates With One DUI
USAA$161$183$210$292
GEICO$179$220$266$406
American Family$224$252$310$361
Nationwide$229$259$283$379
State Farm$235$266$283$303
Progressive$283$334$398$331
Travelers$287$355$357$478
Farmers$288$340$377$393
Allstate$318$374$416$522
Liberty Mutual$398$475$517$634
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You could spend less money at GEICO, American Family, and Nationwide with a clean driving record. Although State Farm earns the most money, it was bumped to fifth place for drivers with clean driving records.

DUIs and accidents have the biggest impact on your car insurance rates per month. And traffic infractions can last for three years or longer. As long as you have those violations on your driving record, you’ll always pay expensive car insurance rates.

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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Is liability insurance cheaper than full coverage?

Liability car insurance provides the bare minimum. In other words, liability insurance is the lowest possible coverage you can buy to drive legally. There’s nothing wrong with that, but you won’t have the extensive reach of full coverage.

Full coverage comes with several coverages, but it costs more. According to the National Association of Insurance Commissioners (NAIC), full coverage is 53% more expensive than liability coverage.

We’ve seen the average car insurance rates of the best companies. What would their liability-only rates look like? Let’s use NAIC’s percentage to estimate liability-only rates at the top insurance companies.

Comparing Full Coverage vs. Liability-Only Car Insurance Rates by Company
CompaniesMonthly Full Coverage Car Insurance RatesMonthly Liability-Only Coverage Car Insurance Rates
Allstate$318$162
American Family$224$114
Farmers$288$147
GEICO$179$91
Liberty Mutual$398$203
Nationwide$229$117
Progressive$283$144
State Farm$235$120
Travelers$287$147
USAA$161$82
**Average**$260$133
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Liability auto insurance cuts cost more than half. So, if you’re looking for the cheapest car insurance, you should buy liability-only insurance.

But keep in mind, drivers who are still making payments on their vehicle through financing are required to have full coverage insurance.

How do you get cheaper car insurance rates?

You can get cheap full coverage insurance, but you’ll need to qualify for multiple discounts. When you stack car insurance deals, you can save hundreds of dollars per year.

But how much are discounts worth at the best companies in America? Let’s examine a list of available deals you can add to your policy at the most significant companies in the United States.

Car Insurance Discounts
Car Insurance DiscountsAllstate (%)American Family (%)Farmers (%)GEICO (%)Liberty Mutual (%)Nationwide (%)Progressive (%)State Farm (%)Travelers (%)USAA (%)
Adaptive Cruise ControlN/AN/AN/AN/A5xxN/AN/AN/A
Adaptive HeadlightsN/AN/AxN/A5xxN/AN/AN/A
Anti-lock Brakesxxx555x5xx
Anti-Theftxxx252025x15xx
Claim Freexxx26x10x152312
Continuous CoveragexxxxN/AN/AxN/A15N/A
Daytime Running Lightsxxx155xN/Axx
Defensive Driverxxxx105105103
Distant StudentxxxxN/A10xx7x
Driver's Edxxxx10N/A101583
Driving Device/AppxxN/Ax30402050305
Early SigningxxxxN/A8xN/A1012
Electronic Stability ControlxxxN/A5xxN/AN/AN/A
Emergency DeploymentN/AN/AN/A25N/AN/AN/AN/AN/AN/A
Engaged CoupleN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Family LegacyN/AxN/AxN/AN/AxN/AN/A10
Family PlanN/AxxN/AN/A25N/AN/AN/AN/A
Farm VehiclexN/AxxN/AN/AN/AN/AN/AN/A
Fast 5N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Federal EmployeeN/AN/Ax810N/AN/AN/AN/AN/A
Forward Collision WarningN/AN/AN/AN/A5xxN/AN/AN/A
Full PaymentN/Axxx$5N/AxN/A7.5N/A
Further EducationN/AN/AN/Ax1015N/AN/AxN/A
Garaging/StoringN/AN/AxN/AN/AN/AN/AN/Ax90
Good CreditxxN/AN/AN/AxxxN/AN/A
Good Studentxxx1522.510x2583
Green VehiclexN/A5N/A10N/AN/AN/A10N/A
HomeownerN/AN/Axxx5x35N/A
Lane Departure WarningN/AN/AN/AN/AxxxN/AN/AN/A
Life InsurancexN/AN/AN/AN/AxN/AN/AN/AN/A
Low Mileagexxxxxxx30xx
LoyaltyN/AxN/AxN/A5xN/AN/Ax
MarriedN/AN/AN/AN/AxxxxN/Ax
Membership/GroupN/AN/AN/Ax107N/AN/AxN/A
MilitaryxN/Ax154N/AN/AxN/Ax
Military GaragingN/AN/AN/AN/AN/AN/AN/AN/AN/A15
Multiple DriversN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Multiple Policies1029x102010121713x
Multiple Vehiclesxxx25102010208x
New AddressN/AN/AN/AN/A5N/AN/AN/AN/AN/A
New Customer/New PlanN/AN/AN/AN/AxN/AN/AN/AN/AN/A
New GraduateN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Newer VehiclexN/AxxN/Axx401012
Newly LicensedN/AN/AN/AN/A5N/AN/AN/AN/AN/A
NewlywedsN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Non-Smoker/Non-DrinkerN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Occasional OperatorN/AN/AN/AN/AN/AN/AN/AN/AN/Ax
OccupationxN/Axx1015N/AN/AxN/A
On-Time PaymentsxN/AN/AN/AN/AN/AN/AN/A15N/A
Online ShopperN/AN/AN/AN/AN/AN/A7N/AN/AN/A
Paperless DocumentsxxxN/AN/A5$50N/AN/AN/A
Paperless/Auto BillingxxxN/Ax$30x$233
Passive Restraintxxx40x20x40xx
Recent RetireesN/AN/AN/AN/A4N/AN/AN/AN/AN/A
RenterN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Roadside AssistanceN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Safe DriverN/AN/Ax15N/A3531152312
Seat Belt UseN/AN/AN/A15N/AN/AN/AN/AN/AN/A
Senior DriverxN/AxN/AN/AN/AN/AN/AN/Ax
Stable ResidenceN/AN/AN/AN/AN/AxxN/AN/AN/A
Students & AlumniN/AxN/Ax107N/AN/AN/AN/A
Switching ProviderN/AxxN/A10N/AxN/AN/AN/A
Utility VehiclexN/AxxN/AN/AN/AN/AN/AN/A
Vehicle Recoveryxxx153525x5xx
VIN EtchingN/AN/AxN/A5xxN/Axx
VolunteerN/AxN/AN/AN/AN/AN/AN/AN/AN/A
Young DriverN/AN/AN/AN/AxN/AxN/AN/A$75
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The truth is that you won’t get all the discounts you see. But you could save money even if you’re eligible for only three insurance deals.

Can you save money through usage-based insurance?

Yes, you can. Usage-based insurance can save you more money by using your driving habits and how much you drive to determine savings. Here are a few usage-based insurance programs from the best insurance companies.

Usage-Based Car Insurance Savings by Company
Car Insurance Company Usage-Based Insurance ProgramCar Insurance Savings
Allstate DrivewiseGet 10 to 25% Off
Esurance DriveSenseVaries
GEICO DriveEasyVaries
Liberty Mutual RightTrackSavings are between 5% and 30%
Metromile Car InsuranceVaries
Nationwide SmartRide40% Savings
Progressive SnapShotSave Up to $130
Root Car InsuranceVaries
State Farm Drive Safe & SaveGet Up to 15% Off
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Nationwide provides the most savings through SmartRide, but you’ll have to qualify for those savings through good driving habits. Usage-based insurance discounts are not guaranteed, so you’ll have to maintain a good driving performance to get cheaper rates.

Best Cheap Car Insurance Companies: The Bottom Line

You can get affordable auto insurance by shopping around. Don’t go with the first car insurance quote you see until you’ve compared it to another.

USAA is one of the best insurance companies in America, but you can’t get a policy with them unless you’re in the military or in the immediate family of someone in the U.S. Armed Forces. But the other car insurance companies are just as good.

If you want to see if you can secure cheap car insurance in your area, use our free online quote tool to compare insurance companies now.