The 7 Best Cheap Car Insurance Companies
Looking to save on your car insurance policy? We’ve researched coverage amounts and insurance companies to help you find the most affordable car insurance, without compromising your protection.
Our Top Picks for Cheap Car Insurance Companies
These are the companies with the best cheap auto insurance options of 2021 according to Money:
- GEICO: Cheapest Rates
- Nationwide: Drivers with Poor Credit
- Progressive: Best for Families
- Liberty Mutual: Best Discount Variety
- State Farm: Best Rates for Local Agents
- Root: Best for Safe Drivers
- Metromile: Best for Pay-per-mile
Best Cheap Car Insurance Reviews
Geico: Cheapest Rates
| Geico Highlights |
| Lowest annual rates for non-military drivers |
| Averages $2,145 for safe drivers and $5,665 for teen drivers |
| Large selection of discounts for easy access to savings |
| Pay-as-you-drive option available through its DriveEasy app |
| Distraction-free driving and braking can help you save |
| Robust tech features on its website and app |
Nationwide: Best for Drivers with Poor Credit
| Nationwide Highlights |
| SmartRide monitors driving behavior and can take up to 40% off |
| SmartMiles saves you money if you don't drive often |
| Vanishing deductible for every year you remain accident-free, up to $500 off |
| Wide range of coverage options |
| Affordable rates for drivers with less-than-stellar credit scores |
| Accident forgiveness available in select states |
Compare rates with Nationwide.
Progressive: Best for Families
| Progressive Highlights |
| Discounts include multi-car, multi-policy, online quotes, paperless |
| Student discounts include: good student, teen drivers, distant college student |
| Lower rates for high school and college students |
| Helpful tools and apps |
| Small accident forgiveness for claims under $500 |
| Name Your Price tool helps customers find a policy within their budget |
Compare rates with Progressive
Liberty Mutual: Best for Discount Variety
| Liberty Mutual Highlights |
| 17 available discounts, including military, alternative energy/hybrid cars, pay-as-you-drive, pay-how-you-drive |
| Customers can bundle home and car insurance |
| Mobile app allows customers to track claims, pay bills, and view policy details |
| Amazon Alexa can give Liberty Mutual quotes and general auto advice |
| Wide range of coverage options |
| Tied with State Farm for highest customer satisfaction in J.D. Power's 2021 U.S. Auto Insurance Study |
Compare rates with Liberty Mutual.
State Farm: Best Rates for Local Agents
| State Farm Highlights |
| 19,000 local agents nationwide |
| Most comprehensive rental car and travel expense coverage on the market |
| Save up to 30% with its two telematics programs: Drive Safe & Safe or Steer Clear Driver |
| Best in the Northeast, according to J.D. Power's 2021 U.S. Auto Insurance Study |
| High claims satisfaction |
Compare rates with State Farm.
Root: Best for Safe Drivers
| Root Highlights |
| Get as much as 52% off your premiums with Pay-as-you-drive (PAYD) or Pay-how-you-drive (PHYD) plans |
| To qualify for Root, install the app and drive for three weeks |
| App allows customers to change coverage levels at any time |
| Roadside assistance covers three accidents per every six months |
| Can provide an SR-22 |
Metromile: Best for Pay-per-mile
| Metromile Highlights |
| Exclusively sells pay-per-mile policies |
| Available in Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington |
| Best for people who drive under 10,000 miles a year |
| Most full-coverage policies include pet injury protection |
| Constantly monitors your driving |
What affects your car insurance rate
Along with your driving record, there are several factors affect the cost of your coverage, including your credit score, age statistics, gender, where you live, coverage levels and finally, your car's make, model, age and safety features.
Check out our guide on how to buy car insurance for easy to follow guidelines.
Best Cheap Car Insurance FAQ
Who has the cheapest car insurance?
Based on our analysis, Geico is the insurance company offering the cheapest rates.
Do car insurance rates vary from state to state?
Yes. With some companies they vary widely. Since company websites don’t always list every discount, check with your insurance agent or your online insurer’s customer service department about non-advertised discounts you could qualify for.
How can I find the best cheap car insurance?
Most car owners can find the best results by researching two things:
The number of discounts each company offers, as noted in our reviews above.
Whether or not a company has use-based insurance options available.
What is price optimization? How does it work?
Through price optimization, companies gather all your personal data that isn’t necessarily connected to your driving habits. This could include your web browsing history, shopping behavior, social network interactions, and even your online mail subscriptions. It has been banned in 20 US states.
With this data, they’ll take advantage of your loyalty and begin increasing your premiums by small amounts on a monthly or yearly basis. If you see your rates go up without a reason, contact your car insurance company immediately.
How can I save money on my car insurance rate?
You could save money by:
- Eliminating comprehensive coverage
- Limiting your liability insurance to your state’s minimum requirement
- Keeping a good driving record
- Bundling policies with the same insurance provider
Can you negotiate car insurance?
You can call different insurance companies and inquire about what discounts they have available. Also, you can get quotes from different companies and compare prices.
[money-faqs-item question="How does my driving record affect my auto insurance rate?"]
Accidents cost insurance companies money. Someone with a clean driving record is statistically less likely to have a wreck and can get lower premiums.
For how long do negative marks stay on my driving record?
In most states, after three to four years, the effects of the negative marks on your driving record will go away.
How We Found the Cheapest Car Insurance Rates
For the companies on our list above, we focused on: discount availability, telematics or usage-based car insurance programs, discounts, extra coverage, and other added benefits at little to no extra cost.
Summary of our Cheap Car Insurance Companies
- GEICO: Cheapest Rates
- Nationwide: Drivers with Poor Credit
- Progressive: Best for Families
- Liberty Mutual: Best Discount Variety
- State Farm: Best Rates for Local Agents
- Root: Best for Safe Drivers
- Metromile: Best for Pay-per-mile