The Cheapest Car Insurance Companies (October 2021)

The Cheapest Car Insurance Companies (October 2021)

Drivers looking for cheap car insurance quotes can best shop around. No single insurance provider will be the cheapest for every driver but our research will give you a good starting point. Learn about the cheapest transport companies in your state and in your country. The exact same man could be charged $32 a month and $104 by the other party's insurer. The best insurance rate are based on millions of quote collected from million of drivers across the USA and in your states.

Cheapest Car Insurance

What is the cheapest car insurance company?

According to our research, USAA and State Farm are the most cost-effective large insurers in the country. For a six-month insurance, USAA charged an average of $224, which was 49% less than the national average. A six-month coverage from State Farm cost $309, which is 30% less than the national average.

Although USAA is by far the most affordable option among major insurers, only active military members, veterans, and their families are eligible for coverage.

Farm Bureau Insurance, at $251 for a six-month insurance, and Erie, at $195, are the lowest among insurers with a smaller national footprint.

These insurers may not be as well-known as some of the businesses you may remember from national television commercials, but they may be able to save you money if you're seeking for the best deal.

Cheapest Car Insurance Companies

The Three Cheapest Major Car Insurance Companies

State Farm is the nation's largest vehicle insurance provider, with plans available across the country with prices that are lower than the national average in 48 states (excluding Massachusetts and Rhode Island) and Washington, D.C. State Farm charges $309 for a six-month minimum coverage auto insurance policy. Furthermore, because this organisation has such a large network of local agents, there is very certainly a State Farm representative in your city who can assist you with a policy.

Geico is the country's second-largest vehicle insurance firm, with operations in all 50 states and Washington, D.C. Geico charges $390 for a six-month minimum coverage insurance. Geico also provides one of the best pricing tools in the auto insurance market, making it simple to receive an instant rate and compare quotes online.

USAA is the lowest of the three insurers, and it, like Geico, is available in all 50 states and Washington, D.C. On average, minimum coverage auto insurance costs $223 for a six-month policy, which is by far the lowest rate. Only active military members, veterans, and their families will be allowed to join USAA, hence it ranks last among these three insurers. However, as the country's fifth largest auto insurance business, it serves nearly as many clients as competitors Progressive and Allstate.

Based on online quotations we acquired for a representative 30-year-old driver, the chart below shows how the average six-month rates for 13 of the country's largest auto insurers contrasted.

Six-month Rate
1Erie$1952USAA$2233Farm Bureau Mutual$2514State Farm*$3095American Family$3876Geico*$3907Progressive*$3948MetLife*$4539Nationwide*$46610Auto-Owners Insurance$51311Farmers*$55312Travelers*$62313Allstate*$625

How rates with the cheapest insurers might change depending on your driver profile

Your auto insurance premiums are influenced by a number of factors, including your location, age, driving history, vehicle, financial profile, and, perhaps most crucially, the coverage you choose. Our rates were based on a 30-year-old motorist with a spotless driving record.

When we change the example driver's age, driving record, and coverage limitations, we see what the five largest insurers charge.

Unless otherwise stated, all charges are for a six-month policy with full coverage rather than minimum coverage.

As you can see

  1. Younger drivers and those with a history of accidents are taxed significantly more than older drivers and those with a clean driving record.
  2. Those who choose a policy with the bare minimum of coverage can save a lot of money on their premiums, but they risk not being completely insured in the event of a big accident.

What is the cheapest car insurance company for you?

We found the cheapest auto insurance companies, although some insurers may be cheaper for some types of drivers than others, based on a range of factors such as location, driving history, financial profile, and more.

The cheapest car insurance companies

Erie is the cheapest vehicle insurance company overall

We evaluate Erie as the lowest insurance company since USAA has eligibility restrictions and Farm Bureau Insurance is disproportionately expensive when you buy more coverages. It's also dependable, thanks to its excellent customer service reputation. The biggest disadvantage of Erie is that it is only offered in 12 states and Washington, D.C.

Erie was one of the most affordable non-USAA options for our sample driver, whether you're looking for a car insurance policy that just meets your state's standards or a more comprehensive full-coverage policy.

The cheapest companies for a policy with the bare minimum of coverage

Six-month rate
3Farm Bureau Insurance$251
4State Farm$309
5Auto-Owners Insurance Co$513

For a full coverage policy, the cheapest firms are

Six-month rate
1USAA$6442Erie$8063State Farm$8124Farm Bureau Insurance$8715American Family$1,067

A full coverage policy protects you against both collision and comprehensive damage to your car, as well as the legal liability of hurting or injuring other drivers.

Erie also received top scores for policy options: it provides pet coverage, free accident forgiveness, free vanishing deductibles, and roadside assistance to its customers, giving them a level of freedom rarely found even among the largest insurers.

Customers who enrol in Erie's rate lock programme can avoid premium increases that could cause rates to rise over time. This is a one-of-a-kind service in which customers' rates will not increase unless they move to a new region or change where they park their car, add or remove someone from your insurance, or add or remove a car.

Erie also offers the same types of reductions that larger national insurers do, despite its smaller size. Premium discounts are available for having several policies, owning a car with anti-lock brakes or anti-theft technology, and for young and older drivers.

The most significant disadvantage of Erie is that it is only available in the following locations:

  • District of Columbia
  • Illinois
  • Indiana
  • Kentucky
  • Maryland
  • New York
  • North Carolina
  • Ohio
  • Pennsylvania
  • Tennessee
  • Virginia
  • West Virginia
  • Wisconsin
If you don't qualify for USAA and some of these smaller insurance firms aren't available in your state, State Farm is the lowest overall insurance company and a good location to start your comparison shopping.

State Farm is the cheapest auto insurance company after an accident.
In comparison to the many vehicle insurance companies we investigated, we discovered that State Farm boosts car insurance rates the least after a driver is involved in a recent at-fault accident. State Farm's average rates climbed by 24% following an accident, from $812 to $1,010, the least rise of any business we looked at. Insurers raised premiums by 42 percent on average.

For a six-month full coverage policy, how insurance costs rise after an accident

Clean record
One accident
Rate increase
2State Farm$1,623$2,02024%
3Farm Bureau$1,742$2,32533%
5American Family$2,135$3,26053%

The rates in this table are for a full coverage policy that includes collision and comprehensive coverage. This is to show how your prices could alter if you have more than just the state's required liability insurance.

Despite the fact that Erie increased premiums by 25% after an accident, a higher penalty than State Farm, it was still the cheapest insurer for a driver with an at-fault accident. However, vehicle insurance premiums vary widely, and the fact that State Farm penalises drivers the least suggests that it is a smart place to start for drivers with a history of accidents searching for low-cost coverage.

State Farm also has a good reputation for customer service and claims management.

  • According to our study of current clients, the majority of them are satisfied with the way State Farm treats them.
  • 73 percent of those polled said they were extremely satisfied with their insurer's most recent claims process.

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