What Are the Cheapest Auto Insurance Companies?
Last Updated on January 27, 2026
“Cheapest” auto insurance depends on your state, driving record, vehicle, credit-based insurance score (where allowed), and the coverage you buy. But across major national rate studies, certain insurers consistently appear as low-cost options for many drivers.
This guide ranks 20 insurers that are commonly competitive on price, including large national carriers and regional companies that often beat national averages in the states where they operate. Always compare multiple quotes—many drivers can save hundreds per year by switching, especially at renewal.
Top 20 Cheapest Auto Insurance Companies (Quick List)
Start here, then click into any company below for details. The cheapest insurer can change by ZIP code, coverage level, vehicle, and driving record—so use this as a shortlist to quote.
| Rank | Company | Often Cheapest For | Availability |
|---|---|---|---|
| 1 | Travelers | Full coverage and “good driver” profiles | Nationwide |
| 2 | GEICO | Minimum liability and many low-risk drivers | Nationwide |
| 3 | State Farm | Broad value + strong agent network | Nationwide |
| 4 | Progressive | Higher-risk drivers; telematics; flexible rating | Nationwide |
| 5 | USAA | Military families (often exceptional value) | Eligibility-based |
| 6 | Auto-Owners | Low rates in participating states | Select states |
| 7 | Erie | Regional value + service balance | Select states |
| 8 | Nationwide | Usage-based programs; varied discounts | Nationwide |
| 9 | American Family | Competitive pricing in operating states | Select states |
| 10 | COUNTRY Financial | Regional pricing for stable risks | Select states |
| 11 | Farmers | Bundling and policy customization | Nationwide |
| 12 | Liberty Mutual | Customizable coverages + telematics | Nationwide |
| 13 | Allstate | Drivers who qualify for strong discounts | Nationwide |
| 14 | Mercury | Metro pricing in covered states | Select states |
| 15 | Shelter | Regional value with strong satisfaction | Select states |
| 16 | The Hanover | Independent-agent pricing in many markets | Many states |
| 17 | The Hartford | AARP-focused program value | Many states |
| 18 | Amica | Service-focused shoppers who still want value | Nationwide |
| 19 | Kemper | Budget shoppers; varied driver profiles | Many states |
| 20 | Allied | Agent-sold rates in certain states | Select states |
Want the fastest way to shop? Jump to the step-by-step quote process →
Want to browse more companies? See our A–Z directory of auto insurance company reviews: Insurance company reviews.
How We Ranked the Cheapest Auto Insurers
We prioritized insurers that frequently appear as low-cost options in large quote/rate analyses, then screened for broad availability (or strong regional value), coverage options, and reputation. Pricing changes constantly, so use this list as a starting shortlist—not a guarantee of the lowest price in your ZIP code.
How to use this ranking: Treat this as a shortlist to quote (not a promise of the lowest price). Car insurance rates change constantly by state, ZIP code, driver history, vehicle, and coverage. Before choosing the cheapest quote, also sanity-check financial strength and complaint patterns—a rock-bottom price isn’t worth it if claims service is a headache.
Next, here’s the fastest way to pick which companies to quote first based on your driver profile.
Cheapest Car Insurance Companies by Driver Type
If you want the cheapest rate for your situation, start by quoting companies that are often competitive for your driver profile, then match limits and deductibles across every quote.
| If you’re… | Start your quotes with… | Why these are smart “first quotes” |
|---|---|---|
| Shopping for minimum liability | GEICO, State Farm, Progressive | Often competitive on basic liability pricing for many low-risk drivers. |
| Shopping for full coverage (comp + collision) | Travelers, GEICO, Progressive | Frequently strong for clean records; pricing can vary widely by vehicle and deductibles. |
| A higher-risk driver (ticket/accident) | Progressive, GEICO, Nationwide | Some carriers are more flexible in underwriting and pricing after incidents. |
| Eligible for military insurance | USAA | Often exceptional value for eligible households (price + service). |
| Open to regional insurers | Auto-Owners, Erie, Shelter | Regional carriers can beat national averages in the states where they operate. |
| Want discounts via telematics (usage-based) | Progressive, Nationwide, Liberty Mutual | Programs vary a lot—best for low-mileage and low-risk driving habits. |
Quick tip: When comparing quotes, keep the same limits, deductibles, drivers, and vehicles on every quote—otherwise you’re not comparing apples to apples.
Don’t Skip Regional Car Insurance Companies
Many “cheapest company” lists miss the carriers that can actually win in your ZIP code: regional, agent-sold insurers. If you only quote online, you may never see their prices—yet they can be the lowest option in the states where they operate.
- Quote at least 1 regional insurer if you have access (examples in this guide include Erie, Auto-Owners, Shelter, and others).
- Try an independent agent for “agent-only” companies (some of the best-priced carriers aren’t direct-to-consumer).
- Compare the same coverage (limits, deductibles, add-ons) so you’re not accidentally buying less protection.
Quick tip: Ask an agent: “What are the 2–3 cheapest regional carriers you write in my ZIP code?” That one question often surfaces options most shoppers never quote.
1. Travelers
Travelers is frequently one of the cheapest large insurers for full coverage (liability + comprehensive + collision), especially for drivers with clean records. It’s a strong baseline quote to include when you’re shopping nationwide.
More details on coverages, discounts, and who it fits best: Travelers auto insurance review.
2. GEICO
GEICO often shines on minimum liability pricing and can be very competitive for low- to moderate-risk drivers. It’s also a popular choice for shoppers who want a direct-to-consumer experience with strong digital servicing.
For a full breakdown of GEICO’s pricing, discounts, coverage options, and who it tends to be cheapest for, see our in-depth review: GEICO auto insurance review.
3. State Farm
State Farm is one of the largest auto insurers in the U.S. and often offers a strong blend of affordability + local agent service. In many markets, it’s a top contender for families who prefer in-person help with policy changes and claims questions.
Full breakdown of strengths, weaknesses, and who tends to get the best value: State Farm auto insurance review.
4. Progressive
Progressive is often a go-to for drivers with a recent incident (ticket, accident, or a tougher underwriting profile), and its pricing can be highly competitive when other carriers push rates up. It’s also a common winner for shoppers who benefit from usage-based insurance.
More details on pricing, discounts, coverage options, and who Progressive fits best: Progressive auto insurance review.
5. USAA
USAA is consistently among the best values for eligible customers, often combining competitive pricing with strong service. Eligibility typically requires a qualifying military connection (and some related groups).
More details on pricing, coverage options, and who USAA fits best: USAA auto insurance review. Not sure you qualify? Start here: USAA eligibility requirements.
6. Auto-Owners Insurance
Auto-Owners can be extremely competitive in the states where it operates, especially for drivers with stable histories and multi-policy needs. It’s sold through independent agents, which can be a plus if you want advice on limits and deductibles.
Availability and what to expect by market: Auto-Owners car insurance overview.
7. Erie Insurance
Erie is a regional insurer that often delivers standout pricing in the states it serves—frequently paired with strong satisfaction. If Erie is available in your area, it’s a smart quote to add alongside at least one national carrier.
Details on coverage options and availability: Erie auto insurance review.
8. Nationwide
Nationwide is often competitive when you qualify for the right discounts or usage-based program. It’s also a solid “compare quote” company because pricing can swing by state—sometimes landing among the cheapest, sometimes mid-pack.
More details on pricing factors and programs: Nationwide auto insurance review.
9. American Family
American Family can offer excellent value in the states where it writes policies, especially for drivers with clean records, homeowners, or customers who can bundle. If you’re in its footprint, it’s worth including in your quote set.
See pros/cons and best-fit profiles: American Family auto insurance review.
10. COUNTRY Financial
COUNTRY Financial is a regional carrier that can be surprisingly inexpensive for “steady” risks (clean record, consistent garaging, stable household drivers). If it’s offered where you live, it can compete with—and sometimes beat—national brands.
See more details and our review at: COUNTRY Financial auto insurance review.
11. Farmers Insurance
Farmers isn’t always the absolute cheapest, but it can be a strong value when bundling and discount eligibility line up. It’s also popular for drivers who want agent guidance on tailoring coverages and endorsements.
More details on pricing, discounts, coverage options, and who Farmers fits best: Farmers auto insurance review.
12. Liberty Mutual
Liberty Mutual pricing varies widely by state and driver profile, but it can be cost-effective when your policy is customized well and you qualify for telematics or bundling discounts. It’s a good “check the quote” carrier, especially for homeowners.
Deep dive: Liberty Mutual auto insurance review.
13. Allstate
Allstate is a premium brand in many markets, but it can still land among the lowest-priced options for drivers who qualify for multiple discounts or who fit its preferred underwriting profile. It’s also a common choice for customers who want strong digital tools plus agent support.
More details on pricing, discounts, coverage options, and who Allstate fits best: Allstate auto insurance review.
14. Mercury Insurance
Mercury is known for competitive pricing in the states where it operates, particularly in large metro areas. If you’re in its coverage footprint, it’s worth checking—especially if big national carriers are coming in high.
More on value and availability: Mercury auto insurance review.
15. Shelter Insurance
Shelter is a regional insurer with a strong reputation for customer experience in the states it serves. If you live in its territory, it can offer excellent value—especially for households with stable driving histories.
See how it stacks up: Shelter auto insurance overview.
16. The Hanover
The Hanover is an agent-sold carrier that can be very competitive depending on the state and how the policy is structured. It’s often a good fit if you want an agent to help you balance price with strong coverage limits.
More details: The Hanover auto insurance overview.
17. The Hartford
The Hartford is widely known for its AARP-focused auto program. Pricing can be especially competitive for certain mature-driver profiles, and coverage options are typically robust—though availability and terms vary by state.
What to know before you quote: The Hartford auto insurance overview.
18. Amica
Amica is best known for high service and smooth claims handling. While it’s not always the lowest-priced carrier, many drivers still find competitive rates—especially when bundling or when service quality is a top priority.
More on pricing and customer experience: Amica car insurance overview.
19. Kemper
Kemper can be a strong budget option for certain driver profiles, and it’s worth a quote if you’re seeing expensive offers from the biggest carriers. Coverage and availability can vary by state.
Learn more about best-fit scenarios: Kemper auto insurance overview.
20. Allied Insurance
Allied is a Nationwide company sold through agents. Depending on the state and household profile, Allied can price competitively—especially when an agent can help optimize deductibles, vehicles, and discounts.
Company background and what to expect: Allied car insurance review.
How To Get the Cheapest Rate for You
Use this process to avoid “cheap quotes” that quietly reduce coverage:
- Pick your target coverage first. If you’re financing or leasing, you likely need comprehensive and collision insurance. If you’re unsure about terms, start here: is full coverage the same as comprehensive?
- Set higher (but realistic) liability limits. State minimums are often too low for a serious injury claim. Price the policy you actually need.
- Quote at least 3–5 insurers. Include one regional carrier if available (Erie, Auto-Owners, Shelter, etc.) and at least one national carrier (GEICO, State Farm, Progressive, Travelers).
- Compare the same deductibles and add-ons. Towing, rental, glass coverage, and custom equipment can swing prices.
- Re-check rates at renewal. Underwriting appetite changes—today’s cheapest carrier may not be next year’s cheapest.
Use a Baseline Coverage Package When You Quote
To find the true cheapest company, price the same coverage package with every insurer first. Then adjust deductibles/limits if needed.
| Package to quote | Liability limits (example) | Comp / Coll deductibles (example) | Who it’s for |
|---|---|---|---|
| Minimum (benchmark) | State minimums | Varies / often not included | Only to compare pricing—usually not enough protection. |
| Balanced (most shoppers) | 100/300/100 | $500 / $500 | Drivers who want solid protection without overpaying. |
| Stronger protection | 250/500/250 | $1,000 / $1,000 | Homeowners, higher income/asset households, or anyone wanting more liability buffer. |
Do this now: Quote the same Balanced package with one national carrier + one regional carrier + your current insurer. That combo catches the majority of “why is my renewal so high?” savings wins.
Discounts That Most Often Move the Needle
- Multi-car and multi-policy bundling: Often one of the biggest savings levers for households. See how it works: multi-car discounts.
- Low-mileage and telematics: Great for remote workers and careful drivers (but read privacy and scoring details).
- Pay-in-full and autopay: Smaller savings, but easy wins.
- Student and young-driver programs: If you’re pricing for a teen or college driver, start here: cheapest car insurance for young drivers.
Quick tip: If your car is older and paid off, you may save more by adjusting physical damage coverage (comprehensive/collision) and deductibles than by switching carriers alone—just be sure you can afford the out-of-pocket risk.
Coverage Choices That Affect Price the Most
The fastest way to reduce premium is usually to change your coverage structure (not just chase a new company):
| Pricing lever | The “cheaper” choice | What you risk/give up | Better value starting point |
|---|---|---|---|
| Liability limits | State minimum limits | Often too low for a serious injury claim (you pay the difference). | Price a higher limit first, then adjust down only if needed. |
| Deductibles (comp/collision) | Higher deductible (ex: $1,000) | More out-of-pocket after a claim. | Choose the highest deductible you could comfortably pay tomorrow. |
| Collision coverage on an older car | Drop collision | No payout for damage to your car in an at-fault crash. | Consider keeping it with a higher deductible if repairs would hurt financially. |
| Add-ons (rental/towing/glass) | Remove extras | More hassle and cost during breakdowns/repairs. | Keep only the add-ons you’ll realistically use (and price them separately). |
| Driver program discounts | Skip telematics | You may miss meaningful discounts if you drive low-risk. | Test telematics if you’re low-mileage and drive cautiously (read data + renewal terms). |
Don’t Let “Cheapest” Be the Only Filter
Price matters—but claims experiences and complaint patterns matter too. Many shoppers also review customer satisfaction studies and insurer complaint information when choosing a carrier, especially if they’ve had a rough claims experience in the past.
If you want to balance price with overall quality, start with our broader rankings: the best auto insurance companies in America.
How To Get Quotes From Different Auto Insurance Companies
Get quotes online, through agents, or both. For the most accurate comparison:
- Use the same drivers, vehicles, garaging address, and mileage on every quote.
- Match deductibles and limits exactly.
- Ask each carrier to confirm any discounts they applied (safe driver, multi-policy, telematics, pay-in-full, etc.).
- Re-check the quote against your declarations page after purchase.
Finally, don’t forget: you can often cut costs beyond insurance—maintenance, safe driving, and ownership choices all matter. Here are practical ways to lower car-related spending overall: how to save money on car expenses.
