What Are the Cheapest Auto Insurance Companies?

Last Updated on October 7, 2026

By James Shaffer Reviewed by Thomas Rockford, insurance industry executive and financial analyst, on October 4, 2026 How we fact-check

“Cheapest” auto insurance depends on your state, driving record, vehicle, credit-based insurance score (where allowed), and the coverage you buy. Nobody publishes rates by company, so the only evidence available is a rate study built around one sample driver. NerdWallet’s October 2026 analysis, priced on a 2023 Toyota Camry LE driven 12,000 miles a year, calls Travelers “the cheapest large auto insurance company in the nation” for full coverage at $138 a month and puts GEICO lowest for minimum coverage at $41 a month.

This guide is a shortlist of 20 insurers worth quoting, not a price ranking. It mixes large national carriers with regional companies that can beat national brands in the states where they operate. The spread is worth chasing: in that same study, full coverage on the same car ran from $138 a month at Travelers to $190 at Progressive. Always compare several quotes, and do it 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; $132 a month full coverage in NerdWallet’s October 2026 study, its lowest figure	Eligibility-based
6	Auto-Owners	Low rates in participating states	26 states
7	Erie	Top of three J.D. Power regions in 2026	12 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	11 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	Top of J.D. Power’s New England region in 2026	49 states and DC (not Hawaii)
19	Kemper	Budget shoppers; varied driver profiles	20 states
20	Allied	Brand retired by Nationwide; quote Nationwide instead	Not sold under this name

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 appear as low-cost options in rate studies, then screened for broad availability (or strong regional value), coverage options, and reputation. The study we lean on most is NerdWallet’s, last updated October 2, 2026, which prices a 2023 Toyota Camry LE driven 12,000 miles a year and breaks its results out by age, driving record and credit tier. One study, one sample car: that is as good as the public evidence gets, because no insurer or regulator publishes premiums by company. The numbered order below is our shortlist, not a price ranking.

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	$132 a month for full coverage in NerdWallet’s October 2026 study, the lowest of the large carriers it priced.
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. They also tend to do well on service. In J.D. Power’s 2026 U.S. Auto Insurance Study, published June 9, 2026, Erie ranked highest in the Mid-Atlantic, North Central and Southeast regions, Amica in New England and Shelter in the Central region. That is satisfaction, not price, but it is a reason not to skip them.

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 plus comprehensive and collision), especially for drivers with clean records. NerdWallet’s October 2026 analysis calls it “the cheapest large auto insurance company in the nation,” at $138 a month ($1,652 a year) for full coverage on a 2023 Toyota Camry LE driven 12,000 miles a year. Your car and your record will move that figure, but it makes Travelers a sensible baseline quote.

More details on coverages, discounts, and who it fits best: Travelers auto insurance review.

2. GEICO

GEICO often shines on minimum liability pricing. In the same October 2026 analysis it came out lowest for minimum coverage at $41 a month ($492 a year), against $47 for State Farm and $54 for Progressive on the same sample car. 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 produced the lowest figures in NerdWallet’s October 2026 analysis of any large carrier it priced: $132 a month for full coverage and $29 a month for minimum coverage. Eligibility typically requires a qualifying military connection (and some related groups), so it isn’t a quote everyone can get.

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 competitive in the states where it operates, especially for drivers with stable histories and multi-policy needs. It says it is represented by 48,000 licensed agents in 26 states, and it sells only through those independent agents, so you won’t find it with an online comparison run.

Availability and what to expect by market: Auto-Owners car insurance overview.

7. Erie Insurance

Erie operates in 12 states, according to its 2025 annual report on Form 10-K, filed February 2026. It ranked highest in three of J.D. Power’s 2026 regions—Mid-Atlantic, North Central and Southeast. No rate study we found prices Erie, so treat the pricing as unknown until you quote it. If Erie writes in your area, add it 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 sells through independent agents in 11 states: Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia. If you’re in that footprint, it’s worth checking—especially if the big national carriers are coming in high.

More on value and availability: Mercury auto insurance review.

15. Shelter Insurance

Shelter ranked highest in J.D. Power’s Central region in the 2026 study. It doesn’t publish a list of the states it writes in, so the first thing to find out is whether it operates where you live. If it does, it’s worth a quote, 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 service. It ranked highest in J.D. Power’s New England region in the 2026 study. It writes in every state except Hawaii (plus DC), per a March 2026 review; Amica itself publishes no availability list. It isn’t always the lowest-priced carrier, so quote it alongside a national brand.

More on pricing and customer experience: Amica car insurance overview.

19. Kemper

Kemper can be a budget option for certain driver profiles, and it’s worth a quote if you’re seeing expensive offers from the biggest carriers. Its site lists personal auto in 20 states: Alabama, Arkansas, California, Florida, Georgia, Illinois, Indiana, Louisiana, Maryland, Michigan, Missouri, Mississippi, North Carolina, New Jersey, Ohio, Pennsylvania, South Carolina, Tennessee, Texas and Virginia.

Learn more about best-fit scenarios: Kemper auto insurance overview.

20. Allied Insurance

Allied is no longer a brand you can shop. Nationwide announced in 2014 that it would drop the Allied, Harleysville and Scottsdale names and sell everything as Nationwide, and Nationwide’s personal auto pages make no mention of Allied today. If you have an old Allied policy, it is a Nationwide policy. Quote Nationwide, and quote it through an independent agent if that is how you bought the Allied one.

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. My advice is to put a reminder in your calendar two weeks before each renewal and get three fresh quotes, because the only reliable way to find your cheapest company is to price your own car with your own record.

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.

FAQs on Cheapest Auto Insurance Companies

Who is usually cheapest for minimum liability coverage?

It varies by state and driver profile. In NerdWallet’s October 2026 analysis, GEICO came out lowest for minimum coverage at $41 a month, with State Farm at $47 and Progressive at $54, all priced on a 2023 Toyota Camry LE driven 12,000 miles a year. That is one sample driver, not a promise about yours. Regional insurers can be cheaper still where they operate, so compare at least one regional quote.

Who is usually cheapest for full coverage (comprehensive + collision)?

Full coverage pricing is highly driver- and state-specific. NerdWallet’s October 2026 analysis called Travelers the cheapest large insurer in the country at $138 a month, with State Farm at $165 and Progressive at $190 on the same sample car. Again, that is one 2023 Toyota Camry LE driven 12,000 miles a year—your vehicle’s repair costs and your deductible choice can change the winner entirely.

Are regional insurers really cheaper than national companies?

Often, yes—regional carriers can focus on specific states and risk pools and sometimes beat national brands on price. The tradeoff is availability: you may only be able to buy from them in certain states, and they may sell through agents rather than online.

How often should I shop around for cheaper car insurance?

A good rule is to compare quotes at least once a year (or every renewal) and anytime you have a major life change—moving, adding a driver, changing vehicles, or improving your credit. Insurers change pricing and underwriting appetite frequently.

Do I need to carry full coverage to get the cheapest rate?

Not necessarily. Minimum liability is usually the lowest premium, but it doesn’t cover damage to your own vehicle. If you finance or lease, your lender typically requires comprehensive and collision. If your car is older and paid off, adjusting deductibles or dropping collision may reduce premium—just make sure you can afford the risk.

Do telematics programs (usage-based insurance) really save money?

They can. If you drive fewer miles, avoid hard braking, and keep low-risk driving times, telematics may unlock meaningful discounts with some insurers. But programs vary, so read what data is collected, how scores are calculated, and whether pricing can change at renewal.

What’s the biggest mistake people make when comparing “cheap” quotes?

Comparing different coverage. A quote can look cheaper simply because it has lower liability limits, higher deductibles, or missing add-ons (like uninsured motorist, rental, or roadside). Always match limits and deductibles across companies before picking the “cheapest.”

Sources

Checked October 4, 2026

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