What Are the Cheapest Auto Insurance Companies for 2023?
Last Updated on February 22, 2023
Switching to a new auto insurance company could save you more than $400 per year. Today, some auto insurance companies offer affordable premiums and strong coverage, while other auto insurance companies charge unusually high premiums compared to competitors.
We want to help you save money on car insurance. Today, we’re highlighting the cheapest car insurance companies in the United States. These companies have a proven reputation for charging affordable premiums while maintaining strong ratings for customer service and claims satisfaction.
According to our research, here are the top 20 cheapest auto insurance companies:
- American Family
- State Farm
- Liberty Mutual
- The Hanover
- The Hartford
Allstate is well known in the American auto insurance market. It tops the list for affordable insurers. It has rock-bottom prices in many big areas. You could save hundreds of dollars annually with Allstate, which is not just marketing talk. You might have heard that line in an Allstate commercial, but that does not mean it is not true. In addition to being the cheapest, Allstate offers every possible coverage option imaginable. Even though Allstate is not the best company for discounts, it still has plenty of them. Still, discounts are not as important when the annual price is so low.
Furthermore, people expect easy policy management and a clean, clear online interface. The site has excellent learning materials, and all of the knowledge offered can help drivers save money – definitely after an accident. One more reason to choose Allstate is that the company is extremely financially stable. Not only does Allstate have good financial health, but it is also more than able to pay out claims in a timely fashion.
Allstate Contact Info
|Company Address||2775 Sanders Road
Northbrook, IL 60062
We have all seen those Progressive commercials. Who can forget them? They appeal to a young audience that does not have that much money to spend on car insurance. Progressive is a close second to Allstate as far as how cheap their car insurance is. In many areas, Progressive was a lot less pricey than Allstate. Progressive quotes were often over $500 cheaper annually, compared to other big auto insurers in big cities. Those people who put a high value on vehicle discounts and driver discounts will certainly want to choose Progressive because they are industry leaders in both areas. Progressive also has an excellent policy and claims management, and top-notch policy coverage. The one category where the company falls just a little short is vehicle coverage, but it is extremely hard to find any big issues.
Progressive Contact Info
|Company Address||6300 Wilson Mills Road
Mayfield Village, OH 44143
3. Farmers Insurance
Even though Farmers Insurance did have less expensive price quotes than the aforementioned companies in some areas, it did have quotes that were higher in most of the locations tested. Farmers Insurance, for example, had a very high price quote in the Chicago area compared to GEICO, Allstate, and Progressive. Still, they were nearly the same in some cities located in California.
Farmers Insurance is one of the top insurers for inexpensive car insurance. Its rates are on the low end of the price range, and they offer nearly every vehicle discount (i.e., safety feature discounts and security system discounts). Farmers Insurance is somewhat lacking in driver discounts (i.e., good driver and good grade discounts), however, but they make up for it with excellent policy management and claims processing. Suppose Farmers Insurance did offer more driver discounts and had a very consistent car insurance quote process. In that case, it is certainly possible that they could go toe-to-toe with the cheap policies offered by the aforementioned companies, but Farmers Insurance is a bit behind for now.
Farmers Contact Info
|Company Address||4680 Wilshire Blvd
Los Angeles, CA 90010
4. Nationwide Insurance
For more than 80 years Nationwide Insurance has been helping drivers get the cheapest car insurance. It is one of the biggest and strongest car insurance companies. You really cannot say that about most of the other cheap car insurance companies. Nationwide Insurance offers fast, custom quotes. Whether over the phone, online, or in person, they will quickly devise a car insurance quote that meets your needs. This company also offers flexible billing options. You can pay by month, quarter, or year. You can pay over the phone, online, or by mail. There are a lot of free extras at Nationwide Insurance. For example, there is a 24-hour claims service, an 800 number where you can talk to a real person, and a special feature that will let you keep track of your covered auto repair over the Internet.
Nationwide Contact Info
|Company Address||One Nationwide Plaza
Columbus, OH 43215
Esurance is the next best thing to Nationwide Insurance. Allstate owns Esurance. It is an extremely easy-to-use website, and the typography, layout, and color scheme make it easy for even the most novice Internet user to figure out how to sign up for car insurance online. Esurance offers car, motorcycle, renters, and homeowners insurance. It offers fast service, fast claims processing, and guaranteed financial strength. Esurance is the best option for people who do not want the hassle of other traditional car insurance companies. It is easier to use than most other insurance companies’ websites.
Esurance Contact Info
|Company Address||650 Davis St
San Francisco, CA 94111
GEICO is famous for its slogan, “15 minutes could save you 15% or more on car insurance.” There’s a good reason for GEICO’s slogan! They’re one of the country’s cheapest car insurance companies. If you’re shopping for cheap car insurance, GEICO is one of your best options. GEICO is a nationwide car insurance company. They’re available everywhere in the United States. Plus, they offer a diverse selection of auto insurance products. GEICO also makes cheap car insurance even cheaper by offering discounts for drivers over 50, drivers in the military, students, and federal employees. The reason GEICO offers cheaper rates for federal employees is simple: GEICO stands for “Government Employees Insurance Company.” The company originally targeted car insurance exclusively for employees of the US government. Today, discounts are available to active or retired federal government employees.
GEICO Contact Info
|Company Address||5260 Western Avenue
Chevy Chase, MD 20815
USAA has always been one of the cheapest auto insurance providers in the United States. USAA offers some of the best banking and insurance products in the country. There’s one big catch: you need a close family member who is active or retired US military. If you’re active or retired US military, or if a sibling, parent, or grandparent is or was in the military, you may qualify for USAA. USAA offers particularly competitive prices on cheap car insurance plans. The basic liability plans from USAA, for example, include features like accident forgiveness, rental reimbursement, and global protection. Further discounts are available for safe drivers (you need to maintain a good driving record for five years), defensive drivers (drivers who have taken a course), and good students, among others.
USAA Contact Info
|Company Address||9800 Fredericksburg Road
San Antonio, TX 78288
Allied is a popular nationwide car insurance company that offers a variety of insurance products. You can get auto insurance through Allied. You can also get home insurance, business insurance, farm/ranch insurance, and more. Allied is known for offering customized insurance coverage at an affordable price. You can put together a package with Allied insurance, then pay for exactly what you’re using. Several Allied discounts help you pay even cheaper prices for car insurance. You get a discount when buying multiple policies through Allied, for example. There are also multi-vehicle discounts, new vehicle discounts, accident-free discounts, good student discounts, and more. Another advantage of getting cheap car insurance with Allied is the 12-month rate lock. If you insure both your car and home with Allied, then your rate is locked for 12 months. Most insurance companies only lock your rate for six months.
Allied Insurance Contact Info
|Company Address||1100 Locust Street
Des Moines, IA, 50391
9. Erie Insurance
Erie is particularly common in the Midwest and the Northeast. It’s not available in all 50 states. In states where Erie is available, however, it’s among the cheapest auto insurance providers in the region. Erie offers cheap rates on car insurance along with easy online quotes. You can customize your policy with several bonus options. If you want windshield repair but not personal item coverage, for example, you can do that. You can get features similar to comprehensive coverage but without paying the full price for comprehensive coverage. The customizability makes Erie a particularly good option among cheap car insurance providers. Users can also get a multi-policy discount of 14% to 30%, depending on the number of insurance products you bundle together.
Erie Insurance Contact Info
|Company Address||100 Erie Insurance Place
Erie, PA 16530
10. American Family
American Family is another major American insurance company known for its cheap car insurance prices. However, like Erie, they’re not available in all 50 states. American Family is available in about half of the country. Unlike Erie, which focuses on the Midwest, American Family doesn’t specialize in any specific geographic area. In any case, American Family provides affordable rates on basic liability coverage, collision coverage, and comprehensive coverage. Insurance plans can also come with gap coverage, underinsured motorist protection, rental reimbursement coverage, uninsured motorist coverage, emergency road service, and other features.
American Family Contact Info
|Company Address||6000 American Parkway
Madison, WI 53783
11. State Farm
State Farm insures more vehicles in the United States than any other insurer on our list. As America’s largest property and casualty insurer, State Farm has a competitive advantage over many other providers, allowing them to charge cheaper rates without compromising on quality and customer service.
In many states, State Farm is the cheapest auto insurance company available. The company has a proven reputation for charging affordable rates to drivers of all ages. Regardless of what car you drive, where you live, or your driving history, you could pay cheaper rates with State Farm than you would with many other insurers on our list.
State Farm Contact Info
|Company Address||1 State Farm Plaza
Bloomington, IL 61701
12. Liberty Mutual
Liberty Mutual is one of the top ten largest insurance companies in the United States, and the company has a longstanding reputation for charging affordable premiums while remaining competitive with other top providers on our list.
Today, Liberty Mutual has average scores for claims satisfaction and customer service. However, many like Liberty Mutual because they can get the necessary coverage. Liberty Mutual’s television ads explain that the company makes it easy to “only pay for what you need.” By customizing your car insurance with Liberty Mutual, you could save hundreds per year by trimming away coverage you’ll never use.
Liberty Mutual Contact Info
|Company Address||75 Berkeley Street
Boston, MA 02116
Travelers is one of America’s oldest insurance companies, and the company has over a century of experience providing affordable car insurance across the country. Today, approximately 2% of vehicles on America’s roads are insured with Travelers. Travelers policyholders enjoy affordable coverage in all 50 states.
Travelers is the cheapest option for some drivers but not others. Depending on your age, driving history, and state, you could find Travelers’ premiums to be very affordable – or much more expensive – compared to competing providers. Request a quote to see how they compare for your unique situation.
Travelers Contact Info
|Company Address||485 Lexington Ave 10th Fl
New York, NY 10017
14. Auto-Owners Insurance
Auto-Owners Insurance is one of the few companies on this list still organized as a mutual insurance company. In a mutual insurance company, policyholders own the company. Today, the Michigan-based company offers competitively-priced coverage in 26 states while being one of the top 20 largest insurers in the country.
If you live in a state where Auto-Owners Insurance is available, then the company may be the cheapest option for your unique needs. Many are surprised how affordable a mutual insurance company’s rates can be, and Auto-Owners Insurance has a strong reputation for claims satisfaction, pricing, and overall value.
Auto-Owners Contact Info
|Company Address|| 6101 Anacapri Blvd.
Lansing MI, 48917
Mercury Insurance is a Los Angeles-headquartered company founded in 1961, making it one of our list’s youngest car insurance companies. Today, Mercury has grown to become one of America’s largest insurance companies despite only serving 11 states (including Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia).
Today, Mercury may be the most affordable option for drivers in covered states. By focusing on large population centers and metro areas, Mercury may be able to beat nationwide competitors covering larger geographic areas.
Mercury Insurance Contact Info
|Company Address||4484 Wilshire Blvd
Los Angeles, CA 90010
Kemper offers affordable auto, home, and life insurance. Although not as large or well-known as other top-ranked insurers on our list, Kemper may be one of the cheapest options for your unique needs. Some drivers find Kemper is the most affordable option, although other drivers find them relatively expensive.
Affordability is part of Kemper’s company mission. The company was founded with the goal of offering flexible policies and comprehensive coverage options, making it easy for drivers to pick the coverage they need – similar to how Liberty Mutual works. Kemper may also be the right choice for drivers who only have state IDs or international licenses, and the company is popular among certain immigrant groups in the United States.
Kemper Contact Info
|Company Address||12926 Gran Bay Parkway West
Jacksonville, FL, 32258
According to J.D. Power’s annual insurance company ratings, Shelter is one of the top-rated companies on this list. The company has a consistent reputation for strong customer service and claims satisfaction – all while offering some of the most affordable premiums available.
Shelter separates itself from competitors by focusing on providing good coverage to a small number of states. The company also makes its insurance policies easy to understand, separating its coverage into standard and preferred plans according to the type of coverage you need. Today, Shelter continues to expand, and the Missouri-based company offers cheap car insurance in 15 states – including Arkansas, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Nevada, Ohio, Oklahoma, and Tennessee.
Shelter Contact Info
|Company Address||1817 W. Broadway
Columbia, MO 65218
18. The Hanover
Based in Massachusetts, The Hanover is consistently one of the best and most affordable car insurance companies in the United States. The Hanover is also one of the country’s oldest continuously operating industries overall, with a history dating all the way back to 1852. With 170+ years of experience selling various types of insurance, The Hanover continues to offer affordably-priced premiums today.
The Hanover scores top marks for claims satisfaction from industry organizations like J.D. Power. That means you can get affordable car insurance without compromising on coverage. For many drivers in the company’s 26 covered states, The Hanover is the best and most affordable option.
The Hanover Contact Info
|Company Address||440 Lincoln St
Worcester, MA 01653
|Phone Number||1 (800) 922-8427|
19. The Hartford
Like Erie, The Hanover, and other top-ranked providers on our list, The Hartford is known for offering competitively-priced car insurance without disappointing customers with poor claim payouts.
Based in Connecticut and founded in 1810, The Hartford has over two centuries of experience selling property insurance to Americans. Today, The Hartford uses a network of agents across the country to sell affordable car insurance premiums suited to your unique needs. As one of the country’s largest property and casualty insurers, The Hartford is everything you want in an affordable car insurance provider.
The Hartford Contact Info
|Company Address||One Tower Square
Hartford, CT 06183
Amica Mutual Insurance was founded in 1907 in Providence, Rhode Island. In the early 1900s, the company made history for being one of the first to sell an auto insurance policy in the United States.
Today, Amica Mutual has grown to a network of 3,200+ agents across the United States, and it scores top marks for customer service and claims satisfaction. Amica Mutual may not have the rock-bottom lowest prices of other insurers on our list, but the company is known for competitive prices and fair service, making it one of the best choices for those looking for unbeatable prices on car insurance premiums.
Amica Mutual Contact Info
|Company Address||100 Amica Way
Lincoln, RI 02865
How To Get Quotes From Different Auto Insurance Companies
Insurance Panda offers auto insurance quotes from many different auto insurance companies. To see how much your premiums with each one will cost, fill out our short quote form at the top of this page. After a few simple steps, you will compare insurance rates from the cheapest auto insurance providers in the United States.