In the United States, major 2025 market studies place the average cost of a typical full-coverage policy in the mid-$2,000s per year (roughly $190–$260 per month), with exact figures varying by source, driver profile, coverage limits and state mix. Although car insurance rates can be expensive, many companies offer affordable car insurance rates. We did some research to help you find the cheapest car insurance companies.

To evaluate these providers, we looked at average rates, but also paid attention to each company’s coverage options and discounts and finished with a review of financial strength scores and customer satisfaction ratings. The five companies on our list checked the box in each of these categories. Based on our 2025 review, the best cheap auto insurance companies remain Erie, American Family, Geico, Auto-Owners, and USAA (eligibility required for USAA).

The 5 Best Cheap Car Insurance Companies

• Erie: Best for add-on coverage
• American Family: Best for young driver discounts
• Geico: Best for affordable policies
• Auto-Owners: Best for claims satisfaction
• USAA: Best for military-centric options

*Data provided by Bankrate.com

**J.D. Power 2025 U.S. Auto Insurance Study, based on a 1,000-point scale. We calculated an average of combined regional scores. USAA is not officially rated due to eligibility restrictions.

*Data provided by Bankrate.com

**J.D. Power 2025 U.S. Auto Insurance Study, based on a 1,000-point scale. We calculated an average of combined regional scores.

The 3 Cheapest Car Insurance Companies

Based on current 2025 market analyses, the companies most often returning the lowest quotes for good drivers are State Farm, GEICO and USAA (eligibility required). However, regional carriers like Erie, Auto-Owners and NJM can be even cheaper where available. Car insurance rates vary based on your personal rating factors, including the state you live in, your driving history, and what type of vehicle you drive. While these figures can help you benchmark against a national full-coverage average in the mid-$2,000s, your quoted price will likely differ from the average.

*Premium benchmarks reflect 2025 national studies from Bankrate, NerdWallet, The Zebra and Insurify; actual company averages vary by profile and state.

How to Choose the Best Cheap Auto Insurance?

Finding a cheap auto insurance company is often the first step when looking for affordable coverage, but there are other things to consider when shopping for coverage. Understanding these steps could help you find a car insurance policy that fits your unique situation as well as your budget.

• Consider a company’s discounts: Almost every insurance company offers discounts that could lower your premium. Choosing an insurance provider that has multiple savings opportunities (multi-policy, safe driver, vehicle safety, paperless/autopay) and a modern telematics or pay-per-mile program could help you keep your premium down.
• Review financial strength scores: A company’s financial strength is indicative of its ability to pay you after a covered loss. Looking for insurance companies with good financial strength ratings from AM Best, S&P, and Moody’s — and verifying the current rating and outlook directly with each agency — might help you feel more confident in a company’s ability to pay claims.
• Analyze customer reviews: Get a sense of what customers think of the company. The NAIC Complaint Index shows the company’s complaint rating, and recent J.D. Power studies can indicate current satisfaction levels.
• Think about endorsements: Basic car insurance policies don’t cover everything, but endorsements can help you tailor your coverage to your needs. For example, if you travel often, you may want to consider adding roadside assistance coverage.
• Shop around: One of the best ways to find cheap car insurance is to get a few car insurance quotes from different companies. Comparing rates side-by-side — including at least one telematics quote — allows you to determine which company can offer you the best price for the coverage you need.

How to Lower your Car Insurance Rates

The first step to lowering your car insurance rates is often to shop around to several different companies. Each company uses its own rating system, which means that rates can vary widely. In addition to choosing a company with cheap rates, you could also take advantage of as many discounts as possible. If you also have a home, condo, or renters insurance policy, bundling your coverage with your car insurance is often one of the biggest discounts. You may also save by opting into a usage-based/telematics program if you drive safely or below-average miles.

Avoiding accidents and tickets can also be an effective tactic to avoid rate increases. Since these incidents make you appear more high-risk to an insurance company, maintaining a clean driving record could help you avoid surcharges. Additionally, most states allow your credit tier to be used as a rating factor — but four states (California, Hawaii, Massachusetts and Michigan) prohibit credit-based pricing for auto. Where permitted, drivers with poor credit often pay substantially more than those with good or excellent credit, so improving or maintaining your credit score might help you avoid unexpected increases in your premium.

Frequently Asked Questions

Methodology

Reviews.com reviews products, services, and companies based on five criteria to help readers understand how companies compare based on similar metrics. For the best car insurance companies, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores, and online resources from each company to determine top providers. 

As for average pricing, we reference current 2025 national benchmarks from multiple sources (including Bankrate, NerdWallet, The Zebra and Insurify) that model good-driver profiles; one common approach assumes a 35–40-year-old driver with a clean record and standard full-coverage limits. For full coverage, the details used were the following:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, we reference each state’s minimum coverage requirements. Our base profile drivers own a late-model Toyota Camry, commute five days a week and drive 12,000 miles annually. 

These are sample rates and should only be used for comparative purposes.

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