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To select the top companies, we considered customer satisfaction ratings, pricing, coverage, availability of discounts, among other criteria. But remember, the cheapest car insurance for you will depend on your car model, age, gender, driving record, among other factors.
Our top picks for inexpensive car insurance are:
- Erie – Best overall
- Auto Owners – Best for discounts
- Geico – Best for mobile tools and resources
- Amica – Best for customer experience
- American Family – Best for add-on coverages
- Nationwide – Best for drivers with poor credit
- Farmers – Best for antique and classic cars
If you are here to compare rates, we recommend using the quotes tool on this page by simply adding your ZIP code to find the best price available.
Best 7 Cheap Car Insurance Companies: Summed Up
| Company | Minimum Coverage | Full coverage | Reviews.com Score | Best For (Unique Superlative) |
| Erie | $372 | $1,141 | 3.7/5 | Best overall |
| Auto Owners | $398 | $1,308 | 4.2/5 | Best for discounts |
| GEICO | $416 | $1,260 | 4.2/5 | Best for mobile tools and resources |
| Amica | $460 | $1,449 | 4.7/5 | Best for customer experience |
| American Family | $542 | $1,218 | 4.5 | Best for add-on coverages |
| Nationwide | $566 | $1,533 | 3.8/5 | Best for drivers with poor credit |
| Farmers | $587 | $1,540 | 3.8/5 | Best for antique and classic cars |
Data powered by Coverage.com, as of 08/13/2020.
How We Chose the Best Cheap Auto Insurance Companies
We used data compiled by Coverage.com that considered average prices for minimum and full coverage offered by national providers. Besides pricing, we also compared discounts available, customer support, coverage options, customer satisfaction scores, and online resources. With that information, we created a formula to calculate our very own Reviews.com rating.
Since auto insurance rates vary widely among different profiles, we encourage you to shop around and get quotes from several providers to find the cheapest auto insurance for your needs. You can also check our list of the best car insurance companies in 2020.
Erie
Best overall
Erie Car Insurance got the first place for having the cheapest rates for both minimum and full coverage. When you pair the low cost with excellent customer satisfaction ratings and discounts for reduced usage and car safety equipment, among others, you get a solid top choice. Erie has a diminishing deductible option that rewards customers for every year they don’t file a claim, still, the company is known for refusing to renew policies when you file too many claims.
For more details, check out our full review of Erie.
✓ Best For: Customer Satisfaction
✗ Not For: Filing claims online
AM Best score: A+
BBB Score: A+
J.D. Power Score: 3
Pros
- Great customer satisfaction ratings
- Cheapest minimum coverage and full coverage
- You can choose 12-month premium quotes
- No accidents mean a smaller deductible
Cons
- Only available in 15 states
- You can’t file claims online
- Won’t renew policies with excessive claims
Auto Owners
Best for discounts
Auto Owners offers your typical car insurance discounts such as multi-policy, multi-car, safety features and good grades for students. But others, like paperless billing, teen driver monitoring and paid-in-full discounts, are outstanding compared to other auto insurance companies. Auto Owners has a great variety of policy types for bundling with your car insurance, including homeowners, renters, boat and pet insurance. We did not like that the company doesn’t have an online quotes tool or live chat options.
For more details, check out our full review of Auto Owners
✓ Best For: Bundling options
✗ Not For: Online Experience
AM Best score: A++
BBB Score: A+
J.D. Power Score: 3
Pros
- Safe driving discounts and incentives
- Pay your bills and check claim’s status online
- Friendly local agent treatment
Cons
- Only available in 26 states
- No live chat
- No online quotes tools
Geico
Best for mobile tools and resources
Geico offers a great online and mobile experience. Customers can request quotes and file claims through the app or the website. If you prefer to talk to a human, the company also has sales and customer service reps available 24/7 by phone. The downside is that if you prefer face-to-face interactions, finding local agents and making claims could be difficult. We also liked that they have a team focused on military policyholders. Even though Geico has the third cheapest minimum coverage policy, its full coverage is cheaper than the one Auto Owners offer.
For more details, check out our full review of Geico.
✓ Best For: Online experience
✗ Not For: Face-to-face interactions
AM Best score: A++
BBB Score: A+
J.D. Power Score: 3
Pros
- 24/7 customer service
- Specialized team for military policyholders
- Online quotes and claims
Cons
- Local agents are hard to find
- Minimal face-to-face interaction
Amica
Best for customer experience
This auto insurance company got a spot in our list of best cheap auto insurance companies for its top scores in customer satisfaction and coverage options. File a claim online, by email or even phone if you want to speak with representatives willing to help you in the process. Amica’s premium policy is among the highest among our top picks, but keep in mind that this usually means that the deductible in case of an accident would be lower. The provider serves 49 states and Washington DC, but it’s not available in Hawaii.
For more details, check out our full review of Amica.
✓ Best For: Variety of claim options
✗ Not For: Saving money on premium
AM Best score: A+
BBB Score: A+
J.D. Power Score: 5
Pros
- Available in 49 states and Washington DC
- Make a claim online, by email or phone
- Top scores in customer satisfaction and coverage options
- Competitive discounts
H3: Cons
- No coverage in Hawaii
- Higher prices for premium coverage
- High-risk drivers might not get approved
American Family
Best for add-on coverages
American Family features unique add-on coverages such as ride-share, rental reimbursement and emergency road service that make it stand out among its competitors. It also has a good balance of in-person and online resources and support. Another outstanding feature of American Family is that it offers monthly, semi-annual and annual payment options. What we found discouraging was that many customers report inconsistent time for claim payments.
For more details, check out our full review of American Family.
✓ Best For: Multi-terms payments
✗ Not For: Time-sensitive claims
AM Best score: A
BBB Score: A
J.D. Power Score: 3
Pros
- Monthly, semi-annual and annual payment options
- Wide variety of coverages
- Pay online or in-person
- Friendly customer service
Cons
- Only available in 19 states
- No online quote process
- Inconsistent claim payment times
Nationwide
Best for drivers with poor credit
If you don’t have a high credit score, Nationwide is a good option for you. One of the company’s perks is a rewards program for safe driving that promises that your rates will stay the same as long as you keep your eyes on the road. We recommend checking out Nationwide’s pre-packaged coverage options. Keep in mind that the company is not as flexible as others after you submit a claim and we noticed low customer service satisfaction.
For more details, check out our full review of Nationwide.
✓ Best For: Good drivers with bad credit
✗ Not For: Flexibility
AM Best score: A+
BBB Score: A+
J.D Power Score: 3
Pros
- Customizable online quotes tool
- Pre-packaged coverage options
- Great for drivers with poor credit
Cons
- Less flexibility that other companies
- Rates are higher for your teen drivers
- Low customer service satisfaction
Farmers
Best for antique and classic cars
Farmers is the cheapest auto insurance for vintage and collectors cars, along with modified replicas and custom cars. It earned second place for availability in the U.S. as it serves 43 states. The provider offers plenty of discounts, but the downfall is that without deductions, its premiums are higher than our other top picks for cheap car insurance. Farmers’ policies are only available for six-month terms but many customers claim that it’s difficult to cancel their insurance.
For more details, check out our full review of Farmers.
✓ Best For: Unique cars
✗ Not For: Long-term policies
AM Best Score: A
BBB Score: A+
J.D Power Score: 3
Pros
- Lots of discounts available, including safe driving
- Policies for antique and classic cars
- Accident forgiveness
- Available in 43 states
Cons
- Only offers six-month policy terms
- Premiums could get expensive
- Difficulty canceling policies
Top 3 Cheapest States for Car Insurance
The most affordable states for car insurance are Maine, Ohio and Wisconsin. Premiums in these states are about 30% less compared to nationwide averages. To determine their pricing, auto insurance companies analyze trends, including accidents and crime statistics to determine which states have lower risks for drivers.
| State | Full Coverage Average Price | Minimum Coverage Average Price |
| Maine | $831 | $312 |
| Ohio | $998 | $320 |
| Wisconsin | $1,049 | $330 |
Data powered by Coverage.com, as of 08/13/2020.
Guide to the Best Cheap Auto Insurance Companies
Fact: Since Covid-19 started, people are driving less, resulting in 72% decline in car travel in the United States. So, it’s not a surprise that many drivers are looking to reduce their car insurance costs. Even if things have changed during this pandemic and some companies are offering small rebates and better prices, keep in mind that auto insurance premiums will always vary by many factors, including where you live, your age, driving history, and even the car you drive.
The average premiums we used to select the best cheap auto insurance companies will probably be different from what you end up paying for your policy, but they are an excellent place to start looking for the one that fits your needs and your budget.
How to Choose the Best Auto Insurance?
The best auto insurance for you offers the coverage you need for a price you can afford. Sometimes getting the cheapest car insurance is a matter of tapping into exclusive discounts, switching providers after your term is done or bundling with your other policies, such as homeowners, renters or pets.
Take a look at these tips to help you choose the right auto insurance based on your needs.
- Determine the amount of coverage you need
If you already have health, life, and disability insurance, your state’s required minimum coverage could do for you, mainly if it covers an amount equal to the value of your assets. But that probably will not be enough coverage if you have an accident that causes damage to other people. The best practice here is to get liability coverage for property damage and bodily injuries for at least $100,000 or the highest amount you can afford.
- Consider your state’s minimum requirements
Before choosing a car insurance policy, you should check your state’s car insurance requirements. The minimum requirements for car insurance are on a state-by-state basis. Some examples of minimum requirements are liability coverage for property damage and bodily injury or death, as well as uninsured and underinsured motorist coverage.
- Look for discounts
To attract more customers, auto insurance companies offer discounts for a variety of reasons. Some examples include discounts for students who get good grades, good drivers, multi-vehicles, homeowners and car insurance with the same company, and even paying your bill online.
- Compare quotes
You can get quotes online or from an agent; either way, you need to answer the questions thoroughly. Insurance companies use the information you provide to determine how risky would be to insure you and give you an estimate of how much would cost your premium based on it. A best practice is to get quotes from at least 3 different providers. Make sure that the coverage is comparable since the cheapest quote might be leaving something important out..
- How much you drive
Longer commutes or driving around a lot might flag you as higher risk for insurance companies and translate into a more expensive premium. Most online quotes tools will ask for the number of miles that will take you to go from your home to your work, so having this information could help you save money.
You can get more tips and tricks in our guide for car insurance buyers.
Frequently Asked Questions
About the Authors
Nina Rodríguez-Quirós is a feature writer for Reviews.com. Over the last year, she has covered insurance providers, claims handling, coverage and more. She has been featured in Allconnect.com and holds a Master’s Degree in Theory and Research of Communications from the University of Puerto Rico. Her favorite review is Millennials and Auto Insurance.
