The 5 Best And Cheapest Auto Insurance Providers (2021)

Everyone wants to save money. One way to do this is to shop for the cheapest auto insurance. Still, there are numerous factors to consider when looking for affordable car insurance. We have evaluated the top providers to not only help you find the most affordable auto insurance plans but to steer you toward companies that offer exceptional coverage and customer service.

If you're wondering who has the cheapest car insurance, we discovered USAA, Erie Insurance, Root Insurance, Geico, and State Farm offer competitive prices. Let’s dive deeper into the average rates and coverage options to help you find a provider that fits your needs.

Whenever you shop for cheap car insurance, we recommend getting quotes from multiple providers so you can compare coverage and rates. In addition to the insurance company you choose, factors such as your age, vehicle, and driving history can affect your premium, so what’s best for your neighbor might not be best for you.

Use our tool below to start comparing personalized auto insurance quotes.

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Best Cheap Car Insurance Providers

In our study into the cheapest auto insurance companies, we found several companies that provide low rates. While there are several car insurance companies that provide cheap auto insurance, we are going to focus our attention on five. These five have the lowest rates for minimum car insurance coverage, as well as full coverage with no other factors involved. In our review, however, we won’t focus solely on insurance price, we’ll also evaluate the customer service, ease of filing a claim, and company reputation.

Here are the top five providers of cheap car insurance in the U.S.:

#1 USAA Auto Insurance: Best For Military

Not only does USAA provide some of the cheapest liability insurance, but it also offers full coverage. According to our rate estimates, USAA costs about $990 per year for the average 35-year-old driver.

The organization also made it to the top of our other charts. The only trouble with USAA is that not everyone will qualify for coverage. In fact, USAA is designed to cover only military members, veterans, and their families.

Aside from that, USAA also provides further perks, such as roadside assistance, accident forgiveness, rental car coverage, and car replacement assistance (CRA). USAA also providers other types of insurance, including life insurance, homeowners/renters insurance, health insurance, and more.

We are fond of the USAA Mobile App, which makes filing a claim simple. In addition, the organization is known for its superior customer satisfaction. Throughout our research, we found two studies on auto insurance, both done by J.D. Power. Both the Auto Claims Satisfaction Survey and the 2020 Auto Insurance Study indicate that this provider is among the best.

USAA auto insurance might be right for you if:

• You are part of the military, are a veteran, or a family member
• Want the cheapest auto insurance available

To learn more about this cheap car insurance provider, check out our review of USAA auto insurance.

#2 Erie Auto Insurance: Best For Multi-Car Homes

Another provider that shows up in three out of our four lists is Erie Insurance. This company provides cheap car insurance quotes online and is also known for customer service. The average 35-year-old driver pays about $1,183 per year according to our rate estimates. The downside with Erie Insurance is that the coverage isn’t available in every state. You can only get an auto insurance policy if you live in these regions.

Looking at the Better Business Bureau (BBB) ratings for Erie Insurance, you also see that this provider has an A+ score. Furthermore, Auto Claims Satisfaction Survey and the 2019 Auto Insurance Study suggest that this company is a leader wherever coverage is sold.

Erie Insurance might be right for you if:

• You live in a covered state
• You have had an at-fault accident
• Your credit score is excellent

To learn more about this cheap auto insurance provider, check out our review of Erie auto insurance.

#3 Root Insurance: Best Usage-Based Insurance

Root Insurance is a little different from other insurance providers. Instead of basing your auto insurance premium mainly on your driving record, it weighs your driving behavior first. That means that in order to get a quote from Root Insurance, your driving behavior first has to be recorded through the Root mobile app, which can take a couple of weeks.

Since Root provides coverage only to good drivers, it pays out less often, which makes it one of the cheapest auto insurance providers. However, that means Root can deny coverage if you aren’t the best driver. 

Root Insurance provides all of the standards types of coverage. On top of that, every plan comes with roadside assistance already included.

Root might be for you if:

• You are a good driver
• Prefer doing everything through a mobile app

To learn more about this cheap car insurance provider, check out our review of Root auto insurance.

#4 Geico Auto Insurance: Best For Good Drivers

Geico isn’t just well-known because of its commercials, but also one of the cheapest auto insurance providers you can choose. According to our rate estimates, Geico costs about $1,356 per year for the average 35-year-old.

While Geico might not be the best choice for someone with a spotty record, safe drivers find a lot of benefits to using the provider. Some additional perks offered by Geico include roadside assistance, ridesharing insurance, and mechanical breakdown coverage.

In addition, the company has an A+ rating from the BBB, plus it scored highly on the 2020 Auto Insurance Study and Auto Claims Satisfaction Survey. When you use the organization’s website, you will also find that the quote process is simple and you can track claims with ease. You can find a variety of plans covering property damage liability, bodily injury liability, as well as comprehensive plans. No matter what type of coverage you opt for, you are likely to get one of the lowest rates through Geico.

Geico might be for you if:

• You want to customize coverage
• You don’t have infractions on your driving record

To learn more about this cheap auto insurance provider, check out our review of Geico auto insurance.

#5 State Farm Auto Insurance: Best For Students

State Farm is another one of the cheapest auto insurance company options and well suited for students and teen drivers. According to our rate estimates, the average 35-year-old pays about $1,312 for State Farm annually. Furthermore, the company boasts an A+ rating from the BBB.

The company also offers Drive Safe & Save Discounts to help you keep more money in your pocket. By participating in the program, you can save up to 30 percent. The program is simple to use and can be performed from OnStar or your smartphone.

In addition, State Farm is a provider that shows up on both the Auto Claims Satisfaction Survey and the 2020 Auto Insurance Study, although some regions rank it slightly lower than others

State Farm might be a good fit for you if:

• You want to participate in the safe driving program
• You have poor credit
• You are an inexperienced driver
• Your driving record shows an accident

To learn more about this cheap car insurance provider, check out our review of State Farm auto insurance.

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What Determines The Cost Of Car Insurance?

The Insurance Information Institute (III) details all of the factors that go into determining your rates. While a few of these seem obvious, it might come as a shock to see a couple of them.

Average Car Insurance Prices By State

As we mentioned above, location plays a role in insurance costs. Some states are more expensive than others for a variety of reasons. Here are the most expensive and least expensive states for auto insurance, according to the III: 

How To Get Cheap Car Insurance

If you have speeding tickets or accidents on your record, or you suffer from poor credit, you might need to pay a higher insurance premium. Still, there are some ways to save money on your insurance premiums, according to the III.

• Consider what car you buy: Before you buy a car, get a quote on insurance. You might be surprised at what models raise your rates.
• Increase deductibles: If you have some money in your savings, you can increase the deductible to lower the premium.
• Maintain a good credit score: This is an automatic way to get bigger savings.
• Ask about the discounts: You might find a lower rate for safe driving, bundling your car insurance policies, or taking a defensive driving course.
• Look for low-income car insurance: Some states have government-sponsored programs that help families without money afford car insurance. While not everyone qualifies, it might be something to look into if you are struggling to make ends meet.

The main key to finding cheap auto insurance is knowing how to shop. Because of the many factors that are unique to you, what might be considered low-cost car insurance for you, may not be the same for the next person. 

• Shop: Don’t just go with the first company you land on; shop around. Each insurance company will often have its own car insurance discounts and rates.
• Don’t assume one company is the best: Just because you see a lot of commercials for an insurance agency, doesn’t make them the cheapest provider for auto insurance. Do your own research to determine who deserves your business.
• Check local insurers: While many of the big companies can provide low insurance costs, you don’t want to neglect the local companies too. Call a local broker to see what’s offered in your area.
• Consider pay-per-mile or usage-based insurance: If you don’t drive a lot, you might be better off using a specialized program. There are many options, such as Allstate’s Drivewise or State Farm’s Drive Safe & Save. These let the insurer track how many miles you drive and how well you do on the road in exchange for a discount.

With a little work and some patience, you will find the auto insurers with the best car insurance rates for your situation. For more tips, check out our article on how to get cheap car insurance.

Cost Isn’t Everything

While we all want to save money, we have to remember that the cost of auto insurance isn’t the only factor to consider. After all, if you decide to go strictly with state minimum coverage and you cause an accident, you might be liable for the additional damages out of pocket. This expense is something to consider when trying to save a dollar on coverage long term. Sometimes, more is better.

When choosing an auto insurance provider, you can’t strictly assess your options based on affordable auto insurance prices. You might get the lowest rate but have a company that drags its feet when it comes time to pay. In the meantime, you are left without a vehicle and in worse shape than if you had paid more for your auto insurance.

When you do your online comparison shopping between insurance providers, take into account:

• Price
• Customer satisfaction scores
• Reliability ratings
• Financial reputation
• Ease of filing an auto insurance claim.

All of these factors put together will help you to find the provider that fits your needs, and you can save money in the process.

Not every insurer is right for every motorist. We encourage you to collect and compare free car insurance quotes from providers available in your state by entering your zip code in the tool below.

Methodology

In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.

• Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
• Availability: We consider availability by state as well as exclusions for specific groups of drivers.
• Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
• Cost and Discounts: Our research team reviews auto insurance rate estimates generated by Quadrant Information Services for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
• Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
• Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.

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