Best Cheap Car Insurance [2025]: Where to Look, What to Know

As the cost of everything, including car insurance, continues to rise, it makes sense to revisit your current insurance policy and see whether there are cheaper options out there.

Ultimately, you'll need to get a policy that complies with your state's requirements, but it's possible to get a good deal if you shop around. Rates will vary widely based on your driving record, age, location, and other factors, but some companies will be better for some drivers than others.

For example, if you have poor credit, we recommend looking to GEICO for the cheapest premiums, while Allstate offers some of the cheapest rates out there for new drivers. To get the cheapest car insurance premiums, though, work on keeping a clean driving record and consider bundling policies.

How we evaluate products

In determining our ranking of the best cheap car insurance companies, we looked at popular companies and ranked them according to a series of weighted factors that we consider critical to the consumer. We did not evaluate all companies in the category.

FinanceBuzz ranking criteria include:

• Premium: Companies with lower car insurance premiums scored higher than companies with higher premiums.
• NAIC complaint index score: This score is correlated with customer satisfaction. It measures total complaints to state regulators relative to total policies issued.
• AM Best rating: AM Best is an independent credit rating company that measures the financial stability of insurance companies. AM Best calculates financial strength ratings for companies based on creditworthiness and ability to pay customer claims and other debts in a timely fashion.
• J.D. Power claims satisfaction ranking: J.D. Power is an independent rating company that collects data on customer service satisfaction.
• Ease of use: How simple the claims and application processes are.
• Customer service options: Whether they offered online access, a mobile app, chat, or other options for getting in touch.

Best cheap car insurance companies

• GEICO: Best for poor credit
• State Farm: Best for drivers who've been in an accident
• Nationwide: Best for low mileage drivers
• Travelers: Best for electric car drivers
• Progressive: Best for drivers with a DUI in their history
• Allstate: Best for new drivers
• Auto-Owners: Best for minimum coverage

Compare the best cheap car insurance companies

Company	Best for	Average annual premium — full coverage car insurance	Average annual premium — minimum coverage car insurance
GEICO	Poor credit	$1,204	$579
State Farm	Drivers who've been in an accident	$1,362	$532
Nationwide	Low mileage drivers	$1,417	$742
Travelers	Electric car drivers	$1,414	$672
Progressive	Drivers with a DUI	$1,311	$740
Allstate	New drivers	$2,252	$735
Auto-Owners	Minimum coverage	$1,914	$384

GEICO

GEICO offers affordable rates for standard coverage options. Those with poor credit may find a better price here than with Geico's competitors.

Although GEICO offers the standard coverage required by most states, it doesn't offer many additional coverage options like rideshare insurance, for example.

GEICO also doesn't have an extensive network of insurance agents — our search revealed about one agent per big city per state — which makes developing a relationship with an agent more difficult in some areas. Something for those who like a more hands-on insurance experience to consider.

GEICO claims that new customers report saving more than $700 annually after switching to a GEICO policy, but your mileage may vary. According to insurance comparison marketplace The Zebra, GEICO customers with poor credit pay an average of $181 per month.

GEICO rated just below average on overall customer satisfaction in J.D. Power's 2024 U.S. Auto Claims Satisfaction Study, scoring 692 to the study average's 697.

Read our full GEICO review.

State Farm

State Farm has a significant national presence and a massive network of insurance agents to help you customize a policy that fits your needs. It may offer better pricing than its competitors to customers with an accident history.

State Farm is one of the most well-known insurance companies in the country and has been in business for more than 100 years. It has more than 19,000 insurance agents and more than 53,000 employees.

According to The Zebra, customers insured by State Farm who have two violations on their driving record pay an average of $1,569 annually, while Allstate, GEICO, Nationwide, and Progressive customers with just one violation pay more than $2,000 annually on average.

State Farm scored above average on overall customer satisfaction in J.D. Power's 2024 U.S. Auto Claims Satisfaction Study. The company is not currently offering new policies in Massachusetts or Rhode Island and may charge higher rates to those with poor credit.

Read our full State Farm auto insurance review.

Nationwide

Nationwide offers a good deal for people who drive less than average and offers two pay-per-mile programs. It also offers attractive loyalty perks such as pet coverage and lost key replacement, though restrictions apply.

Nationwide's SmartMiles program uses a small telemetrics device connected to your car to track how many miles you drive each month. Your monthly fee is determined by combining a flat fee and a per-mile charge. If you work from home or drive less than the average person, this could help you save money on car insurance.

Note that SmartMiles is not available in Alaska, Hawaii, Louisiana, North Carolina, New York, or Oklahoma.

Its other usage-based program is called SmartRide. It tracks miles driven, hard breaking, fast acceleration, and nighttime driving between midnight and 5 a.m., during which time there is a higher risk of accidents. Nationwide claims that this app-based program can get safe drivers discounts of up to 40%.

Nationwide scored above average on overall customer satisfaction in J.D. Power's 2024 U.S. Auto Claims Satisfaction Study.

Read our full Nationwide auto insurance review.

Travelers

Travelers offers multiple coverage types and policy discounts, including some unconventional ones, such as discounts for electric car drivers. It may offer the lowest rates to seniors based on their driving record and where they live.

Travelers insurance offers multiple insurance options and even offers some policies that other companies don't, such as gap insurance and named non-owner insurance for those who frequently rent cars or drive a work vehicle for both business and personal use. It does offer rideshare insurance, but only to those living in Colorado and Illinois.

Travelers has various discounts, such as being a safe driver, driving a newer car with safety features, or paying your premium in full ahead of time. However, Travelers also had the second-lowest customer satisfaction ranking on our list and scored just 684 — below the national average of 697— in J.D. Power's 2024 U.S. Auto Claims Satisfaction Study.

Read our full Travelers auto insurance review.

Progressive

Progressive may offer lower rates if you have a history of DUIs.

Of the brands we listed here, Progressive had the lowest customer satisfaction ranking on J.D. Power's 2024 U.S. Auto Claims Satisfaction Study: 672 against the study average of 697.

Progressive generally has slightly higher rates than its competitors, but customers may find a good deal with the company if they've had a DUI or a history of accidents. Progressive even claims that other insurers often refer customers with DUI records to Progressive.

It offers the standard auto insurance coverages but also has some additional perks, such as free coverage for pet injuries if you have collision coverage through them.

Progressive offers additional coverages like loan or lease payoff, rental car reimbursement, rideshare coverage, and custom parts or equipment coverage. It offers a deductible savings bank, which takes $50 off your comprehensive and collision deductible for every claims-free period of six months.

It offers discounts similar to most of its competitors. Its telemetric program, called Snapshot, requires you to download a mobile app or install a small device in your vehicle to monitor your driving habits. If your monthly driving score qualifies, you may receive an additional discount. Be careful, though, because depending on your driving habits, you may see your bill increase when using the device.

Read our full Progressive auto insurance review.

Allstate

Allstate has coverage available in all 50 states and multiple agents available to assist customers. Newer drivers can get discounted rates through Allstate by completing the teenSMART driver education program.

Allstate is one of the biggest insurance companies in the country and has an extensive network of agents. Although Allstate has better rates than some competitors for young drivers, its overall rates may be higher than the national average.

Allstate offers standard insurance coverages and additional features such as a safe driving bonus, accident forgiveness, and a new car discount. It also offers multiple other discounts, including those offered through its Drivewise program, which measures your safe driving habits using a telemetrics box installed in your car, and good student discounts based on your GPA.

Allstate scored below average on the 2024 J.D. Power's 2024 U.S. Auto Claims Satisfaction Study, earning 691 out of 1,000 — ahead of Travelers and Progressive, but just behind GEICO.

Read our full Allstate auto insurance review.

Auto-Owners

Auto-Owners may offer the lowest minimum coverage rate available and has a good selection of auto coverages to meet its customers' needs, though it is only available in 26 states.

Auto-Owners insurance is a mutual company that provides auto, home, life, and business insurance through a network of enrolled agents.

The company offers standard policies but also has diminished value insurance, which could help you recoup some of the value of your vehicle after an accident. It also offers a Plus Package, which bundles more than 10 policies and provides bonuses like rekeying locks and identity theft protection.

Auto-Owners has an A++ rating from AM Best, an insurance rating authority, but scored a below-average rating of 692 2024 J.D. Power's 2024 U.S. Auto Claims Satisfaction Study.

Read our full Auto-Owners insurance review.

FAQs

Ask the experts

Finding car insurance that fits your budget while providing the coverage you need is essential. That's why we asked a panel of experts to weigh in. See what they had to say:

How often should you be switching to a different policy to find potential savings?

How does your credit score impact your car insurance premium?

Editor's Note: The quotes above reflect the expert's opinion and should only be considered with your own situation. Not all advice will fit with your circumstances, but these are included to give a wider picture for our readers. Some quotes have been edited by our editorial team for brevity and grammar.

Bottom line

Searching for the best cheap auto insurance can take a lot of time and effort. Request multiple quotes to ensure you're getting the cheapest car insurance rates available based on your specific needs and your state's requirements. Don't be afraid to shop around to find the best rates and coverage for you.