Your state’s minimum auto insurance requirements are probably the most affordable alternative, therefore we concentrated our analysis on those minimums. This type of auto insurance, known as liability-only coverage, in many states covers other people’s medical expenses and property damage caused by collisions you cause.
The lowest price we could find for the bare minimum of auto insurance was an average of $9 per month, or $108 annually. However, the cost of your auto insurance will vary depending on a number of factors, including your driving record and the state in which you reside.
Here are the most affordable vehicle insurance providers overall, as well as the most affordable choices for different types of drivers:
- State Farm has the cheapest car insurance for safe drivers, with monthly premiums averaging $37.
- Auto-Owners offers midsize insurance at the lowest price, with monthly premiums averaging $28.
- State Farm offers auto insurance after a speeding citation for an average monthly cost of $45 per month.
- After an accident, State Farm offers auto insurance for $50 a month on average.
- After a DUI, State Farm offers the cheapest vehicle insurance with an average monthly premium of $68.
- Geico offers the cheapest vehicle insurance for people with bad credit, costing, on average, $73 per month.
- Check out NerdWallet’s ranking of the best affordable auto insurance providers if you want the best of the cheapest.
How we discovered the lowest businesses
The editorial staff at NerdWallet examined minimum coverage auto insurance quotes from Quadrant Information Services, a provider of pricing analytics. Our study included 35-year-old drivers with various driving and credit histories from all ZIP codes in all 50 states and Washington, D.C. Every motorist was operating a 2020 Toyota Camry L.
Full coverage is an additional choice, but it can run roughly $1,500 more annually than an annual minimum policy. That’s because it includes extra insurance like comprehensive and collision coverage and uninsured/underinsured motorist protection.
State Farm offers the most affordable vehicle insurance rates overall.
According to NerdWallet’s study of 2023 minimum coverage rates for good drivers, State Farm is the least expensive major auto insurance provider in the US. The average annual rate from State Farm was $450, or roughly $37 per month. You may read our State Farm auto insurance review to find out why NerdWallet gave the business a 5-star rating.
Auto-Owners is the midsize automobile insurer with the lowest rates.
You don’t have to stick with big insurance providers in order to find inexpensive auto insurance. Smaller insurers Auto-Owners and Erie, which provide coverage across several states, charge even less for vehicle insurance than State Farm.
While selection may be restricted, midsize insurers may offer auto insurance at a lower cost than bigger ones. A 2022 J.D. Power survey on vehicle insurance shopping also found that clients are frequently happy with these businesses.
We choose these businesses because of their numerous state availability and reasonably affordable pricing. Where you live, though, might offer more reasonable options for auto insurance.
State Farm offers the least expensive auto insurance after a speeding citation.
The cost of your auto insurance will probably go up if you have a speeding citation on your record. Our investigation shows that State Farm offers the most affordable rates following a speeding ticket, with an average annual premium of $545, or $45 monthly.
Cheapest auto insurance following a collision: State Farm
The most economical auto insurance provider differs depending on your driving history. For drivers with a recent accident on their record, the top firms’ typical auto insurance prices are shown in the table below.
According to our data, State Farm has the lowest average rate for drivers involved in one at-fault collision, coming in at $600 annually, or $49 monthly.
Cheapest auto insurance after a DUI: State Farm
The cost of your auto insurance might significantly increase if you have a DUI on your record. State Farm offers the most affordable vehicle insurance after a DUI, with an average cost of $817 annually, or $67 monthly.
Searching for even more affordable car insurance? Look into a smaller insurer. Erie and other midsize insurers offer the most reasonable auto insurance rates for drivers with infractions like one at-fault collision or a recent DUI.
Rates vary based on a variety of customised criteria. To discover the most affordable auto insurance for you, make sure to compare quotes from at least three different providers.
Cheapest car insurance for people with bad credit: Geico
Your premiums may also rise as a result of factors other than your driving record. In order to determine auto insurance prices, several insurers also employ credit-based insurance scores. In many areas, this can make it more difficult to obtain affordable vehicle insurance with bad credit.
The same components of a standard credit score, such as debt and payment history, are included in a credit-based score, but they are weighted differently. Credit scores cannot be used by insurers in California, Hawaii, Massachusetts, or Michigan to calculate auto insurance prices.
Auto insurance premiums can be shockingly impacted by credit. Drivers with bad credit may end up paying, on average, over $400 more year than those with strong credit.
Geico may be a smart place to start if you’re seeking for affordable auto insurance from a major provider. The firm has the lowest average rates for good drivers with bad credit, at $870 a year, or $73 per month, according to our analysis of major insurers.
Cheapest state-specific auto insurance
Depending on where you live and how much insurance costs, there will be differences in what qualifies as affordable vehicle insurance.
For the purpose of comparison, we identified the auto insurance provider that offered the least expensive minimum coverage, on average, in each state and in Washington, D.C.
Finding affordable auto insurance for new drivers
Finding affordable auto insurance may be challenging if you’re a new driver. This is because drivers without recent driving histories are seen as being riskier by vehicle insurers to cover. This group consists of new drivers, motorists whose auto insurance has expired, immigrants, and foreign visitors.
You should shop around and compare policies from a number of firms each year to obtain the best deal on auto insurance. If you live with your family, it can be less expensive to continue being covered by their coverage until your driving record is more established.
How to find affordable auto insurance
It’s crucial to compare prices from several insurers if you want to get the cheapest auto insurance possible in order to save money. The vehicle insurance comparison tool from NerdWallet makes it simple to look for affordable car insurance online. You might discover that you already have the most economical insurance, but keep an eye on costs periodically because they can vary.
These suggestions may enable you to find affordable car insurance:
- Ask for reductions. You may be able to save money by utilising vehicle insurance discounts that you aren’t currently utilising. Perhaps you work from home now and drive less than you did when you first purchased your coverage. You might be eligible for a low-mileage discount if you mention it.
- Reconsider your deductible. If you don’t drive often or feel comfortable taking on financial risk, a larger collision and comprehensive deductible can make sense. You would have to pay more out of pocket if you were to make a comprehensive or collision claim if you increased your deductible. However, it’s a certain method to lower auto insurance.
- When to stop providing coverage. Don’t reduce coverage in the sake of low-cost auto insurance. However, if your vehicle is older, you may be able to go without comprehensive and collision insurance. These types of insurance only provide payouts up to the current worth of your car less the deductible.
- Profit from significant life changes. In order to save money on your auto insurance, compare rates anytime a significant change occurs in your life. For instance, many businesses provide a discounted cost for domestic partners or married couples. Or maybe you relocated to a neighbourhood with fewer accidents and crimes. Shopping around can help you find less expensive coverage, even if you moved to a more expensive location for car insurance.
- Review the quotations when your driving record gets better. After three to five years have passed since any accidents, citations, or traffic offences, compare inexpensive auto insurance quotes online. They might have vanished from your driving history.