Whether you’re buying only liability insurance or a full coverage car insurance policy, the thought of cheap car insurance is enticing. And there’s no better way to find the best deal than by shopping around and comparing quotes.
To help you find the cheapest car insurance, NerdWallet did a car insurance comparison of rates for incident-free drivers from the five largest auto insurers across the 12 most populous states in the country.
Here’s how the big guys stack up.
» COMPARE: Auto insurance rates
Rankings: Car insurance rates among the five largest companies
1. Geico
For the general population, Geico offers the cheapest car insurance quotes on average nationwide. NerdWallet found an average rate of $1,297 a year in our study.
Geico also provides a variety of easy-to-score discounts that can cut costs. Motorists who’ve gone five years without an accident qualify for the company’s good driver discount. There are also opportunities to save by insuring multiple vehicles, driving a car with air bags, always wearing seat belts and taking advantage of various other discounts.
2. State Farm
State Farm ranks second for pricing among the four largest companies, but with an average quote of $2,296 per year, nearly $1,000 per year higher than Geico. The good news is drivers have ample opportunity to trim their costs, especially if they have a clean driving record. Among other savings opportunities, State Farm offers four separate discounts that deal with safe and accident-free driving.
State Farm is the nation’s leading car insurance provider in terms of market share, offering a vast array of insurance products and financial services in every state plus Washington, D.C.
3. Progressive
Progressive returned an average quote of $2,821 per year, which comes out to $235 a month. That’s $525 a year higher than State Farm and more than double the cost of Geico.
Progressive may appeal to drivers looking for a paper- and agent-free experience. You can manage your policy entirely online. Starting a quote online and signing policy documents electronically are also two ways to qualify for discounts, along with things like bundling auto and home insurance and insuring multiple cars.
4. Allstate
Of the four largest insurers, Allstate had the highest average annual quote for good drivers at $3,182, or roughly $265 per month. Although ponying up that kind of cash is a lot to ask, the company has solid finances and relatively few complaints from policyholders. Allstate holds an A+ (Superior) financial strength rating from A.M. Best and has a customer complaint ratio of 0.77, better than the industry median of 1.00, according to data compiled by the National Association of Insurance Commissioners.
Among other discounts, Allstate offers price breaks for safe driving, including savings once you’ve gone accident- and violation-free for three years, and again for five years.
» COMPARE: Car insurance quotes
USAA: Best for those with military ties
You may already recognize USAA for its highly rated customer service. But the company has more to offer than a friendly bedside manner — it also notched the cheapest car insurance rates in our study, at $918 a year. USAA offers several discounts to help you save more, including for going more than five years with a clean record and for taking an approved defensive driving course.
USAA is open to active and retired military members and their families, and offers car insurance and other insurance products in all 50 states and Washington, D.C.
Metromile: Best for low-mileage drivers
NerdWallet tested rates for low-mileage drivers (5,000 miles a year) in six of the seven states where Metromile is available, and the company ranked as the cheapest option in five of them. Among those states, Metromile’s average quote was just $763 a year, which translates to roughly $64 a month.
Most insurers ask you to estimate your annual mileage when getting a quote. But Metromile tracks your mileage using a telematics device and charges you only for the miles you drive, plus a low base rate. The company is ideal for city-dwellers who have a car but frequently get around using other means, such as public transit or a bicycle, or for those who don’t commute and use their car mainly for errands and recreation.
Metromile is available in California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington.
Check out smaller insurers, too
Finding cheap car insurance doesn’t mean you have to stick with large, national insurance companies. Regional and small insurers may beat the lowest offers from the big guys. For example:
- Grange Mutual offered the lowest car insurance in Ohio at $701 a year.
- Erie Insurance had a rate of $796 for Pennsylvania car insurance, second-lowest behind only USAA.
Tips for anyone to get cheap car insurance
No matter who your auto insurance company is, here are tips for saving on your policy:
- Look for discounts — even ask for them. There could be discounts you’re not taking advantage of. For instance, maybe you now work from home and are driving less than when you bought your policy. Mention it and you might get a low-mileage discount.
- Rethink your insurance limits and deductibles. Don’t strip away your coverage just for the sake of a lower price. But consider accepting a higher deductible on collision and comprehensive if it makes sense. Raising deductibles means you would owe more out of pocket if you had to file a comprehensive or collision claim. If you rarely drive or are financially comfortable with that risk, though, it’s a surefire way to get cheaper car insurance.
- Cash in on major life changes. Certain life events could translate to cheaper car insurance. For instance, many companies offer a lower rate for married couples or domestic partners. Or perhaps you moved to a new city with stellar public transportation. If you’re commuting by train instead of car, your risk for accidents will go down — and your rates just might, too.
NerdWallet’s comparison tool makes it easy to see quotes from top companies side by side and possibly save hundreds on your rates.
Cheapest car insurance by state
Wondering who’s the most likely to offer cheap auto insurance where you live? NerdWallet looked at rates for 30-year-old good drivers from the largest insurers in each state. Find your state in the list below:
- USAA (only available to active military members, veterans and their families)
- Geico
- State Farm
- USAA (only available to active military members, veterans and their families)
- Geico
- State Farm
- Geico
- USAA (only available to active military members, veterans and their families)
- State Farm
- Geico
- State Farm
- USAA (only available to active military members, veterans and their families)
- USAA (only available to active military members, veterans and their families)
- Nationwide
- USAA (only available to active military members, veterans and their families)
- Geico
- State Farm
- USAA (only available to active military members, veterans and their families)
- Geico
- State Farm
- Geico
- USAA (only available to active military members, veterans and their families)
- State Farm
- USAA (only available to active military members, veterans and their families)
- State Farm
- American Family
- USAA (only available to active military members, veterans and their families)
- State Farm
- Farm Bureau Mutual
- USAA (only available to active military members, veterans and their families)
- State Farm
- USAA (only available to active military members, veterans and their families)
- Geico
- State Farm
- State Farm
- USAA (only available to active military members, veterans and their families)
- USAA (only available to active military members, veterans and their families)
- Geico
- State Farm
- Farm Bureau Mutual
- USAA (only available to active military members, veterans and their families)
- Geico
- USAA (only available to active military members, veterans and their families)
- Geico
- State Farm
- USAA (only available to active military members, veterans and their families)
- PEMCO
- State Farm
To recap:
Cheap car insurance options
| INSURER | CHEAPEST FOR | AVERAGE PRICE |
|---|---|---|
| Metromile | Low-mileage drivers | $64/month |
| USAA | Drivers with a military connection | $77/month |
| Geico | General population | $108/month |
Alex Glenn is a staff writer for NerdWallet, a personal finance website. Email: aglenn@nerdwallet.com.
This article has been updated. It originally published Dec. 8, 2015.
