Auto insurance is a necessity for many Americans. But it can also be quite costly, with the average car owner spending just over $2,299 a year for full coverage, or $637 for minimum coverage in 2024 according to Bankrate.
Premiums can vary significantly by state since each has different requirements on how much coverage is necessary. In most states, car insurance is a requirement. But it can also provide valuable financial protection for a variety of situations. Depending on the coverage you decide to get, auto insurance can help protect your wallet from taking a hit if you’re involved in a fender bender or have your car stolen.
Your auto insurance costs can vary based on several other factors, including your credit history, age and driving history. If you’re looking for affordable coverage, CNBC Select has rounded up some of the cheapest car insurance companies.
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Best for discounts
Geico Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Pros
- Lowest average rates
- Inclusive coverage options, including high-risk drivers
- Available nationwide
Cons
- High premiums for high-risk drivers
- Fewer branches for in-person services
Geico is a strong bet for both customer service and competitive pricing. It stands out for having high ratings for customer satisfaction and a wide range of financial products to bundle car insurance and save. It also offers some of the most affordable average annual premiums for full coverage car insurance of the companies we reviewed. The company offers 16 different discounts, from savings for military members and students to a good driver discount to up to 22% for those with five years accident-free.
Average annual premium for minimum coverage: $465
Average annual premium for full coverage: $1,782
Best for full coverage
Nationwide Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you.
Pros
- Available in 47 states and the District of Columbia
- Lowest average premiums for full coverage
Cons
- High average premium for minimum coverage
Nationwide was one of the cheapest options for full coverage according to the data we analyzed. It offers Accident Forgiveness in some states, which can help you skirt a rate hike after an accident. There are also discounts for bundling, staying accident-free, seniors who take a defensive driving course and students with a B or better grade average.
Additionally, Nationwide offers SmartRide, a usage-based telematics car insurance program that adjusts your rate based on braking, mileage, acceleration and nighttime driving frequency. For seniors, work-from-home employees or others who don’t drive much, Nationwide offers its pay-per-mile car insurance plan that charges a base rate and a per-mile cost.
Average annual premium for minimum coverage: $698
Average annual premium for full coverage: $1,564
Best for minimum coverage
Auto-Owners Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
Auto-Owners offers affordable premiums with high customer satisfaction ratings. There are 12 different types of discounts available, as well as various other types of insurance besides auto.
Pros
- tOffers at-fault accident forgiveness as an add-on
- High customer satisfaction scores from JD Power
- Low NAIC complaint index score
Cons
- Only available in 26 states
- Quotes must be obtained through an agent
Auto-Owners offers affordable car insurance for those looking for minimum coverage — the lowest average premium for the companies we reviewed. While it’s not available in all states, Auto-Owners insurance is highly rated by AM Best for financial strength. CNBC Select also selected Auto-Owners insurance as one of the top picks for young adult drivers and for seniors.
Average annual premium for minimum coverage: $415
Average annual premium for full coverage: $1,631
Best for customer satisfaction
Amica Auto Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Amica offers a variety of auto insurance policies to fit your coverage needs. The company also offers a total of 18 discounts, including discounts for bundling and for students.
App available
Pros
- Highly rated by J.D. Power for auto claims satisfaction
Cons
- Not available in all 50 states
Amica takes the top spot in J.D. Power’s Auto Claims Satisfaction Study, scoring 903 out of 1,000 possible points. It also offers rates lower than many of the other companies we considered. In addition to discounts for bundling, it offers discounts for families, how you drive, what you drive and how you pay.
Average annual premium for minimum coverage: $673
Average annual premium for full coverage: $2,662
Best for military members and veterans
USAA Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
USAA’s auto insurance is available in all 50 states, Washington D.C. and some international locations. In addition to low rates and coverage options for unique circumstances, such as for active-duty members, customers have access to an intuitive mobile app.
Pros
- Cheapest insurer for liability-only coverage
- Stellar customer satisfaction
- Track record of financial strength
- Available in all 50 states
Cons
- Limited to military families and veterans
- No brick-and-mortar insurance agencies
- Customer service is not available 24/7
- Safe-driver discount not available in every state
USAA‘s high customer satisfaction ratings and relatively low rates have earned it top spots on several of our top auto insurance lists. However, only some are eligible — USAA limits eligibility to those who are current and former military members and their spouses and children. For those who are eligible, USAA offers competitive average auto insurance rates.
Average annual premium for minimum coverage: $435
Average annual premium for full coverage: $1,709
Average cost of car insurance
Here’s an overview of the average car insurance costs by state. Premiums can vary significantly by state due to varying regulations and requirements.
| State | Average annual cost for full coverage | Average annual cost for minimum coverage |
|---|---|---|
| Alabama | $2,207 | $541 |
| Alaska | $2,330 | $498 |
| Arizona | $2,515 | $795 |
| Arkansas | $2,193 | $457 |
| California | $2,692 | $653 |
| Colorado | $3,200 | $650 |
| Connecticut | $2,187 | $826 |
| Delaware | $2,636 | $998 |
| Florida | $3,950 | $1,308 |
| Georgia | $2,610 | $813 |
| Hawaii | $1,652 | $415 |
| Idaho | $1,425 | $343 |
| Illinois | $2,316 | $682 |
| Indiana | $1,639 | $424 |
| Iowa | $1,683 | $317 |
| Kansas | $2,630 | $631 |
| Kentucky | $2,558 | $771 |
| Louisiana | $3,626 | $953 |
| Maine | $1,517 | $398 |
| Maryland | $2,496 | $984 |
| Massachusetts | $1,646 | $416 |
| Michigan | $3,375 | $1,210 |
| Minnesota | $2,044 | $650 |
| Mississippi | $2,061 | $514 |
| Missouri | $2,437 | $610 |
| Montana | $2,228 | $380 |
| Nebraska | $1,994 | $516 |
| Nevada | $3,564 | $1,142 |
| New Hampshire | $1,646 | $419 |
| New Jersey | $2,563 | $1,030 |
| New Mexico | $2,216 | $523 |
| New York | $3,848 | $1,661 |
| North Carolina | $1,702 | $491 |
| North Dakota | $1,655 | $362 |
| Ohio | $1,530 | $404 |
| Oklahoma | $2,560 | $510 |
| Oregon | $1,956 | $789 |
| Pennsylvania | $2,791 | $522 |
| Rhode Island | $2,683 | $800 |
| South Carolina | $1,886 | $657 |
| South Dakota | $1,939 | $334 |
| Tennessee | $1,807 | $459 |
| Texas | $2,627 | $697 |
| Utah | $1,942 | $700 |
| Vermont | $1,359 | $311 |
| Virginia | $1,990 | $677 |
| Washington | $1,674 | $563 |
| West Virginia | $1,904 | $488 |
| Wisconsin | $1,739 | $425 |
| Wyoming | $1,581 | $270 |
| District of Columbia | $2,437 | $762 |
Source: Bankrate.com
FAQs
How do I get cheap car insurance?
You’ll want to shop around to get the best cheap car insurance.
Every car insurance company considers your information differently, including things like your driving history and the type of car you’re insuring, among other factors.
When shopping for car insurance, it’s important to get quotes from several insurers, ensuring the same amount and types of coverage in each quote. Once you have several quotes on hand, compare the premium, or the price you pay for coverage, to find the one that offers the most coverage for your money.
How can I make car insurance cheaper?
Many factors go into your car insurance price, including some that you can change and some that are out of your control. That said, it is possible to do a few things to make your car insurance cheaper, including:
- Raise your credit score. In many states, your credit score is a factor that insurance companies can use when pricing your car insurance policy. Generally, those with higher credit scores are offered lower premiums. To raise your credit score, make payments on time, pay attention to your credit utilization rate, and check your credit report for errors.
- Bundle your insurance policies. Many insurers offer more types of coverage than just car insurance, and some offer savings for buying two or more insurance policies at the same company, also called bundling. To take advantage of this discount, shop for your homeowners insurance, renters insurance, or condo insurance with your auto insurance.
- Look for discounts. Most auto insurers offer various types of discounts. In addition to bundling, there may be discounts for safe driving, automatic payments, paying on time and insuring multiple cars.
What car is the cheapest for full coverage?
The type of car you plan to insure will also affect the amount you’ll pay for coverage. Generally, luxury vehicles and sports cars are more expensive to insure since they have higher repair costs. Some of the cheapest car insurance rates are for smaller SUVs.
Whether insuring a top-of-the-line sportscar or an everyday sedan, shop around for car insurance to get the best deal for your car.
Who typically has the cheapest car insurance?
According to our review of dozens of car insurance companies, Amica, Auto-Owners, USAA and Geico typically offer the cheapest rates and high customer satisfaction.
Bottom line
Auto insurance can be costly, but it doesn’t have to be. Shopping around for coverage by getting multiple quotes and comparing them could help make sure you get the best deal for you.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the cheapest car insurance.
Our methodology
To determine the best cheap car insurance companies, CNBC Select looked at many U.S. car insurance companies with competitive prices.
When narrowing down and selecting the best cheap car insurance companies, we focused on the average cost of both full-coverage auto insurance policies and minimum coverage auto insurance policies. We then considered coverage types, availability of coverage, and customer satisfaction using data from AM Best, J.D. Power’s Auto Claims Satisfaction Study rankings, and car insurance premium data from Bankrate.com.
Average annual premium data is based on a 40-year-old driver with a 2022 Toyota Camry, a clean driving record and good credit, and the following limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
After reviewing the above factors, we sorted our recommendations by best overall, best for minimum coverage, best for customer satisfaction, and best for military members and veterans.
Note that the premiums and policy structures advertised for car insurance companies are subject to fluctuate in accordance with the company’s policies.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
