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The minute an accident occurs, it's clear why auto insurance is so important.
States have different guidelines on how much auto insurance you need. New Hampshire and Virginia technically don't require auto insurance. But the financial responsibility aspect remains the same for every state: All 50 states require drivers to prove they can cover a set amount in damages if they injure another person or their property.
Car insurance can be costly, especially if you have tickets, accidents, a teenager, or other risk factors hiking your rates. But it's possible to meet state requirements, protect yourself and your property, and avoid paying more than you must with affordable policies through some of the best car insurance companies.
Best Cheap Car Insurance of 2023
- State Farm Auto Insurance: Best Overall
- USAA Auto Insurance: Best for Military Members
- GEICO Auto Insurance: Best for Cheap Coverage
- The Hartford Auto Insurance: Best for Seniors
- California Casualty Auto Insurance: Best for Heroes
- Progressive Auto Insurance: Best for High-Risk Drivers
Compare The Best Cheap Car Insurance
Why You Should Trust Us: How We Chose The Best Cheap Car Insurance
There is no magic bullet or one-size-fits-all solution on car insurance. Different companies assess the same risk and assign wildly varying premiums. We use resources, including industry powerhouses like JD Power and customer reviews (both positive and negative).
The popularity of the company and the price are two obvious factors. Insider also looks at the coverage available, the likelihood of getting a policy, ease of maintenance once a policy is bound, and how quickly claims are paid. Many of the big names in auto insurance refuse to renew or accept policies with certain high-risk drivers. By combining all these factors and more, Insider narrows the list of companies to help readers find the right insurance coverage.
Read our full insurance rating methodology for more details on how we evaluate insurance companies.
Insider takes pride in helping readers find personal finance solutions that suit them. Our reviews and rankings in our insurance guides are not for sale..
Cheap Car Insurance Frequently Asked Questions
Auto insurance should always be customized to meet user needs. While a company like GEICO offers competitive rates, some drivers need more customized coverage. The best way to sort out your options is by working with an insurance professional to get quotes from multiple companies.
While hunting for cheaper prices, some drivers try to shave coverage down to the bare minimum. This may save you money this month, but the average cost of car insurance is much lower than paying out-of-pocket when you get into an accident, even if it's not your fault.
Industry professionals often recommend 50,000/100,000 splits in liability coverage (the coverage that covers others if you cause auto damage or injuries). Collision covers exactly what the name suggests, while comprehensive covers things like a tree falling on your car, a run-in with a deer or other large animal, flooding, etc.
We recommend making these decisions based on the cost to value (i.e. what do you get out of it?). At a minimum, every driver should have liability coverage (it is also the law in most states) and medical, which covers things like your ambulance ride and auto-specific injuries.
Most states require minimal liability coverage to protect other drivers around you. A few states don't require auto insurance, but proof of financial responsibility is required. This could be in the form of an insurance bond or proof of liquid assets. But drivers have to reestablish this proof any time there's a payout after they pay for any damages incurred. Auto insurance, on the other hand, requires a small payment each month.
If you're reading this article, you're already on your way to better rates on better auto insurance coverage. The average driver uses the auto insurance company their parents or other family members use.
Getting multiple quotes to compare options with all applicable discounts will get you competitive insurance policies. This could be automatic discounts like those based on your car's safety features, or other discounts such as good student, good driving, military, etc. Shoppers can compare rates by quoting policies online or working with an insurance agent near them.
Occasionally, this happens. With responsible driving, drivers can work back to traditional auto insurance, but the worst thing you could do is let your coverage lapse. While some companies cater to high-risk drivers, states also have high-risk insurance pools. Each state-approved insurer is required to take on a certain number of drivers from this pool each year. The companies also have to offer state-approved rates. To qualify, you would have to be denied coverage by a set number of companies depending on your state.
Most auto insurance companies are regional meaning the cheapest option may be a local auto insurance provider (varying in each state). However, among auto insurance providers licensed in all 50 states, GEICO consistently offers the lowest rates for most drivers.
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State Farm Auto Insurance
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USAA Auto Insurance
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GEICO Auto Insurance
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The Hartford Auto Insurance
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California Casualty Auto Insurance
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Progressive Auto Insurance
Best Cheap Car Insurance Overall
State Farm
The 2023 J.D. Power auto insurance satisfaction study breaks rankings down to different sections of the US, which vary widely. While the highest-ranked choice in each region varies, State Farm was the most consistent competitor in all areas. This doesn't come as a surprise. State Farm offers a reliable and familiar name to do business with. It has agents on the ground dedicated to quoting and binding policies with custom discounts for each customer.
While State Farm agents provide you with the most competitive quote on company-specific products, agents can only provide you with quotes on State Farm insurance policies. They are considered "captive agents" meaning they cannot assist you in comparing rates elsewhere or if you don't qualify with State Farm. The good news is State Farm covers most drivers and families. This insurer also offers competitive rates for young drivers.
State Farm Auto Insurance Review
Best Cheap Car Insurance for Military Members
USAA
According to its website, USAA Auto Insurance has one stated mission: "to facilitate the financial security of its members, associates and their families", specifically military families. If you are a military member, you can buy a full range of financial products with USAA at discounted rates.
If you are a military spouse or other dependent, your military member needs to have a USAA account first. If the military member passes, children coming into adulthood can be USAA-eligible as long as the military member signed up while living. Keep in mind, not all USAA products are limited to military families. You can check its website to verify which ones.
Best Cheap Car Insurance for Low Rates
GEICO
With its infamous GEICO Auto Insurance gecko, most people in the United States have at least heard the name GEICO. GEICO has insurance agents, but agents do not actively seek out customers. Instead, potential customers run quotes through its online system and sign up, manage plans, and more with assistance as needed from customer service agents.
Best Cheap Car Insurance for Seniors
AARP The Hartford
Known for its senior-friendly financial products and services, AARP also offers auto insurance as The Hartford Auto Insurance. You'll need to be signed up with AARP to get an auto insurance quote. But seniors can save on an auto insurance policy and get discounts on home, renter, recreational, and more.
Best Cheap Car Insurance for Teachers, Nurses, and Other Heroes
California Casualty
The celebration of heroes has never been higher, but not all insurance companies are equipped to offer coverage or competitive rates to teachers, firefighters, nurses, and peace officers. Despite the name, California Casualty offers coverage in most states for the listed professionals at discounted rates.
California Casualty is not currently offering coverage in Alaska, Hawai'i, Massachusetts, Michigan, New York, or Wisconsin. In the states it does cover, California Casualty offers discounted rates on homeowners and auto insurance with additional coverages like reduced deductibles for nurses when the damage occurs within 500 feet of their workplace.
California Casualty Car Insurance Review
Best Cheap Car Insurance for High-Risk Drivers
Progressive
Having a DUI, multiple traffic infractions, or poor credit in some states makes drivers difficult to insure. Some companies may choose not to renew coverage or accept policies. Whatever your circumstances, Progressive offers consistently competitive rates for drivers with complicated driving records.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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