10 Cheapest Auto Insurance Companies in 2024 (Discover Hidden Savings!)

Erie, AAA, and Auto-Owners rank as the top picks for the cheapest auto insurance companies, with rates starting from $22, $32, and $33 per month respectively.

When it comes to saving money on car insurance, every driver is different in terms of their driving profile. So a company cheapest for your friend may not be your cheapest auto insurance company. Learn more about why auto insurance rates vary so much.

Our Top 10 Picks: Cheapest Auto Insurance Companies

That said, while prices may vary depending on the individual, it’s good to know which companies have a reputation for offering affordable rates. Get fast and cheap auto insurance coverage today with our quote comparison tool above.

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#1 – Erie: Top Pick Overall

Pros

• Strong Financial Standing: Erie has been around for over 90 years and boasts an A+ financial rating by AM Best.
• Above-Average Customer Service: Many customers have reported quick and easy claims processes with helpful representatives.
• Multiple Discounts Available: Erie offers a variety of discounts, including multi-policy, safe driving, and teen driver discounts. Learn more in our Erie auto insurance review.

Cons

• Limited Availability: Erie is only available in 12 states, mostly located in the Northeast and Midwest.
• Higher Rates for High-Risk Drivers: Erie tends to have higher rates for drivers with a history of accidents or violations.

#2 – AAA: Best for Road Assistance

Pros

• Discounts and Rewards: AAA has a wide range of discounts and rewards, including good-driver and new young-driver discounts.
• Roadside Assistance: AAA offers extensive roadside assistance coverage which you can read more about in our AAA auto insurance review.
• Strong Reputation: AAA has a long-standing reputation for its reliability and trustworthiness in the insurance industry.

Cons

• Membership Requirement: AAA auto insurance typically requires individuals to become AAA members.
• Regional Restrictions: If you move to a different state or region not served by your original AAA club, you may need to change AAA insurance providers.

#3 – Auto-Owners: Best for Add-Ons

Pros

• Competitive Pricing: Auto-Owners Insurance offers some of the most competitive pricing for minimum coverage policies.
• High Customer Satisfaction: Auto-Owners is known for its high level of customer satisfaction, especially in handling claims and customer service.
• Wide Range of Discounts Available: Auto-Owners provides a variety of discounts including safe driver, multi-policy, paperless billing discounts and more. Learn more in our Auto-Owners auto insurance review.

Cons

• Limited Availability Online: Unlike some competitors that allow you to quote and buy policies entirely online, Auto-Owners still relies heavily on agents for policy issuance and management.
• Expensive for Certain Demographics: Might not always be the cheapest option for full coverage or for certain demographics.

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#4 – Travelers: Best for Coverage Options

Pros

• Comprehensive Coverage Options: Customers can benefit from standard coverage and add-ons like gap, rental, and rideshare insurance.
• Discount Opportunities: Travelers offers safe driver discounts, multi-policy bundling, hybrid/electric vehicle discounts, and more.
• Accident Forgiveness Program: Your rate won’t increase after your first accident if you qualify for this program. Find out if you qualify in our Travelers auto insurance review.

Cons

• Sparse Local Agents: Travelers’ local representation can sometimes be limited.
• Mixed Customer Reviews: While Travelers has many satisfied customers, there are also some negative reviews regarding claims handling and customer service.

#5 – The Hartford: Best for Tailored Policies

Pros

• Tailored Policies: The Hartford excels in providing tailored insurance policies that cater to individual customer needs.
• Plenty of Discounts: The Hartford offers a wide range of discounts, allowing customers to save money on their auto insurance. We have explored these discounts in our The Hartford auto insurance review.
• Easy Claims Process: The Hartford provides a streamlined claims process, making it convenient for customers to file and resolve claims.

Cons

• Limited Availability: The Hartford’s insurance coverage is only available in select states, which may limit access for some potential customers.
• Expensive for Young Drivers: The Hartford’s auto insurance may be pricier for young drivers due to their age and driving experience.

#6 – Nationwide: Best for Multi-Policy Savings

Pros

• Multi-Policy Discounts: Nationwide offers savings for customers who bundle their auto insurance with other policies, such as home or life insurance. Learn more in our Nationwide auto insurance review.
• Good Customer Service: Nationwide has a strong reputation for excellent customer service, with high ratings in satisfaction surveys.
• Plenty of Coverage Options: Customers can tailor their auto insurance policy to fit their needs by choosing from various coverage options. 

Cons

• Average Claims Process: Nationwide has received some complaints about their claims process taking longer than expected, which can be frustrating for customers.
• Pricey: While Nationwide offers many discounts, their base prices may still be higher compared to other insurance companies.  

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#7 – American Family: Best for Claims Service

Pros

• Excellent Claims Service: American Family has a reputation for providing efficient and responsive claims service, making the process easier for customers.
• Customizable Policies: Customers can personalize their auto insurance policies by selecting multiple coverage options that fit their needs.
• Affordable Rates: American Family offers competitive rates and discounts. Learn more in our American Family auto insurance review.

Cons

• Limited Availability: American Family is only available in 19 states, which may make it difficult for some customers to access their services.
• Mixed Customer Reviews: While American Family has a strong reputation for claims service, some customers have reported issues with their policies and billing.

#8 – Farmers: Best for Safe-Driving Discounts

Pros

• Safe-Driving Discounts: Farmers offers a variety of discounts for safe drivers, including those who have completed driver’s education courses or are accident-free.
• Multiple Coverage Options: Customers can choose from a range of coverage options to customize their policy and ensure they have the right amount of protection. Learn about Farmers’ coverage options in our Farmers auto insurance review.
• Strong Financial Standing: With high ratings from industry organizations such as A.M. Best, Farmers has a strong financial standing and can provide peace of mind to customers.

Cons

• Costlier for High-Risk Drivers: Customers with a history of accidents or traffic violations may face higher rates with Farmers compared to other insurance companies.
• Low Customer Satisfaction: Farmers received below-average ratings in customer satisfaction for overall experience and claims handling.

#9 – The General: Best for High-Risk Coverage

Pros

• High-Risk Coverage: The General auto insurance offers coverage specifically for high-risk drivers.
• Quick and Easy Quotes: Customers can get a quote within minutes on The General’s website or by calling their toll-free number.
• Flexible Payment Plans: The General offers flexible payment plans. Find out how to benefit from these plans from The General auto insurance review.

Cons

• Slow Claims Process: According to customer reviews, The General’s claims process can be slow and frustrating.
• Poor Communication:  Some customers have reported poor communication from The General regarding their policies and claims.

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#10 – Liberty Mutual: Best for Coverage Options

Pros

• Coverage Options: With Liberty Mutual, customers can customize their coverage and choose from various add-ons, such as accident forgiveness and new car replacements.
• Nationwide Availability: Liberty Mutual is available in all 50 states. Read more in our Liberty Mutual Auto Insurance Review.
• Excellent Ratings: Liberty Mutual has received an A rating from AM Best for financial stability and an A+ rating from the BBB for customer satisfaction.

Cons

• Higher-Than-Average Complaints: According to the National Association of Insurance Commissioners (NAIC), Liberty Mutual has a higher-than-average complaint index in some states.
• Low Claims Satisfaction Ratings: Liberty Mutual received below-average overall and settlement satisfaction ratings. 

Finding The Cheapest Auto Insurance Rates for You

Car insurance rates depend on various factors — location, driving history, credit score, and more — so some insurance companies may be cheaper for certain drivers than others.

We’ve grouped auto insurance companies by which is cheapest for various categories, so you can easily find which company is cheapest for your own needs and profile.

Read More: Geico Auto Insurance Review

Below, we’ll detail each category so you can learn more about why each company is the cheapest for certain drivers.

Cheapest Auto Insurance Overall

The cheapest car insurance company overall is Erie, which costs $22 per month for a liability-only policy.

Auto Insurance Monthly Rates From the Cheapest Companies

USAA does offer cheaper coverage, but this is only available to some buyers. USAA only offers auto insurance coverage to active duty military, veterans, and their families, so it is not on our list of cheap auto insurance companies.

Liability-only auto insurance policies, which typically include a combination of bodily injury liability coverage and property damage liability coverage, are often the bare-minimum coverage required by the state and are the cheapest options.

However, if you have a high value car, lease or finance your car, or just want more peace of mind then you may want to get a more comprehensive insurance policy. Of course, the added protection comes at a higher cost (Read More: Comprehensive Auto Insurance).

Cheapest Auto Insurance Companies for Drivers with a Traffic Ticket

State Farm is the cheapest national insurance provider for drivers with traffic tickets, offering rates as low as $37 a month. Depending on where you live, there are even cheaper insurance options offered by regional insurance providers like Erie, Clearcover, and Safeco. Read our Safeco auto insurance review for more details.

Read More: Clearcover Auto Insurance Review

Auto Insurance Monthly Rates After a Ticket

Traffic tickets not only carry a small fine, but they can have a significant impact on car insurance rates. When you receive a traffic ticket, it typically means you’ve violated a traffic law or regulation, which can be seen by insurance companies as an increased risk.

On average, the cost of auto insurance can increase anywhere from $125 to $330 more per year after getting a traffic ticket.

To learn more about how tickets can impact your insurance and how to lower your premiums after getting one, see our article “How does a speeding ticket affect auto insurance rates?”

Cheapest Auto Insurance Companies After a Car Accident

Your car insurance rates will increase if you get in a car accident and you are found to be at fault. Your car insurance rates can increase anywhere from $250 to $640 annually depending on the type of car insurance policy that you have.

Maintaining a good, safe driving record is one of the best things you can do to keep your auto insurance premiums low.

State Farm is the cheapest insurance company for drivers with an accident on their record, offering coverage as low as $40 per month. Take a look at the other insurance companies with reasonable rates below.

Auto Insurance Monthly Rates After an Accident

Accidents won’t stay on your driving record forever. If you are able to maintain a safe driving record, then the accident will eventually fall off of your record and you will be able to get cheaper insurance again. For more details, read our article titled “How long does an accident stay on your record?”

The best auto insurance companies for high-risk drivers may offer discounts for completing an approved defensive driving program. You may also want to consider raising your deductible to lower your premium.

Cheapest Auto Insurance Companies After a DUI

A DUI on a record automatically means higher insurance rates. However, there are still options to find cheaper auto insurance coverage. Usually, regional insurance companies compete with each other to offer affordable auto insurance rates for drivers with a DUI.

Auto Insurance Monthly Rates After a DUI

Generally, these regional companies have lower overhead costs than big insurance companies and can help their customers save. Compare multiple quotes from companies to find the most affordable auto insurance.

Cheapest Auto Insurance Companies for Teens

For most teen drivers, the cheapest option for insurance is for the teen to stay on their parents’ auto insurance policy. Geico offers the cheapest teens auto insurance purchasing their own policy, offering rates as low as $107 per month.

Auto Insurance Monthly Rates for Teens

Statistically, teenage males are more likely to get into crashes and file claims. They’re also more likely to participate in risk-taking behaviors like speeding or not wearing a seat belt.

In states where insurers can consider gender when setting rates, teenage males have higher rates than teenage female drivers. However, teenage males can reduce their rates by keeping a clean driving record and participating in safe driving programs.

Cheap Auto Insurance Companies for Seniors

Senior drivers may see their rates slowly increase as they age since insurance companies view them as higher risk due to age-related factors like slowing reflexes and declining eyesight.

However, comparing rates can help find savings on auto insurance for seniors. The cheapest car insurance company for senior drivers is Geico.

Auto Insurance Monthly Rates for Seniors by Provider & Coverage Level

Senior drivers can also participate in driving safety courses to earn a safe driving discount if it’s available from their insurance provider. Maintaining a good driving record and shopping around will also go a long way to finding car insurance that fits a senior driver’s needs and budget.

Senior male drivers pay slightly more than female senior drivers for car insurance. However, in states where basing rates on gender is banned, rates will be the same for male and female senior drivers with the same driving record and demographic information. If you’re 80 and looking for auto insurance see our article on cheap auto insurance for drivers over 80.

Cheapest Auto Insurance Companies by State

Auto insurance rates vary widely between states. Look at the table below to see which companies offer the cheapest auto insurance coverage in each state.

Cheapest Liability Only Auto Insurance Provider by State

Some of the cheapest states for auto insurance are Tennessee, South Dakota, Vermont, North Carolina, and Maine.

Factors Affecting Your Auto Insurance Rates

While rates differ by company, all insurers will look at the same basic factors to calculate your auto insurance rates. The main factors affecting your auto insurance rates are as follows:

Factors That Affect Auto Insurance Rates

• Age: Young drivers are more likely to get into accidents, and older drivers face age-related issues like decreased reaction time. Read more: Auto insurance rates by age.
• Claims History: If you’ve filed multiple claims, you’ll have higher insurance rates.
• Credit Score: Drivers with lower credit scores are more likely to file claims or miss payments. However, California, Hawaii, Massachusetts, and Michigan insurance companies can’t use credit scores as a factor.
• Driving History: Traffic tickets, accidents, DUIs, and other similar charges will raise rates.
• Gender: Men tend to pay higher rates than females, as statistics show men get into more accidents. However, insurers can’t consider gender in California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania. Find out why auto insurance rates are higher for males in our comprehensive guide.

The ZIP code where you live will also impact your rates based on weather, crime rates, living costs, and similar factors. The exception is California and Michigan, where using ZIP codes to calculate rates is prohibited.

While you don’t have much control over many of the factors affecting your rates, you can work to reduce your rates by keeping a clean driving record and shopping around.

Another factor affecting your rates is your auto insurance company.

You should also know your coverage needs, as you may not need all the insurance extras or low deductibles.

Available discounts also affect your insurance rates. You may be able to reduce your rates by bundling auto insurance with other coverages and discounts. If you find that your rates are increasing or there’s a significant lifestyle change, shop around for new quotes to ensure you’re getting the best deal.

Read More: Factors That Affect Auto Insurance Rates

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How to Find the Right Coverage For You

The cheapest type of car insurance is the state minimum liability coverage. Generally, you can save hundreds of dollars by keeping a minimum liability auto insurance policy.

However, you should get a full coverage policy if the following is true:

• Your car is still worth money. If your car is expensive and fairly new, you could face a huge loss after an accident.
• You have a lease or loan on your car. Most lease and loan agreements require you to carry comprehensive and collision insurance on your vehicle until you pay off your loan or lease.

Generally, you shouldn’t drop the optional coverages that protect your asset if you’d lose a lot of money after your car gets totaled or damaged. On the other hand, if your car gets paid off and is old enough not to be worth much after a collision, it can be beneficial to carry the bare minimum on your car to save money.

If the payments for extra coverages are worth at least 10% of your car’s total value, you can consider dropping them because, in a year or so, you’ll have paid your car’s entire value in add-on coverages.

How to Save Even More with Auto Insurance Discounts

One of the best ways to save on car insurance — in addition to shopping around and getting quotes — is through discounts. The following discounts are generally available with most insurance providers:

Common Auto Insurance Discounts

Generally, you can discover eligible discounts at an insurance company when getting a quote. However, other discounts, such as a safe driving program discount, may not appear in your quoted price. Taking advantage of these discounts after signing up with a company can help reduce your rates down the road.

To learn more about how to qualify for these discounts and how much you could save, see our article auto insurance discounts. Our free online comparison tool below allows you to compare cheap car insurance quotes instantly — just enter your ZIP code to get started.

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