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In the US, all drivers must have liability car insurance. However, liability minimum coverage requirements vary by state. If you finance or lease your car, your lender probably requires comprehensive and collision coverage.
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Insider compiled data from 20 different life insurance companies based on customer service, financial stability, asset size rankings, and premium prices where available. Here are our car insurance top picks for affordability and value. A few of the top companies do not have quotes available online. Although it makes it harder to shop and compare, your goal should be to have the best coverage that fits your circumstances. Here are some of the best, cheap car insurance options of 2022.
Best car insurance overall: State Farm Auto Insurance
State Farm Auto Insurance has been in business since 1922. It has a national presence with good auto claims satisfaction and an average monthly premium of $50 for drivers with a clean record, according to Insurify.
State Farm Auto Insurance is inexpensive for drivers with a clean record, a DUI, an at-fault accident, and a speeding ticket compared to the national average and among its competitors. However, rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the Insurance Information Institute (III).
Driver profile State Farm average monthly premiumNational average monthly premiumClean record$50$77DUI $75$155At-fault accident$64$113Speeding ticket$59$104
Data sourced from Insurify
State Farm Auto Insurance
Best car insurance for military members: USAA Auto Insurance
USAA Auto Insurance is only available to active-duty military, veterans, and their families. It’s the most affordable option for car insurance in many states with outstanding claims satisfaction and an average monthly premium of $149.
USAA is more expensive for drivers with a clean record, a DUI, an at-fault accident, and a speeding ticket compared to the national average. However, there are many discounts and saving opportunities for military members. Rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the III.
Read our USAA insurance review to learn more.
Driver profileUSAA average monthly premiumNational average monthly premiumClean record$149$77DUI$242$155At-fault accident$181$113Speeding ticket$170$104
Data sourced from Insurify
USAA Auto Insurance
Best for cheap car insurance: GEICO Auto Insurance
GEICO Auto Insurance has been around since 1936, initially as insurance for government employees. It has a nationwide presence, high marks in claims satisfaction, and is typically the most affordable coverage with an average monthly premium of $46. It’s also friendly to drivers with poor credit scores.
GEICO Auto Insurance has some of the lowest rates for drivers with a clean record, a DUI, an at-fault accident, and a speeding ticket compared to the national average. However, rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the III.
Read our GEICO insurance review to learn more.
Driver profileGEICO average monthly premiumNational average monthly premiumClean record$46$77DUI$94$155At-fault accident$72$113Speeding ticket$56$104
Data sourced from Insurify
GEICO Auto Insurance
Best car insurance after an accident, DUI, or speeding ticket: Erie Auto Insurance
Erie Auto Insurance has been in business since 1925. Although it’s only available in 12 states, it has a reputation for low prices and high marks in customer service with the average cost for a typical adult driver at 48 per month.
Erie Auto Insurance has the lowest rates for drivers w a DUI, an at-fault accident, and a speeding ticket compared to the national average and among its competitors. However, rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the III.
Read our Erie insurance review to learn more.
Driver profileErie average monthly premiumNational average monthly premiumClean record$48$77DUI$86$155At-fault accident$65$113Speeding ticket$55$104
Data sourced from Insurify
Erie Auto Insurance
Best for senior drivers and AARP members: The Hartford Auto Insurance
The Hartford Auto Insurance has been in business since 1810 and has a national presence. It was top-ranked for claims satisfaction. Its auto insurance is available exclusively to AARP members.
The Hartford Auto Insurance is slightly more expensive for clean drivers, drivers with a DUI record, an at-fault accident, and a speeding ticket compared to the national average and among its competitors. However, there are many saving opportunities for AARP members. Rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the III.
Read our The Hartford insurance review to learn more.
Driver profileThe Hartford average monthly premiumNational average monthly premiumClean record$106$77DUI$160$155At-fault accident$130$113Speeding ticket$112$104
Data sourced from Insurify
The Hartford Auto Insurance
Best car insurance companies ranked by claims satisfaction
Claims satisfaction refers to how customers feel about how insurance companies settle claims and the claims process. Below are the 2021 rankings from J.D. Power :
J.D. Power 2021 auto claims satisfaction rankings
The HartfordErie InsuranceAuto Club of Southern CaliforniaAmica MutualFarmers InsuranceState FarmAmerican Family InsuranceGEICOAuto-Owners InsuranceLiberty MutualNationwideSafecoTravelers InsuranceAllstateCSAAAuto Club GroupProgressive InsuranceKemper Insurance
*Because USAA is only available to military and veterans, it is not included in the official ranking. Had it been ranked, it would have been first place
Cheapest car insurance after an at-fault accident
Your driving record is critical in determining how much you pay for auto insurance. A bad one can cost you. Premiums can increase by almost 50% after an at-fault accident claim, according to an analysis by The Zebra, an insurance comparison website. The percentage of these increases will vary from company and stay on your record for about three years, according to the Insurance Information Institute.
Here are a few of the most affordable car insurance companies for those with an at-fault accident on record:
Insurance companyAverage monthly quote after an accidentMetromile$99Farmers$130Amigo USA$133Kemper$144Novo$146
Source: Insurify
Average premiums for seniors and teen drivers
Because teen drivers are new drivers with little driving history and more prone to accidents, their rates are high. However, most insurance companies offer discounts to teen drivers for good grades or taking driving safety classes.
Senior drivers typically see an uptick in car insurance premiums as they age, but not as much of an increase as new or teen drivers. If you’re still driving in your 60s and 70s, there are ways to negotiate cheaper auto insurance rates, like pay-per-mile usage.
Average annual premium senior driversAverage annual premium teen drivers
$1,618 per year
$3,452 per year
Data provided by Goosehead Insurance
Car insurance companies ranked by financial stability
Here’s how our picks for best cheap car insurance stack up in terms of financial stability, according to credit-rating agency AM Best.
CompanyFinancial Strength (AM Best)State Farm Auto Insurance (tie for 1st)A++USAA Auto Insurance* (tie for 1st)A++GEICO Auto InsuranceA++Erie Auto InsuranceA+The Hartford Auto InsuranceA+
How did we come up with the best car insurance companies for 2022?
Insider collected data on the top 25 auto insurance companies based on market share from S&P Global Intelligence. We picked our top five based on financial stability ratings, claims satisfaction, market share, and sample premiums.
Claims satisfaction: We use J.D. Power’s auto claims satisfaction survey to evaluate the quality of service a company provides to its customers.This survey used responses from 7,345 auto insurance customers who settled a claim within the past six months. Car insurance companies ranked No.1 through #8 are above the industry average in customer satisfaction.
Financial stability ratings: We use AM’s Best to determine a provider’s financial strength. AM’s Best is a credit rating agency that assesses an insurance company’s ability to pay claims to its policyholders. A company that receives an A++ to B+ is stable in financial strength, while anything lower than a B means that a company is unstable or unable to meet its financial obligations.
Market share: Market share refers to the percentage of a company’s insurance market. The higher a company’s market share, the more popular it is among policyholders nationwide. We gathered data on market shares from the S&P Global Market Intelligence.
Average monthly premiums: While lower car insurance premiums do not necessarily mean quality insurance, we do our best to balance a policy’s cost with the value an insurer provides. A good monthly premium is on par with or below the average cost of car insurance which is $1,070 per year or about $89 per month, according to recent data from the Insurance Information Institute.
Frequently asked questions — Best cheap car insurance
What are the different types of car insurance?
There are four main types of car insurance: comprehensive, collision, and liability. Full coverage is a combination of the three. Drivers in the US must have liability coverage, but if you finance or lease your car, your lender probably requires comprehensive and collision coverage.
Comprehensive coverage replaces or repairs your vehicle if it’s stolen or damaged. Comprehensive coverage typically covers theft, fire, vandalism, or falling objects like a tree.
Collision insurance repairs your car if it’s damaged in a collision with another vehicle or object.
If you’re involved in an accident, liability insurance covers damage you cause to the other vehicle, driver, and passengers — not your vehicle. Liability coverage is required by law — except in New Hampshire.
The two main components of liability insurance are bodily injury and property damage, which most states require. Liability insurance also includes uninsured motorist and underinsured motorist coverage.
DamageComprehensiveCollisionLiabilityFullTheftYesNoNoYesVandalismYesNoNoYesFireYesNoNoYesNatural disasterYesNoNoYesFalling objects (tree)YesNoNoYesAnimal damageYesNoNoYesCollision/accidentNoYesNoYesRolloverNoYesNoYesBodily injury/medical billsNoNoYesYesPhysical damageNoNoYesYesProperty damageNoNoYesYesUninsured motoristNoNoYesYes
How can I find the best car insurance rates for me?
Everyone’s car insurance rates will vary depending on the coverage you chose. There are other factors that can go into pricing a premium and every car insurance company will evaluate you on different factors and weigh those factors differently like credit scores, driving history, accidents, type of car, mileage, and where you live.
Shop for affordable carriers that meet your coverage needs by getting quotes from several different insurance companies and comparing them.
To find the best one for you out of the quotes you’ve obtained, compare the coverage types, limits, and deductible, or the amount you’ll pay out of pocket if you’re involved in an accident. The policy with the lowest price for coverage, the most coverage types and limits, and the lowest deductible is the best one for you.
Who offers the cheapest auto insurance rates?
According to Insider’s research, GEICO Auto Insurance is offering the best cheap car insurance in 2022, with Erie Auto Insurance as a close second in places where it’s available (see above for details). However, the car insurance company that’s cheapest for one person may not be for another. Before purchasing an insurance policy, you’ll want to get four or five quotes from different insurance companies, just to make sure that you’re getting the best price.
What is the best-rated car insurance company for claims satisfaction?
According to 2021 J.D. Power and Associates data on customer satisfaction, The Hartford Auto Insurance and Erie Auto Insurance take the top spots.
Is Progressive or GEICO better?
There’s a lot of buzz around these two options, but in Insider’s calculations, GEICO Auto Insurance comes out on top. Ranked highly for both value and customer service, GEICO tends to stand out. It won out in several of the scenarios above. While you’re shopping, it might be worth getting quotes from both and seeing which one stands out.
What’s the best car insurance option for students?
According to Insider’s research, Erie Insurance generally looked to be the best insurance for young adults and new drivers (in states where it’s available).
One of the best ways to save on car insurance for a teen or young adult driver is to join a family policy. On a family car insurance policy, your premiums will be about 20% lower than having a separate plan, according to reporting by The Balance. If joining a family plan is an option, it might be the best for a teen driver.