Overview
Let’s face it: auto insurance isn’t the sexiest topic in the world, unless, of course, you’re into premium discounts and not getting ripped off. Whether you’re cruising in a clunker or rolling in something shinier, nobody wants to overpay for coverage. And yet, somehow, comparing insurance quotes feels only slightly less painful than a root canal.
That’s where we come in. We’ve rounded up the cheapest auto insurance companies that don’t require you to sacrifice your sanity (or your coverage). Think of this as your shortcut to saving money, with none of the confusing fine print or aggressive phone calls.
From national heavy-hitters like Geico, State Farm, and Progressive to budget-friendly standouts like Auto-Owners, these are the providers that consistently come in with lower-than-average rates, without skimping on the stuff you need.
How to Get the Cheapest Quotes
Finding the lowest auto insurance rate doesn’t have to feel like a chore; it just takes a bit of strategy.
Start by shopping around: getting quotes from at least three to five companies helps you see which ones are offering the best deal for your coverage needs. Don’t forget to compare apples to apples. Make sure the coverage limits, deductibles, and options are the same, or you might end up underinsured. Also, raising your deductible can lower your monthly premium, but keep in mind you’ll pay more out of pocket if you file a claim.
Another tip? Track your mileage and driving habits. Some insurers offer low-mileage or pay-per-mile plans, which can be a big win for seniors who don’t drive as often.
Lastly, keep an eye on your credit score and maintain a clean driving record; both can influence the price your insurer quotes. With a little homework, scoring a great rate is entirely possible.
The Rundown
Best for safe drivers: Progressive
Best for students: Auto-Owners
Best for drivers seeking the best customer service: Amica
Best for military families and veterans: USAA
Best for rideshare drivers: State Farm
Best for homeowners looking to bundle: American Family Insurance
- Best for: Safe Drivers
- Average cost/month: $182
- Average cost/year: $2,187
- Availability: All 50 states
Progressive
Details:
Many people recognize the Progressive name from the company’s ad campaign featuring “Flo,” the friendly insurance salesperson. Progressive launched in 1937 and boasts several “firsts” in the insurance industry, including the introduction of 24/7 claims service in 1990.
Why we like it
With discounts for installing the Snapshot plug-in telematics device or using the app, Progressive rewards drivers based on good driving habits. Drivers with no tickets or accidents in three years can save as much as 34% on their premiums. The company says drivers have saved more than $1.2 billion with Progressive.
Pros & Cons
Pros
24/7 claims
Safe driver discounts
Instant online quotes
Accident forgiveness
Cons
Premiums may be higher if you have accidents or tickets
Average premiums slightly higher than some competitors
- Best for: Students
- Average cost/month: $181
- Average cost/year: $2,173
- Availability: 26 states
Auto-Owners Insurance
Details:
When you purchase a policy through Auto-Owners Insurance, you work directly with an independent agent for more personalized service. Auto-Owners was founded in 1916 in Lansing, Michigan and today, provides auto, home, life and many other types of insurance in 26 states.
Why we like it
Students can get discounts for maintaining a B or better average, leaving their cars at home while they are away at college, or signing up for Teen Driver Monitoring. There are also many other discounts available, including savings for consistently paying your bill on time.
Pros & Cons
Pros
Many ways to save
Offers many different types of insurance bundles
Independent agents provide personalized service
Cons
Only available in 26 states
No online quotes available
- Best for: Drivers seeking the best customer service
- Average cost/month: $321
- Average cost/year: $3,857
- Availability: All states, except Hawaii
Amica Auto Insurance
Details:
Amica is a mutual insurance company, which means policyholders own a stake in the company. It also happens to be the oldest mutual car insurance company, in business since 1907. The company has an A+ rating from AM Best and an average of 4.4 stars on TrustPilot.
Why we like it
Amica has a solid reputation for reliable customer service and fast and easy claims processing, as exemplified by positive reviews. The company offers many ways to lower your premiums and offers dividends on some policies, which essentially puts cash in your pocket.
Pros & Cons
Pros
Long history of financial stability
Online quote in 8 minutes
Dividend policies pay up to 20% of your premium
Highly rated customer service
Cons
More expensive than average
May cost more if you don’t pay upfront
Dividends not available in every state
- Best for: Best for military families and veterans
- Average cost/month: $172
- Average cost/year: $2,068
- Availability: Only to qualifying military members, veterans and their families
USAA
Details:
USAA is a financial services company serving members of the U.S. Armed Forces, veterans, and their immediate families. The company provides affordable auto insurance with discounts for safe driving, multiple vehicles on the same policy, and even keeping your car in a garage on a military base.
Why we like it
USAA offers many discounts and features tailored toward active military members and their family, such as lower rates for storing your car while you are deployed or for garaging it on a military base. As a full-service financial company, USAA also offers banking and investment services, so you can manage most of your financial needs with one company. Plus, its rates are substantially lower than many other carriers.
Pros & Cons
Pros
Telematics discounts for safe drivers or low-mileage drivers
Lower than average premiums
Online quote in minutes
Cons
Only available to military members, veterans, and their families
No in-person agents
- Best for: Rideshare drivers
- Average cost/month: $226
- Average cost/year: $2,707
- Availability: Every state except Massachusetts and Rhode Island
State Farm
Details:
State Farm insurance is sold through the company’s network of independent agents to ensure friendly, local, personalized service. In business since 1922, today the company provides more than 96 million insurance policies and other financial service products.
Why we like it
State Farm allows drivers to personalize their policies for extra savings. They offer multiple discounts for safe drivers and students. Unlike some other insurance companies, State Farm offers rideshare coverage as an add-on to your auto insurance policy for an average of 15% to 20% more in premium costs.
Pros & Cons
Pros
Friendly local service through independent agents
Easy-to-use mobile app
Flexible bundles
Many discounts available
Cons
No 24/7 customer service
Not sold in Massachusetts and Rhode Island
Accident forgiveness can’t be purchased
- Best for: Homeowners looking to bundle coverage
- Average cost/month: $215
- Average cost/year: $2,571
- Availability: Available in 19 states
American Family Insurance
Details:
Founded in 1927, American Family Insurance (AmFam) is a mutual insurance company, which means its customers are its shareholders. The company provides many types of vehicle and home insurance, as well as life insurance, pet insurance, and business insurance.
Why we like it
American Family Insurance blends low premiums with stellar customer service. Multi-line discounts help drivers save even more, while the company’s telematics program rewards safe driving habits. Reviewers on the App store gave the insurance app 4.7 stars, while TrustPilot reviewers gave the company an average of 4.5 stars.
Pros & Cons
Pros
Excellent customer reviews
Save 25% when you bundle home and car insurance
Discounts for safe driving
Cons
Only available in 19 states
Common Auto Insurance Discounts
Insurance companies love rewarding smart and safe drivers. Seniors in particular can benefit from several discounts, many of which are easy to qualify for:
Safe Driver Discount: Maintaining a clean driving record with no accidents or moving violations shows insurers you’re low-risk, often resulting in noticeable premium reductions.
Defensive Driving Course: Completing an approved course—many of which are available online for under $30—can cut your rates by up to 10%. These courses refresh driving skills and demonstrate proactive safety habits.
Multi-Policy or Bundle Discount: Bundling auto insurance with home, renters, or even life insurance can provide savings. Beyond the savings, it makes managing multiple policies simpler.
Low-Mileage / Pay-Per-Mile Plans: If you drive less than average, some insurers offer discounts or per-mile pricing. This is particularly beneficial for retirees or those who mostly drive locally.
Vehicle Safety Features: Cars with advanced safety equipment, such as airbags, anti-lock brakes, lane departure warnings, blind-spot monitors, or automatic emergency braking, may qualify for additional discounts.
Pay-in-Full / Annual Payment Discount: Some insurers reduce premiums for paying the full annual premium upfront instead of monthly, helping avoid extra fees and lowering overall cost.
Age-Based or Senior Discounts: Many insurers offer special programs for seniors, often combined with defensive driving courses, to reward experience and safe driving.
Finding the cheapest auto insurance doesn’t have to be a guessing game. By comparing multiple providers, evaluating coverage options, and taking advantage of available discounts, drivers can significantly reduce their premiums without sacrificing protection.
While no single company is universally the “cheapest” for everyone, shopping around and understanding what affects rates, such as age, driving history, vehicle type, and mileage, can help you pinpoint the best fit for your needs. Staying informed and proactive ensures you get reliable coverage at a price that works for your budget.
FAQ's
What is car insurance?
Car insurance is a contract between you and an insurer that protects you against financial loss in the event of an accident, theft, or damage involving your vehicle.
Why do I need car insurance?
It’s legally required in most places and protects you financially from costs related to accidents, injuries, and vehicle damage.
What does car insurance cover?
Coverage varies, but generally includes:
Liability (injuries/damages to others)
Collision (damage to your car from a crash)
Comprehensive (non-collision damage like theft, fire, hail)
Uninsured/Underinsured Motorist
Medical payments or PIP (personal injury protection)
by your friends at The Daily Navigator
