Best Cheap Car Insurance Companies and Rates - August 2026
Brian McKay
Brian McKay
Founder & Data Architect- Automated Online Rate Data Aggregation
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Car insurance in the United States costs an estimated $95/month with Auto-Owners Insurance, $100/month with Travelers, $95/month with NJM Insurance, $95/month with State Farm, and $89/month with GEICO, according to MonitorBankRates estimates built from NAIC average premium data and each carrier’s typical price positioning. Ratings and full estimates for every major company are below.
Our proprietary MBR Auto Insurance Burden Index measures how hard auto insurance costs hit local incomes against a national baseline of 100: Louisiana carries the heaviest burden at 165.9, New Hampshire the lightest at 64.7.
Figures reflect the most recent official NAIC data available. Your actual premium depends on your state, age, driving record, credit history, vehicle, and coverage choices. Last Updated and Verified: August 29, 2026
Best Cheap Car Insurance Companies
The top-rated auto insurance companies in the U.S., ranked by the MonitorBankRates Carrier Rating, our independent score built from NAIC consumer complaint data (40%), price competitiveness (25%), AM Best financial strength (20%), and J.D. Power customer satisfaction scores (15%). Estimated monthly costs are MonitorBankRates estimates derived from the NAIC national average premium of $105/month adjusted for each company’s typical price positioning. They are planning figures, not quotes.
| # | Company | MonitorBankRates Rating | Est. Cost/mo* | AM Best | NAIC Complaints |
|---|---|---|---|---|---|
| 1 | Erie Insurance | 4.8/5.0 | $89/mo | A+ | Far fewer complaints than expected |
| Best for: Claims satisfaction where available · Pros: #1 in the J.D. Power 2025 Auto Claims Satisfaction Study (743); Rate Lock keeps premiums flat until your policy changes; low complaint volume. · Cons: Only writes policies in 12 states plus D.C.; digital tools more limited. | |||||
| 2 | NJM Insurance | 4.8/5.0 | $95/mo | A+ | Far fewer complaints than expected |
| Best for: Mid-Atlantic drivers · Pros: #2 in the J.D. Power 2025 Auto Claims Satisfaction Study (731); dividend history returning premium to policyholders; very low complaint volume. · Cons: Writes policies in only 6 states; no local agent network. | |||||
| 3 | USAA | 4.7/5.0 | $84/mo | A++ | Fewer complaints than expected |
| Best for: Military families and veterans (Military members, veterans, and eligible family only) · Pros: Typically the cheapest rates of any major carrier; top-tier claims satisfaction; garaging-on-base discount. · Cons: Membership restricted to the military community. | |||||
| 4 | State Farm | 4.6/5.0 | $95/mo | A++ | Fewer complaints than expected |
| Best for: Overall value and local agent network · Pros: Largest U.S. auto insurer; below-average complaint volume; competitive rates especially for young drivers; Drive Safe & Save telematics discount. · Cons: No longer writes new auto policies in every market segment; gap insurance not offered. | |||||
| 5 | Auto-Owners Insurance | 4.6/5.0 | $95/mo | A++ | Fewer complaints than expected |
| Best for: Independent-agent service · Pros: A++ financial strength; strong claims satisfaction; sold through independent agents who can compare options. · Cons: Available in about half of states; quotes only through agents. | |||||
| 6 | Amica | 4.6/5.0 | $110/mo | A+ | Far fewer complaints than expected |
| Best for: Service quality and dividend policies · Pros: Perennial leader in service surveys; dividend policies can return up to 20% of premium; very low complaint volume. · Cons: Premiums often above average; no local agents (direct writer). | |||||
| 7 | Travelers | 4.5/5.0 | $100/mo | A++ | Far fewer complaints than expected |
| Best for: Low complaint volume and bundling · Pros: A++ financial strength; among the fewest complaints of the majors; IntelliDrive telematics program; strong home+auto bundle. · Cons: Mid-pack claims satisfaction; not the cheapest for high-risk drivers. | |||||
| 8 | GEICO | 4.4/5.0 | $89/mo | A++ | Fewer complaints than expected |
| Best for: Lowest rates for good drivers · Pros: Consistently among the cheapest quotes for drivers with clean records; strong digital tools and app; long discount list including federal employee and military discounts. · Cons: Few local agents; claims satisfaction scores run below the industry average. | |||||
| 9 | American Family | 4.3/5.0 | $100/mo | A | Far fewer complaints than expected |
| Best for: Midwest and Western drivers · Pros: Low complaint volume; strong bundling and loyalty discounts; KnowYourDrive telematics. · Cons: Available in only 19 states; A (not A+/A++) financial strength rating. | |||||
| 10 | Nationwide | 4.2/5.0 | $105/mo | A+ | Fewer complaints than expected |
| Best for: SmartRide and SmartMiles usage-based options · Pros: SmartMiles pay-per-mile program suits low-mileage drivers; vanishing deductible available. · Cons: Has tightened underwriting in some markets; average pricing. | |||||
| 11 | Progressive | 4.1/5.0 | $97/mo | A+ | About as expected |
| Best for: High-risk drivers and price shoppers · Pros: Name Your Price tool; competitive for drivers with tickets, accidents, or an SR-22 requirement; Snapshot usage-based discount. · Cons: Claims satisfaction below average; rates can rise notably at renewal. | |||||
| 12 | Mercury Insurance | 4.1/5.0 | $89/mo | A | Fewer complaints than expected |
| Best for: Budget rates in California and the Southwest · Pros: Consistently among the cheapest carriers in California; local independent agents. · Cons: Available in only 11 states; digital experience behind the majors. | |||||
| 13 | Allstate | 4.0/5.0 | $110/mo | A+ | Fewer complaints than expected |
| Best for: Local agents and accident forgiveness options · Pros: Large agent network; Drivewise telematics; accident forgiveness and safe-driving bonus available. · Cons: Rates typically above market average; mid-pack satisfaction scores. | |||||
| 14 | Farmers Insurance | 3.8/5.0 | $121/mo | A | Fewer complaints than expected |
| Best for: Customizable policies through agents · Pros: Wide coverage menu including new-car replacement and accident forgiveness; large agent network. · Cons: Premiums frequently well above market average; has pulled back in some states. | |||||
| 15 | Liberty Mutual | 3.7/5.0 | $116/mo | A | More complaints than expected |
| Best for: ByMile pay-per-mile and RightTrack discounts · Pros: Top-3 J.D. Power 2025 auto claims score (730); ByMile pay-per-mile option; RightTrack telematics discount up to 30%. · Cons: Complaint volume runs above the industry-expected level; base rates above average. | |||||
MonitorBankRates Rating methodology: MonitorBankRates examined consumer complaints reported to state insurance regulators and published by the National Association of Insurance Commissioners (NAIC). The NAIC calculates a complaint index for each insurer measuring its share of total complaints relative to its share of premiums; an index of 1.0 means a company's complaint volume matches its market size, and lower is better. MonitorBankRates weights each group's private passenger auto complaint index across its subsidiaries (40% of the rating), then combines it with price competitiveness computed from state insurance department premium surveys where published, otherwise the company's typical published national price positioning (25%), AM Best Financial Strength Ratings (20%), and scores from the J.D. Power 2025 U.S. Auto Claims Satisfaction Study on its 1,000-point scale (15%). MonitorBankRates conducts this analysis independently, without endorsement by the NAIC, AM Best, or J.D. Power. *Estimated monthly costs are MonitorBankRates estimates: the NAIC national average premium adjusted by each company's typical published price positioning. Your actual quote depends on your state, driving record, age, credit, vehicle, and coverage choices.
Today’s True Monthly Cost of Driving
Loan payment at today’s national average new-auto rate from our monitored lender network, plus NAIC average insurance. Updated daily.
What Car Insurance Costs in the U.S.
Official average auto insurance premiums from the National Association of Insurance Commissioners.
The average annual premium equals about 1.56% of the U.S. median household income of $80,734. In high-premium, lower-income states the share runs far higher, which is what our MBR Auto Insurance Burden Index measures.
Average Car Insurance Cost by State
Where you live is one of the biggest factors in what you pay for auto insurance. Dense urban states with high liability costs, active litigation environments, and many uninsured drivers cost roughly twice as much as the rural Upper Midwest and northern New England. The table shows each state’s NAIC average premium split into its liability, collision, and comprehensive components, plus the state’s minimum required coverage.
Cheapest & Most Expensive States for Car Insurance
Least Expensive States
Lower traffic density, fewer lawsuits, and fewer uninsured drivers keep auto insurance premiums down in these markets.
Most Expensive States
High liability payouts, dense urban traffic, litigation-heavy claims environments, and elevated uninsured driver rates push these states well above the national average.
Minimum Car Insurance Requirements by State
Every state sets its own minimum liability limits, shown as three numbers in thousands of dollars: bodily injury coverage per person, bodily injury per accident, and property damage per accident. A 25/50/25 state requires $25,000 per injured person, $50,000 per accident, and $25,000 for property damage. Twelve no-fault states also require personal injury protection (PIP), and about half of states require uninsured motorist coverage. State minimums are floors, not recommendations: a serious accident routinely exceeds them, leaving you personally liable for the difference.
What Determines Your Auto Insurance Premium
Insurers price a policy on the probability and expected cost of claims from your specific situation. These are the factors that move the number most.
State & ZIP Code
Your state sets the legal and claims environment: required coverages, liability rules, litigation costs, and the share of uninsured drivers. Within a state, urban ZIP codes with dense traffic, higher theft, and more claims cost meaningfully more than rural ones. That is why Louisiana drivers pay roughly twice what Iowa drivers pay for the same coverage.
Driving Record
A single speeding ticket typically raises rates 15 to 25%; an at-fault accident 30 to 50%; a DUI can double the premium and trigger an SR-22 filing requirement. Violations generally affect pricing for three to five years, which is why re-shopping after one falls off your record often produces a large saving.
Age & Driving Experience
Teen drivers cost two to three times more than experienced adults, and rates generally decline through the 20s, flatten through middle age, and tick up modestly past 70. Adding a teen to a parent policy is far cheaper than a standalone teen policy, and good student discounts take some of the sting out.
The Vehicle Itself
Repair costs drive comprehensive and collision pricing: vehicles loaded with sensors and cameras cost far more to fix after even minor collisions. Theft rates matter too. A common sedan with cheap parts is among the cheapest to insure; luxury vehicles, EVs with expensive battery packs, and frequently stolen models cost the most.
Credit-Based Insurance Score
In most states, insurers use a credit-based insurance score as a major pricing factor, and drivers with poor credit can pay as much more as drivers with a recent accident. California, Hawaii, Massachusetts, and Michigan restrict or prohibit the practice.
Coverage Choices & Deductibles
Liability limits above the state minimum, collision and comprehensive coverage, and lower deductibles all raise the premium; higher deductibles and liability-only coverage on older cars lower it. Usage-based telematics programs discount drivers who demonstrate safe habits, often 10 to 30%.
How to Find the Best Cheap Car Insurance
There is no single cheapest car insurance company for everyone. Each company weights age, record, credit, location, and vehicle differently, so the company with the best rate for your neighbor may quote you hundreds of dollars higher. The best cheap auto insurance for your situation is found by comparing, not by choosing a brand on advertising alone. A practical process:
1. Get 3 to 5 Quotes for Identical Coverage
Match liability limits, deductibles, and coverage options across every quote so you are comparing price alone. The cheapest quote for thinner coverage is not the best policy, it is just the cheapest number.
2. Check Complaints & Financial Strength
The best companies pay claims promptly and fairly. Check the NAIC complaint index (1.0 is average; lower is better) and AM Best financial strength ratings before buying on price alone.
3. Right-Size Your Coverage
Carry more than the state minimum liability if you have any assets to protect, consider dropping collision and comprehensive on cars worth only a few thousand dollars, and set deductibles at the highest level you could comfortably pay overnight.
4. Stack Discounts & Re-Shop at Renewal
Bundle auto with home or renters insurance, enroll in telematics if you drive safely, and ask about every discount. Then re-shop at every renewal: the best car insurance rate this year may come from a different company next year, and loyalty is routinely repriced upward.
Types of Car Insurance Coverage
An auto policy is built from separate coverages, each with its own limit and price. Knowing what each one does is essential when comparing quotes: a cheaper quote is often a thinner policy.
Liability Coverage (Required)
Pays for injuries and property damage you cause to others; it never pays for your own car or injuries. Every state except New Hampshire requires it, at the minimums shown in the table above. The national average liability premium is $662 per year. Higher limits cost surprisingly little more and protect your savings and wages from lawsuits.
Collision Coverage
Pays to repair or replace your own car after a crash, regardless of fault, minus your deductible. Required by lenders on financed and leased vehicles. National average: $400 per year. On older cars, weigh the premium against the car’s actual value before renewing it.
Comprehensive Coverage
Covers non-crash damage: theft, vandalism, hail, flood, fire, falling objects, and animal strikes. National average: $196 per year. In hail-prone Plains states comprehensive costs more than collision, a pattern visible in the state table above.
Uninsured / Underinsured Motorist
Pays your medical bills and, with UMPD, car damage when an uninsured or underinsured driver hits you. Roughly one in seven U.S. drivers is uninsured, and about half of states require this coverage. Where optional, it is among the highest-value coverages per dollar.
PIP & Medical Payments
Personal injury protection pays medical costs, lost wages, and essential services for you and your passengers regardless of fault; it is mandatory in twelve no-fault states including Florida, Michigan, New York, and New Jersey. MedPay is a simpler medical-bills coverage available in most other states.
Gap, Rental & Roadside
Gap coverage pays the difference between what you owe on a loan or lease and the car’s depreciated value after a total loss, essential on long loans with small down payments. Rental reimbursement and roadside assistance are inexpensive add-ons worth pricing against standalone alternatives.
High-Risk Drivers: SR-22s and Insurance of Last Resort
After a DUI, a lapse in coverage, driving uninsured, or an accumulation of violations, a state may require an SR-22 (or FR-44 in Florida and Virginia): a certificate your insurer files proving you carry the required liability coverage. The SR-22 itself costs only a small filing fee; the underlying violation is what raises the premium, often steeply. Not every company files SR-22s, and pricing for high-risk drivers varies more between companies than any other segment, which makes comparing quotes most valuable exactly when your record is worst.
Drivers who cannot find coverage in the standard market at any price can turn to their state’s assigned risk pool (also called an automobile insurance plan), which assigns applicants to carriers in proportion to their market share. Every state operates one. Coverage is at state-minimum levels and pricing is high, so treat it as a bridge: most drivers can return to the standard market after two to three years of clean driving. California also runs a Low Cost Automobile Insurance Program for income-eligible good drivers, and several states offer similar affordability programs.
Sources: State insurance departments and automobile insurance plan associations. Requirements and program terms change; confirm details with your state’s Department of Insurance.
Car Insurance Cost Estimator
Estimate a ballpark annual premium from your state’s NAIC average, adjusted for coverage level, driving record, and driver age. This is a benchmarking tool, actual quotes depend on your ZIP code, credit, vehicle, and each company’s pricing model.
Estimate only, benchmarks derived from NAIC state average premiums with typical industry rating factors. It is not a quote. Use the quote tool at the top of this page for real pricing.
How Car Insurance Works
An auto insurance policy is a contract that pays for damage and injuries after a covered accident, up to your coverage limits and after your deductible. You pay a premium, typically in monthly or six-month installments; the insurer pays covered claims and defends you against liability lawsuits. Because driving without liability coverage is illegal in every state except New Hampshire, and because lenders require full coverage on financed cars, nearly every driver carries a policy, and the real question is whether you are paying more than you need to for it.
Reading the Numbers: What 25/50/25 Means
Liability limits are quoted as three numbers in thousands of dollars: bodily injury per person, bodily injury per accident, and property damage per accident. A 25/50/25 policy pays at most $25,000 to any one injured person, $50,000 total per accident, and $25,000 for property damage. Those numbers sound large until you price a hospital stay or a totaled new SUV; anything you owe above your limits comes out of your assets and future wages. Moving to 100/300/100 usually costs far less than most drivers expect because serious claims are rare.
Full Coverage vs. Liability Only
Nationally, liability coverage averages $662 per year and adding collision and comprehensive brings the total to $1,258. The rule of thumb: when your car’s value drops below roughly ten times the annual cost of collision and comprehensive, liability-only starts to make financial sense, provided you could absorb the loss of the car. On financed and leased vehicles the decision is made for you; lenders require full coverage, and gap insurance is worth adding when the loan balance exceeds the car’s value.
Why Rates Keep Rising
Auto insurance has run well ahead of overall inflation in recent years. Repair costs have jumped as vehicles filled with sensors, cameras, and aluminum panels; used car values reset total-loss payouts higher; medical and litigation costs keep climbing; and severe weather drives comprehensive losses. Insurers pass these through as rate increases approved by state regulators, which is why even claim-free drivers have seen renewals jump, and why comparing quotes at renewal matters more now than it has in decades.
How to Lower Your Premium
The proven levers, roughly in order of impact: shop 3 to 5 companies at every renewal (loyalty is routinely repriced upward); raise your deductibles to the highest level you could comfortably pay overnight; bundle auto with home or renters coverage; enroll in telematics if you drive safely and little; drop collision and comprehensive on low-value cars; keep your record clean and let old violations age off; and maintain strong credit in states that permit credit-based insurance scoring. High-risk drivers save the most by comparing, because companies disagree most about exactly those profiles.
Bundling Home and Car Insurance in the U.S.
Most carriers advertise a discount for keeping both policies in one place. No regulator publishes a verified figure for how large that discount is—NAIC premium data reports what people actually paid, with any discount already applied and inseparable from the rest of the price. What can be established from public data is which carriers write both lines here, what each line costs, and how a carrier’s complaint record on one line compares with the other.
The combined figure covers one home and one insured vehicle. NAIC reports auto premiums per insured vehicle, so a two-car household in the U.S. would run closer to $3,927 per year.
12 Carriers Write Both Home and Auto in the U.S.
You can only bundle with a carrier that writes both lines. Ratings are the MonitorBankRates Carrier Rating for each line separately—they are scored on different studies and are not interchangeable.
| Company | Home rating | Auto rating | Home complaints | Auto complaints |
|---|---|---|---|---|
| USAA Eligibility restricted | 5.0 | 4.7 | Far fewer complaints than expected | Fewer complaints than expected |
| Erie Insurance | 4.6 | 4.8 | Far fewer complaints than expected | Far fewer complaints than expected |
| Amica | 4.6 | 4.6 | Far fewer complaints than expected | Far fewer complaints than expected |
| Auto-Owners Insurance | 4.6 | 4.6 | Far fewer complaints than expected | Fewer complaints than expected |
| State Farm | 4.6 | 4.6 | Fewer complaints than expected | Fewer complaints than expected |
| Travelers | 4.3 | 4.5 | Fewer complaints than expected | Far fewer complaints than expected |
| American Family | 4.4 | 4.3 | Far fewer complaints than expected | Far fewer complaints than expected |
| Nationwide | 4.3 | 4.2 | Fewer complaints than expected | Fewer complaints than expected |
| Allstate | 3.9 | 4.0 | About as expected | Fewer complaints than expected |
| Progressive | 3.8 | 4.1 | More complaints than expected | About as expected |
| Farmers Insurance | 3.8 | 3.8 | About as expected | Fewer complaints than expected |
| Liberty Mutual | 3.3 | 3.7 | Far more complaints than expected | More complaints than expected |
Chubb writes homeowners coverage in the U.S. but not auto. NJM Insurance, GEICO, Mercury Insurance write auto but not homeowners. Bundling is not an option with those carriers, whatever discount they advertise on their other lines.
Where a carrier’s two records disagree
A discount is worth less than a clean claims experience on the policy you are more likely to use. These carriers land in different NAIC complaint bands on their two lines—1.00 is the level expected given premium volume, so higher is worse:
- USAA—homeowners 0.45 (far fewer complaints than expected), auto 0.68 (fewer complaints than expected).
- Allstate—homeowners 1.10 (about as expected), auto 0.90 (fewer complaints than expected).
- Progressive—homeowners 1.20 (more complaints than expected), auto 0.95 (about as expected).
- Liberty Mutual—homeowners 1.51 (far more complaints than expected), auto 1.20 (more complaints than expected).
Source: NAIC complaint index data. A gap in either direction is a reason to price the two policies separately before accepting a bundle.
How to check what bundling is actually worth to you
- Pick three carriers from the table above that write both lines in the U.S..
- Get a standalone quote for each policy, with identical coverage limits and deductibles at every carrier.
- Then ask for the bundled price at the same three carriers, same limits.
- Compare the bundled total against the cheapest standalone combination you found—they are frequently not the same carrier.
- Before deciding, check both complaint records above and each carrier’s AM Best rating.
The NAIC’s own consumer guidance lists insuring your home and car with the same company as a discount to ask about—it publishes no figure for what it is worth, and neither do we.
Methodology & Data Sources
Government & Regulator Data, Not Advertiser Data: The cost figures on this page come exclusively from official sources: the National Association of Insurance Commissioners (NAIC), which publishes average auto insurance premiums by state from regulator filings, and the U.S. Census Bureau, which supplies the household income data behind our affordability analysis.
NAIC Average Premiums: State averages combine the liability, collision, and comprehensive average premiums from the NAIC Auto Insurance Database Report for the most recent year published (2022). NAIC data lags the current market by roughly two years; industry rate filings show premiums have risen further since, so the figures shown are a conservative floor.
State Minimum Requirements: Minimum liability limits and mandatory add-on coverages are compiled from each state’s financial responsibility laws and are reviewed for changes as states raise their minimums. Confirm current requirements with your state’s DMV or Department of Insurance before making coverage decisions.
Live MonitorBankRates Lender Data: The auto loan rates powering the "True Monthly Cost of Driving" figures are proprietary MonitorBankRates data. Our systems track rates directly from the official websites of over 8,000 banks and credit unions; the national new-auto and used-auto averages are computed nightly across every verified lender rate in our monitoring network and refreshed on this page daily.
MBR Auto Insurance Burden Index: Our proprietary MBR-AIBI score compares each state's average premium against local incomes, with 100 representing the national baseline: premium as a share of median household income (60% weight) and the premium level relative to the national average (40%). The full methodology and rankings for all 50 states and D.C. are published on our Auto Insurance Burden Index page.
Carrier Ratings: The MonitorBankRates Carrier Rating combines NAIC consumer complaint data (40%), price competitiveness (25%), AM Best financial strength ratings (20%), and J.D. Power 2025 U.S. Auto Claims Satisfaction Study scores (15%). The analysis is conducted independently, without endorsement by the NAIC, AM Best, or J.D. Power.
A Note on the Quote Tool: The insurance quote comparison widget on this page is provided by a third-party advertising partner, and we may receive compensation when you use it. It is clearly separated from our data content, and advertiser relationships have no influence on the government figures presented here.
Update Cadence: NAIC averages are refreshed when the next annual report is published, minimum requirements as states change their laws, and carrier ratings as new complaint, ratings, and study data is released. Every figure’s source and vintage is labeled where it appears.
Frequently Asked Questions about Car Insurance
Which states have the most expensive car insurance?
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What car insurance is required by law?
What is full coverage car insurance?
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Why is my car insurance so expensive?
Does my credit score affect my car insurance rate?
What is an SR-22?
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Is liability-only insurance enough?
Can I bundle home and car insurance in the U.S.?
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Most Expensive States for Car Insurance
- Louisiana: $1,743/yr
- Florida: $1,703/yr
- New York: $1,676/yr
- District of Columbia: $1,629/yr
- Rhode Island: $1,574/yr
Car Insurance by State
