Best Cheap Auto Insurance Companies in 2025
Root, GEICO, USAA, State Farm, and Progressive offer cheap rates for a variety of driver profiles.
Car insurance prices increased over 22 percent from 2023 to 2025, outpacing the rate of inflation.1 That’s why we researched hundreds of providers to find auto insurance companies that offer affordable rates without skimping on coverage. We use the latest industry data, independent ratings, and real-life customer experience to assess companies’ rates, claims process, and customer satisfaction.
Who has the cheapest car insurance?
Finding affordable car insurance can make a significant difference in managing your budget. If you are eligible, USAA tends to offer the cheapest car insurance options, with an average monthly rate of $117 for full coverage and just $35 monthly for minimum coverage. However, USAA is exclusively available to military members, veterans, and their families.
For non-military drivers, companies like GEICO, Erie, Nationwide, State Farm, Progressive, and Root frequently provide competitive rates. It’s important to note that Erie is a regional provider, available in only 12 states, while Root operates as a usage-based insurer. Root’s rates are ideal for safe drivers and those with low annual mileage, offering tailored savings for those who meet these criteria.
Below is a summary of the cheapest car insurance companies, organized by the type of insurance you need or the type of driver you are. Comparing quotes from these providers will help you find the best deal for your specific coverage requirements.
| Cheapest by Category | Carrier | Average Monthly Rate | Average Annual Rate |
|---|---|---|---|
| Full coverage | Root | $93 | $1,120 |
| Minimum coverage | GEICO* | $43 | $517 |
| Large provider (available in all 50 states) | GEICO | $144 | $1,731 |
| Low credit score | Erie** | $128 | $1,532 |
| Teens | GEICO* | $408 | $4,891 |
| Seniors | Nationwide | $126 | $1,511 |
| After a DUI | Progressive | $231 | $2,770 |
| After a speeding ticket | Erie** | $147 | $1,765 |
| Military members and veterans | USAA | $117 | $1,407 |
*GEICO offers consistently competitive rates for those seeking affordable minimum coverage as well as teen drivers.
**Erie is known for more affordable rates even with a low credit score or after a speeding ticket.
Auto insurance companies determine your premium based on a variety of factors, including your age, gender, driving history, marital status, and location. As you can see in the table above, providers can specialize in different types of insurance — like car insurance for seniors or for high-risk drivers — so your quotes will vary.
Our Top Options for the Cheapest Auto Insurance
Root – Cheapest for Safe Drivers
Root’s innovative usage-based insurance model determines your premium based on how safely you drive. By primarily insuring drivers who demonstrate good driving habits through their app tracking system, Root is able to maintain lower rates compared to traditional insurers. This makes it an excellent option for safe drivers seeking affordable coverage.
USAA – Cheapest for Military and Veterans
USAA consistently offers some of the cheapest average rates among national insurers, along with various discounts, bundling options, and dedicated resources. However, USAA’s coverage is exclusively available to military members, veterans, and their families. Membership is required to access its benefits, but for those who qualify, USAA provides unparalleled value and customer service.
GEICO – Cheapest for Minimum Coverage
If you’re only looking for state minimum coverage, GEICO is a top choice. Minimum coverage is generally more affordable than full coverage, and GEICO enhances the savings with its competitive low rates. It’s an ideal option for drivers who want to meet state requirements while minimizing their insurance costs.
Summary of the Best 5 Cheap Car Insurance Companies
- Cheapest for Safe Drivers: Root
- Cheapest for Military Drivers: USAA
- Cheapest for Minimum Coverage: GEICO
- Best Value: State Farm
- Cheapest After a DUI: Progressive
Comparison of Cheap Auto Insurance in 2025
When evaluating auto insurance options, it’s essential to compare key features, rates, and discounts provided by different companies. Here is a breakdown of cheap auto insurance providers for 2025:
| Feature | Root | USAA | GEICO | State Farm | Progressive |
|---|---|---|---|---|---|
| Full coverage average | $1,120 | $1,407 | $1,731 | $2,167 | $1,960 |
| Minimum coverage average | $692 | $417 | $517 | $674 | $638 |
| Student discount | No | Yes | Yes | Yes | Yes |
| Bundling discounts | Yes | Yes | Yes | Yes | Yes |
| Review | Root Review | USAA Review | GEICO Review | State Farm Review | Progressive Review |
Root stands out with the lowest average cost for full coverage, making it an excellent option for those seeking comprehensive protection at an affordable rate. For minimum coverage, USAA offers the most competitive rates, but it is exclusive to military members and their families. GEICO, meanwhile, provides a blend of affordability and accessible discounts, such as student savings, making it appealing for younger drivers. State Farm and Progressive also remain reliable choices, with bundling opportunities for homeowners or renters seeking consolidated insurance solutions.
Ultimately, the best auto insurance provider depends on individual needs, budget, and eligibility for discounts.
When searching for affordable car insurance, it’s essential to strike the right balance between low premiums and adequate coverage. The good news is that many insurance providers offer budget-friendly policies without compromising on reliability.
Here’s a guide to help you find the best cheap car insurance tailored to your needs.
1. Compare Quotes From Multiple Providers
The key to finding affordable car insurance is to shop around. Different insurers calculate premiums in various ways, and you may find significant price differences for similar coverage. Platforms like insurance comparison websites make it easy to review multiple offers side by side, saving you both time and money.
2. Take Advantage of Discounts
Insurance companies often provide a variety of discounts that can lower your premium. Some common discounts include good driver discounts, multi-policy discounts (bundling car insurance with home or renters insurance), and safe vehicle discounts. Additionally, students with good grades or drivers who opt for paperless billing may qualify for further savings.
3. Consider Raising Your Deductible
A higher deductible means you’ll pay more out of pocket in the event of a claim, but it also reduces your monthly premium. If you’re a safe driver with a low risk of filing claims, opting for a higher deductible can make your policy more affordable in the long run.
4. Maintain a Clean Driving Record
Your driving history significantly impacts your insurance premium. Keeping a clean record free of accidents, DUIs, or traffic violations can help you qualify for lower rates. If you’ve had accidents in the past, consider looking for insurers that offer accident forgiveness programs.
5. Opt for Usage-Based or Pay-Per-Mile Insurance
If you don’t drive often, usage-based insurance or pay-per-mile policies can be a great way to save money. These policies charge premiums based on how much you drive, making them an excellent option for low-mileage drivers.
6. Review Your Coverage Needs
Make sure you’re not paying for coverage you don’t need. For example, older vehicles with low market value may not require extensive collision or comprehensive coverage. Evaluate your car’s value and personal circumstances to adjust your policy accordingly.
7. Check State Minimum Requirements
Each state has its own set of minimum coverage requirements for car insurance. Be sure you’re meeting these legal obligations, but also consider whether the minimum coverage is enough to protect you financially in case of an accident.
8. Build Your Credit Score
Many insurance providers use credit scores to determine premiums. A better credit score can help you secure lower prices. Work on improving your credit by paying bills on time and reducing debt to take advantage of this potential cost saver.
Final Thoughts
Finding cheap car insurance doesn’t have to mean sacrificing quality. By comparing quotes, leveraging discounts, and tailoring your coverage, you can secure a policy that fits your budget and keeps you protected on the road. Taking the time to research and strategize can lead to both significant savings and peace of mind.
Citations
- Half of Auto Insurance Customers Currently Shopping for New Policies, J.D. Power Finds. J.D. Power. (2024, Apr 30).
https://www.jdpower.com/business/press-releases/2024-us-insurance-shopping-study - It’s Now a Buyer’s Market for Auto Insurance, J.D. Power Finds. J.D. Power. (2025, Jun 10).
https://www.jdpower.com/business/press-releases/2025-us-auto-insurance-study