Cheapest Car Insurance Companies of 2024

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Last Updated: May 12, 2023

Geico Car Insurance

Geico is the best option for drivers looking for excellent auto coverage at affordable rates. This car insurance company is massively popular among drivers for offering the lowest average premiums for both minimum and comprehensive coverage. Geico also enjoys an A++ rating from AM Best, a higher J.D. Power score for customer satisfaction, and an A+ rating from the Better Business Bureau (BBB).

Geico is one the service providers that offer a wide selection of auto coverage and cheaper car insurance rates. Along with standard coverage options, the company lets drivers enjoy some additional perks, such as:

• Rideshare insurance
• Mechanical breakdown insurance
• Rental car reimbursement
• Emergency roadside assistance

Compared to other car insurance companies, Geico has more financial stability. It means the company has the solid financial backing to pay for your insurance claims. A J.D. Power Auto Insured Study showed that when 1000 respondents were surveyed in 2022, nearly 12% chose Geico as their perfect car insurance partner.

In terms of cost, Geico is one of the most affordable providers you can see in the market. If you decide to close a deal with this car insurance company, you may have to pay about $1,308 per year for full coverage car insurance. The company also offers many promotions and incentives to help drivers save money. For example, you can enjoy a good driver discount (up to 26% off), a multi-vehicle discount (up to 25% off), and a good student discount (up to 15% off).

Price Range

Average Annual Premium for Minimum Coverage: $373

Average Annual Premium for Minimum Coverage: $1,308

USAA Auto Insurance

USAA deserves to be among the cheapest car insurance companies for its affordable coverage options. The company stands out from the competition for earning a higher ranking on multiple factors. USAA also has a higher J.D. Power customer satisfaction score, ensuring you're in good hands. USSA is one of the companies you can rely on regarding value and customer satisfaction. You will find numerous affordable high-coverage options, including accident forgiveness, at the official website of the USAA.

USAA has strict eligibility requirements, unlike other car insurance companies, and not every driver qualifies for coverage options. The company is best suited for veterans and military members. Along with comprehensive coverage, the USAA also offers some additional perks, such as:

• Rideshare insurance
• Car replacement insurance
• Glass coverage
• Guaranteed asset protection
• Accident forgiveness
• Rental car reimbursement
• Roadside assistance

Although USAA is an online car insurance provider, policyholders are still impressed by the company's excellent customer service. In addition, the company receives an A++ rating from the AM Best for its strong financial position and an A+ rating from the Better Business Bureau.

USAA is famous for its affordable high-coverage options and exemplary customer service. The company may demand you to pay up to $1,054 per year for full coverage car insurance. In addition, USAA offers several discounts and incentives based on your safety, multiple policies, and safety features.

Price Range

Average Annual Premium for Minimum Coverage: $371

Average Annual Premium for Minimum Coverage: $1,361

State Farm Auto Insurance

State Farm is another affordable choice for finding a reliable car insurance provider in the U.S. A report by the National Association of Insurance Commissioners reveals that State Farm is the largest auto insurance provider in the United States based on market share.

State Farm also features the highest average J.D. Power score, making it one of the best choices for customer satisfaction. Being the most prominent auto insurance provider in the U.S., this company is no stranger to claiming satisfaction. In addition, the full coverage premiums of the State Farm are some of the lowest around, whereas the minimum coverage premiums are just average.

An A++ rating from the AM Best indicates that State Farm has superior financial health. Along with minimum and maximum coverage premiums, the company also offers:

• Rideshare driver coverage
• Car rental coverage
• Travel expenses coverage
• Emergency roadside assistance

Beyond standard auto insurance, State Farm offers a full range of other insurance products. You can also save hundreds of dollars on your car insurance through the discount programs of State Farm. For example, with the Drive Safe & Save discount program, you can enjoy 30% off your coverage premiums.

Price Range

Average Annual Premium for Minimum Coverage: $464

Average Annual Premium for Minimum Coverage: $1,480

Nationwide Auto Insurance

Nationwide is another excellent addition to the list of the cheapest car insurance companies. The company is famous for offering one of the broadest car insurance networks, with coverage available in 47 states.



Nationwide also excels from the crowd regarding the lowest average car insurance rates. It is an ideal option if you can bundle your insurance products to save on overall coverage. Like other affordable car insurance companies, Nationwide also features an A+ rating from the Better Business Bureau and A++ from the AM Best, indicating that you're getting the best deals at unbeatable rates.

Price Range

Average Annual Premium for Minimum Coverage: $567

Average Annual Premium for Minimum Coverage: $1,422

How to Choose the Best Cheap Auto Insurance

Choosing the best cheap auto insurance may seem daunting, but it doesn't have to be. Here are several factors to consider to help you make an informed decision:

• Determine Your Coverage Needs: Before shopping around, determine what coverage you need. This could range from comprehensive and collision coverage to liability only. Consider factors such as the age and value of your vehicle, your driving habits, and the level of financial risk you're willing to take.
• Compare Different Insurers: Don't settle for the first insurer you come across. Instead, get quotes from multiple companies to find the best deal. Remember, the cheapest quote may sometimes be better. You need to consider the overall value you're getting for your money.
• Check Customer Reviews and Ratings: Look at the customer service ratings of potential insurers. A cheap policy will only be worth it if the company has good customer service or a reputation for handling claims.
• Consider Discounts: Many insurers offer discounts for safe driving, bundling multiple policies (like auto and home insurance), and for certain professions or affiliations. Make sure to ask about these when getting quotes.
• Review the Policy Before Signing: Always read the fine print before signing up for a policy. Ensure you understand the terms and conditions, including deductibles, coverage limits, and exclusions.
• Consult with an Insurance Agent: If you need clarification, consult an insurance agent. They can help you understand the different options and guide you toward a policy that suits your needs.

Remember, the goal isn't just to find the cheapest auto insurance but a policy that offers good value for money while providing the coverage you need. Regularly reviewing your policy and comparing rates can also ensure you continue to get the best deal.

How We Chose The Best Cheapest Auto Insurance

Evaluating insurance companies and their quotes to select the best and cheapest options involves a systematic approach. Here's what you need to consider:

• Coverage Options: The first thing to check is whether the insurance company provides the coverage you need, such as liability, collision, comprehensive, personal injury protection, and uninsured/underinsured motorist coverage.
• Premiums: Compare the premium amounts of the different insurance companies. You'll pay this for the policy, usually every month. Remember, cheaper is only sometimes better. You want a policy that provides good value for the money.
• Deductibles: You'll have to pay out of pocket before your insurance starts to cover costs. Higher deductibles usually mean lower premiums, but make sure you can afford to pay the deductible in the event of an accident.
• Discounts: Check if the insurance companies offer any discounts you might be eligible for, such as safe driver discounts, discounts for having multiple policies, or discounts for having safety features in your car.
• Company Reputation: Look at reviews and ratings for insurance companies. This includes checking their financial stability (which affects their ability to pay claims), customer service reviews and claims satisfaction ratings.
• Claim Process: Evaluate the claim process of the insurance companies. It should be straightforward and user-friendly. Some companies offer features like online claim filing and tracking, which can make the process easier.
• Policy Limits: Look at the policy limits of each company. This is the maximum amount the company will pay out for a claim. Ensure the limits are high enough to protect you financially in a major accident.
• Extras: Some insurance companies offer extra features like accident forgiveness, roadside assistance, or rental car coverage. While these may increase the cost of the policy, they can provide valuable protection and convenience.

Considering all these factors, you can evaluate and compare different insurance companies and their quotes effectively, helping you choose the best and cheapest insurance option that meets your needs.am for your needs.

Cheapest Car Insurance: Bottom Line

Car insurance is required by law for drivers in most states. It is a significant investment that can help you save your hard-earned dollars on auto repairs. Having proper car insurance on your side also enables you to avoid costlier expenses if you get involved in a car accident. Try to find the best car insurance company that can offer maximum value to your investment.