Cheap car insurance does not have to mean poor coverage. The best cheap insurers balance low rates with strong financial strength and reliable customer service. Rates can vary dramatically based on your age, driving record, location, and credit profile. For minimum coverage, GEICO offers rates as low as $41 per month, while Travelers leads for cheap full coverage at $139 per month. Understanding how your profile affects rates is key to finding cheap car insurance that still provides adequate protection.
Cheapest Full Coverage Car Insurance: Travelers
Travelers offers the cheapest full coverage car insurance among major insurers at an average of $1,664 per year, or approximately $139 per month. Full coverage includes liability, collision, and comprehensive insurance. Despite the low price, Travelers maintains strong financial ratings and offers a full suite of coverage options, including rideshare coverage and gap insurance. For drivers who want cheap car insurance without sacrificing comprehensive protection, Travelers is the clear leader.
Cheapest Minimum Coverage: GEICO
GEICO offers the cheapest minimum coverage car insurance at $494 per year, or about $41 per month. Minimum coverage varies by state but generally includes liability insurance to cover damage you cause to others. GEICO's minimum coverage is ideal for older cars worth less than $5,000, where the cost of full coverage may exceed the vehicle's value. GEICO also offers an easy-to-use mobile app and the widest range of discounts among cheap car insurance providers.
Cheap Car Insurance by Driver Profile
Rates for cheap car insurance vary significantly based on your driver profile. Progressive offers the cheapest rates for young drivers at $3,685 per year for full coverage. Travelers provides the best rates after a speeding ticket at $2,159 per year and after an accident at $2,304 per year. For drivers with a DUI, Progressive again leads at $2,810 per year. Travelers also offers the cheapest rates for drivers with poor credit at $2,862 per year. The rate difference between profiles can be three times or more, so shopping around is essential.
| Driver Profile | Cheapest Company | Annual Rate |
|---|---|---|
| Full Coverage (avg) | Travelers | $1,664 |
| Minimum Coverage | GEICO | $494 |
| Young Driver | Progressive | $3,685 |
| Speeding Ticket | Travelers | $2,159 |
| After Accident | Travelers | $2,304 |
| After DUI | Progressive | $2,810 |
| Poor Credit | Travelers | $2,862 |
How to Lower Your Rate on Cheap Car Insurance
To get the cheapest car insurance rates, shop around every six to twelve months, as rates change frequently. Bundle your car insurance with home or renters insurance for multi-policy discounts. Ask about every available discount, including good driver, good student, low mileage, defensive driving, and paid-in-full discounts. Consider usage-based insurance programs like Progressive's Snapshot or State Farm's Drive Safe & Save, which use telematics to reward safe driving with discounts of up to 30%.
Minimum vs Full Coverage: What You Need for Cheap Car Insurance
Minimum coverage is the cheapest car insurance option but only covers damage you cause to others, not your own vehicle. If your car is worth more than $5,000, full coverage is recommended because the cost of replacing your car out of pocket would far exceed the premium savings. Full coverage includes collision and comprehensive insurance, which pay to repair or replace your car after an accident, theft, or weather damage. For cheap car insurance that still protects your assets, compare multiple quotes and choose the right coverage level for your situation.
State-by-State Cheapest Car Insurance
The cheapest car insurance company varies significantly by state. In California, GEICO and Wawanesa often offer the lowest rates. In Texas, State Farm and Travelers are competitive. New York drivers may find the cheapest rates with GEICO or Progressive. Florida, which has the highest average rates in the country, sees competitive pricing from State Farm and GEICO. Michigan, known for its unique no-fault system, has the most variation in rates. Checking state-specific quotes is essential for finding truly cheap car insurance.
Disclaimer: Rates and terms are subject to change. This content is for informational purposes only and does not constitute financial advice. Card terms and availability may vary. Always verify current rates directly with the financial institution. Aurwallet is not affiliated with any of the products mentioned.