Best Cheap Car Insurance Companies of 2024

Affordable. Budget-friendly. Cost-effective. Whatever word you use, sometimes we simply need the best cheap auto insurance.
Today, we are going to review the best cheap auto insurance companies. And even though we are labeling them cheap, it doesn’t mean they skimp on what we need for quality coverage.
Before we get to it, what exactly are we looking for when we say we want the cheapest auto insurance policy? It's not to say we don't want the best car insurance. Instead, we want multiple discounts. Not just one or two here or there. We want numerous car insurance discounts available so we can get the most coverage for the budget. We researched the average rates for annual premiums for drivers in their 30s to get an idea of how these companies compare, plus how many discounts the carriers offer.
Secondly, we want insurance options. Sticking to a budget doesn’t mean we don’t want choices for our affordable car insurance policy. We need to be able to customize our policy the way we want.
Finally, we want to know if the company is financially stable and if it will be there should we file a claim. Oh, and make sure it has a reputation for good customer service.
Based on these factors, let’s explore who makes up our list of the best cheap auto insurance companies.

Overview of the best cheap car insurance companies

Before we get into greater detail, here’s a snapshot of the cheapest car insurance companies and who we think the auto insurance carrier is best for.
Auto Insurance Company
Best for
Bundled savings
Military families
Sticking to a fixed budget
Local agent network
Retirees
Above-average standard features
Farm Bureau
Working through a local office
Those who like specialty features
American Family
Customizing a policy
Root
Tech enthusiasts with good driving records
Wide range of discounts
Those considered high-risk

Best cheap insurance companies

Geico

What do a gecko, a slick app, and great customer service all have in common? Turns out it’s an auto insurance company that’s been around for 85 years.
Geico has made it known it’s a discount auto insurance carrier. One could argue discounts are in Geico’s blood, having started as the first direct-to-consumer auto insurance carrier.
Geico offers a ton of coverage options in addition to the standard auto coverages you need so that you can customize your policy based on your budget. Optional coverages include emergency roadside assistance, car rental reimbursement, and a mechanical breakdown option (think of an extended car warranty). Not to mention a long list of discounts — too many to list here — to lower your premium as much as possible.
But having discounted rates doesn’t mean Geico’s technology is sub-par. You can submit your information online or through the app for instant access or work with an agent. Geico’s website and app are known for being user-friendly so that you can get on with the repair process (and your life) after an at-fault accident — you can even file a claim right at your fingertips.
Geico ranked below the industry average in the J.D. Power 2023 U.S. Auto Claims Satisfaction Study. The company earns our top spot because of its number of discounts available and customer service ratings.

USAA

For our veterans and military families, it’s hard to beat the plentiful number of discounts and options available through USAA.
USAA has a reputation for providing exceptional and affordable rates for its members. In addition to the standard fare of auto coverage options, including roadside assistance and total loss protection. There are at least 12 discounts available to members, from safe drivers to the length of military service.
The only reason USAA is ranked lower among cheap insurance companies is because of the strict requirements for membership. Unless you’re part of the military members family somehow, you won’t have access to the competitive rates, discounts, and fantastic customer service the members enjoy.

Progressive

Progressive might be well-known for its witty commercials, but behind the comedy act is auto insurance with serious ways to save on your policy. Progressive is also renowned for providing multiple discounts to make a big dent in your premiums.
Progressive provides all the standard auto insurance coverages you’re required to carry. But there are many options, such as roadside assistance, loan/lease payoff, car rental reimbursement, and even custom, after-market equipment coverage.
Along with the numerous full coverage options, you have plenty of discounts to lower your premiums. Whether you have a multi-car, multi-line policy or use the Snapshot: Safe Driver discount program. Progressive has the Name Your Price® Tool, which helps you customize your auto policy to fit your current budget.
Progressive gets dinged a little in the 2023 J.D. Power U.S. Auto Claims Satisfaction survey, which ranks 5 points below the industry average. Overall, the coverage options and many discounts mean people save up to $650 per year by switching to Progressive.

State Farm

If you’re looking for a good neighbor who is also frugal, then State Farm may be your answer. Though it’s the largest auto insurance provider in the U.S., the premiums can be small enough for even the tiniest budgets.
State Farm offers standard coverage for each state and an impressive list of coverage options. You can add roadside assistance, car rental reimbursement, and rideshare driver coverage. You can also have specialty coverages like teen drivers or classic cars.
State Farm's overall customer satisfaction scores are above average among the auto industry ratings.

The Hartford

The Hartford insurance may not be as well-known with unlimited commercials and fetching musical lyrics, but since 1984 it has offered discounted coverage rates for retirees. Policyholders over 50 and members of AARP must review all the benefits The Hartford boasts — like discounts and fantastic customer service.
In addition to the standard auto coverages, The Hartford offers useful options such as new car replacement, lifetime car repair assurance, and even Recovercare assistance if you’ve had an accident. There are several ways to save on your premiums with programs such as disappearing deductibles and multi-policy discounts.
The Hartford relies on a network of local agents, easily accessible through the website or customer service. But The Hartford takes advantage of awesome technology, too. They have a great app with convenient features like making payments, summoning roadside assistance, or reporting a claim.
However, The Hartford's customer satisfaction score leaves more to be desired, with the insurer coming in below the industry average in the 2023 J.D. Power U.S. Auto Claims Satisfaction survey.

Erie

Erie Insurance gets high marks as a regional discount auto insurance provider, servicing states from Ohio to North Carolina — and offering tons of discounts along the way. Erie consistently ranks high in overall customer satisfaction and important financial ratings. Erie has a vast network of over 13,000 agents, plus 24/7 customer service, ready to help you with your policy needs.
Erie offers standard auto insurance coverages, but its policies include several standard features other competitors charge extra. Features such as First Accident Forgiveness, diminishing deductible, and a rate lock are a few of the benefits.
Erie has a wide range of options for your policy, making them perfect for those looking to customize their policy. Extras such as pet coverage (up to $500 if your pet is with you in an accident) and rideshare coverage are some of the unique options available.
Erie Insurance ranks high in the 2023 J.D. Power U.S. Auto Claims Satisfaction survey, at second overall.
It’s important to note you can only purchase Erie insurance if you live in one of the following states: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and Washington D.C. — which is why Erie isn’t ranked higher on our list.

Farm Bureau

You can’t reference cheap car insurance without mentioning the Farm Bureau. Farm Bureau consistently offers some of the lowest premiums you can purchase — without sacrificing quality coverage. And by the way, you don’t have to be a farmer to access these rates either.
You do, however, have to pay an annual fee, usually in the $20 to $125 range, which depends on where you live. Farm Bureau is available in all states and D.C. Each Farm Bureau office is individually operated, so you’ll get a quote through your state’s Farm Bureau office.
Farm Bureau offers a few discounts on their low-priced premiums. The discounts available include multi-policy and multi-car, to good student and driver rates. A full list of discounts and coverage options is only available through your state’s FB office.
J.D. Power’s 2023 Auto Insurance Customer Satisfaction Study didn't include Farm Bureau.

Nationwide

Nationwide is a well-known auto insurance carrier, offering many ways to save through its programs and bundling opportunities. Nationwide sets itself apart with the variety of specialized coverage options and programs available so you can customize your policy.
Nationwide has specialty options such as gap coverage, roadside assistance, total loss deductible waiver, and accident forgiveness.
Nationwide is available in almost every state and offers discounts to lower premiums. Nationwide offers the On Your Side Review to ensure you get the most discounts and best coverage possible.
Nationwide ranked below the industry average in the 2023 JD Power U.S. Auto Claims Satisfaction survey. With 24/7 customer service, a website, local agents, and an app, you’ll have access to Nationwide when you need them the most.

American Family

American Family Insurance is available in 19 states, but it’s worth adding to your list if you live in one of the covered areas. The company offers a wide range of coverage options, including ones not offered by other big-name companies, such as gap coverage. You can customize your policy with various custom coverage levels, all while still keeping your discounts.
The American Family offers a ton of discounts. Examples of the available discounts range from safe driving and a good student discount to multi-policy and multi-product.
Where American Family Insurance has room for improvement is its customer service rankings. The 2023 J.D. Power U.S. Auto Claims Satisfaction survey found the company to be above the industry average. But with the number of discounts available, you’ll likely find the right policy for your budget and still meet your customer service expectations.

Other cheap car insurance companies to consider

In addition to the 10 best cheap auto insurance companies mentioned above, there are a few more to consider.

Root

Root is a newcomer to the auto insurance scene, but it’s worth mentioning because of the premise behind the company. Root uses technology to decrease your auto insurance rates since it is an app-based auto carrier. This is perfect for budget-friendly shoppers because it means you’re not paying for as much employee overhead and commissions.
Root is a wild card because it is so new in the industry. It has no financial or customer satisfaction ratings to establish its strength. Root isn't available in all states, however.
Root uses the app and GPS to follow your driving for two to three weeks. Then, based on your driving habits, Root recommends a low-cost policy. You’re encouraged to perform all tasks through the app (to help keep costs down), but a customer service line is available. Root only insures good drivers, which also helps keep the cost of car insurance down. The company claims it can help you save $900 per year.
If you are a good driver and comfortable with app-based technology, you could save hundreds of dollars annually through Root Insurance.

Liberty Mutual

Founded in 1912, Liberty Mutual is no stranger to providing comprehensive coverage. Whether homeowner’s, renter’s, or auto insurance, Liberty Mutual can save money by bundling your coverage policies and various other discounts.
Liberty Mutual offers basic auto coverage but has many options to customize your policy further. Options include collision, Liberty Mutual Deductible Fund® where your deductible reduces over time, gap coverage, and roadside assistance.
Liberty Mutual offers several discounts — among the most of any auto insurance carrier. For starters, if you go online to obtain your quote, you automatically receive a 12% discount. Other discounts include bundling policies, paperless statements, good grades, safe driving, etc.
In 2023, J.D. Power ranked the company six spots below the industry average.

Allstate

Allstate came in with one of the highest average premiums on our list, but it’s worth mentioning that Allstate will insure new drivers who are often considered high-risk.
Allstate features coverage options you don’t always find with other big-name companies. Specialty coverage includes classic cars, rideshare insurance, and even custom sound equipment coverage. Allstate has an impressive list of discounts, so you might be able to get the premium to work for your budget. Not to mention the accident forgiveness and Deductible Rewards to further help with premiums.
Allstate ranked well above the industry average in the 2023 J.D. Power rankings.

Best cheap car insurance companies summary

Carrier
Optional coverage selections
J.D. Power Ranking, 2023
Roadside assistance, car rental reimbursement, mechanical breakdown
16th
Roadside assistance, rental reimbursement, accident forgiveness
Not ranked
Roadside assistance, car rental reimbursement, rideshare coverage, loan/lease payoff, custom parts and equipment, deductible savings bank
18th
Emergency roadside, rideshare, expansive car rental and travel coverage, teen drivers
5th
New car replacement, lifetime car repair assurance, Recovercare assistance, disappearing deductible, accident forgiveness
13th
Pet coverage, full window glass, personal item coverage, roadside and rentals bundle, Erie Auto Plus®
2nd
Farm Bureau
Customized depending on your state
Not ranked
Accident forgiveness, roadside assistance, gap coverage, vanishing deductible, total loss waiver, towing and labor
14th
American Family
Gap coverage, roadside assistance, car rental reimbursement
9th
Root
Rental car or Lyft reimbursement
Not ranked
Collision, rental car reimbursement, roadside assistance, gap coverage, new car replacement, vanishing deductible
19th
Collision, rental car reimbursement, roadside assistance, rideshare insurance, sound equipment coverage
8th

Finding cheap car insurance rates

Our list may provide a background of all the big players in auto insurance, but to truly find the cheapest means of obtaining quotes. Rather than contacting each company directly, you can find online comparison companies providing auto insurance quotes.
Companies such as Gabi and CarInsurance.net, are not insurance companies, nor do they have insurance agents. Instead, their online tools can give you a side-by-side look at various auto insurers and see which offers you the cheapest car insurance based on soft quotes. You'll be connected to an agent once you decide on a company you want to purchase from.
You don't pay fees for using these tools. Instead, the insurance companies pay them to get their quotes to you. You'll get free car insurance quotes from all insurance companies, even ones you may not have considered.

FAQs

How can I save money on my car insurance?
There are several ways to save on your car insurance. In the short term, you can get quotes and compare prices for multiple companies. You can also raise your deductible, which lowers your premiums. In the long run, safe driving and improving your credit score, and driving a newer vehicle can all improve the amount you pay for premiums. You can also find discounts by bundling your auto insurance with your home insurance, rental insurance, and perhaps life insurance. There are also student driver discounts that can help younger drivers.
What affects my rates?
Your driving history plays heavily into your auto insurance rates. If your driving record shows a history of speeding tickets, accidents (especially your fault accidents), and DUI, you'll pay a higher premium. A clean driving record will get you the lowest rates.
What if I have bad credit?
Having poor credit will likely make your auto insurance premium higher. However, it’s not impossible to purchase a policy, even with less-than-ideal credit scores. Be aware, when you are finalizing a policy, the insurance company will conduct a soft pull on your credit report and will finalize your premium based on what is reported back.
What states are most expensive for car insurance?
You may be surprised to know the average cost of auto insurance varies widely depending on your location. According to an Insure.com analysis, Florida residents pay the highest car insurance premiums in the country, with an average of $2,560 per year. Rounding out the top-three are Louisiana and Delaware at $2,546 and $2,137, respectively.
Do I really need the extra coverage the insurance agent told me to purchase?
Each state has minimum coverage requirements, so it’s important to review what is required so you have adequate coverage. Many features such as rideshare coverage, roadside assistance, gap insurance, and many others, are optional but will increase your premium. Ultimately, you have to balance what is best for your budget. You'll want personal injury protection, bodily injury coverage, liability coverage, property damage liability, and uninsured motorists.
How can I be sure I’m getting the best deal?
Using an insurance broker or a service like Gabi to get multiple quotes is best. Getting several quotes means you can conduct your own head-to-head comparison to decide what fits your budget and lifestyle.

The bottom line

Overall, we think Geico deserves the number one spot for the best cheap car insurance companies — and it’s not because they have an adorable gecko for a mascot. Geico has the financial and customer satisfaction ratings we seek in a reputable company while offering us multiple options and discounts.
As you can see, watching your spending doesn’t mean you have to sacrifice quality auto insurance coverage. You may not be able to get all the bells and whistles, but you can rest assured knowing you can find affordable policies that work for your budget.

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Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.

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