After the global COVID-19 pandemic bursted followed by its economic impact, it’s safe to say that most people are searching for new ways to save money and reduce their overall costs and expenses more than ever now. One of the best ways to put some spare change in your pocket at the end of the month is to switch insurance companies and find an insurer that provides similar (or better) coverage with cheaper car insurance quotes .
Recent surveys have found that 70% of all Millennial and Gen Z policyholders were unsatisfied with their insurance rates, and that they would be willing to spend at least an hour comparing policies if it meant they could save at least $100 on their policy. The good news is that with today’s online car insurance quote comparison platforms and marketplaces , it’s easier than ever to get instant offers from multiple auto insurers!
In this article, we’re going to cover 2 major topics for those who are seeking for a new and cheaper auto insurer:
What are the cheapest car insurance companies? (based on average policy cost)
What are the best car insurance companies? (based on ratings)
If you’re ready to start saving money and find an auto insurance company that you can be happy with at the end of the day, then keep on reading to find out some of the best insurers in the nation.
The first topic we’ll examine is what are the cheapest car insurance companies. While customer service is certainly an important factor and having an excellent coverage is more important, most policyholders are more concerned about how to save money on their auto insurance than they are with getting top-notch service and coverage. While the following providers do have positive customer reviews as far as service goes, as well as excellent coverage options, they’re better known for their affordable premiums , driver discounts, and fair pricing. Let’s take a deeper look!
Insurer | Minimum Coverage Monthly | Full Coverage Monthly | Roadside Assistance Monthly | GAP Insurance |
---|---|---|---|---|
USAA | $34 | $74 | $1-$1.5 | $269 (flat) |
GEICO | $40 | $98 | $1.2 | None |
State Farm | $52 | $104 | $1 | None |
See more below:
Company | Insuranks Rating | Average Monthly Quote | Best For |
---|---|---|---|
USAA | 4.75/5 | $34 | Military families |
GEICO | 4.5/5 | $40 | Cheapest car insurance quotes if you're not in the army |
State Farm | 4.5/5 | $52 | Peace of mind |
ClearCover | 3.8/5 | $55 | Technology-centric car insurance |
Gabi | 4/5 | $60 | Online auto insurance comparison |
Progressive | 4.8/5 | $63 | Coverage standards and high risk drivers |
Root | 3/5 | $65 | Low rates; Tech savvy drivers looking to get rewarded for improving their driving through the app |
Mercury | 3.9/5 | $70 | Cheapest rates for a basic coverage |
NJM | 4.5/5 | $79 | Best car insurance for DUI in NJ, PA, CT and OH |
Costco Ameriprise | 3.7/5 | $86 | Discounts |
Erie | 4.1/5 | $87 | New Drivers |
Amica | 4.5/5 | $100 | Customer satisfaction |
Travelers | 4.5/5 | $100 | Tailored car insurance policies at affordable rates |
Freeway | 3.7/5 | $100 | High risk drivers, Spanish speakers & drivers in need of SR22 |
- As you can see at this car insurance rate comparison table, the cheapest car insurance company is USAA with an average car insurance cost of $35 per month and no competitors. The only thing is you have to be in the military or be related to someone in the military to enjoy it.
Auto insurance companies determine your rates based on many different factors, like age, gender, state of residence and location, vehicle type, driving record, driving habits, credit score, coverage type and amount and so much more. Although the prices vary due to these factors, these car insurance quotes can be predicted.
Minimum Coverage Monthly | Full Coverage Monthly | Roadside Assistance Monthly | GAP Insurance |
---|---|---|---|
$34 | $74 | $1-$1.5 | $269 (flat) |
The United Services Automotive Association was started in 1922 , shortly after World War I, when automobiles became popular in the United States. > USAA was founded by 25 military members and to this day is only available for members of the armed services and their immediate families.
Although they’ve been encouraged to open their policies up to civilians, they’ve stayed firm in their commitment to only provide service to the military. Their explanation? By catering to a smaller group of individuals, which also happen to be highly disciplined, they’re able to keep their costs low for their policyholders.
It’s not just a marketing gimmick! Our average car insurance cost per month research shows that the average cost for a one year USAA full coverage car insurance policy was just $885 per year, or $74 per month, or even $405 per year or $34 per month for minimum liability coverage , which is 50% to 75% cheaper than other major insurers like Nationwide and Allstate .
Read more:
Minimum Coverage Monthly | Full Coverage Monthly | Roadside Assistance Monthly |
---|---|---|
$40 | $98 | $1.2 |
GEICO is an anagram that stands for Government Employees Insurance Company. It was actually founded by one of the founding members of USAA, Leo Goodwin Sr . Frustrated by the fact that he couldn’t be promoted to a large shareholder due to his civilian status, he decided to start his own competing insurance company in 1936.
Since then, GEICO has grown into one of the nation’s largest insurers, serving both military and civilians alike (although they do offer considerable discounts to military service members). The average price for a six-month GEICO car insurance policy is $40 per month.
Minimum Coverage Monthly | Full Coverage Monthly | Roadside Assistance Monthly |
---|---|---|
$52 | $104 | $1 (approximately) |
The second most affordable auto insurer in the country was State Farm. The average six-month policy costs $310, making it just incrementally more expensive than USAA. State Farm was started in 1922 by a farmer turned insurance broker and has since grown to the largest property and casualty insurer in the United States. State Farm is also known for its exceptional customer service.
Read more:
Get all the best quotes from leading providers in a click of a button!
Now that you’ve had a chance to see what are the cheapest car insurance companies, it’s time to look at another side of the coin. Namely, the best insurance companies, based on overall customer satisfaction and reviews. While saving money is certainly important, some customers would rather pay a little extra in return for a higher level of customer experience, financial strength, etc.
Let’s take a quick look!
Company | Insuranks Rating | Average Monthly Quote | Best For |
---|---|---|---|
Progressive | 4.8/5 | $63 | Coverage standards and high-risk drivers |
USAA | 4.75/5 | $34 | Military families |
GEICO | 4.5/5 | $40 | Cheapest car insurance quotes if you're not in the army |
State Farm | 4.5/5 | $52 | Peace of mind |
NJM | 4.5/5 | $79 | Best car insurance for DUI in NJ, PA, CT and OH |
Amica | 4.5/5 | $100 | Customer satisfaction |
Travelers | 4.5/5 | $100 | Tailored car insurance policies at affordable rates |
Erie | 4.1/5 | $87 | New Drivers |
Gabi | 4/5 | $60 | Online auto insurance comparison marketplace (agency) |
Progressive is the 3rd largest car insurance provider in America and has ranked as our #1 best car insurance company on all aspects (see below).
Average car insurance cost per month : $63
Read more:
How much is Progressive car insurance cost
PROS
- Excellent coverage as standard
- Unbelievable choice of options
- Brilliant range of online resources, including the quote tool
CONS
- Not the best option for high risk drivers
BEST FOR: Setting fantastic standards for any type of coverage, as long as you are not a driver of high risk.
We used 1-5 scale ratings:
5: Excellent
4: Good
3: Fair
2: Bad
1: Very bad
Parameter | Rating |
---|---|
Time | 5 |
Online | 5 |
Phone | 5 |
Face to face | 5 |
Rates | 5 |
Coverage | 5 |
Choice | 5 |
Speed | 5 |
Savings | 5 |
All States | 5 |
High Risk | 3 |
Ease | 5 |
Are you surprised to see USAA ranked in our top three cheapest and best list? Well, you shouldn’t be. The reason that USAA is ranked among the cheapest insurers in the nation is the same reason they’re ranked among the best overall insurers in the nation- their focus on catering to military personnel.
USAA only has around 12.8 million members, which is less than half of what Statefarm and Geico have. However, their smaller client base allows them to provide more personal, friendly, and complete service to their policyholders. If you’re in the military (or have a military spouse) then you and your kids are eligible to be insured!
Amica Mutual Insurance is a mid-size insurer and is actually the oldest automobile insurance provider in the United States! Founded in 1907, Amica Mutual has been in business for well over a century, rank #3 with a 4.5/5 rating on our test, has an ‘A+’ ranking by the Better Business Bureau , and a 4.6/5-star rating by Bankrate , one of the leading financial journals in the country.
Amica Mutual is known for providing high-end service to its policyholders and offers a number of additional auto insurance benefits that most other insurers don’t offer, including:
Free airbag repairs
Free lock repair and re-keying
Free repair of damaged auto glass
Compensation for time spent in court claims
Up to $1,000 towards bail bonds
Other companies that ranked #3 with 4.5/5 on our review: State Farm, GEICO, Travelers and NJM.
Like Amica Mutual Insurance, Erie Insurance is another mid-sized insurer. The average cost for a six-month policy is just $195, which also makes it one of the cheapest insurers as well! The one drawback of Erie Insurance is that they currently only serve twelve states .
If you do live in one of the twelve states that are covered by Erie Insurance, though, we definitely recommend checking them out. The company has won numerous awards for its commitment to equality both in the workplace, overall customer service, and the opportunities they provide minority customers with.
Another provider (not a company) worth noting is digital auto insurance marketplace Gabi , that scored 4/5 on our review thanks to delivering some of the better rates and customer experience in the industry.
Get all the best quotes from leading providers in a click of a button!
I just noticed the Geico Mobile app deducts points from their customer if someone tailgates you, it deducts points from the customer. If you driving on a Main Rd, and someone is getting ready to run a stop sign, and you have to stop even though you have the right of way, the Geico Mibile App detects this, like a car was in front of you. So the Mobile App needs some improvements. When I drive. My ex-husband always tells me, I'm too far away from cars, and I need to get closer, Geico Mobile App has detected me, Like I'm close on cars, and a lot of times, I think the app is detected the cars in back of you, are surrounding you. But not necessarily you while you are driving, the app needs to improve in being able to distinguish the difference in your car from what another car behind you is doing. Because I get tailgated a lot when driving, the mobile app detected this as it was my fought.
I have Progressive and was Rear ended by a guy that also had Progressive Insurance His Fault In Minnesota took over 4 months to be contacted for est then they send me a check no explanation of why they didn't cover mechanical repairs caused by accident and decided $60 hr for auto body labor -I charge $120 hr I restore Classic cars - lost my business
I been a loyal customer of Geico for 30 years. On Christmas Day 2021, I was stopping at a red light to make a left turn. I was stopped next to a police car, when an elderly driver approaching from the opposite direction crossed several lanes and hit me head on. It was purely the elderly lady’s fault. A few days later, the Geico adjuster gave my car a cursory look over, and estimated the hangar to be $6500. All body shops were booked until February, so my car was towed to my house so it wouldn’t incur additional storage fees. On the 3rd week following the accident, I contacted the body shop of my choice, who sent a tow truck to pick up my car, at which time the tow truck driver noticed that as a cause of the accident, the driveshaft was pushed into the engine and made a huge hole in the engine. At that point I notified my Geico claims adjuster, who, a couple days later, went down and wrote a supplemental report totaling my car, (this was on a Thursday). He indicated it would take 3days before they would issue a check. I contacted him on The following Monday, when he indicated he should have the check on Wednesday, and would hand deliver it to me. Wednesday came, and after 4 phone calls and a few texts, I never received a check, and he and his boss stopped returning my calls. All other parties, the body shop, storage facility, etc. received payment, I have not! They say they care, and want to provide great service, but the do not live up to their word. I’ve been without a car now for 33 days. I purchased one, but can’t take delivery till I receive the check from Geico. The adjuster has also been aware of this. Geico, our adjuster, and his manager do not appear to have have a sense of urgency. Being loyal customer for 30 years appears to not make a difference. I’m planning on insuring my Vehicles, including my RV with a company who has my back!!!!!
I was a loyal GEICO customer for 15 years, with a pristine unblemished driving history and high coverage levels [and had never filed a previous claim]. I recently had a minor fender bender that was deemed by GEICO Claims to be '100% my fault.' Shortly thereafter, I received a form follow-up letter from GEICO stating that, for that reason, GEICO would not pay for damage repairs to my vehicle. A shocker to me. Does an insurance policy with these terms really represent meaningful protection? Thank G-d that it was a minor accident. I now do business with a carrier that has my back. BUYER BEWARE! It was definitely an eye opener for me. An elderly 86 y.o. male driver, with minimal situational awareness swerves abruptly into my lane, dragging his driver side panel against my front passenger side bumper. No witnesses, other than this unintelligible elderly male driver, his wife and a police officer that showed up on the scene twenty minutes later to record statements. The icing on the cake --- The 'final' verdict was rendered by Claims Adjuster #2, that contacted me several weeks after I was informed by Claims Adjuster #2, that the case was closed, and that the fault was clearly that of the elderly gentleman, and that they would be receiving no claims monies [Again, a complete absence of anything resembling 'no-fault coverage' on either side].
We had Allstate roadside assistance through their SUV insurance coverage and were always delighted by their fair service and treatment.