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There’s just no way around it: Car insurance is something you need. Your state car insurance regulations probably require you to have some sort of insurance coverage, your car financing or leasing company probably requires coverage, and let’s face it, you probably don’t want to have to come up with thousands of dollars for vehicle repairs, property repairs, or medical costs in the event of an accident. 

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In brief, you buy a car insurance policy from an auto insurance company. You pay them annual premiums, and if you have an accident, you make a claim that covers your financial losses that occurred because of the accident. Read How Car Insurance Works and How Much Car Insurance Do I Need? for more information. 

Getting a good deal on car insurance is all about finding the balance between the coverage you want and annual premiums that fit your budget. We  found the cheapest car insurance companies to help you find the right car insurance company for your budget. 

Cheapest Car Insurance Companies

  1. USAA is the cheapest car insurance company on our list, with a study rate of $895. USAA presents the cheapest auto insurance study rates for various demographic profiles used in our study, ranging from 25-year-old men to 60-year-old women.
  2. Geico is the second-cheapest auto insurance company based on a study rate of $1,063. Geico’s representative rates for our 25-year-old driver profiles in our study are significantly lower than much of the competition, as are their study rates for driver profiles with one accident on their record.


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Travelers comes in third in our ranking of the cheapest car insurance companies, with a representative rate of $1,212. For most of our driver profiles, Travelers stays firmly as the third-cheapest option, though in a few instances, it drops to fourth behind State Farm. 

  1. State Farm is the four-cheapest car insurance company in our analysis, with a study rate of $1,260. That’s well below the average among the nine major car insurance companies on our list.
  2. Progressive's car insurance representative rates are the fifth lowest of the companies on this list and come to $1,308 per year based on the driver profiles used in the study. Progressive’s rates in our study for some profiles, such as the 60-year-olds, are quite competitive.
  3. American Family has the sixth-cheapest car insurance rates in our study, at $1,326 per year based on the driver profiles we used. Notably, American Family's representative rate is the first one to be higher than the national average of $1,323 – though not by much.
  4. Nationwide is the seventh-cheapest car insurance company, according to our analysis. There's quite a jump in the study rates between American Family and Nationwide (about $200), with this company's study rate clocking in at $1,530. Though it’s more expensive than most rivals overall, we found that Nationwide charges among the cheapest study rates for driver profiles with poor credit. 
  5. Farmers car insurance rates in our analysis are quite a bit above average, at $1,538. That makes Farmers the second-most expensive insurance company, according to our study.
  6. Allstate had rates in our study coming to $1,778 per year based on our driver profiles. That's about $450 higher than the national average rate in our analysis, and almost $900 higher than the representative rates from the cheapest company in our study, USAA
It's important to note that not all of these companies are available nationwide. In fact, only USAA, Geico, State Farm, and Allstate are available in all 50 states and the District of Columbia. American Family and Travelers are only available in 19 and 24 states, respectively. Farmers is available in 31 states, Nationwide is available in 43, and Progressive in 48.

How We Found the Cheapest Car Insurance Companies

At U.S. News, we’re all about helping people make life’s important decisions. Our college rankings, launched in 1983, set the standard in educational rankings. Our ranking in other fields, like healthcare, civic areas, and the automotive sphere, help people and thought leaders make choices that make lives better. Now we’re continuing to empower you with the information you need to make the right choices for your life with our Cheapest Car Insurance Rankings. 

Our Study Rates

For this study, U.S. News worked with Quadrant Information Services to provide a report of average insurance rates in all 50 states from the 10 largest national car insurance companies. Quadrant obtained rate data provided by car insurers to state regulators, based on profiles for both male and female drivers aged 25, 35, and 60. Vehicles used include the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford-F-150, with annual mileage of 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations.

To get the study rates shown here, we computed a simple average of all driver profiles and profile combinations for a given company or risk pool. The rates shown here are for comparative purposes only and should not be considered “average” rates available by individual insurers. Individual rates will differ.