Cheapest Car Insurance Companies in 2026
Travelers offers the cheapest full coverage at ~$1,158/year nationally. GEICO is cheapest for liability-only at ~$494/year. USAA beats both for military members and veterans. Here is the full breakdown.
Cheapest Full Coverage Car Insurance
Based on a 35-year-old driver, clean record, 2022 Honda Accord, $500 deductible. Source: MoneyGeek 2026 rate data. *USAA available to military/veterans/eligible family only.
| # | Company | Annual Premium | Monthly Premium | vs National Avg |
|---|---|---|---|---|
| 1 | Travelers | $1,158 | $97 | 57% below avg |
| 2 | USAA* | $1,670 | $139 | 38% below avg |
| 3 | Erie | $1,975 | $165 | 27% below avg |
| 4 | American Family | $2,231 | $186 | 17% below avg |
| 5 | GEICO | $2,112 | $176 | 22% below avg |
Cheapest Liability-Only Car Insurance
Liability-only covers damage you cause to others. No collision or comprehensive. National average is $820/year ($68/month).
| # | Company | Annual Premium | Monthly Premium | vs National Avg |
|---|---|---|---|---|
| 1 | GEICO | $494 | $41 | 40% below avg |
| 2 | USAA* | $515 | $43 | 37% below avg |
| 3 | State Farm | $793 | $66 | 3% below avg |
| 4 | Travelers | $612 | $51 | 25% below avg |
| 5 | Progressive | $641 | $53 | 22% below avg |
Cheapest Insurer by Driver Profile
| Driver Profile | Cheapest Insurer | Avg Annual Rate |
|---|---|---|
| Clean record | Travelers | $1,158/yr |
| One at-fault accident | State Farm | $1,920/yr |
| One speeding ticket | GEICO | $1,650/yr |
| Young driver (age 20) | Travelers | $2,890/yr |
| Senior (age 70) | GEICO | $1,540/yr |
| Military/veteran | USAA* | $1,670/yr |
*USAA available to military/veterans/eligible family members only.
10 Ways to Lower Your Car Insurance Rate
Studies show comparing at least three insurers saves an average of $709 per year. Do this at every renewal.
Most insurers offer 5-25% off when you bundle. State Farm, Allstate, and Travelers have strong multi-policy discounts.
Programs like Progressive Snapshot, State Farm Drive Safe and Save, and Allstate Drivewise track your driving and reward safe habits with discounts up to 40%.
Raising your deductible from $500 to $1,000 saves approximately $150-200 per year. Only do this if you can afford to pay the higher deductible out of pocket.
Paying 6 or 12 months upfront instead of monthly avoids installment fees and earns a pay-in-full discount at most insurers.
Many drivers miss discounts they qualify for. Call your insurer and ask specifically about good student, occupation, loyalty, paperless billing, and vehicle safety feature discounts.
In most states, drivers with excellent credit pay roughly 40% less than drivers with poor credit. Improving your credit-based insurance score has a large impact.
A state-approved defensive driving course earns 5-15% off at most insurers. Online courses typically cost $25-50 and take 4-6 hours.
If your car is worth less than 10x your annual collision premium, dropping collision and comprehensive often makes financial sense. A $4,000 car paying $600/year for physical damage coverage is rarely worth it.
Low-mileage discounts kick in at most insurers when you drive under 7,500 to 10,000 miles per year. Usage-based policies like Milewise (Allstate) charge per mile and can save retirees and remote workers significantly.
When "Cheap" Is Not Worth It
Buying minimum liability coverage to save money creates a serious financial risk. Most states require only $25,000 per person and $50,000 per accident in bodily injury liability. If you cause an accident that hospitalizes someone, medical bills alone can easily exceed $300,000.
The difference between minimum limits (25/50/25) and recommended limits (100/300/100) is often only $20-40 per month. That small increase in premium protects you from losing your home, savings, and wages to a judgment.
The right way to save: get cheap rates from a legitimate insurer (Travelers, GEICO, Erie) while keeping adequate coverage limits. Never sacrifice coverage adequacy to save a few dollars per month.
Cheapest Insurer in the 10 Most Populous States
Rates vary dramatically by state. See our full 50-state rate comparison for complete data.
| State | Cheapest Insurer | Avg Monthly (Full Coverage) |
|---|---|---|
| California | GEICO | $185/mo |
| Texas | State Farm | $230/mo |
| Florida | Travelers | $320/mo |
| New York | GEICO | $285/mo |
| Pennsylvania | Erie | $160/mo |
| Ohio | Erie | $140/mo |
| Illinois | American Family | $155/mo |
| Georgia | State Farm | $210/mo |
| North Carolina | Travelers | $148/mo |
| Michigan | Travelers | $310/mo |
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Frequently Asked Questions
Which car insurance company is cheapest overall?
Travelers is cheapest for full coverage nationally at around $1,158 per year. GEICO is cheapest for liability-only at around $494 per year. USAA is cheapest of all if you qualify as a military member or veteran, averaging $1,670 per year for full coverage which is far below the national average of $2,697. Rates vary significantly by state and driver profile.
How much does cheap car insurance cost per month?
The cheapest full coverage averages about $96 per month (Travelers, nationally). Liability-only coverage starts around $41 per month (GEICO). The national average for full coverage is $208 per month and $68 per month for liability-only. Your actual rate depends on your state, age, driving record, and vehicle.
Is cheap car insurance worth it?
It depends on what you are giving up. A legitimate low-rate insurer like Travelers or GEICO offers cheap rates without sacrificing financial strength. However, carrying state-minimum liability limits to save money creates serious financial risk. If you cause a major accident with inadequate coverage, you are personally responsible for the difference. Cheap rates on adequate coverage are always worth pursuing. Cutting coverage to get a lower premium is a gamble.
Does raising your deductible lower car insurance cost?
Yes. Raising your collision and comprehensive deductible from $500 to $1,000 typically saves $150 to $200 per year on average. Raising it from $500 to $2,000 can save $300 to $400 per year. However, you must be able to afford the higher deductible if you have a claim. A good rule of thumb: only raise your deductible to an amount you could pay out of pocket without financial hardship.
What is the cheapest car insurance for young drivers?
For young drivers staying on a parent's policy, State Farm typically offers the best rate. For standalone policies, Travelers and GEICO are most competitive. Young drivers can save significantly with a good student discount (typically 10-25%), completing a defensive driving course, and enrolling in a telematics program that monitors driving behavior. See our full young drivers guide for specific rate data by age.