There are hundreds of car insurance companies in the US. While you may believe it’s always cheaper to go with the big brand, below you can see the cheapest car insurance options are actually from smaller companies.
| Company | Avg. Annual Premium | Avg. 6 Mo. Premium |
| Root | $669 | $335 |
| Pekin Insurance | $806 | $403 |
| Erie | $1,293 | $646 |
| Travelers | $1,342 | $671 |
| USAA | $1,365 | $683 |
| Nationwide | $1,476 | $738 |
| Metromile | $1,520 | $760 |
| GEICO | $1,542 | $771 |
| State Farm | $1,569 | $785 |
| Farmers | $1,786 | $893 |
| Progressive | $1,882 | $941 |
| Esurance | $2,062 | $1,031 |
| Allstate | $2,413 | $1,206 |
Cheapest insurance companies for drivers with bad credit and good credit
In most U.S. states, insurance companies take into consideration a driver’s credit score when setting rates. An improvement of one credit tier leads to savings of an average of about $32 per month.
Drivers with bad credit should consider Nationwide and GEICO. This is especially important considering insurance for drivers with bad credit is $125 more expensive per month than it is for drivers with excellent credit.
The use of credit scores in setting insurance rates is controversial, and some lawmakers are working to curtail it. In fact, several U.S. states already prohibit the practice.
Auto insurance rates by credit score by company
| Company | Yearly Average – Excellent | Yearly Average – Poor |
| Allstate | $2,160 | $3,434 |
| Farmers | $1,525 | $2,724 |
| GEICO | $1,397 | $2,174 |
| Nationwide | $1,331 | $1,984 |
| Progressive | $1,461 | $3,716 |
| State Farm | $1,224 | $4,126 |
| USAA | $1,216 | $2,393 |
How to get cheap car insurance: discounts and tips
If you’re looking for affordable insurance, the best place to start is online. Your best bet is to gather quotes from multiple companies to see which offers the best coverage at the best rate. It’s also a good idea to look into discount opportunities, as most car insurance companies may apply discounts for qualifying drivers. If you aren’t sure where to start, read on for tips or speak to a licensed agent to understand your options.
Remember: your car insurance rate is specific to you
Many factors determine car insurance rates, including location, your age, insurance history, driving history and the make and model of your vehicle.
If you’ve accumulated at-fault accidents or claims, your rate will increase. If your credit score is low or your ZIP code has a large number of uninsured motorists, you might not be able to find cheap auto insurance.
Auto insurance discounts
You can’t improve your credit score overnight, but there are some easy ways to reduce the cost of insurance — like car insurance discounts.
Multi-policy/bundling auto insurance discount
Qualifying for this discount involves carrying two insurance policies with one company. Common bundling combinations include a home-and-auto bundle or a renters-and-auto bundle. A homeowners-auto combo saves an average of $12 per month, compared to $6 for a renters-auto pairing.
Safe driving discount
This discount entails taking a defensive driving course and presenting your insurance company with proof — like a receipt or transcript. The logic behind this discount is clear: a safer driver is a cheaper client because they’re less likely to file a claim. Consult our guide to auto insurance for good drivers to learn more about how to save.
Equipment discount
If your car comes with an anti-theft device or a service like LoJack, your insurance company may provide a discount. The discounts tend to be smaller than a multi-policy or defensive driver discount. In our survey, we found systems such as night vision devices, park-assist devices and rearview cameras did not earn discounts.
AVERAGE INSURANCE SAVINGS WITH SAFETY DEVICES
| Safety/Anti-Theft Device | Average Annual Premium | Discount |
| None | $1,483 | — |
| Blind Spot Warning Device | $1,481 | $2 |
| Collision Preparation System | $1,482 | $1 |
| Electronic Stability Control (ESC) | $1,474 | $9 |
Good driver discount
This discount is available to drivers with clean driving records. Good driver discounts can be added when your Motor Vehicle Report (MVR) or CLUE report is pulled at the inception of your auto policy. If you’re convinced your record is clean (no at-fault accidents or violations) and you aren’t receiving a discount, speak with your insurance company and inquire about a discount. By keeping a clean slate, you can earn a discount of approximately 10%.
Military discount
Many companies offer discounts for active or former military members and their families. The amount and qualifications differ per company but you should ask if your current company has this discount.
Multi-car discount
A multi-car discount involves insuring more than one car with a single insurance company. Typically, the discount is automatically added either at policy inception — if two cars were originally added — or when you add the second vehicle to the policy.
Preferred payment discount
This discount refers to the manner in which you make your insurance payments and has tiers, typically. For example, if you pay your entire premium upfront, you are often given a discount: the highest preferred payment discount. A paid-in-full discount can save you $73 per year on your auto policy.
If you set up automatic payments from a bank account, you can often receive an Electronic Funds Transfer (EFT) discount. An EFT discount can lead to savings of about $21 annually. If you are able to pay up front or through automatic payments, this is a great way to get cheaper car insurance.
Occupation discount
Some insurance companies will offer a discount based on your occupation. Statistically, some occupations — teachers, physicians or police officers — are less likely to file a claim and thus pose less risk. Because of this, some insurance companies return the savings back to you. Usually, they will require proof of your profession, such as a photocopy of your professional degree or certification.
For more information on cheap car insurance and profession-based discounts, see our guides:
- Doctors
- First responders
- Teachers
- Government employees
Good student discount
If you’re responsible for insuring a young driver, you understand how expensive this can be. Given the number of claims they cause, teen drivers are considerable risks for insurance companies. If your son or daughter has the grades — typically a GPA of 3.0 or better — speak with your insurance company about a good student discount. Normally, they’ll ask for a transcript every policy period as proof.