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Find Cheap Car Insurance in 2024

Compare rates at the top car insurance companies near you to find the cheapest car insurance.  

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Our rates are based on public rate filings obtained by analytics company First Interpreter. While we may partner with some of the carriers you see on our site, we maintain editorial independence and it does not affect the rates you see. Read more about our rating methodology or see our rigorous editorial policy. 

Our rates are based on public rate filings obtained by analytics company First Interpreter. While we may partner with some of the carriers you see on our site, we maintain editorial independence and it does not affect the rates you see. Read more about our rating methodology or see our rigorous editorial policy. 

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Written by Alyssa DiCrasto
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Edited by Rob Deming

Last updated: August 15th, 2024

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Written by Alyssa DiCrasto
Picture of Edited by <a href="https://rateretriever.com/about/rob-deming/"><span style="text-decoration: underline;">Rob Deming</span></a>
Edited by Rob Deming

Last updated: August 15th, 2024

How to find the cheapest car insurance in 2024

Finding the right car insurance can be a daunting task with so many options available. It’s important to ensure your policy isn’t just budget-friendly but also provides the amount of coverage you need.  

At Rate Retriever, we simplify the process, helping you find the cheapest and most suitable car insurance for your needs. By comparing multiple quotes, you can ensure you’re getting the best value for your money.

Jump to a section:

1. Find the cheapest policy

2. Compare cheapest companies

3. Why is car insurance so expensive?

4. Factors that impact rates

5. Cheap insurance by location

6. Cheap insurance by driver factors

7. Cheap car insurance by vehicle

8. How to get cheap insurance

9. Risks of the cheapest policy

  1. Find the cheapest policy
  2. Compare cheapest companies
  3. Why is car insurance so expensive?
  4. Factors that impact rates
  5. Cheap insurance by location
  6. Cheap insurance by driver factors
  7. Cheap car insurance by vehicle
  8. How to get cheap insurance
  9. Risks of the cheapest policy

What’s the best way to find affordable car insurance?

  • There are many ways to save money on car insurance. The first step is researching insurance providers and shopping around for a car insurance policy that offers the best coverage at the best price.

The cheapest car insurance policy

The cheapest car insurance is usually a minimum car insurance policy. This is a policy that only includes the car insurance coverage required by your state law. In most states, this means a basic liability policy which will help cover the cost of repairs to another person’s property or the other person’s medical bills in an accident you cause.

Pros of a minimum coverage car insurance policy

  • Cheapest policy you can get 
  • Meets your state’s legal requirements so you do not drive illegally
  • Ensures you do not pay for coverage you don’t need 

Cons of a minimum coverage car insurance policy

  • Does not cover incidents or damage to your own property
  • Leaves you vulnerable to costly out-of-pocket expenses for repairs
  • Not accepted by many loans or leases, which require full coverage car insurance 

Cheap alternatives to a minimum coverage car insurance policy

While a minimum coverage car insurance policy will usually be the cheapest car insurance, you may want more coverage or an even cheaper policy. If you join an insurance company that has usage-based policies or telematics programs, you can often find savings by only paying for what you need. 

Usage-based companies charge you based on how much you drive. These are the pay-per-mile models. If you don’t drive a lot, these might be a good cheap alternative for you.

Telematics or safe driving programs charge you based on how well you drive. They usually include a tracker or app of some kind to track your driving habits. The idea is that safe drivers pay less. If this appeals to you, it might be a good way to lower your premiums. There are companies dedicated to serving this model like Root Insurance, but plenty of the big insurance companies like Progressive or Allstate  offer a version.

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The cheapest car insurance companies

The cheapest car insurance company for you depends on several factors like where you live, your age, and your vehicle. 

On average, USAA offers the cheapest car insurance rates across the US. However, USAA is only available to those who are serving, have served, or have a family member who served in the US military. 

But many of the nationally-known insurance companies, including Progressive, Nationwide, Geico, Auto-Owners Insurance, Travelers, and State Farm, offer competitive car insurance rates. Below is the average cost of car insurance at some of the most popular national companies.

Cost of Car Insurance at Leading Companies

Company Average Annual Premium
USAA 1,457
Progressive 1,497
Nationwide 1,602
Geico 1,669
Auto-Owners Insurance 1,698
Travelers 1,818
State Farm 1,967
Farmers 2,476
Allstate 2,504

Annual rates for a male driving a 2023 RAV4, estimated using public rate filings sourced from First Interpreter. Rates do not represent actual quotes. Accurate as of January 2024. 

However, these popular companies aren’t your only option when choosing the most affordable car insurance company. Local companies may provide more competitive rates and a positive customer service experience.  

When searching for the best cheap car insurance company, it’s important to consider the company’s reputation and customer satisfaction as well as cost in your region. The best company is affordable but also responsive, helpful, and fast to resolve issues and claims.  

Compare the top auto insurance companies to find the car insurance company that will be best for you >

Why is car insurance so expensive?

In 2024, car insurance prices are on the rise for almost everyone. This is due to many reasons like:

  • Inflation: because insurance rates have to be approved by each state, the rise in cost of insurance lags behind the rate of inflation. When inflation is on the rise, you can expect insurance rates to follow suit eventually. 
  • Climate change: when there’s in an influx in natural disasters or weather damage, there is an influx in insurance claims. Insurance companies raise their rates across the board to offset this and recoup some of their losses. 
  • Rising cost of repairs: part shortages and long and costly repair cycles also make the average claim more expensive, so premiums must be higher to cover this. 

The bottom line? The more expensive it is to pay claims or the more claims insurance companies have to pay, the more expensive insurance premiums will be for everyone. 

That said, car insurance rates are personalized for every driver. This means that insurance companies don’t just look at the overall landscape, but they look at a number of personal factors to guess how much it would cost them to insure your individual policy. Depending on factors like your location and driving record, car insurance premiums can be extremely expensive.

What it boils down to is this: the more likely you are to file a claim and the more expensive your claims are likely to be, the more insurance companies will charge you upfront for your policy. There are many reasons why car insurance rates can be costly, but the good news is that car insurance rates often decrease with age, assuming you avoid accidents and claims.  

Learn more about why car insurance is so expensive > 

Factors that make car insurance expensive

Auto insurance companies offer cheaper car insurance to individuals who they consider “low risk.” There are many factors that may impact your rate including who you are, the state you live in, and the vehicle you drive. For example, individuals in their 40s who haven’t filed many insurance claims and have a good credit score will typically pay less than a teenage driver with little to no driving experience.  

Some factors, like age and credit score, impact your rate more than others.1 

Additionally, some states prohibit insurance companies from using certain factors to calculate their rates; for example, insurance companies cannot use credit history when determining rates for people who live in California, Hawaii, or Massachusetts.2 

Each company has their own rating guidelines that determine how each of these factors impact the rates they provide. For example, while one company may use credit score as a strong indicator, another might not consider credit score as relevant as the number of years you’ve been insured continuously. 

Why does this matter?

  • Your driver profile might be more attractive to some companies than others – and this is why you can receive cheaper rates depending on the car insurance company you choose. That’s why it’s so important to compare quotes from multiple companies to find the cheapest insurance available to you, based on your desired coverage amounts.

Cheap car insurance by location​

Car insurance costs vary by state. Some of the states with the cheapest auto insurance policies are Wyoming, Vermont, Idaho, Maine, and Hawaii.

Discover how much auto insurance costs and where to find cheap car insurance in your state using the tool below.

Cheap car insurance in your state

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Cheap car insurance by driver

Personal factors such as your driving history, age, credit score, gender, marital status, and profession impact the price you pay for car insurance. Sometimes, you’re even able to get discounts based on certain personal factors.

Cheap car insurance by driving history

Finding cheap car insurance can be heavily influenced by your driving history. Insurance companies view your driving record as a key indicator of future risk. Safe drivers who avoid accidents, traffic violations, and claims over a period typically qualify for better rates due to their proven reliability on the road. Conversely, a history of infractions or accidents can result in higher costs. However, many insurers offer discounts and rewards for drivers who improve their records over time. Maintaining a good driving history is key to getting affordable car insurance.

Cheap car insurance by age

Age is a huge factor car insurance companies consider when it comes to determining an individual’s risk. In general, it is much easier for those between the ages of 40 and 50 to get cheap car insurance than a teen or young adult.  

Teenagers pay the most for car insurance from the ages of 16 to 19 and see a significant decrease in cost once they reach age 25. After that, car insurance costs typically continue to decrease steadily if you maintain a clean driving record. However, even though older drivers pay less for car insurance on average, other risk factors can impact an experienced driver’s insurance rate. Some insurance companies also offer discounts for new, teen, and young adult drivers to lower their overall cost.  

Average rates by age

Cheap car insurance by credit score

Your credit score can have a major impact on the price you pay for car insurance. While California, Hawaii, Maryland, Michigan, and Massachusetts prohibit or limit the use of credit-based insurance rating, in every other state you can usually expect to pay more for your insurance premiums if you have poor credit. 

Cost of car insurance for someone with poor credit is 73% more than someone with good credit on average.

Can I still find cheap insurance with bad credit?

  • It’s still possible to find affordable insurance with a low credit score. Nationwide, American Family, and Progressive are among the national insurers who on average have cheaper rates for  individuals with poor credit. Additionally, there are companies like The General, Dairyland, and National General that specialize in non-standard insurance and may offer more reasonable rates. Learn more >

Cheap car insurance by gender

The sex described on your driver’s license may impact the cost of car insurance. On average, females pay less than males, especially for young drivers. However, you may find that in your state males pay less than females. Your gender will generally impact your car insurance rates less than other personal factors like your age or credit score.

Cheap car insurance for married couples

Is car insurance cheaper if you’re married? Usually, the answer is yes! On average, married individuals pay less for their car insurance premiums than single or divorced individuals. This is because insurance companies may use marital status as a rating factor, and married individuals are generally less risky to insure. 

While you do not have to be on the same insurance policy as your spouse, you may see significant savings if you combine your policies. This is because most insurance providers offer a discount for multi-vehicle policies.

How getting married affects your premium

What are cheap car  insurance companies for married couples?

  • Some of the cheapest insurance companies (on average) for married couples include Erie Insurance, Progressive, American Family, and Nationwide. Learn more >

Cheap car insurance by profession

Some insurance companies consider your occupation when calculating your rates, and people in professions such as education, public safety, health, and government positions are considered less risky to insure. This means that people in these professions may have lower rates or may qualify for discounts. Additionally, some employers have relationships with certain insurance companies that offer their employees lower rates. 

Cheap car insurance for teachers

If you are an educator, you may qualify for cheaper premiums at certain car insurance companies. Insurance companies such as Liberty Mutual and Farmers Insurance offer discounts and/or special coverage options for teachers. There are also companies like Meemic that exclusively serve teachers.

Learn more about cheap car insurance for teachers >

Cheap car insurance by vehicle

Your vehicle has a big impact on the price you pay for car insurance. Essentially, the more likely your vehicle is to get in an accident or the more expensive it will be to repair or replace your vehicle in case of a claim, the more expensive your car insurance will be.

If you are looking for the cheapest insurance consider looking for a car that meets the following criteria:

  • Used or older vehicle over a new car
  • Economy brand over a luxury brand
  • Excellent safety ratings or safety features
  • An SUV or truck over a sedan or sports car
  • Gas-powered or hybrid over electric

Cheap insurance for a new car

  • Buying a new car is a great time to reevaluate your car insurance to see if you can save on your premiums. New cars tend to cost more to insure than cars that are a few years old, but the best way to find the cheapest insurance for a new car is to compare multiple insurance companies. Learn more >

Cheap car insurance by policy

The cheapest car insurance policy will be a state-minimum policy, but most people opt to get a full coverage policy to cover their own property as well as their liability in an accident they cause. While there’s no one right definition of a “full coverage policy,” it usually includes liability, PIP or medical payments, collision, and comprehensive insurance.

You can still adjust the amount of coverage you have, not just the types of coverage. For example, a common limit (or the maximum amount your insurance will pay for a claim) for bodily injury liability insurance is 50/100k. In your full coverage policy, you can raise this limit so that your insurance agrees to cover a claim that exceeds $100,000.

Now, you may think that increasing your policy limits greatly impacts the price of your policy, but data suggests otherwise. In fact, if you raise your limits you might be able to get a lot more coverage for only a few extra dollars a year. That’s why it’s important to shop around and ask an agent what the best policy for your budget is.

Cheap car insurance without a license

There are a number of reasons that someone may need to purchase a car insurance policy, even if they do not have a driver license. If your license has been suspended, you own a classic car, or members of your household are starting to drive, you may need to purchase a car insurance policy, even if you aren’t going to be the one driving.

Learn more about getting car insurance without a driver license >

Car insurance with no down payment

Insurance can be a big expense – especially if you pay for it all upfront. While all insurance companies require payment before they insure you, most insurance companies allow you pay for your insurance on a monthly basis (think: like a subscription). This can lessen the burden of a huge down payment for insurance in the short-term.

Learn more about  car insurance without a down payment >

How to get cheaper car insurance

If you think you’re paying too much for your insurance, there are some ways to get cheaper car insurance.3  Here are some strategies that can help you find the best rates available to you: 

Compare quotes from multiple providers

Doing so will help you start out with the best rates for your driver profile. You can even show your current provider a quote from a different company to see if they can match it.

Compare rates online with comparison sites >

Ask for discounts

Many car insurance companies offer discounts for different qualifications such as good student discounts, defensive driving completion, active military or veteran status, and even loyalty discounts.

Drive carefully

Some car insurance companies offer discounts for safe drivers and those who haven’t made a claim in some time.

Make payments on time

Paying on time or setting up auto-pay will sometimes help lower your rate over time.

Consider a higher deductible

If you have a higher deductible, your premiums will be lower; however, be cautious doing this because in the event of an accident you will pay more out-of-pocket. 

Buy a car that will be cheaper to insure

Cars that are at least five years old often cost less to insure, so when you’re shopping for a vehicle, consider buying used.4

Risks of getting the cheapest car insurance

Opting for the cheapest car insurance may seem like a smart financial decision, but it comes with several risks that could outweigh the immediate savings.

The primary risk is inadequate coverage. Cheaper policies often come with minimal liability limits and may exclude essential coverages like comprehensive and collision. This means that in the event of an accident, you could be left with significant out-of-pocket expenses, potentially jeopardizing your financial stability. Additionally, cheap insurance may not cover certain incidents, leaving you vulnerable to paying for repairs, medical bills, or legal fees entirely on your own.

You also want to be sure that the insurance company you go with has good customer satisfaction and the services you want (for example: a good mobile app). Low-cost insurers may cut corners to maintain their low prices, which can result in subpar customer support. This can be particularly problematic when you need to file a claim or seek assistance after an accident. Delayed responses, complicated claim processes, and insufficient help can add stress and frustration during an already challenging time. 

Finally, the cheapest car insurance may lack valuable add-ons and benefits that more complete policies offer. Features like roadside assistance, rental car reimbursement, and accident forgiveness can provide significant peace of mind and convenience. By choosing a bargain policy, you might miss out on these benefits, leading to potential inconveniences and extra costs down the line.

It’s essential to carefully evaluate what you’re getting with a low-cost policy and consider whether the savings are worth the potential drawbacks. Balancing affordability with adequate coverage and reliable service is key to making a wise insurance choice.

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Related content

Sources

  1. Insurance Information Institute – What determines the price of an auto insurance policy?
  2. Experian – Which States Restrict the Use of Credit Scores in Determining Insurance Rates?
  3. Insurance Information Institute – Nine ways to lower your auto insurance costs
  4. NFCC – What to Consider Financially When Deciding to Purchase a New or Used Car

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results.  

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you. 

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.  

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide. 

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