Best Cheapest Car Insurance Companies In 2022

Did you know the exact same driver could be charged $39 per month by one car insurance company and $255 per month by another? Our analysis — based on millions of car insurance quotes from 37 companies across the country — confirms the best way to save on car insurance is to shop around and get multiple quotes.



Cheapest car insurance company

State Farm and USAA are the most affordable major insurance companies in the country. State Farm offers an average rate of $532 per year for a minimum-liability policy, 26% below the national average. USAA costs an average of $432 per year, although only active military members, veterans or their families can qualify.

Among insurers that have a smaller national footprint, Farm Bureau Insurance, at $472 per year, and Auto-Owners, at $484 per year, rank as the cheapest. Erie's in a close third place at $503 per year. Smaller insurance companies sometimes offer lower rates because they compete with much bigger companies. Some also deliver more local knowledge or a personal touch because they're based in your state or community.

What is the cheapest car insurance company for you?

To find the cheapest car insurance for you, start by getting quotes from the auto insurance companies with the cheapest rates. Depending on a variety of factors — location, driving history, credit score and more — some insurers may be cheaper for certain drivers than others. If you're looking for the cheapest companies that also offer the best balance of affordability, strong customer service and coverage options, compare the best auto insurance companies.

Cheapest car insurance company overall: State Farm



State Farm is the largest auto insurance company in the country, with the cheapest widely available rates in 29 states. Additionally, the company boasts an enormous network of local agents, meaning there's likely a State Farm agent in your city who can help you compare rates.

State Farm is the best and cheapest car insurance company for most drivers, considering that USAA has eligibility restrictions, and Farm Bureau and Auto-Owners are disproportionately expensive when you add more coverage.

Rank
Company
Monthly rate
1USAA$36
2Farm Bureau$39
3Auto-Owners$40
4Erie$42
5State Farm$44

State Farm also scores high marks for policy options. It offers pet coverage, rideshare insurance and roadside assistance. Customers also have plenty of options to bundle and even further lower their rates.

Drivers with State Farm can enroll in programs such as Drive Safe & Save to turn good driving habits into lower rates. They can also qualify for a range of discounts, including an accident-free discount, multicar discount and anti-theft discount.

Cheapest car insurance rates after discounts: Geico



Geico has some of the cheapest car insurance in the country, second only to State Farm among the biggest companies. Geico may have cheaper rates for you than State Farm depending on where you live, as the cheapest company in seven states, including California and Florida. Geico stands out when it comes to potential savings through discounts.

Though State Farm has slightly cheaper rates on average, you may pay less overall if you qualify for Geico's many car insurance discounts. Geico has one of the longest lists of discounts available, and how much you can save with each discount is more than most companies.

For example, Geico offers safe drivers a discount of up to 22%, compared to the average of 10%. Having anti-theft devices installed in your car typically saves you up to 15%, but Geico promises savings up to 23%.

Company
Number of car insurance discounts
Farmers21
Geico20
Allstate20
Travelers16
American Family16
Liberty Mutual14
Progressive12
USAA12
State Farm11
Nationwide10

Cheapest auto insurance company for a bad driving record: Erie

rie has some of the cheapest car insurance rates for drivers with a ticket or accident on their driving record. And you probably won't find a better rate if you have a DUI (driving under the influence) on your driving record. Erie also increases rates the least after a driving incident.

Erie will only raise your rates by an average of 7% if you get a ticket, while most insurers increase premiums by 22% or more. For an at-fault accident, Erie will only raise your rates by 25% instead of the average 44%. And Erie's average quote with a DUI is $2,257 per year, an increase of 64%. Expect other companies to double your rates after a DUI.



Cheapest car insurance companies after a driving incident

Company
Clean record
Ticket
Accident
DUI
State Farm$1,313$1,463$1,633$3,590
Erie$1,379$1,469$1,721$2,257
Auto-Owners$1,579$1,680$1,983$3,202
Farm Bureau$1,576$1,774$2,110$2,813
American Family$1,755$2,055$2,706$2,832
Geico$1,918$2,336$3,170$4,459
Travelers$2,148$2,588$2,985$3,082
Progressive$2,038$2,623$3,163$2,564
Nationwide$2,127$2,709$3,208$4,120
USAA$1,170$1,417$1,613$2,222

Farm Bureau: A great choice for car insurance

Farm Bureau offers some of the most competitive quotes in the car insurance industry. Cheap rates, alongside solid customer service reviews, make Farm Bureau a worthy option to consider for any customer.

Membership in the Farm Bureau is available to all drivers, not just farmers. Although there is an annual fee associated with membership, usually less than $100 depending on where you live, this cost is offset by its industry-leading rates.

Few major carriers are able to compete with Farm Bureau's prices, according to our analysis, though Geico was an exception. In addition to its competitively priced auto insurance policies, however, Farm Bureau members can take advantage of other perks, such as discounts for travel, entertainment and prescriptions.

Below, we review industry experts' analysis of Farm Bureau customers' claims satisfaction. Overall, Farm Bureau has among the highest ratings we've seen for a major carrier.

  • Replacement-cost coverage: Reimburses you for the cost to replace vehicle models up to four or five years old, depending on the state.
  • Roadside-assistance coverage: Offers emergency roadside assistance, including towing and pick-up services following an accident or vehicle malfunction.

Special offerings: Driveology

Policyholders should consider enrolling in Farm Bureau's Driveology program if they can demonstrate consistent safe driving behavior. Drivers install a small device in their vehicle's OBD-II port. If the data gathered from the device indicates good driving behavior, drivers may save up to 30% on their car insurance premiums.

Other coverage considerations: Farm Bureau mutual dividend policies

Some of Farm Bureau's local chapters are mutual insurance companies, which means they're owned by policyholders. From time to time, policyholders may receive dividends. These don't have to be used as a rebate against car insurance — policyholders can use the funds for anything. However, dividends are based on the insurer's profitability, so they're not guaranteed. Farm Bureau subsidiaries will monitor their annual performance to determine if they will offer a dividend payment in any given year.

Car insurance discounts offered by Farm Bureau

While Farm Bureau doesn't have especially unique discounts compared to other insurers, it does offer many of the standard or widely available discounts. In fact, Farm Bureau's rates are typically already discounted to members, which is one of its main selling points to customers.

Farm Bureau does offer the Driveology program, which can help safe drivers save money. After installing a small device that measures driving behavior, drivers may receive a discount up to 30% off their premiums. Plus, they can take advantage of additional savings through Farm Bureau's SafeRide Rewards program.

Farm Bureau also offers a program known as SuperCheck, in which an agent reviews your policy once a year to ensure you're receiving all eligible discounts. A sample list of Farm Bureau car insurance discounts follows.

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