Best Cheap Auto Insurance Companies of 2025

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Auto insurance can be a major expense, with the average U.S. driver paying more than $2,386 per year for full coverage, according to recent MarketWatch statistics. The good news is you can save big by comparing quotes and finding insurers that offer the lowest rates. This guide breaks down the best cheap auto insurance options so you can drive with coverage that fits your budget.

Who Has the Cheapest Auto Insurance Rates?

To help you compare rates and options more easily and decide which auto insurance could work for you, GOBankingRates compiled a list of well-known car insurance companies and got free car insurance quotes from them using the same driver persona factors. GEICO’s prices came in lowest, but it’s important to shop around for quotes using your own information and coverage preferences.

Here’s a closer look at five auto insurance companies and a rate range for each. The lower rate in each company’s range is for liability-only coverage. The higher rate is for full coverage.

1. GEICO

Monthly rates: $41 to $103

Coverage: Liability, medical payments, personal injury protection, mechanical breakdown, uninsured/underinsured motorists, comprehensive, collision, emergency road service, and rental reimbursement.

Pros:

• Cheap car insurance rates
• Plenty of discounts available
• Discounts for military and federal workers

Cons:

• Limited educational information on website
• May drop your coverage or increase rates after your first accident
• Excellent driving record required

Why we chose it: Stellar reputation based on J.D. Power & Associates ratings, and the lowest rates for military members and federal workers.

Quick savings tip: If you insure more than one vehicle with the company, you save up to 25%; bundle your homeowner’s insurance with your auto policy and you can save even more.

2. Liberty Mutual

Monthly rates: $98 to $187

Coverage options: Liability, collision, and comprehensive policies, special teacher coverage, and new or better car replacement features are some of the stand-out coverage options. Liberty Mutual also offers rental reimbursement and emergency road service.

Pros:

• Special coverage for teachers
• Unique ways to save on car insurance
• Online discount

Cons:

• Offices located in a limited number of states
• No rideshare insurance

Quick savings tip: Save up to 12% on Liberty Mutual car insurance when you buy online. Discounts are also available when you agree to use Liberty Mutual’s RightTrack program, which monitors your driving habits.

3. Farmers Insurance

Monthly rates: $65 to $105

Coverage options: In addition to the usual coverage, Farmers Insurance provides rideshare insurance, towing coverage, new car replacement, roadside service, a glass deductible buyback program, and accident forgiveness to help keep your rates low.

Pros:

• Car insurance bundles make it easy to choose the best auto insurance policy
• Wide range of coverage options
• Rideshare coverage
• Accident forgiveness

Cons:

• Only available in 44 states
• Low customer satisfaction rating from J.D. Power

Best for: Policyholders with multiple vehicles or an alternative fuel car.

4. Progressive

Monthly rates: $68 to $195

Coverage options: In addition to the usual coverage, Progressive offers coverage for custom parts and equipment, rideshare drivers, and will pay off your loan or lease if the car is totaled in an accident.

Pros:

• Name Your Price tool for establishing a budget
• Young driver discounts for teens and students
• The deductible could drop every year without a claim.

Cons:

• Low customer satisfaction rating from J.D. Power

Quick savings tip: Progressive’s Name Your Price Tool builds a policy around your budget, and if you plug a Snapshot device into your car to prove you have safe driving habits, you’ll save even more.

5. Allstate

Monthly rates: $56 to $117

Coverage options: Allstate covers rental reimbursement while your car is in the shop following an accident, and covers travel to Mexico.

Pros:

• Wide range of discounts
• Full-featured mobile app
• Agents in every state and Washington, D.C.

Cons:

• Fewer coverage options than other companies offer
• Low customer satisfaction rating from J.D. Power

Quick savings tip: Accumulate Allstate Rewards points — redeemable for merchandise and gift cards — by completing safe driving challenges.

6. Auto-Owners

Monthly rates: $30 to $135

Coverage options: Auto-Owners’ policy may cover additional expenses related to your accident. It also offers loan or lease gap insurance and diminished value insurance.

Pros:

• Range of insurance products
• Local agents

Cons:

• Limited online presence
• Not available in every state

Auto-Owners is a midsize insurance company that boasts an 862 out of 1,000 rating in customer satisfaction through the 2023 J.D. Power U.S. Insurance Shopping Study. In addition to relatively good customer service, the company has a reputation for offering relatively affordable coverage.

Best for: Drivers in the 26 states it covers, who are willing to opt for paperless billing and pay their entire premium amount upfront for additional savings.

7. USAA

Monthly rates: $31 to $113

Coverage Options: USAA offers the basic coverage options, including liability, comprehensive and collision, as well as roadside assistance.

Pros:

• Coverage is available in every state
• High rating for customer satisfaction
• Many discount opportunities

Cons:

• Only available to drivers with a qualifying military connection
• Limited coverage options compared to competitors

Best for: Members of the U.S. military branches and their immediate family members

What Affects Auto Insurance Rates?

While the figures above represent a range of potential insurance costs for excellent drivers, auto insurance rates vary widely based on many factors.

• Age: Younger drivers often pay more due to inexperience.
• Credit score: Higher credit often leads to lower premiums.
• Driving record: Clean histories save more.
• Location: High-theft ZIP codes means higher rates.
• Vehicle type: Sports cars tend to be higher risk. A family sedan, on the other hand, is lower risk.
• Coverage type: Liability-only coverage costs less than policies with comprehensive and collision coverage.
• Deductible: Typically, lower deductibles mean higher rates,

Final Take

You’ll have to do some comparison shopping to find the cheapest auto insurance. You can find great deals if you do your homework by gathering various auto insurance quotes. GOBankingRates has taken some of the work out of it by combing through car insurance agencies in the list above to compare prices so you can get the best car insurance rates.

Getting the cheapest car insurance is about knowing where to look. Use this guide to narrow down your top choices, then request quotes online to compare real pricing. A few minutes could save you hundreds this year.

Dawn Allcot, Sarah Sharkey, Cynthia Bowman, Daria Uhlig and Andrew Lisa contributed to the reporting for this article.

Data is accurate as of May 1, 2025, and is subject to change.

Methodology: Results are based on insuring a non-hybrid, 2017 Toyota Camry LE owned by a single, 34-year-old, female driver with a bachelor’s degree who lives in ZIP code 90245 and got her license when she was 16. She uses the vehicle to commute to work and travels eight miles each way, five days a week, putting between 12,001 and 13,000 miles on the car each year. She’s gainfully employed and has had no accidents, traffic violation tickets or citations for driving under the influence in the last seven years. All insurance companies’ quote forms were not identical, and some asked questions unique to the specific insurer.

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