5 Cheapest Car Insurance Companies in 2021

By Barri Segal

March 5, 2019

LPETTET / iStock.com

U.S. drivers pay an average of $1056.55 a year on car insurance, according to the most recent data from the Insurance Information Institute. So car insurance companies want your business, and they fight for it by offering deals and discounts on auto insurance policies.

You’ll have to do some comparison shopping to find the best cheap car insurance, though. 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 to compare prices so you can get the best car insurance rates.

Who Has The Cheapest Car Insurance Rates?

If you’re looking for the answer to, “What is the cheapest car insurance?” you might be overwhelmed by the number of insurers. 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. Here are the best rates from the best car insurance companies.

1. GEICO

Monthly rates: $46-$106

Coverage: Liability, medical payments, personal injury protection (PIP), 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:

• No local offices
• Limited-feature app and website

The nation’s second-largest auto insurer — and one of the best auto insurance companies — GEICO boasts a claims satisfaction rate from customers of 871 out of 1,000, based on J.D. Power’s independent study. GEICO claims it has the financial strength to deliver the best cheap car insurance to drivers, without compromising on quality or service.

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. As a customer, you’ll have access to a locator that helps you find the cheapest gas, a car-buying tool, and special discounts if you’re in the military, accident-free, a member or employee of certain groups, or a federal worker or student.

2. State Farm

Monthly rates: $75-$205

Coverage: Collision, comprehensive, liability, car rental and travel expenses, uninsured and underinsured motorists, medical payments, emergency road service and rideshare driver

Pros:

• Rideshare coverage
• Unique ways to save on car insurance
• Over 19,000 agents nationwide

Cons:

• Limited optional coverages
• No military discounts available

State Farm is the largest auto insurance provider in the U.S. Like GEICO, it utilizes its financial strength to offer discounts and maintain its service quality.

State Farm’s Drive Safe & Save program uses your smartphone or the car’s OnStar or SYNC system to calculate up to 50% added savings based on your driving, and the Steer Clear program offers cheap car insurance for young drivers with good records. You can also save by insuring multiple vehicles and more.

3. Farmers

Monthly rates: $89-$239

Coverage: Liability, collision, comprehensive, medical, personal injury, towing, roadside service, rental reimbursement, loss of use, guaranteed value, custom equipment, glass deductible buyback, spare parts, windshield and glass, original manufacturer equipment, new car replacement, accident forgiveness, rideshare and uninsured and underinsured motorists

Pros:

• Car insurance bundles make it easy to choose the best auto insurance policy
• Wide range of coverage options
• Flexible online quote tool

Cons:

• Only available in 41 states

Farmers have experienced agents ready to help out with any questions you might have regarding your policy. In addition, its policies are customizable so you get the insurance you need. The company also says it handles claims quickly and easily, which most drivers will appreciate.

Farmers offer a number of discounts, as well, for things such as bundling your homeowners and auto insurance, being a good student, insuring multiple vehicles and owning an alternative fuel car. Because the company’s discounts vary by state, ask an agent for the ones available where you live.

4. Progressive

Monthly rates: $98-$173

Coverage: Liability, medical payments, comprehensive, collision, roadside assistance, loan/lease payoff, rental car, custom parts and equipment, rideshare, deductible savings bank and uninsured/underinsuredmotorist

Pros:

• Name Your Price tool allows you to set a budget
• Young driver discounts for teens and students
• Your deductible could drop every year without a claim

Cons:

• Mobile app received an average rating by users

Progressive claims customers could save over $700 when they request a free quote. You can also get a multi-policy, good safe driver, multi-car, good student, teen driver, homeowner and more discounts.

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: $147-$200

Coverage: Bodily injury, property damage, comprehensive and collision, uninsured and underinsured motorists, medical payments, personal injury protection, custom equipment, emergency road service, car rental and travel expenses

Pros:

• Wide range of coverage and discounts
• Full-featured mobile app
• Over 12,000 agents and offices nationwide

Cons:

• Some policyholders complain of slow claims process

Another one of the best companies for auto insurance, Allstate will discount your rate if you sign up for and remain active in Allstate’s Drivewise program, which measures your safe driving behaviors and rewards you for it with cash back. You can also accumulate Allstate Rewards points — redeemable for merchandise and gift cards — by successfully completing safe driving challenges.

Takeaway

Finding cheap car insurance is possible when you know what carriers offer the lowest rates and best discounts. Choose a handful of companies, get online quotes and compare them to find the provider with the best rate.

Cynthia Bowman and Andrew Lisa contributed to the reporting for this article.

Methodology: Results are based on insuring a non-hybrid, 2017 Toyota Camry LE owned by a single, 35-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.

About the Author

Barri Segal

Barri Segal has 20+ years of experience in the publishing and advertising industries, writing and editing for all styles, genres, mediums, and audiences. She has been writing on personal finance topics for 12 years and gains great satisfaction from making a difference in consumers’ lives.