Below are the average rates across all states for the seven largest car insurers in the United States. USAA, the cheapest one, is not classified because it is not available to everyone.
|Company||Average annual rate for good drivers|
|1. State Farm||$1,354|
|6. Liberty Mutual||$2,764|
|*USAA is only available to active military, veterans and their families.|
How do we determine the cheapest car insurance in a big company?
Only seven auto insurance companies represent 65% of the US auto insurance policy market. They are Allstate, Farmers, Geico, Liberty Mutual, Progressive and State Farm, which are available to anyone, and USAA, the insurer for active military members, veterans and their families.
Audatex compared the quotes of these insurers in postal codes throughout the country. Rates are for policies that include liability coverage, collision, comprehensive coverage for motorists without insurance / with insufficient protection, as well as any other coverage required in each state. Our “good driver” profile is a 40-year-old man with no traffic and credit violations at the “good” level.
Keep in mind that these are averages across the country, so the rates in your area will be different. Credit history and fault accidents can strongly affect insurance rates. It can also age, marital status, and other factors. That is why it is essential to compare car insurance quotes from several companies to find the best rate.
Summary: the cheapest of the big car insurance companies
- State Farm: Cheaper for good drivers, drivers with a missing accident and minimal coverage.
- Geico: It is cheap for good drivers with poor reputation.
- USAA: Cheaper for military, veterans and their families.
Cheap rates from small insurers
Finding low-costautomobile insurancedoesn’t mean that you justought tostick withmassive insurance firms. Regional and small insurers can overcome the lower offers of the big ones, and often have excellent customer service.
Cheaper in general: car insurance liability only
The cheapest car insurance, period, will probably have the minimum coverage required in your state. In most states, this is only liability insurance, which covers property damage and third-party medical bills due to accidents you cause. Some states also require uninsured or underinsured motorist coverage, which pays for your injuries or damages if a guilty driver does not have enough insurance.
Comprehensive and collision coverage policies are more expensive, but they cover it in case your car is stolen or damaged, regardless of who (or what) caused it. When you add them to liability and uninsured / underinsured coverage, it is commonly considered “full coverage.”