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Cheapest Car Insurance Companies in 2026
June 14, 2026
June 14, 2026
The good news is there are a number of car insurance companies with affordable rates for all types of drivers.
To help you score a good deal on an auto policy, we’ve scoured the market to reveal this list of the cheapest car insurance companies. In addition to rates and value, we considered other important factors, such as coverage options, claims process, customer service, and availability.
Why we picked it:
If you’re part of the military community, you can lock in cheap coverage with USAA. The insurance company offers military-specific discounts, such as the military-on-base discount plus two unique app programs that can help you save even more on your auto policy.
Once you enroll in the SafePilot telematics program and prove you’re a responsible driver, you can secure a great deal on your premium. If you drive 8,000 miles per year or less, SafePilot Miles offers pay-per-mile coverage that can also lead to significant savings.
Pros
Bundling discounts available
Offers overseas car insurance coverage
Free online quotes
Cons
Only caters to the military community
SafePilot Miles is not available everywhere
Fewer discounts than competitors
Why we picked it:
According to GEICO, new customers report they save an average of $700 per year on their car insurance coverage. This may be because of the insurer’s long list of discounts, including the clean driving record discount, multi-vehicle discount, homeownership discount, and student away at school discount.
GEICO also offers the DriveEasy telematics program, which may lower your rate by up to 15% if you demonstrate safe driving behaviors. The insurance company also has a variety of articles and resources on its website to help you land an affordable auto policy.
Pros
24/7 customer service
Offers roadside assistance for as low as $14 per vehicle
Highly-rated mobile app
Cons
Discount availability varies by state
Minimal add-ons
Poor TrustPilot rating
Why we picked it:
Travelers may reward you with a discount when you bundle car insurance with another policy, such as home insurance, condo insurance, or renters insurance. Plus, you can save even more if you add on additional coverage, like personal items insurance or umbrella insurance.
The insurance company might also offer a discount for being a homeowner, owning an electric or hybrid vehicle, paying in full, completing an approved driving course, and insuring multiple cars. To learn more about savings opportunities that might apply to you, request a quote online or reach out to a local Traveler’s agent.
Pros
IntelliDrive telematics program can lead to lower premiums
Special rates for certain employees or members of organizations
Highly-rated mobile app
Cons
Not available in all states
Limited availability for driveshare coverage
Below-average customer satisfaction ratings
Why we picked it:
ERIE stands out for its ERIE Rate Lock program, which ensures your premium will stay the same unless you add or remove a car or a driver or move. Also, if you’d like some extra coverage without breaking the bank, ERIE Auto Plus may be worthwhile. It allows you to increase your limits for pennies on the dollar.
In addition, the insurer also offers a roadside and rental reimbursement bundle, pet coverage for up to $500 per pet, and personal item coverage for up to $350. ERIE agents are available to help you hone in on the ideal car insurance and determine how to save on your policy.
Pros
YourTurn safe driving program rewards you with gift cards and/or charity donations
Discounts for multiple vehicles, reduced usage, young drivers, and more
Xtra Protection Features includes additional coverages for no extra cost
Cons
Only available in select states
No online quotes
Must work with an agent to finalize coverage
Why we picked it:
State Farm has been in the car insurance industry for over 100 years. The Drive Safe & Save program can allow you to save up to 30% on your car insurance plan. You’ll even get a 10% discount for signing up and downloading the State Farm app so it can monitor your driving habits.
Also, if you’re under 25, you can enroll in the Steer Clear program and save on your premiums for learning how to become a safe driver. If you consult a State Farm agent, you may learn about discounts that aren’t necessarily advertised and maximize your savings.
Pros
Discounts for young and responsible drivers
Bundling savings
Online quotes available
Cons
Discounts vary by state
Not available in Massachusetts or Rhode Island
No pay per mile program
Why we picked it:
According to Progressive, the average customer saves over $800 when they switch to its car insurance offerings. Deductible Savings Bank, which is an optional add-on to a collision or comprehensive policy deducts $50 from your coverage every six months if you don’t file a claim or traffic violation.
Progressive also offers Snapshot, a telematics program that determines your rates based on how you drive. If you participate, you may save an average of $322 per year. In addition, the Name Your Price Tool that allows you to state what you want to pay for your coverage and shows you options that align with your budget.
Pros
Average bundling discount of 5%
PerkShare: Exclusive discounts for lifestyle products and services
Loyalty Rewards program
Cons
Limited Snapshot availability
Higher than average rates for teen drivers
Mixed customer satisfaction reviews
Why we picked it:
If you only drive on occasion because you’re retired or work from home, for example you can sign up for American Family’s MilesMyWay program and only pay for the miles you drive. MilesMyWay is designed for drivers who drive less than 8,000 miles per year but if you don’t meet that requirement, DriveMyWay might be worthwhile.
With DriveMyWay, the insurer’s telematics option, you can save up to 20% for practicing safe driving behaviors. Other savings opportunities with American Family include the bundle discount, multiple vehicle discount, and defensive driver discount.
Pros
Online quotes
Personalized service through local agents
MyAmFam app
Cons
MilesMyWay is only available in some states
Rates may go up with DriveMyWay
Fewer discounts than other insurers
Why we picked it:
Auto-Owners employs local, independent agents you can work with to find a great deal on your car insurance plan. They can help you determine the ideal coverage for your budget and share discount opportunities you might not be aware of on your own.
Speaking of discounts, you may land a discount if you enroll in paperless billing, choose a car with certain safety features, pay your premium in full, or get good grades in school. Also, Auto-Owners offers at-fault accident forgiveness that will waive your accident surcharge after your first at-fault accident.
Pros
Offers a multi-policy discount
Common loss deductible if you bundle your auto and home insurance
Lower premiums for a history of a favorable loss history
Cons
No online quotes
Doesn’t offer telematics or pay-per-mile programs
Only available in select states
Why we picked it:
If you have a clean record and history of safe driving, Nationwide might be a good fit as it offers several applicable savings opportunities. For example, you may enroll in SmartRide and score a discount for proving you’re a responsible driver. Also, if you have at least five years of safe driving under your belt, you may qualify for cheaper coverage.
According to the insurer, you can save an average of $1,032 when you bundle your car and home insurance. To find out your rate, get started online with a free quote or reach out to a local Nationwide agent.
Pros
SmartMiles for low-mileage drivers
Vanishing deductible for deductible savings
Annual reviews to help maximize discount opportunities
Cons
Not available everywhere
Below-average customer service ratings
Poor Better Business Bureau (BBB) reviews
Our seasoned team reviewed car insurance companies' across these categories: coverage options, availability, rates and value, claims process and user experience, and customer service. Let’s take a closer look at each one.
Coverage Options: We uncovered the standard and optional car insurance policies available with each insurance company. Highly customizable coverage was important to us.
Availability: Our team looked at the geographical presence of each car insurer. We also paid attention to how easy it is to get a quote and access information digitally.
Rates and Value: Since this guide is about the cheapest car insurance companies, each company’s rates and how they compared to national averages were of utmost importance. We also focused on discounts and pricing transparency.
Claims Process and User Experience: Our team assessed the different claim filing channels of each insurer plus turnaround times and digital tools to support claims and policy management.
Customer Service: We read reviews from customers across several third-party review sites, like TrustPilot and the Better Business Bureau (BBB). Plus, we looked at years in business and responsiveness.
As you explore cheap car insurance companies, it’s a good idea to prioritize these features:
Premiums: Of course, affordable rates should be top of mind. To determine whether an auto policy is a good deal, get quotes from at least three different insurers. Make sure you’re comparing the same level of coverage.
Discounts: Most car insurance companies offer a variety of discount opportunities to help policyholders from all walks of life save money. You can find a list of discounts on each insurer’s website but it’s a good idea to consult an insurance agent or the company directly as some discounts aren’t advertised.
Telematics: If you consider yourself a fairly safe driver and can avoid speeding, sudden braking, and other dangerous activities, you can sign up for a telematics program and get rewarded with a discount.
Pay-Per-Mile Insurance: Not all insurance companies offer pay-per-mile coverage but if you don’t drive often (less than 12,000 or 10,000 miles per year), a pay-per-mile policy can lead to some serious savings. You’ll only pay for the miles you drive.
Vanishing Deductible: If you’re looking for a way to save on your deductible, a vanishing deductible, which is typically offered as an add-on, will reduce your deductible by a set amount if you go a certain amount of time without accidents and/or violations.
These days, everything is expensive, including car insurance. The good news is if you do your research and educate yourself, you can enjoy meaningful savings. From leveraging discounts to maintaining a clean driving record, these strategies can make a real difference:
While it might be tempting to go with the first car insurance company you find, doing so can cost you hundreds or extra thousands of dollars. “Compare quotes from different insurers to find the best rate. Prices can vary significantly between companies,” explained Ekstrom.
Take a look at the discount list outlined on each insurance company’s website. You may also ask your insurer or agent about available discounts, such as those for multi-policy, paying premiums in full, or safety features in your vehicle.
Make sure you’re not paying for the same coverage twice. “If your car insurance already includes roadside assistance, for instance, you may not need a separate membership for that service,” said Katie Ekstrom, AVP of Auto Product Development at Travelers Insurance.
A higher deductible can lower your premium. Just ensure you can afford the deductible in case of a claim. If you don’t have a solid emergency fund or live on a tight budget, this might not be an option.
Safe driving can lead to lower rates. Avoid accidents and traffic violations to keep your premiums down. Depending on your situation, it might make sense to take a defensive driving course to improve your skills. Some insurance companies will even reward you for doing so.
Your car insurance coverage is not set in stone. In fact, your circumstances are likely to change often. That’s why you should regularly assess your coverage needs and adjust them as necessary. “You might be paying for coverage you no longer need,” explained Ekstrom.
The BestMoney editorial team is composed of writers and experts covering a full range of financial services. Our mission is to simplify the process of selecting the right provider for every need, leveraging our extensive industry knowledge to deliver clear, reliable advice.
