What is the cheapest auto insurance company?

The cheapest auto insurer varies by state, age, and driving record. On average, USAA (military only), GEICO, and State Farm offer the lowest rates for clean driving records. Erie Insurance is cheapest in states where it operates. Always compare at least 3-5 quotes for your specific situation.

How much is car insurance per month?

The national average for full coverage auto insurance is about $195/month ($2,340/year) in 2026. Minimum coverage averages $65/month. Rates vary wildly—from $90/month in Maine to $310/month in Michigan for full coverage.

What factors affect auto insurance rates?

The biggest factors are your driving record, age, location (state and ZIP code), credit score (in most states), vehicle type, coverage level, and annual mileage. A clean record and good credit can save you 40-60% compared to someone with accidents and poor credit.

Best Auto Insurance Companies of 2026: Rates, Coverage & Discounts

Auto insurance rates vary dramatically between companies, states, and driver profiles. Getting the right coverage at the right price starts with understanding what drives costs and comparing multiple quotes.

Average Auto Insurance Costs (2026)

National Averages

Coverage Level	Monthly	Annual
Full coverage (100/300/100)	$195	$2,340
State minimum	$65	$780
Liability only (50/100/50)	$85	$1,020

Full Coverage by Age

Age	Monthly	Annual	vs. Age 40
16	$520	$6,240	+167%
18	$420	$5,040	+115%
21	$310	$3,720	+59%
25	$230	$2,760	+18%
30	$200	$2,400	+3%
40	$195	$2,340	Baseline
50	$185	$2,220	-5%
60	$190	$2,280	-3%
70	$230	$2,760	+18%

Full Coverage by Driving Record

Record	Monthly	Annual	vs. Clean Record
Clean record	$195	$2,340	Baseline
1 speeding ticket	$230	$2,760	+18%
1 at-fault accident	$310	$3,720	+59%
DUI/DWI	$465	$5,580	+138%
2 at-fault accidents	$420	$5,040	+115%

Auto Insurance by State

Most Expensive States

State	Average Annual (Full Coverage)	vs. National Average
Michigan	$3,710	+59%
Louisiana	$3,310	+41%
Florida	$3,190	+36%
New York	$3,050	+30%
Nevada	$2,850	+22%

Cheapest States

State	Average Annual (Full Coverage)	vs. National Average
Maine	$1,080	-54%
Vermont	$1,120	-52%
New Hampshire	$1,160	-50%
Idaho	$1,210	-48%
Ohio	$1,250	-47%

What Affects Your Rate

Factor	Impact on Rate	How to Improve
Driving record	+20-140% for violations	Drive safely, take defensive driving course
Age	16-year-olds pay 2.5x more	Time (rates drop at 25)
Credit score	+40-100% for poor credit	Improve credit
Location (ZIP code)	Urban areas cost 20-40% more	Not easily changed
Vehicle type	Sports cars cost 15-30% more	Choose a safer, cheaper-to-insure car
Annual mileage	Low-mileage discount of 5-15%	Drive less or use telematics
Coverage level	Full vs. minimum = 2-3x difference	Choose based on assets and risk
Deductible	$500 deductible = 15-25% more vs. $1,000	Raise deductible if you can afford out-of-pocket
Bundling	Home + auto saves 5-25%	Bundle policies

Coverage Types Explained

Coverage	What It Pays For	Required?	Recommended Limits
Bodily injury liability	Other people’s injuries you cause	Yes (most states)	100/300 ($100K per person, $300K per accident)
Property damage liability	Other people’s property you damage	Yes (most states)	$100,000
Collision	Your car’s damage in an accident	No (yes if financed)	Actual cash value with $500-$1,000 deductible
Comprehensive	Your car: theft, weather, animals	No (yes if financed)	Actual cash value with $500 deductible
Uninsured/underinsured motorist	Hit by driver with no/little insurance	Varies by state	Match your liability limits
Medical payments/PIP	Your medical bills after an accident	Varies by state	$5,000-$10,000
Rental reimbursement	Rental car while yours is repaired	No	$30-$50/day
Roadside assistance	Towing, flat tires, lockouts	No	Basic coverage

How to Get the Cheapest Rate

Discount Checklist

Discount	Average Savings	How to Get It
Multi-policy (bundle home + auto)	5-25%	Same insurer for both
Good driver	10-25%	No accidents or tickets for 3-5 years
Good student	5-15%	GPA of 3.0+ for under-25 drivers
Multi-car	10-25%	Insure 2+ vehicles on same policy
Defensive driving course	5-10%	Complete approved course
Low mileage	5-15%	Drive under 7,500-10,000 miles/year
Telematics/usage-based	10-40%	Install app or device that monitors driving
Pay in full	5-10%	Pay 6- or 12-month premium upfront
Autopay/paperless	2-5%	Enroll in automatic billing
Military/federal employee	5-15%	USAA, GEICO, and others
Safety features	3-10%	Anti-theft, airbags, anti-lock brakes
Homeowner	3-5%	Own (not rent) your home

Stacking Discounts: Realistic Example

Discount	Savings
Bundling home + auto	-15%
Good driver (5+ years clean)	-15%
Autopay + paperless	-5%
Anti-theft device	-3%
Total discount	-38%
Original quote: $2,340/year	After discounts: $1,451/year

When to Drop Full Coverage

Situation	Recommendation
Car value under $5,000	Consider dropping comprehensive + collision
Car is paid off	No lender requirement; your choice
Car value under 10x your annual premium	Coverage costs more than it’s worth
You have a large emergency fund	Can self-insure for vehicle damage

Break-Even Rule

If your annual comprehensive + collision premium exceeds 10% of your car’s value, consider dropping it.

Car Value	Max Annual Premium for Full Coverage	If Premium Exceeds This
$3,000	$300	Drop comprehensive + collision
$5,000	$500	Consider dropping
$8,000	$800	Keep if premium is reasonable
$15,000	$1,500	Keep full coverage
$25,000+	$2,500	Always keep full coverage

How to Compare Auto Insurance Quotes

Step	Action
1	Decide on coverage levels (at least 100/300/100 recommended)
2	Get quotes from 5+ companies (online and agent)
3	Use the same coverage limits for all quotes
4	Ask about all available discounts
5	Check customer satisfaction ratings (J.D. Power, AM Best)
6	Verify the company’s financial strength (AM Best A rating or higher)
7	Read reviews about claims experience
8	Re-shop every 1-2 years (loyalty doesn’t pay)