Car insurance can be costly, especially if you have tickets, accidents, a teenager, or other risk factors hiking your rates. But it's possible to meet state requirements, protect yourself and your property, and avoid paying more than you must with affordable policies.
States have different guidelines on how much auto insurance you need. New Hampshire technically doesn't require auto insurance. But the financial responsibility aspect remains the same for every state: All 50 states require drivers to prove they can cover a set amount in damages if they injure another person or their property. Compare policy types from some of the best car insurance companies.
Here are Business Insider's picks for the cheapest auto insurance providers of 2025.
Featured Affordable Insurance Companies
842
A+
- Coverage available in all 50 states
- Discounts for bundling insurance products with competitive rates
- Highly rated with JD Power and AM Best
- Rates may jump significantly after your first accident or for higher risk drivers
- Mixed reviews on claims and customer service on sites like Consumer Affairs and TrustPilot
A highly ranked and long-standing insurance company, Progressive offers auto, home, motorcycle, and other insurance across the United States.
Progressive Auto Insurance- Ranked #17 out of 18 in auto claims satisfaction
- Bundling, vehicle safety, and student driver discounts
- Low rates
- Name your price tool
826
A+
- Offered in all states
- Multiple discounts to reduce cost including multi-policy discounts
- Strong customer service rankings and financial stabillity
- Captive agents can only quote Allstate products
- May not offer affordable coverage for high-risk drivers or households with teen drivers
- Rental reimbursements
- Student, vehicle safety, and good driving discounts
862
A+
- Many discounts and options to bundle insurance policies
- high customer satisfaction according to JD Power's auto insurance study
- Long history in the insurance industry
- Not available in Hawaii
- May not provide the most competitive rates for higher risk drivers
- Ranks high in customer satisfaction
- Discount for students and vehicle safety
Best Cheap Car Insurance Overall: State Farm Auto Insurance
State Farm Auto Insurance is the most consistent competitor in all regions of the country, according to JD Power's 2024 auto insurance customer satisfaction survey. This doesn't come as a surprise. State Farm offers a reliable and familiar name to do business with. It has agents on the ground dedicated to quoting and binding policies with custom discounts for each customer.
While State Farm agents provide you with the most competitive quote on company-specific products, agents can only provide you with quotes on State Farm insurance policies. They are considered "captive agents" meaning they cannot assist you in comparing rates elsewhere or if you don't qualify with State Farm. The good news is State Farm covers most drivers and families. This insurer also offers competitive rates for young drivers.
Read our State Farm auto insurance review.
Best Cheap Car Insurance for Military Members: USAA Auto Insurance
According to its website, USAA Auto Insurance has one stated mission: "to facilitate the financial security of its members, associates and their families", specifically military families. If you are a military member, you can buy a full range of financial products with USAA at discounted rates.
If you are a military spouse or other dependent, your military member needs to have a USAA account first. If the military member passes, children coming into adulthood can be USAA-eligible as long as the military member signed up while living. Keep in mind, not all USAA products are limited to military families. You can check its website to verify which ones.
Read our USAA car insurance review.
Best Cheap Car Insurance for Discounts: GEICO Auto Insurance
With its infamous GEICO Auto Insurance gecko, most people in the United States have at least heard the name GEICO. GEICO has insurance agents, but agents do not actively seek out customers. Instead, potential customers run quotes through its online system and sign up, manage plans, and more with assistance as needed from customer service agents.
Read our GEICO car insurance review.
Best Cheap Car Insurance for Seniors: The Hartford Auto Insurance
Known for its senior-friendly financial products and services, AARP also offers auto insurance as The Hartford Auto Insurance. You'll need to be signed up with AARP to get an auto insurance quote. But seniors can save on an auto insurance policy and get discounts on home, renter, recreational, and more.
For strong options beyond Hartford, consult our guide to the best car insurance for seniors.
Read our AARP car insurance review.
Best Cheap Car Insurance for High-Risk Drivers: Progressive Auto Insurance
Having a DUI, multiple traffic infractions, or poor credit in some states makes drivers difficult to insure. Some companies may choose not to renew coverage or accept policies. Whatever your circumstances, Progressive Auto Insurance offers consistently competitive rates for drivers with complicated driving records.
Read our Progressive auto insurance review.
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Compare insurance quotes to find the best affordable car insurance for you.
Why You Should Trust Us: How We Chose The Best Cheap Car Insurance
There is no one-size-fits-all solution for car insurance. Different companies assess the same risk and assign wildly varying premiums. We use resources, including industry powerhouses like JD Power and online customer reviews on sites like Trustpilot and the Better Business Bureau.
The popularity of the company and the price are two obvious factors. We also look at the coverage available, the likelihood of getting a policy, ease of maintenance once a policy is bound, and how quickly claims are paid. Many of the big names in auto insurance refuse to renew or accept policies with certain high-risk drivers. By combining all these factors and more, we narrow the list of companies to help readers find the right insurance coverage.
Read more about how Business Insider rates car insurance.
Cheap Car Insurance FAQs
If auto insurance companies won't insure you, you can look into your state's high-risk insurance pool, as each state-approved insurer is required to take on a certain number of high-risk drivers from this pool each year.
GEICO consistently offers the lowest rates for most drivers.
Drivers who pose a higher risk will pay more for car insurance. Insurance companies tend to view younger drivers as higher risk, along with people with multiple accidents and poor credit.
GEICO could be the cheaper option overall, but Progressive is generally a cheaper auto insurance option if you have a DUI or multiple traffic infractions.
