The Best Cheap Car Insurance Companies of July 2022

In the US, all drivers must have liability

car insurance

. However, liability minimum coverage requirements vary by state. If you finance or lease your car, your lender probably requires comprehensive and collision coverage. Always start with car insurance quotes and then read here for some of the best, cheap car insurances of 2022.

Insider compiled data from 20 different life insurance companies based on customer service, financial stability, asset size rankings, and premium prices where available. Here are our car insurance top picks for affordability and value. A few of the top companies do not have quotes available online. Although it makes it harder to shop and compare, your goal should be to have the best coverage that fits your circumstances.

State Farm has been in business since 1922. It has a national presence with good auto claims satisfaction and an average monthly premium of $50 for drivers with a clean record, according to Insurify.

State Farm auto insurance features and discounts

• Rideshare insurance — Covers you if you operate your car as an Uber or Lyft driver.
• Rental car reimbursement — Covers you if your car is in the repair shop or undrivable.
• Drive Safe & Save — This telematics smartphone app gives drivers discounts based on driving behavior and mileage.
• OnStar discount— Earn a discount by enrolling your eligible OnStar-enabled vehicle in Drive Safe & Save.
• Steer Clear discount — Young drivers up to age 25 can earn a discount for demonstrating safe driving habits.
• Accident-free discount — Get a discount if State Farm has insured your car for at least three consecutive years without an accident.
• Good student discount — Discount for students 16 to 25 years old enrolled full-time in high school or college with a B or 3.0 GPA or a class ranking in the top 20%.
• Student away at school discount — This discount applies if your student moves away to school and only uses the car while at home during school vacations and holidays.
• Defensive driving course discount — Taking a driver safety course may help you get car insurance discounts with State Farm.

Read our State Farm insurance review to learn more.

State Farm auto insurance quotes

State Farm is inexpensive for drivers with a clean record, a DUI, an at-fault accident, and a speeding ticket compared to the national average and among its competitors. However, rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the Insurance Information Institute (III).

Data sourced from Insurify

Visit State Farm’s auto website to learn more.

Best car insurance for military members: USAA Auto Insurance

USAA is only available to active-duty military, veterans, and their families. It’s the most affordable option for car insurance in many states with outstanding claims satisfaction and an average monthly premium of $149.

USAA auto insurance features and discounts

•  Safe Pilot — This app gives drivers discounts based on driving behavior and mileage.
• Rideshare coverage — Coverage if you deliver for an app-based Transportation Network Company (TNC), like Uber or Lyft.
• Accident forgiveness — If you’re accident-free for five years, the policy surcharge will be waived for your first at-fault accident.
• Pro-Active Crash Detection — You’ll be prompted to start the claims process when a collision is detected.
• Telematics Enabled Claims (TEC) — Expedites the claims process for Safe Pilot app users by letting claims reps auto-fill data.
• Good student discount — A discount for students who maintain a certain grade average.

USAA auto insurance quotes

USAA is more expensive for drivers with a clean record, a DUI, an at-fault accident, and a speeding ticket compared to the national average. However, there are many discounts and saving opportunities for military members. Rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the III.

Read our USAA insurance review to learn more.

Data sourced from Insurify

Visit USAA’s auto insurance website to learn more.

Geico has been around since 1936, initially as insurance for government employees. It has a nationwide presence, high marks in claims satisfaction, and is typically the most affordable coverage with an average monthly premium of $46. It’s also friendly to drivers with poor credit scores.

Other features and discounts include:

• Military — Receive up to 15% off for military and up to 25% for emergency deployment.
•  Federal employees — Get up to 12% off for active or retired federal workers with GS-7 or above designation.
• Partner groups — Discounts for alumni associations, fraternities and sororities, and professional organizations that have partnered with GEICO.
• Airbag discount — Receive up to 23% off for a vehicle with airbags.
• Anti-lock brakes — Get up to 5% off for a vehicle with factory-installed anti-lock brakes.
• Anti-theft system — Receive up to 23% off for a vehicle with a built-in anti-theft system.
• New vehicle — Get up to 15% off for three models years or newer vehicles.
• Good driver — Receive up to 22% off if you are five or more years accident-free.
• Good student — Get up to 15% off for high school or college students who maintain a B or better average.

GEICO auto insurance quotes

Geico has some of the lowest rates for drivers with a clean record, a DUI, an at-fault accident, and a speeding ticket compared to the national average. However, rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the III.

Read our GEICO insurance review to learn more.

Data sourced from Insurify

Visit GEICO’s auto insurance website to learn more.

Best car insurance after an accident, DUI, or speeding ticket: Erie Auto Insurance

Erie Insurance has been in business since 1925. Although it’s only available in 12 states, it has a reputation for low prices and high marks in customer service with the average cost for a typical adult driver at 48 per month.

Erie auto insurance features and discounts

• Diminishing deductible. Offers up to $100 off your deductible for every year a driver is claims-free up to a maximum of $500.
• YourTurn program. YourTurn is a telematics smartphone app that allows safe drivers to earn cash. Drivers ages 16-23 can earn rewards of up to $10 every two weeks, and ages 24+ can earn rewards of up to $5 every two weeks, based on driving 50 tracked miles and the participating driver’s score during the scoring period. It may not be available in all states.
• Rate lock. Allows customers to lock a rate for an indefinite period as long drivers and cars remain the same.
• Auto security endorsement. If your vehicle is less than two years old and totaled, it will be replaced with the newest model year. If your vehicle is older than two years, it will be replaced with the same model but two years newer and 30,000 fewer miles than your original vehicle.
• Pet coverage. If your pet is injured in your vehicle.

Erie auto insurance quotes

Erie Insurance has the lowest rates for drivers w a DUI, an at-fault accident, and a speeding ticket compared to the national average and among its competitors. However, rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the III.

Read our Erie insurance review to learn more.

Data sourced from Insurify

Visit Erie’s auto insurance website to learn more.

The Hartford has been in business since 1810 and has a national presence. It was top-ranked for claims satisfaction. Its

auto insurance

is available exclusively to AARP members.

The Hartford auto insurance features and discounts

• New car replacement coverage — If you total your new car, The Hartford will replace your car with the same make, model, and equipment without subtracting anything for depreciation.
• RecoverCare coverage — Helps pay for home services, like snow removal, if you’re injured in an accident and can’t do them yourself.
• Lifetime car repair assurance — Gives you access to 1,600 authorized repair shops.
• Disappearing Deductible — An optional benefit reduces your collision deductible as long as you are a safe driver and maintain a clean driving record.
• Accident forgiveness — Your first accident is forgiven as long as all policy drivers have a clean driving record and are accident-free for five years straight.

The Hartford auto insurance quotes

The Hartford is slightly more expensive for clean drivers, drivers with a DUI record, an at-fault accident, and a speeding ticket compared to the national average and among its competitors. However, there are many saving opportunities for AARP members. Rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the III.

Read our The Hartford insurance review to learn more.

Data sourced from Insurify

Visit The Hartford’s auto insurance website to learn more.

Best car insurance companies ranked by claims satisfaction

Claims satisfaction refers to how customers feel about how insurance companies settle claims and the claims process. Below are the 2021 rankings from J.D. Power :

Cheapest car insurance after an at-fault accident

Your driving record is critical in determining how much you pay for auto insurance. A bad one can cost you. Premiums can increase by almost 50% after an at-fault accident claim, according to an analysis by The Zebra, an insurance comparison website. The percentage of these increases will vary from company and stay on your record for about three years, according to the Insurance Information Institute.

Here are a few of the most affordable car insurance companies for those with an at-fault accident on record:

Source: Insurify

Average premiums for seniors and teen drivers

Because teen drivers are new drivers with little driving history and more prone to accidents, their rates are high. However, most insurance companies offer discounts to teen drivers for good grades or taking driving safety classes.

Senior drivers typically see an uptick in car insurance premiums as they age, but not as much of an increase as new or teen drivers. If you’re still driving in your 60s and 70s, there are ways to negotiate cheaper auto insurance rates, like pay-per-mile usage.

Data provided by Goosehead Insurance

Car insurance companies ranked by financial stability

Here’s how our picks for best cheap car insurance stack up in terms of financial stability, according to credit-rating agency AM Best.

How did we come up with the best car insurance companies for 2022?

Insider collected data on the top 25 auto insurance companies based on market share from S&P Global Intelligence. We picked our top five based on financial stability ratings, claims satisfaction, market share, and sample premiums.

Claims satisfaction: We use J.D. Power’s auto claims satisfaction survey to evaluate the quality of service a company provides to its customers.This survey used responses from 7,345 auto insurance customers who settled a claim within the past six months. Car insurance companies ranked No.1 through #8 are above the industry average in customer satisfaction.

Financial stability ratings: We use AM’s Best to determine a provider’s financial strength. AM’s Best is a credit rating agency that assesses an insurance company’s ability to pay claims to its policyholders. A company that receives an A++ to B+ is stable in financial strength, while anything lower than a B means that a company is unstable or unable to meet its financial obligations.

Market share: Market share refers to the percentage of a company’s insurance market. The higher a company’s market share, the more popular it is among policyholders nationwide. We gathered data on market shares from the S&P Global Market Intelligence.

Average monthly premiums: While lower car insurance premiums do not necessarily mean quality insurance, we do our best to balance a policy’s cost with the value an insurer provides. A good monthly premium is on par with or below the average cost of car insurance which is $1,070 per year or about $89 per month, according to recent data from the Insurance Information Institute.

Frequently asked questions — Best cheap car insurance

What are the different types of car insurance?

There are four main types of car insurance: comprehensive, collision, and liability. Full coverage is a combination of the three. Drivers in the US must have liability coverage, but if you finance or lease your car, your lender probably requires comprehensive and collision coverage.

Comprehensive coverage replaces or repairs your vehicle if it’s stolen or damaged. Comprehensive coverage typically covers theft, fire, vandalism, or falling objects like a tree.

Collision insurance repairs your car if it’s damaged in a collision with another vehicle or object.

If you’re involved in an accident, liability insurance covers damage you cause to the other vehicle, driver, and passengers — not your vehicle. Liability coverage is required by law — except in New Hampshire.

The two main components of liability insurance are bodily injury and property damage, which most states require. Liability insurance also includes uninsured motorist and underinsured motorist coverage.

How can I find the best car insurance rates for me?

Everyone’s car insurance rates will vary depending on the coverage you chose. There are other factors that can go into pricing a premium and every car insurance company will evaluate you on different factors and weigh those factors differently like credit scores, driving history, accidents, type of car, mileage, and where you live.

Shop for affordable carriers that meet your coverage needs by getting quotes from several different insurance companies and comparing them.

To find the best one for you out of the quotes you’ve obtained, compare the coverage types, limits, and deductible, or the amount you’ll pay out of pocket if you’re involved in an accident. The policy with the lowest price for coverage, the most coverage types and limits, and the lowest deductible is the best one for you.

Who offers the cheapest auto insurance rates?

According to Insider’s research, GEICO is offering the best cheap car insurance in 2022, with Erie as a close second in places where it’s available (see above for details). However, the car insurance company that’s cheapest for one person may not be for another. Before purchasing an insurance policy, you’ll want to get four or five quotes from different insurance companies, just to make sure that you’re getting the best price.

What is the best-rated car insurance company for claims satisfaction?

According to 2021 J.D. Power and Associates data on customer satisfaction, The Hartford and Erie take the top spots.

Is Progressive or GEICO better?

There’s a lot of buzz around these two options, but in Insider’s calculations, GEICO comes out on top. Ranked highly for both value and customer service, GEICO tends to stand out. It won out in several of the scenarios above. While you’re shopping, it might be worth getting quotes from both and seeing which one stands out.

What’s the best car insurance option for students?

According to Insider’s research, Erie Insurance generally looked to be the best insurance for young adults and new drivers (in states where it’s available).

One of the best ways to save on car insurance for a teen or young adult driver is to join a family policy. On a family car insurance policy, your premiums will be about 20% lower than having a separate plan, according to reporting by The Balance. If joining a family plan is an option, it might be the best for a teen driver.

Liz Knueven

Personal Finance Reporter

Alani Asis

Personal Finance Reviews Fellow