According to our analysis of average car insurance rates, USAA is the cheapest insurer overall, but its policies are exclusive to military members, veterans and their families. If you don’t qualify, Travelers is the next-cheapest company.
Key Takeaways
- USAA’s average annual premium is 45% lower than the national average. Travelers’ is 29% cheaper than the average.
- Our research shows that Erie is the most affordable for teenage drivers, while adults may find the cheapest rates from USAA and Travelers.
- You may be able to find cheaper car insurance. Some tips include shopping around, asking for discounts and improving your driving record.
Compare the
USAA is the cheapest car insurance company in our analysis, with an average annual rate of $1,399. However, many drivers won’t be eligible for coverage since it’s only available to military members, veterans and their families.
Travelers is the next-cheapest insurer in our analysis, with an average annual rate of $1,788 – $389 higher than USAA’s. However, Travelers is still significantly cheaper than the average cost of car insurance, which is $2,524.
The table below shows the five cheapest companies and their average annual premiums:
Age is one factor insurers consider when setting your rate. It helps them determine how risky you are to insure. Younger drivers with limited experience are often more likely to get into an accident than older, more seasoned motorists.
According to our analysis, teen motorists are consistently the most expensive age group to insure, while senior drivers are the cheapest.
The table below includes the cheapest companies by driver age.
As you get older, rates tend to decrease as long as you maintain a clean driving record. We found that young adults, single 25-year-olds in our rate study, pay an average of $3,131 (females) and $3,244 (males). In our analysis, USAA has the lowest average annual premiums at $1,815 for females and $1,905 for males.
If you aren’t eligible for USAA, Travelers is the next-cheapest insurer for females in this age group at $1,987, and Geico is the next-cheapest for males at $2,053. Both insurers are still significantly cheaper than the national average.
Adult drivers, married 40-year-olds, may find the cheapest rates from USAA or Travelers. While USAA is the cheapest in our study with average annual premiums of around $1,400, most drivers may not be eligible for its coverage. Travelers is the second-cheapest, with average annual rates of $1,771 for female adults and $1,806 for males.
USAA is the cheapest company for senior drivers in the military community, while Travelers is the next-cheapest insurer. USAA’s average premiums for this age group (married 60-year-olds) are 41% and 43% lower than the national average for females and males, respectively. Travelers’ are 30% lower than average for females and 31% lower for males.
Your driving record is another key factor that helps insurers determine your risk. Drivers with blemishes on their record – like speeding violations, at-fault accidents and DUIs – typically pay more for coverage.
According to our analysis, drivers with clean records pay an average of $2,524 per year. USAA is the cheapest insurer for drivers with clean records, with an average annual premium of $1,399. If you don’t qualify for USAA, Travelers is the second-cheapest at $1,788.
Compared to drivers with clean records, those with one speeding ticket pay $665 more, those with one at-fault accident pay $1,312 more, and those with one DUI pay $2,326 more on average.
With an average annual rate of $1,698, USAA is the cheapest insurer for drivers with one speeding violation on their record. This rate is nearly $1,500 less than the national average.
However, since USAA has limited availability, Erie may be the cheapest for most drivers in this category. Its average annual premium is $2,020, which is nearly $1,200 less than the average.
After one at-fault accident, you may find the cheapest car insurance from USAA (if you’re eligible) or Erie. USAA’s average annual premium in this category is 47% less than the national average, while Erie’s is 39% less.
Among the driving record factors we analyzed, a DUI causes the largest rate increase. At $2,616 per year, Progressive has the lowest average rates in our analysis for drivers with one DUI. It’s 46% cheaper than the national average.
In some cases, your state may require you to file SR-22 or FR-44 paperwork to prove you carry sufficient insurance if you have a DUI. Your insurer must file the SR-22 or FR-44 on your behalf, but not all companies offer filing. If your insurer doesn’t, you may need to switch providers.
The more coverage you purchase, the higher your premium will be. The table below contains average annual rates for minimum and full coverage policies.
Almost all states require drivers to carry a minimum amount of car insurance coverage, but requirements vary. USAA offers the cheapest sample rate for minimum coverage policies at just $412 annually. That is 52% lower than the national average of $863. If you can’t get USAA, Erie is next-cheapest with an average annual premium of $491.
Before opting for the state minimum, carefully consider the risk. Minimum coverage could leave you vulnerable to financial loss if you’re in an accident or your vehicle is damaged in a non-collision event, such as an animal strike or fire.
Full coverage policies are more expensive but offer much more protection, including collision and comprehensive coverage that cover physical damage to your car.
Drivers seeking full coverage may find the lowest rates from USAA, but only eligible members of the military community qualify. In our analysis, this insurer has an average annual premium of $1,399, which is 45% lower than the national average.
Travelers is the cheapest for most people, with an average annual rate of $1,788, which is 29% less expensive than the national average.
Depending on your state, your insurer may consider your credit-based insurance score when setting your car insurance premium.
Certain aspects of your credit history influence your insurance score, such as your payment history, outstanding debt and the length of your credit history. It helps insurance companies assess your risk because studies suggest that how you manage your finances can help predict your likelihood to file a claim. Those with poor insurance scores are considered a higher risk and may pay more for a policy.
Our research shows that drivers with poor credit pay nearly $2,200 more for auto insurance on average than those with good credit.
While USAA has the cheapest average annual rate for drivers with poor credit at $2,597, Geico may be the cheapest for most drivers since USAA is only available to certain military community members. Geico’s average annual rate for these drivers is $2,953, which is almost $1,800 less than the national average for this category.
USAA is also the cheapest for drivers with good credit at $1,399 per year, and Travelers is the second-cheapest at $1,788. Both companies are significantly cheaper than this category’s national average of $2,524.
You may be able to get a lower car insurance rate. Consider the following steps:
- Shop around: Get quotes from different insurance companies to find the most affordable coverage.
- Ask about discounts: See if you qualify for policy savings. Ask your agent for a list of discounts your insurer offers.
- Increase your deductible: Your deductible is what you pay out of pocket when you file a claim before your coverage kicks in to cover the rest. Some state-required coverages (e.g., liability) don’t have a deductible, but collision and comprehensive coverage do. Selecting a higher deductible typically lowers your premium; just make sure you can afford to pay it.
- Improve your driving record: Avoid at-fault accidents, moving violations and DUIs to help lower your premium.
- Consider pay-per-mile insurance: If you don’t drive a lot, enrolling in a pay-per-mile insurance program may be cheaper than a traditional policy. With pay-per-mile, you pay a low base rate for coverage plus a fee for each mile you drive.
- Enroll in a usage-based insurance program: Many insurers offer usage-based insurance programs that use telematics technology to track your driving habits. If you’re a safe driver and choose to enroll, you could earn a discount.
- Improve your credit: In states that allow it, many insurers consider your credit-based insurance score when setting premiums. Improving your credit may decrease how much you pay.
While you’re on the hunt for the cheapest insurance, be sure to maintain adequate protection for your vehicle. With spring storms right around the corner, it’s important to remember that liability-only coverage won’t pay for weather-related damage to your car. You’ll need comprehensive coverage for that level of protection.
You can lower your auto insurance premiums if you qualify for certain discounts, like multi-policy, safe driving, loyalty, automatic payments and vehicle safety features. However, note that availability varies by insurer.
The table below includes a sample of the discounts offered by the 10 insurers in our best car insurance companies rating.
