Car insurance is required by law in most states. That means no matter what kind of vehicle you drive, it likely must be insured. It can be tempting to skimp on car insurance and search for the cheapest rates available. However, going for the absolute cheapest car insurance rates in your area may not be the best choice.
Policies with prices that sound too good to be true sometimes are. While you want to save money on car insurance, you also need to ensure you get coverage that comes through when you need it most.
The good news is that there are plenty of quality car insurance companies that sell highly affordable policies. A local independent insurance agent can help you find the cheapest car insurance in your area from a carrier that doesn't sacrifice quality or customer service. But first, you can use our guide to find some of the most affordable car insurance from top-rated carriers in 2026.
Key Takeaways - Cheap Car Insurance in 2026
You can get cheap car insurance by bundling your coverage, comparing quotes from multiple carriers, and, if possible, buying only the minimum coverage.
The cheapest states for car insurance in 2026 are Vermont, New Hampshire, Hawaii, Ohio, and Maine.
The most expensive states for car insurance in 2026 are Louisiana, Michigan, Nevada, Florida, and Washington, D.C.
USAA is the cheapest car insurance company in 2026, with full coverage rates averaging $1,487 per year, or about $124 per month.
Working with a local independent insurance agent is highly recommended, as they can shop and compare cheap car insurance quotes and policies from several carriers near you to find the best deal.
How to Get Cheap Car Insurance: 7 Easy Tips
There are several fairly easy, practical steps you can take to reduce your auto insurance rates, even if you already have a policy. Many drivers think they have no control over their premium costs once they've secured coverage.
However, you can try these cheap car insurance tips to reduce your auto insurance premiums. These seven moves can drop a typical car insurance premium by 10% to 40%.
Bundle your coverage
Do you have more than one type of insurance policy, such as auto insurance and homeowners insurance, renters insurance, condo insurance, or boat insurance? If so, you could save a lot of money on each policy by bundling them with the same carrier. Just bundling your auto insurance with either renters or homeowners insurance can help you save between 8% and 25% on your coverage.
Be sure to ask about bundling discounts. And if you have a policy with another insurance company, consider switching to reduce your rates. Your independent insurance agent can help you.
Increase your policy deductible
Your policy's deductible is the amount you must pay out of pocket each time you file a claim before receiving reimbursement. As with most types of insurance, the higher your auto insurance deductible, the lower your monthly or annual premiums. Just increasing your deductible from $500 to $1,000 can save you 15% to 20% on your premiums.
This can help you save a lot on your insurance payments and continue to save money if you maintain safe driving practices and never have to file a claim. Keep in mind that if you ever have to file a car insurance claim, you'll have to pay more out of your own pocket if you have a higher deductible.
Improve your credit score
Most states allow auto insurance companies to factor in your credit score when calculating your car insurance rates. However, credit is not allowed as a rating factor in California, Hawaii, Massachusetts, or Michigan.
In other states, safe driving behaviors are thought to be linked to responsible credit management, so many car insurance companies reward drivers with good credit scores with lower policy premiums.
If your credit score is below 600, you're considered to have poor credit and might pay an average of 20% to 30% more for your car insurance than drivers with excellent credit. Once your credit score has improved, check in with your car insurance company about lowering your rates. An independent insurance agent can also help you find cheap car insurance for drivers with bad credit.
Enroll in a telematics or usage-based program
Also known as usage-based insurance, telematics car insurance allows your carrier to monitor your driving habits through a GPS device in your vehicle or via a mobile app on your smartphone. The app or device automatically sends data to your car insurance company each time you drive and tracks behaviors such as sudden or heavy braking, speeding, rapid acceleration from stops, and swerving.
Drivers who practice safe driving habits or don't drive very often can easily start earning car insurance discounts through telematics programs. However, drivers who are prone to bad or unsafe behaviors, such as speeding, may not want to participate in a telematics program because the results could lead to increased coverage rates.
Popular telematics programs include Allstate's Drivewise, which can help you save up to 40%, Nationwide's SmartRide, which can also help you save up to 40% with no risk of rate increases, and Progressive's Snapshot, which can help you save an average of up to $322 per year upon policy renewal. Your independent insurance agent can help you get enrolled in your carrier's telematics program.
Reduce your coverage limits
One easy way to lower your auto insurance rates is to reduce your policy's coverage limits. You may be able to remove your comprehensive coverage or collision coverage, or lower the limits on your liability coverage or uninsured motorist coverage. This is another method that's best for safe drivers who have a low risk of ever having to file a claim.
Be aware that if you reduce your car insurance's limits and you get into an accident, or your vehicle gets stolen or vandalized, you'll have less possible reimbursement available to you to help pay for repairs or a replacement, or no coverage at all for theft or vandalism if you removed your comprehensive coverage.
However, it's typically recommended to drop full coverage car insurance and switch to liability-only coverage if you drive an older vehicle worth under a few thousand dollars.
Buy only the state minimum coverage
Most states in the U.S. require all drivers to at least carry liability insurance in two forms: bodily injury liability and property damage liability. Certain states also require uninsured motorist coverage, personal injury protection, or medical payments coverage.
In 2026, three states increased their minimum coverage requirements for auto insurance. California's new minimum requirements are 30/60/15, New Jersey's new minimums are 35/70/25, and North Carolina's new minimums are 50/100/50.
If you only purchase the minimum amount of car insurance required in your state, you'll pay much less for your policy. The average cost of liability car insurance is $820 per year in 2026. Again, it's critical to consider that if you choose this method to get cheaper car insurance, you'll have less coverage in case of an incident.
Shop around and compare quotes
One of the easiest ways to find the cheapest car insurance available is to shop around and compare cheap auto insurance quotes from a number of different carriers. A local independent insurance agent can do this for you since these agents have access to multiple low-cost car insurance companies.
They can compare coverage and costs and present you with several options for only quality, affordable policies. They'll get you set up with the best cheap car insurance in your area.
Cheap Car Insurance Discounts: 10 Common Ways to Save
Car insurance discounts are available from most carriers, but the specific discounts offered and the percentage of savings for each vary by insurer. Still, there are a number of common car insurance discounts you can typically expect to find from most insurance companies.
Stacking three or four discounts can typically help you reduce your premium by 30%-45%. Look for these 10 car insurance discounts to help reduce your premium rates:
Safe driver discounts
Drivers who maintain clean driving records are usually rewarded with cheap car insurance rates by their insurance companies. If you keep your record clear of any at-fault accidents, speeding tickets, or other traffic violations for a set number of years, you can start to earn a good driver discount.
Requirements vary by insurer, but many car insurance companies look for drivers to maintain safe habits for at least three to five years before they can start to earn savings. Typically, you can earn an average of 10%-23% savings if you remain ticket-free for three to five years.
Multi-car discounts
If you own more than one vehicle, it can be wise to insure them both through the same carrier. Most car insurance companies offer multi-car discounts if you cover more than one vehicle under the same policy.
One easy way for many drivers to obtain this type of discount is to share a car insurance policy with a spouse or domestic partner. Multi-car discounts can help a household save an average of $830 per year, and carrier savings range from 29% to 48%.
Safety features discounts
The safer your vehicle is to drive, the less of a risk it is to both you and your car insurance company. That's why drivers with various safety features installed in their vehicles are often rewarded with additional savings.
If your vehicle is equipped with anti-lock brakes (ABS), airbags, burglar alarms, lane-departure warnings, automatic emergency braking, or other anti-theft devices, you could earn a car insurance discount. Typical savings from a safety features discount are between 5% and 10%.
Defensive driving course discounts
Completing an approved defensive driving course is another easy way to qualify for a car insurance discount from most carriers. Check with your car insurance company first to find out which defensive driving courses could qualify you for savings before you sign up for a class. Note, however, that this discount is sometimes offered only to drivers at least 50 years old.
Typically, defensive driving course discounts can help you save between 5% and 10% on your coverage and are valid for three years after completing an approved course. AARP's Smart Driver course costs between $20 and $30 and can be completed online. This course is mandated for insurer participation in 35 jurisdictions.
Affiliation and group discounts
Being involved in or affiliated with many different kinds of organizations can help you earn a car insurance discount. Being a graduate of a certain college or university, an alumni association member, a military member, a federal employee, part of a professional group such as engineers or teachers, a member of a credit union, or a member of AARP are just a few common examples of ways to earn car insurance discounts.
Make sure to ask your car insurance company about affiliation discounts if you're an alumnus or affiliated with any other organizations. Typical savings range from 5%-10%.
Good student discounts
Many car insurance companies offer good student discounts. If you have an insured teen or young driver who is a student who maintains good grades on your car insurance policy, you might be eligible for savings.
Most carriers require students to maintain at least a 3.0 GPA or a B average, be full-time students, and be under 25 to qualify. Typical savings range from 7%-25%.
Student away-from-home discounts
For parents of insured student drivers, discounts may also be available if your teen lives away from home. This discount is often available only if the teen or young driver won't be using the insured vehicle while living on campus. The typical requirement is that the student must live at least 100 miles from home and have no regular access to the insured vehicle.
Homeowner discounts
Are you a car owner and also a homeowner? Then, you could qualify for an additional car insurance discount just for owning a home. This discount stacks with the bundling discount you could earn by getting your home insurance through the same carrier as your auto insurance.
Paid-in-full discounts
You can save yourself and your car insurance company money by paying your policy's premiums in full up front. Paying either your 6-month or 12-month premium in a single lump sum can reduce paperwork and electronic transactions.
Not to mention, there's increased convenience for many drivers who choose to pay for their coverage all at once. You'll just need to determine if this option is budget-friendly for you. Typical savings range from 5%-10%.
Autopay and paperless discounts
Signing up for automatic payments is another great way to earn car insurance discounts from most carriers. Many car insurance companies allow you to select a specific date for your payments to be auto-drafted each month as a bonus. Choosing autopay for your car insurance can offer a potential discount and one fewer bill to plan and remember to pay each month.
Many car insurance carriers also offer paperless billing to reduce expenses. Typical savings from autopay and paperless billing discounts range from 1% to 3%.
Do Car Insurance Rates Go Down Over Time?
Car insurance rates are by far the most expensive for teen drivers. Rates tend to drop the most between ages 18 and 19, and then again once drivers reach age 25. At age 25, drivers usually experience a significant decline in their auto insurance premiums, provided they maintain a clean driving record.
However, rates for senior drivers may start to increase slightly again after age 65, depending on the insurer. Here are some average car insurance costs by age to further illustrate this.
Average car insurance cost by age
The table below displays the average annual cost of full coverage car insurance for male and female drivers by age in 2026. Note the steep decline in pricing from age 18 to 19.
| Driver Age | Average Annual Full Coverage Rate for Males | Average Annual Full Coverage Rate for Females |
|---|---|---|
| 16 year-old | $5,936 | $5,545 |
| 17 year-old | $5,503 | $5,126 |
| 18 year-old | $7,667 | $7,042 |
| 19 year-old | $6,249 | $5,630 |
| 20 year-old | $5,731 | $5,166 |
| 21 year-old | $4,757 | $4,329 |
| 22 year-old | $4,358 | $4,011 |
| 23 year-old | $4,086 | $3,787 |
| 24 year-old | $3,870 | $3,607 |
| 25 year-old | $3,408 | $3,243 |
| 30 year-old | $2,899 | $2,854 |
| 35 year-old | $2,788 | $2,759 |
| 40 year-old | $2,707 | $2,687 |
| 50 year-old | $2,541 | $2,523 |
| 60 year-old | $2,455 | $2,424 |
| 70 year-old | $2,663 | $2,617 |
Your independent insurance agent can help you find the cheapest car insurance for young drivers in 2026.
What Are the Risks of Getting Cheap Car Insurance?
The risks of choosing cheap car insurance include poor customer service, high deductibles, limited coverage options, and more. Though buying the car insurance policy with the cheapest price tag may be tempting, you'll want to make sure you're not sacrificing the quality of your coverage.
Some car insurance companies have a reputation for being cheap while sacrificing customer service. Other carriers have been reported by customers as not paying out claims, even when an incident should have been covered.
Here are some of the major potential drawbacks to buying the cheapest car insurance available:
- Poor customer service: Sometimes, buying cheap coverage can mean paying for low-quality customer service right along with it. Certain cheap car insurance carriers reportedly pass customers between departments until they hang up in frustration or don't answer or return calls or communications at all. Car insurance is a type of coverage you absolutely want backed by an outstanding customer service experience. Consider if you ever need to file a claim after an accident, and how much worse the situation could become if you couldn't rely on your carrier to help you as promised.
- High deductible amounts: To advertise cheap car insurance, certain carriers cleverly hide the fact that their policies carry extremely high deductibles. While higher deductibles can help offset your premium payments, they also mean that you'd have to pay much more out of your own pocket before receiving reimbursement for any claims filed. In case of a car theft, an expensive accident, or a hefty lawsuit, you might end up wishing you'd chosen a policy with higher monthly premiums and a lower deductible amount.
- Lack of coverage options: Some car insurance companies only sell the minimum amount of coverage required by the state. This allows them to charge much lower premiums. However, the customer will only be covered by the bare minimum, likely limited to liability and possibly uninsured motorist, medical payments, or personal injury protection. After a major accident or a car theft, the driver could be left having to pay to repair or replace their vehicle on their own if they lacked collision coverage or comprehensive coverage. Basically, having liability-only coverage leaves no protection for the insured's own vehicle.
Of course, not all car insurance companies that advertise cheap auto insurance mean a sacrifice in service or quality. It's critical to research the available options and each car insurance company's reputation before choosing one based solely on rates. Be sure to look up customer reviews for each carrier and take note of mentions of poor claims responses or communication.
What Factors Influence Car Insurance Costs?
Factors influencing car insurance costs include driver age, location, chosen coverage, and more. Obtaining cheap car insurance near you can be easier when you understand a few of the factors that go into calculating your policy's costs. While you may not have control over all of these factors, there may be a few you can change or improve to help decrease your rates.
Here are some of the most common factors that impact car insurance costs:
- Driver age: Teen drivers and young adults pay the highest car insurance rates by far. Car insurance rates tend to drop significantly once a driver reaches age 25 and continue to drop steadily each year afterward. However, this trend starts to reverse around age 65.
- Location: Where you live can significantly impact car insurance rates as well. The average cost of new vehicles in your area, the area's risk of severe weather, and local car theft rates can all affect car insurance premiums.
- Coverage chosen: The types of coverage selected for your policy will affect its premium rate. If you buy a minimum liability-only policy, you'll pay much less than if you get full coverage. However, you could end up paying much more if you ever experience an accident, lawsuit, or other incident and lack the proper coverage.
- Driving record: Drivers with clean records free of accidents and traffic violations pay much less for their car insurance than those with at least one at-fault accident or speeding ticket. After a period of three to five years without accidents or violations, you might even start to receive a discount from your carrier.
- Vehicle type: The kind of vehicle you drive can greatly impact your car insurance rates as well. The more expensive your vehicle is to repair or replace, the more you'll have to pay for your coverage. Further, vehicles with higher safety ratings often earn lower car insurance rates because their drivers are statistically less likely to file claims.
- Annual mileage: The less you drive your car, the less of a risk you are to your car insurance carrier. If you drive fewer than a certain number of miles per year, you could be rewarded with much lower car insurance rates than if you make long commutes every day.
- Credit score: In areas where credit is allowed as a rating factor, having a better credit score can lead to much lower premium rates. Keep your credit in excellent or good standing to avoid higher rates.
- Insurance history: If you've filed car insurance claims in the past, you'll likely pay much higher rates, as your car insurance company will consider you as being a higher risk.
Many other factors can also play a role in determining your car insurance costs. To get an even better idea of these factors and exactly how much they can influence car insurance premiums in every location, check out our car insurance calculator.
The Cheapest Car Insurance Companies of 2026
There are plenty of top-quality car insurance carriers with excellent reputations that also offer affordable car insurance rates. Knowing where to find cheap car insurance that won't leave you stranded without the reimbursement you deserve after an accident is critical.
You want to be certain your carrier will deliver on its coverage promises in case you're ever faced with a lawsuit or an accident. That's why it's helpful to compare auto coverage from several top-rated carriers in your area with the help of an independent insurance agent.
Cheapest companies for full coverage in 2026
We compared some of the top cheap car insurance companies in the nation to find out which has the most affordable full coverage rates for 2026.
| Rank | Cheapest Car Insurance Companies | Annual Average Full Coverage Premium | Monthly Average Full Coverage Premium |
|---|---|---|---|
| 1 | USAA | $1,487 | $124 |
| 2 | Travelers | $1,664 | $139 |
| 3 | Progressive | $1,916 | $160 |
| 4 | Auto-Owners Insurance | $1,921 | $160 |
| 5 | Erie Insurance | $1,964 | $164 |
| 6 | Amica | $3,839 | $320 |
An independent insurance agent can help you get cheap full coverage car insurance from one of these outstanding carriers.
Cheapest companies for minimum coverage in 2026
Looking for cheap liability-only car insurance? The table below compares the top companies for the cheapest minimum coverage car insurance this year.
| Top Carriers | Average Annual Cost of Minimum Coverage | Average Monthly Cost of Minimum Coverage |
|---|---|---|
| USAA | $390 | $33 |
| Erie | $523 | $44 |
| Auto-Owners | $578 | $48 |
| Travelers | $688 | $57 |
| Progressive | $774 | $65 |
How We Select the Cheapest Car Insurance Companies
To determine the cheapest car insurance companies, we looked at the coverage offered, rates, and available discounts. We compared each carrier's average prices for male and female drivers who drove an average of 12,000 miles per year, purchased a medium amount of coverage, and had good driving records and credit scores.
We also chose only top-quality carriers with excellent customer feedback, Better Business Bureau ratings, and AM Best financial strength ratings.
Cheapest Car Insurance by State in 2026
The average cost of car insurance varies widely by location. For example, in Maine, a full coverage car insurance policy from Progressive averages only $1,081 per year. In Louisiana, however, the cheapest full coverage comes from the Louisiana Farm Bureau, at an average of $2,740 per year.
Drivers in cheap states for car insurance can still benefit from having independent insurance agents shop and compare quotes from several local carriers. The table below compares the cheapest carriers by state for 2026.
| State | Cheapest Company | Median Annual Rate |
|---|---|---|
| Alabama | Travelers | $1,199 |
| Alaska | GEICO | $1,455 |
| Arizona | Travelers | $1,658 |
| Arkansas | Travelers | $1,535 |
| California | GEICO | $1,358 |
| Colorado | American National | $1,327 |
| Connecticut | Travelers | $1,309 |
| Delaware | Donegal | $859 |
| Florida | State Farm | $2,101 |
| Georgia | Donegal | $1,267 |
| Hawaii | GEICO | $1,378 |
| Idaho | Travelers | $808 |
| Illinois | Travelers | $1,490 |
| Indiana | American Family | $1,321 |
| Iowa | Travelers | $1,443 |
| Kansas | Travelers | $1,691 |
| Kentucky | Shelter | $2,096 |
| Louisiana | Louisiana Farm Bureau | $2,740 |
| Maine | Progressive | $1,081 |
| Maryland | Donegal | $1,181 |
| Massachusetts | GEICO | $1,209 |
| Michigan | GEICO | $1,321 |
| Minnesota | Travelers | $1,277 |
| Mississippi | Shelter | $1,758 |
| Missouri | Shelter | $1,700 |
| Montana | State Farm | $1,613 |
| Nebraska | American National | $900 |
| Nevada | Progressive | $1,414 |
| New Hampshire | GEICO | $1,389 |
| New Jersey | GEICO | $1,648 |
| New Mexico | Central Insurance | $1,464 |
| New York | Progressive | $956 |
| North Carolina | Progressive | $1,174 |
| North Dakota | Nationwide | $1,576 |
| Ohio | Central Insurance | $1,068 |
| Oklahoma | Progressive | $1,709 |
| Oregon | State Farm | $1,290 |
| Pennsylvania | Encova | $1,506 |
| Rhode Island | Travelers | $1,770 |
| South Carolina | American National | $904 |
| South Dakota | Kemper | $950 |
| Tennessee | Travelers | $1,209 |
| Texas | Texas Farm Bureau | $1,321 |
| Utah | Nationwide | $1,550 |
| Vermont | Union Mutual | $779 |
| Virginia | Virginia Farm Bureau | $940 |
| Washington | Kemper | $1,079 |
| Washington, D.C. | Erie | $1,870 |
| West Virginia | Encova | $1,772 |
| Wisconsin | Travelers | $991 |
| Wyoming | American National | $956 |
Cheapest and most expensive states for car insurance
The table below compares the states with the cheapest and most expensive full coverage car insurance in 2026.
| Cheapest States | Most Expensive States | ||
|---|---|---|---|
| Vermont | $1,660 | Louisiana | $3,999 |
| New Hampshire | $1,689 | Michigan | $3,964 |
| Hawaii | $1,757 | Nevada | $3,963 |
| Ohio | $1,783 | Florida | $3,916 |
| Maine | $1,808 | Washington, D.C. | $3,465 |
Average Cost of Cheap Car Insurance Per Month
Wondering about the average monthly cost of cheap car insurance? Full coverage averages $215 per month nationally, while minimum coverage averages $68. Travelers is one of the cheapest carriers, with full coverage rates averaging just $139 per month.
If you're still asking, "How much does cheap car insurance cost per month?" an independent insurance agent can help you compare rates in your area. You can also compare cheap car insurance quotes online.
2026 Minimum Car Insurance Requirements: What Changed
It's important to be aware of the 2026 changes to car insurance law and how they may impact your coverage. Three states changed their minimum auto insurance requirements in 2026:
- California: New required limits: 30/60/15 - first increase since 1967
- New Jersey: New required limits: 35/70/25
- North Carolina: New required limits: 50/100/50
Drivers in these states should compare new car insurance quotes, even if their previous coverage rates seemed cheap. Your independent insurance agent can help you ensure you're set up with enough coverage to meet state minimum car insurance requirements.
FAQs About Cheap Car Insurance
What is the cheapest car insurance company in 2026?
We found that USAA is the cheapest car insurance company this year, with full coverage rates averaging $1,487 per year, or about $124 per month. Next cheapest were Travelers ($1,664 per year/$139 per month) and Progressive ($1,916 per year/$160 per month).
How much does cheap car insurance cost per month?
The average monthly cost of cheap car insurance from a major carrier ranges from about $139 to $200, while cheap minimum coverage averages about $41 to $75 per month.
Is cheap car insurance worth it?
Yes, for safe, low-mileage drivers with older, paid-off vehicles, cheap car insurance is well worth it. However, if getting cheap coverage means buying a policy from a carrier with poor claims-handling, it's not worth it.
How can I get cheap car insurance with bad credit?
You can shop for carriers that weigh credit less heavily, such as USAA and Auto-Owners, or enroll in telematics programs to save money on car insurance if you have poor credit. Credit is also prohibited as a rating factor in CA, HI, MA, and MI.
What state has the cheapest car insurance?
Vermont has the cheapest full coverage car insurance in the U.S., averaging $1,660 per year. New Hampshire is the second cheapest, at $1,689 per year.
How can young drivers find cheap car insurance?
Cheap car insurance for young drivers is possible when they stay on a parent's policy, take a defensive-driving course, or maintain a good grade average. An independent insurance agent can help you find cheap car insurance for teens.
Can I get cheap car insurance with no down payment?
Sometimes, yes. Some carriers waive or reduce the first-month down payment, but you typically pay the full first month upfront. Independent insurance agents can shop low-down-payment options from several carriers in your area.
An Independent Insurance Agent Can Help You Find Cheap Car Insurance
When you're looking for cheap car insurance, no one's better equipped to help you find it than a local independent insurance agent. Because they're independent, these agents are free to shop and compare policies from multiple car insurance companies that offer coverage in your area.
They'll present you with options for the cheapest car insurance policies that don't sacrifice anything in terms of coverage or quality. They can also help you find the cheapest car insurance after a ticket, cheap car insurance with a DUI, and cheap non-owner car insurance. And down the road, your agent will still be there to help you file car insurance claims or update your coverage as necessary.
Sources
https://www.usnews.com/insurance/auto/cheapest-car-insurance-companies
https://www.nerdwallet.com/insurance/auto/cheapest-car-insurance#in-your-state
https://www.insurance.com/auto-insurance/cheapest-car-insurance-rates-by-state
https://www.moneygeek.com/insurance/auto/state-minimum-car-insurance-requirements/
https://www.bankrate.com/insurance/car/auto-insurance-rates-by-age/#age
https://www.bankrate.com/insurance/car/cheap-car-insurance-companies/#cheapest-by-state