Who is known for cheapest car insurance?
State Farm is the cheapest large auto insurance company in the nation for good drivers, according to NerdWallet's 2024 analysis of minimum coverage rates. State Farm's average annual rate was $471 or about $39 per month.
Both Geico and Progressive offer cheap car insurance to drivers across the country. Geico's rates are typically lower overall, but Progressive tends to offer better prices to high-risk drivers. High-risk drivers are those with a recent DUI, at-fault accident or speeding ticket on their driving record.
Group 1 is the lowest insurance group, which also means it's the cheapest insurance group. Group 50 is the most expensive. However, premiums aren't just based on insurance group.
Progressive is so cheap because it offers a wide variety of discounts and gives consumers tools to acheive the best rates possible, such as Progressive's price comparison tool and their Name Your Price program.
|Best car insurance category
|Best insurance company overall
|Best insurance company for affordability
|Best insurance company for accident forgiveness
|Best insurance company for having few customer complaints
If you've ever applied for a credit card, leased a car or gotten a mortgage for a home, you know that credit scores count. You may be surprised to find out they can also affect your car insurance premiums much the same way your driving record, marital status and payment history can.
Key Points: Geico's full coverage costs an average of $1,572 per year, which is around 38 percent cheaper than Allstate's full coverage rate of $2,520 per year. Allstate offers more flexible roadside assistance packages than Geico, but both companies charge a fee for the service, either monthly, annually, or per-use.
No, Liberty Mutual car insurance is not cheaper than Geico. A policy from Liberty Mutual costs 30% more than one from Geico, on average.
The insurer has some of the most affordable rates — our research found that Geico's average rates tend to be 26% cheaper than the national average of $2,508 for good drivers. This is in addition to the savings that drivers can get by participating in the company's discount offerings.
Are older cars cheaper to insure?
Are older cars cheaper to insure? Yes, most older cars are cheaper to insure, especially in terms of comprehensive and collision insurance. Cars lose value as they age, so the potential insurance payouts after an accident drop as well.
Geico and USAA are among the insurance companies that are cheaper than Progressive. Progressive car insurance has an average annual premium of $1,033 per year for minimum coverage, compared to $796 per year for Geico and $807 per year for USAA.
GEICO scored higher than Progressive in most areas, including The Zebra's own editorial review and our annual Customer Satisfaction Survey, which you can see in more detail below.
Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims. As a result, car insurance companies often charge higher premiums to young drivers.
State Farm is the largest auto insurance company in the U.S., with 17% of the market. Other big car insurance companies include Progressive, Geico and Allstate.
|Car Insurance Provider
|National Market Share
|Overall Rating Out of 10.0*
|1. State Farm
State Farm main competitors are USAA, MetLife, and American Family Insurance. Competitor Summary. See how State Farm compares to its main competitors: MetLife has the most employees (49,000).
Every major car insurance company checks your credit before offering a binding quote. That includes Geico, State Farm, USAA, Progressive, Allstate and Liberty Mutual.
In most states, drivers with credit in good standing generally pay much less for car insurance than drivers with a poor credit history. According to 2023 rate data from Quadrant Information Services, drivers with excellent credit pay an average of $1,764 per year for full coverage car insurance.
Among major carriers, GEICO is cheapest for drivers with poor credit, coming in at $157 per month. Nationwide comes in at second place with a rate of $167 per month for drivers with poor credit. Only slightly higher than Nationwide, USAA comes in third place for drivers with poor credit with rates of $168 per month.
Who is cheaper Allstate or Progressive?
Overall, Progressive has cheaper average car insurance rates than Allstate. The average national cost for full-coverage auto insurance at Progressive is $1,611 per year, while Allstate is $2,088 per year. However, with its long list of discounts, Allstate can be a cheaper option for some drivers.
Your State Farm rate could have gone up for many reasons, such as a recent claim or a new driver being added to the policy. Other factors that could cause State Farm to raise your rate include getting into an accident, being convicted of a moving violation, and adding coverage to your policy.
In our 2023 review, we give State Farm a 9.3 out of 10.0 for cost, while Allstate receives only a 7.4. As you can see in the chart below, State Farm's average annual rate falls well below the national average, while Allstate's is significantly higher.
Geico Insurance operates in a "gray zone" between full-service auto insurance providers like State Farm and cut-rate providers like The General. The company touts its reputation for providing low-cost auto insurance policies that offer solid coverages.
Liberty Mutual is so cheap because the company offers a wide variety of discounts and is the sixth largest insurer by market share, which helps Liberty Mutual keep prices competitive.