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Are you overpaying for auto insurance? Here are the companies with the lowest average policy premium amounts.
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What auto insurance companies have the cheapest rates? While it’s impossible to say where you will find the cheapest auto insurance rates, there is publicly available information that shows where the lowest average monthly premiums are.
With that in mind, here are 10 of the largest U.S. auto insurance companies, ranked in order from cheapest average premium to most expensive. Then, we’ll discuss some of the factors that determine how much you’ll pay for insurance, and why the cheapest insurer for you might not be the cheapest on the list.
Which auto insurance companies are the cheapest now?
According to an analysis by Policygenius, here are the average monthly costs of full-coverage auto insurance by 10 of the largest insurance companies, ranked from cheapest to most expensive:
Of course, there are more than 10 auto insurance companies that offer coverage in the United States, so this isn’t meant to be an exhaustive list. It can be a smart idea to shop around with some of the smaller companies that write policies in your state, just in case they offer a better deal for you than bigger companies.
This doesn’t mean you will find these companies the cheapest
To be sure, there is a lot of information that is used to determine what your auto insurance premium will be. Just to name a few factors, your insurance company is likely to take into consideration:
The state you live inYour ageYour marital statusThe particular year, make, and model of your vehicleWhether you buy any other insurance through the same company (bundling discounts)If you’ve taken a defensive driving courseHow long it’s been since your last ticket or accidentYour previous history of insurance claimsYour credit historyHow many miles you drive per year
This isn’t an exhaustive list, but one major takeaway is that every auto insurance company has its own underwriting methodology and may assign different weights to the factors that create your customer profile.
As a personal example, my wife and I recently decided to try and shop around for insurance and found that Geico (our current insurer) was by far the cheapest for us, even though there are others with lower average premiums. One possible explanation is our long-standing relationship with the company. We’ve been insured by Geico for 14 years and we’ve never had an accident. The point is that the insurance company where you find the cheapest coverage could be different than the cheapest listed in the table above.
The bottom line is that the only reliable way to find the cheapest auto insurance for you is to shop around. Most of the auto insurers on our radar allow you to get a quote quickly and easily, and you might be surprised at how much you might be able to save.
Our best car insurance companies for 2024
Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool recommends Progressive. The Motley Fool has a disclosure policy.
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