Finding affordable car insurance is crucial for every driver. With increasing car prices and maintenance costs, having a budget-friendly insurance policy can save you a lot of money.

In this guide, we will explore the top 10 cheapest car insurance companies in the USA in 2025, along with their rates and quotes.

We will also discuss factors affecting car insurance rates, ways to get lower premiums, and FAQs to help you make an informed decision.

1. Geico – Best Overall Cheapest Car Insurance

Geico – Best Overall Cheapest Car Insurance

Minimum Coverage Rate: $34/month
Full Coverage Rate: $100/month
Customer Satisfaction Rating: 4.7/5

Why Geico?

Geico is one of the most affordable car insurance providers in the USA. It offers low rates, multiple discounts, and an easy online process for getting a quote and managing policies.

Who Should Choose Geico?

Budget-conscious drivers looking for the cheapest rates
Good drivers who want additional discounts
Tech-savvy users who prefer an online insurance experience

Key Features of Geico Car Insurance

Affordable Premiums

Geico offers some of the lowest insurance rates in the USA. Whether you choose minimum coverage or full coverage, Geico remains one of the cheapest options.

Example Quote (2025):

Minimum Coverage – $34/month
Full Coverage – $100/month

Wide Range of Discounts

Geico provides multiple discount options, making it easier for drivers to save money.

Geico Discount List:

Good Driver Discount – Up to 22% off for accident-free drivers
Multi-Policy Discount – Up to 25% off for bundling home & auto insurance
Military & Government Employee Discount – Special savings for military personnel
Good Student Discount – Up to 15% off for students with good grades
Anti-Theft Device Discount – Save money if your car has security features

24/7 Customer Service

Geico provides 24/7 customer support via phone, website, and its mobile app. Their claims process is fast and hassle-free, making it a great option for people who want quick assistance.

Easy Online Process

Geico’s website and mobile app allow you to:

Get instant quotes online
Manage your policy and payments easily
File claims quickly with real-time tracking

Pros & Cons of Geico Car Insurance

Pros:

Cheapest rates for most drivers
Multiple discount options
Excellent mobile app & online tools
Good customer service

Cons:

Limited availability of local agents
Fewer personalized coverage options compared to competitors

Who Should Choose Geico?

If you want the cheapest car insurance in the USA
If you prefer an online and hassle-free experience
If you qualify for multiple discounts (good driver, military, multi-policy, etc.)

2. State Farm – Best for Military Benefits

Minimum Coverage Rate: $39/month
Full Coverage Rate: $110/month
Customer Satisfaction Rating: 4.6/5

Why State Farm?

State Farm is one of the largest and most trusted car insurance companies in the USA. It offers affordable rates, excellent customer service, and great discounts, especially for military personnel and veterans.

Who Should Choose State Farm?

Military members & veterans looking for exclusive benefits
Drivers who prefer local agents for in-person support
Families & multi-car owners who need bundling discounts

Key Features of State Farm Car Insurance

Affordable Rates & Discounts

State Farm offers competitive pricing with great discounts for safe drivers, students, and military families.

Example Quote (2025):

Minimum Coverage – $39/month
Full Coverage – $110/month

Popular Discounts:

Military & Veteran Discount – Special savings for active and retired military personnel
Safe Driver Discount – Up to 30% off for accident-free drivers
Multi-Car Discount – Save money when insuring multiple vehicles
Good Student Discount – Up to 25% off for students with good grades
Drive Safe & Save Program – Personalized discounts based on driving habits

Best for Military Personnel & Veterans

State Farm supports military families with flexible policies and discounts. Their good driver rewards and multi-policy discounts make it a cost-effective option for service members.

Large Network of Local Agents

Unlike Geico, which focuses on online services, State Farm has over 19,000 local agents across the USA. This means you can talk to a real person for help with claims, policy changes, or insurance advice.

Excellent Customer Service

State Farm is known for its fast claims process and reliable customer support. You can reach them via:

24/7 Phone Support
Local State Farm Agents
Mobile App & Online Portal

Pros & Cons of State Farm Car Insurance

Pros:

Great discounts for military members and veterans
Large network of local agents for in-person help
Drive Safe & Save program for lower rates
Fast and reliable claims process

Cons:

Higher premiums compared to Geico for some drivers
Fewer online tools for policy management

Who Should Choose State Farm?

If you are in the military or a veteran and want extra benefits
If you prefer local agents for face-to-face support
If you have multiple vehicles and want bundling discounts

3. Travelers – Best for Student Savings

Travelers – Best for Student Savings

Minimum Coverage Rate: $42/month
Full Coverage Rate: $115/month
Customer Satisfaction Rating: 4.5/5

Why Travelers?

Travelers is a great choice for students and young drivers looking for affordable car insurance. It offers significant student discounts, making it easier for college students and teens to get lower rates.

Who Should Choose Travelers?

High school & college students who need cheap car insurance
Parents who want to add their teen to an existing policy
Safe drivers looking for additional savings

Key Features of Travelers Car Insurance

1. Best Discounts for Students & Young Drivers

Travelers is known for its student-friendly discounts, helping young drivers save money on their policies.

Example Quote (2025):
- Minimum Coverage – $42/month
- Full Coverage – $115/month

Student Discounts:

Good Student Discount – Up to 20% off for students with a B average or higher
Student Away at School Discount – Save money if your child is in college and doesn’t use the car often
Safe Driver Discount – Up to 30% off for accident-free drivers
Multi-Car Discount – Get lower rates for multiple cars under one policy

2. Affordable Coverage for Young Drivers

Young and inexperienced drivers usually pay higher rates for car insurance. Travelers helps by offering:

Usage-Based Insurance (IntelliDrive) – Get discounts based on your driving habits
Distant Student Discounts – Lower rates if you attend college far from home
Parental Policy Add-On – Easily add a teen driver to an existing family policy

3. Easy Online Management & Claims Process

Travelers provides a user-friendly mobile app and website, making it easy for students to:

Get instant quotes online
Manage their policy on the go
File claims quickly without visiting an office

4. Reliable Customer Support

Travelers offers 24/7 customer service, so students and parents can get help anytime. You can reach them via:

Phone Support
Online Portal
Mobile App

Pros & Cons of Travelers Car Insurance

Pros:
✔ Best discounts for students & young drivers
✔ Affordable rates for safe drivers
✔ Flexible policies for parents with teen drivers
✔ Great online & mobile experience

Cons:
✖ Not as cheap as Geico for all drivers
✖ No special military benefits like State Farm

Who Should Choose Travelers?

If you’re a student or a parent looking for low rates
If you have a good academic record & qualify for discounts
If you want an easy online insurance experience

4. Progressive – Best for Loyalty Rewards

Progressive – Best for Loyalty Rewards

Minimum Coverage Rate: $45/month
Full Coverage Rate: $120/month
Customer Satisfaction Rating: 4.4/5

Why Progressive?

Progressive is one of the most well-known car insurance companies in the USA. It offers affordable rates, excellent customer service, and a unique loyalty rewards program that provides discounts the longer you stay insured with them.

Who Should Choose Progressive?

Drivers looking for long-term savings with loyalty discounts
Safe drivers who want additional rewards through the Snapshot program
People who prefer customizable policies and easy online quotes

Key Features of Progressive Car Insurance

1. Best Loyalty Rewards Program

Progressive rewards its long-term customers with exclusive discounts and benefits. The longer you stay with them, the more you save.

Example Quote (2025):
- Minimum Coverage – $45/month
- Full Coverage – $120/month

Loyalty Discounts:

Continuous Insurance Discount – Get lower rates for staying insured without gaps
Multi-Policy Discount – Save by bundling auto and home insurance
Accident Forgiveness – Available for long-term customers, preventing rate increases after a first accident

2. Customizable Insurance Plans

Progressive allows drivers to adjust coverage options to fit their budget and needs. Their online system makes it easy to compare different plans.

Key coverage options include:

Liability & Collision Coverage
Uninsured/Underinsured Motorist Protection
Roadside Assistance & Rental Car Coverage

3. Snapshot Program for Safe Drivers

Progressive’s Snapshot program helps drivers save money based on their driving habits. It tracks:

Driving speed
Braking patterns
Time of day you drive

Safe drivers can save up to 30% on their premium through Snapshot.

4. Easy Online Management & Claims Process

Progressive provides a highly rated mobile app and website where users can:

Get instant quotes
File and track claims
Manage payments and policy updates

Their 24/7 customer support ensures help is available at any time.

Pros & Cons of Progressive Car Insurance

Pros:
✔ Best loyalty rewards for long-term customers
✔ Customizable coverage options
✔ Safe drivers can earn big discounts with Snapshot
✔ Easy-to-use online tools and mobile app

Cons:
✖ Higher rates for high-risk drivers
✖ Not as cheap as Geico for minimum coverage

Who Should Choose Progressive?

If you want long-term savings through loyalty rewards
If you’re a safe driver who wants extra discounts
If you prefer customizable policies and digital tools

5. American Family – Best for Customer Service

American Family – Best for Customer Service

Minimum Coverage Rate: $53/month
Full Coverage Rate: $138/month
Customer Satisfaction Rating: 4.7/5

Why American Family?

American Family is known for its exceptional customer service and high claims satisfaction. If you want an insurer that provides personalized support, responsive claims handling, and a strong local agent network, this is a great choice.

Who Should Choose American Family?

Drivers who prioritize great customer support
People who want quick and hassle-free claims processing
Those who prefer working with a local agent instead of a call center

Key Features of American Family Car Insurance

1. High-Rated Customer Service

American Family consistently receives top ratings for customer satisfaction.

Fast claims processing with responsive agents
Dedicated support team to assist with policy questions
24/7 emergency claims assistance
Example Quote (2025):
- Minimum Coverage – $53/month
- Full Coverage – $138/month

Their personalized approach to insurance ensures that customers receive tailored coverage and direct support.

2. Unique Policy Features & Add-Ons

American Family offers customizable coverage options, including:

Accident Forgiveness – Your premium won’t increase after the first accident.
Diminishing Deductible – Deductible reduces for every year of safe driving.
Gap Insurance – Covers the difference if your car is totaled and you owe more than its value.
Rental Car Reimbursement – Covers the cost of a rental car if your vehicle is in the shop.

These features make it a great choice for drivers who want additional protection.

3. Strong Discount Programs

American Family offers competitive rates with multiple discount options.

Available Discounts:

Loyalty Discount – Savings for long-term policyholders.
Safe Driver Discount – Rewards for accident-free drivers.
Multi-Policy Discount – Save when bundling home and auto insurance.
Student & Young Driver Discounts – Special savings for good students and young drivers.

These discounts help keep premium costs affordable.

4. Digital Tools & Mobile App

American Family provides a user-friendly digital experience while maintaining strong local agent support.

AmFam App for policy management, claims, and roadside assistance
Quick online quotes & policy adjustments
24/7 emergency customer service

This combination of digital convenience and personal support sets it apart from many other insurers.

Pros & Cons of American Family Car Insurance

Pros:
✔ Top-rated customer service and claims satisfaction
✔ Wide range of discounts to lower costs
✔ Accident forgiveness & diminishing deductible available
✔ Strong local agent support

Cons:
✖ Not available in all states
✖ Rates may be higher for high-risk drivers

Who Should Choose American Family?

If you value excellent customer service and personalized support
If you want strong coverage options with flexible add-ons
If you prefer working with a dedicated local agent

6. Nationwide – Best for Vanishing Deductible

Nationwide – Best for Vanishing Deductible

Minimum Coverage Rate: $47/month
Full Coverage Rate: $125/month
Customer Satisfaction Rating: 4.3/5

Why Nationwide?

Nationwide is a strong choice for drivers who want to reduce their deductible over time. Their Vanishing Deductible program helps safe drivers save money by lowering their deductible for every year they remain accident-free.

Who Should Choose Nationwide?

Drivers who want lower deductibles over time
Safe drivers looking for rewards for accident-free driving
People who want customizable insurance plans with strong coverage options

Key Features of Nationwide Car Insurance

1. Vanishing Deductible Program

Nationwide’s Vanishing Deductible program rewards safe drivers by reducing their deductible by $100 for every year without an accident, up to a maximum of $500.

Example Quote (2025):
- Minimum Coverage – $47/month
- Full Coverage – $125/month

How It Works:

Stay accident-free for one year → Get $100 off your deductible
Stay accident-free for five years → Deductible reduces by $500
If an accident happens, you only pay the remaining deductible amount

This program is great for drivers who want to save money on out-of-pocket expenses in case of a claim.

2. Affordable and Flexible Coverage Options

Nationwide offers a variety of coverage plans that fit different needs and budgets. Popular options include:

Collision & Comprehensive Coverage
Uninsured/Underinsured Motorist Protection
Roadside Assistance
Gap Insurance for New Cars

Drivers can also customize their policy based on their needs.

3. SmartRide Program for Safe Drivers

Nationwide rewards safe driving habits through its SmartRide program, which tracks:

Braking patterns
Acceleration
Mileage
Nighttime driving

Safe drivers can save up to 40% on their premium.

4. Strong Customer Support & Digital Tools

Nationwide offers a user-friendly mobile app and online portal for easy policy management. Drivers can:

Get instant quotes
File and track claims 24/7
Manage policy changes without visiting an office

Pros & Cons of Nationwide Car Insurance

Pros:
✔ Best program for reducing deductibles over time
✔ Safe drivers can save more with SmartRide
✔ Strong online tools for policy management
✔ Flexible coverage options

Cons:
✖ Higher starting rates compared to Geico and Progressive
✖ Discounts may not apply to high-risk drivers

Who Should Choose Nationwide?

If you want lower deductibles over time through safe driving
If you’re looking for customizable coverage options
If you want strong digital tools for easy insurance management

7. USAA – Best for Military Families

USAA – Best for Military Families

Minimum Coverage Rate: $39/month
Full Coverage Rate: $110/month
Customer Satisfaction Rating: 4.8/5

Why USAA?

USAA is the best car insurance company for military members, veterans, and their families. It offers the lowest rates, top-tier customer service, and military-specific benefits. However, USAA is only available to military personnel, veterans, and their families.

Who Should Choose USAA?

Active-duty military members
Veterans and their families
Military personnel who frequently relocate or deploy

Key Features of USAA Car Insurance

1. Lowest Rates for Military Families

USAA consistently offers the cheapest car insurance rates for eligible military families.

Example Quote (2025):
- Minimum Coverage – $39/month
- Full Coverage – $110/month

USAA’s rates are 15-20% lower than many competitors, making it one of the most affordable choices for eligible drivers.

2. Military-Specific Discounts & Benefits

USAA understands the unique needs of military families and provides:

Deployment Discount – Lower rates if your car is in storage during deployment
Family Discount – Save when adding family members to an existing policy
Annual Safe Driving Discounts – Rewarded for accident-free years
Bundling Discounts – Combine auto and home insurance for more savings

3. Excellent Customer Service & Claims Handling

USAA has one of the highest customer satisfaction ratings due to:

24/7 claims assistance
Fast and hassle-free claims process
Dedicated support for military families

Their customer service is known for being helpful, responsive, and efficient.

4. Strong Online & Mobile Tools

USAA provides a highly rated mobile app and website where users can:

Get instant online quotes
Manage policies and payments
File and track claims easily

Military members who move frequently can update their insurance seamlessly using USAA’s digital tools.

Pros & Cons of USAA Car Insurance

Pros:
✔ Lowest rates for military members and families
✔ Special discounts for deployment and military service
✔ Highly rated customer service and claims handling
✔ Strong mobile and online experience

Cons:
✖ Only available for military personnel, veterans, and their families
✖ No local agents, mostly online service

Who Should Choose USAA?

If you are active military, a veteran, or a military family member
If you want the lowest rates and military-specific discounts
If you prefer strong customer service and digital tools

8. Erie – Best for Drivers with Accidents

Erie – Best for Drivers with Accidents

Minimum Coverage Rate: $50/month
Full Coverage Rate: $130/month
Customer Satisfaction Rating: 4.5/5

Why Erie?

Erie is the best choice for drivers with accidents because of its affordable rates and accident forgiveness program. Unlike many insurers, Erie does not drastically increase premiums after a first accident, making it an excellent option for drivers who have had past claims.

Who Should Choose Erie?

Drivers with a history of accidents
Those looking for affordable post-accident rates
People who want comprehensive coverage options

Key Features of Erie Car Insurance

1. Accident Forgiveness Program

Erie’s accident forgiveness ensures that your premium won’t increase after your first at-fault accident if you have been accident-free for at least three years.

Example Quote (2025):
- Minimum Coverage – $50/month
- Full Coverage – $130/month

This feature is great for drivers who want protection from sudden rate hikes.

2. Rate Lock Program

Erie offers a unique Rate Lock feature, allowing you to lock in your premium so it does not increase unless you:

Change your address
Add or remove a vehicle
Add or remove a driver

This helps maintain consistent and predictable insurance costs.

3. Comprehensive & Customizable Coverage

Erie provides multiple coverage options, including:

Collision & Comprehensive Coverage
Uninsured/Underinsured Motorist Protection
Rental Car Coverage
Roadside Assistance

Drivers can customize their plans based on their specific needs.

4. Strong Customer Service & Claims Process

Erie is highly rated for customer satisfaction because of its:

Quick and fair claims process
Personalized support through local agents
Flexible payment options

Unlike many large insurers, Erie provides a more personalized experience through local agents.

Pros & Cons of Erie Car Insurance

Pros:
✔ Best rates for drivers with accidents
✔ Accident forgiveness prevents premium hikes
✔ Rate Lock program keeps premiums stable
✔ Strong local agent support

Cons:
✖ Only available in select states
✖ Higher rates for new drivers

Who Should Choose Erie?

If you have a history of accidents and want affordable rates
If you want rate protection and accident forgiveness
If you prefer local agents over online-only service

9. Auto-Owners – Best for High Claims Satisfaction

Auto-Owners – Best for High Claims Satisfaction

Minimum Coverage Rate: $52/month
Full Coverage Rate: $135/month
Customer Satisfaction Rating: 4.6/5

Why Auto-Owners?

Auto-Owners is known for its high claims satisfaction and personalized customer service. Unlike many national insurers, it operates through local independent agents who offer dedicated support during the claims process. If you value a smooth, hassle-free claims experience, Auto-Owners is one of the best choices.

Who Should Choose Auto-Owners?

Drivers who want excellent claims support
People who prefer working with local agents
Those looking for comprehensive and customizable coverage

Key Features of Auto-Owners Car Insurance

1. High-Rated Claims Process

Auto-Owners consistently ranks above the national average in claims satisfaction.

Fast and hassle-free claims handling
Dedicated support from local agents
High claims payout reliability
Example Quote (2025):
- Minimum Coverage – $52/month
- Full Coverage – $135/month

This makes it a great option for drivers who want reliable service when they need it most.

2. Personal Service from Local Agents

Unlike online-based insurance companies, Auto-Owners provides one-on-one support through a network of independent agents.

Agents help find the best coverage for your needs
No automated call centers – real people assist with claims
More customized insurance options compared to large companies

If you prefer a personalized touch, Auto-Owners stands out.

3. Unique Discounts & Coverage Add-Ons

Auto-Owners offers a range of specialized discounts and coverages, including:

Diminishing Deductible – Deductible decreases over time for safe drivers
Accident Forgiveness – Prevents premium increases after the first accident
Rental Car & Roadside Assistance – Included in most policies
New Car Replacement – Covers the cost of a brand-new car if yours is totaled

These features make it a great value for responsible drivers.

4. Strong Financial Stability & Reputation

Auto-Owners is one of the most financially stable insurance companies in the U.S., meaning it has a strong ability to pay claims quickly.

Over 100 years in business
A highly rated claims satisfaction record
Excellent customer service reputation

Pros & Cons of Auto-Owners Car Insurance

Pros:
✔ Excellent claims satisfaction and customer service
✔ Personalized support through local agents
✔ Strong financial stability for claims reliability
✔ Unique discounts and policy add-ons

Cons:
✖ Not available in all states
✖ Requires working with an agent, no direct online sign-ups

Who Should Choose Auto-Owners?

If you value a stress-free claims process with high payout reliability
If you prefer local agents over online customer service
If you want unique discounts and policy perks

10. Liberty Mutual – Best for Extra Coverage

Liberty Mutual – Best for Extra Coverage

Minimum Coverage Rate: $55/month
Full Coverage Rate: $140/month
Customer Satisfaction Rating: 4.4/5

Why Liberty Mutual?

Liberty Mutual is the best choice for drivers who want extensive coverage options. It offers customizable policies with add-ons that many competitors don’t provide. If you need protection beyond standard coverage, Liberty Mutual has more flexible policy options than most insurers.

Who Should Choose Liberty Mutual?

Drivers who want customized coverage
Those who need additional protection like new car replacement
People who prefer a large, established insurer with many discounts

Key Features of Liberty Mutual Car Insurance

1. Extensive Coverage Options

Liberty Mutual offers more policy add-ons than most competitors, including:

New Car Replacement – If your car is totaled in the first year, Liberty Mutual replaces it with a brand-new model.
Better Car Replacement – If your car is totaled, you receive a model that is one year newer with 15,000 fewer miles.
Accident Forgiveness – Prevents your premium from increasing after your first accident.
Gap Insurance – Covers the difference if your car is totaled and you owe more than its actual value.
Roadside Assistance – Includes towing, flat tire help, and emergency fuel delivery.

These options make it a great choice for drivers who want extra security.

2. Affordable Rates with Discounts

Liberty Mutual’s rates are competitive, especially for those who qualify for discounts.

Example Quote (2025):
- Minimum Coverage – $55/month
- Full Coverage – $140/month

Available Discounts:

Safe Driver Discount – Up to 30% off for accident-free drivers.
RightTrack Program – Earn savings by using Liberty Mutual’s safe driving app.
Bundling Discount – Save when combining auto and home insurance.
Military & Student Discounts – Special savings for military members and students.

3. Easy Online Tools & Mobile App

Liberty Mutual offers a user-friendly mobile app for managing policies, filing claims, and accessing roadside assistance.

File and track claims online
Get instant policy quotes
24/7 customer support

If you prefer handling insurance through digital tools, Liberty Mutual makes it simple.

4. Large & Trusted Insurance Provider

Liberty Mutual has been in business for over 100 years and is one of the largest insurers in the U.S.

Strong financial stability for claim payouts.
Wide network of agents and support centers across the country.
Highly rated for customer satisfaction in coverage flexibility.

Pros & Cons of Liberty Mutual Car Insurance

Pros:
✔ Wide range of extra coverage options
✔ New Car & Better Car Replacement programs
✔ Accident forgiveness to prevent premium hikes
✔ Good discounts for safe drivers, military, and students

Cons:
✖ Higher base rates than some competitors
✖ Customer service reviews vary by location

Who Should Choose Liberty Mutual?

If you want additional coverage beyond standard policies
If you need protection for a new or expensive car
If you prefer a large, well-established insurance company

Factors Affecting Car Insurance Rates

Several factors affect how much you pay for car insurance:

✅ Driving Record – A clean record results in lower rates.
✅ Age & Experience – Young and new drivers pay higher premiums.
✅ Location – Urban areas with high traffic have higher rates.
✅ Credit Score – A good credit score can lower your premium.
✅ Coverage Level – Higher coverage means higher premiums.

How to Get Cheaper Car Insurance in 2025?

If you want to save money on car insurance, follow these tips:

✔️ Compare Multiple Quotes – Get at least 3-5 quotes before choosing.
✔️ Look for Discounts – Ask about good driver, student, and bundling discounts.
✔️ Improve Your Credit Score – A better credit score means lower insurance rates.
✔️ Choose a Higher Deductible – A higher deductible lowers your premium.
✔️ Avoid Unnecessary Coverages – Pick only the coverage you need.

FAQs About the Cheapest Car Insurance Companies in the USA

1. Which company has the cheapest car insurance in 2025?

👉 Geico offers the lowest rates, starting at $34/month for minimum coverage.

2. How can I get the lowest car insurance rates?

👉 Maintain a clean driving record, improve your credit score, and compare quotes.

3. Does credit score affect car insurance rates?

👉 Yes, in most states, a higher credit score can lower your insurance premium.

4. Can I negotiate car insurance rates?

👉 You cannot negotiate directly, but you can ask for discounts to lower your premium.

5. What is the best car insurance for military members?

👉 USAA offers the cheapest rates and best coverage for military families.

Conclusion

If you are looking for the top 10 cheapest car insurance companies in the USA in 2025, consider options like Geico, State Farm, Progressive, and USAA.

To get the best deal, always compare multiple quotes, ask for discounts, and maintain a clean driving record.

By following these tips, you can save money on car insurance while ensuring you have the right coverage for your needs.