Best Affordable Car Insurance Companies of 2024 (2024)

Personal Finance Insurance Auto Insurance

Written by Lina Roby; reviewed by Evelyn He

  • Compare Cheap Car Insurance
  • FAQs
  • Best Cheap Car Insurance Reviews
  • Why You Should Trust Us

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The minute an accident occurs, it's clear why auto insurance is so important.

Car insurance can be costly, especially if you have tickets, accidents, a teenager, or other risk factors hiking your rates. But it's possible to meet state requirements, protect yourself and your property, and avoid paying more than you must with affordable policies through some of the best car insurance companies.

Best Cheap Car Insurance of 2024

Compare The Best Cheap Car Insurance

Best Overall

State Farm Auto Insurance

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Insider’s Rating

4.37/5

Perks

Offers many discounts, including good student discounts for high school and college students

JD Power Customer Satisfaction Rating

817

AM Best Financial Strength Rating

A++

Pros

  • Nationwide presence
  • High customer satisfaction and claims satisfaction rankings
  • Discounts for bundling insurance products

Cons

  • Quotes are only available through captive agents (who only quote State Farm)
  • Pricing may be higher or products unavailable for high-risk drivers
  • Rates may rise quickly for households with teen drivers

Insider’s Take

State Farm auto insurance offers coverage across all 50 states and Washington, DC. It has comprehensive, collision, and liability coverage along with less common options like rideshare coverage.

State Farm Auto Insurance review External link Arrow An arrow icon, indicating this redirects the user."

Best for Military Members

USAA Auto Insurance

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Insider’s Rating

4.12/5

Perks

Offers numerous discounts and get up to 30% off

JD Power Customer Satisfaction Rating

871

AM Best Financial Strength Rating

A++

Pros

  • Low rates for eligible buyers
  • Coverage is available in all 50 states and Washington, DC
  • Auto policies can be bundled with other insurance plans and financial products

Cons

  • Only available to military, veterans, and their families.
  • Claims may take longer than with some other providers

Insider’s Take

USAA Auto Insurance could be a great option if you're a current or former military member; no one else is eligible. Coverage is available in all 50 states, and premiums are generally affordable.

USAA Auto Insurance review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • USAA auto insurance is open to the military, veterans, and their families
  • Discounts for safe driving and more

Best for Cheap Coverage

GEICO Auto Insurance

Best Affordable Car Insurance Companies of 2024 (3)

Insider’s Rating

4.62/5

Perks

Discounts for airbags, anti-theft system, military, good student, good driver, multi-car discounts, and bundling insurance

JD Power Customer Satisfaction Rating

824

AM Best Financial Strength Rating

A++

Pros

  • National presence with coverage in all 50 states
  • Buyers can bundle with homeowners, renters, and other insurance products
  • Offers some of the most competitive auto insurance rates
  • Claims adjusters may be able to reduce or eliminate deductibles on some claims

Cons

  • Customer satisfaction varies across products
  • Claims process may be longer than some competitors based on customer reviews

Insider’s Take

GEICO offers auto, homeowners, and life insurance. It's been around since 1936 and generally offers some of the lowest rates. However, customer satisfaction may be an issue.

GEICO Auto Insurance review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • Discounts for safe driving, good grades, military, and more
  • Available in all 50 states

Best for Seniors

The Hartford Auto Insurance

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Insider’s Rating

3.62/5

Perks

Offers discounts for vehicle safety, insuring an electric vehicle, and completing a driver's training course

JD Power Customer Satisfaction Rating

860

AM Best Financial Strength Rating

A+

Pros

  • Highly ranked for customer satisfaction
  • Provides discounted rates across all 50 states for senior drivers

Cons

  • Coverage is exclusively available to AARP members
  • Drivers with a mixed driving history may not qualify

Insider’s Take

The Hartford offers auto, homeowners, and renters insurance. It's been around since 1810 and is known for providing excellent customer service and a wide array of benefits for AARP members.

The Hartford review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • Accident forgiveness for first accident
  • New car replacement coverage
  • Only available to AARP members

Best for Heroes

California Casualty Auto Insurance

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Insider’s Rating

2.87/5

Perks

Offers discounted rates for workers deemed heroes

AM Best Financial Strength Rating

B+

Pros

  • Company offers affordable rates for nurses, firefighters, peace officers, teachers, and other heroes
  • Agents offer customers extra coverages tailored to heroes like deductible-free protection for teachers while at school or other work-related tasks
  • Benefits may be available for surviving spouses in certain circ*mstances
  • Partners with MexPro to offer auto insurance in Mexico

Cons

  • Not all medical professionals or heroes qualify for coverage
  • California Casualty is only available in a limited number of states
  • California Casualty is not available to the general public

Insider’s Take

California Casualty offers auto and homeowners insurance to teachers, nurses, firefighters, and other heroes. Its partnership with MexPro also provides auto insurance for heroes traveling to Mexico.

California Casualty auto insurance review External link Arrow An arrow icon, indicating this redirects the user."

Best for High-Risk Drivers

Progressive Auto Insurance

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Insider’s Rating

4.62/5

Perks

Offers personalized rate based on driving

JD Power Customer Satisfaction Rating

842

AM Best Financial Strength Rating

A+

Pros

  • Coverage available in all 50 states
  • Discounts for bundling insurance products with competitive rates
  • Highly rated with JD Power and AM Best

Cons

  • Rates may jump significantly after your first accident or for higher risk drivers
  • Mixed reviews on claims and customer service on sites like Consumer Affairs and TrustPilot

Insider’s Take

A highly ranked and long-standing insurance company, Progressive offers auto, home, motorcycle, and other insurance across the United States.

Progressive Auto Insurance review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • Ranked #17 out of 18 in auto claims satisfaction
  • Bundling, vehicle safety, and student driver discounts
  • Low rates
  • Name your price tool

Cheap Car Insurance Frequently Asked Questions

What if auto insurance companies won't insure me?

Occasionally, car insurance companies will not approve a policy, often due to a poor driving record. With responsible driving, drivers can work back to traditional auto insurance, but the worst thing you could do is let your coverage lapse. While some companies cater to high-risk drivers, states also have high-risk insurance pools. Each state-approved insurer is required to take on a certain number of drivers from this pool each year. The companies also have to offer state-approved rates. To qualify, you would have to be denied coverage by a set number of companies depending on your state.

Who normally has the cheapest auto insurance?

Most auto insurance companies are regional meaning the cheapest option may be a local auto insurance provider (varying in each state). However, among auto insurance providers licensed in all 50 states, GEICO consistently offers the lowest rates for most drivers.

Who has to pay the most for car insurance?

Male drivers generally have to pay more for car insurance. When it comes to other demographics, younger drivers under 25 tend to pay the highest premiums because they're considered a higher risk. Other groups that often pay the most for car insurance are those with multiple accidents or DUIs on their record or those with poor credit.

Who is cheaper, GEICO or Progressive?

GEICO could be the cheaper option overall, but Progressive is generally a cheaper auto insurance option if you have a DUI or multiple traffic infractions.

Our Winners for Best Cheap Car Insurance

  • Best Affordable Car Insurance Companies of 2024 (7)

    State Farm Auto Insurance

  • Best Affordable Car Insurance Companies of 2024 (8)

    USAA Auto Insurance

  • Best Affordable Car Insurance Companies of 2024 (9)

    GEICO Auto Insurance

  • Best Affordable Car Insurance Companies of 2024 (10)

    The Hartford Auto Insurance

  • Best Affordable Car Insurance Companies of 2024 (11)

    California Casualty Auto Insurance

  • Best Affordable Car Insurance Companies of 2024 (12)

    Progressive Auto Insurance

Best For

Best Overall

Best For

Best for Military Members

Best For

Best for Cheap Coverage

Best For

Best for Seniors

Best For

Best for Heroes

Best For

Best for High-Risk Drivers

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Compare policies and rates

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Best Cheap Car Insurance Reviews

State Farm

The 2023 J.D. Power auto insurance satisfaction study breaks rankings down to different sections of the U.S., which vary widely. While the highest-ranked choice in each region varies, State Farm was the most consistent competitor in all areas. This doesn't come as a surprise. State Farm offers a reliable and familiar name to do business with. It has agents on the ground dedicated to quoting and binding policies with custom discounts for each customer.

While State Farm agents provide you with the most competitive quote on company-specific products, agents can only provide you with quotes on State Farm insurance policies. They are considered "captive agents" meaning they cannot assist you in comparing rates elsewhere or if you don't qualify with State Farm. The good news is State Farm covers most drivers and families. This insurer also offers competitive rates for young drivers.

State Farm Auto Insurance Review

USAA

According to its website, USAA Auto Insurance has one stated mission: "to facilitate the financial security of its members, associates and their families", specifically military families. If you are a military member, you can buy a full range of financial products with USAA at discounted rates.

If you are a military spouse or other dependent, your military member needs to have a USAA account first. If the military member passes, children coming into adulthood can be USAA-eligible as long as the military member signed up while living. Keep in mind, not all USAA products are limited to military families. You can check its website to verify which ones.

USAA Car Insurance Review

GEICO

With its infamous GEICO Auto Insurance gecko, most people in the United States have at least heard the name GEICO. GEICO has insurance agents, but agents do not actively seek out customers. Instead, potential customers run quotes through its online system and sign up, manage plans, and more with assistance as needed from customer service agents.

GEICO Car Insurance Review

AARP The Hartford

Known for its senior-friendly financial products and services, AARP also offers auto insurance as The Hartford Auto Insurance. You'll need to be signed up with AARP to get an auto insurance quote. But seniors can save on an auto insurance policy and get discounts on home, renter, recreational, and more.

AARP Car Insurance Review

California Casualty

The celebration of heroes has never been higher, but not all insurance companies are equipped to offer coverage or competitive rates to teachers, firefighters, nurses, and peace officers. Despite the name, California Casualty offers coverage in most states for the listed professionals at discounted rates.

California Casualty is not currently offering coverage in Alaska, Hawai'i, Massachusetts, Michigan, New York, or Wisconsin. In the states it does cover, California Casualty offers discounted rates on homeowners and auto insurance with additional coverages like reduced deductibles for nurses when the damage occurs within 500 feet of their workplace.

California Casualty Car Insurance Review

Progressive

Having a DUI, multiple traffic infractions, or poor credit in some states makes drivers difficult to insure. Some companies may choose not to renew coverage or accept policies. Whatever your circ*mstances, Progressive offers consistently competitive rates for drivers with complicated driving records.

Progressive Auto Insurance Review

Why You Should Trust Us: How We Chose The Best Cheap Car Insurance

There is no one-size-fits-all solution for car insurance. Different companies assess the same risk and assign wildly varying premiums. We use resources, including industry powerhouses like JD Power and customer reviews (both positive and negative).

The popularity of the company and the price are two obvious factors. We also look at the coverage available, the likelihood of getting a policy, ease of maintenance once a policy is bound, and how quickly claims are paid. Many of the big names in auto insurance refuse to renew or accept policies with certain high-risk drivers. By combining all these factors and more, we narrow the list of companies to help readers find the right insurance coverage.

Read our full insurance rating methodology for more details on how we evaluate insurance companies.

Business Insider takes pride in helping readers find personal finance solutions that suit them. Our reviews and rankings in our insurance guides are not for sale.

Lina Roby

Insurance Editor, LIA, MLO

Lina Roby (she/her) was a Personal Finance Insurance editor at Insider. She covered pet, travel, auto, and other common insurance products. She is also a licensed property & casualty insurance agent. Her goal is to help readers make informed decisions for all their insurance needs and plan for the unexpected, especially in a constantly evolving insurance marketplace. As a licensed insurance agent, she worked closely with clients and insurance carriers to quote and bind homeowners, auto, liability, and other insurance plans for personal and business. As a licensed mortgage loan originator, she was also able to more effectively quote and bind homeowners insurance policies meeting mortgage lender requirements. With a love for writing, she has also assisted with marketing for her local insurance marketplace.

Evelyn He

Compliance and Operations Associate

Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.

Top Offers From Our Partners

Best Affordable Car Insurance Companies of 2024 (15)

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There is no minimum direct deposit amount required to qualify for the 4.60% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. To earn the $300 bonus, the customer must complete a direct deposit with a minimum initial deposit of $250 in a new SoFi Checking and Savings account within 45 days of clicking to qualify (offer expires 12/31/24).

Best Affordable Car Insurance Companies of 2024 (16)

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Best Affordable Car Insurance Companies of 2024 (18)

Best Affordable Car Insurance Companies of 2024 (2024)

FAQs

Best Affordable Car Insurance Companies of 2024? ›

USAA, Nationwide, Travelers, Erie, Geico and Progressive are the cheapest car insurance companies nationwide, according to our analysis. Car insurance costs are continuing to climb this year. To help you find the lowest rates for your needs, we assessed rates for various ages and driver profiles.

Who typically has the cheapest car insurance? ›

USAA, Nationwide, Travelers, Erie, Geico and Progressive are the cheapest car insurance companies nationwide, according to our analysis. Car insurance costs are continuing to climb this year. To help you find the lowest rates for your needs, we assessed rates for various ages and driver profiles.

What is the most trusted car insurance company? ›

8 best car insurance companies
  • Best auto insurance company overall: Travelers.
  • Best for your budget: American Family.
  • Best for accident forgiveness: Geico.
  • Best for having few customer complaints: NJM.
  • Best for financial strength: Auto-Owners.
  • Best for discounts: Amica.
  • Best for customer satisfaction: State Farm.
Jul 1, 2024

Why did my car insurance go up in 2024? ›

Car insurance rates increased 24% on average in 2023 and are projected to rise another 7% in 2024. These increases are largely the result of increased costs for insurers: As they pay more to settle claims, they pass on the costs to customers. The good news is that there are some things you can do to save money.

Which insurance company has the fewest complaints? ›

The insurance company with the highest customer satisfaction is Geico, according to WalletHub's analysis of factors such as J.D. Power customer satisfaction ratings and the NAIC complaint index. Geico also is one of the cheapest major insurance companies.

Who is cheaper, Geico or Progressive? ›

Both of these auto insurers are reasonably priced, with premiums that are generally lower than the national average for most types of drivers. However, in a side-by-side comparison, Geico is usually the cheaper of the two, on average.

Which car insurer is best? ›

Car Insurance CompanyMotor OD Claim Settlement Ratio FY23Network Garages
Digit Car Insurance96.00%Repair anywhere
Bajaj Allianz Car Insurance98.50%4,000+
Kotak Mahindra Car Insurance98.00%2,327+
Zuno Car Insurance98.00%1,500+
20 more rows

What is the #1 insurance in America? ›

1. State Farm. State Farm is the largest car insurance provider in the US, accounting for almost 17% of the overall market.

What insurance is better than Geico? ›

Allstate scored slightly higher in the 2023 J.D. Power Auto Claims Satisfaction Study. Allstate earned 882 out of a possible 1,000 points, while Geico earned 871 points. The study polled nearly 10,000 customers on their experiences with estimates, repairs, rentals and settlements.

Will car rates go down in 2024? ›

Lower Auto Loan Rates Could Make 2024 a Good Time To Buy or Refinance. While market predictions are bullish on the funds rate — and by extension, auto loan rates — finally coming back down in 2024, it's still not a guarantee. Powell and others at the Fed remain committed to their target of 2% inflation.

How much will insurance cost in 2024? ›

According to a report from Bankrate, average premiums for full coverage auto insurance hit $2,543 in 2024, a 26% increase from 2023. Unsurprisingly, drivers across the U.S. are looking for ways to save. Nearly half (49%) of auto insurance customers are actively shopping for a new plan, according to J.D. Power.

How to get Geico to lower your rate? ›

The following four tips could help you get cheaper car insurance:
  1. Install Safety and Security Devices.
  2. Dig for Discounts.
  3. Combine and Consolidate Policies.
  4. Opt for a Higher Deductible.

Does credit score affect car insurance? ›

Does credit score affect car insurance rates? Yes. A higher or lower credit score can have a big impact on your insurance rate. Poor credit increases full coverage rates by 86% compared to good credit.

Who is State Farm's biggest competitor? ›

Considering State Farm and Geico are the two biggest auto insurance companies in the U.S., most drivers can find what they need from either company, whether that's minimum or full coverage. However, there are a few key differences between State Farm vs. Geico when it comes to auto insurance options.

Which auto insurance companies deny the most claims? ›

Top 8 Worst Insurance Companies
  1. Allstate. We know you have seen the ads. ...
  2. Unum. Unum is a leading disability insurance provider in the United States has a reputation for denied and delayed insurance claims – even when claims include their own employees. ...
  3. State Farm. ...
  4. AIG. ...
  5. Anthem. ...
  6. Farmers Insurance Group. ...
  7. UnitedHealth. ...
  8. USAA.

Is Allstate cheaper than Geico? ›

Geico tends to have cheaper rates than Allstate, but Allstate offers more extensive coverage options and flexible roadside assistance packages, which come at a higher premium. Both companies offer similar coverage and discounts.

What is the cheapest car insurance group? ›

So it's important to understand insurance groups – after all, there are 50 of them in total. Cars in group 1 are the least risky from an underwriter's perspective and the cheapest to insure. Those in group 50 are the riskiest and most expensive – usually higher performance models and luxury SUVs.

What car insurance is the cheapest for full coverage? ›

The cheapest best full coverage car insurance companies
  • American Family: $1,279 per year.
  • Amica: $2,281 per year.
  • Auto-Owners: $1,420 per year.
  • Geico: $1,306 per year.
  • NJM: $1,490 per year.
  • Shelter: $1,569 per year.
  • State Farm: $2,006 per year.
  • Travelers: $1,405 per year.
Jun 27, 2024

Is $500 a lot for car insurance? ›

Yes, $500 a month for car insurance is very expensive. The average cost of car insurance ranges from about $60 per month for state-minimum coverage to $166 per month for full coverage, though individual car insurance rates vary based on factors such as driving record, age and location.

At what age is car insurance cheapest? ›

Car insurance is the cheapest for drivers between the ages of 35 and 55. Car insurance is very expensive for teens because they have a high risk of accidents, and then it decreases sharply as drivers age into their 20s and develop more reliable driving habits.

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