The Cheapest Car Insurance Of May 2024 (2024)

USAA, Nationwide, Travelers, Erie, Geico and Progressive are the cheapest car insurance companies nationwide, according to our analysis.

Car insurance rates are expected to rise even further this spring. We analyzed rates for a variety of driver ages and profiles to see which companies have the lowest prices.

Here is the cheapest car insurance of May 2024, according to our analysis:

Cheapest Car Insurance Rates

How much you pay for car insurance will depend on a number of factors, including your age, claims history and driving record. The company that offers the cheapest car insurance for you can vary depending on the class of driver you fall into.

The Cheapest Car Insurance for Good Drivers: Nationwide

Nationwide is the cheapest company for good drivers that is available to the general public. USAA auto insurance is a bit cheaper but only available to those with a military connection.

We found that the national average for good drivers is $2,026 a year. The cheapest companies come in hundreds of dollars below that.

The Cheapest Car Insurance After a Speeding Ticket: Nationwide

Our analysis found that Nationwide offers the cheapest car insurance after a speeding ticket, followed by Erie, Travelers and Geico. USAA is a top choice for people who qualify.

Our analysis found that having a speeding ticket on your driving record means an average insurance increase of 26%.

The Cheapest Car Insurance After an Accident Causing Injury: Erie

Erie and Travelers have the cheapest rates if you have caused an accident that injured someone else. Erie is a regional insurer that serves 12 states in the East and Midwest. USAA offers excellent rates to military members and veterans.

Nationally, the average increase after an accident is 49% compared to a driver with a clean record.

The Cheapest Car Insurance After a DUI: Progressive

Progressive has the cheapest rates in our analysis for drivers with a DUI, with USAA a good option for military members and veterans who qualify. A DUI conviction leads to an average increase of 71%.

Car insurance companies usually request motor vehicle records before your policy renewal time to check for tickets and convictions such as DUIs.

The Cheapest Car Insurance for People With Bad Credit: Nationwide

Nationwide and Geico have relatively cheap car insurance for drivers with bad credit, among the companies we analyzed. USAA is a good bet for military members and veterans.

Poor credit can cause higher auto insurance rates than having a DUI or at-fault accident on your record. Average auto insurance costs go up 94% for drivers with poor credit compared to those with good credit.

The Cheapest Car Insurance for Seniors: Nationwide

Nationwide has the best rates for senior drivers ages 65 and 80, according to our analysis. The best car insurance for seniors will vary based on where you live and your personal details, such as your driving record.

We found that senior drivers see an average increase of 6% from age 60 to 70. By age 80, your rates may have increased 23% above the rate you were paying at age 70 and 31% more than your car insurance cost at age 60.

The Cheapest Car Insurance for Young Drivers: Erie

Erie, Travelers, Geico and Nationwide are the cheapest car insurance companies for young drivers buying their own policies. USAA is also usually a top choice if you qualify.

It’s typically cheaper for a young new driver to remain on a parent’s policy if they’re still living at home, whether they’re an 18-year-old or 25-year-old.

The Cheapest Car Insurance After Adding a Teen Driver: Nationwide

We found that Nationwide has the lowest rates after a teen driver is added to a parent’s policy. Other cheap companies include Erie, Progressive and Geico. USAA also has low rates for adding a teen if you’re eligible.

It can be hard to find cheap car insurance for teens because young new drivers pose a considerable risk to insurers. We found that adding a teenage driver to a parent’s policy costs $4,362 a year on average.

Adding a teen driver typically doubles the parent’s auto insurance bill. But it’s usually less expensive to add a teenager to a parent’s auto policy than to have the teen driver buy their own.

States With the Cheapest Car Insurance

Vermont is the cheapest state for auto insurance for good drivers. Idaho, Maine, Hawaii and New Hampshire round out the top five. Car insurance rates vary by state due to the different risks and claims made.

Cheapest Car Insurance by Age

Erie has the lowest-cost insurance for drivers age 16, 18 and 20, based on our analysis of auto insurance rates by age. Nationwide is the cheapest option for drivers of many other ages.

The Cheapest Car Insurance Companies of 2024

Company	Company - Logo	Forbes Advisor rating for cheap car insurance	forbes_advisor_rating_image	Average annual cost for a good driver	Average monthly cost for good drivers	Learn More CTA text
USAA*		5.0		$1,364	$114	Get Quotes
Nationwide		4.9		$1,436	$120	Get Quotes
Travelers		4.8		$1,521	$127	Get Quotes
Erie		4.6		$1,642	$137	Get Quotes
Geico		4.2		$1,597	$133	Get Quotes
Progressive		4.0		$1,826	$152	Get Quotes

*USAA auto insurance is available only to the military, veterans and their families.

The Cheapest Car Insurance Companies in More Detail

Our analysis for May 2024 finds that the cheapest auto insurance companies are:

• USAA – $114 a month
• Nationwide – $120 a month
• Travelers – $127 a month
• Erie – $137 a month
• Geico – $133 a month
• Progressive – $152 a month

USAA

Editors’ Take

We recommend military members, veterans and their families take a look at USAA for cheap car insurance for many driver profiles, including good drivers and those with spotty driving records. Its excellent rates earned USAA 5 stars in our analysis.

Expert’s Take

USAA was founded back in 1922 specifically to serve servicemembers. Because of their deep familiarity with military life, they are great at sorting out your insurance if you’re deployed or you move a lot.
Kate Terry, Advisory Board Member

USAA’s Average Car Insurance Costs

Discounts Available

USAA offers a wide variety of discounts.

	Annual Mileage Discount Based on the number of miles you drive per year.
	Bundling Discount Bundling USAA auto and home policies can save you up to 10%.
	Defensive Driver Discount For taking an approved course to improve your driving skills.
	Driver Training Discount For drivers under age 21 who take a basic driving course.
	Family Discount If parents have USAA insurance you can receive a discount when buying your own policy if you’re under age 25.
	Good Student Discount Ask for this discount if your high school or college-age child has good grades.
	Length of Membership Savings Applied if you maintain coverage with USAA for several years.
	Military Installation Discount Up to 15% off comprehensive coverage when you garage your car on base.
	Multi-Vehicle Discount For insuring two or more vehicles on a policy.
	New Vehicle Discount For having a car that is three years old or newer.
	Safe Driver Discount If you have had a good driving record for the past five years.
	Vehicle Storage Discount Up to 60% off when you store your vehicle. This is especially useful for military members on deployment.
Discount availability can vary by state.

Nationwide

Editors’ Take

We like Nationwide because it has some of the cheapest rates for most driver types, from those with a pristine driving record to those with a ticket or accident and for a variety of ages. In some instances, USAA has better rates, but you must have a military connection to be eligible. Nationwide earned 4.9 stars in our analysis.

Expert’s Take

Being “on your side” is not just a slogan with Nationwide as its prices show. Its competitive pricing shows how Nationwide cares and wants to draw in customers.
Marty Ellingsworth, Advisory Board Member

Nationwide’s Average Car Insurance Costs

Discounts Available

Nationwide has a decent variety of possible discounts.

	Accident-Free Discount If your record is free of at-fault accidents.
	Anti-Theft Discount Provided if you have certain anti-theft devices in your car.
	Automatic Payments Discount For paying your bill with automatic deductions from your bank account.
	Defensive Driving Discount Complete a state-approved driver’s safety class to get a discount. In some locations, this is only available to customers 55 or older.
	Good Student Discount Get if you have a young driver who is a full-time student and has a “B” average or better in high school or college.
	Multi-Policy Discount Given if you bundle auto insurance with a Nationwide homeowners insurance policy.
	Paperless Discount Applied when you receive insurance bills and documents electronically.
	Safe Driver Discount If you have five years or more of good driving, meaning no tickets, violations or accidents.
Discount availability can vary by state.

Travelers

Editors’ Take

We like Travelers for its competitive rates for many types of drivers. It’s consistently one of the top three to five cheapest companies. Travelers also has a very low level of complaints made against it to state insurance departments, which helped it earn 4.8 stars.

Expert’s Take

Travelers tends to be a good choice for customers who are looking to bundle their auto insurance with their homeowners for additional discounts. They also have an app-based telematics product called IntelliDrive that they encourage their customers to try in return for an upfront discount. The ongoing IntelliDrive discounts can be quite attractive if you drive smoothly, without a lot of sudden accelerations and braking, and if you don’t drive very late at night.
Kate Terry, Advisory Board Member

Travelers’ Average Car Insurance Costs

Discounts Available

Travelers Insurance offers a wide array of car insurance discounts for its customers.

	Continuous Insurance Discount If customers with no gaps in auto insurance coverage.
	Driver Training Discount If you have a young driver on your policy who takes a qualified training course.
	Early Quote Discount For getting a quote before your current policy with another company expires.
	ETF, Paid In Full and Good Payer Discounts If you set up automatic payments, pay in full or always pay on time.
	Good Student Discount If you have a high school or college student on the policy who maintains a “B” average or better.
	Homeownership Discount If you own a home or condo.
	Hybrid or Electric Vehicle Discount If you own or lease a hybrid or electric car.
	Multi-Car Discount For insuring multiple vehicles on one policy.
	Multi-Policy Discount For bundling your auto insurance with other types of insurance (like homeowners insurance).
	New Car Discount For owning a newer model vehicle that’s three years old or less.
	Safe Driver Discount Given if you’ve had no accidents, violations or major comprehensive claims for the past three years.
	Student Away From Home Discount Ask for this if you have a college student on your policy who goes to school at least 100 miles away and won’t be driving your cars.
Discount availability can vary by state.

Erie

Editors’ Take

Erie offers the best rates (after USAA) for some driver profiles, which helped it earn 4.6 stars in our evaluation. Erie also stands out for its excellent grade (A-) from repair professionals for its collision claims process.

Expert’s Take

Erie is well known for selling affordable policies exclusively through independent agents. They consistently get strong reviews for customer service and claims service from their customers.
Kate Terry, Advisory Board Member

Erie’s Average Car Insurance Costs

Discounts Available

Erie offers a variety of ways to save money on car insurance.

	Annual Payment Discount For paying the premium in full at the beginning of the policy period.
	Car Safety Equipment Discounts Given when your vehicle has safety equipment such as anti-lock brakes, anti-theft devices and factory-installed airbags.
	Multi-Car Discount For insuring two or more cars with Erie.
	Multi-Policy Discount A discount of around 20% if you bundle auto and home insurance with Erie.
	Reduced Usage Discount For going at least 90 consecutive days without using your vehicle.
	Safe Driving Discount Given if your driving record has no car accidents or traffic violations.
	Young Driver Discount A discount is offered if you’re under the age of 21 and unmarried.
Discount availability can vary by state.

Geico

Editors’ Take

Geico earned 4.2 stars in our evaluation thanks to its low costs for many driver types. We also like that Geico has a low level of complaints, making it worth a look if you’re the hunt for low rates.

Expert’s Take

Geico is known for its convenience and speed of service. They sell policies through their call centers as well as online. Claims reporting and customer service questions can often be handled completely via their app.
Kate Terry, Advisory Board Member

Geico’s Average Car Insurance Costs

Discounts Available

Geico offers a wide range of discounts.

	Accident-Free Good Driver Discount Up to 22% off if your driving record is accident-free for the past five years.
	Anti-Theft System Discount Up to 23% off if your vehicle has a built-in anti-theft system.
	Airbag Discount Up to 23% off if your vehicle has airbags.
	Anti-Lock Brakes Discount Get a 5% discount for having anti-lock brakes.
	Automatic Payments (E-Banking) Discount Enroll in automatic payments and paperless billing to get a discount.
	Daytime Running Headlights Discount Receive a 3% discount if your vehicle has daytime running lights as part of its standard equipment.
	Defensive Driving Discount Complete a defensive driving course and save.
	Driver’s Education Discount Save if a young driver on your policy completes a driver’s education course.
	Good Student Discount If you have a driver between ages 16 and 24 who is enrolled in school full-time with a B average or better, you can get 15% off.
	Homeownership Discount You can get a discount if you own your primary residence.
	Membership and Employee Discount If you belong to one of more than 500 alumni associations, fraternities and sororities or professional organizations you may see savings with Geico.
	Military Discount Up to 15% off for retired military, active military members and members of the National Guard.
	Multi-Policy Discount For bundling auto insurance with other types of insurance you buy through Geico, such as homeowners, condo, renters or mobile home insurance.
	Multi-Vehicle Discount Up to 25% off when you insure two or more vehicles with Geico.
	New Vehicle Discount Up to 25% off if your vehicle is three years old or newer.
	Paid in Full Discount For paying the full car insurance premium upfront.
	Student Away At School Discount Save if you have a student away at school more than 100 miles away, without a car, and who doesn’t come home and drive your car more than one weekend per month.
Discount availability can vary by state.

Progressive

Editors’ Take

Progressive earned 4 stars in our analysis because it has the cheapest rates for drivers with a DUI and competitive rates for a broad range of other driver profiles. Progressive also has a low level of complaints against it with state insurance departments.

Expert’s Take

Progressive has the widest appetite of any major carrier and will offer a policy to almost every driver. They sell directly through call centers and their website and they also have the largest independent agent network in the country.
Kate Terry, Advisory Board Member

Progressive’s Average Car Insurance Costs

Discounts Available

Progressive offers its customers a good variety of discounts.

	Automatic Payments Discount Get a discount for using automatic payments from a checking account to pay for your policy.
	Continuous Insurance Discount A discount for having auto insurance with no gaps or cancellations, whether with Progressive or another insurer.
	Distant Student Discount Ask about this discount if you have a driver age 22 or younger who goes to school 100 miles or more away from home and doesn’t have a car with them.
	Good Student Discount Ask for this 10% discount if you have a student to your policy who has a “B” average or better.
	Homeowner Discount Save up to a 10% discount for owning your home.
	Multi-Car Discount Average of 12% off by insuring more than one vehicle with Progressive.
	Multi-Policy Discount An average of 5% discount for having multiple policies through Progressive, such as home and auto insurance.
	Online Quote Discount Average of 7% off if you get a quote online.
	Paperless Discount Given if you choose paperless statements.
	Pay in Full Discount Get a discount if you pay the full insurance bill upfront.
	Sign Online Discount Average of 9% off for signing policy documents online.
	Teen Driver Discount See savings if you have a teen driver on your policy.
Discount availability can vary by state.

Expert Roundup: How to Find Cheap Car Insurance

Here are our top tips for lowering your insurance bill.

The Risks of Buying Cheap Car Insurance

Buying a cheap car insurance policy with bare-bones limits and minimal coverage may sound like a pathway to low costs, but it could end up costing you much more in the long run. Risks of purchasing such a policy include:

• Low liability limits. You must buy at least state minimum limits for liability, but that may not be enough to cover all the damage you cause others in an auto accident. If the accident bills of others exceed your liability limits, you’re left personally responsible, which could lead to a financial crisis.

• Coverage gaps. The cheapest auto policy will only include state minimum coverage, so you won’t have collision or comprehensive coverage that comes with full coverage car insurance. Comprehensive and collision coverage pay out if your car is damaged from an accident or other certain problems, flood waters, hail, striking an animal or vandalism.

Methodology

To identify the cheapest car insurance companies we evaluated each insurer based on its average rates for a variety of drivers, complaints against the company and collision repair grades from auto body professionals.

Auto insurance rates (80% of score): We used data from Quadrant Information Services to find average rates from each company for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit, drivers caught without insurance, adding a teen driver, senior drivers and young drivers.

Unless otherwise noted, rates are based on a 40-year-old female driver insuring a new Toyota RAV4 and coverage of:

• $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
• Uninsured motorist coverage of 100/300.
• Collision and comprehensive insurance with a $500 deductible.

State minimum coverage rates reflect the minimum amount of auto insurance required in each state.

Complaints (10% of score): We used auto insurance complaint data from the National Association of Insurance Commissioners. Each state’s department of insurance is in charge of logging and monitoring complaints against companies operating in their states. Most auto insurance complaints center on claims, including unsatisfactory settlements, delays and denials.

The industry complaint average is 1.00, so companies with a ratio below 1.00 have lower levels of complaints.

Collision repair (10% of score): We incorporated insurance company grades from collision repair professionals. We used data provided by CRASH Network, a weekly newsletter covering the collision repair and auto insurance market segments. CRASH Network’s Insurer Report Card used grades from more than 1,100 collision repair professionals to gauge auto insurers on the quality of their collision claims service.

Auto Insurance Collision Repair Grades

Read more: How Forbes Advisor rates car insurance companies

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