The 6 Best Cheap Car Insurance Agencies

All our picks offered liability, collision, and comprehensive insurance, as well as roadside assistance and MedPay coverage.

• USAA offers the cheapest provider overall but only serves military families

• GEICO offers the most affordable coverage for the general public

• Amica has the highest customer satisfaction

• Erie offers the most extensive slate of add-on coverage but is only available in a few states

Auto insurance is a must-have for every driver. A legal requirement in every state except New Hampshire and Virginia, it can save you from owing massive out-of-pocket costs for liability, repairs, and medical bills after an accident. 

However, choosing an auto insurance provider can be an overwhelming task. While all offer liability, collision, and comprehensive coverage, they differ drastically in terms of premium, deductible, discounts, customer experiences, and additional coverage options. Many providers only operate in certain states or do not provide auto insurance in states where they provide other types of coverage. We compared some of the country’s biggest auto insurance providers, as well as some lesser-known competitors, to see which ones are the best fit for budget-conscious drivers.  

Review Methodology

We evaluated each provider on our list based on the following categories:

Cost: We compared average annual costs for insurance coverage from each provider and considered the discounts and safe driving incentives offered by each.

Coverage options: All of our picks offer liability, collision, and comprehensive coverage, as well as options for uninsured/underinsured motorists, roadside assistance, and medical payment. We looked at other optional coverages that each provider offered.

Customer satisfaction and reputation: In order to gauge how satisfied subscribers were with each provider, we looked at their scores from Trustpilot, the Better Business Bureau, and the NAIC Complaint Index. We also looked at how A.M. Best rated their financial security.

Availability: Some insurance providers only operate in certain states, while others have restrictive prerequisites for membership. Providers that allow any potential customer in any state to purchase coverage scored higher on availability than those with a more limited customer base.

Superlatives: Some insurance providers are especially strong picks for specific types of drivers. We named a few providers that may not be the primary choice for everyone but could fit certain drivers perfectly.

Our Top Picks

• 
  Best price

  Geico

  Get a quote
• 
  Best reputation

  Nationwide

  Get a quote
• 
  Best customer satisfaction

  Amica

  Get a quote

Comparing Car Insurance Agencies

GEICO: Best price

Best price

Geico

---

Key Takeaways

• Better Business Bureau rating: A-
• A.M. Best rating: A++

Get a quote

Pros

• Cheapest widely-available premiums
• Extensive discounts
• Highest financial stability rating

Cons

• Below-average customer satisfaction ratings
• No gap coverage

GEICO’s low cost, flexible coverage, and wide availability make it a strong choice for the average driver looking for affordable insurance. GEICO’s auto insurance plans have an average annual cost of $1,317. The only provider with a cheaper average is USAA. However, since only members of the military and their families can join, GEICO will be the most affordable option for most drivers.

GEICO offers several additional discounts to members of various alumni associations, and professional organizations, as well as active-duty military members and veterans. They also allow subscribers to save 5% in exchange for using their DriveEasy app, which monitors their driving. As an additional incentive for safe driving, GEICO customers can receive free accident forgiveness, normally a premium addition to an insurance plan, after maintaining a clean driving record for five years.

GEICO ranks slightly below average for customer satisfaction. With an NAIC Complaint Index rating of 1.23, they were the subject of more customer complaints than usual. Their J.D. Power Auto Claims Satisfaction Survey score is 871, just under the average of 878. However, the Better Business Bureau gives them an A- rating, and A.M. Best gives them an A++ for financial stability.

Nationwide: Best reputation

Best reputation

Nationwide

---

Key Takeaways

• A.M. Best rating: A+

Get a quote

Pros

• Affordable premiums
• Strong reputation

Cons

• Only available in 46 states
• Cannot receive a quote online

With plans costing an average of $1,321 annually, Nationwide offers some of the most affordable auto insurance of any major provider. In addition to their already cheap rates, customers have access to several discounts. Like some other providers on our list, they offer a discount for drivers who use their SmartRide drive-tracking app. Nationwide will also provide customers with a discount for five years of clean driving. Their SmartMiles program offers infrequent drivers a variable rate based on miles driven. High school and college students who maintain a high grade-point average may be eligible for a good student discount.

Having operated since 1926, Nationwide has built a strong reputation based on consumer trust. They are currently ranked 86th on the Fortune 500, have an A+ financial stability rating from A.M. Best, and boast an NAIC Complaint Index rating of 0.65, well below average.

Unfortunately, Nationwide is not available in every state. The company does not serve Massachusetts, Alaska, Louisiana, or Hawaii.

Amica: Best customer satisfaction

Best customer satisfaction

Amica

---

Key Takeaways

• J.D. Power Auto Claims Satisfaction Survey rating: 909/1,000
• Better Business Bureau rating: A+
• Trustpilot rating: 4.5/5
• A.M. Best rating: A+

Get a quote

Pros

• Excellent reputation and customer satisfaction ratings
• Available in 49 states
• Several available discounts

Cons

• Higher premiums than our other selections
• Fewer local agents than some competitors

The Rhode Island-based Amica is one of the smallest providers on our list, with fewer than one-tenth of the employees of GEICO or State Farm. However, they offer service in 49 states, excluding Hawaii, and outperform some of the bigger names in many important categories.

With an average annual cost of $1,481, Amica is somewhat pricier than our other top choices, though still well below some more expensive providers such as Allstate. However, their sterling reputation and customer satisfaction ratings make up for the small difference in cost. Amica topped the 2023 J.D. Power Auto Claims Satisfaction Survey with a rating of 909/1,000. They also have A+ ratings from the Better Business Bureau and from A.M. Best, who evaluate insurance providers’ financial strength. Trustpilot users give Amica a rating of 4.5/5, the highest of all providers on our list, and the company boasts a below-average 0.82 rating on the NAIC Complaint Index.

Amica offers discounts comparable to those of our other recommended providers. Customers can get reduced rates for loyalty, safe driving, and adding additional safety features to their vehicles. Young drivers can receive additional discounts for high grades, completing a training program, and their parents’ loyalty. They also offer some appealing additions to their coverage options, including full glass coverage that will waive your deductible for windshield replacement and coverage for medical payment in the case of an accident.

Insurance Company and Superlative

USAA: Best for military families

Best for military families

USAA

---

Key Takeaways

• J.D. Power’s Auto Claims Satisfaction Study rating: 900/1000

Get a quote

Pros

• Most inexpensive insurance provider
• Strong reputation

Cons

• Only available to military families

With an average annual cost of $1,172, USAA offers cheaper insurance than any other provider on our list. However, they only provide insurance to military members and families of USAA members. Their low prices, additional discounts, and strong reputation make them a great choice of provider for anyone eligible.

USAA offers several discounts comparable to those of other providers on our list, including good student discounts and a safe driving program, SafePilot. Customers can have their comprehensive coverage premium reduced by 15% in exchange for covering an insured vehicle for a long period of time, which can save active-duty military members money while they are on deployment.

USAA has existed for over 100 years and has built substantial customer trust in that time. J.D. Power’s Auto Claims Satisfaction Study gave them a rating of 900 out of a possible 1,000, well above the average of 878.

Erie: Best for East Coast and Midwest customers

Best for East Coast and Midwest customers

Erie

---

Key Takeaways

• J.D. Power Auto claims Satisfaction Study rating: 902/1,000
• A.M. Best rating: A+
• Better Business Bureau rating: A+

Get a quote

Pros

• Affordable
• High customer satisfaction
• Wide variety of optional coverage

Cons

• Only available in 12 states
• Fewer discounts than competitors

With an average annual cost of $1,331 for auto coverage, Erie is one of the most inexpensive insurance providers around. However, these low costs are not at the expense of customer service. Erie scored a 902/1,000 in the J.D. Power Auto claims Satisfaction Study and boasts A+ ratings from both A.M. Best and the Better Business Bureau. Their NAIC Complaint Index score of 0.57 is also the lowest of any provider on our list.

However, Erie is not available in a majority of U.S. states. They only provide auto insurance to drivers in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, Washington, D.C., West Virginia, and Wisconsin. 

Erie also has fewer discount options than most of our other providers. They offer discounts for young drivers and college students. Customers can reduce their premiums by garaging their vehicles for at least 90 days and adding safety features to their vehicles. Customers will also have their deductibles lowered by $100 (up to $500) for every year that they do not file a claim. However, unlike many of its competitors, Erie does not offer loyalty discounts, military discounts, or driving-monitoring discounts.

On the other hand, Erie offers some of the most extensive coverage of any provider on our list. Comprehensive and collision coverage comes with free windshield repair, and customers can opt for coverage for damage to valuables and injury to pets. They also offer $75 worth of trip interruption coverage per passenger as part of their roadside assistance benefits, which will help cover expenses such as a hotel room in the case of a breakdown far from home.

State Farm: Best for young drivers

Best for young drivers

State Farm

---

Key Takeaways

• A.M. Best rating: A++

Get a quote

Pros

• Discounts for students and young drivers
• High financial stability rating

Cons

• Higher rates than competitors

As the country’s biggest insurance provider, State Farm has built a longstanding and trustworthy reputation over its century-plus of operation. While their rates are slightly higher than those of our other top picks, they offer extensive discount options for students and young drivers.

Like some of our other choices, State Farm offers a discount in exchange for the use of their Drive Safe & Save drive-monitoring app. Additionally, their Steer Clear program gives drivers under 25 a discount if they complete an app-based driver’s ed course. Young drivers can also get discounts for being away at school, only driving the car when visiting home, and for maintaining high grades.

State Farm has a wide variety of coverage options, including gap coverage and coverage for rideshare drivers. They also boast an A++ financial stability rating from A.M. Best.