Auto insurance is often one of the biggest costs of car ownership. On average, coverage costs $2,012 annually — up considerably from $1,459 a year ago. With monthly rates soaring, securing lower premiums is an important way you can manage expenses.
Here’s a look at some of the cheapest car insurance companies you may shop with in 2025, as well as some strategies to keep your premiums low.
Key Points
• The average annual car insurance cost in the U.S. is $2,012.
• USAA, Root, Travelers, and Geico offer some of the cheapest car insurance rates.
• Young drivers generally face higher insurance premiums.
• A good driving record can significantly lower car insurance costs.
• Discounts are available for safety features, bundling policies, and insuring multiple vehicles.
Top Cheap Car Insurance Companies
As we mentioned, the average annual cost of car insurance is about $2,012, according to a 2025 U.S. News & World Report analysis of cheap car insurance companies. The chart below demonstrates which carrier has the cheapest car insurance rates.
It’s worth noting that many companies in the study offer annual rates well below this average. You can always switch car insurance at any time, so consider shopping around for the best rates.
| Company | Average monthly rate | Average annual rate |
|---|---|---|
| American National | $80.83 | $970 |
| USAA | $106.58 | $1,279 |
| Root | $116.16 | $1,394 |
| Travelers | $129.08 | $1,549 |
| Geico | $139.08 | $1,669 |
Source: U.S. News & World Report, June 2025
Recommended: Cheapest Cars to Insure
Cheapest Car Insurance Companies for Young and Teen Drivers
The cost of car insurance varies widely depending on age and gender, among other things. For instance, teens are at significantly higher risk of getting into an accident, so premiums for young drivers can be sky high — especially for male teens. The national average for male teen drivers is $7,321 per year, while the average for female teens is $6,475, according to the 2025 U.S. News & World Report analysis.
A policy with the cheapest insurance providers may save you thousands.
| Company | Average annual rate for female teens (as of June 2025) | Average annual rate for male teens (as of June 2025) |
|---|---|---|
| American National | $2,608 | $2,892 |
| Root | $3,138 | $3,176 |
| Country Financial | $3,361 | $3,615 |
| USAA | $4,304 | $4,628 |
| Geico | $4,474 | $4,939 |
Source: U.S. News & World Report, June 2025
Cheapest Car Insurance Companies for Good Drivers
A driving record free from accidents, traffic violations, and other infractions can help you qualify for lower premiums. The national average for good drivers is $2,012 a year, or $167.66 a month. But the cheapest insurance companies offer policies that may be less. As you’ll see, the rates for good drivers are the same as the overall cheapest rates in the study.
| Company | Average monthly rate | Average annual rate |
|---|---|---|
| American National | $80.83 | $970 |
| USAA | $106.58 | $1,279 |
| Root | $116.16 | $1,394 |
| Travelers | $129.08 | $1,549 |
| Geico | $139.08 | $1,669 |
Source: U.S. News & World Report, June 2025
Cheapest Car Insurance Companies for Seniors
Seniors typically enjoy the lowest average car insurance. The average married 60-year-old woman pays $1,724 per year for coverage, while her male counterpart pays an average of $1,765.
| Company | Average annual rate for female seniors | Average annual rate for male seniors |
|---|---|---|
| American National | $824 | $812 |
| USAA | $1,102 | $1,104 |
| Root | $1,320 | $1,412 |
| Country Financial | $1,470 | $1,488 |
| Geico | $1,543 | $1,605 |
Source: U.S. News & World Report, June 2025
Cheapest Car Insurance Companies for High-Risk Drivers
If you get a speeding ticket or are involved in an accident, you may see your insurance premiums go up, as insurers see you as a higher risk. After one speeding ticket, for instance, the national annual premium is $2,571 on average. After an accident, it’s $2,891. That said, you may be able to secure a better deal with one of the companies below.
| Company | Average annual rate after a speeding ticket | Average annual rate after an accident |
|---|---|---|
| American National | $1,234 | $1,217 |
| USAA | $1,560 | $1,841 |
| Root | $1,583 | $1,793 |
| Travelers | $2,067 | $2,172 |
| Geico | $2,239 | $2,618 |
Source: U.S. News & World Report, June 2025
How to Find the Cheapest Car Insurance for You
Here’s a look at some of the strategies you may consider for how to save on car insurance.
Gather Your Information
Before you apply for auto insurance, gather pertinent information, such as your Social Security number and driver’s license number. You’ll also want a record of your driving history, including any accidents you’ve had, tickets, and driver’s license suspensions.
Pull together information about your car as well, including make, model, year of the vehicle, the mileage, and whether you own, lease, or finance it.
Get Quotes from Multiple Sources
Different insurance companies may offer different prices for the same coverage. And some insurance companies might specialize in different areas, such as roadside assistance. Get car insurance quotes from at least three or four insurance companies, so you can compare prices and coverage options and find the best deal for your needs.
Ensure Apples-to-Apples Coverage Comparison
Variables such as coverage type, limit, and deductible can all have an impact on the price of an insurance policy. So, when comparing online auto insurance policies, make sure these variables are the same across the board so you are getting a true side-by-side comparison.
How to Save on Car Insurance
In addition to comparison shopping, there are several other important ways to save on car insurance.
First and foremost, maintain a good driving record. Insurance companies typically charge lower rates for drivers who have no speeding tickets and haven’t been involved in at-fault accidents.
Ask about possible discounts for having two or more vehicles on a policy, having safety equipment like airbags, paperless billing, or bundling auto insurance with other policies.
Consider raising your deductible, which can lower your monthly premium. However, be aware that doing so may mean you pay more out of pocket if you need to use your insurance.
Finally, regularly review your policy and update as needed. You may need to update your policy if you add or remove a driver, increase or decrease the mileage you drive each year, or add or remove a vehicle from your policy.
Recommended: Compare Coverage Types
The Takeaway
Finding the cheapest insurance for your car doesn’t have to be overwhelming. Compare quotes, understand your coverage needs, and take advantage of discounts to lower your premiums without sacrificing protection. As you review your options, remember that the best deal isn’t necessarily the lowest cost. Rather, it provides a balance between cost and the coverage that’s right for you.
When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.
FAQ
Do cheaper companies offer lower-quality service?
While cheaper companies may offer lower premiums, this does not always mean that they will offer lower-quality services.
Are smaller or regional companies cheaper?
It’s possible that small or regional companies may be cheaper than national companies, but there’s no guarantee. The best thing to do is get quotes from insurers of different sizes to find a policy that meets your needs.
How much do quotes vary between companies for the same driver?
Quotes for the same driver can vary substantially between different insurance companies. That’s why it’s important to seek quotes from multiple companies.
Does bundling home and auto always result in the cheapest overall insurance cost?
Bundling home and auto doesn’t guarantee the cheapest overall insurance cost. However, many insurance companies will offer discounts if you choose to bundle policies.
How easy is it to switch car insurance companies?
Switching car insurance companies is usually relatively easy. It generally involves finding a new company and insurance policy and calling your old company to cancel. If you are financing your car, let your lender know that you have switched insurance companies.
Photo credit: iStock/FG Trade Latin
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