8 Car Insurance Companies With the Lowest Monthly Premiums
Each year, U.S. News and World Report comes out with a list of the car insurance companies with the lowest premiums. According to the report, the average annual cost of car insurance is about $2,068 or $172 per month. Depending on the type of vehicle you have, location, and other factors, the price can go up or down. That said, there are some insurance companies that reliably provide customers with lower premiums. Here they are…
1. USAA: Best for Military Families
USAA is a top choice for military members, veterans, and their families, offering some of the lowest premiums in the industry. Average annual rates sit around $1,335, making it a budget-friendly option for qualifying members. USAA’s discounts include savings for safe driving, bundling policies, and storing vehicles on base. The company is also known for its exceptional customer service and high satisfaction ratings. Beyond affordability, USAA offers comprehensive coverage options, from liability to rental reimbursement. If you qualify, USAA is one of the best options for cost-effective insurance.
2. Erie Insurance: Affordable and Comprehensive
Erie Insurance provides budget-friendly coverage without skimping on features or services. With an average annual premium of $1,532, Erie offers excellent value, especially for safe drivers. The company provides unique perks, such as rate-lock guarantees and diminishing deductibles. Discounts are available for bundling policies, paying annually, and maintaining a clean driving record. Erie’s strong reputation for customer service and claims handling further sets it apart. If you’re looking for affordable rates with added benefits, Erie is a fantastic choice.
3. Auto-Owners Insurance: A Reliable Choice for Savings
Auto-Owners Insurance combines low premiums with a wide range of coverage options. Annual rates typically start at $1,619, with plenty of discounts available for bundling, safe driving, and even going paperless. The company also offers add-ons like roadside assistance and accident forgiveness, making it a great value for the price. Auto-Owners is known for its personalized service, often provided through a network of local agents. Its claims process is efficient, ensuring you get back on the road quickly after an incident. If you value affordability and customization, Auto-Owners is worth considering.
4. Nationwide: Affordable with Rewards for Safe Driving
Nationwide is a well-known provider offering competitive rates and innovative programs. Annual premiums average around $1,621, with the potential for significant savings through the SmartRide program, which rewards safe driving. The company also offers a variety of discounts for bundling policies, installing anti-theft devices, and being a long-term customer. Nationwide’s customizable coverage options let you choose exactly what you need without overpaying. Their mobile app and online tools make managing your policy simple and convenient. If you’re looking for affordability and tech-forward solutions, Nationwide delivers.
5. Geico: Nationwide Affordability
Geico is a household name in car insurance, known for its low rates and extensive discount opportunities. Annual premiums for many drivers start at just $1,778, making it a popular choice for budget-conscious individuals. The company offers discounts for good drivers, students, military members, and those bundling multiple policies. Geico’s app and website are among the best in the industry, simplifying policy management and claims filing. With a strong reputation for customer service, Geico consistently ranks high in satisfaction surveys. For affordable and reliable coverage, Geico is hard to beat.
6. Progressive: Best for Customizable Coverage
Progressive stands out for its affordable rates and flexible coverage options. Annual premiums often start at $1,848, with discounts available through the Snapshot program, which tracks and rewards safe driving habits. Progressive’s Name Your Price tool allows you to build a policy around your budget, ensuring you don’t pay for extras you don’t need. The company also offers unique features like accident forgiveness and gap insurance. Progressive’s easy-to-use app and online tools make managing your policy hassle-free. If customization and affordability are priorities, Progressive is a top pick.
7. State Farm: Best for Young Drivers
State Farm offers competitive rates, especially for younger drivers and families. Premiums for the year average around $2,150, with discounts for safe driving, bundling, and good grades for students. State Farm’s Drive Safe & Save program can lower your rates further based on driving behavior. The company’s extensive network of local agents ensures personalized service and support. In addition to affordability, State Farm has a strong reputation for customer satisfaction and a straightforward claims process. If you’re a young driver or looking for tailored service, State Farm is a great choice.
8. American Family: Affordable and Flexible
American Family Insurance is known for its low premiums and family-oriented discounts. Yearly rates average $2,170, with additional savings for bundling policies, safe driving, and insuring multiple vehicles. The company offers a variety of coverage options, from basic liability to comprehensive packages with add-ons like accident forgiveness. American Family’s app and website are user-friendly, making it easy to manage policies and file claims. The company also provides access to local agents, ensuring personalized advice and support. For families seeking affordable and flexible insurance, American Family is an excellent option.
Comparing premiums is the best way to save money on your car insurance. So, if you are wondering how you might be able to trim your budget a bit, these car insurance companies are a great place to start.
Do you do business with any of these companies? What has your experience been?
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Drew Blankenship is a former Porsche technician who writes and develops content full-time. He lives in North Carolina, where he enjoys spending time with his wife and two children. While Drew no longer gets his hands dirty modifying Porsches, he still loves motorsport and avidly watches Formula 1.