What is the cheapest insurance company in the United States?
With average rates of $1,433 per year for full coverage, Nationwide is the cheapest car insurance company for getting full coverage for most drivers. Along with Nationwide, the top five cheapest car insurance companies include Geico, State Farm, Travelers and Progressive.
With average rates of $1,433 per year for full coverage, Nationwide is the cheapest car insurance company for getting full coverage for most drivers. Along with Nationwide, the top five cheapest car insurance companies include Geico, State Farm, Travelers and Progressive.
Key Takeaways: The cheapest overall company for full-coverage car insurance policies is Nationwide at $1,428 annually or $119 per month. USAA and Geico are also affordable options for full-coverage car insurance. Regional providers like Erie Insurance can have cheap rates, however they aren't available everywhere.
Both Geico and Progressive offer cheap car insurance to drivers across the country. Geico's rates are typically lower overall, but Progressive tends to offer better prices to high-risk drivers. High-risk drivers are those with a recent DUI, at-fault accident or speeding ticket on their driving record.
Geico and USAA are among the insurance companies that are cheaper than Allstate.
State Farm is the cheapest car insurance company overall according to NerdWallet's analysis, with an average rate of $39 a month for minimum coverage.
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.
| Company | Average cost per year for good drivers | Average cost per month for good drivers |
|---|---|---|
| USAA* | $1,364 | $114 |
| Nationwide | $1,436 | $120 |
| Travelers | $1,521 | $127 |
| Geico | $1,597 | $133 |
Is USAA Only for Military? Yes, USAA is only available to active and retired military members and their families. This includes active-duty, former military, cadets, widows, current or un-remarried spouses, and children.
Group insurance is usually the least expensive form of private insurance. It is offered through an employer or an organization, which allows for a larger risk pool and lower premiums. Individuals can benefit from lower costs because the risk is spread across a group of people.
Is Allstate or Progressive more expensive?
Overall, Progressive has cheaper average car insurance rates than Allstate. The average national cost for full-coverage auto insurance at Progressive is $1,611 per year, while Allstate is $2,088 per year. However, with its long list of discounts, Allstate can be a cheaper option for some drivers.
The insurer has some of the most affordable rates — our research found that Geico's average rates tend to be 26% cheaper than the national average of $2,508 for good drivers. This is in addition to the savings that drivers can get by participating in the company's discount offerings.
Geico is so cheap because it sells directly to the consumer. Geico also offers many discounts that help customers save even more on top of its already-low premiums.
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.
State Farm is so expensive because car insurance is expensive in general, due to rising costs for insurers. But at $718 per year, the average State Farm car insurance policy is actually cheaper than coverage from most competitors. In fact, State Farm is one of the cheapest car insurance companies nationally.
Geico, we found that Geico offers cheaper auto insurance on average. We gave Geico 9.1 out of 10.0 points in the cost category in our industry-wide insurance review, while Allstate earned 7.4 points. But Geico doesn't just offer lower rates than Allstate.
| Insurance company | Best for | Bankrate Score |
|---|---|---|
| Amica | Best overall | 4.6 Rating: 4.6 stars out of 5 |
| Geico | Best overall | 4.4 Rating: 4.4 stars out of 5 |
| Progressive | Best for digital policy management | 4.4 Rating: 4.4 stars out of 5 |
| Safeco | Best for added perks | 4.3 Rating: 4.3 stars out of 5 |
State Farm is the biggest auto insurance company in the country by market share, while Progressive, Geico and Allstate are the next three.
The reason for this is the US is deemed a higher risk destination because healthcare is much more expensive than the rest of the world. The USA is the most expensive country to have a medical emergency in.
Our research found that Geico, Auto-Owners, State Farm, USAA and Erie may be the cheapest car insurance companies for seniors based on average rates from Quadrant Information Services. Rates provided are for a 70-year-old driver with a clean driving record.
Which insurance is better than Allstate?
State Farm outperformed Allstate in our ratings, offering more affordable premiums and higher customer satisfaction. Allstate's average rates for drivers with poor credit were cheaper than State Farm's.
In our 2023 review, we give State Farm a 9.3 out of 10.0 for cost, while Allstate receives only a 7.4. As you can see in the chart below, State Farm's average annual rate falls well below the national average, while Allstate's is significantly higher.
According to our data, Geico offers the best cheap car insurance for new drivers, with USAA, Erie, and Nationwide also making the list. The best cheap car insurance companies offer young and new drivers affordable premiums, numerous coverage options, responsive customer service, and an easy claims process.
The Guinness record holder: The most valuable life insurance policy ever sold, according to Guinness World Records, is valued at a total of $201 million, on the life of a well-known U.S. billionaire who resides in the Silicon Valley area of California and is actively known in the technology space.
AAA insurance premiums tend to be more expensive than the national average because AAA doesn't write its own policies. Each regional club operates independently and sells insurance policies underwritten by different agencies.
