On average, car owners in the United States spend $1,553 annually, or approximately $129 per month, on car insurance. However, it is possible to pay significantly less by choosing the right policy from specific insurers.
One option for saving on car insurance is to go with a policy that meets the minimum standards required by your state. While this may come with some risks associated with potentially basic coverage, it allows you to meet the requirements at a lower cost. Here’s a look at the top car insurance companies offering the cheapest rates in 2023.
Geico offers low-cost minimum coverage policies with an average annual premium of $1,064 ($88.67 per month). This rate is 27% below the national average for that level of coverage. Geico is a nationwide provider, making these policies available to vehicle owners in almost any state. While Geico provides the lowest rates for drivers with poor credit, rates are higher than average for drivers with a DUI on their record.
State Farm Insurance
For low-coverage policies, State Farm averages $1,191 per year ($99.25 per month), which is below the national average for similar coverage. State Farm is known for at least average customer service and is the highest-ranking in Florida, New York, and the Northwest according to JD Power. Policy renewal rates are also higher than average, indicating competitive pricing and solid customer service. However, State Farm tends to offer higher rates for drivers with poor credit.
Travelers offers competitive rates on minimum-standard auto insurance policies, with annual premiums averaging $1,290 ($107.50 per month). The company performs well in customer service, though not as highly rated as some competitors. Travelers has a strong reputation for claims handling, similar to companies like USAA. Overall, the company does well in customer loyalty, although its ratings may not be as strong as some alternatives.
With lower coverage policies, Nationwide has an average annual price of $1,347 ($112.25 per month), placing it slightly below the national average. Nationwide excels in customer service and claims handling, leading to solid customer loyalty.