On average, vehicle owners in the United States pay $1,553 annually – or about $129 per month – for car insurance. However, that doesn’t mean it isn’t possible to pay far less. By choosing the right policy from specific insurers, it’s possible to get a premium far below the average.
When it comes to saving on car insurance, going with a policy that meets the minimum standards for your state is an option. While that comes with risks associated with potentially barebones coverage, it does allow you to meet the requirements for as little as possible. If you need a low-cost policy, here’s a look at the top cheapest car insurance companies of 2023.
Geico Insurance
When it comes to low-cost minimum coverage policies that are available to the general public, Geico has a low average rate. The average annual premium is $1,064 ($88.67 per month), which is below the national average of $1,436 for that level of coverage by a margin of 27%. Geico is a nationwide provider, so these policies are an option for vehicle owners in essentially any state.
Geico also offers the lowest rates for drivers who have poor credit. However, the rates are higher than average for drivers with a DUI on their record, so it may not be the best choice in that scenario.
State Farm
For low coverage policies, State Farm averages at $1,191 per year ($99.25 per month). That’s also well below the national average for similar coverage but a tad higher than what you find with Geico.
Plus, State Farm is at least average when it comes to customer service and, according to JD Power, is the highest-ranking for customer service in Florida, New York, and the Northwest. Policy renewal rates are also higher than average, which is typically a mark of competitive pricing and solid customer service.
However, State Farm typically offers higher rates for drivers with poor credit than some other companies offer. As a result, vehicle owners with credit challenges may want to look elsewhere.
Travelers Insurance
Travelers also offers competitive rates on minimum-standard auto insurance policies, with annual premiums averaging $1,290 ($107.50 per month). The company also does well when it comes to customer service, though it doesn’t rate as highly as some competitors.
The company’s reputation for claims handling does rate highly, reaching levels typically found with companies like USAA. Overall, the company generally does well when it comes to customer loyalty, though its ratings aren’t as strong as some alternatives.
Nationwide Insurance
With lower coverage policies, Nationwide has an average annual price of $1,347 ($112.25 per month). That puts the insurer a bit below the national average. Plus, the company shines when it comes to customer service and claims handling, leading to solid customer loyalty.
For drivers with a DUI, policies through Nationwide usually cost more than coverage through some other insurers. Additionally, while the minimum-coverage policies are competitively priced, they don’t offer the lowest rates overall. Still, it’s worth considering if you’re comparing quotes.
