Best Cheap Auto Insurance Companies in 2025

While State Farm isn’t the cheapest insurer on our list, its rates are middle-of-the-road compared to other major U.S. insurers, and it earns consistently high ratings on industry customer service surveys. For example, it ranked above average in every region in J.D. Power’s 2025 Auto Insurance Study.² It has a large network of insurance agents across the country, ensuring personalized service for customers.

Strong Customer Service Record

State Farm scored above average in almost every region in J.D. Power’s 2025 Auto Insurance Study. Here’s how the company stacks up against the average score by region:

State Farm Telematics Programs

State Farm offers two telematics discount programs, Drive Safe & Save and Steer Clear, to help policyholders save money on premiums. With Drive Safe & Save, you can get a discount of 5 to 10 percent just for signing up, and up to 30 percent off at your next renewal. The exact discount will depend on your state and driving habits. The program is not available in California, Massachusetts or Rhode Island. Unlike some other telematics programs, Drive Safe & Save will not increase your rates for unsafe driving.

State Farm also offers a telematics discount of up to 20 percent specifically for young drivers through the Steer Clear program. Steer Clear is a six-month safety driver program that tracks your driver habits and gives you a score based on how well or poorly you’re driving. It comes with five training modules consisting of videos, quizzes, daily tips, and driving scenario exercises. You need to meet the following requirements to qualify for the program:

• Be under the age of 25
• Have a valid driver’s license
• Have no at-fault accidents or moving violations in the past three years
• Successfully complete all the program requirements

USAA has offered financial products to the military community since 1922. It has the cheapest average rates out of the top 10 largest insurance providers and also offers various discounts, bundling options, and resources for military members.

The caveat with USAA is that it’s only available only to military members, veterans, and their families (spouses and children). Those eligible must become a USAA member in order to take advantage of its offerings, which include affordable rates, specialized coverage and discounts, financial advice, and more.

Specialized Military Discounts

One of the key discounts offered by USAA is a vehicle storage discount, which is particularly useful to active military members who are deployed abroad or stationed away from home and don’t have access to their vehicle(s).

With USAA, you can earn a discount of up to 60 percent on your car insurance policy if you’re out of state on military duty and keep your car securely stored. You may also be eligible for a 15 percent discount on comprehensive coverage if you garage your vehicle on a military installation.

Save With Usage-Based Insurance

USAA offers pay-as-you-drive discounts through SafePilot Miles, which tracks your driving and allows you to save on your premium if you drive less than average. It also takes your driving behavior into account, so driving safely will also help you save money. These usage-based policies are currently available in all states except California, Delaware, and New Jersey

If you don’t necessarily drive less than average but are confident in your safe driving and are looking to save more, USAA also has its SafePilot telematics program, which will track your driving habits and reward good driving with a discount.

USAA Military Perks

USAA is a particularly good choice for military members not only because of its affordable rates but also thanks to its additional perks that members have access to. Here are some of the added benefits offered by USAA:

• 24/7 membership support for insurance, deployment questions, and transition to life abroad or back to the U.S.
• Expert advice for managing debt, loans, saving, investing, and other financial needs
• Discounts for shopping, hotels, travel insurance, and more

It’s probably no surprise that your car insurance premium will increase after a DUI, even if it’s your first one. A DUI is one of the most serious traffic violations you can be convicted of, and a DUI increases your premium by 94 percent on average. If you have a conviction and are looking for an affordable insurance option, we recommend you take a look at Progressive. Compared to major competitors, Progressive has affordable rates for drivers with a DUI.

Cheapest Rate After a DUI

Progressive has the cheapest rates for drivers after a DUI on average compared to its competitors. Here’s a comparison of Progressive’s average rate for drivers with one DUI compared to other major providers.

Progressive Will File Your SR-22

A DUI is one of the leading reasons why you might need to file an SR-22, and not all providers are willing to insure or file an SR-22 on your behalf. That isn’t the case with Progressive. Progressive accepts drivers who need an SR-22s, will file your SR-22 on your behalf, and offers SR-22 non-owner insurance for drivers with a DUI.

Name Your Price Tool

If you’re having trouble finding coverage in your price range after a DUI, you can use Progressive’s Name Your Price tool. Here’s how it works:

1. Provide Progressive with some basic background info about your driving metrics and insurance needs, including that you’ve had a DUI.
2. Use the Name Your Price tool to tell Progressive the maximum you’re willing to pay for coverage.
3. Progressive will generate a few different policies with varying coverages under the maximum amount you’ve laid out.

Connect is our top provider for drivers with safe driving habits and a good driving record, who plan to purchase full coverage. It has the cheapest insurance on our list ($1,660 annually for full coverage), offering basic digital tools and a plethora of discounts. Connect is able to offer great rates because it only offers standard coverages. Additionally, Costco members enjoy extra discounts and benefits when they sign up for a Connect policy.

Cheap Insurance for Safe Drivers

Here’s how much Connect’s full coverage may cost safe drivers compared to competitors:

Families Save With Connect Discounts

In addition to low rates for clean records, Connect offers car insurance discounts to help families save — especially if they have young drivers. According to our research, the average annual cost to add a teen to an existing policy is $3,149.

Families can make car insurance more affordable with these discounts from Connect:

• Garaging: If you park your car in a garage overnight, you may be able to get a discount.
• Good student: Full-time students who achieve good grades may be eligible for a discount on their car insurance.
• Safe driver: If all insured drivers on your policy have no traffic violations, accidents, or claims in the past four years, your household can get an auto insurance discount.
• Student away from home: Students attending school more than 100 miles from where a vehicle is garaged may qualify for a discount.
• Multi-car: Save when you insure more than one car with Connect.
• Loyalty: Stay a Connect customer for a certain amount of time and enjoy a discount on your policy.

Extra Benefits for Costco Members

If you’re a safe driver with a Costco membership, you can unlock additional savings on your Connect auto insurance premium. Beyond the member discount, Costco Executive Members receive exclusive benefits.

• Lifetime renewal: As long as you remain a Costco member, your Connect policy is guaranteed for renewal, even after filing claims.
• Free roadside assistance: If your car breaks down, roadside assistance helps get you back on the road. Their services include towing, battery replacement, gas delivery, and lockout assistance.

Costco members can maximize savings by bundling auto and home insurance policies. Bundling not only reduces your premium but also unlocks extra home protection and discount opportunities. You could save for being a new homeowner, making safety upgrades, or replacing your roof. As a Costco member, your Connect home insurance policy includes:

• Glass repair reimbursement: Connect will cover up to $1,000 toward repairs if one of the windows on your home is broken.
• Home lockout assistance: If you’re locked out of your home, home lockout service covers up to $100 per incident.
• Identity fraud expense protection: If your identity is stolen, your policy may cover up to $15,000 in identity theft costs.
• Equipment breakdown: Covers the cost of repairs and replacement for home appliances and equipment.

Auto-Owners has the cheapest average rates for minimum coverage insurance for non-military drivers at $520 per year on average, making it a great choice for those looking to get the absolute best deal. Minimum coverage always costs less than more robust coverage since you’re opting for a lower level of financial protection, but Auto-Owners stands out with particularly low rates. It also offers a variety of discounts to help drivers save even more.

Affordable Minimum Coverage Rates

Here’s how Auto-Owners’ minimum coverage rates compare to those of other providers:

Many Discount Opportunities

Auto-Owners has an impressive list of discounts to help drivers save more on their policy. Here are some of the discounts you may be eligible for:

• Advance quote: Save more if you’re a new customer who gets a quote before the policy start date.
• Bundling: Save on your insurance by bundling two or more policies with Auto-Owners.
• Clean driving record: If you’ve been accident-free for at least one year you can get a discount.
• Multi-vehicle: You may get a discount if you have two or more cars listed on your policy.
• Teen driver monitoring: If you have a teen driver, they can earn a discount if they have a telematics device installed in the car or use a telematics app to track their driving behavior.
• Good student: Full-time students with a minimum 3.0 GPA or at least a “B” average could get a discount.
• Payment history: Get a discount for paying your premiums on time for the past 36 months.
• Vehicle equipment: Save if your vehicle has features like airbags, seat belts, anti-lock brakes, anti-theft systems, and daytime running lights.

Accident Forgiveness

Accident forgiveness is a useful add-on to your auto insurance policy if you are prone to accidents, have a teen driver on your policy, or simply want added peace of mind. If you have accident forgiveness, Auto-Owners won’t raise your rates following the first at-fault accident of any driver on your policy. It will also allow you to keep your good driver discount.

Auto-Owners policyholders are eligible for accident forgiveness if they have no major violations or qualifying claims within the past three years.