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Last updated: May 21, 2026Best Cheap Auto Insurance Companies in May 2026
State Farm, USAA, Progressive, GEICO, and Erie offer cheap rates for a variety of driver profiles.
Best Value
Editor's Rating:
4.9/5
4.9/5Cheapest for Military/Veterans
Editor's Rating:5/5
5/5Cheapest for Higher Risk Drivers
Editor's Rating:4.7/5
4.7/5
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Key Takeaways: Best Cheap Auto Insurance Companies May 2026
According to a recent AutoInsurance.com study, 85 percent of drivers are worried about affording their premiums — more than one-third are “extremely” or “moderately” concerned.
- Drivers looking for the cheapest rates should get a quote from GEICO. Military-affiliated drivers should also consider USAA.
- State Farm offers the best value for auto insurance, with strong customer service and an average full coverage rate of $2,030 per year.
- Progressive has the lowest rates for high-risk drivers, while Erie is an affordable option for teens.
While rate increases eased slightly in 2025, car insurance prices have increased by 55 percent since 2020.1 That’s why we researched hundreds of providers to find auto insurance companies that offer affordable rates without skimping on coverage. We use the latest industry data, independent ratings, and real-life customer experience to assess companies’ rates, claims process, and customer satisfaction.
For this review, we prioritized carriers with low rates that remain relatively stable at each renewal. We also analyzed rates by driver profile, so you can find the lowest premiums regardless of your age, driving record, or location.
Your auto insurance needs are unique to your circumstances. If you have a DUI, multiple accidents, or other violations, check out our guide to auto insurance with a bad record. If you’re looking for auto insurance for seniors or auto insurance for teens, we’ve reviewed those, too.
Summary of the Best Cheap Auto Insurance Companies
- Best Value: State Farm
- Cheapest for Military and Veterans: USAA
- Cheapest for Higher Risk Drivers: Progressive
- Cheapest Widely Available: GEICO
- Cheapest for Teens: Erie
Compare the Best Cheap Auto Insurance
| Company | Full Coverage Monthly Average | Minimum Coverage Monthly Average | J.D. Power Claims Satisfaction2 | CRASH Network Report Card3 |
|---|---|---|---|---|
| State Farm | $169 | $54 | Above average | D+ |
| USAA | $128 | $36 | Above average | C- |
| Progressive | $172 | $59 | Below average | C- |
| GEICO | $156 | $46 | Below average | C- |
| Erie | $153 | $47 | Above average | A- (Honor Roll) |
| National average | $196 | $60 | – | C+ |
Breaking Down the Best Cheap Auto Insurance Companies
1. State Farm - Best Value
4.9
Editor's Rating:
- Average Rate for Minimum Coverage
- $53 mo.
- Average Rate for Full Coverage
- $162 mo.
- Telematics program won’t raise your rates
- Strong customer service ratings
- Affordable rates for most drivers
Must complete quotes by phone- No accident forgiveness
Why we chose it
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 Study4 as well as on J.D. Power’s Auto Claims Satisfaction Study. It provides a good balance of cost and service.
State Farm has a large network of insurance agents across the country, ensuring personalized service for customers. It 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. 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.
Who it’s best for
Drivers prioritizing customer service, those with a speeding ticket, policyholders who prefer working with an agent
State Farm Pricing
| State Farm | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $169 | $54 |
| Annually | $2,030 | $650 |
| Difference from national average | -14% | -10% |
DID YOU KNOW?
In response to rising costs, 1 in 5 drivers have committed or would consider “soft” insurance fraud. Among drivers under 30, that figure climbs to more than 1 in 3.
2. USAA - Cheapest for Military and Veterans
5
Editor's Rating:
- Average Rate for Minimum Coverage
- $29 mo.
- Average Rate for Full Coverage
- $106 mo.
- Cheapest rates for military members
- Strong customer service ratings
- Over 100 years of experience serving military members
- Military eligibility required
- Limited to members
- Fewer branch locations
Why we chose it
USAA has offered financial products to the military community since 1922 — it’s only available to military members, veterans, and their families. Those eligible must become USAA members to access its offerings. USAA 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.
One of the key discounts offered by USAA is a vehicle storage discount of up to 60 percent, 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).
Eligible members can also choose to enroll in SafePilot Miles, which tracks your driving and allows you to save on your premium if you drive less than average. 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.
Who it’s best for
Active military members, veterans, and their families; military members who are deployed and need vehicle storage in the U.S.; those looking to take advantage of USAA perks, like financial advice and retirement planning
USAA Pricing
| USAA | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $128 | $36 |
| Annually | $1,533 | $436 |
| Difference from national average | -35% | -40% |
3. Progressive - Cheapest for Higher Risk Drivers
4.7
Editor's Rating:
- Average Rate for Minimum Coverage
- $56mo.
- Average Rate for Full Coverage
- $136 mo.
- Affordable option for people with a DUI
- Ability to set your budget when receiving a quote
- Offers SR-22 non-owners insurance
- Mixed reviews for customer service
- Gap insurance won’t necessarily cover full amount owed
Why we chose it
In general, you can expect your rates to increase following traffic violations. For example, a DUI increases your premium by 94 percent on average. Compared to major competitors, Progressive has affordable rates for drivers with a DUI. Its rates are 18 percent lower than the national average for this demographic.
A DUI is one of the main 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. Progressive generally accepts drivers who need an SR-22, will file your SR-22 on your behalf, and offers SR-22 non-owner insurance for drivers with a DUI.
If you’re having trouble finding coverage in your price range after a DUI, you can also use Progressive’s Name Your Price tool. After getting a quote, you can input the maximum you’re willing to pay for coverage, and Progressive will generate a few different policies with varying coverages under the maximum amount you’ve laid out.
Who it’s best for
People with one DUI on the record, people who want accident forgiveness, someone who needs an SR-22
Progressive Pricing
| Progressive | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $172 | $59 |
| Annually | $2,060 | $702 |
| Difference from national average | -13% | -3% |
4. GEICO - Cheapest Widely Available
4.2
Editor's Rating:
- Average Rate for Minimum Coverage
- $28 mo.
- Average Rate for Full Coverage
- $87 mo.
- Available in all 50 states
- Long list of discounts
- Easy online quotes and purchasing
- Limited agent presence
- Doesn't underwrite home insurance
Why we chose it
GEICO is known for its affordability and digital-first insurance platform and is available in all 50 states and Washington, D.C. It offers a hassle-free online quote and purchasing process and has some of the cheapest rates nationwide for both full and minimum coverage, with average rates over 20 percent below the national average.
GEICO offers a significant number of discounts to help drivers save further, including discounts for bundling policies, being a good student, and being a safe driver. Active or retired military members are eligible for a 15 percent discount, while federal employees can qualify for a discount of up to 12 percent.
DriveEasy, GEICO’s telematics program, is a great option for drivers who are confident in their safe driving skills. The company no longer advertises the maximum discount, but it previously advertised a discount of between 5 and 15 percent just for signing up and a discount of up to 25 percent at renewal if you drive safely. Be aware that Drive Easy may increase rates if it detects unsafe driving.
Who it’s best for
Those looking for the cheapest coverage, military members who opt out of USAA, those who prefer purchase a policy online
GEICO Pricing
| GEICO | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $156 | $46 |
| Annually | $1,867 | $558 |
| Difference from national average | -21% | -23% |
5. Erie - Cheapest for Teens
5
Editor's Rating:
- Average Rate for Minimum Coverage
- $50 mo.
- Average Rate for Full Coverage
- $127 mo.
- Affordable rates for teens
- Rate Lock option
- Wide range of coverages
- Agent-only
- Fewer online features
Why we chose it
Erie is consistently one of the highest rated insurers for customer service and offers some of the cheapest average rates for most drivers, but it’s only available in 12 states. It ranked first on both J.D. Power’s Claims Satisfaction Study and Insurance Shopping Study.5 Policies are sold exclusively through local agents, who can help answer questions and make sure you get the coverage you need.
Erie is a particularly good choice for families with teen drivers given its relatively affordable average rates, which can be hard to find for this age group. Erie’s rates for teen drivers are over 30 percent below the national average. It also has a teen driver training program called teenSMART that consists of a four-hour online training. Upon completion of the program, teens can earn a discount of up to 20 percent on car insurance.
Another unique benefit of Erie’s is its Rate Lock option, which prevents your rate from increasing year over year unless you make changes to your policy.
Who it’s best for
Drivers who live in one of the 12 states where Erie operates, families with young drivers, those who want to lock in their rate
FYI:
Erie is available in the following places: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, Washington D.C., West Virginia, and Wisconsin.
Erie Pricing
| Erie | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $153 | $47 |
| Annually | $1,833 | $565 |
| Difference from national average | -22% | -22% |
Frequently Asked Questions
The national average for full coverage car insurance is $196 monthly, compared to $60 monthly for minimum coverage — so theoretically, you could save nearly $140 a month by reducing your coverage. However, exactly how much you can save can vary significantly based on where you live.
That said, insurers view drivers who carry only minimum-required coverage as potentially higher-risk, and adjust their rates accordingly. Minimum coverage also provides significantly less financial protection in the event of an accident. So in the long run, switching to minimum coverage could cost you.
If you’re struggling to afford your car insurance and need to reduce your coverage, consider maintaining liability limits higher than the required minimum, even if you drop coverages like collision and comprehensive. Maintaining limits of 100/300/50 or 100/300/100 can protect your assets in the event you cause an accident, while still reducing your monthly premiums.
Vermont ($1,478 annually), Maine ($1,526 annually), and Idaho ($1,549 annually) have the cheapest full coverage auto insurance rates in the U.S., on average. These states benefit from lower population density, fewer uninsured drivers, and less traffic congestion, which help keep insurance costs down.
Progressive, Dairyland, Direct Auto, Erie, and USAA tend to have the cheapest rates for car insurance after a lapse in coverage.
The cheapest vehicles to insure are typically safe, reliable, and inexpensive to repair. Some of the most affordable models for insurance include:
- Subaru Outback – Known for strong safety ratings and low repair costs.
- Honda CR-V – A compact SUV with a good safety record and affordable parts.
- Toyota RAV4 – Reliable, fuel-efficient, and commonly insured at lower rates.
- Honda Accord & Honda Civic – Popular sedans with reasonable repair costs and strong safety features.
- Mazda CX-5 – A small SUV with good crash test ratings and low claim rates.
Additionally, according to IIHS data, the Volvo XC90 plug-in hybrid 4dr 4WD, Audi Q5 plug-in hybrid 4dr 4WD, and Volvo XC60 4dr may be cheaper to insure based on low bodily injury liability claims. This means they are less likely to be involved in accidents that cause injuries to others.
The discounts that can save you the most on your car insurance include:
- Safe driver discounts: for maintaining a clean driving record
- Bundling discounts: when you buy home or renters insurance from the same provider as your auto insurance
- Low-mileage or usage-based programs: if you drive less than average or sign up for a telematics program that tracks safe driving habits
To find out if you’re eligible, contact your insurer or review your policy’s discount section. Many companies also offer online tools or mobile apps that let you check available programs and estimate savings.
Methodology
At AutoInsurance.com, we evaluate auto insurance providers based on four key factors:
- Price (40 percent): We analyze average premiums for full and minimum coverage for good drivers with good credit, as well as various driver profiles, including those with DUIs, military drivers, or low credit. We also consider available discounts. Full coverage averages use the following limits:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured and underinsured motorist bodily injury: $100,000 per person/$300,000 per accident
- Comprehensive and collision: $500 deductible
- Claims Handling (25 percent): Policyholders rely on insurers to efficiently handle claims, which includes clear communication, fair evaluation of damages, and timely payment or resolution. We assess claims practices through sources like the CRASH Network Insurer Report Card and J.D. Power’s Claims Satisfaction Report, and financial strength from sources like AM Best and S&P Ratings. Real-life customer experiences are included when available.
- Customer Experience (25 percent): We evaluate how easy it is to get a quote and purchase a policy. We also consider the availability and quality of both online and agent interactions, as well as the functionality of the company’s website and mobile app. Our sources include J.D. Power studies, the NAIC complaint index, BBB ratings, and app store reviews.
- Coverage Options (10 percent): We review each company’s coverage offerings and value providers with options beyond the state required minimums, like accident forgiveness, gap coverage, and more.
Read more about our ratings and methodology.
Sources
Why car insurance costs have soared (and what drivers are doing about it). NPR. (2025, Oct 30).
https://www.npr.org/2025/10/30/nx-s1-5542448/car-insurance-rising-premiumsSatisfaction with Auto Insurance Claims Strained by Higher Deductibles, More Total Losses, JD Power Finds. JD Power. (2025, Oct 28).
https://www.jdpower.com/business/press-releases/2025-us-auto-claims-satisfaction-studyTop Rated U.S. Car Insurance Companies for 2026. Crash Network. (2026).
https://www.crashnetwork.com/irc/It’s Now a Buyer’s Market for Auto Insurance, JD Power Finds. JD Power. (2025, Jun 10).
https://www.jdpower.com/business/press-releases/2025-us-auto-insurance-studyDespite Slowing Rate of Increase in Auto Insurance Pricing, Most Customers Still Shopping, JD Power Finds. JD Power. (2025, Apr 29).
https://www.jdpower.com/business/press-releases/2025-us-insurance-shopping-study
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