The Best Cheap Auto Insurance

Metromile is, on average, the cheapest auto insurance provider in the country. Its annual costs are $662, or $55 a month. Part of the reason Metromile can offer such low rates is because its pricing model is based on how much you drive, also known as per-mile insurance. The less you drive, the lower your rates will be.

However, Metromile is currently available in only eight states:

• Arizona
• California
• Illinois
• New Jersey
• Oregon
• Pennsylvania
• Virginia
• Washington

Pay Per Mile

Metromile only sells pay-per-mile car insurance. If you’re a low-mileage driver, Metromile could be a great option for you.

Metromile takes into account factors like credit score, driving history, and age to calculate your per-mile cost. Still, you might find better rates with Metromile if you’re a teen driver or have a bad driving record. Metromile claims you could save as much as $1,000 a year on car insurance if you drive less than 50 miles per week.¹

Tracking and App-Friendly Features

Metromile bills you by tracking how many miles you drive through its Metromile Pulse device. When we tested the device, it only took us a few minutes to plug it in and activate it. As soon as we saw the red light on the Pulse device, we were ready to take it for a short drive to calibrate the GPS system.

From here, Metromile could track where we drove, how far we drove, how fast we drove, and other key driving behaviors that it used to come up with a quote later on. We communicated with the company through its intuitive mobile app. If you are tech savvy and appreciate managing your account from the comfort of your phone, Metromile could be the choice for you.

Pet Insurance

Drivers with pets might be glad to learn that nearly every Metromile insurance plan comes with pet injury protection. Unless you’re a driver in Virginia or Illinois, you will receive up to $1,000 in injury fees if your dog or cat is injured in an accident.

Root is a solid option for drivers with safe track records. Although Root is the second-cheapest insurance on our list at $829 annually, signing up comes with a few caveats. Root is able to offer great rates because it denies coverage to high-risk drivers. It primarily bases your costs on your driving record, so it’s a great choice if you’re a safe driver with a clean history.

Test-Drive Process

Part of why Root can offer such low rates is its strict vetting process. You must sign up for a test drive and allow Root to track your driving behavior for up to 30 days to get a quote.

Root connects to your smartphone and uses already available features — GPS, accelerometer, and gyroscope — to measure your driving habits across those 30 days. Its tracking system will identify what time of day you’re driving, how many miles you’ve driven, your turn speed, and more. If your driving habits meet its standards, it will approve you and offer you some of the cheapest rates available today.

Safe Driver Discount Model

Root has a unique discount mode. The safer you drive and the better your driving record is, the cheaper your prices will be. While it offers bundling discounts for car and renters insurance, most of the company’s safe-driver discounts will be built into your final quote automatically. Drivers with the best driving records and test drive scores will be eligible for the lowest prices.

All-in-One App Management

Like Metromile, Root has a robust online and mobile app platform. You can manage elements of your insurance policy like claims, discounts, and coverage options through the app, as well as roadside assistance. Root is ideal for a tech-savvy customer who would rather use an app than speak to a human.

Erie has an average annual cost of $1,084 and ranks highly for customer satisfaction and service. In both 2021 and 2022, Erie ranked second highest in customer satisfaction, with ratings of 878 out of 1,000 for midsize auto insurance providers.

Personalized Customer Service

J.D Power ranks Erie highly on customer service and satisfaction. Part of what gives Erie the edge in customer service is its network of independent agents.

As a customer, you will need to work with an agent directly to help you narrow down the best insurance policy, make claims, and manage your current policy. The availability of independent agents is great for direct contact with someone who can walk you through the auto insurance process step by step.

Ability to Lock Your Rates

Erie has a unique rate-lock perk. If you qualify for a policy, Erie won’t raise your rates year over year unless you change your policy, drivers, or address. This means your rates won’t go up even if you have a claim on your vehicle.

Some restrictions and limitations apply. For example, you can only lock your rates for three years in Virginia, so speak to an agent to get the most accurate information for your plan and location.²

Perks and Coverage Options

Erie has a long list of discount and coverage options that appeal to a wide variety of drivers. Erie offers dozens of bundling options, including multiple-vehicle, home insurance, life insurance, and business insurance. While Erie offers all the most common coverage options — liability, collision, medical payment (PIP), comprehensive, and underinsured/uninsured motorist — it also offers a wide range of add-ons, including the following:

• Gap insurance
• Pet injury
• Roadside assistance
• Personal property coverage
• New/better car replacement coverage
• Windshield repair

Priced at $1,119 on average annually, Clearcover offers affordable rates, has great options for rideshare drivers, and offers unique perks. One of those perks is the company’s lightning-fast claims payouts. While it can take most auto insurance companies weeks to pay a claim, Clearcover pays claims in less than a week on average (its record is seven minutes).

Integrated Discounts

With most big insurance providers, you need to ask an agent about their discounts to see what you qualify for. Clearcover simplifies this process by integrating discounts into its standard pricing. Clearcover automatically builds discounts like safe driving, vehicle features, paying upfront, and more into its final price. Beyond its integrated discounts, you can also receive up to 25 percent off if you’re an active member of the military.

6-Month Terms

Rather than offering 12-month policies, Clearcover covers you for six-month periods. At the end of the six-month period, it will evaluate your driving history and let you know what discounts you may be eligible for. If you had a good driving record across the previous time period, you could qualify for more savings, more frequently.

Rideshare Insurance

Clearcover offers a rideshare endorsement add-on that allows you to drive for a rideshare service like Uber or Lyft under its plan. Rates can be as low as $10 a month, but note that your rideshare insurance won’t extend to food delivery services like DoorDash, UberEats, or Postmates, only ridesharing services.

While most rideshare companies offer some coverage in their plans, their options are often limited to specific driving situations. For example, some companies will only insure you between when you’re dropping off and picking up a passenger, not when the passenger is in the car with you. Other plans insure you only when you have a passenger in the car, but not when you’re alone or driving to pick up a new passenger. Clearcover makes sure you’re covered in any rideshare situation.

The United Services Automobile Association, also known as USAA, offers the cheapest rates out of the top 10 largest insurance providers. However, its auto insurance program is available only to active U.S. military members, veterans, pre-commissioned officers, and their spouses and children.

If you fall into that category, you can enjoy affordable rates, financial advice, and a number of other exclusive benefits like travel deals, shopping rewards, and car rental discounts. You must be a USAA member to sign up with USAA, but membership is free.

Robust Discounts

USAA members don’t just get to enjoy some of the cheapest rates in the country; they also get a long list of discounts. The average driver saves $725 a year with USAA. These are some available discounts:

• Good student discounts
• Up to 15 percent for keeping your car on a military base
• Up to 60 percent for keeping your car in storage when you’re deployed overseas
• Multiple vehicle bundling
• Safe driver discounts for going five or more years without an accident
• Up to 10 percent for bundling your home and car insurance
• 3 percent for making automatic payments

USAA Membership Perks

Outside of affordable rates and attractive discounts, you gain access to a number of membership perks as a USAA member:

• 24/7 membership support from knowledgeable reps who can help you with your auto insurance needs, deployment questions, and help with transitioning back to life in the U.S.
• Banking advice and products to help you with your loans, auto insurance, and other everyday needs
• Financial advice for investing, saving, managing debt, and preparing for major life events such as retirement or buying a new home
• Travel deals on hotels, cruises, shopping, vacation packages, and travel insurance
• ADT home security deals with three-month deployment security credit

International Insurance

USAA understands the unique challenges that military members, veterans, and their families face. Leaving your family behind is one of the most difficult aspects of deployment, and USAA is dedicated to making that process as seamless as possible.

You won’t have to cancel your insurance policy if you’re deployed for a permanent change of station (PCS). USAA will protect your vehicle while you’re away with liability coverage, vehicle storage, and personal injury coverage. USAA will also provide guidance about deployment to the following countries and territories:

• Azores
• Belgium
• Cuba
• France
• Germany
• Greece
• Guam
• Italy
• The Netherlands
• Portugal
• Puerto Rico
• South Korea
• Spain
• U.S. Virgin Islands
• United Kingdom