Can You Get Full Coverage Auto Insurance for Less Than $50 a Month?

For a traditional unlimited mileage policy, USAA, Travelers, and GEICO are major providers that offer some of the cheapest full coverage rates. Regional providers Plymouth Rock, Auto-Owners, and Erie also offer cheap rates, as does Connect, which is available to Costco members.

The table below shows the cheapest full coverage auto insurance providers in the country.

If you drive infrequently, you may be able to pay less for full coverage car insurance with a pay-per-mile policy. With this type of policy, you pay a set monthly or daily base rate, plus a per-mile rate. How much you pay per month varies depending on how much you drive.

Here’s an example based on advertised rates from Nationwide Smartmiles:

It’s worth considering a pay-per-mile policy if you drive fewer than 7,500 miles annually. People who may drive less than average include:

• Remote workers
• Retirees
• Stay-at-home parents
• Households with an extra car

Nationwide SmartMiles offers the cheapest pay-per-mile insurance, with an average annual rate of $1,044 and an average monthly rate of $87. Root also offers low-cost pay-per-mile insurance, with an average annual cost of $1,120 and an average monthly cost of $93.

Note that cost varies widely depending on how much you drive and where you live. Additionally, data is not available for all pay-per-mile providers. Compare quotes from at least three providers to find the cheapest rates for you.

While the national monthly average cost of auto insurance is $200 a month, there are steps you can take to keep your monthly rates as low as possible:

Shop Around for Discounts

Many auto insurance providers offer a wide range of discounts, including safe-driver discounts, low-mileage discounts, and even alumni or teacher discounts. Not all providers have the same discount offerings, so shop around for ones that apply to you.

One of the most significant factors in your auto insurance rates is your location. Below, we’ll review some of the cheapest and most expensive states for full coverage auto insurance.

Cheapest States for Full Coverage Auto Insurance

On average, Wyoming has the lowest average full coverage car insurance rates at $1,211 per year, or $101 per month. Vermont and Maine have the next-cheapest average rates, with full coverage at $101 and $104 per month, respectively.

Most Expensive States for Full Coverage Auto Insurance

On the other end of the scale, Florida has the highest average rate for full coverage auto insurance at $3,268 per year, or $272 per month. Louisiana ($251 per month), Delaware ($232 per month) and Nevada ($225 per month) have the next-highest monthly rates.

Regardless of which coverage type you choose, multiple factors affect your auto insurance rate, including your age, location and marital status.

• Age: Car insurance is often the most expensive for young drivers and the cheapest for those in their 30s and 40s, and rates tend to increase again as drivers get older.
• Gender: Many providers charge higher rates for men than for women because they view men as a higher risk; the gap is widest for teenage and young adult drivers.
• Driving history: Your driving history has a significant impact on your auto insurance rates. A history of DUIs, speeding tickets or at-fault accidents can raise your rates by 22 to 83 percent.
• Vehicle: Some vehicles cost more to insure than others. Luxury and sports vehicles cost more; SUVs and sedans typically cost less.
• Location: Your state and city have a big influence on your insurance rates. Drivers in dense, urban areas experience higher costs.
• Marital and homeowner status: Drivers who are married or own their own home often get lower insurance rates.
• Credit score: On average, a low credit score will increase your auto insurance by 80 percent, almost as much as having a DUI on your record.

Whether full coverage or liability coverage is best for you depends on your personal risk tolerance and monthly budget. For many drivers, the higher cost of full coverage is well worth the additional peace of mind that vehicle and medical costs will be covered in the event of an accident.

When You Should Get Full Coverage

If you fall into any of the below categories, full coverage is a good idea:

• Have a brand-new car
• Cannot cover the costs of an accident out of pocket
• Live in a high-risk neighborhood (either due to vandalism, dangerous driving or extreme weather)
• Lease or finance your car (your lender will likely require full coverage)

When You Should Get Liability Coverage

On the other hand, liability coverage may be best if you drive an older vehicle that is fully paid off. As a rule of thumb, if annual comprehensive and collision premiums are greater than 10 percent of the car’s value, it may not be worth it.

Remember, while opting for liability coverage may save you money in the short term, you’ll likely incur much higher out-of-pocket costs if you ever need to make a claim.

In recent years, auto insurance rates have increased significantly¹, making it highly unlikely (but not impossible) to find full coverage for less than $50 a month. If you drive infrequently, getting a pay-per-mile policy can potentially get your full coverage rates under $100 monthly.

Taking steps like researching discounts, comparing multiple providers, and determining which provider offers the lowest rate in your state, you can keep your rates as low as possible. Maintaining a clean driving record is also one of the most effective ways to keep your auto insurance rates low. If you’re seeking the absolute lowest monthly rates, consider liability coverage instead of full coverage.