Getting online quotes from multiple auto insurance companies is the easiest way to compare car insurance prices, though you want to make sure to select the same coverages and deductibles for a true comparison. But even when all factors seem the same, rates can vary dramatically among insurers because of the parameters they use to calculate premiums, such as your driving record, mileage, location, age, gender, and even your credit score.
To find the best cheap car insurance companies, we requested quotes using the same driver profile and vehicle information. We also looked at insurers with different pricing strategies, such as Root’s emphasis on driving habits. Then we compared each company’s coverages, discounts, services, member perks, and independent ratings to determine the best overall value at the lowest price.
Best Cheap Car Insurance Companies in 2021
- Best Cheap Car Insurance: Nationwide
- Best for Military Members: USAA
- Best Accident Forgiveness: Progressive
- Best for Safe Drivers: Root
- Best for Improving Your Driving: State Farm
Best Cheap Car Insurance : Nationwide
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Nationwide
Our Nationwide quote was actually the second cheapest overall, but it takes the top spot on our list because the insurer with the lowest quote, USAA, only offers insurance to the military community (see below). Nationwide’s selection of optional coverages and its long list discounts show it doesn’t skimp on offerings to keep prices down. Infrequent drivers may receive even better prices based on Nationwide’s pay-per-mile program, SmartMiles.
Optional Coverages
In addition to the standard coverages like liability, personal injury protection, collision, and comprehensive, Nationwide offers a number of add-ons:
- Towing and labor coverage
- Rental car expense coverage
- Gap coverage (pays the difference between your totaled car’s lease/loan balance and its actual cash value)
- Accident forgiveness
- Roadside assistance
- Vanishing deductible (gives you $100 off collision and comprehensive deductibles—up to $500—for every accident-free year)
- Total loss deductible waiver (waives the comprehensive or collision deductible for total losses)
Discounts
Nationwide offers a solid range of car insurance discounts:
- Multi-policy
- SmartRide (telematics-based driving discount)
- Accident-free
- Good student
- Defensive driving course
- Vehicle anti-theft devices
- Safe driver (no at-fault accidents or major violations for 5 years)
- Easy pay (automatic bank payments)
Customer Service
J.D. Power studies show Nationwide’s overall customer satisfaction with its auto claims is about average. But the company scores below average for customer satisfaction with the overall auto insurance customer experience and its independent insurance agents. That means you may have mixed experiences when dealing with the company.
Affordable prices for basic coverages
Good optional coverages for more customized policies
Comprehensive learning center with educational articles and resources
Average to below-average J.D. Power scores
Read our full review of Nationwide Car Insurance
Best for Military Members : USAA
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USAA
USAA membership is open to current and former military members and their immediate families. Those who qualify will be hard-pressed to find another insurer offering USAA’s combination of unique benefits and affordability. USAA’s premiums were the cheapest of all the quotes we received, despite the fact that it offers benefits like international auto policies that cover cars during overseas shipments, dedicated international support numbers, an on-base garaging discount, and liability coverage for government-owned vehicles.
Optional Coverages
While USAA has all the basics covered, it also gives members a solid range of optional coverages:
- Wage earner disability benefits (pays a percentage of income for you or a covered passenger if you’re unable to work after an accident)
- Essential services disability benefits (pays non-family member to do services like grocery shop and clean if you can’t because of car accident injuries)
- Death benefit (pays a beneficiary if a car accident results in your death)
- Car replacement assistance (pays an additional 20% of car’s actual cash value in a totaled loss)
- Accident forgiveness (available after 5 years of being accident-free)
- Rental reimbursement
- Towing and labor
- Roadside assistance
- Rideshare insurance
Discounts
USAA car insurance discounts include:
- Early quote (quoting before current policy renews)
- Safe driver
- Defensive driving course
- Good student
- New vehicle
- Multi-vehicle
- Annual mileage
- Vehicle storage
- Family discount (10%)
- Length of membership
- Military installation (15% off comprehensive coverage when car is garaged on base)
- Multi-policy (10%)
Customer Service
USAA’s customer satisfaction ratings are outstanding in J.D. Power studies—it scores highest in nearly every study in which it appears, and would be ranked #1 if its membership restrictions didn’t prevent it from being truly compared with other insurers. These results show that customers enjoy their overall experience and claims handling with USAA.
Coverages, discounts, and services designed for the needs of military members
Stellar J.D. Power scores across multiple studies
Most affordable car insurance without sacrificing offerings or customer service
Membership isn’t open to everyone
Quotes are only available after creating an account and qualifying for membership
Read the full review of USAA Car Insurance
Best Accident Forgiveness : Progressive
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Progressive
Progressive’s Small Accident Forgiveness keeps your rates from going up after a claim that’s less than $500. This benefit is automatically included in your policy for free, it starts on day 1 of your policy, and it’s available in most states. After three consecutive years of being accident-free and at least five years of being a member, you can also earn Large Accident Forgiveness for claims over $500.
These perks are part of Progressive’s Loyalty Rewards Program, which offers additional benefits as you stay loyal to the insurer. For example, after 20 years of continuous membership, you can earn the Lifetime Renewal Guarantee benefit. That means Progressive won’t deny your policy renewal, even if you’ve had a certain number of accidents within a specified time period—a big advantage compared with most insurers. You might think you’d pay more for these perks, but our Progressive quote was still cheaper than the average of those we received. Plus, if you already know how much you want to pay for car insurance, Progressive’s Name Your Price tool is a fast way to see different coverage options that fit your budget.
Optional Coverages
Progressive offers a solid list of add-on coverages, depending on your location:
- Roadside assistance
- Loan/lease payoff (pays off totaled car’s balance up to 25% of its cash value)
- Rental car reimbursement
- Custom parts and equipment value (covers up to $5,000 of after-market accessories)
- Rideshare coverage
- Deductible savings bank (subtracts $50 from collision and comprehensive deductible each claim-free policy period)
Discounts
Progressive has an impressive selection of car insurance discounts:
- Multi-policy (5% on average)
- Multi-car (12% on average)
- Continuous insurance
- Snapshot (based on driving habits; averages $145 off)
- Teen driver
- Good student
- Distant student
- Homeowner (10% on average)
- Online quote (4% on average)
- Sign online (8.5% on average)
- Paperless
- Pay in full
- Automatic payment
Customer Service
Progressive’s J.D. Power score on the Auto Insurance Satisfaction Study is slightly below average, as is its score on the Auto Claims Satisfaction Study. However, Progressive is rated better than most insurers on J.D. Power’s Independent Insurance Agent Satisfaction Study. Overall, Progressive’s customer service appears to be a mixed experience, though your best bet might be to work with a local agent.
Name Your Price tool helps you find a policy within your budget
New customers who were with a previous insurer for 3+ years start at the Platinum level of Loyalty Rewards
Deductible savings bank doesn’t have a max limit, so deductible can reach $0
Coverage automatically includes accident forgiveness for claims up to $500
Mixed customer service scores show experiences may vary
Read the full review of Progressive Car Insurance
Best for Safe Drivers : Root
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Root Insurance
Root claims its policyholders can save up to $900 per year compared with their previous insurance policy, partly because of how the company sets your rates. While many car insurers offer savings in exchange for tracking your driving behavior, Root uses your driving habits as the biggest factor in your quote. You have to take a test drive for several weeks to get a quote. Your driving record is also a large part of Root’s assessment, and the company doesn’t insure anyone it deems high-risk or prone to accidents and claims. Root car insurance is available in 30 states.
Optional Coverages
Root offers all the basic types of car insurance, as well as a couple of optional add-ons:
- Roadside assistance (included for free, except in California)
- Rental (rental car or Lyft reimbursements)
Discounts
Root automatically builds discounts into your quote, so its website doesn’t list its discounts. The only one the company specifies is a bundling discount if you also sign up for home insurance (10%) or renters insurance (5%).
Customer Service
Root is newer and smaller than many other insurers, so it hasn’t been included in national surveys like J.D. Power studies yet.
Rates are based primarily on how you drive, not your demographics
All relevant discounts automatically applied to quotes
Roadside assistance is included for free (except in California)
Only available in 30 states, with six more and D.C. coming soon
Requires a 2-3+ week test drive in order to get a quote
Doesn’t allow you to retake the test drive if you don’t receive a quote
Read the full review of Root Car Insurance
Best for Improving Your Driving : State Farm
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State Farm
State Farm’s Drive Safe and Save program uses your phone and a separate Bluetooth beacon to track your acceleration, braking, speed, phone use while driving, and more. You can also see your driving score for the past two weeks, which can inspire you to make changes to become a better driver—and save up to 30% on already reasonably priced premiums.
State Farm’s Steer Clear program also helps policyholders under 25 become better drivers through training, practice, and mentoring. At the end, drivers get a certificate they can send to an agent to qualify for a discount.
Optional Coverages
Beyond the standard coverage, State Farm offers:
- Rental car reimbursement and travel expense coverage
- Emergency road service coverage
- Rental car insurance
- Rideshare insurance
Discounts
State Farm car insurance discounts include, depending on your location:
- Drive Safe & Save
- Steer Clear
- Accident-free (insured car has no accident claims for at least 3 years)
- Defensive driving course
- Student away at school
- Good driving
- Driver education course
- Good student (up to 25%)
- Vehicle safety (up to 40% on medical-related coverage)
- Passive restraint
- Anti-theft
- Multi-car
- Multi-policy
Customer Service
State Farm scored average or better on various J.D. Power studies, though it didn’t win any top prizes.
Lots of discounts, many aimed at younger drivers
Rewards safe driving habits with discounts
Rideshare insurance covers all phases of rideshare driving
Sometimes uses non-original equipment manufacturer (non-OEM) or recycled parts for claim repairs
Doesn’t always assign your nearest agent when quoting online
Read the full review of State Farm Car Insurance
Final Verdict
Car insurance doesn’t have to stretch your budget. The companies on this list offer affordable basic coverages that may be enough to fit your needs. Most also offer at least a few extras so you can customize the best cheap car insurance policy for your needs.
Compare Providers
| Best Cheap Car Insurance Companies of 2021 | |
|---|---|
| Insurance Company | Why We Picked It |
| Nationwide | Best Cheap Car Insurance |
| USAA | Best for Military Members |
| Progressive | Best Accident Forgiveness |
| Root | Best for Safe Drivers |
| State Farm | Best for Improving Your Driving |
FAQs
How Can You Find Cheap Car Insurance?
The best way to find cheap car insurance is to compare quotes from several national and regional insurers using the same coverage and deductible levels. Raising your deductibles, bundling auto and other policies, and signing up for telematics-based driving programs can also help you save.
If you’re on a budget but have an emergency fund, consider foregoing comprehensive and collision coverage If you drive an older car with a low actual cash value. The premium savings from declining these coverages may be worth it to you.
How Much Coverage Do You Need?
The minimum amount of coverage you need is what your state requires for liabilities like bodily injury and property damage. Some states also have medical payments and uninsured motorist coverage minimums. But these minimums may not be enough to cover liabilities in serious car crashes or property damages if you hit a luxury car. Instead, it’s best to go with the highest coverage you can reasonably afford.
Other important coverages are comprehensive and collision if you want your insurer to cover car damages from theft, fires, accidents, and other hazards. You can save on these coverages by choosing higher deductibles that still fit within your budget.
Methodology
To create our roundup, we compared quotes across the 10 largest auto insurers by direct number of premiums written, and we researched companies with alternative pricing models, such as Root and Metromile. From there, we selected the five that offered the best overall value for their price based on coverages, discounts, availability, member perks, and customer satisfaction scores.
Where we obtained quotes, we used the profile of a 35-year-old woman from Illinois driving a 2018 Ford Explorer with no prior accidents to compare costs for policies that met the minimum limits for Illinois.