We analyzed auto insurance rate data across all 50 states to find the cheapest car insurance companies in 2026. The national average for full coverage is $2,004 per year but the cheapest insurers charge far less for many driver profiles.
Cheapest Car Insurance Overall
Geico offers the cheapest average rates nationally at $1,168 per year or $97 per month for full coverage, which is 42 percent below the national average of $2,004. USAA is even cheaper at $1,022 per year but is only available to military members and their families. Erie Insurance rounds out the top three at $1,179 per year but is only available in 12 northeastern and midwestern states. For most drivers outside those groups, Geico is the cheapest widely-available option.
Cheapest for Young Drivers
State Farm and Geico offer the cheapest rates for drivers under 25. State Farm's Steer Clear program provides additional discounts for drivers under 25 who complete a safe driving course. The average 20-year-old pays $4,800 per year for full coverage nationally. Staying on a parent's policy when possible can reduce this to $1,800 to $2,400 per year. After age 25, most insurers reduce rates by 10 to 15 percent automatically.
Cheapest for Drivers with One Accident
USAA offers the cheapest rates after an at-fault accident for eligible military drivers. For non-military drivers, State Farm is the most forgiving insurer after a first accident, raising rates an average of 18 percent versus the industry average of 35 percent. Most insurers raise rates 25 to 40 percent after an at-fault accident. Shopping quotes immediately after an accident is essential since you may save $600 to $1,500 per year by switching.
Cheapest for Minimum Coverage Only
Geico offers the cheapest minimum liability-only coverage nationally at $384 per year or $32 per month. State Farm averages $456 per year for minimum coverage. Minimum coverage is only appropriate if your car is old with low market value. For any car worth more than $4,000 or any car that is financed or leased, full coverage is strongly recommended.
How to Get the Cheapest Car Insurance
Get quotes from at least 4 insurers before choosing. Bundle auto with home or renters insurance for 10 to 25 percent off. Raise your deductible from $500 to $1,000 to save 15 to 20 percent. Ask about every available discount since most drivers qualify for 3 to 6 they have never claimed. If you are a safe driver, enroll in a telematics program like Snapshot, Drive Safe and Save, or SmartRide for potential savings of 10 to 30 percent based on your actual driving behavior.