GEICO typically ranks as the cheapest insurance company for most drivers with average annual premiums of $1,428, followed by State Farm at $1,547 and Progressive at $1,632 according to national rate surveys. However, the cheapest insurer varies dramatically by individual factors including age, location, driving record, credit score, and coverage levels, with young drivers finding State Farm cheapest ($3,492/year) while seniors get best rates from Nationwide ($1,246/year). Regional insurers like Erie, Auto-Owners, and Farm Bureau often beat national carriers by 15-30% in states where they operate, making comparison shopping across 5-7 companies essential for finding your personal lowest rate.
Quick Facts: Cheapest Insurance Companies
Cheapest Overall (National Average):
- GEICO: $1,428/year
- State Farm: $1,547/year
- Progressive: $1,632/year
- USAA: $1,171/year (military only)
- Nationwide: $1,704/year
Best for Specific Groups:
- Young Drivers: State Farm ($3,492/year)
- Seniors: Nationwide ($1,246/year)
- Poor Credit: GEICO ($2,896/year)
- After Accident: GEICO ($2,012/year)
- Military: USAA ($1,171/year)
Regional Leaders:
- Erie: $1,242/year (12 states)
- Auto-Owners: $1,368/year (26 states)
- Farm Bureau: Varies by state
National Average Rates by Company
Top 10 Cheapest Insurance Companies (2026):
- USAA: $1,171/year (military members only)
- GEICO: $1,428/year
- Erie: $1,242/year (limited availability)
- Auto-Owners: $1,368/year (26 states)
- State Farm: $1,547/year
- Progressive: $1,632/year
- Nationwide: $1,704/year
- American Family: $1,789/year
- Travelers: $1,844/year
- Allstate: $2,018/year
These rates represent national averages for full coverage auto insurance including liability, collision, and comprehensive coverage with standard deductibles.
People also love to read this: Term Life Insurance vs Whole Life Insurance Calculator
Cheapest by Age Group
Teen Drivers (16-19):
- State Farm: $3,492/year
- GEICO: $3,845/year
- USAA: $3,124/year (military families)
- Progressive: $4,287/year
- Nationwide: $4,512/year
Young Adults (20-29):
- GEICO: $1,892/year
- State Farm: $2,041/year
- Progressive: $2,156/year
- Erie: $1,687/year
- USAA: $1,543/year
Middle Age (30-49):
- GEICO: $1,324/year
- Erie: $1,198/year
- State Farm: $1,412/year
- Auto-Owners: $1,285/year
- Progressive: $1,487/year
Seniors (65+):
- Nationwide: $1,246/year
- Erie: $1,089/year
- GEICO: $1,298/year
- State Farm: $1,356/year
- Auto-Owners: $1,224/year
Cheapest After Violations
After Speeding Ticket:
- GEICO: $1,687/year (+18%)
- State Farm: $1,745/year (+13%)
- Progressive: $1,823/year (+12%)
- Erie: $1,421/year (+14%)
After At-Fault Accident:
- GEICO: $2,012/year (+41%)
- State Farm: $2,287/year (+48%)
- Progressive: $2,445/year (+50%)
- Nationwide: $2,534/year (+49%)
After DUI:
- Progressive: $2,987/year (+83%)
- GEICO: $3,124/year (+119%)
- State Farm: $3,456/year (+123%)
- Nationwide: $3,678/year (+116%)
Progressive typically offers the most competitive rates for high-risk drivers with violations.
Cheapest by Credit Score
Excellent Credit (750+):
- GEICO: $1,187/year
- Erie: $1,092/year
- State Farm: $1,289/year
- Auto-Owners: $1,156/year
Good Credit (700-749):
- GEICO: $1,428/year
- State Farm: $1,547/year
- Erie: $1,242/year
- Progressive: $1,632/year
Fair Credit (650-699):
- GEICO: $1,892/year
- Progressive: $2,041/year
- State Farm: $2,187/year
- Nationwide: $2,254/year
Poor Credit (Below 650):
- GEICO: $2,896/year
- Progressive: $3,124/year
- State Farm: $3,387/year
- Allstate: $3,542/year
GEICO maintains the smallest rate increases for drivers with poor credit compared to competitors.
Regional Insurers Beat National Carriers
Erie Insurance (12 states): Average rate: $1,242/year (15% below national average). Available in: IL, IN, KY, MD, NC, NY, OH, PA, TN, VA, WV, WI.
Auto-Owners (26 states): Average rate: $1,368/year (10% below national average). Strong Midwest and Southern presence.
Farm Bureau: Rates vary by state but typically 20-30% below national carriers. Available to Farm Bureau members only. Operates in 30+ states.
Regional advantages:
- Lower overhead costs
- Focused underwriting in specific markets
- Better understanding of local risk factors
- Fewer advertising expenses
- Higher customer satisfaction ratings
Always get quotes from regional insurers operating in your state alongside national carriers.
Why Rates Vary So Much
Your cheapest company depends on:
Personal factors:
- Age and gender
- Marital status
- Credit score
- Driving record
- Claims history
- Years of driving experience
Vehicle factors:
- Make, model, and year
- Safety ratings
- Theft rates
- Repair costs
- Annual mileage
Location factors:
- State regulations
- ZIP code risk levels
- Local accident rates
- Weather patterns
- Crime statistics
Coverage factors:
- Liability limits selected
- Deductible amounts
- Optional coverages
- Bundling discounts
A driver cheapest with GEICO in Texas might find State Farm cheapest in Ohio due to different state regulations, competition levels, and risk factors.
How to Find Your Cheapest Rate
Step 1: Gather Information
- Driver’s license numbers
- Vehicle identification numbers (VINs)
- Current coverage details
- Driving history for all household drivers
Step 2: Compare 5-7 Companies Get quotes from:
- 2-3 national carriers (GEICO, State Farm, Progressive)
- 2-3 regional insurers available in your state
- 1-2 independent agents representing multiple companies
Step 3: Use Comparison Tools
- Insurance comparison websites (Policygenius, The Zebra)
- Individual company websites
- Independent insurance agents
- State insurance department websites
Step 4: Verify Coverages Match Ensure all quotes include identical:
- Liability limits
- Deductibles
- Coverage types
- Discounts applied
Step 5: Check Customer Service Review:
- J.D. Power satisfaction ratings
- AM Best financial strength ratings
- Complaint ratios from state insurance departments
- Claims handling reviews
Don’t sacrifice service quality for $50-$100 annual savings.
Available Discounts
Common discounts lowering rates 5-30%:
Multi-policy: Bundle auto with home, renters, or life insurance (10-25% savings)
Good driver: No accidents or violations for 3-5 years (15-30% savings)
Multi-car: Insure multiple vehicles on one policy (10-25% savings)
Good student: Full-time students with B average or better (10-20% savings)
Defensive driving: Complete approved driving course (5-15% savings)
Low mileage: Drive under 7,500-10,000 miles annually (5-15% savings)
Safety features: Anti-lock brakes, airbags, anti-theft systems (5-20% savings)
Paperless: Enroll in electronic documents and payments (3-5% savings)
Stack multiple discounts to reduce premiums 30-50% below base rates.
State-Specific Variations
Most Expensive States:
- Michigan: $2,878 average
- Louisiana: $2,654 average
- Florida: $2,587 average
- California: $2,291 average
- Rhode Island: $2,245 average
Cheapest States:
- Vermont: $1,124 average
- Idaho: $1,189 average
- Maine: $1,245 average
- Ohio: $1,267 average
- Iowa: $1,289 average
State minimums, no-fault laws, and litigation environments dramatically affect pricing.
Frequently Asked Questions
Is GEICO really the cheapest insurance company?
GEICO offers the cheapest rates for most average drivers nationally at $1,428/year, but not for everyone. Young drivers find State Farm cheaper, seniors get better rates from Nationwide, and regional insurers like Erie often beat GEICO by 15-20%. Your personal cheapest company depends on your age, location, driving record, and coverage needs. Always compare 5-7 companies to find your lowest rate.
Why is my quote higher than advertised rates?
Advertised rates represent averages or best-case scenarios for drivers with excellent credit, clean records, and minimal coverage. Your actual rate reflects your specific risk profile including age, location, credit score, driving history, vehicle type, and coverage selections. Companies also offer different rates in different states based on local regulations and competition. Always get personalized quotes rather than relying on advertised averages.
How often should I shop for cheaper insurance?
Shop for new insurance quotes every 12-18 months or after major life changes like moving, marriage, buying a home, adding drivers, or changing vehicles. Your current insurer likely raises rates 3-8% annually while competitors may offer better prices to attract new customers. Comparison shopping saves $300-$500 annually on average. Set calendar reminders 30-60 days before renewal to allow time for quotes.
Do comparison websites give accurate quotes?
Comparison websites provide ballpark estimates, not final prices. They’re useful for identifying 3-5 companies worth contacting directly. Final quotes require detailed underwriting including credit checks, full driving records, vehicle inspections, and coverage verification. Expect final quotes to vary 5-15% from comparison site estimates. Use comparison sites for initial research, then get official quotes from top candidates.
Will switching companies hurt my insurance record?
No, switching insurance companies doesn’t hurt your insurance or credit record. Insurers expect customers to shop around, and there’s no penalty for changing carriers. However, maintaining continuous coverage is essential to avoid higher rates. Never cancel old coverage until new policy activates. Some companies offer small discounts for long-term customers (5+ years), but these rarely offset competitive rate shopping.
People also love to read this: Life Insurance Buying Guide
Final Thoughts
No single insurance company is cheapest for everyone. GEICO leads nationally at $1,428 average annual premium, but State Farm wins for young drivers, Nationwide for seniors, and regional insurers often beat all national carriers by 15-30% in states where they operate.
Your personal cheapest rate depends on dozens of factors including age, location, driving record, credit score, vehicle type, and coverage selections. A driver finding GEICO cheapest in one state might discover State Farm or Progressive offers better rates after moving or experiencing life changes.
Compare quotes from 5-7 companies every 12-18 months. Include national carriers like GEICO, State Farm, and Progressive alongside regional insurers available in your state. Request identical coverage limits and deductibles to ensure accurate comparisons.
Stack available discounts including multi-policy, good driver, multi-car, and safety features to reduce premiums 30-50%. Many drivers qualify for discounts they’re not currently receiving simply by asking.
Don’t sacrifice customer service and financial stability for minimal savings. Check J.D. Power satisfaction ratings, AM Best financial strength ratings, and state complaint ratios before switching. The cheapest company that handles claims poorly ultimately costs more.
Use comparison tools for initial research but get final quotes directly from companies. Comparison websites provide estimates, not guaranteed prices. Official quotes require full underwriting including credit checks and driving records.
Remember that your cheapest company today might not remain cheapest forever. Insurance rates constantly change based on company performance, state regulations, and market competition. Regular comparison shopping ensures you always pay the lowest rate available for your risk profile.
