Car insurance rates averaged $2,297 annually in early 2026, according to Experian, or about $191 per month.
For full-coverage insurance, which includes comprehensive and collision coverage, the national average was nearly $3,000. If you only have minimum-coverage or liability insurance, that price drops nearly in half.
CNBC Select has reviewed dozens of insurers to identify providers that score high on savings without compromising coverage or customer service. For details on how we made our list, see our methodology.
Find auto insurance that meets your budget
Best for full coverage: Geico
Who's this for? Geico has some of the lowest rates in the industry for full coverage car insurance, even if you have bad credit, speeding tickets, accidents or other risk factors. Plus, unlike other affordable options like USAA and Auto-Owners, Geico is available in almost every state.
Standout benefits: Optional add-ons like accident forgiveness, roadside assistance and coverage for mechanical issues after the manufacturer's warranty expires.
- 16 discounts are available to lower premiums
- Easily purchase and manage policy online
- Policy add-ons can include roadside assistance and mechanical breakdown insurance
- No gap insurance
- Few branches for in-person services
- Ranks below average for customer service and claims on J.D. Power surveys
Best after a ticket or accident: Auto-Owners
Who's this for? Premiums increase after a speeding ticket or at-fault accident, but Auto-Owners offers the lowest rates for high-risk drivers.
Standout benefits: Auto-Owners has useful add-ons like accident forgiveness, gap insurance and additional expense coverage. We also named Auto-Owners one of the best insurers for young drivers and seniors.
- Accident forgiveness is an add-on
- High customer satisfaction scores from J.D. Power
- Covers modified cars and vehicles converted for the disabled
- Only available in 26 states
- Quotes must be obtained through an agent
- Claims must be filed with an agent
Best after a DUI: Travelers
Who's this for? Your rates can soar more than 80% after a DUI conviction. Travelers offers some of the lowest rates for this driver category and issues SR-22 certificates if you need to have your driving privileges reinstated.
Standout benefits: Enrolling in Travelers' IntelliDrive telematics program can save you up to 30% for practicing safe driving habits.
- Lower rates
- Discount for hybrids/EVs
- Not available in all states
- Some discounts not available in every state
- Below-average customer satisfaction scores
Best for seniors: Nationwide
Who's this for? Nationwide has some of the lowest rates on the market for older drivers. Plus, customers 55 and older can save an average of 5% by completing an approved defensive driving course.
Standout benefits: Nationwide's SmartMiles pay-per-mile car insurance plan can save retirees and other infrequent drivers hundreds of dollars per year compared to a traditional policy. It comes with a 10% discount at enrollment, plus more savings if you demonstrate safe driving behavior.
- Available in 46 states and Washington, D.C.
- Lowest average premiums for full coverage
- Quotes available online
- High average premium for minimum coverage
- Lower than average scores from J.D. Power's customer satisfaction survey
Best for families with a teen driver: State Farm
Who's this for? State Farm offers budget-friendly rates for parents with a teen or young adult on their policy. There's also a student discount worth up to 25% if you earn at least a B average and a Steer Clear® program that rewards safe drivers under age 25.
Standout benefits: State Farm offers rideshare insurance and has robust travel expense coverage if you're stranded more than 50 miles from home.
State Farm Auto Insurance
Policy highlights
The largest auto insurer in the U.S., State Farm has an excellent reputation for customer satisfaction and affordable rates, even for teens.
Discounts
More than a dozen discounts, including for safe driving, bundling and good students. Drive Safe & Save program offers up to 30% off for lower mileage and safe driving habits.
Availability
State Farm liability car insurance is available nationwide except for Massachusetts and Rhode Island.
Terms apply.
Read our State Farm auto insurance review.
Pros
- High customer satisfaction ratings
- Available in most states
- Affordable rates for teen drivers
Cons
- Doesn’t offer gap insurance
- Accident forgiveness requires 9 years accident-free
- Have to work with an agent to buy a policy..
Best for homeowners: Amica
Who's this for? Amica offers up to 30% off when you bundle your home and auto policies, the largest bundling discount among the companies on this list. Even if you don't have a home policy with Amica, you may qualify for a reduction just for being a homeowner.
Standout benefits: Amica is a mutual company and drivers in some states are eligible for dividends.
Amica Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Amica offers full and minimum coverage auto insurance, with add-ons accident forgiveness and new car replacement. The Platinum Choice® Auto plan includes new car replacement, credit monitoring and rental coverage with no daily limit.
Terms apply.
Read our Amica auto insurance review
Pros
- High customer satisfaction ratings from J.D. Power
- Bundling home and auto can save you up to 30%
- Drivers in some states are eligible for dividends
Cons
- More higher-than-average rates for most driver types
- Switching from 12-month policies to 6-month
Best for military members and veterans: USAA
Who's this for? Available to former and current service members and their families, USAA car insurance offers some of the lowest premiums on the market and provides deep discounts if you store your vehicle on base or are deployed and not driving your car.
Standout benefits: Customers who bundle home and auto with USAA can save up to 15%. There are also discounts for having a new car, for insuring multiple vehicles and for remaining a customer for at least three years.
- Cheapest insurer for liability policies
- Stellar customer satisfaction scores
- Available in all 50 states
- Limited to military families and veterans
- No physical branches
- Customer service not available 24/7
- Safe-driver discount not available in every state
How much does car insurance cost?
In early 2026, overall car insurance rates averaged $2,297 annually. A full-coverage policy, which includes comprehensive and collision coverage, averaged $2,910, while minimum-coverage or liability insurance was about $1,556.
Rates vary significantly throughout the country and are typically higher in no-fault states such as New York and Michigan.
Why is car insurance so expensive?
Premiums have increased for several reasons, according to the Insurance Information Institute.
Economic factors: The cost of repairing and replacing vehicles has risen faster than inflation, as have medical and legal bills. Tariffs on automobiles, parts and raw materials also impact insurance premiums.
More expensive repairs: As car technology has advanced, repairing or replacing parts has become more costly.
Increased accidents: The number and severity of collisions, including fatal crashes, have gone up, according to the Insurance Institute for Highway Safety. That means larger payouts from insurers, who then charge customers higher premiums.
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How car insurance rates are calculated
Many different factors play a role in your premiums:
- Age: Young drivers (under 25) pay some of the highest premiums. Rates decrease after that until age 70, when they begin to rise again.
- Gender: In all but six states, insurance companies can consider your gender when calculating your rates. Because women are considered more conservative drivers, men tend to pay higher rates.
- Credit history: In most states, insurance providers consider your credit when deciding rates. For that reason, improving your credit score can lower your car insurance.
- Location: Insurance companies factor in crime rates, population density and other geographical factors when determining premiums. Some states have higher coverage minimums or require extras, like personal injury protection, that can add up.
- Driving record: Speeding, accidents and other high-risk driving will lead to higher rates, as will filing a lot of claims or lapses in coverage.
- Vehicle: Some models are more expensive to insure. Even the color of your car can impact the price you pay for insurance.
How to lower your auto insurance rates
There are several ways to cut down on the cost of car insurance:
Step 1: Shop around
Insurance companies calculate rates differently. If you think your provider is too expensive, get rate quotes from at least three other insurers — including some on this list.
Step 2: Raise your deductible
Typically, the higher your deductible, the lower your premium will be. Make sure you can afford to pay out of pocket if you're in an accident.
Step 3: Lower your coverage amount
Full coverage is usually the smart choice, but if your car is worth less than 10 times your premium, you might be better off with just liability-only insurance.
Step 4: Look for discounts
Most insurance companies have discounts for good students, safe driving and for bundling auto insurance with homeowners insurance, among other rate reductions.
Step 5: Improve your credit score
In most states, insurers are permitted to consider your credit history when pricing your policy. Generally, the higher your score, the lower your premiums — so paying your bills on time (and in full), not spending up to your credit limit and checking your credit report for errors can save you money
FAQs
What is the cheapest type of car insurance?
The most affordable car insurance is a liability-only policy, also referred to as minimum-coverage car insurance. It only covers damage or injuries to another car, driver or passenger and is required by nearly every state if you want to be on the road.
What car is the cheapest for full coverage?
The cost of insuring any car depends more on your individual risk factors than the make and model of the vehicle. Generally, however, some of the lowest rates are for smaller SUVs, because they can sustain more serious collisions. Sports cars are more expensive to insure since they have higher repair costs.
Do I have to have car insurance?
Nearly every state requires a driver to have at least liability insurance, which can pay for injuries or damages to another car if you're held responsible for a collision. If you are still paying your car loan, you're probably required to have full coverage, which includes repairs to your vehicle.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice to help them make informed financial decisions. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
CNBC Select reviewed more than two dozen top car insurance companies, focusing on the average cost of both full- and minimum-coverage policies.
We also considered coverage types, nationwide availability, discounts, online experience and customer service, using data from J.D. Power's Auto Insurance Satisfaction Study and the National Association of Insurance Commissioners' complaint index.
The average premiums listed are based on a 40-year-old male driver with a 2023 Toyota Camry, a clean driving record, good credit and the following limits on his policy:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on these criteria, our picks for the best cheap car insurance are:
Best for full coverage: Geico
Best after a ticket or accident: Auto-Owners
Best after a DUI: Travelers
Best for seniors: Nationwide
Best for families with a teen driver: State Farm
Best for homeowners: Amica
Best for veterans: USAA
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