Geico Emerges as a Leader in Low-Cost Car Insurance
According to an in-depth analysis from NerdWallet conducted in March 2025, Geico stands out as the most affordable large auto insurance company in the nation for minimum coverage. The average rate is just $41 a month, translating to $487 annually, making it an attractive option for many drivers.
NerdWallet’s editorial team meticulously evaluated rates from 137 insurance providers to determine which companies offer the most competitive prices. To help consumers easily compare and find the best deals, the cheapest insurers and their corresponding average rates have been categorized across several common driver profiles.
Key Findings on Affordable Car Insurance
The analysis from NerdWallet reveals the cheapest car insurance providers in several key categories:
- Full Coverage: Travelers, with an average monthly rate of $147.
- Liability Coverage: Geico, at $41 per month.
- Young Drivers: Geico, at $81 monthly.
- Millennial Drivers: Geico, averaging $40 each month.
- Senior Drivers: State Farm, coming in at $44 monthly.
- Drivers with Poor Credit: Geico, offering rates at $57 per month.
- After a Speeding Ticket: State Farm, priced at $51 per month.
- After an Accident: State Farm, with an average of $59 each month.
- Following a DUI: Progressive, averaging $64 per month.
Note: All average rates are based on NerdWallet’s March 2025 analysis. (See their methodology for more details.)
How Location Affects Car Insurance Costs
It’s worth noting that location is a major factor in determining the cost of auto insurance. For instance, while the average monthly rate for minimum coverage in Louisiana sits at $88, drivers in Nebraska may pay only $32 for the same coverage.
To provide insight into potential costs, NerdWallet also identified the cheapest car insurance company for minimum coverage in each state. Here’s a snapshot of that data:
Cheapest Companies by State
- Alabama: Good2Go ($282 annual rate)
- Alaska: Geico ($338)
- Arizona: QBE ($417)
- Arkansas: The Hanover ($325)
- California: Grange Insurance Association ($355)
- Colorado: California Casualty ($193)
- Connecticut: Travelers ($456)
- Delaware: Travelers ($707)
- Florida: Geico ($322)
- Georgia: Central Insurance ($460)
- Hawaii: Geico ($266)
- Idaho: American National ($212)
- Illinois: Westfield ($308)
- Indiana: Westfield ($303)
- Iowa: Geico ($232)
- Kansas: Geico ($401)
- Kentucky: Kentucky Farm Bureau ($481)
- Louisiana: Geico ($679)
- Maine: Progressive ($343)
- Maryland: Geico ($550)
- Massachusetts: Vermont Mutual ($310)
- Michigan: Wolverine Mutual ($316)
- Minnesota: Westfield ($294)
- Mississippi: State Farm ($372)
- Missouri: Missouri Farm Bureau ($358)
- Montana: State Farm ($213)
- Nebraska: American National ($162)
- Nevada: CIG ($444)
- New Hampshire: The Hanover ($233)
- New Jersey: State Farm ($464)
- New Mexico: Central Insurance ($164)
- New York: NYCM ($370)
- North Carolina: Erie ($466)
- North Dakota: North Star ($312)
- Ohio: Central Insurance ($211)
- Oklahoma: Geico ($326)
- Oregon: California Casualty ($384)
- Pennsylvania: Auto-Owners ($116)
- Rhode Island: Quincy Mutual ($559)
- South Carolina: Allstate ($561)
- South Dakota: Farmers Mutual of Nebraska ($203)
- Tennessee: Auto-Owners ($376)
- Texas: Texas Farm Bureau ($418)
- Utah: QBE ($359)
- Vermont: Union Mutual ($177)
- Virginia: Virginia Farm Bureau ($346)
- Washington: CIG ($338)
- Washington, D.C.: Chubb ($319)
- West Virginia: Westfield ($375)
- Wisconsin: Integrity ($166)
- Wyoming: American National ($132)
Car Insurance Costs in Major US Cities
Because car insurance rates are heavily impacted by your ZIP code, the analysis also examined rates in the largest cities within the U.S.
Full Coverage vs. Liability Coverage: Understanding the Trade-offs
Minimum coverage car insurance represents the cheapest option, but it comes with significant risks because the coverage amounts are low. In the event of a serious accident, you may be responsible for covering substantial expenses out of pocket. Therefore, those who can afford it should consider full coverage.
Full coverage auto insurance provides financial protection for your vehicle in the event of an accident. It also covers repairs to your own vehicle after an at-fault accident. Liability coverage only covers damages to others. You will be responsible for covering your own repairs.
For full coverage, Travelers is the most affordable, with a median monthly rate of $147.
For liability coverage, Geico is the cheapest, at $41 per month.
Factors Impacting Car Insurance Rates
Several factors affect the cost of car insurance including age, driving history, and credit scores.
Insurance rates are more expensive for younger drivers, since they are viewed as riskier to insure.
Meanwhile, drivers in their 30s and 40s often get the best rates. However, rates tend to increase again after age 70.
Poor credit can also have a big impact on auto insurance costs in most states, but California, Hawaii and Massachusetts don’t allow insurers to use credit when determining car insurance rates.
Finding the Best Car Insurance
To find the most affordable car insurance, the best thing to do is shop around. Having good credit and a clean driving record are also ways to save.
