Whether you’re a new driver or just tired of paying sky-high premiums, finding cheap auto insurance can save you hundreds—if not thousands—every year. We’ve ranked the top 10 cheapest auto insurance companies in the USA for 2025, starting from number 10 down to number 1, based on recent data from Forbes, AutoInsurance.com, The Zebra, and other reputable sources.
10. Allstate
Average Full Coverage: $2,584/year
Average Minimum Coverage: $1,275/year
Why it’s on the list:
Allstate isn’t always the cheapest, but depending on your location and driving record, it offers surprisingly competitive rates—especially when bundled with home or renters insurance. Their Drivewise program rewards good drivers with discounts.
Best for: Drivers who want strong coverage with digital tools and don’t mind paying slightly more for brand name value.
9. Amica Mutual
Average Full Coverage: $1,481/year
Why it’s on the list:
Amica is a lesser-known gem. It offers competitive prices, top-tier customer service, and dividend-paying policies (where you get money back if claims are low). Not always the cheapest, but incredibly reliable.
Best for: People who value service and may want a mutual insurer over a big corporation.
8. State Farm
Average Full Coverage: $2,167/year
Minimum Coverage: $618/year (for 30-year-old driver)
Why it’s on the list:
America’s largest auto insurer. While not always the cheapest, State Farm rewards loyalty, safe driving, and bundling with major discounts. Their massive agent network also makes support easy.
Best for: Families and long-term customers who prefer face-to-face service.
7. Progressive
Average Full Coverage: $1,960/year
Minimum Coverage: $649/year
Why it’s on the list:
Known for creative tools like “Name Your Price” and “Snapshot” usage-based pricing, Progressive remains affordable for a wide range of drivers.
Best for: Tech-savvy drivers and those with clean or improving driving histories.
6. Auto-Owners Insurance
Average Full Coverage: $1,553/year
Minimum Coverage: $337/year
Why it’s on the list:
Sold only through independent agents, Auto-Owners offers personalized service and consistently lower-than-average rates, especially in Midwest and Southern states.
Best for: Drivers who want local service with strong regional value.
5. Erie Insurance
Average Full Coverage: $1,866/year
Minimum Coverage: $437/year
Why it’s on the list:
Erie offers extremely competitive pricing for both full and minimum coverage in the states it serves. Bonus: first-accident forgiveness and Rate Lock to avoid increases.
Best for: Drivers in Pennsylvania, Ohio, and nearby states who want peace of mind and low rates.
4. GEICO
Average Full Coverage: $1,849/year
Minimum Coverage: $494/year
Why it’s on the list:
With national availability and aggressive online pricing, GEICO is often the go-to company for budget-conscious drivers. Its app and quote process are top-tier.
Best for: Tech-savvy and first-time car owners looking for quick, easy, and cheap insurance.
3. Travelers Insurance
Average Full Coverage: $1,597/year
Minimum Coverage: $664/year
Why it’s on the list:
One of the oldest and most trusted names in insurance, Travelers offers competitive rates, especially when bundling home and auto. Their policies are flexible and available in most states.
Best for: Established drivers and homeowners looking for solid discounts.
2. Nationwide
Average Full Coverage: $1,452/year
Minimum Coverage: $751/year
Why it’s on the list:
Nationwide lives up to its slogan—“on your side”—with consistently cheap premiums, generous bundling options, and accident forgiveness. They also offer vanishing deductibles.
Best for: Drivers who want great value with lots of discount opportunities.
1. USAA – Best Overall (If You Qualify)
Average Full Coverage: $1,407/year
Minimum Coverage: $417/year
Why it’s #1:
USAA is almost always the cheapest auto insurance company in America, according to Forbes and AutoInsurance.com. But it’s only available to military members, veterans, and their families. Their customer service and claims handling are second to none.
Best for: Military families—there’s simply no better value.
Quick Recap Table
| Rank | Company | Avg. Full Coverage | Eligibility |
|---|---|---|---|
| 1 | USAA | $1,407 | Military/Veterans |
| 2 | Nationwide | $1,452 | Everyone |
| 3 | Travelers | $1,597 | Everyone |
| 4 | GEICO | $1,849 | Everyone |
| 5 | Erie | $1,866 | Regional |
| 6 | Auto-Owners | $1,553 | Regional |
| 7 | Progressive | $1,960 | Everyone |
| 8 | State Farm | $2,167 | Everyone |
| 9 | Amica | $1,481 | Everyone |
| 10 | Allstate | $2,584 | Everyone |
Final Tips to Get Cheaper Insurance
- Compare quotes annually (never auto-renew blindly).
- Increase your deductible for lower monthly rates.
- Bundle policies (home + auto).
- Use telematics apps like GEICO DriveEasy or Progressive Snapshot.
- Ask about discounts: safe driver, good student, military, low mileage.