Are you looking for the cheapest car insurance companies in the US? Still looking for the best car insurance company that can fulfill the needs in a desired and less fussy way. Let’s explore the list of the top 10 cheapest car insurance companies in the USA. The top 10 car insurance suppliers in the US persevere to manage the market, supporting more than three-quarters (approximately 77%) of the nation’s automobile policies. The outline is corresponding to slightly more than $213.1 billion in everlasting written payments, a 14.5% enhancement from the previous year.
Car Insurance Market in USA
The Car Insurance market worldwide is estimated to observe significant development in the coming years. According to projections, the market size, calculated by gross written premium, is expected to reach a confounding US$1.96 trillion by 2024. This shows a substantial market latent for insurers working in this section.
In terms of average expenses per capita, individuals are projected to spend roughly US$253.20 on the Car Insurance market in 2024. This number highlights the economic commitment that people are eager to make to guard their vehicles against probable risks and accidents.
In addition, the market is forecasted to experience a stable annual growth rate, with a Compound Yearly Growth Rate (CYGR) of 2.34% between 2024 and 2028. This development route is projected to drive the market quantity to achieve an impressive US$2.15 trillion by 2028. When contrasting the international market, it is remarkable that the United States is projected to create the highest gross printed premium.
The predictable figure for 2024 is huge, around US$1,338.0 billion, demonstrating the noteworthy size and importance of the Car Insurance market in the United States.
On the whole, the Car market is perched for substantial growth universally, with the United States leading the means in terms of gross written payment.
List of the top 10 cheapest car insurance companies in USA
Here is the list of the top 10 cheapest car insurance companies in USA:
| S.No. | Car Insurance Supplier | National Market Share | AM Best Financial Strength Rating |
| 1 | USAA | 5.9 | A++ |
| 2 | Nationwide | 2 | A |
| 3 | Travelers | 2.1 | A+++ |
| 4 | Allstate | 10.8 | A+ |
| 5 | Progressive | 13.7 | A+ |
| 6 | Geico | 13.8 | A+++ |
| 7 | State Farm | 16.8 | A++ |
| 8 | Liberty Mutual | 4.9 | A |
| 9 | Farmers | 4.6 | A |
| 10 | American Family | 2.1 | A |
#1. USAA Car Insurance
Founded: 1922 | Headquarters: San Antonio, Texas | AM Best financial strength rating: A++ | Better Business Bureau (BBB) rating: NR | Market share: 5.9%
USAA is the No.1 car insurance company in the USA, with a 5.92% share of the auto insurance market. The company is one of the cheapest car insurance companies in the US. It positions itself in a number of areas, including opinion from clients on its consumer’s service and claims handling act, its amount of accessible concessions, and the detail that it’s a top-rated insurer for elderly drivers.
In addition, USAA has the lowest average yearly rate in general, and comes in fine below the national average in several specific driver groups. However, USAA auto insurance is only accessible to military members, veterans and their family units. The provider’s standard costs are a striking 39% cheaper than the nationwide average for full-coverage auto insurance.
Claim Settlement:
The USSA’s claim settlement rate is 4.1/5. The simple claims may take an hour, while more complex claims may take weeks, but others take several months.
Costs:
The company’s Average Monthly Minimum cost is Estimated as $126 approx and the average annual full coverage is generally Estimated as $1,512 approx.
Accessibility:
Car insurance state accessibility: Nationwide offers car insurance in 46 states and Washington, D.C. Coverage and discounts may differ by state.
#2. Nationwide Car Insurance
Founded: 1925 | Headquarters: Columbus, Ohio | AM Best financial strength rating: A | Better Business Bureau (BBB) rating: A+ | Market share: 2%
Nationwide has reasonable auto insurance for the majority driver types. It has the cheapest car insurance for youths on a parent’s plan and cheapest car insurance for elders. In addition to inexpensive car insurance rates, Nationwide has a small number of consumer grievances to state insurance branches. It offers a mixture of treatment options and features, together with usage-based assurance, accident absolution and breach insurance.
Claim Settlement:
The company’s claim settlement rate is 4.1 /5. The duration of time it takes for Nationwide to reimburse a payment will differ depending on the facts of your condition. This may take weeks, months, or even years of discussions
Costs:
The Average Monthly Cost is Estimated as $119 approx. and the Average Annual Cost is Estimated as $1,143 approx.
Accessibility:
Car insurance state accessibility: Nationwide offers car insurance in 46 states and Washington, D.C. Coverage and discounts may differ by state.
#3. Travelers Car Insurance
Founded: 1925 | Headquarters: New York City | AM Best financial strength rating: A+++ | Better Business Bureau (BBB) rating: A | Market share: 2.1%
‘Travelers’ has economical car insurance for youthful drivers aged 18 to 25. Its charges for this age faction are the third-lowest amongst the other insurers. It makes ‘Travelers’ a good alternative for young drivers. For the majority drivers, Travelers maintains stumpy rates for a variety of ages and driving backdrops as well.
Its concession for fresh vehicles (less than three years older) and amalgam/electric vehicles can in addition help you scratch down on the price of car insurance. Travelers is among the more reasonable providers out there with rates 20% lower than the nationwide average for full reporting.
Claim Settlement:
The company’s claim rate is 4.0/5. Simple claims may be resolved within a few weeks, whereas more difficult cases may acquire longer time to settle a claim.
Costs:
The company’s Average Monthly Cost is Estimated as $113 approx. and the Average Annual Cost is Estimated as $1,595 approx.
Accessibility:
Car insurance state accessibility: Nationwide offers car insurance in 46 states and Washington, D.C. Coverage and discounts may differ by state.
#4. Allstate Car Insurance
Founded: 1931 | Headquarters: Northbrook, Illinois | AM Best financial strength rating: A+ | Better Business Bureau (BBB) rating: A+ | Market share: 10.8%
One of the major car insurance suppliers in the US, Allstate offers a variety of helpful coverage alternatives not usually accessible from many of its business competitors, like: accident exculpation, vanishing deductible, gap cover, new car substitute, rideshare cover (in the majority states).
Allstate is an excellent insurance company if you gaze for elastic coverage options and concession programs. Though their general costs are much higher than standards, the company makes up for it in coverage alternatives and concession course contributions.
Claim Settlement:
The company’s claim rate is 4.3/ 5. The claim time is within 48-hours of adjuster duty, although timeframes may perhaps differ based on the loss’s conditions.
Costs:
The company’s Average Monthly Cost is Estimated as $217 approx. and the Average Annual Cost is Estimated as $2,598 approx.
Accessibility:
Car insurance state accessibility: Allstate offers coverage in all the 50 states, in addition to the District of Columbia, and underwrites more than 176 million insurance plans.
#5. Progressive Car Insurance
Founded: 1937 | Headquarters: Mayfield Village, Ohio | AM Best financial strength rating: A | Better Business Bureau (BBB) rating: A+ | Market share: 13.7%
Progressive is the third-largest car insurance company in the state, accounting for 13.76% of all insurance plans obtained. It has a sturdy BBB rating and AM Best economic strength score, enlightening its ability to meet constant insurance responsibilities. The company is termed as cheapest car insurance companies in the US.
Progressive sits at the central point of the group when it comes to yearly premiums, but policyholders can contact a large range of discounts to slit rates. These comprise the picture safe driver allowance, which personalizes your rate based on your lashing performance through a mobile app.
Claim Settlement:
The company’s claim rate is 4.3/ 5. Once your banking information is proposed and the routing number is established legal, your bank account evidence will be permitted and ready to accept live payments instantly. Payments take roughly 3 business days to arrive at your account.
Costs:
The Average Monthly Cost is Estimated as $169 approx. and theAverage Annual Cost is Estimated as $2,030 approx.
Accessibility:
Car insurance state accessibility: Progressive offers auto insurance coverage in all 50 states of the US.
#6. Geico Car Insurance
Founded: 1936 | Headquarters: Chevy Chase, Maryland | AM Best financial strength rating: A+++ | Better Business Bureau (BBB) rating: A+ | Market share: 13.8%
GEICO is known for presenting competitive rates not just for drivers with spotless evidence, but in addition for motorists who have meager credit, a speeding ticket, or those wedged driving uninsured. It is an appealing expensive alternative, but, for drivers with a DUI trace.
GEICO policyholders can in addition access a variety of valuable added features, counting accident clemency and a usage-based insurance plan that can help diminish premiums for secure drivers.It accounts for 14.05% of all auto insurance premiums traded.
Claim Settlement:
The company’s claim rate is 4.2/ 5. Your claim may be completed in as little as 48 hours.
Costs:
The Average Monthly Cost is Estimated as $133 approx. and the Average Annual Cost is Estimated as $1,596 approx.
Accessibility:
Car insurance state accessibility:GEICO is truly a state company, providing coverage for drivers in all 50 states and the District of Columbia.
#7. State Farm Car Insurance
Founded: 1922 | Headquarters: Bloomington, Illinois | AM Best financial strength rating: A++ | Better Business Bureau (BBB) rating: C | Market share: 16.8%
State Farm is the major car insurance supplier in the US, accounting for approximately 17% of the general market. The figure is corresponding to over $8 billion more in straight written premiums contrasted to the next-ranked insurer. State Farm’s system of more than 19,200 local agents in addition means that drivers can simply access its documents anywhere they are in the state.
State Farm is recognized for presenting rates that are under the business standard, not considering the demography. This comprises elders, policyholders with named teens, and constant drivers with past mishaps and speeding contraventions.
Claim Settlement:
The company’s claim rate is 4.2/ 5. Some cases wrap up swiftly within weeks, others complex cases may need a longer timeframe, straddling three to six months.
Costs:
The Average Monthly Cost is Estimated as $138 approx. and the Average Annual Cost Estimated as $1,657 approx.
Accessibility:
Car insurance state accessibility: The supplier offers auto insurance coverage in all 50 states, but it no longer sells fresh policies in Massachusetts or Rhode Island.
#8. Liberty Mutual Car Insurance
Founded: 2001 | Headquarters: Boston, Massachusetts | AM Best financial strength rating: A | Better Business Bureau (BBB) rating: A- | Market share: 4.9%
Liberty Mutual is a big alternative for drivers who favor an online practice over functioning with an insurance means. Amongst the profits of choosing the common insurer as your car insurance supplier is that you are given entrance to its consumer friendly website, along with its wide-ranging collection of jargon-liberated resources concerning your coverage.
You can also download the Liberty Mutual mobile app, where you can supervise your plan digitally. These are amongst the main motives why the group has the second-highest shopping practice score of all huge insurers marked in the record. The insurer makes up for this by presenting customers a broad range of coverage alternatives and concessions, which comprise a declining deductible for each year devoid of a claim.
Claim Settlement:
The company’s claim rate is 3.9/ 5. Liberty Corporate generally finalizes the compensation within 15 working days.
Costs:
The Average Monthly Cost is Estimated as $139 approx. and the Average Annual Cost is Estimated as $1,619 approx.
Accessibility:
Car insurance state accessibility: The supplier offers auto insurance coverage in 27 states and economies around the world excluding California.
#9. Farmers Car Insurance
Founded: 1928 | Headquarters: Woodland Hills, California | AM Best financial strength rating: A | Better Business Bureau (BBB) rating: B+ | Market share: 4.6%
Yearly premiums for Farmers’ auto insurance policies lean to be on the lofty side contrasted to those of the additional top car insurance suppliers in the US. Rates are even extra costly for young and elderly drivers. Farmers Insurance offers a variety of coverage that may verify precious after an accident, including accident clemency and new car substitute. A complete coverage car insurance plan from Farmers costs $3,169 yearly while a least liability coverage policy will charge around $1,153 on average.
Claim Settlement:
The company’s claim rate is 4.2/ 5. The time limits can be just 7-10 days or 20-30 days, depending on the state.
Costs:
The Average Monthly Cost is Estimated as $ 135 approx. and the Average Annual Cost is Estimated as $1,619 approx.
Accessibility:
Car insurance state accessibility:The supplier offers auto insurance coverage in all 50 states, but has declared its decision to discontinue writing insurance policies in California.
#10. American Family Car Insurance
Founded: 1927 | Headquarters: Madison, Wisconsin | AM Best financial strength rating: A | Better Business Bureau (BBB) rating: A | Market share: 2.1%
American Family has on top of average scores in alleged fulfillment and shopping experience. Compared to numerous industry competitors, it also brags a more widespread portfolio, which comprise OEM coverage, rideshare assurance, retreating deductibles, and accident clemency. American Family offers a wide variety of concessions like its KND (KnowYourDrive) course, which decreases the rates of secure drivers. It also offers low standard rates for young and high-risk drivers.
Claim Settlement:
The company’s claim settlement rate is 4.2/ 5. The claim process will generally take 30-45 days to complete.
Costs:
The Average Monthly Cost is Estimated as $ 154 approx. and the Average Annual Cost is Estimated as $1,851 approx.
Accessibility:
Car insurance state accessibility: American Family Insurance is available only in 19 states of the US.
FAQs:
Q1. Is car insurance mandatory in the USA?
Ans. Car insurance laws are made and enforced at the various state levels. 49 of the 50 states in America need all drivers to carry an active car insurance policy. New Hampshire is the only state in which it is not mandatory to have car insurance, as long as you can show proof of financial responsibility.
Q2. Which is the cheapest auto insurance in the United States?
Ans. The cheapest car insurance companies in the United States are:
- Cheapest for military families: USAA.
- Cheapest from a large company: GEICO.
- Cheapest for good drivers: Progressive., etc.
Q3. How much do most Americans on an average give for car insurance?
Ans. The average cost of whole coverage insurance is approximately $2,010 per year or $169 per month, whereas the lowest burden coverage averages about $628 per year or $53 per month.
Q4. Which is the leading auto insurance company in the US?
Ans. For auto policies, State Farm is the leading insurance company in the US, with the biggest market share (16.9 percent) and over $46.6 million in direct premiums written in 2022.
Q5. Why is US car insurance so costly?
Ans. Several factors are there to drive up the cost of car insurance, comprising persistent issues from the pandemic. Vehicles are more costly to replace, with inflation driving up the cost of computer components and other parts needed for repairs.