The Best Cheap Car Insurance for October 2021

The cheapest car insurance companies

Car insurance premiums are priced to fit each individual driver. Insurance companies evaluate each applicant's driving history, demographic data and other factors to determine the level of risk they present.

The Zebra analyzed rates from popular insurance companies to determine which insurance company provides the best cheap car insurance in 2021.

View average insurance rates from some of America's most popular insurance companies in the table below, or continue reading to see rates from more large insurance companies.

Cheapest car insurance companies after a ticket

Car insurance rate increases may occur after a driver receives a ticket.

Included in the below insurance price analysis are violations with major insurance implications:

• DUI/DWI
• Driving with a suspended license
• Hit-and-run
• Reckless driving

Cheapest insurance companies after a DUI

A DUI can raise a driver's car insurance rates by $80 per month.

Progressive is the most affordable choice after a DUI or DWI offense, while Allstate raises rates by the most after a DUI citation.

Progressive and State Farm assess relatively small penalties against drivers with DUIs, upping rates by less than $50 per month. Progressive's $46-per-month increase is well under the national average rate hike following a DUI conviction.

Cheapest insurance companies after a driving with a suspended license ticket

The average monthly rate increase after a ticket for driving with a suspended license is $75. State Farm is the cheapest company after a citation for driving with a suspended license.

Cheapest insurance companies after a hit-and-run

In most states, a hit-and-run incident is the most costly citation for insurance — even pricier than a DUI. Drivers ticketed for a hit-and-run should consider State Farm, a relative bargain after a citation at $153 per month.

Insurance company	Monthly rate (no hit-and-run)	Monthly rate (after hit-and-run)
Allstate	$168	$333
Farmers	$143	$224
GEICO	$102	$231
Liberty Mutual	$137	$222
Nationwide	$106	$220
Progressive	$107	$176
State Farm	$112	$153
USAA	$94	$191

 

Cheapest insurance companies after reckless driving

The definition of reckless driving varies by state, but regardless of location, it comes with a hefty insurance penalty. On average, a reckless driving charge raises insurance rates by around $75 per month.

Insurance company	Monthly rate (no reckless driving ticket)	Monthly rate (after reckless driving ticket)
Allstate	$168	$324
Farmers	$143	$218
GEICO	$102	$204
Liberty Mutual	$137	$212
Nationwide	$106	$226
Progressive	$107	$169
State Farm	$112	$151
USAA	$94	$140

If you don't qualify for USAA, State Farm is the second-cheapest insurer after a reckless driving citation, at $151 per month. 

Cheapest insurance companies for business drivers

The cheapest company for business-use car insurance is State Farm.

While the majority of drivers use their vehicle for leisure or commuting, using a personal auto policy for business may result in more expensive rates. A business-use policy isn't a commercial auto insurance policy. Rather, it comprises the use of a car for personal and business purposes. 

Most insurance companies have their own versions of these rules, which may cover delivery drivers or salespeople who travel by car.

If you're a driver for Uber or Lyft and would like to see this can impact what you pay for car insurance, consult the below resources:

• Car insurance coverage for Uber drivers
• Car insurance coverage for Lyft drivers

Cheapest car insurance companies for low-mileage drivers

Mileage is an influential factor in car insurance pricing. For instance, low-mileage drivers in California save 32% on insurance premiums compared to high-mileage drivers.

High-mileage drivers should consider Nationwide, while less-frequent drivers should look into a policy with GEICO. 

CAR INSURANCE RATES BY MILEAGE TIER

Additional information

For more on annual mileage and car insurance, including more information on the companies offering the cheapest rates for low-mileage customers, consult this guide to low-mileage auto insurance.

Safe driving discount

This discount entails taking a defensive driving course and presenting your insurance company with proof — like a receipt or transcript. The logic behind this discount is clear: a safer driver is a cheaper client because they're less likely to file a claim. Consult our guide to auto insurance for good drivers to learn more about how to save.

Equipment discount

If your car comes with an anti-theft device or a service like LoJack, your insurance company may provide a discount. The discounts tend to be smaller than a multi-policy or defensive driver discount. In our survey, we found systems such as night vision devices, park-assist devices and rearview cameras did not earn discounts.

AVERAGE INSURANCE SAVINGS WITH SAFETY DEVICES

Good driver discount

This discount is available to drivers with clean driving records. Good driver discounts can be added when your Motor Vehicle Report (MVR) or CLUE report is pulled at the inception of your auto policy. If you're convinced your record is clean (no at-fault accidents or violations) and you aren't receiving a discount, speak with your insurance company and inquire about a discount. By keeping a clean slate, you can earn a discount of approximately 10%.

Military discount

Many companies offer discounts for active or former military members and their families. The amount and qualifications differ per company but you should ask if your current company has this discount.

Multi-car discount

A multi-car discount involves insuring more than one car with a single insurance company. Typically, the discount is automatically added either at policy inception — if two cars were originally added — or when you add the second vehicle to the policy.

Preferred payment discount

This discount refers to the manner in which you make your insurance payments and has tiers, typically. For example, if you pay your entire premium upfront, you are often given a discount: the highest preferred payment discount. A paid-in-full discount can save you $73 per year on your auto policy.

If you set up automatic payments from a bank account, you can often receive an Electronic Funds Transfer (EFT) discount. An EFT discount can lead to savings of about $21 annually. If you are able to pay up front or through automatic payments, this is a great way to get cheaper car insurance.

Occupation discount

Some insurance companies will offer a discount based on your occupation. Statistically, some occupations — teachers, physicians, or police officers — are less likely to file a claim and thus pose less risk. Because of this, some insurance companies return the savings back to you. Usually, they will require proof of your profession, such as a photocopy of your professional degree or certification.

For more information on cheap car insurance and profession-based discounts, see our guides:

• Doctors
• First responders
• Teachers
• Government employees

Good student discount

If you're responsible for insuring a young driver, you understand how expensive this can be. Given the number of claims they cause, teen drivers are considerable risks for insurance companies. If your son or daughter has the grades — typically a GPA of 3.0 or better — speak with your insurance company about a good student discount. Normally, they’ll ask for a transcript every policy period as proof.

Cheap car insurance near you: comparing rates by state

Because each driver, location and situation differs, it's hard to say which insurance company has the cheapest rates.

To find out which company offers the best cheap car insurance for you, compare auto insurance options every six months from multiple insurance companies.

Find cheap car insurance by state: