Cheapest Car Insurance Companies of February 2026

Standout benefits: Optional add-ons like accident forgiveness, roadside assistance and coverage for mechanical issues after the manufacturer’s warranty expires. 

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.

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.

Standout benefits: State Farm offers rideshare insurance and has robust travel expense coverage if you’re stranded more than 50 miles from home.

Standout benefits: Amica is a mutual company and drivers in some states are eligible for dividends.

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.

Rates vary significantly, though, and are typically higher in no-fault states such as New York and Michigan.

• 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.
• Cars are more expensive to repair: As car technology has advanced, repairing or replacing parts has become more costly.
• Accidents are on the rise: 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.

• 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.

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

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