Cheapest Car Insurance in 2026: Companies, States and Driver Types

What cheap car insurance costs in 2026

Two big data sources put national averages in a similar range. CarInsurance.com's August 2026 analysis found an average of $2,578 a year ($215 a month) for full coverage with 100/300/100 liability limits and $500 deductibles. State-minimum coverage averaged $738 a year. Insurify's October 2026 report, based on its own quote data, put full coverage at $187 a month and liability-only at $99 a month.

The gap between minimum and full coverage is about $1,840 a year in CarInsurance.com's data. Minimum coverage is the cheapest legal option, but it pays only for damage you cause to others, up to low limits. It doesn't fix your own car, and a serious crash can leave you owing more than the policy pays. Our guide to the best auto insurance companies covers what to look for beyond price.

Cheapest car insurance companies by driver type

CarInsurance.com compared major insurers for the same sample drivers. Here are the lowest averages it found in each category.

Source: CarInsurance.com, "Cheapest car insurance" (updated Sept. 18, 2026), Quadrant Information Services data. Full coverage = 100/300/100 liability with $500 deductibles.

USAA isn't in the table above because it serves only military members, veterans and their eligible families. If you qualify, it's worth a quote: its averages in CarInsurance.com's company data were $406 a year for state minimum and $1,628 for full coverage, the lowest of the insurers listed.

One more finding matters: regional insurers were the cheapest option for minimum and liability-only coverage in roughly half of all states. A national brand you've heard of isn't always the low-cost choice where you live.

Average full-coverage rates by insurer

Source: CarInsurance.com, "How much is car insurance?" (updated Aug. 5, 2026). 40-year-old drivers, clean record. *USAA eligibility limited to military community.

Cheapest and most expensive states

Where you live can matter more than which company you pick. The two studies use different methods, so their exact numbers differ, but both show the same pattern: northern New England and parts of the Mountain West are cheap, while Louisiana, Michigan, Nevada, Florida and the Mid-Atlantic are expensive.

Source: CarInsurance.com (updated Aug. 5, 2026), Quadrant Information Services data.

Insurify's October 2026 quote data ranks Maryland ($302 a month for full coverage) and Rhode Island ($298) as most expensive, followed by Delaware, Nevada and New Jersey. New Hampshire ($85), Wyoming ($94), Alaska ($97), Idaho ($107) and Iowa ($111) were cheapest. That puts the Maryland average at roughly 3.6 times New Hampshire's. Insurify also projects increases in 32 states by the end of 2026, led by Connecticut (4%) and West Virginia (3%), with small decreases expected in New Mexico, Arkansas, Minnesota and Colorado. Our article on why car insurance rates changed explains what is driving these moves.

Cheapest options by driver profile

Teens and young drivers

Age has the biggest single effect on price. In CarInsurance.com's data, an 18-year-old man paid $7,946 a year for full coverage and an 18-year-old woman $7,047. By age 25 that dropped to about $3,000, and by 40 to about $2,570. Rates for an 18-year-old man are about 3.1 times those of a 40-year-old.

• Share a policy. Insurify's 2026 teen-driver data found that adding a teen to a parent's policy cost about 24% less than a separate policy, roughly $1,079 a year less. Adding a teen raised a family's premium by about $3,435 a year on average, versus about $4,514 for a teen's own full-coverage policy. Even so, a parent's premium can rise by about 90% when a teen joins.
• Claim good student discounts. Insurify lists up to 25% at State Farm, up to 10% at USAA and up to 5% at Progressive. GEICO lists up to 15% on certain coverages.
• Ask about driver education and away-at-school discounts. Some insurers take about 5% off for an approved driver education course, and students who live away from home without a car may qualify for a separate discount.
• Consider telematics carefully. Safe driving can earn a discount, but Insurify notes that speeding or hard braking can raise rates with some programs.
• Pick an inexpensive car. An older, lower-value car costs less to insure, and you may decide collision coverage isn't worth it.

After an accident or ticket

One at-fault accident raised the average full-coverage rate 60%, to $4,129 a year. A single speeding ticket added 38% ($3,568), and two tickets added 63% ($4,196). Two at-fault accidents with more than $2,000 in property damage pushed the average to $6,075, up 136%. Travelers was cheapest in the study after an accident ($2,823) and after a ticket ($2,801), but your own results depend on how each insurer weighs violations in your state.

After a DUI

A first DUI raised the average rate 92%, to $4,959; a second DUI raised it 222%, to $8,307. Many drivers convicted of DUI must also have an SR-22. GEICO explains that an SR-22 is not insurance itself but a form your insurer files with the state to prove you carry the required minimum liability coverage. If your policy is canceled while an SR-22 is required, the insurer must notify the state. Florida and Virginia use a similar form, the FR-44, which requires higher limits. If you need one, confirm when you get quotes that the insurer will file it for you.

Poor credit

Bad credit more than doubled the average rate in CarInsurance.com's data: $5,478 a year, 113% above the baseline. Fair credit added 27%. GEICO had the lowest poor-credit average among the insurers studied ($3,555). Seven states restrict credit-based insurance scores for auto policies: California, Hawaii, Maryland, Massachusetts, Michigan, Oregon and Utah. California, Hawaii and Massachusetts bar their use in setting rates. Elsewhere, improving your credit can lower your premium over time. Our guide to how credit scores work explains what moves your score.

Ways to cut your car insurance cost

1. Compare at least three quotes. CarInsurance.com found a median gap of $1,894 a year between the cheapest and most expensive insurer in a state for the same driver. Include a regional insurer.
2. Raise your deductible. Going from $250 to $1,000 saved about $511 a year on average nationally. Only do this if you have the cash to cover the higher amount; an emergency fund helps.
3. Try telematics. State Farm's Drive Safe & Save gives 10% for enrolling and up to 30% based on driving (not offered in California, Massachusetts or Rhode Island). GEICO's DriveEasy typically saves 5%–15%. Your discount can shrink if the app records risky driving.
4. Stack discounts. Ask about multi-vehicle (GEICO lists up to 25%), clean record (up to 22% after an accident-free year at GEICO), good student, multi-policy, paid-in-full, paperless and safety-feature discounts.
5. Drive less, pay less. If you drive under 10,000 miles a year, ask about low-mileage or pay-per-mile programs.
6. Review coverage on older cars. If a car is worth little, the cost of collision and comprehensive may approach what you could ever collect.
7. Re-shop at renewal and after life changes such as moving, marriage or a ticket falling off your record.

For more ways to trim recurring bills, see our list of ways to save money.

Frequently asked questions