For the third straight year, USAA is the cheapest auto insurance company in America, according to U.S. News & World Report’s 2021 ranking.
USAA policies average $875 annually, substantially below the national average of $1,320. According to U.S. News:
“USAA has the lowest premiums for nearly every driver demographic we analyzed, and even when it wasn’t the absolute cheapest, it wasn’t much more expensive than its cheaper rival.”
Of course, not everyone can get coverage through USAA, which sells policies to members of the military and their families.
If you do not have such a connection, your best bet might be Geico, with annual premiums averaging $1,099.
In compiling its rankings, U.S. News joined forces with Quadrant Information Services to analyze a report of insurance rates in all 50 states from most of the largest national car insurance companies. U.S. News notes that not every company operates in all 50 states.
The nine cheapest car insurance companies and their average annual rates, according to U.S. News, are:
- USAA: $875
- Geico: $1,099
- State Farm: $1,168
- Travelers: $1,250
- Nationwide: $1,284
- Progressive: $1,334
- American Family: $1,451
- Farmers: $1,634
- Allstate: $1,787
Before you rush to buy any of these policies, it’s important to note that car insurance companies use a wide range of personalized data when setting rates, as U.S. News notes. So, the rates above might not reflect what you will be quoted.
Based on age, U.S. News found that the range of average annual costs is as follows:
- 25-year-old men: $1,554 (highest)
- 25-year-old women: $1,487 (second-highest)
- 60-year-old men: $1,182 (second-lowest)
- 60-year-old women: $1,149 (lowest)
Your driving history also makes a big difference in terms of how much you will be charged. Drivers with a clean record can expect to pay $1,320 annually, on average. By contrast, drivers with a DUI pay an average annual rate of $2,111.
Finding the best car insurance rates
As we mentioned, a lot of factors can impact how much you pay for auto insurance. For that reason, it pays to shop around. Each insurance company has its own formula for setting rates, so chances are good that by comparing quotes, you’ll find the best deal.
Money Talks News founder Stacy Johnson tried Gabi and found it worth his time. He wrote in “How I Found $546 in Car Insurance Savings in Under 10 Minutes“:
“I’m currently insuring two cars with USAA at a combined cost of about $2,400. Gabi said Progressive could give me the same coverage for 22% less, saving me $546. All I had to do is give Gabi the go-ahead and my driver’s license number. Then, Gabi would confirm the rate and even do the switching for me.”
To learn more about shopping for car insurance, read “Beware These 7 Common Car Insurance Shopping Mistakes.”