This Is the Cheapest Car Insurance Company for 2021

Happy female driver
Photo by tommaso79 / Shutterstock.com

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:

  1. USAA: $875
  2. Geico: $1,099
  3. State Farm: $1,168
  4. Travelers: $1,250
  5. Nationwide: $1,284
  6. Progressive: $1,334
  7. American Family: $1,451
  8. Farmers: $1,634
  9. 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.

If gathering quotes from multiple insurance companies sounds like a nightmare, use a service like The Zebra or Gabi. Such services gather quotes for you so you can pick the best rate.

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.”

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
What Brand Makes the Best Rechargeable AA Batteries?
What Brand Makes the Best Rechargeable AA Batteries?

The best battery depends on what you need it for and how big your budget is. Here’s how to find the cheapest brand that will do the job you need.

8 Key Steps to Planning for Retirement as a Couple
8 Key Steps to Planning for Retirement as a Couple

Ready for retirement? Not so fast. You might be surprised at some of the issues that come up for couples when they plan.

9 Things You Should Never Pay For With a Debit Card
9 Things You Should Never Pay For With a Debit Card

Use your debit card for one of these expenses, and you could risk your bank account balance, your credit score or even identity fraud.

12 Tech Gadgets That Make Daily Life Easier
12 Tech Gadgets That Make Daily Life Easier

These products on Amazon will ease worries and simplify your routine.

5 Reasons You Should Claim Social Security ASAP
5 Reasons You Should Claim Social Security ASAP

Experts often recommend postponing claiming your Social Security retirement benefits. But there are situations in which you should start taking the money sooner.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

How to Buy Gas At Costco Without a Membership
How to Buy Gas At Costco Without a Membership

The warehouse club often has some of the cheapest gas in town. Here’s how you can get it as a nonmember.

10 Things to Stop Buying If You Want a Clutter-Free Home
10 Things to Stop Buying If You Want a Clutter-Free Home

If you like to keep things simple, avoid these purchases.

If You Find This Thrift Shopping, Buy It
If You Find This Thrift Shopping, Buy It

Vacuums from this brand can last a half-century, if not longer — and they’re hot on the resale market.

A Simple Way to Silence Robocalls Today
A Simple Way to Silence Robocalls Today

A few steps can keep your phone from ringing when a spammer calls.

If You Find This Thrift Shopping, Buy It
If You Find This Thrift Shopping, Buy It

This iconic dinnerware is prized for everyday use as well as reselling for profit.

This Company Makes the Best Tires in America
This Company Makes the Best Tires in America

Driver satisfaction with tires is at an all-time high, but one brand stands out.

This Health Issue Can Hint at Dementia Years in Advance
This Health Issue Can Hint at Dementia Years in Advance

One type of pain is especially associated with cognitive decline.

Can I Switch to Spousal Social Security Benefits When My Ex Dies?
Can I Switch to Spousal Social Security Benefits When My Ex Dies?

Knowing when to claim can help you maximize benefits.

Medicare Will Not Cover These 6 Medical Costs
Medicare Will Not Cover These 6 Medical Costs

Don’t let these health care expenses catch you off guard in retirement.

8 Things You Should Always Buy on Amazon
8 Things You Should Always Buy on Amazon

The giant retailer shines when it comes to these things, from basics to hard-to-find specialty goods.

Beware This Hidden Ingredient in Rotisserie Chicken
Beware This Hidden Ingredient in Rotisserie Chicken

Something foul may lurk in those delicious, ready-to-eat birds.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

5 Ways to Fill Your Pantry With Free Food
5 Ways to Fill Your Pantry With Free Food

Anyone can take advantage of these resources.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

6 Reasons You Should Stop Hiding Cash at Home
6 Reasons You Should Stop Hiding Cash at Home

Stashing money around the house is anything but harmless.

12 Deep Discounts Available on Amazon This Friday
12 Deep Discounts Available on Amazon This Friday

These items are steeply discounted — but the deals won’t last long.

5 States With the Worst Health Care for Retirees
5 States With the Worst Health Care for Retirees

All of these states are located in the same region of the nation.

5 Products You Should Never Buy Generic
5 Products You Should Never Buy Generic

Sometimes the brand-name version is clearly superior.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.