Which companies offer the absolute cheapest car insurance rates?

Many variables go into calculating your car insurance premium and the least expensive type of auto insurance is liability coverage. Use comparison shopping to find cheap car insurance rates today.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: May 26, 2021

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Here's what you need to know...

  • Many variables go into calculating your car insurance premium
  • Your driving record can both negatively and positively impact your car insurance quote
  • The least expensive type of auto insurance is liability coverage

In a day and age of fierce competition among car insurance companies, asking who are the absolute cheapest automobile insurance companies is like asking the weatherman to predict the weather with absolute accuracy. It just can’t be done.

There are too many variables that go into calculating car insurance premiums to say that one company is always cheaper than another. The more information you can provide for the initial quote the more accurate that quote will be.

Enter your zip code in our FREE quote tool to see online car insurance quotes from providers in your area!

Can you get cheap car insurance if you don’t have any money?

Finding the absolute cheapest car insurance companies requires knowing what it is you’re looking for. When you’re searching for quotes, you need to be specific about the type of car you drive, the amount of miles you put on it annually, and exactly the kind of coverage you want.

In most instances, car insurance providers require drivers to make a down payment before a policy is written. However, some companies will extend coverage without receiving any monetary payment.

You can easily find these insurance providers by looking in the phone book or searching for car insurance companies that are locally based on sites like Super Pages.

You can also find car insurance companies that do not require any type of advance payment on the web. These companies may run your credit score or charge a considerable amount of money when your first auto coverage payment comes due.

Remember that making a large down payment or even paying off your entire policy in advance can give you access to a discount, so no-down-payment car insurance providers might not give you the best overall deal.

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What are the least expensive auto insurance policies you can buy?

Regardless of the type of vehicle that you drive, liability coverage is the cheapest coverage that you can purchase. If your car is currently being financed, it is unlikely that you will be able to get liability-only coverage.

Because liability car insurance only pays for a certain amount of damage if you cause an accident, buying this type of coverage is a bit of a gamble.

Not only will you have to pay for your own repairs, but you could also be out a lot more money if you total the other vehicle(s) in the accident.

If you do choose to purchase a liability-only car insurance policy, you may want to add a few other types of coverage in order to better protect yourself.

Bodily harm protection helps to reduce your exposure if you get into a serious accident. Auto insurance policies don’t just cover vehicle damage. They also protect drivers from being sued when serious injuries or death happens as a result of a major collision.

Why did my friend get a different quote?

Often, drivers tend to ask for quotes from the same companies their friends and families use, but often, these individuals find that the price they’re quoted is substantially different than that of one of their friends.

Knowing why this is this happened requires a basic understanding of how insurance premiums are calculated. There are probably circumstances in your friend’s life that differ significantly from yours and thus, afford him a different rate.

Among all the factors that go into determining how much you’ll pay, the most important is your driving history. Car insurance is based on a ratio of risk to reward for the insurance company.

If you have a poor track record that includes speeding tickets, accidents, and more serious issues like DWI, an insurance company is at a higher risk for having to pay a claim on your behalf. They are not likely to bear that risk alone, so they pass it on to you in the form of higher premiums for high-risk drivers.

Why do I get different quotes from different companies?

Like any business, insurance companies exist to make a profit for their owners. Individual insurance companies have their financial goals. All of these things are reflected in the way they calculate premiums.

Furthermore, larger insurance companies that cover drivers in all 50 states have the advantage of numbers, making it easier for them to provide lower rates.

Also part of the equation is whether or not you purchase your insurance directly from the company that provides it or through a local agent. If you receive multiple quotes from both types of companies, you’re likely to see higher rates among those who use local agents.

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Why is my insurance company no longer the absolute cheapest?

You may find yourself in a position where your current insurance company was the absolute cheapest choice when you first got your policy years ago, but now that’s no longer the case.

You may also find that your actions as a driver over the last few years have contributed to the issue. If you’ve had several accidents and tickets while with your current insurance provider, your rates are going to go up accordingly.

This is especially true in terms of accidents because your insurance provider has to pay claims. You may then find a cheaper rate with another company because they have not paid claims on your behalf.

Most important is keeping your car insurance rates low after the fact. We do this by driving safely and legally at all times and avoiding tickets and accidents. The longer you can go without any blemishes on your record, the less you’ll pay for your car insurance.

Your search for the absolute cheapest car insurance rates begins when you enter your zip code below!


  1. https://www.superpages.com
  2. https://www.allstate.com/tools-and-resources/car-insurance/liability-car-insurance-cover.aspx
  3. https://www.libertymutual.com/auto/car-insurance-coverage/bodily-injury-liability
  4. https://www.investopedia.com/ask/answers/09/calculating-premium.asp
  5. https://www.geico.com/claims/claimsprocess/

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