Best Cheap Auto Insurance Companies in 2024

Metromile is, on average, the cheapest auto insurance provider in the country. Its annual cost is only $662, or $55 per month. Part of the reason Metromile can offer such low rates is because its pricing model is based on how much you drive, also known as pay-per-mile insurance. Metromile will track how many miles you drive each month and calculate your premiums based on how many miles you drive. The less you drive, the lower your rates will be.

Pay-Per-Mile Insurance

Metromile specializes in pay-per-mile car insurance, meaning pay-per-mile insurance is the only type of plan you can get with Metromile. If you’re a low-mileage driver, these low-cost plans could be a great option for you.

Metromile will take into account other factors like credit score, driving history, and age to calculate your per-mile cost, but your monthly mileage is the most important factor. If you’re a teen driver or a driver with a bad driving record who doesn’t drive often, Metromile may offer better rates than competitors. Metromile claims you could save as much as $1,000 a year on car insurance if you drive less than 50 miles per week.²

Calculating Your Costs

If you’re still unsure about how pay-per-mile insurance works, here are a couple of examples displaying how Metromile may calculate your premium based on varying monthly miles driven.

Tracking and App-Friendly Features

Metromile bills you by tracking how many miles you drive through its Metromile Pulse device. When we tested the device, it only took us a few minutes to plug it in and activate it. As soon as we saw the red light turn on, we were ready to take it for a short drive to calibrate the GPS system.

From there, Metromile could track where we drove, how far we drove, how fast we drove, and other key driving behaviors that it used to generate our quote. We were able to communicate with a Root representative entirely through the mobile app. If you’re tech-savvy and appreciate managing your account from the comfort of your phone, Metromile could be the choice for you.

Root is our top provider for drivers with safe driving habits and a good driving record. Although Root is the second-cheapest insurance on our list ($829 annually), signing up comes with a few caveats. Root is able to offer great rates because it denies coverage to high-risk drivers, especially high-risk drivers with a bad record.

Learn more about how Root can help keep rates low for safe drivers with a clean driving record.

Cheap Insurance for Safe Drivers

Here’s how much Root’s full coverage may cost safe drivers compared to competitors:

Test-Drive Process

Part of why Root can offer such low rates is its strict vetting process. You must sign up for a test drive and allow Root to track your driving behavior for up to 30 days to get a quote.

Root connects to your smartphone and uses already available features – GPS, accelerometer, and gyroscope – to measure your driving habits across those 30 days. Its tracking system will identify what time of day you’re driving, how many miles you’ve driven, your turn speed, and more. If your driving habits meet its standards, it will approve you and offer you some of the cheapest rates available today.

Safe Driver Discount Model

Root has a unique auto insurance discount model that makes benefiting from savings much easier for customers. While it offers traditional bundling discounts for car and renters insurance, most of the company’s safe-driver discounts will be integrated into your final quote automatically. So rather than having to ask an agent for your eligible discounts or applying for a discount, Root will apply a number of safety discounts to your quote. Drivers with the best driving records and test drive scores will be eligible for the lowest prices.

Teen drivers tend to pay the highest car insurance rates on average because they file more claims, get into more accidents, and receive more tickets than any other age group on average. If you’re a teen driver or the parent of a teen looking for affordable car insurance, State Farm is a great option. Teens pay $3,516 for car insurance with State Farm, which is about 21 percent less than the $4,487 average across all providers.

Cheap Car Insurance Pricing for Teens

Here’s how State Farm’s rates compare to some of its competitors for drivers under the age of 20.

State Farm’s Young Driver Program

State Farm’s Steer Clear Program is a great way for teens and young drivers to improve their driving skills and reduce their car insurance premium. If you or your teen successfully complete the program, you can earn up to 20 percent off on your car insurance.

Steer Clear is a six-month safety driver program that tracks your driver habits and gives you a score based on how well or poorly you’re driving. It comes with five training modules consisting of videos, quizzes, daily tips, and driving scenario exercises. You need to meet the following requirements to qualify for the program:

• Be under the age of 25
• Have a valid driver’s license
• Have no at-fault accidents or moving violations in the past three years
• Successfully complete all the program requirements

Discounts for Teens and Young Drivers

Part of why State Farm has such affordable rates for teens has to do with its long list of discounts for teens. If you’re a teen driver or looking to add a teen to your policy, you should ask your State Farm agent about which of the following discounts are available in your state.

• Steer Clear Program: You get up to 20 percent off your car insurance rates if you complete the Steer Clear Program.
• Good student discount: Save up to 25 percent on your premium if you’re under the age of 25, in college or high school, and meet at least one of the following requirements
  • In the upper 20 percent of your class
  • Have a B average (3.0) or higher
  • Made the dean’s list or honor roll
• Driver training discount: If you’re under the age of 21 and complete a State Farm-approved driver education course, you may be eligible for this discount.
• Away-at-school discount: You might qualify for this discount if one of the operators of your vehicle is an away-at-school student under the age of 25. The student can operate the vehicle only during school vacations and holidays.
• Safe car discount: If you purchase a safe car for your teen driver, you could earn a discount. Talk to your agent about what is considered a safe vehicle.

As you get older, you may notice your insurance premium is increasing. That’s because car insurance tends to rise incrementally between the ages of 65 and 80. Still, seniors pay much less than younger drivers and have several options for affordable, quality insurance, like GEICO.

With almost 100 years in business, GEICO offers cheap rates and great incentives for older Americans.

Affordable Rates for Seniors

Here’s how GEICO’s rates compare to those of other providers for drivers over the age of 65:

Below are the average annual rates for drivers over the age of 65 across the country:

GEICO Discounts for Senior Drivers

GEICO has an impressive list of discounts for most drivers, but it has a few sizable discounts specifically for older Americans. If you’re over the age of 50, you should ask your GEICO agent about the following discounts:

• Defensive driver discount: Drivers over the age of 50 who complete an approved mature defensive driving course can earn a discount on their premium.
• Retired military discount: If you’re a retired military member, you might be eligible for a 15 percent discount on your premium.
• Membership and affiliate discounts: GEICO has partnerships with more than 800 organizations and affiliates. If you’re a member of any of those groups, like the AARP or World Golf Tour, you may be able to save on car insurance.

GEICO’s Prime Time Contract for Older Americans

GEICO customers over the age of 50 may be eligible to sign up for GEICO’s Prime Time Contract, which guarantees that GEICO will continue to renew your insurance at an affordable rate. Because providers tend to increase premiums for older drivers and, in some cases, may refuse to renew your policy, this is a good option to ensure you maintain your coverage.

To qualify for the Prime Time Contract, you need to:

• Be at least 50 years old
• Have no one else on your policy who is under the age of 25
• Have no violations or accidents within the past three years
• Not use your vehicle for business

It’s probably no surprise that your car insurance premium will increase after a DUI, even if it’s your first DUI. A DUI is one of the most serious traffic violations you can be convicted of, and a DUI affects your premium by increasing it by 67 percent on average. If you’ve been in a DUI and are looking for an affordable option, we recommend you take a look at Progressive. Compared to major competitors, Progressive has affordable rates for drivers with a DUI.

Cheapest Rate After a DUI

Progressive has the cheapest rates for drivers after a DUI on average compared to its competitors. Here’s a comparison of Progressive’s average rate for drivers with one DUI compared to other major providers.

Similar to the cheapest rates for teens, USAA is cheaper than Progressive on average for drivers after a DUI. However, it’s available only to active military members, veterans, and dependents (spouses/children) of military members.

Progressive Will File Your SR-22

A DUI is one of the leading reasons why you might need to file an SR-22, and not all providers are willing to insure or file an SR-22 on your behalf. That isn’t the case with Progressive. Progressive accepts drivers who need an SR-22s, will file your SR-22 on your behalf, and offers SR-22 non-owner insurance for drivers with a DUI.

Name Your Price Tool

If you’re having trouble finding coverage in your price range after a DUI, you can use Progressive’s Name Your Price tool. Here’s how it works:

1. Provide Progressive with some basic background info about your driving metrics and insurance needs, including that you’ve had a DUI.
2. Use the Name Your Price tool to tell Progressive the maximum you’re willing to pay for coverage.
3. Progressive will generate a few different policies with varying coverages under the maximum amount you’ve laid out.