Car insurance in 2025 ain’t cheap. The average full coverage premium? It’s pushing $2,700 a year. And if you’ve got a speeding ticket, a teenage driver, or you just happen to live in a “high-risk” zip code—yeah, you’re probably paying even more.
But here’s the good news: there are still a handful of providers out there that won’t torch your wallet for basic coverage. Some companies are keeping rates low with smart tech and driver tracking. Others reward loyalty or safe habits. And a few? Well, they just cut the fluff and give you solid protection for a reasonable price—no gimmicks required.
This isn’t another “best car insurance for families with three dogs and an RV” list. You’re here because you want to pay less. And I’ve got you. We’re counting down the top 5 cheapest car insurance companies in 2025, starting with the most decent deals—and ending with the true budget king.
These rankings are based on average national premiums, most popular plans, discount availability, and how much you’re actually getting for your money. Because cheap is good—but cheap with coverage that actually works? That’s the sweet spot.
7. Farmers Insurance
- Minimum Coverage: ≈ $80/month
- Full Coverage: ≈ $255/month
Overview:
Farmers is a solid insurer with wide customization options—but you’ll pay for that flexibility. Their premiums rank among the most expensive in 2025, especially for drivers without multi-policy bundling. Where Farmers wins is in niche extras: customized equipment coverage, rideshare add-ons, and robust umbrella options.
Popular Plan:
Their full coverage with rideshare and glass replacement options is a common pick for city dwellers or self-employed drivers. Most policyholders take advantage of bundle discounts to keep that $255 monthly bill from going any higher.
6. Allstate
- Minimum Coverage: ≈ $75/month
- Full Coverage: ≈ $255/month
Overview:
Allstate doesn’t shy away from charging more—you’re paying for a household name with strong agent support and lots of bells and whistles. While their claim service is generally well-rated and their “Drivewise” app can potentially drop your rate over time, their full coverage quotes are often $50–$100/month higher than the national average.
Popular Plan:
Most Allstate customers opt into full coverage with options like accident forgiveness, rental reimbursement, and deductible rewards. It’s a premium policy for folks who want wide protection—and don’t mind paying extra for it.
5. Nationwide
Average Premiums:
- Minimum Coverage: $53/month
- Full Coverage: $158/month
Overview: Nationwide offers competitive rates, particularly for drivers seeking comprehensive coverage. Their “SmartRide” and “SmartMiles” programs provide discounts for safe driving and low mileage, respectively. These telematics-based programs can lead to significant savings for eligible drivers.
Popular Plans: Nationwide’s full coverage policies are popular among families and individuals with newer vehicles. The company also offers a “Vanishing Deductible” program, which reduces your deductible by $100 for each year of safe driving, up to $500.
Considerations: While Nationwide provides a range of discounts and programs, some customers have reported rate increases over time. It’s essential to review your policy annually to ensure it remains cost-effective.
4. Progressive
Average Premiums:
- Minimum Coverage: $46/month
- Full Coverage: $148/month
Overview: Progressive is known for its flexible coverage options and innovative tools like the “Snapshot” program, which rewards safe driving habits with lower premiums. The company’s online platform makes it easy to compare rates and customize policies.
Popular Plans: Progressive’s full coverage policies, combined with the Snapshot program, are popular among tech-savvy drivers who prefer managing their insurance online. The company also offers a range of add-ons, including roadside assistance and rental car reimbursement.
Considerations: While Progressive offers competitive rates, some customers have experienced rate increases upon policy renewal. It’s advisable to monitor your premiums and shop around periodically to ensure you’re getting the best deal.
3. Travelers
Average Premiums:
- Minimum Coverage: $45/month
- Full Coverage: $139/month
Overview: Travelers provides affordable insurance options, especially for students and young drivers. The company offers a variety of discounts, including good student discounts and savings for completing driver training courses.
Popular Plans: Travelers’ full coverage policies are favored by families and individuals seeking comprehensive protection at a reasonable price. The company’s “IntelliDrive” program uses a mobile app to monitor driving habits, potentially leading to additional discounts.
Considerations: While Travelers offers competitive rates and discounts, some customers have reported longer claim processing times. It’s important to weigh the cost savings against potential service delays when choosing a provider.
2. State Farm
Average Premiums:
- Minimum Coverage: $39/month
- Full Coverage: $123/month
Overview: State Farm is renowned for its extensive network of agents and personalized customer service. The company offers a variety of discounts, including those for safe driving, multiple vehicles, and bundling policies.
Popular Plans: State Farm’s full coverage policies are popular among families and individuals who value in-person support and comprehensive protection. The “Drive Safe & Save” program uses telematics to reward safe driving with lower premiums.
Considerations: While State Farm provides excellent customer service and competitive rates, some customers have noted that premiums can be higher for drivers with less-than-perfect records. It’s essential to discuss your specific situation with an agent to determine the best coverage options.
1. GEICO
Average Premiums:
- Minimum Coverage: $34/month
- Full Coverage: $108/month
Overview: GEICO stands out as the most affordable car insurance provider in 2025, offering low premiums without sacrificing coverage quality. The company’s user-friendly online platform and mobile app make managing policies convenient.
Popular Plans: GEICO’s minimum coverage policies are particularly popular among budget-conscious drivers. The company also offers a range of discounts, including those for good drivers, military personnel, and federal employees.
Considerations: While GEICO offers some of the lowest premiums in the industry, customer service experiences can vary. It’s important to consider your preferences for digital versus in-person support when selecting a provider.
| Rank | Insurance Company | Avg. Monthly (Min Coverage) | Avg. Monthly (Full Coverage) | Most Popular Plan Features |
|---|---|---|---|---|
| 7 | Farmers | $80 | $255 | Full coverage with rideshare and custom parts protection; bundling discount options |
| 6 | Allstate | $75 | $255 | Full coverage with accident forgiveness, new car replacement, and strong agent support |
| 5 | Nationwide | $53 | $158 | SmartRide™ safe driving discounts, vanishing deductible, multi-policy bundles |
| 4 | Progressive | $46 | $148 | Snapshot® usage tracking, full coverage with rental and roadside add-ons |
| 3 | Travelers | $45 | $139 | IntelliDrive™ safe driving program, popular among students and families |
| 2 | State Farm | $39 | $123 | Full coverage with Drive Safe & Save™, local agent service, loyalty discounts |
| 1 | GEICO | $34 | $108 | Basic to full coverage, best-in-class digital tools, huge range of discounts |
Listen, cheap insurance is great – until you actually need it and find out your “savings” came with a $2,000 lesson in fine print. That’s why this list doesn’t just count pennies. It tells you who’s giving you real value without playing games. If you’re serious about trimming your monthly bill, use this as your jump-off point. Pull quotes from a few of these, compare the coverage line by line, and don’t just trust the one with the flashiest ad or talking lizard. You want coverage that’s there when it counts—not just when it’s time to swipe your card.