The 10 cheapest car insurance companies State Farm and USAA are the most affordable major car insurance companies in the country. State Farm offers an average rate of $44 per month for a minimum-liability policy, which is 26% cheaper than the national average. USAA costs an average of $36 per month, although only active military members, veterans or their families can qualify. Cheapest national car insurance companies National companies Monthly rate State Farm logo State Farm $44 Geico logo Geico $56 Progressive logo Progressive $74 Allstate logo Allstate $76 Nationwide logo Nationwide $76 Show All Rows Only current and former military members and their families are eligible for a USAA policy. Cheapest local car insurance companies Among regional companies, Farm Bureau Insurance, at $39 per month, and Auto-Owners, at $40 per month, rank as the cheapest. Erie's in a close third place at $42 per month. Local companies Monthly cost Farm Bureau logo Farm Bureau $39 Auto-Owners logo Auto-Owners $40 Erie logo Erie $42 American Family logo American Family $53 Shelter logo Shelter $74 Why trust our top picks Did you know the same driver could get quotes from $39 per month from one car insurance company and $255 from another? To help you get the most affordable car insurance near you, our insurance experts analyzed cost, coverage, availability and customer support for 37 top companies across the country. ValuePenguin's editorial team spent hundreds of hours ranking the best cheap companies by collecting millions of quotes across every ZIP code in the US.