Cheap Car Insurance 2026
By Sarah Davis | Last updated October 3, 2026
Affiliate disclosure: some links on this page may earn Axis Intelligence a commission. Commissions have zero weight in the scoring matrix below, which is published in full so anyone can recompute it.
Verdict Box
| Award | Insurer | Axis Insurer Value Score (IVS) | Why |
|---|---|---|---|
| Editor’s Choice | Erie Insurance | 92.2 / 100 | Highest share of premium paid back as claims (73.05%), top 2025 J.D. Power claims score (743), three 2026 regional first places |
| Runner-Up | NJM Insurance | 55.4 / 100 | Second-highest premium return (70.20%), 731 claims score, fastest premium growth in the set |
| Budget (national) | GEICO (Berkshire Hathaway Group) | 44.2 / 100 | Best value score among the four national giants; lowest legal-cost drag of all ten carriers |
| Free | Nationwide SmartRide | Free to join | Up to 40% off for safe driving, and the program does not raise your rate |
Quick Answer: Who Has Cheap Car Insurance in 2026?
Erie Insurance is the best-value cheap car insurance pick for 2026, scoring 92.2 out of 100 on the Axis Insurer Value Score. According to Axis Intelligence’s analysis of 2025 NAIC regulator filings, Erie returned 73 cents of every auto premium dollar as paid losses, the highest of ten major carriers, while also posting the top J.D. Power claims score. Where you live matters more than who you buy from: the average driver in Florida spent $1,864.63 in 2023, 2.3 times the North Dakota average of $807.77.
Key Findings
- According to Axis Intelligence, Erie Insurance leads the 2026 Insurer Value Score at 92.2 out of 100, nearly 37 points ahead of runner-up NJM Insurance at 55.4.
- Erie returned 73.05% of its 2025 private passenger auto premiums as direct losses, against an industry average of 61.49%, according to NAIC 2025 market share data.
- Nationwide returned the lowest share of premium in the Axis set, 51.59%, a 21.5-point gap from Erie on the same regulatory measure.
- Florida drivers paid the highest average auto insurance expenditure in 2023 at $1,864.63, which Axis Intelligence indexes at 145 against a national baseline of 100.
- Michigan was the only state where the average auto insurance expenditure fell between 2019 and 2023, down 3.6%, according to Axis Intelligence calculations on NAIC data.
How We Define “Cheap” (and Why Quotes Alone Mislead)
A cheap policy is not the lowest number on a quote screen. It is the lowest total cost across the life of the policy, and that total includes what happens when you file a claim.
So this ranking asks a harder question than “who quoted lowest for a sample driver.” It asks which insurers return the most value per premium dollar, using data that regulators collect and publish. The anchor is the direct loss ratio from the NAIC 2025 market share report, which divides the losses an insurer incurred on its customers’ claims by the premiums it earned. Axis Intelligence calls this the Premium Return Ratio (PRR).
Think of PRR as the take rate in reverse. An insurer with a 52% PRR keeps 48 cents of each dollar for expenses, acquisition and profit. An insurer at 73% keeps 27 cents. Over a decade of renewals, that spread is the fee hiding inside the “low quote.”
There is a reason we did not build this list on company-by-company sample quotes: no regulator publishes a national, like-for-like premium for each carrier. Quote studies model hypothetical drivers, and your ZIP code, vehicle, credit tier (where allowed) and record will move your price more than any national average. The data we used is the data insurers file under penalty of regulatory action.
The Axis Insurer Value Score: Full Scoring Matrix
According to Axis Intelligence, the Insurer Value Score (IVS) combines five regulator and survey measures into one 0 to 100 score. Each measure is normalized from 0 to 10 across the ten carriers, then weighted.
| Criterion | Weight | What it measures | Source |
|---|---|---|---|
| Premium Return Ratio (PRR) | 30% | Direct losses incurred / direct premiums earned, private passenger auto, 2025 | NAIC |
| Claims satisfaction | 20% | Published score in the 2025 U.S. Auto Claims Satisfaction Study (study average 700) | J.D. Power |
| Regional customer satisfaction | 20% | Number of first-place finishes in the 2026 U.S. Auto Insurance Study (11 regions plus the usage-based segment) | J.D. Power |
| Shopper Pull | 15% | Direct premiums written / direct premiums earned, minus 1: positive means the book is growing in a soft market | NAIC (Axis-calculated) |
| Legal-cost drag | 15% | Loss-and-defense ratio minus loss ratio: lower means less premium spent on defense and cost containment | NAIC (Axis-calculated) |
IVS Results: 10 Insurers Ranked
| Rank | Insurer | PRR 2025 | Claims score 2025 | 2026 regional #1s | Shopper Pull | Legal-cost drag (pts) | IVS | Source |
|---|---|---|---|---|---|---|---|---|
| 1 | Erie Insurance | 73.05% | 743 | 3 | +1.86% | 1.52 | 92.2 | NAIC; J.D. Power |
| 2 | NJM Insurance | 70.20% | 731 | 0 | +6.57% | 7.68 | 55.4 | NAIC; J.D. Power |
| 3 | GEICO (Berkshire Hathaway Grp) | 67.14% | Not published | 0 | +0.47% | 0.61 | 44.2 | NAIC |
| 4 | State Farm | 65.44% | Not published | 1 | -0.27% | 2.91 | 42.7 | NAIC; J.D. Power |
| 5 | USAA | 67.35% | Not published | 0 | +0.92% | 1.93 | 42.2 | NAIC |
| 6 | Progressive | 59.07% | Not published | 0 | +2.61% | 1.51 | 33.6 | NAIC |
| 7 | Nationwide | 51.59% | 729 | 1 | -5.54% | 1.46 | 33.4 | NAIC; J.D. Power; Claims Journal |
| 8 | Amica | 58.28% | Not published | 1 | -0.17% | 4.23 | 30.0 | NAIC; J.D. Power |
| 9 | Travelers | 53.63% | Not published | 1 | -1.17% | 2.20 | 26.6 | NAIC; J.D. Power |
| 10 | Auto-Owners | 58.39% | Not published | 0 | -0.82% | 4.43 | 22.2 | NAIC |
“Not published” means the carrier did not appear among the scores J.D. Power or trade press published for the 2025 claims study; it scores 0 on that criterion. This is a conservative choice, explained in How We Evaluated.
The matrix produces one decisive winner, and we are saying so plainly. Erie leads on three of five criteria. Nobody else leads on more than one.
The surprise sits at the bottom of the national pack. Nationwide owns the best usage-based program in J.D. Power’s 2026 study, yet it returned the smallest share of premium as claims and its written premium shrank 5.54% below earned premium. A great telematics app does not make a cheap book of business.
Comparison Table: Cheap Car Insurance Companies at a Glance
| Insurer | 2025 U.S. auto market share | Best for | Usage-based program (verified terms) | Source |
|---|---|---|---|---|
| Erie Insurance | 1.42% | Drivers in Erie’s footprint who want claims value | Not reviewed for this edition | NAIC |
| NJM Insurance | 0.47% | Mid-Atlantic drivers who rarely shop | Not reviewed for this edition | NAIC |
| GEICO | 11.56% (Berkshire group) | National budget buyers | Not reviewed for this edition | NAIC |
| State Farm | 18.64% | Agent-based buyers, safe drivers | Drive Safe & Save: up to 30%, no surcharge | NAIC; State Farm |
| USAA | 6.19% | Military members and families | Not reviewed for this edition | NAIC |
| Progressive | 18.60% | Frequent shoppers, higher-risk profiles | Snapshot: $328 average for savers; rate can rise | NAIC; Progressive |
| Nationwide | 1.10% | Telematics-first drivers | SmartRide: up to 40%, no rate increase | NAIC; Nationwide |
| Amica | 0.44% | New England drivers | Not reviewed for this edition | NAIC |
| Travelers | 1.93% | New York drivers | Not reviewed for this edition | NAIC |
| Auto-Owners | 1.39% | Independent-agent buyers | Not reviewed for this edition | NAIC |
Best Cheap Car Insurance Companies: Detailed Reviews
1. Erie Insurance: Best Overall Cheap Car Insurance (IVS 92.2)
Verdict. The clearest value case in the market. Erie pays the most claims dollars per premium dollar in this set and backs it with the customer scores to match.
Standout. A 73.05% Premium Return Ratio in 2025, 11.6 points above the 61.49% industry figure in NAIC’s 2025 data. Erie also ranked highest in the J.D. Power 2025 U.S. Auto Claims Satisfaction Study with 743 points, and took first in three regions of the 2026 U.S. Auto Insurance Study: Mid-Atlantic (704), North Central (688) and Southeast (691).
Drawbacks. Erie is a regional carrier and is not sold everywhere. Its 1.42% national share means many drivers simply cannot buy it. A high loss ratio in one year can also precede rate increases if the insurer decides it has underpriced; watch Erie’s next filings.
Best for. Drivers inside Erie’s operating states who value claims handling as much as the initial quote.
Pricing. Quote-based. NAIC does not publish per-carrier premiums. Data as of 2025 filings, retrieved October 3, 2026.
2. NJM Insurance: Runner-Up (IVS 55.4)
Verdict. Strong value with one asterisk.
Standout. A 70.20% PRR and a 731 claims score, second in J.D. Power’s 2025 claims study. NJM’s written premium ran 6.57% above earned premium in 2025, the fastest growth in the set, which signals shoppers are choosing it as the market softens.
Drawbacks. NJM carries the heaviest legal-cost drag of the ten: 7.68 points of earned premium went to defense and cost containment on top of losses. NJM is also a small, regional writer at 0.47% national share.
Best for. Mid-Atlantic drivers who can buy it and plan to stay put.
Pricing. Quote-based. Data as of 2025 filings, retrieved October 3, 2026.
3. GEICO: Best Budget Pick Among National Insurers (IVS 44.2)
Verdict. The best value score of the four national giants.
Standout. The Berkshire Hathaway group, GEICO’s parent, returned 67.14% of auto premium as losses in 2025 and posted the lowest legal-cost drag in the study at 0.61 points.
Drawbacks. NAIC reports the Berkshire Hathaway group, which includes more than GEICO, so the figures are a group-level proxy. GEICO won no region in J.D. Power’s 2026 study.
Best for. Drivers who want a national carrier, a direct digital purchase and value in the claims-dollar sense.
Pricing. Quote-based. Data as of 2025 filings, retrieved October 3, 2026.
4. State Farm (IVS 42.7)
Verdict. The market leader is quietly cutting prices.
Standout. State Farm Mutual reported cutting auto rates by roughly 10% on average over the prior year across 40 states, worth about $4.6 billion in annual premium, per its newsroom announcement. Its Drive Safe & Save program advertises discounts up to 30% and, per State Farm’s program page, will not add a surcharge. State Farm also won the Northwest in J.D. Power’s 2026 study (667).
Drawbacks. Drive Safe & Save is not available in California, Massachusetts or Rhode Island. Written premium slipped 0.27% below earned premium in 2025.
Best for. Safe drivers who want a local agent and a no-downside telematics discount.
Pricing. Quote-based. Rate-cut figures are company-reported, retrieved October 3, 2026.
5. USAA (IVS 42.2)
Verdict. Strong value for those who qualify.
Standout. A 67.35% PRR in 2025 and low legal-cost drag (1.93 points).
Drawbacks. USAA eligibility is limited to the military community. It won no 2026 J.D. Power region in the published results.
Best for. Service members, veterans and eligible family members.
Pricing. Quote-based. Data as of 2025 filings, retrieved October 3, 2026.
6. Progressive (IVS 33.6)
Verdict. The shopper’s insurer, with a lower claims-dollar return.
Standout. Progressive is now nearly tied with State Farm, at 18.60% versus 18.64% of 2025 auto premium, per NAIC. Its written premium grew 2.61% above earned premium. On Progressive’s Snapshot page, the company reports that drivers who earn a Snapshot discount save $328 on average.
Drawbacks. Progressive’s PRR of 59.07% sits below the industry figure. Snapshot can raise your rate after high-risk driving, which Progressive states directly. The company’s own savings claims come from surveys of new customers who saved, so they exclude everyone who did not.
Best for. Drivers who shop every renewal and are comfortable with a telematics program that cuts both ways.
Pricing. Quote-based. Company-reported savings retrieved October 3, 2026.
7. Nationwide (IVS 33.4)
Verdict. Best-in-class telematics, weak value ratios.
Standout. Nationwide ranked highest among usage-based insurers in J.D. Power’s 2026 study with 711 points, its third straight year. SmartRide offers up to 40% off and does not raise rates. Claims Journal reported Nationwide’s 2025 claims score at 729.
Drawbacks. The lowest PRR in the set at 51.59%, and written premium 5.54% below earned premium, the sharpest contraction among the ten.
Best for. Safe, low-mileage drivers who will actually complete a telematics program.
Pricing. Quote-based. Program terms retrieved October 3, 2026.
8. Amica (IVS 30.0)
Verdict. Service leader in New England; average on value ratios.
Standout. First in New England in J.D. Power’s 2026 study (702), a third consecutive win.
Drawbacks. A 58.28% PRR and 4.23 points of legal-cost drag.
Best for. New England drivers who prioritize service.
Pricing. Quote-based. Data as of 2025 filings, retrieved October 3, 2026.
9. Travelers (IVS 26.6)
Verdict. A New York service win, thin claims return.
Standout. Ranked first in the New York region of J.D. Power’s 2026 study (657).
Drawbacks. A 53.63% PRR, second-lowest in the set, and a shrinking auto book (-1.17%).
Best for. New York drivers who weigh service scores heavily.
Pricing. Quote-based. Data as of 2025 filings, retrieved October 3, 2026.
10. Auto-Owners (IVS 22.2)
Verdict. Middle of the pack on every input; nothing pulls it up.
Standout. A 58.39% PRR and steady scale at 1.39% of the national market.
Drawbacks. The highest legal-cost drag after NJM (4.43 points) and no published J.D. Power wins in this cycle.
Best for. Buyers who prefer an independent agent and a stable regional carrier.
Pricing. Quote-based. Data as of 2025 filings, retrieved October 3, 2026.
Cheapest Car Insurance by State: Average Cost in All 50 States and DC
Where you garage your car sets the floor for your premium. The table below uses the most recent state-level figures from the NAIC 2022/2023 Auto Insurance Database Report, adopted December 2025. Average expenditure is total liability, collision and comprehensive premium divided by insured vehicles, so it reflects what drivers actually spent, including those who skipped physical damage coverage.
According to Axis Intelligence, the State Cost Index (SCI) expresses each state’s 2023 average expenditure against the countrywide figure of $1,281.92, set to 100.
| Rank (cheapest first) | State | Avg. expenditure 2023 | Avg. expenditure 2019 | Change 2019 to 2023 | Axis SCI | Source |
|---|---|---|---|---|---|---|
| 1 | North Dakota | $807.77 | $703.66 | +14.8% | 63 | NAIC |
| 2 | Maine | $856.28 | $696.52 | +22.9% | 67 | NAIC |
| 3 | Idaho | $863.91 | $739.88 | +16.8% | 67 | NAIC |
| 4 | Iowa | $872.61 | $708.56 | +23.2% | 68 | NAIC |
| 5 | Hawaii | $888.07 | $839.70 | +5.8% | 69 | NAIC |
| 6 | Vermont | $893.16 | $783.69 | +14.0% | 70 | NAIC |
| 7 | Wisconsin | $922.41 | $767.65 | +20.2% | 72 | NAIC |
| 8 | North Carolina | $925.08 | $753.96 | +22.7% | 72 | NAIC |
| 9 | Indiana | $926.41 | $780.69 | +18.7% | 72 | NAIC |
| 10 | South Dakota | $936.84 | $745.21 | +25.7% | 73 | NAIC |
| 11 | Ohio | $947.22 | $806.07 | +17.5% | 74 | NAIC |
| 12 | Wyoming | $948.37 | $776.95 | +22.1% | 74 | NAIC |
| 13 | Kansas | $972.57 | $817.88 | +18.9% | 76 | NAIC |
| 14 | Montana | $975.02 | $836.46 | +16.6% | 76 | NAIC |
| 15 | Nebraska | $981.06 | $807.44 | +21.5% | 77 | NAIC |
| 16 | New Hampshire | $986.84 | $864.76 | +14.1% | 77 | NAIC |
| 17 | Kentucky | $1,045.66 | $947.49 | +10.4% | 82 | NAIC |
| 18 | Tennessee | $1,049.80 | $864.94 | +21.4% | 82 | NAIC |
| 19 | Arkansas | $1,050.52 | $900.36 | +16.7% | 82 | NAIC |
| 20 | West Virginia | $1,062.98 | $939.04 | +13.2% | 83 | NAIC |
| 21 | Alabama | $1,081.24 | $927.51 | +16.6% | 84 | NAIC |
| 22 | New Mexico | $1,081.61 | $932.65 | +16.0% | 84 | NAIC |
| 23 | Oklahoma | $1,083.97 | $913.63 | +18.6% | 85 | NAIC |
| 24 | Minnesota | $1,103.05 | $892.05 | +23.7% | 86 | NAIC |
| 25 | Alaska | $1,112.96 | $991.00 | +12.3% | 87 | NAIC |
| 26 | Virginia | $1,114.46 | $858.75 | +29.8% | 87 | NAIC |
| 27 | Washington | $1,152.50 | $1,068.26 | +7.9% | 90 | NAIC |
| 28 | Illinois | $1,153.11 | $940.92 | +22.6% | 90 | NAIC |
| 29 | Pennsylvania | $1,154.57 | $995.08 | +16.0% | 90 | NAIC |
| 30 | Missouri | $1,154.78 | $933.54 | +23.7% | 90 | NAIC |
| 31 | Utah | $1,168.93 | $954.53 | +22.5% | 91 | NAIC |
| 32 | Oregon | $1,170.31 | $990.24 | +18.2% | 91 | NAIC |
| 33 | Mississippi | $1,199.52 | $977.79 | +22.7% | 94 | NAIC |
| 34 | California | $1,225.02 | $1,051.82 | +16.5% | 96 | NAIC |
| 35 | Massachusetts | $1,326.46 | $1,182.69 | +12.2% | 103 | NAIC |
| 36 | Arizona | $1,344.24 | $1,065.01 | +26.2% | 105 | NAIC |
| 37 | South Carolina | $1,367.39 | $1,115.78 | +22.6% | 107 | NAIC |
| 38 | Connecticut | $1,393.90 | $1,266.79 | +10.0% | 109 | NAIC |
| 39 | Texas | $1,428.94 | $1,143.91 | +24.9% | 111 | NAIC |
| 40 | Michigan | $1,444.01 | $1,498.59 | -3.6% | 113 | NAIC |
| 41 | Colorado | $1,452.82 | $1,175.48 | +23.6% | 113 | NAIC |
| 42 | Nevada | $1,461.54 | $1,292.58 | +13.1% | 114 | NAIC |
| 43 | Delaware | $1,462.03 | $1,286.99 | +13.6% | 114 | NAIC |
| 44 | Maryland | $1,476.78 | $1,231.51 | +19.9% | 115 | NAIC |
| 45 | Rhode Island | $1,539.65 | $1,382.15 | +11.4% | 120 | NAIC |
| 46 | Georgia | $1,555.10 | $1,264.81 | +23.0% | 121 | NAIC |
| 47 | New Jersey | $1,573.21 | $1,390.44 | +13.1% | 123 | NAIC |
| 48 | District of Columbia | $1,676.99 | $1,439.99 | +16.5% | 131 | NAIC |
| 49 | New York | $1,752.55 | $1,446.14 | +21.2% | 137 | NAIC |
| 50 | Louisiana | $1,754.03 | $1,560.00 | +12.4% | 137 | NAIC |
| 51 | Florida | $1,864.63 | $1,488.73 | +25.2% | 145 | NAIC |
What the State Data Says
According to Axis Intelligence, the 16 cheapest states for car insurance all sit at least 23% below the national average expenditure, a pattern consistent with NAIC’s own observation that high-premium states tend to be more urban, with greater traffic density.
Virginia posted the steepest increase from 2019 to 2023, up 29.8%, even though it still lands mid-table. Michigan is the outlier in the other direction. After the state’s 2019 no-fault reform, which NAIC notes in its report, average expenditure fell from $1,498.59 to $1,444.01.
New Jersey deserves a footnote. NAIC states that New Jersey insurers have historically paid two to four times the national average in policyholder dividends, which the expenditure figures do not subtract. NJM, our runner-up, writes most of its book in that environment.
J.D. Power 2026 Regional Leaders in Single-State Regions
J.D. Power treats four states as their own regions. Here are the 2026 winners:
| State region | Highest-ranked insurer, 2026 | Score | Source |
|---|---|---|---|
| California | Wawanesa | 678 | J.D. Power |
| Florida | Florida Farm Bureau Insurance | 693 | J.D. Power |
| New York | Travelers | 657 | J.D. Power |
| Texas | Automobile Club of Southern California (AAA) | 673 | J.D. Power |
Why Is Car Insurance So Expensive in 2026?
The bill reflects claims. NAIC reports the countrywide average expenditure rose 13.99% in 2023 alone, to $1,281, and climbed 19.24% from 2019 to 2023. Over the same window, the auto insurance component of the Consumer Price Index rose 21.76%.
That gap between the price index and actual spending is the tell. The index holds coverage constant. Spending does not, because drivers responded to higher prices by buying less insurance. J.D. Power’s 2025 claims study found 26% of customers now carry deductibles of $1,000 or more, and 7% say they avoided filing a claim for fear of a rate increase.
The good news: the cycle has turned. J.D. Power’s 2026 study found only 30% of customers reported an insurer-initiated premium increase, and price satisfaction improved 3 points. The study describes a softening market in which customers hold more bargaining power. That is exactly when shopping pays.
Buyer’s Guide: How to Get Cheap Car Insurance Without Buying Bad Insurance
Price the claim, not just the policy. A lower premium from an insurer that returns 52 cents per dollar can cost more over five years than a slightly higher premium from one returning 73 cents, if you ever file. The PRR column above is your shortcut.
Raise your deductible only if you can pay it tomorrow. J.D. Power found that customers with deductibles of $1,000 or more who incurred rental costs scored their claims experience at 630, 21 points lower than in 2024. A high deductible you cannot fund is not savings; it is deferred cost.
Pick the telematics program that cannot bite. State Farm’s Drive Safe & Save and Nationwide’s SmartRide are structured as discount-only. Progressive’s Snapshot can raise your rate. If your driving data is a coin flip, that distinction is worth more than the advertised ceiling. Our EV data privacy guide explains how connected-car driving data reaches insurance underwriting, with or without an app.
Shop at every renewal in a soft market. J.D. Power found that when an insurer raises your premium, price satisfaction falls 155 points to 486. That frustration is a signal: competitors are filing rate cuts, as State Farm’s 10% average reduction shows.
Read your policy before an AI summarizes it for you. Only 58% of customers completely understand their auto policy, down 4 points from 2025, and 32% of shoppers used AI tools during their search, per J.D. Power. Use those tools to compare, then confirm limits and exclusions in the declarations page itself.
Check who protects your data. Auto insurers hold driver’s license numbers and policy details. Our data breach tracker logged a 2026 breach at auto insurer AssuranceAmerica affecting 6,998,886 individuals, according to its Maine Attorney General filing.
Factor insurance into the car, not after it. Vehicle choice moves premiums. Our best electric cars rankings fold insurance into five-year ownership cost, and our European automaker statistics show how captive finance arms bundle insurance into the purchase. For small fleets, our business operating costs statistics track insurance as a separate cost line.
How We Evaluated
Basis. This ranking is documentation-based. Axis Intelligence did not purchase policies, file claims or run quotes for test drivers, and nothing on this page claims otherwise. Every score traces to a public document: the NAIC 2025 Top 25 Groups and Companies by Countrywide Premium (Total Private Passenger Auto), filings received by March 18, 2026; the NAIC 2022/2023 Auto Insurance Database Report, adopted December 2025; the J.D. Power 2026 U.S. Auto Insurance Study (52,216 responses, fielded April 2025 to April 2026); and the J.D. Power 2025 U.S. Auto Claims Satisfaction Study (9,455 responses, fielded September 2024 to August 2025). Company program terms come from each insurer’s own pages, retrieved October 3, 2026.
Carrier selection. We chose ten carriers that appear in NAIC’s 2025 top 25 private passenger auto groups and that U.S. drivers can realistically buy from: the four largest national writers, USAA, and five regional or mid-size carriers with distinct value profiles.
Formula. Each criterion is min-max normalized to 0 to 10 across the ten carriers: score = (value minus set minimum) / (set maximum minus set minimum) x 10, inverted for legal-cost drag where lower is better. Claims satisfaction uses (published score minus the 700 study average) / (743 minus 700) x 10. IVS = 10 x (0.30 PRR + 0.20 claims + 0.20 regional + 0.15 Shopper Pull + 0.15 legal-cost drag). Example: Erie scores 10.0, 10.0, 10.0, 6.1 and 8.7, which yields 92.2.
Scope. NAIC loss ratios are one calendar year and group-level; Berkshire Hathaway’s group includes more than GEICO. A high loss ratio can reflect a carrier that underpriced and will file increases. J.D. Power publishes only the top claims scores; carriers without a published score receive 0 on that criterion, which may understate some large carriers. The Nationwide claims figure of 729 comes from Claims Journal’s report on the study rather than J.D. Power’s release. Shopper Pull reflects mid-year growth, not price directly. None of these measures replaces a personal quote.
Independence. Inclusion and rank follow the matrix only. Affiliate status, partnerships and sponsorships carry zero weight.
FAQ: Cheap Car Insurance in 2026
Which company has the cheapest car insurance in 2026?
No single company is cheapest everywhere, because premiums are set by state, ZIP code, vehicle and driver profile. On value per premium dollar, Erie Insurance leads the 2026 Axis Insurer Value Score at 92.2, returning 73.05% of 2025 auto premiums as losses, per NAIC data.
What is the cheapest state for car insurance?
North Dakota had the lowest average auto insurance expenditure in 2023 at $807.77 per insured vehicle, according to the NAIC Auto Insurance Database Report. Maine ($856.28) and Idaho ($863.91) followed.
What is the most expensive state for car insurance?
Florida, at an average expenditure of $1,864.63 in 2023 per NAIC, which Axis Intelligence indexes at 145 on its State Cost Index. Louisiana ($1,754.03) and New York ($1,752.55) were next.
How much does car insurance cost on average in the U.S.?
The NAIC’s most recent countrywide average expenditure is $1,281 for 2023, up 13.99% from 2022. The combined average premium for a policy carrying liability, collision and comprehensive was $1,438.
What is a loss ratio, and why does it matter for cheap car insurance?
A loss ratio is the share of earned premium an insurer pays out in incurred claims. The 2025 private passenger auto industry figure was 61.49%, per NAIC. A higher ratio means more of your premium comes back to policyholders as claim payments rather than overhead.
Can a usage-based insurance program raise my rate?
It depends on the program. Progressive states that Snapshot can raise your rate after high-risk driving. State Farm says Drive Safe & Save will not add a surcharge, and Nationwide says SmartRide is a discount program that does not raise rates.
Is full coverage worth it if I want cheap car insurance?
It depends on your car’s value and your savings. Dropping collision cuts the premium, but J.D. Power found total losses rose to 27% of claims in its 2025 study, up from 16% in 2022, which raises the stakes of going without physical damage coverage on a financed or newer vehicle.
Are car insurance rates going down in 2026?
Rates are easing in many places. J.D. Power’s 2026 study found 30% of customers reported an insurer-initiated increase and described a softening market, and State Farm Mutual reported average auto rate cuts of roughly 10% across 40 states.
Why are regional insurers often better value than national brands?
In the Axis matrix, regional carriers Erie and NJM posted the two highest Premium Return Ratios, 73.05% and 70.20%. Regional insurers also won most J.D. Power 2026 regional satisfaction rankings, though their availability is limited.
Does raising my deductible make car insurance cheaper?
It lowers the premium, but J.D. Power’s 2025 claims study found customers with deductibles of $1,000 or more who also paid rental costs rated their claims experience at 630, down 21 points from 2024.
Did car insurance costs fall anywhere between 2019 and 2023?
Michigan is the only state where average expenditure declined, by 3.6% from $1,498.59 to $1,444.01, according to Axis Intelligence calculations on NAIC data. NAIC’s report notes Michigan’s 2019 no-fault reform.
Sarah Davis covers fintech and consumer finance for Axis Intelligence.