U.S. News Announces the Cheapest Car Insurance Companies in 2021

WASHINGTON, March 10 -- The U.S. News and World Report, a digital news and information company, issued the following news release on March 9, 2021:

U.S. News & World Report, a nationally recognized publisher of consumer advice and information, today announced the Cheapest Car Insurance Companies in 2021. U.S. News evaluated nine of the largest insurers in the country and found the national average insurance premium to be $1,321 per year.

"It's always a good idea to check for cheaper car insurance rates from another company at the end of your policy term, and it's especially important to cross-shop auto insurance quotes when you have major changes in your life, like starting a new job or moving to a new town," said Nate Parsons, senior editor of U.S. News Best Cars. "Our list of the cheapest car insurance companies can help consumers pinpoint which insurers might offer them the lowest annual premiums."

For the third year in a row, the analysis from U.S. News shows that USAA is the cheapest car insurance company in the U.S., with an average rate of just $875 per year. Not everyone will qualify for insurance with USAA because membership is limited to policyholders who have a military affiliation. Geico is the cheapest option for most Americans, and though its annual premium of $1,100 is more than USAA's, it's still significantly cheaper than the national average in the study.

On the opposite end of the spectrum, Allstate has the highest average insurance premium in our analysis. At $1,788 per year, Allstate's annual rate is 35% higher than the national average.

The Cheapest Car Insurance Companies in 2021

1. USAA

2. Geico

3. State Farm

4. Travelers

5. Nationwide

6. Progressive

7. American Family

8. Farmers

9. Allstate

In addition to the average annual rates from each car insurance company, the study utilizes different driver profiles to help consumers determine what they might pay for car insurance. An individual's credit score can have a significant effect on auto insurance rates. The average annual cost for a driver with good credit is just $1,311, while a driver with poor credit pays nearly 70% more, with an annual premium of $2,227.

Similarly, having a poor driving history can substantially increase rates. For a driver with a DUI conviction, the average rate among the companies in the study is $2,112, which is nearly $800 more than the average rate of those with a clean driving record.

To get comparative insurance rates for this study, U.S. News worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from nine of the largest national car insurance companies, though not every company operates in every state. Quadrant obtained publicly available rate data that car insurers file with state regulators. Our study rates are based on profiles for both male and female drivers aged 25, 35 and 60 who drive an average of 6,000 or 12,000 miles per year. Vehicles used include the 2015 Honda Civic, 2015 Toyota RAV4 and 2015 Ford F-150. Three car insurance coverage levels were used, as were credit tiers of good, fair and poor. Clean driving records and records with one accident, one speeding violation and one DUI were also used in the calculations of certain driver archetypes.