Ranked: The Best Car Insurance Companies for Discounts

The cost of auto insurance has skyrocketed in recent years, leaving many people scrambling to find discounts on car insurance. But how do you know which companies provide high-quality auto insurance at an affordable price? Not every car insurance company has the same reputation for trustworthy claims handling and friendly customer service. Sometimes the "cheapest" car insurance is not the best policy for your situation.

What if you try to save money on car insurance by switching to a lower-priced company, but end up regretting it after you get in an accident? Fortunately, The Ascent has got your back. We've researched the auto insurance industry and scoured pricing data to find the best car insurance companies for discounts.

Read on to see our list of the best options to help you save money on car insurance.

1. Nationwide

How cheap is Nationwide car insurance compared to the national average? Here's a quick pricing breakdown:

• National average annual car insurance premium: $3,017
• Nationwide's average annual premium: $2,697

Why we chose Nationwide for our list of best cheap car insurance companies:

• Nationwide is one of the best insurance companies for bundling homeowners and auto insurance. You can combine coverages and save money overall. When you spend a bigger share of your monthly budget with one insurance company, it can often give you a better deal.
• Nationwide offers pay-per-mile car insurance. Do you work from home, or live in a walkable neighborhood? Are you not driving as often as you used to? Nationwide offers SmartMiles®, a special plan that lets you pay for car insurance based on the amount of miles you drive. The less you drive, the more you can save on car insurance.
• Nationwide has received a high ranking in auto insurance customer satisfaction by J.D. Power.

Read our Nationwide review

2. Geico

How cheap is Geico car insurance compared to the national average? Here's a quick pricing breakdown:

• National average annual car insurance premium: $3,017
• Geico's average annual premium: $2,106

Why we chose Geico for our list of best cheap car insurance companies:

• Geico is one of the absolute cheapest car insurance companies, promising to save you 15% or more on car insurance.
• Along with delighting TV audiences with its friendly Australian spokeslizard, Geico gets high marks for customer service and efficient claims handling.
• Geico offers special coverages like rideshare insurance for Uber and Lyft drivers, and an Auto Repair Xpress® program to get your car fixed faster after an accident.

Read our Geico review

3. USAA

How cheap is USAA car insurance compared to the national average? Here's a quick pricing breakdown:

• National average annual car insurance premium: $3,017
• USAA average annual premium: $1,844

Why we chose USAA for our list of best cheap car insurance companies:

• USAA car insurance is super affordable, with a lower average annual premium than any other company on our list. USAA members save an average of $707 per year on car insurance by switching to USAA from other insurers.
• USAA offers generous coverage and benefits, such as free accident forgiveness after five years. It also provides special policy discounts for good students and for military-specific situations like keeping a car on a military base.
• USAA car insurance gets exceptionally high customer satisfaction ratings; people just absolutely love this insurance company. Keep in mind that USAA car insurance is only available to members of the military, veterans, and their families.

Read our USAA review

4. State Farm

How cheap is State Farm car insurance compared to the national average? Here's a quick pricing breakdown:

• National average annual car insurance premium: $3,017
• State Farm average annual premium: $2,770

Why we chose State Farm for our list of best cheap car insurance companies:

• State Farm offers special discounts for drivers under age 25 who complete its Steer Clear® program. They also offer good student discounts of up to 25%. This makes State Farm a great choice for insuring teenage drivers.
• State Farm offers helpful optional coverages, including rideshare insurance, and travel expense coverage in case you're in an accident more than 50 miles from home.
• State Farm's nationwide network of insurance agents can provide helpful advice, local personalized service, and a wide range of insurance coverage for home, auto, life insurance, and more.

Read our State Farm review

5. Erie Auto Insurance

How cheap is Erie Auto Insurance compared to the national average? Here's a quick pricing breakdown:

• National average annual car insurance premium: $3,017
• Erie Auto Insurance average annual premium: $2,273

Why we chose Erie Auto Insurance for our list of best cheap car insurance companies:

• ERIE Rate Lock® is a special feature that keeps your car insurance rates the same, year after year. Your rate will only change if you add or remove a driver or vehicle, or change the address where your car is parked.
• Erie Auto Insurance offers a multi-policy discount of up to 20%. Bundle and save!
• Special policy features are available, like free roadside assistance, and a diminishing deductible for every consecutive year you can go without making a claim.

Read our Erie Auto Insurance review

Cheap car insurance doesn't have to be lower-quality car insurance. It really is possible to save money on car insurance, while still receiving peace of mind and financial protection. The exact amount of premium that you have to pay will depend on where you live, your driving record, your vehicle, and other factors. But all the companies on this list can potentially help you save money. That's why we chose them as the best car insurance companies for discounts.