Driving a car can really leave a dent in your wallet.
The average new car price hovers around $50,000 and the average gallon of gas costs close to $4. Then you have to add insurance to the total, and those prices have increased by 18% between 2026 and 2025, according to data from car insurance comparison site The Zebra.
Car insurance is essential if you’re driving. Some level of car insurance is required to drive legally in all states except New Hampshire, where you’ll still be held liable for the cost of damages.
Despite this fact, the number of uninsured drivers has been growing. Data from the Insurance Research Council found that 15.4% of drivers nationwide were uninsured in 2023, an increase from 11.6% in 2019.
Without insurance, you put yourself at risk of serious financial damage if you’re held liable during an event like an accident. Depending on state laws, you could also face fines or even license suspension.
If you want to keep your car insured while lowering the costs, there are steps you can take without compromising on coverage.
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Steps to make car insurance more affordable
Start with the most affordable companies
If you’re having trouble staying on top of your car insurance bill, your first strategy should be checking whether other insurers offer lower rates.
Oftentimes, insurance prices vary widely for the same individual between companies. That means that the insurance company that’s cheapest for a friend or neighbor may not be the most affordable for you.
In our research of the most affordable car insurance companies, we found that Geico, Nationwide and Travelers tend to have consistently affordable coverage.
Geico Auto Insurance
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Policy highlights
Geico offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
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Availability
Geico auto insurance is available in all 50 U.S. states and Washington, D.C.
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Accident forgiveness
Accident forgiveness is automatic if you remain accident-free for five years. It can also be bought as an upgrade when you buy or renew your policy.
Terms apply.
Nationwide Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you.
Travelers Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Travelers auto insurance policies are affordable and backed by the sixth largest company for car insurance by market share according to the NAIC. The company also offers a number of discounts to customers, including discounts for bundling, owning a hybrid or electric car, and good student discounts.
Shop around to find the cheapest coverage
Comparing rates between several companies used to require a few hours of filling out quote forms and comparing the best terms. Now, it just requires a few minutes with the help of AI.
CNBC Select likes two useful platforms for this kind of shopping: Jerry and the ChatGPT add-on from Insurify.
With Jerry, you download the app and share information about your car, driving history, address and name. Then, it gathers quotes from more than a dozen insurers for you and can alert you later to any price drops.
Jerry.ai
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Highlights
Jerry is an AI tool that allows drivers to compare auto insurance policies from dozens of insurers in minutes. You’ll need to provide personal information, including your name, address, phone number and vehicle information, but it gives you estimated rates from many top insurers.
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Availability
Jerry is a licensed insurance agency inall 50 U.S. statesand Washington, D.C.
For Insurify, you’ll need to use the ChatGPT app or website and add the app. Then start a conversation with ChatGPT and provide relevant information, like your ZIP code, car type, driving history, and annual mileage.
Insurify Car Insurance Comparison Tool
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Highlights
Insurify’s ChatGPT app connects with the AI platform to show possible cheapest rates and companies. Via chat-based communication, the app and ChatGPT can use Insurify data to help guide you towards the most affordable and highly rated insurer for your situation.
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Availability
Insurify is a virtual licensed insurance agent inall 50 U.S. states.
Out of the dozens of insurers that these apps can help you search, there might be a lower rate out there.
Lower your coverage limits
If shopping around hasn’t helped you find coverage you can afford, lowering your limits could bring your costs down. To be sure, doing this will mean you have less coverage if you’re involved in an accident, but it’s better than dropping it altogether and being uninsured.
Each state sets a limit on the minimum amount of liability insurance per driver, as well as requirements for additional coverage plans like personal injury protection (PIP). Here’s how much each state requires:
| Bodily injury liability per person/per accident/property damage liability | Other coverage requirements | |
|---|---|---|
| Alabama | 25/50/25 | None |
| Alaska | 50/100/25 | None |
| Arizona | 25/50/15 | None |
| Arkansas | 25/50/25 | None |
| California | 30/60/15 | None |
| Colorado | 25/50/15 | None |
| Connecticut | 25/50/25 | UM/UIM: 25/50 |
| Delaware | 25/50/10 | PIP: 15/30 |
| Florida | $10,000 property damage | PIP: $10,000 |
| Georgia | 25/50/25 | None |
| Hawaii | 20/40/10 | PIP: $10,000 |
| Idaho | 25/50/15 | None |
| Illinois | 25/50/20 | UM/UIM: 25/50 |
| Indiana | 25/50/25 | None |
| Iowa | 20/40/15 | None |
| Kansas | 25/50/25 | PIP: $4,500; UM/UIM: 25/50 |
| Kentucky | 25/50/25 | PIP: $10,000 |
| Louisiana | 15/30/25 | None |
| Maine | 50/100/25 | UM/UIM: 50/100 MedPay: $2,000 |
| Maryland | 30/60/15 | UM: 30/60/15 |
| Massachusetts | 20/40/5 | UM: 20/40 PIP: $8,000 |
| Michigan | 50/100/10 | PIP: $50,000 and up |
| Minnesota | 30/60/10 | UM/UIM: 25/50 PIP: $40,000 |
| Mississippi | 25/50/25 | None |
| Missouri | 25/50/25 | UM/UIM: 25/50 |
| Montana | 25/50/20 | None |
| Nebraska | 25/50/25 | UM/UIM: 25/50 |
| Nevada | 25/50/20 | None |
| New Hampshire | 25/50/25** | UM: 25/50 MedPay: $1,000 |
| New Jersey | 35/70/25 | UM/UIM: 35/70 PIP: $15,000 |
| New Mexico | 25/50/10 | None |
| New York | 25/50/10 | UM/UIM: 25/50 PIP: $50,000 |
| North Carolina | 30/60/25 | UM/UIM: 50/100/50 |
| North Dakota | 25/50/25 | UM/UIM: 25/50 PIP: $30,000 |
| Ohio | 25/50/25 | None |
| Oklahoma | 25/50/25 | None |
| Oregon | 25/50/20 | UM/UIM: 25/50 PIP: $15,000 |
| Pennsylvania | 15/30/5 | PIP: $5,000 |
| Rhode Island | 25/50/25 | None |
| South Carolina | 25/50/25 | UM: 25/50/25 |
| South Dakota | 25/50/25 | UM/UIM: 25/50 |
| Tennessee | 25/50/25 | None |
| Texas | 30/60/25 | None |
| Utah | 30/65/25 | PIP: $3,000 |
| Vermont | 25/50/10 | UM: 50/100/10 |
| Virginia | 50/100/25 | None |
| Washington | 25/50/10 | None |
| Washington, D.C. | 25/50/10 | UM: 25/50/5 |
| West Virginia | 25/50/25 | UM: 25/50/25 |
| Wisconsin | 25/50/10 | UM: 25/50 |
| Wyoming | 25/50/20 | None |
Source: *Florida only requires $10,000 in property damage liability, ** New Hampshire only requires proof of financial responsibility, either with insurance, a bond or cash deposit
However, if you have a loan or a lease on your car, you may also be required to carry comprehensive and collision coverage. While these do add to the cost of your policy, they pay to repair or replace your car after damage occurs.
Lowering car insurance costs
Does credit score impact car insurance costs?
Yes, in most states, your credit score plays a part in how much you’ll pay for car insurance. Typically, the higher your credit score, the lower your car insurance price. However, other factors, like your age, vehicle, and driving record, are also part of the equation.
Does car insurance get more expensive after a lapse in coverage?
Yes, letting your car insurance lapse could cost you: Data from Insurance.com found that even a one-week lapse could cause a premium increase of 11% when you do get insurance again. Getting coverage as soon as possible can prevent further damage.
What are the cheapest car insurance companies?
Why trust CNBC Select?
At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every car insurancereview is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insuranceproducts.While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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