☀️ MoneyGeek’s 2025 year-end car insurance rankings

Summer’s over, your tan is fading, and pumpkin spice is back. What should be on the top of your September to-do list? Shopping for cheaper car insurance.

Car insurance rates are expected to rise at year end. Rising repair costs, more severe weather claims, and an uptick in distracted driving are all pushing rates higher. Insurers are scrambling to lock in renewals before the year ends. Our analysis shows that you can save, on average, $289 a year just by comparison shopping.

👉 Think your rate’s the best you can get? Click the link below and watch it pull quotes for side-by-side comparison. Spoiler: your insurer might not be the bargain you thought!

Best car insurance companies by driver profile

Cheap is good. Cheap and reliable is better.  Based on price, customer satisfaction, and payout reliability, here are the standouts of 2025 by driver profile:

Young drivers (teens and under 25)
GEICO and Travelers: Both have the lowest full coverage quotes for teens and young drivers, making them the standouts when cost is king. At 17 years old, drivers pay around $237 monthly, then dropping to $132 monthly at age 20, and down to $75 monthly by age 25.

Senior drivers (65+)
GEICO dominates the seniors lane, offering premiums as low as $56 monthly for minimum coverage and $121 per month for full coverage. Way cheaper than the national average.

Drivers with recent violations or accidents
State Farm offers the lowest full coverage rates for drivers with tickets, at-fault accidents, and DUIs. Rates are as low as $55 per month for minimum coverage insurance and $120 for full coverage.

Drivers with bad credit
GEICO offers the cheapest car insurance for drivers with bad credit at around $96 monthly. It also delivers the best full coverage rates for drivers with low credit-based insurance scores, beating most competitors. 

Most affordable minimum coverage
GEICO is also the best in value when it comes to minimum coverage premiums, averaging as low as $43 per month, making it a consistent winner for basic protection.

Bottom line
If you want savings and fast claims, these are the companies worth a second look.

Who’s cheapest where you live? State car insurance costs in 2025

Where you live has a big impact on your car insurance rate. In some states, GEICO wipes the floor with competitors. In others, State Farm or Progressive quietly slip in as the lowest. And in places like Ohio or Louisiana, it’s the smaller regional names that steal the crown.

The cost difference isn’t pocket change, either — we’re talking hundreds, sometimes thousands a year depending on your ZIP code. How to know who’s really cheapest for you? See our list of the winners by state.

👉 Want to know your exact cheapest option? Don’t just guess. Compare personalized quotes with the link below.

Liability-only vs. full coverage: Which is right for you?

Here’s the plain-English version no agent bothers to spell out:

Liability-only: The cheaper option, but it only pays for the other person’s car and injuries when you’re at fault in an accident. Your car? Not included.

It’s fine if you’re driving an older ride worth less than 10 times your annual premium or under $5,000. But here’s the kicker — if you total your car, you’re on your own. One accident could leave you scrambling for thousands in repairs or replacements.

Full coverage: Liability + collision + comprehensive. Translation: you’re protected against fender benders, theft, vandalism, hail, and yes — even that rogue shopping cart rolling down the Walmart lot.

It costs more (nationally averaging $1,500 per year in 2025), but one accident can erase years of so-called “savings” from going liability-only.

Rule of thumb:

• Car older than 10 years and worth less than $5K? Liability-only is probably fine.

• Newer, financed, or worth more than $5K? Full coverage is the smarter move (and required by lenders).

• No emergency savings? Full coverage acts like a financial cushion you’ll be glad you had.

Why September is the sweet spot to shop

September isn’t just back-to-school season, it’s back-to-savings season. Here’s why:

• Renewal wars: Insurers fight harder for policyholders before the year closes.

• Hidden discounts: Companies quietly roll out fall promotions (they rarely advertise these).

• Avoid winter hikes: Rates usually spike after winter claim season (slippery roads, storm damage, holiday fender-benders). Lock in now to avoid 2026’s hike.

How to actually save on car insurance in 2025

You don’t need to drive less (though it can help). What you really need is to play the system smarter and squeeze every discount the insurers don’t advertise:

• Raise your deductible: Moving from $500 to $1,000 can slash 15–20% off your premium, sometimes saving $200–400 a year. Just make sure you’ve got enough in savings to cover the higher out-of-pocket if something happens.

• Use safe-driver apps: Yes, telematics apps track your habits, but steady drivers are pocketing 25–30% discounts.

• Ask for “quiet discounts”: Paperless billing, autopay, defensive driving courses, anti-theft devices discounts stack up fast. A defensive driving course alone can trim 5–10%.

• Bundle smart: Those who bundle home and auto insurance can save up to 25% off both policies.

• Don’t drive daily?: If you drive only a couple days a week or work from home, tell your insurer. Low-mileage drivers often qualify for a big discount.

• Choose the right car: High-safety, low-theft vehicles mean cheaper coverage.

• Stay continuously insured: Gaps in coverage are a red flag and can hike your premium 20% or more.

• Improve your credit score: A poor credit score can mean car insurance rates that are two times more expensive than those with excellent credit.

• Skip tiny claims: Filing too many small claims can tag you as risky. Save your insurance for the big stuff and pay for minor repairs out of pocket if you can.

• Shop every year (especially in fall): Rates change constantly, sticking around rarely pays. Fall is when insurers push renewals hardest and roll out quiet deals, making September the perfect time to jump.

Smart Cents gives you actionable tips and mindset shifts to help you reach your financial happy place. Thanks for being a part of our community.

The MoneyGeek Team

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