Why This Is an Ideal Time to Shop for Car Insurance Again
Last year about this time, I received a rate increase notice from my auto insurance provider and it was going up again to $180/month. I was disappointed and felt that was much too high. I did what you’re doing, shopping for a better rate.
Via Google, I found a number of websites and offers, some not great, while I accepted one low quote at $80 per month. If I’d stayed put with that insurance provide with that old policy, I would have been out $1200. So happy I made the effort to shop for better auto insurance rates and make the switch.
It’s a common experience for most American drivers who’ve had a frustrating experience with auto insurance. Yet, data shows things are changing.
Here’s Why Things are Changing
After unusually large national increases in auto insurance premiums in 2022, 2023 and 2024, insurers have largely restored profitability and are competing more aggressively for drivers again. Rate increases slowed sharply in 2025, and ValuePenguin estimated that average U.S. auto insurance rates would rise less than 1% in 2026 — the smallest increase in several years.
More recent evidence is even better for consumers. The U.S. Bureau of Labor Statistics reported that its motor vehicle insurance price index was 5.1% lower in August 2026 than a year earlier, including another 0.8% decline during August.
In other words, after years of frustrating increases, auto insurance is finally getting cheaper for many American drivers.
That makes now an unusually good time to shop for a lower auto insurance premium and search for the lowest insurance quotes, even if you haven’t changed vehicles, moved or had an accident.
The national average for full coverage is currently about $208 per month, according to ValuePenguin’s October 2026 data, but that figure hides enormous differences between states and insurance companies. Nevada averages $335 per month while Vermont averages only $128. More importantly, drivers in the same state can sometimes receive dramatically different prices from competing insurers.
Which Insurance Companies Have the Lowest Rates?
There’s no single insurance company that produces the lowest auto insurance quote for every driver. Your state, vehicle, age, driving record, credit where permitted, mileage and coverage choices can all change which insurer wants your business most.
Another reason to shop is that insurance companies are no longer moving their prices in the same direction. They’re competing again.
Some carriers are cutting rates to attract customers, while others are still increasing prices in particular states or for particular types of drivers. That creates exactly the kind of market in which comparison shopping can pay off.
ValuePenguin’s current state-by-state analysis illustrates the difference. Travelers currently produces the lowest modeled full-coverage rate in 12 states, while GEICO leads in 11 states plus Washington, D.C. State Farm, Progressive and a variety of regional insurers win in other markets.
But several companies have consistently appeared among the lower-priced insurers — USAA insurance company.
USAA has one of the strongest records for low auto insurance rates, with ValuePenguin currently estimating full coverage at about $125 per month. However, USAA is available only to military members, veterans and eligible family members.
Among insurers available to the broader public, State Farm has been one of the most consistently competitive large national companies over the last several years. ValuePenguin notes that State Farm historically offered some of the cheapest rates in the country, although other insurers have become more aggressive in 2026.
Current ValuePenguin average full-coverage rates show how competitive the market has become:
| Insurance Company | Average Full-Coverage Rate |
|---|---|
| USAA* | $125/month |
| American Family | $159/month |
| Auto-Owners | $171/month |
| Travelers | $173/month |
| GEICO | $187/month |
| State Farm | $192/month |
| Progressive | $207/month |
*USAA eligibility is restricted to qualifying military members, veterans and family members.
American Family currently has the lowest average full-coverage rate among ValuePenguin’s broadly available multi-state companies, while Travelers is the cheapest company available nationwide. GEICO and Travelers also produce the lowest modeled full-coverage quote in more states than any other insurers in ValuePenguin’s current state comparison.
The takeaway isn’t that everyone should switch to one of these companies. The auto insurance company that gave you the lowest rate three years ago might not give you the lowest insurance quote today.
Auto Insurance Rates and Cheapest Companies in All 50 States
This table below compares the recent five-year rate trend with today’s modeled full-coverage price and the company currently producing the lowest average rate for the standardized driver used in the study.
| State | Rate Change 2020–Aug. 2025 | 2026 Avg. Full Coverage | Lowest-Cost Company | Low Rate |
| Alabama | +24.9% | $181 | Travelers | $134 |
| Alaska | +20.2% | $170 | GEICO | $129 |
| Arizona | +45.8% | $236 | Progressive | $176 |
| Arkansas | +25.8% | $225 | Shelter | $165 |
| California | +39.3% | $221 | GEICO | $143 |
| Colorado | +43.7% | $272 | GEICO | $196 |
| Connecticut | +44.4% | $305 | Travelers | $127 |
| Delaware | +41.0% | $302 | Farmers | $191 |
| Florida | +61.2% | $311 | GEICO | $213 |
| Georgia | +46.4% | $184 | Farm Bureau | $134 |
| Hawaii | +7.1% | $151 | GEICO | $77 |
| Idaho | +27.4% | $148 | State Farm | $85 |
| Illinois | +36.6% | $185 | Travelers | $120 |
| Indiana | +31.5% | $166 | Travelers | $129 |
| Iowa | +33.0% | $170 | Progressive | $122 |
| Kansas | +38.6% | $225 | Travelers | $154 |
| Kentucky | +31.7% | $208 | Travelers | $168 |
| Louisiana | +27.6% | $327 | Allstate | $298 |
| Maine | +45.8% | $129 | Travelers | $87 |
| Maryland | +46.1% | $211 | GEICO | $158 |
| Massachusetts | +35.5% | $181 | GEICO | $123 |
| Michigan | +30.0% | $260 | Progressive | $173 |
| Minnesota | +41.2% | $222 | Travelers | $136 |
| Mississippi | +30.3% | $201 | State Farm | $142 |
| Missouri | +36.5% | $221 | Travelers | $145 |
| Montana | +24.3% | $211 | State Farm | $120 |
| Nebraska | +42.6% | $193 | Farmers Mutual of Nebraska | $109 |
| Nevada | +57.3% | $335 | Travelers | $206 |
| New Hampshire | +33.7% | $134 | Safety | $104 |
| New Jersey | +49.7% | $249 | GEICO | $141 |
| New Mexico | +26.1% | $212 | GEICO | $167 |
| New York | +52.5% | $226 | Progressive | $127 |
| North Carolina | +10.3% | $147 | Progressive | $79 |
| North Dakota | +26.8% | $180 | State Farm | $124 |
| Ohio | +44.7% | $148 | GEICO | $104 |
| Oklahoma | +34.8% | $214 | Progressive | $127 |
| Oregon | +38.2% | $199 | State Farm | $123 |
| Pennsylvania | +41.5% | $198 | Erie | $134 |
| Rhode Island | +26.8% | $276 | Travelers | $196 |
| South Carolina | +41.2% | $190 | GEICO | $139 |
| South Dakota | +30.4% | $196 | Farmers Mutual of Nebraska | $95 |
| Tennessee | +39.4% | $176 | Travelers | $140 |
| Texas | +58.7% | $247 | State Farm | $140 |
| Utah | +45.9% | $224 | Auto-Owners | $160 |
| Vermont | +24.0% | $128 | Co-Op | $83 |
| Virginia | +43.6% | $169 | Farm Bureau | $111 |
| Washington | +44.2% | $219 | Mutual of Enumclaw | $137 |
| West Virginia | +30.0% | $179 | Erie | $135 |
| Wisconsin | +32.0% | $168 | American Family | $119 |
| Wyoming | n/a | $131 | American National | $98 |
The five-year figures are approved-rate changes for major insurers tracked by S&P Global RateWatch through August 18, 2025; Wyoming was not included in that database. Current premium comparisons use a standardized full-coverage driver profile, so your actual price can differ substantially.
Why these numbers should get your attention
Price-sensitive drivers should focus less on the statewide average and more on the difference between the average and competitive quotes.
Consider Texas. The current modeled statewide full-coverage average is about $247 per month, yet State Farm’s modeled rate is approximately $140. In Connecticut, the statewide average is $305, while Travelers comes in around $127 for the standardized driver. ValuePenguin found Connecticut quotes ranging all the way to $642 per month.
That’s not a small discount. In some circumstances, shopping can potentially save a household thousands of dollars per year.
Insurance Companies Are Competing Again
Another reason to shop is that insurance companies are not moving their prices in the same direction anymore.
| Insurance Company | 2025 U.S. Auto Market Share | Estimated 2026 Rate Change |
| State Farm | 18.64% | -4.00% |
| Progressive | 18.60% | -0.05% |
| GEICO/Berkshire Hathaway | 11.56% | +0.20% |
| Allstate | 10.15% | +1.98% |
| USAA | 6.19% | +1.66% |
| Farmers | 3.57% | +0.81% |
| Liberty Mutual | 2.81% | -0.70% |
| Travelers | 1.93% | -0.09% |
| American Family | 1.53% | +1.80% |
| Nationwide | 1.10% | +0.18% |
| Erie | — | +7.92% |
| Auto-Owners | — | +3.85% |
| Mercury | — | +0.07% |
| NJM | — | +21.18% |
| Shelter | — | -3.00% |
| Amica | — | -3.64% |
Market shares are based on 2025 NAIC private-passenger-auto premiums. Estimated 2026 changes reflect insurer rate filings analyzed by ValuePenguin/S&P Global and won’t represent every customer’s renewal.
The important message isn’t that State Farm will always be cheaper than Allstate, or that GEICO will always beat Progressive. It is almost the opposite:
Insurance companies want different customers at different times.
Their pricing models assess your location, vehicle, age, driving record, insurance history, mileage and other permitted rating factors differently. One company may consider you an attractive customer and price accordingly while another effectively prices itself out of your business.
GEICO Auto Insurance Shows How Quickly the Market Can Change
GEICO provides a fascinating example of why you should be shopping for auto insurance again and open to insurance companies drive to grow their marketshare — because they’re willing to forego the usual big profits to get you onboard.
During the post-pandemic insurance crisis, rapidly rising repair, medical and claims costs left GEICO auto insurance badly underpriced. The company raised prices aggressively and reduced advertising. In 2023, its average premium per auto policy rose 16.8% while policies in force fell 9.8%. The strategy worked. By 2025 GEICO generated approximately $6.8 billion in pre-tax underwriting earnings. Premiums written increased 5.3%, primarily because policy counts were growing again, and GEICO significantly increased advertising and customer-acquisition spending.
In other words, the company went from needing to correct its prices and shed customers to wanting more customers again.
GEICO isn’t alone. Progressive Insurance too has expanded quickly and is now essentially tied with State Farm for the largest U.S. auto insurance market share. State Farm’s estimated 2026 rate movement is approximately -4%, while Liberty Mutual, Travelers and Progressive also show modest average reductions.
That’s exactly the kind of environment in which consumers should re-shop.
How to Find the Best Auto Insurance Rate Without Buying the Wrong Policy
Price matters, but the cheapest-looking quote isn’t necessarily the cheapest equivalent policy. When comparing insurers:
- Quote several companies, not just two. Include direct insurers such as GEICO and Progressive, large agent companies such as State Farm, and regional or independent-agent carriers such as Erie, Auto-Owners, Travelers or Farm Bureau where available.
- Keep coverage identical. Compare the same liability limits, collision and comprehensive coverage, uninsured-motorist protection and deductibles. A $140 quote isn’t a bargain if another $165 policy provides substantially more protection.
- Check deductibles carefully. Moving from a $500 to a $1,000 deductible can lower the premium, but you’re assuming another $500 of financial risk after a claim.
- Ask about bundling and telematics. Home-auto bundles, multi-car discounts, low-mileage programs and monitored-driving programs can materially change which company is cheapest for you.
- Shop again periodically. Your current insurer may have been highly competitive three years ago and expensive today. Insurance pricing and each company’s appetite for new customers continually change.
The ValuePenguin comparison itself demonstrates why broader shopping matters: GEICO and Travelers each currently produce the cheapest modeled full-coverage rate in 12 states, but smaller companies win in several others.
2026 May Be the Best Shopping Market Drivers Have Seen in Years
American drivers haven’t forgotten the enormous auto insurance increases of the last several years. S&P Global RateWatch calculated a 42.7% cumulative approved-rate increase nationally from 2020 through August 2025 among the major insurers it tracked.
But that is precisely why today’s market deserves another look.
Insurers have repaired much of the financial damage caused by post-pandemic claims inflation. Some have substantial underwriting profits again. Large companies are competing for growth, rate increases have slowed dramatically, and some insurers are actually cutting prices.
So don’t assume that last year’s insurer is still your best deal.
Your best auto insurance rate may be waiting at a company you haven’t quoted recently.
For price-conscious consumers, this is the message that matters most: the auto insurance market has changed. Shop the market again—and make the insurance companies compete for your business. Search for the lowest car insurance quote and save your precious money just like I did.
