Our picks for the best car insurance companies
Erie is our pick for best overall car insurance according to our expert comparison of rates, discounts, coverage options, financial strength ratings, and customer service scores from more than 100 car insurance companies.
But the best car insurance company for you will depend on your driving record, family, and coverage needs, which is why we also picked the top car insurance companies for different kinds of drivers, including teens and people with recent accidents.
No matter which company you choose, compare quotes before you buy to be sure you’re really getting the best car insurance rates.
Best car insurance for customizing coverage: Travelers
Best car insurance for bundling: Auto-Owners
Best car insurance after an accident: State Farm
Best usage-based car insurance: Progressive
Best car insurance for at-home workers: Nationwide
Methodology: Why you can trust our picks for the best companies
We calculated our expert ratings by considering cost, availability, customer experience and satisfaction, and coverage options. Our own Policygenius agents — who have years of experience working with real car insurance shoppers — also weighed in.
We assigned weights to each category based on its relative importance, then found the weighted average of these values for each company. The raw scores we assigned to each company were converted into a “z-score” and then a “t-score,” which were then standardized on a 5-point scale.
To come up with our company ratings, we accumulated company data for price, financial strength, customer experience, and coverage options. We assigned a weight to each category based on research and insight from our own licensed insurance editors and operations specialists. Here’s how our ratings categories break down:
Price (35%): We gave each company a score based on its average rate and available discounts.
Financial strength (25%): We gave point values based on each company’s A.M. Best Financial Strength Rating, S&P credit rating, and Moody’s credit rating.
Customer experience (20%): We scored companies based on how they performed on the most recent J.D. Power Auto Claims Satisfaction and Digital Experience surveys. This category also considers a company's complaint index, which is provided by the National Association of Insurance Commissioners.
Coverage options (20%): We scored companies for the number of coverage types offered and the quality of these options. Less common endorsements earned higher scores compared to add-ons that most companies offer.
How we calculated coverage cost:
We determined the average costs for full-coverage car insurance from each company using rate data provided by Quadrant Information Services.
These rates were from every ZIP code across every state, along with the District of Columbia. Rates were for a 30-year-old male driver with a 2017 Toyota Camry. Our sample full-coverage policy included the following limits:
Bodily injury liability: $50,000 per person, $100,000 per accident
Property damage liability: $50,000 per accident
Uninsured/underinsured motorist: $50,000 per person, $100,000 per accident
Comprehensive: $500 deductible
Collision: $500 deductible
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
Best car insurance overall: Erie
Erie
4.9
Offers new car replacement
Good student discount
Accident forgiveness
Mobile app
Bundle home & auto
Coverage for rideshare drivers
Offers classic car insurance
Offers gap coverage
Offers motorcycle insurance
Usage-based discount
Why we chose it
Erie has some of the best car insurance rates for drivers with clean records, excellent customer service, and a range of coverage options to choose from (some of which come built-in to your policy).
Pros and cons
Pros
Low car insurance rates
Lots of useful add-ons, like new car replacement
Accident forgiveness automatically included after three years
Cons
Not available in every state
More details
Erie only offers coverage in 12 states, but we think it’s the best place to get car insurance (and it’s among the cheapest). On average, an Erie policy costs $98 per month. That’s $475 less per year than the national average rate for a full-coverage policy.
Besides cheap rates, Erie also offers plenty of coverage add-ons. Unlike many other companies, Erie offers both new and better car replacement (which pays for a new car that’s one year older than your current model), plus rental reimbursement, rate lock, and roadside assistance.
Erie’s great customer service also sets it apart from other top companies. Erie ranks near the top of J.D. Power’s annual Auto Claims Satisfaction Study year after year, meaning Erie drivers are happy with the Erie claims process, from filing to final payout.
State availability
District of Columbia, Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin
Best car insurance for customer service: Amica
Amica
4.6
Offers gap coverage
Offers new car replacement
Bundle home & auto
Mobile app
New homebuyer discount
Offers motorcycle insurance
Why we chose it
Amica auto insurance earns top customer service ratings from third-parties, including great scores for its claims process and a low number of customer complaints.
Pros and cons
Pros
Outstanding customer service
Wide range of coverage options, including a premium tier
Affordable rates for good drivers
Cons
Can be pricey for drivers with spotty records
More details
If customer service is your top priority (over cheap rates or discounts), Amica may be the best car insurance company for you.
Year after year, Amica scores at the top of the annual J.D. Power Auto Claims Satisfaction study, which measures how policyholders feel about the entire claims process (from the first steps to final settlement).
Amica also gets far fewer complaints than is average for the industry, according to the National Association of Insurance Commissioners.
Besides its outstanding customer service, Amica also offers a range of car insurance coverage options, including gap insurance, which you may need if you finance or lease your car.
State availability
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Best car insurance for customizing coverage: Travelers
Travelers
4.7
Accident forgiveness
Bundle home & auto
Usage-based discount
Offers gap coverage
Offers new car replacement
All 50 states
Coverage for rideshare drivers
Mobile app
New homebuyer discount
Why we chose it
Travelers has some of the best coverage options for customizing a regular car insurance policy. Travers is also cheaper than average for a full-coverage policy, and has a wide range of available discounts.
Pros and cons
Pros
Offers useful add-ons like new car replacement and gap coverage
Cheaper-than-average rates
Receives few complaints for service
Cons
Has lower satisfaction ratings than competitors
More details
Travelers is the best car insurance company for drivers who want to add even more coverage to a regular full-coverage policy. Travelers offers the most add-ons of all our top car insurance companies, including:
Accident forgiveness: Keeps your rates the same after an accident.
Gap insurance coverage: Covers the difference between what you get when your car is totaled and what you still owe on your lease or loan.
New car replacement coverage: If your new car (five years old or younger) is totaled, this covers the cost to replace it with a new one of the same make and model.
Rental reimbursement coverage: Covers the cost of a rental car or other transportation while your car is being repaired after a covered accident.
Rideshare coverage: Extends coverage for drivers who drive for a ridesharing service, like Uber or Lyft (only available in Colorado and Illinois).
Roadside assistance coverage: Covers roadside emergencies if you need a tow, battery change, fuel delivery, or winching.
Unlike other companies that offer a lot of add-ons, Travelers is still one of the cheaper car insurance companies for full coverage. On average, Travelers is $113 per month, or $287 less per year than the national average.
State availability
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Best car insurance for bundling: Auto-Owners
Auto-Owners
4.7
Bundle home & auto
Offers gap coverage
Good student discount
Mobile app
Offers classic car insurance
Offers motorcycle insurance
Why we chose it
Auto-Owners has some of the best rates for drivers who bundle their auto and home insurance policies. We also like the company’s coverage options and customer service record.
Pros and cons
Pros
Cheap rates for full coverage
Lots of add-ons, like accident forgiveness and gap coverage
Receives fewer complaints than average
Cons
Not available in every state
More details
Auto-Owners is the best car insurance company for bundling auto and home policies. We like Auto-Owners best because it has some of the cheapest rates, a wide range of coverage options, and great customer service.
On average, a car and home insurance bundle with Auto-Owners is $2,405 per year, 12% cheaper than the national average.
Auto-Owners’ extra coverage options include accident forgiveness, gap coverage, and diminished value coverage to make up for your car’s loss in value after a crash.
Auto-Owners also earns high claims satisfaction ratings from its customers, according to J.D. Power’s Auto Claims Satisfaction Study, and a lower-than-average number of complaints, according to the NAIC.
State availability
Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia, Wisconsin
Best car insurance for families with teens: GEICO
GEICO
4.7
Offers classic car insurance
Offers motorcycle insurance
Usage-based discount
Mobile app
All 50 states
Good student discount
Why we chose it
GEICO is the best and cheapest car insurance company for families who need to add teens and young drivers to a policy, which can have a big impact on your car insurance rates.
Pros and cons
Pros
Available in all 50 states
Easy-to-use digital tools
Plenty of discounts
Cons
Only sells through GEICO agents
Doesn’t underwrite its other products
More details
GEICO is the best car insurance company for families, especially those with a newly licensed driver or a teen with their learner's permit, thanks to its competitive rates for young drivers. GEICO car insurance for a family with a 16-21 year old driver on the policy cost an average of $1,856 per year, or $155 a month, which is $797 cheaper than average.
GEICO’s online and mobile tools also make it a great car insurance company for families who want to manage their policies online. This includes DriveEasy, GEICO’s telematics discount program, which the entire family can try.
State availability
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Best car insurance after an accident: State Farm
State Farm
4.8
Bundle home & auto
Coverage for rideshare drivers
Good student discount
Mobile app
Usage-based discount
Offers classic car insurance
Offers motorcycle insurance
Why we chose it
State Farm has low car insurance rates even after an accident. It’s also cheap for drivers with a DUI, speeding ticket, or other high-risk violations on their records.
Pros and cons
Pros
Available in almost every state
Low rates for teens and drivers with accidents
High customer satisfaction ratings
Cons
Limited coverage options
More details
State Farm is the best car insurance company for drivers who have an accident or claim on their records. Typically, an accident raises your rates, even if it wasn’t your fault. But at State Farm, rates are still cheap after an accident (and after other high-risk incidents, like a speeding ticket and DUI).
On average, State Farm costs $117 per month after an accident. That’s $1,402 less than the industry-wide average. And car insurance after a not-at-fault accident from State Farm is $797 cheaper than average.
State Farm is also available in nearly every state (except for Massachusetts and Rhode Island).
State availability
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Best car insurance for veterans and military families: USAA
USAA
5.0
All 50 states
Bundle home & auto
Usage-based discount
Good student discount
Coverage for rideshare drivers
Mobile app
Offers classic car insurance
Offers motorcycle insurance
Why we chose it
USAA is the best all-around car insurance for drivers in the military thanks to its cheap rates and exceptional claims satisfaction ratings. If you’re currently in the military, a veteran, or part of a military family, USAA should be your number one pick.
Pros and cons
Pros
Low rates
Available nationwide
High customer service ratings
Cons
Only available to military members and their families
More details
USAA, which only offers insurance to military-affiliated drivers, is the best car insurance for veterans and active-duty members of the Armed Forces and their families. USAA regularly ranks at the top (or near the top) of J.D. Power’s annual Claims Satisfaction Study.
USAA also has the best car insurance rates of any company that we reviewed, at just $87 per month for a full-coverage policy. That’s $594 cheaper than the national average.
State availability
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Best usage-based car insurance: Progressive
Progressive
4.3
All 50 states
Usage-based discount
Offers gap coverage
Coverage for rideshare drivers
Accident forgiveness
Bundle home & auto
Good student discount
Mobile app
Offers classic car insurance
Offers motorcycle insurance
Why we chose it
We think that Snapshot by Progressive is the best usage-based car insurance for drivers looking to save money. Drivers also get Progressive’s solid coverage options and top-rated digital tools.
Pros and cons
Pros
Rewards safe drivers
Offers rideshare insurance and other less-common coverages
Variety of discounts and ways to save
Cons
Premiums are above industry average
More details
Progressive is the best car insurance for usage-based discounts, thanks to its easy-to-use Snapshot program, which tracks your driving and awards lower rates to safe drivers. We found that Snapshot can lower your rates from $148 to $70 per month, on average — savings of 53%.
Another reason Progressive’s Snapshot is the best usage-based car insurance is that you can try it out before committing to it. You can see your potential savings after just 30 days, and then decide whether or not to stick with Snapshot.
State availability
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Best car insurance for remote workers: Nationwide
Nationwide
4.2
Accident forgiveness
Bundle home & auto
Mobile app
Offers gap coverage
Usage-based discount
Coverage for rideshare drivers
Good student discount
Offers motorcycle insurance
Why we chose it
Nationwide’s SmartMiles per-mile car insurance can mean lower rates for people who work from home and spend less time on the road.
Pros and cons
Pros
Low rates
Few customer complaints
Annual coverage review
Cons
Not available in Alaska, Hawaii, Louisiana or Massachusetts
Lower-than-average claims satisfaction ratings
More details
Nationwide is the best car insurance for drivers who work from home thanks to its low-mileage car insurance program, SmartMiles. Unlike low-mileage discounts, which just earn you savings if you drive below a certain number of miles each year, SmartMiles adjusts your rates based on how much you drive.
SmartMiles is available in most states, which isn’t true of other per-mile insurance plans. We also like that only the first 250 miles you drive in a day count toward your rate, so you can still take long trips.
Nationwide estimates that SmartMiles can save you $320 per year off your car insurance policy. If you end up driving more than average, you’ll still get a 10% discount just for signing up with SmartMiles.
State availability
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Best car insurance for luxury vehicles: AIG
AIG
3.7
Offers classic car insurance
Offers new car replacement
Why we chose it
AIG offers a wide range of coverage add-ons for high-value cars, like new car replacement and a cash settlement after a crash. This coupled with AIG’s low number of complaints makes it our best pick for expensive or luxury cars.
Pros and cons
Pros
Speciality coverage including cash settlement
Gets very few complaints
Offers lots of other coverage for high-net worth drivers
Cons
Low-rated app experience
More details
AIG is the best auto insurance company if you own high-value or luxury cars. With AIG drivers can choose from lots of add-ons to protect their vehicles, like AIG’s $1 million liability limits, agreed value appraisement, and a cash settlement option.
AIG also has top-notch customer service. Compared to the industry average, AIG receives far fewer complaints for service, insurance offerings, price, and settlements. In addition to AIG’s reliable car insurance for luxury and specialty cars, you can also get AIG insurance for your high-value home, yacht, collectible cars, and any horses you own, too.
State availability
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Best car insurance in your state
The best car insurance company for you can depend on where you live. Some of the best-reviewed auto insurance companies (like COUNTRY, Wawanesa, and others) only offer coverage in a few states.
Your rates also depend on lots of factors, especially where you live — costs can even change depending on your city and ZIP code. We found the best company in each state for full-coverage insurance and compared it with the average rate in that state.
State | Company | Monthly rate at cheapest company | Average statewide rate |
|---|---|---|---|
Travelers | $83 | $144 | |
GEICO | $77 | $116 | |
Auto-Owners | $76 | $133 | |
State Farm | $80 | $147 | |
Wawanesa | $80 | $153 | |
American National | $70 | $154 | |
GEICO | $68 | $155 | |
State Farm | $97 | $179 | |
GEICO | $85 | $150 | |
State Farm | $134 | $233 | |
Auto-Owners | $88 | $135 | |
GEICO | $65 | $101 | |
American National | $41 | $91 | |
Pekin | $56 | $111 | |
State Farm | $59 | $101 | |
State Farm | $59 | $97 | |
GEICO | $76 | $128 | |
GEICO | $97 | $182 | |
State Farm | $124 | $211 | |
Auto-Owners | $51 | $91 | |
GEICO | $67 | $149 | |
GEICO | $85 | $129 | |
GEICO | $89 | $202 | |
State Farm | $80 | $118 | |
National General | $75 | $139 | |
State Farm | $62 | $132 | |
State Farm | $71 | $158 | |
Auto-Owners | $86 | $135 | |
GEICO | $96 | $183 | |
State Farm | $56 | $107 | |
GEICO | $84 | $185 | |
State Farm | $72 | $122 | |
Kemper | $79 | $171 | |
Erie | $62 | $90 | |
State Farm | $64 | $117 | |
State Farm | $59 | $84 | |
State Farm | $79 | $143 | |
State Farm | $71 | $120 | |
State Farm | $81 | $139 | |
State Farm | $79 | $153 | |
American National | $57 | $168 | |
State Farm | $93 | $124 | |
State Farm | $68 | $111 | |
Farm Bureau | $87 | $152 | |
GEICO | $82 | $130 | |
State Farm | $52 | $87 | |
State Farm | $70 | $112 | |
PEMCO | $76 | $144 | |
State Farm | $72 | $135 | |
GEICO | $57 | $92 | |
American National | $62 | $116 |
List of the best auto insurance companies
Best car insurance overall: Erie
Best car insurance for customer service: Amica
Best car insurance for customizing coverage: Travelers
Best car insurance for bundling: Auto-Owners
Best car insurance for families with teens: GEICO
Best car insurance after an accident: State Farm
Best car insurance for veterans and military families: USAA
Best usage-based car insurance: Progressive
Best car insurance for remote workers: Nationwide
Best car insurance for luxury vehicles: AIG
Car insurance reviews for the best companies
Here’s a full list of our top car insurance company ratings, along with each company’s average rates and customer service scores (which were based on ratings from the J.D. Power Auto Claims Satisfaction Survey and NAIC Complaint Index).
Company | Policygenius rating | Average premium | AM Best Financial Strength Rating | J.D. Power Claims Satisfaction | NAIC Complaint Index |
|---|---|---|---|---|---|
5.0 out of 5 | $1,044 | A++ | 890 | 1.02 | |
4.9 out of 5 | $1,181 | A+ | 893 | 1.27 | |
4.8 out of 5 | $1,141 | A++ | 882 | 0.67 | |
4.7 out of 5 | $1,574 | A+ | 903 | 0.66 | |
4.7 out of 5 | $1,165 | A++ | 865 | 0.66 | |
4.7 out of 5 | $1,416 | A+ | NA | 0.14 | |
4.7 out of 5 | NA | A+ | NA | 0.97 | |
4.7 out of 5 | $1,192 | A++ | 874 | 1.07 | |
4.7 out of 5 | $1,262 | A+ | 896 | 0.06 | |
4.7 out of 5 | $1,351 | A++ | 854 | 0.37 | |
4.6 out of 5 | $1,040 | A | NA | 0.22 | |
4.5 out of 5 | $1,526 | A+ | NA | 0.17 | |
4.5 out of 5 | $689 | A | NA | 0.51 | |
4.4 out of 5 | $2,084 | A | 882 | 0.81 | |
4.4 out of 5 | $1,780 | A+ | 861 | 0.65 | |
4.4 out of 5 | $1,041 | A | NA | 0.10 | |
4.3 out of 5 | $1,479 | A | 874 | 0.16 | |
4.3 out of 5 | $1,475 | A+ | 868 | 0.39 | |
4.2 out of 5 | $2,055 | A+ | 889 | 0.73 | |
4.2 out of 5 | $1,405 | A | 865 | 0.76 | |
4.1 out of 5 | $1,923 | A | 870 | 1.18 | |
4.0 out of 5 | $1,341 | A- | NA | 0.00 | |
3.9 out of 5 | $1,987 | A- | NA | 1.18 | |
3.8 out of 5 | $959 | B | NA | 1.04 | |
3.7 out of 5 | $2,134 | A | 847 | 0.64 | |
3.5 out of 5 | $1,898 | A+ | 838 | 5.57 | |
3.3 out of 5 | $2,577 | A | 830 | 0.71 | |
3.1 out of 5 | $916 | NA | NA | 1.79 | |
2.9 out of 5 | $1,967 | NA | NA | 0.00 |
Companies ordered from highest to lowest Policygenius scores
Comparing the best car insurance companies
If you’ve narrowed your search down to a couple of companies, check out our car insurance reviews and compare two companies at the same time.
Buyer’s guide to finding the best auto insurance
How to choose the best car insurance company
No matter what the best auto insurance means for you, Policygenius makes it easy to find coverage that fits your needs and the most competitive car insurance rates. We’ll show you online quotes from the biggest auto insurance companies, and help you choose the policy that’s best for you.
Remember, you can always switch car insurance companies if and when your needs change. Price and affordability may be more important to you than exceptional customer service right now, but that could change down the line.
While you’re deciding on the best car insurance, the questions that you should ask about each company are:
1. Do this company’s rates fit into my budget?
According to recent income data from the Census Bureau, car insurance may take up more than 2% of the typical household income. [1] But other groups like senior-aged drivers, who can live on on a fixed income, may pay an even larger part of their earnings on insurance.
2. Is it easy to file a claim with this company?
Customer service is an important part of picking the best car insurance policy. Even if you have the cheapest coverage, it won’t matter if your company is unresponsive or combative when it comes time to actually file a claim for damage.
The best-rated car insurance companies balance good customer service with affordable rates and great coverage offerings. Our auto insurance guides, rankings, and reviews can give you a good idea of how a company performs. If you can afford it, it can be worth paying a little more for a company that's known for good service.
3. Does this company offer the protection I need?
The best auto insurance company for you should offer the right types of coverage for your needs. Besides the minimum amounts of coverage your state requires, you’ll probably need comprehensive and collision coverage. You may also need more car insurance if you:
Need to insure more than one vehicle: Some companies have set limits on how many cars you can insure on one policy. If you have multiple vehicles at home, you might need to find a company that’s willing to insure them all together.
Have a teenage driver at home: Teen drivers are expensive to insure, so look for a company that offers usage-based car insurance or special discounts for new drivers.
Have a history of accidents, tickets, or other violations: You may need high-risk or non-standard insurance if you have past violations on your record, like multiple accidents or a DUI.
Drive a leased or financed vehicle: A lessor or lender will require you to get full-coverage insurance or gap coverage, and sometimes even new car replacement coverage.
The good news is that since you can cancel your auto insurance at any time, you can always get a new policy with the right amount of coverage as your needs change.
What is the best place to get car insurance?
Our top car insurance companies include Erie, GEICO, State Farm, and Progressive. But no matter which company you choose, the best place to get car insurance is online. That’s because getting online quotes from a marketplace like Policygenius is the best way to see the most competitive car insurance rates from large and small car insurance companies, all at the same time.
What do people look for in the best insurance company?
A 2022 Policygenius survey asked 1,500 drivers what the most important factors were when choosing an auto insurance company. The largest percentage (27%) said that claims satisfaction scores were the number one factor in choosing car insurance.
We also found that having a bad claims experience is the main reason why policyholders would decide to switch to a new policy.
Behind claims satisfaction, 17% of drivers wanted the ability to bundle more than one policy. Another 17% said that cheap coverage was the most important factor when choosing a car insurance company.
Car insurance trends in 2023
Rising inflation and supply chain issues affecting repair shops and car manufacturers have contributed to more expensive car insurance rates in recent years, and drivers are increasingly looking to switch companies to avoid the price crunch and save money.
According to a recent J.D. Power report on car insurance shopping trends, car insurance shopping hit a high in the fourth quarter of 2022, and 4% of consumers said they had switched car insurance carriers.
The car insurance companies with the most loyal customers were USAA, MAPFRE, NJM, Amica, and Erie, while National General, Progressive, COUNTRY, Hanover, and Liberty Mutual showed lower loyalty.
Read more about what Policygenius has written about the car insurance landscape:
Auto Insurance Affordability Survey
We surveyed insured drivers on whether they were worried about being able to afford their insurance and found that 40% are worried, including 55% of younger drivers.
2022 Road Rage Survey
We polled Americans on aggressive driving and found that 3 in 10 people have been victims of road rage, while 48% of people have driven aggressively themselves.
The Best and Worst States to Own an Electric Vehicle
Our rankings take into account local tax incentives, EV ownership, charging stations, and electricity and insurance costs.
Car insurance costs by driving history
Any accidents or violations on your record will make your car insurance more expensive, but not every company handles your driving record the same way. If your insurance goes up after an accident, DUI, or other violation, consider switching to a company with better rates for your driving history when your policy is up for renewal.
Incident | Best and cheapest company | Average monthly rate |
|---|---|---|
Adding a newly licensed driver | Farm Bureau | $154 |
At-fault Accident | NJM | $111 |
Driving with a suspended license | State Farm | $124 |
Driving with an open container | State Farm | $115 |
Driving with expired registration | Auto-Owners | $107 |
Driving without Lights | State Farm | $106 |
DUI | State Farm | $132 |
Failure to stop at a red light | State Farm | $108 |
Following too closely | Auto-Owners | $108 |
Hit and Run | State Farm | $127 |
Not at-fault Accident | State Farm | $97 |
Passing a school bus | State Farm | $111 |
Reckless Driving | State Farm | $124 |
Speeding Ticket | State Farm | $110 |
Violations sorted from lowest to highest price increases.
What affects your car insurance rates?
Although auto insurance companies charge different rates — and some are better than others for certain drivers — most of the time companies determine rates according to:
While it’s true that companies use these factors when they calculate your car insurance, local laws where you live might keep insurance providers from using certain factors, like your gender or credit history, to determine your rates.
What are the different types of car insurance?
All of our picks for the top car insurance companies have the basic coverage that every driver needs in order to be fully protected. It’s a good idea to get familiar with the different types of car insurance coverage before you shop for insurance, so you know exactly what’s going into your policy.
Coverage type | What it does |
|---|---|
Property damage liability | Covers the cost of the other party's repairs if you're at-fault in a car accident |
Bodily injury liability | Pays for the other party's medical bills and related expenses if you cause an accident |
Uninsured/underinsured motorist coverage | Covers the costs if you're hit by a driver without insurance, or who doesn't have enough insurance to pay for the damage |
Collision coverage | Pays for damage to your own car after an accident, even if you were the one at-fault |
Comprehensive coverage | Covers damage to your car not caused by a collision, like damage from extreme weather, fire or theft |
Personal injury protection | Required in no-fault states, pays for your own medical expenses after an accident |
MedPay | Available in at-fault states, pays for medical bills after an accident, usually up to a limited amount |
→ Learn more about the different types of car insurance coverage
Common car insurance endorsements
Nearly every car insurance company — and all of our picks for the best companies — offers optional coverage add-ons (called endorsements) that drivers can add to a basic policy.
Accident forgiveness: Sometimes offered as a loyalty perk, this keeps your rates from going up after your first at-fault accident.
Classic car coverage: This is a separate kind of car insurance policy specifically designed for classic cars, which need unique coverage thanks to their speciality parts and infrequent use.
Gap coverage: Gap insurance helps pay off the remainder of your lease or loan if your car is totaled (it may be required by your lessor or lender).
Full glass coverage: Waives the deductible for repairs if your windows or windshield are cracked or damaged (in some states, you never pay a deductible on safety glass repairs)
Mechanical breakdown protection: While it excludes normal wear and tear, mechanical breakdown protection covers the cost of repairs that aren’t normally covered by insurance, like when your engine, brakes, or suspension has issues.
New or better car replacement coverage: When you have new or better car replacement and your vehicle is totaled within the first few years of its life, you’ll be paid enough to replace it with the same model, or a car that’s one model year younger.
Non-owner insurance coverage: Not exactly an endorsement, this type of car insurance is for people who use friends’ cars or rentals for short periods of time but don’t have one of their own.
Original equipment manufacturer parts coverage: Usually available for newer vehicles, OEM coverage ensures that any repairs to your vehicle will use original parts from the manufacturer wherever possible.
Custom equipment coverage: Aftermarket additions to your car, like a fancy stereo system or a custom paint job, won’t be covered by insurance unless you add a custom equipment endorsement.
Rental reimbursement coverage: Covers the cost of temporary transportation, like a rental or a taxi, while your regular car is being repaired after a covered accident.
Rideshare insurance coverage: Extends your regular car insurance coverage if you drive for a rideshare service like Uber or Lyft.
Roadside assistance coverage: Covers emergency roadside services like towing, jumpstarts, lockout help, and transportation if you’re stranded.
What car insurance discounts are available with the top companies?
All the best car insurance companies have at least a few discounts available. You should compare the discounts each company offers and look out for ones that apply to you.
There are a few popular discounts offered by most of the best insurance providers. Common ways to save on car include discounts for:
Being a good student: Students who keep up a high grade point average can get lower insurance rates.
Being a safe driver: If you’re accident-free and have a clean record for a certain amount of time, you can earn major savings.
Bundling more than one policy: Bundling your car insurance policy with another type of coverage can earn you a big discount at most companies.
Being affiliated with certain organizations or groups: You may be able to get an insurance discount if a professional organization, alumni association, bank or credit union, or another group you're a part of partners with a specific company.
Insuring more than one vehicle: Most companies offer a multi-car discount for insuring two or more cars on the same policy.
Making automatic payments: If you opt to pay your premiums automatically, you’ll save money.
Living away from home as a student: Save money if you have a child who is away at school without a car.
Owning a vehicle with safety features: Most insurance companies offer a range of discounts for having different types of safety equipment in your car.
Paying your entire premium at once: Most companies offer a paid-in-full discount to drivers who pay their entire premium at the start of the policy.
Remaining loyal to the same company: You can earn lower rates for renewing your policy with the same company year after year.
Signing up for usage-based insurance: Drivers who allow their insurance companies to monitor their driving habits can get discounts for safe driving.
Switching companies: Some car insurance companies offer a discount if you switch to them from another provider.
Taking a defensive driving course: Insurance companies offer discounts to drivers who complete accredited driving safety courses.
Your profession: If you're a teacher, veteran, doctor, or a lawyer, your insurance provider may offer you a discount.
Overview of the discounts offered by the best companies
Safety discounts offered by the best companies
Accident-free discount: Amica, Auto-Owners, GEICO, Nationwide, Progressive, State Farm, Travelers, USAA
Defensive driving course discount: Amica, GEICO, Nationwide, State Farm, Travelers
Driver discounts offered by the best companies
Affinity discount: GEICO, Travelers
Child of a legacy insured: Amica
Emergency deployment discount: GEICO, USAA
Federal employee discount: GEICO
Good student discount: Amica, Auto-Owners, Erie, GEICO, Nationwide, Progressive, Travelers, USAA
Homeowner discount: Amica, Progressive, Travelers
Military discount: GEICO, USAA*
Student away-from-home: Amica, Auto-Owners, Progressive, Travelers
Vehicle discounts offered by the best companies
Anti-theft system discount: Amica, Auto-Owners, Erie, GEICO, Nationwide, State Farm
Hybrid/EV discount: Travelers
New car discount: Amica, Travelers, USAA
Policy discounts offered by the best companies
Automatic payments discount: Amica, Auto-Owners, Nationwide, Progressive
Bundling discount: Amica, Auto-Owners, Erie, GEICO, Nationwide, Progressive, State Farm, Travelers, USAA
Electronic billing discount: Amica, Auto-Owners, Nationwide, Progressive
Loyalty discount: Amica, Travelers, USAA
Multi-vehicle discount: Amica, Auto-Owners, GEICO, Progressive, State Farm, Travelers
Online quote discount: Auto-Owners, Progressive, Travelers
Paid-in-full discount: Amica, Auto-Owners, Erie, Progressive, Travelers
Usage-based discounts offered by the best companies
GEICO: DriveEasy
Erie: YourTurn
Nationwide: SmartRide
Progressive: Snapshot
State Farm: Drive Safe & Save
Travelers: IntelliDrive
USAA: SafePilot
Frequently asked questions
What is the best car insurance company?
Erie is the best car insurance company of any we reviewed. USAA is the only company that we gave a higher rating to, but USAA only offers insurance to drivers in the military, veterans, and their families.
Which insurance company has the highest customer satisfaction rating?
USAA consistently has the highest claims satisfaction rating, according to J.D. Power. Besides USAA, Amica and State Farm have high claims satisfaction scores.
What are the main types of auto coverage?
The main types of car insurance are bodily injury and property damage liability coverage, uninsured motorist coverage, personal injury protection, and medical payments coverage. Comprehensive and collision coverage, which make up a full-coverage policy are also very common.
