5 Best Car Insurance Companies

Key Points:

• These insurance providers earned some of the top satisfaction ratings in our consumer survey.
• Comparing quotes from multiple car insurance companies is the most effective way to find the best rates.
• Life changes such as moving, selling your house, getting married, and being involved in an accident are ideal times to reassess your car insurance policy.

As you look for the right car insurance provider, remember that the cost of auto coverage varies based on a variety of factors. That’s why it’s so important to compare car insurance quotes from at least a few companies before making your decision.

In this article, we’ll highlight the five best auto insurance companies, which were chosen based on our expert team’s many hours of research. We’ll discuss each provider’s industry reputation, coverage options, average costs, and customer service along the way.

Best Car Insurance Companies

Based on our research on factors including pricing and customer satisfaction, these are the five best car insurance companies:

*Averages are for married 35-year-old drivers with good credit and clean driving records.

Our overall rating is on a 5.0-star scale. We recommend these auto insurers for various reasons, but they all offer high-quality coverage at affordable rates. Keep in mind that there are plenty of smaller regional providers that may meet your needs as well.

Here are more details on what makes our top-rated auto insurance companies stand out:

#1 State Farm: Best Overall Provider

Founded: 1922

AM Best rating: A++

Better Business Bureau (BBB) rating: A+

According to the National Association of Insurance Commissioners (NAIC), State Farm is the country’s largest auto insurer. The company held 16.84 percent of the market share in 2022, writing more than $46 billion in premiums. State Farm has more than 19,000 local agents spread across every state except Massachusetts and Rhode Island.

Along with standard coverage options, State Farm offers:

• 24/7 roadside assistance: Emergency services include towing, fluid delivery, tire changes, jump-starting, and winching.
• Rideshare coverage: This specialty insurance is for customers who use their vehicles for services like Uber and Lyft.
• Rental car reimbursement: If your vehicle needs extensive repairs, State Farm helps cover the cost of a rental car.

State Farm also offers a well-reviewed telematics program called Drive Safe & Save™. Drivers can unlock savings of up to 30 percent–including a discount for signing up–when they renew their policies if they maintain safe driving habits during the program.

State Farm Pros And Cons

Here are some pros and cons of purchasing auto coverage from State Farm:

State Farm Average Annual Cost

According to our research, married 35-year-old drivers with good credit and clean driving records pay an average of $1,481 per year for full-coverage car insurance through State Farm. That’s $142 more than the 2021 average, but it’s still well below the national average of $1,730.

State Farm Customer Reviews

State Farm has an excellent customer service reputation backed by both online reviews and industry studies. In the J.D. Power 2023 U.S. Insurance Shopping Study℠, the company earned 877 out of 1,000 points, placing it first among large insurers. The study polled customers about their satisfaction with every step of the insurance shopping process.

State Farm also performed well in the J.D. Power 2022 U.S. Auto Claims Satisfaction Study℠, with 882 out of 1,000 points. The average score for insurance providers was 873. The study included feedback from more than 8,000 customers.

State Farm In Our Car Insurance Survey

In August 2022, we polled 6,923 people in a nationwide car insurance satisfaction survey. About 19 percent of respondents had State Farm policies, which made it the most popular provider in our survey.

Here’s how customers rated State Farm in our survey compared with average rankings across all companies:

#2 USAA: Best For Military Members

Founded: 1922

AM Best rating: A++

BBB rating: No rating

USAA ranks high on our list because of its sterling customer service reputation, breadth of coverage options, and affordable rates. However, the company’s car insurance policies are only available to members of the military, veterans, and their immediate families.

In addition to standard auto coverage products, USAA offers roadside assistance, rental car reimbursement, and classic car insurance. It also sells accident forgiveness coverage, which may protect your rate from increases after your first at-fault accident. To be eligible for it, you must be accident-free with USAA for five years.

USAA Pros And Cons

Here are some pros and cons of USAA auto insurance:

USAA Average Annual Cost

Average costs for USAA auto coverage come in well below the national averages for full and minimum coverage. Again, these low rates come with the caveat that only active-duty military, veterans, and their immediate family members are eligible for the company’s insurance policies.

USAA Customer Reviews

Although its eligibility restrictions prevent USAA from being ranked in J.D. Power studies, the company gets high scores. In the 2023 U.S. Insurance Shopping Study, USAA had the second highest score with 874 points. The company also had the highest score in 10 out of 11 regions in the J.D. Power 2022 U.S. Auto Insurance Study℠ (it had the second highest score in California).

USAA In Our Car Insurance Survey

Nearly six percent of respondents in our 2022 survey were USAA policyholders. Here’s how they rated the company:

#3 Geico: Best For Discounts

Founded: 1936

AM Best rating: A++

BBB rating: A+

Geico is the third largest auto insurer in the U.S., according to the NAIC. The company wrote more than $38 billion in premiums in 2022. We give Geico our Best for Discounts award because of the many savings opportunities it offers. These include discounts for having multiple vehicles on a policy, staying accident-free for five years, and even having an air bag. Many of Geico’s discounts save drivers 15 to 25 percent off their premiums.

Geico also sets itself apart from competitors by offering mechanical breakdown insurance, or MBI. This add-on coverage is similar to an extended warranty, covering the costs of certain repairs caused by mechanical issues rather than collisions or wear and tear. Geico MBI plans are available for vehicles under 15 months old with fewer than 15,000 miles.

Geico Pros And Cons

Below are some positives and negatives that come with Geico car insurance:

Geico Average Annual Cost

Most drivers can likely find affordable rates with Geico. This includes younger motorists and drivers with bad credit. The 16 discounts Geico offers make its rates even more appealing.

Geico Customer Reviews

Geico has a reputation for solid customer service. In the J.D. Power Auto Insurance Study, the company rated above average in all but three regions (the mid-Atlantic, the Southeast, and Texas). Geico was slightly below average in the J.D. Power Insurance Shopping Study, with 857 points (861 was the average score for large insurers).

Geico In Our Car Insurance Survey

Geico was the third most popular provider in our survey, with 16 percent of respondents being Geico policyholders. Here’s how Geico fared:

#4 Travelers: Best Coverage Options

Founded: 1853

AM Best rating: A++

BBB rating: A

Travelers holds strong industry ratings and offers a wide range of discounts. We give the company our Best Coverage Options award because it features an array of add-on protections to complement its standard offerings.

Along with rental car coverage, accident forgiveness, and two levels of 24/7 roadside assistance, Travelers gives you the option of purchasing guaranteed asset protection (gap insurance). This type of policy covers the difference between the actual cash value (ACV) of your vehicle and what you owe on your loan or lease in the event of a covered total loss.

Travelers Pros And Cons

These are some of the advantages and disadvantages of Travelers auto insurance:

Travelers Average Annual Cost

Travelers has the highest average costs of our five best car insurance companies. Its average cost for full coverage is about four percent below the national average, but minimum-liability coverage through Travelers costs $730 per year on average. That’s nearly $100 more than the national average of $635.

Travelers Customer Reviews

Travelers receives mixed reviews from customers online. The company also didn’t perform well in the J.D. Power Insurance Shopping Study or the J.D. Power Auto Claims Satisfaction Study, coming in below the industry average for both.

Travelers In Our Car Insurance Survey

Only about two percent of the respondents in our survey were Travelers auto insurance policyholders. However, their ratings paint a positive picture of doing business with the company:

#5 Erie Insurance: Best Basic Coverage

Founded: 1925

AM Best rating: A+

BBB rating: A+

Erie offers high-quality auto coverage in 12 states and Washington, D.C. Despite its limited availability, our team gives the company high marks for its coverage options and affordable rates.

Aside from standard car insurance options, Erie offers coverages that forgive your first accident or reduce your deductible by $100 for each consecutive year you don’t file a claim (up to $500). There’s also Erie Rate LockⓇ, which keeps your rate the same unless you change your address or the drivers on your policy.

Erie Insurance Pros And Cons

Here are a few pros and cons of buying auto coverage through Erie:

Erie Insurance Average Annual Cost

Erie brings good coverage at rates that tend to be below national averages. The average annual cost of a full-coverage car insurance policy with the company ($1,238) is about 28 percent lower than the national average.

Erie Insurance Customer Reviews

Ratings in J.D. Power consumer studies put Erie in a positive light. The company had the highest ranking in the mid-Atlantic and North Central regions of the J.D. Power Auto Insurance Study. Erie also took second place among midsize insurers in the J.D. Power Insurance Shopping Study with 878 points.

Erie Insurance In Our Car Insurance Survey

Only about one percent of respondents in our survey had Erie auto insurance. That said, they rated the company very highly in most categories:

Average Cost Of Car Insurance

Based on our research, the average annual cost of full-coverage car insurance is $1,730. This average is based on a married 35-year-old driver with good credit and a clean driving record. Car insurance rates are determined by an array of factors related to you and your vehicle.

Factors That Affect Car Insurance Costs

In most states, the cost of car insurance depends on the following criteria:

• Location: Car insurance rates vary widely by city and state. If you live in a densely populated area, the higher number of car accidents also means higher insurance premiums.
• Driving history: Recent at-fault accidents, moving violations, or DUIs lead to higher rates.
• Age: Younger motorists, especially teen drivers, have higher car insurance rates because they’re more likely to cause accidents.
• Gender: In 44 states, the gender listed on your driver’s license can affect insurance rates. Drivers who identify as males typically pay more.
• Marital status: Single drivers pay more for coverage than their married counterparts in most states.
• Vehicle: Newer vehicles with modern safety features and technology are more expensive to insure than older cars. High-end luxury vehicles also have higher insurance costs.

Common Car Insurance Discounts

All of our top-rated car insurance companies offer discounts to help drivers save money on coverage. Check for the following common discounts as you look for cheap car insurance:

• Bundling discount: Customers who have homeowners, renters, or life insurance with the same provider as their auto insurance often get discounted rates.
• Multi-vehicle discount: Having more than one vehicle on your auto policy is another way to save.
• Pay-in-full discount: Some insurers offer discounts for paying your full premium up front instead of monthly.
• Good student discount: Younger drivers who maintain good grades can unlock significant discounts.
• Defensive driving discount: Many auto insurers offer discounts to customers who complete defensive driving courses.
• Military discount: Active-duty military members may receive discounted auto insurance rates.
• Safe driver discount: Whether you use a telematics program or just go a certain period of time without an at-fault accident, being a good driver is a great way to save on car insurance premiums.
• New car discount: Having a car that’s no more than three model years old can earn you a discount from some providers.

Types Of Car Insurance Coverage

Nearly every state (Virginia and New Hampshire are the exceptions) requires some form of car insurance. In states that do, drivers must carry a minimum amount of liability insurance. Some states also require underinsured/uninsured motorist coverage and personal injury protection (PIP) or medical payments coverage (MedPay).

Here are some details on the six standard types of car insurance coverage:

How To Shop For Car Insurance Quotes

Car insurance rates are different for everyone, so it pays to compare quotes from multiple companies. We recommend considering both national and local providers. Local independent insurance agents can also give you personalized auto insurance quotes and recommendations.

There are a few times when reassessing your auto insurance policy is an especially good idea. The following changes could significantly impact your coverage costs:

• Moving
• Buying or selling a home
• Improving a poor credit score
• Buying a new car
• Being involved in a car accident
• Getting married
• Getting a DUI

Best Car Insurance: FAQ

How We Rate Insurers

Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

• Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.

*Data accurate at time of publication.