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Why You Can Trust the MarketWatch Guides Team
Here’s a breakdown of how we reviewed and rated the top auto insurance providers
130
Providers ReviewedOur team looked at over 100 of the top auto insurance providers in the U.S., from national providers like USAA, Travelers and State Farm to regional providers like Erie Insurance.
8,500
Data Points AnalyzedTo properly score each auto insurance provider, we looked at cost data, claims processes, customer review scores, industry standing, available discounts, coverages and add-ons.
800
Research HoursOur team put in the time so you don’t have to, evaluating cost data, reading customer reviews and researching companies to determine the most reliable options for coverage.
8,500
Customers SurveyedWe asked thousands of customers to describe their experience with their auto insurance provider to understand how real customers feel about their insurers.
Learn more about our methodology and editorial guidelines.
What Is the Best Car Insurance Company?
We found that Travelers is the best car insurance company for most drivers in 2024. The provider offers a stellar customer service experience for policyholders, along with affordable pricing and a wide range of coverage options to fit most drivers’ needs.
Car Insurance Company Ratings
The table below shows our top-rated auto insurance companies:
| Car Insurance Company | Best For | Overall Rating (Out of 10) | Average Full-Coverage Rate (Annual) | Visit Review |
|---|---|---|---|---|
| Best Car Insurance For Most Drivers | 9.5 | $1,595 | Learn More | |
| Best Car Insurance Customer Service | 9.4 | $1,657 | Learn More | |
| Best Liability Car Insurance | 9.4 | $1,458 | Learn More | |
| Best Military Car Insurance | 9.2 | $1,512 | Learn More | |
| Best Full Coverage Car Insurance | 9.1 | $1,433 | Learn More | |
| Best Value Car Insurance | 9.1 | $1,596 | Learn More | |
| Best Car Insurance For Families | 9.1 | $1,851 | Learn More | |
| Best Car Insurance For Young Drivers | 9 | N/A | Learn More | |
| Best Car Insurance Coverage | 9 | $2,030 | Learn More | |
| Best Car Insurance For High-Risk Drivers | 8.9 | $1,411 |
| Car Insurance Company | Best For | Overall Rating (Out of 10) | Average Full-Coverage Rate (Annual) | Visit Review |
|---|---|---|---|---|
| Best Car Insurance For Most Drivers | 9.5 | $1,595 | Learn More | |
| Best Car Insurance Customer Service | 9.4 | $1,657 | Learn More | |
| Best Liability Car Insurance | 9.4 | $1,458 | Learn More | |
| Best Military Car Insurance | 9.2 | $1,512 | Learn More | |
| Best Full Coverage Car Insurance | 9.1 | $1,433 | Learn More | |
| Best Value Car Insurance | 9.1 | $1,596 | Learn More | |
| Best Car Insurance For Families | 9.1 | $1,851 | Learn More | |
| Best Car Insurance For Young Drivers | 9 | N/A | Learn More | |
| Best Car Insurance Coverage | 9 | $2,030 | Learn More | |
| Best Car Insurance For High-Risk Drivers | 8.9 | $1,411 |
Read our full methodology.
The Best Car Insurance Companies of 2024
While Travelers is the highest-rated provider overall, the best car insurance company for a specific person can vary heavily depending on one’s overall needs. In the sections below, we give you an in-depth look into each of the top auto insurance companies on our list.
We combine our own research with industry ratings from J.D. Power studies and the National Association of Insurance Commissioners (NAIC) Complaint Index, which is based on the number of customer complaints a provider receives relative to its market share. The average NAIC score is 1.0, so any number below 1.0 means the company receives a lower amount of complaints, and any number above 1.0 means it receives more.
1. Travelers
Best Car Insurance For Most Drivers
Best Car Insurance For Most Drivers
Pros Strong industry ratings Accident forgiveness coverage Can bundle with homeowners insurance and more Cons Low customer rating on the Better Business Bureau (BBB) Not available in every state
Is Travelers Insurance Good?
Travelers is a reliable car insurance company with a good balance of low pricing, discounts and coverage options. Regardless of your driver profile or location, you can find great affordable policies with the company with plenty of discounts and unique add-on options.
Read More: Travelers Car Insurance Review
| Ratings Category | Score (Out of 10) |
|---|---|
| Industry Standing | 9 |
| Availability | 10 |
| Coverage | 9.8 |
| Cost | 9.8 |
| Customer Experience | 8.7 |
| Overall Rating | 9.5 |
Travelers Reputation And Customer Satisfaction
J.D. Power 2023 Insurance Shopping Study: 848 out of 1,000 (lower than average among large insurers)
J.D Power 2023 Claims Satisfaction: 871 out of 1,000 (lower than average)
NAIC Complaint Index: 12.22 (higher than average)
AM Best rating: A++ (superior)
The company has a fair industry reputation and customer satisfaction ratings according to our nationwide surveys. According to our most recent consumer survey, they have well above average customer service ratings:
| Category | Travelers Average | Insurance Company Industry Average |
|---|---|---|
| Overall customer satisfaction | 4.2 | 4.2 |
| Affordability | 3.8 | 3.7 |
| Discounts and savings programs | 3.7 | 3.7 |
| Selection of coverage and add-ons | 3.9 | 3.9 |
| Car insurance shopping process | 4 | 3.9 |
| Company website | 4 | 3.9 |
*In our August 2022 customer satisfaction survey, we asked drivers about their experience with their car insurance provider. Of the nearly 7,000 drivers polled, about 1.5% reported having a Travelers policy.
In our same study, out of the 46% of customers that filed a claim, Travelers scored a 4.4 out of 5 for claims satisfaction. This score ties it with Erie Insurance for the second best customer claims experience.
Travelers’ score of 848 out of 1000 in the J.D. Power 2023 Insurance Shopping Study, which is 13 points lower than the segment average. With strong ratings in the New York and Mid-Atlantic regions and scores well below average in all other regions, Travelers had mixed results overall in the J.D. Power 2023 Auto Insurance Study.
Our team reached out to Travelers about these ratings, as well as its low BBB score and high NAIC complaint index, but did not yet receive a response.
Travelers Auto Insurance Coverage And Discounts
Available in 43 states with no exclusions for those that can purchase a policy, Travelers offers the six standard types of car insurance:
- Liability car insurance
- Collision insurance
- Comprehensive insurance
- Medical payments coverage (MedPay)
- Personal injury protection (PIP)
- Underinsured/uninsured motorist coverage
Travelers offers unique discounts. If you have an electric vehicle and a usage-based insurance program Intellidrive, you can save up to 30%. You can also add on coverage if your vehicle is used for ridesharing and non-owner coverage.
Travelers Car Insurance Cost
On average, Travelers insurance offers the fourth lowest auto insurance rates overall among large and widely available insurers and eighth when considering regional companies. Below, we compare Travelers insurance rate rankings among large and regional providers:
| Coverage Profile | Average Monthly Cost | Ranking |
|---|---|---|
| Minimum Liability | $54 | 10th |
| Full Coverage | $133 | 6th |
| Young Drivers | $453** | 7th |
| Seniors | $134*** | 10th |
| After A Speeding Ticket | $164* | 7th |
| After An Accident | $176* | 6th |
| After A DUI | $185* | 3rd |
| With Bad Credit | $252* | 7th |
*These monthly car insurance rates are for full-coverage policies
**For a 16-year-old driver
***This is based on 2022 cost data
Note: Costs presented are averages for 35-year-old drivers with a good driving record and credit unless otherwise stated.
2. State Farm
Best Car Insurance Customer Service
Overview
Pros Generous discounts, especially for young drivers A++ financial strength rating from AM Best Nationwide network of local agents Cons Mixed State Farm insurance reviews
Is State Farm Insurance Good?
Overall, our team found that State Farm is the second best car insurance provider in the nation. The company is known for its low overall rates and a strong industry and customer service reputation. It also has one of the widest selections of discount offerings on the market.
Read More: State Farm Car Insurance Review
| Ratings Category | Score (Out of 10) |
|---|---|
| Industry Standing | 10 |
| Availability | 9.8 |
| Coverage | 9.2 |
| Cost | 9.3 |
| Customer Experience | 9.3 |
| Overall Rating | 9.4 |
State Farm Reputation And Customer Satisfaction
J.D. Power 2023 Insurance Shopping Study: 877 out of 1,000 points (first place among large insurers)
J.D Power 2023 Claims Satisfaction: 891 out of 1,000 (higher than average)
NAIC Complaint Index: 0.78 (lower than average)
AM Best rating: A++ (superior)
Founded in 1922, State Farm is the largest car insurance company in the U.S. Overall, State Farm has a good reputation for customer service in our most recent customer satisfaction survey:
| Category | State Farm Average | Insurance Company Industry Average |
|---|---|---|
| Overall customer satisfaction | 4.2 | 4.2 |
| Affordability | 3.8 | 3.7 |
| Discounts and savings programs | 3.8 | 3.7 |
| Selection of coverage and add-ons | 3.9 | 3.9 |
| Car insurance shopping process | 4 | 3.9 |
| Company website | 3.9 | 3.9 |
State Farm also had an average rating of 4.2 for auto claims satisfaction in our study and is tied for third place for the most likely company to be recommended to friends and family. It also ranked fourth for consumer trust in the event of a claim.
State Farm ranks relatively high in J.D. Power studies and often comes first among national providers in the 2023 U.S. Insurance Shopping Study℠ and has particularly high scores for most regions in the 2023 U.S. Auto Insurance Study℠.
State Farm Auto Insurance Coverage And Discounts
Auto insurance coverage from State Farm is available with no exclusions for residents in every except Rhode Island and Massachusetts. Along with the six main types of auto insurance coverage, State Farm offers unique options for classic or antique cars and for travel expenses. It also offers a discount program that monitors your driving called Drive Safe & Save which can save you up to 30% on premiums for safe driving.
State Farm Car Insurance Cost
In terms of cost, State Farm ranks fifth among large insurers and ninth when including regional providers. Below, we’ll summarize their rankings for various driver profiles and coverage levels:
| Coverage Profile | Average Monthly Cost | Ranking |
| Minimum Liability | $44 | 8th |
| Full Coverage | $138 | 9th |
| Young Drivers | $460** | 8th |
| Seniors | $120*** | 9th |
| After A Speeding Ticket | $156* | 5th |
| After An Accident | $163* | 3rd |
| After A DUI | $183* | 2nd |
| With Bad Credit | $375* | 15th |
*These monthly car insurance rates are for full-coverage policies
**For a 16-year-old driver
***This is based on 2022 cost data
Read More: How Much Does State Farm Car Insurance Cost?
3. Erie Insurance
Best Liability Car Insurance
Overview
Pros Strong industry ratings Wide selection of add-on coverages Many discounts available Cons Not available in every state No usage-based insurance option
Is Erie Insurance Good?
While availability is limited to 12 states, Erie is our third pick for the best auto insurance company. It has a great service reputation and especially affordable minimum liability coverage for most drivers. The company also offers several distinctive add-on features not offered by other competitors.
Read more: Erie Car Insurance Review
| Ratings Category | Score (Out of 10) |
|---|---|
| Industry Standing | 8.9 |
| Availability | 8.1 |
| Coverage | 10 |
| Cost | 9.9 |
| Customer Experience | 9.1 |
| Overall Rating | 9.4 |
Erie Reputation And Customer Satisfaction
J.D. Power 2023 Insurance Shopping Study: 878 points out of 1,000 (second place among midsize insurers)
J.D Power 2023 Claims Satisfaction: 902 out of 1,000 (second overall)
NAIC Complaint Index: 0.81 (lower than average)
AM Best rating: A+ (superior)
Though it’s a regional insurer that only serves 12 states, Erie has an excellent industry reputation for customer service. Respondents from our customer satisfaction survey with an Erie insurance policy were very satisfied with the company:
| Category | Erie Average | Insurance Company Industry Average |
|---|---|---|
| Overall customer satisfaction | 4.4 | 4.2 |
| Affordability | 3.9 | 3.7 |
| Discounts and savings programs | 3.9 | 3.7 |
| Selection of coverage and add-ons | 4.1 | 3.9 |
| Car insurance shopping process | 4.1 | 3.9 |
| Company website | 3.8 | 3.9 |
*About 1.4% of total respondents in our August 2022 auto insurance survey were Erie policyholders.
The company tied with American Family for first in claims satisfaction with a score of 4.5 out of 5. We also found that they had the second highest claims outcome satisfaction out of the companies surveyed.
Erie consistently scores well in J.D. Power studies. Its score of 878 out of 1000 points was the second-highest score in the Insurance Shopping Study. The insurer also ranked well in the Auto Insurance Study, posting the highest score in the North Central and Mid-Atlantic regions, as well as a strong score in the Southeast region.
Erie Auto Insurance Coverage And Discounts
Erie also has a robust selection of add-ons and car insurance discounts. In particular, it offers great benefits for young drivers with discounts for being under 21 and in college. It also offers add-on coverage for auto glass repair and a rate lock feature that allows you to keep your rates low after a claim as long as no changes are made to the policy.
Note: Erie insurance is only available in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin and Washington, DC. Otherwise, Erie has no exclusions for who can purchase coverage.
Erie Auto Insurance Cost
For overall affordability, Erie ties with USAA for third among both large and regional insurers. However, this depends on coverage and driver profile, so below we’ve broken down their ranks for key areas:
| Coverage Profile | Average Monthly Cost | Ranking |
|---|---|---|
| Minimum Liability | $33 | 5th |
| Full Coverage | $122 | 4th |
| Young Drivers | $355** | 3rd |
| Seniors | $112*** | 4th |
| After A Speeding Ticket | $141* | 2nd |
| After An Accident | $164* | 4th |
| After A DUI | $206* | 6th |
| With Bad Credit | $277* | 10th |
*These monthly car insurance rates are for full-coverage policies
**For a 16-year-old driver
***This is based on 2022 cost data
4. USAA
Best Military Car Insurance
Overview
Pros Affordable rates High performance on J.D. Power customer surveys Highly rated mobile app A++ financial rating Cons Not available to everyone SafePilot only available in 25 states Not the cheapest option after a DUI
Is USAA a Good Insurance Company?
USAA ranked fourth overall and provides excellent car insurance for military members, veterans and their immediate families. They regularly have some of the highest customer satisfaction ratings in industry studies and have competitive pricing for all coverage levels, especially for senior drivers.
Read more: USAA Car Insurance Review
| Ratings Category | Score (Out of 10) |
|---|---|
| Industry Standing | 8.9 |
| Availability | 8 |
| Coverage | 9.5 |
| Cost | 9.7 |
| Customer Experience | 8.9 |
| Overall Rating | 9.2 |
USAA Reputation And Customer Satisfaction
J.D. Power 2023 Insurance Shopping Study: 874 out of 1,000 points (second place among large insurers)
J.D Power 2023 Claims Satisfaction: 900 out of 1,000 (tied for third)
NAIC Complaint Index: 1.19 (slightly higher than average)
AM Best rating: A++ (superior)
Out of large insurers, USAA outperformed most companies for customer satisfaction in industry studies. USAA also earned high marks from policyholders who participated in our 2022 car insurance survey:
| Category | USAA Average | Insurance Company Industry Average |
|---|---|---|
| Overall customer satisfaction | 4.3 | 4.2 |
| Affordability | 3.8 | 3.7 |
| Discounts and savings programs | 3.8 | 3.7 |
| Selection of coverage and add-ons | 3.9 | 3.9 |
| Car insurance shopping process | 4 | 3.9 |
| Company website | 4 | 3.9 |
USAA tied for third place for overall claims satisfaction with Travelers in our study, and it was rated fourth overall for customer service during claim. We also found that they were the second most trusted auto insurance provider.
In addition to scoring higher than all other insurance companies in every region on the J.D. Power Auto Insurance Study, its score of 874 out of 1,000 points in the J.D. Power Insurance Shopping study was second highest overall.
USAA Auto Insurance Coverage And Discounts
USAA offers its insurance products to current and past members of the military along with their spouses and children in all 50 states. USAA offers six standard coverage options along with some additional unique coverages for classic cars and other widely available add-ons. The company also offers discount incentives for those who have low mileage, drivers in the military and students under 25 years old.
USAA Auto Insurance Cost
USAA is tied with Erie Insurance as the third most affordable insurer among widely available and regional providers. While this is the case, it ranks differently for various coverage levels and driver profiles:
| Coverage Profile | Average Monthly Cost | Ranking |
|---|---|---|
| Minimum Liability | $32 | 4th |
| Full Coverage | $126 | 5th |
| Young Drivers | $536** | 11th |
| Seniors | $97*** | 1st |
| After A Speeding Ticket | $152* | 3rd |
| After An Accident | $182* | 8th |
| After A DUI | $227* | 8th |
| With Bad Credit | $228* | 5th |
*These monthly car insurance rates are for full-coverage policies
**For a 16-year-old driver
***This is based on 2022 cost data
5. Nationwide
Best Full Coverage Car Insurance
Overview
Pros Car insurance coverage available in 46 states Many standard and add-on car insurance options Offers usage-based insurance A+ rating from the BBB and A rating from AM Best Cons Higher average insurance costs Mixed customer reviews
Is Nationwide a Good Insurance Company?
Nationwide ranked fifth overall and is our pick for the best full-coverage car insurance due to its low overall rates for comprehensive policies. The company is also a solid choice for drivers who are looking for discounts and usage-based programs to lower the cost of car insurance.
Read more: Nationwide Car Insurance Review
| Ratings Category | Score (Out of 10) |
|---|---|
| Industry Standing | 8.5 |
| Availability | 9.8 |
| Coverage | 8.9 |
| Cost | 9.7 |
| Customer Experience | 8.9 |
| Overall Rating | 9.1 |
Nationwide Reputation And Customer Satisfaction
J.D. Power 2023 Insurance Shopping Study: 861 out of 1,000 points (third place among large insurers)
J.D Power 2023 Claims Satisfaction: 875 out of 1,000 (below average)
NAIC Complaint Index: 0.46 (lower than average)
AM Best rating: A (excellent)
Based on industry studies, Nationwide has fairly average customer satisfaction scores, and its NAIC customer complaints score is among the lowest we’ve found for large insurers. It also ranked close to average for customer satisfaction in our August 2022 insurance survey results:
| Category | Nationwide Average | Insurance Company Industry Average |
|---|---|---|
| Overall customer satisfaction | 4.1 | 4.2 |
| Affordability | 3.7 | 3.7 |
| Discounts and savings programs | 3.7 | 3.7 |
| Selection of coverage and add-ons | 3.9 | 3.9 |
| Car insurance shopping process | 3.9 | 3.9 |
| Company website | 3.8 | 3.9 |
*Only about 3% of respondents in our August 2022 survey reported having a Nationwide policy.
Nationwide customers in our survey reported that their claims services were average overall and the provider tied in fourth place for settlement satisfaction.
For the J.D. Power Insurance Shopping Study, Nationwide’s score of 861 out of a possible 1,000 points was the same as the industry average. With below average ratings in each region where the company ranked, Nationwide fared worse on the 2023 Auto Insurance study.
We contacted Nationwide for comment on these low scores, but did not yet receive a response.
Nationwide Auto Insurance Coverage And Discounts
Nationwide is available to customers in every state except for Alaska, Louisiana and Massachusetts. In terms of add-on coverages, Nationwide offers a vanishing deductible option that lowers its cost the longer you go without a claim. It also provides discounts of up to 40% with its telematics program SmartRide and a pay-per-mile car insurance option that can help you save.
Nationwide Auto Insurance Cost
When considering large and regional providers, Nationwide ranked sixth for affordability. While it’s generally a low-cost provider, prices may vary depending on a variety of factors. We’ve broken down their cost rankings for key areas below:
| Coverage Profile | Average Monthly Cost | Ranking |
|---|---|---|
| Minimum Liability | $44 | 9th |
| Full Coverage | $119 | 3rd |
| Young Drivers | $403** | 5th |
| Seniors | $114*** | 7th |
| After A Speeding Ticket | $157* | 6th |
| After An Accident | $197* | 9th |
| After A DUI | $274* | 10th |
| With Bad Credit | $173* | 2nd |
*These monthly car insurance rates are for full-coverage policies
**For a 16-year-old driver
***This is based on 2022 cost data
6. Geico
Best Value Car Insurance
Overview
Pros A++ financial strength rating from AM Best and A- rating from the BBB Low rates for most drivers High policy limits Usage-based insurance discount Highly rated mobile app Cons Average J.D. Power claims ratings Not always the cheapest for people with poor credit or recent accidents Fewer local agents than other companies
Is Geico Good Car Insurance?
As one of the largest insurance providers in the country, Geico is a great option for car insurance coverage. We found that the company has affordable rates, a large array of discounts and a telematics program that can help drivers save on premiums.
Read More: Geico Car Insurance Review
| Ratings Category | Score (Out of 10) |
|---|---|
| Industry Standing | 9.7 |
| Availability | 10 |
| Coverage | 8.4 |
| Cost | 9.1 |
| Customer Experience | 8.8 |
| Overall Rating | 9.1 |
Geico Reputation And Customer Satisfaction
J.D. Power 2023 Insurance Shopping Study: 857 out of 1,000 points (below average among large insurers)
J.D Power 2023 Claims Satisfaction: 871 out of 1,000 (below average)
NAIC Complaint Index: 0.82 (lower than average)
AM Best rating: A++ (superior)
Behind only State Farm and Progressive, Geico is the third largest auto insurer in the U.S., and has fairly high customer satisfaction. The insurer received strong scores in our customer satisfaction survey:
| Category | Geico Average | Insurance Company Industry Average |
|---|---|---|
| Overall customer satisfaction | 4.1 | 4.2 |
| Affordability | 3.7 | 3.7 |
| Discounts and savings programs | 3.7 | 3.7 |
| Selection of coverage and add-ons | 3.8 | 3.9 |
| Car insurance shopping process | 3.9 | 3.9 |
| Company website | 4 | 3.9 |
*16% of the 6,923 people that participated in our August 2022 car insurance survey reported having a Geico car insurance policy.
Claims satisfaction with Geico was average compared to the companies we studied. Even so, Geico customers were the fourth most likely to recommend the company to friends and family.
Geico’s ratings are consistently strong in J.D. Power studies. The insurer’s score of 857 out of 1,000 points in the 2023 Insurance Shopping Study is nearly on par with the industry average of 861.
Geico also ranked well in the 2023 Auto Insurance Study as one of the top providers of usage-based insurance along with strong scores in Florida, California and the New England and North Central regions.
We reached out to Geico for comment on its below-average score, but did not receive a response.
Geico Auto Insurance Coverage And Discounts
Geico offers all the standard types of insurance coverage at some of the highest limits available nationwide. The company makes it easy to add commercial coverage to your policy and a mechanical breakdown insurance option to cover what insurance doesn’t. In addition, it has one of the largest discount arrays on the market with excellent incentives for federal employees.
Geico Auto Insurance Cost
For both minimum and full coverage, Geico ranks seventh in terms of affordability among large and regional providers. Even so, the company is more affordable for some drivers than others, so we’ve listed our ratings for different insurance profiles:
| Coverage Profile | Average Monthly Cost | Ranking |
|---|---|---|
| Minimum Liability | $38 | 7th |
| Full Coverage | $133 | 7rd |
| Young Drivers | $442** | 6th |
| Seniors | $112*** | 5th |
| After A Speeding Ticket | $178* | 8th |
| After An Accident | $224* | 10th |
| After A DUI | $303* | 11th |
| With Bad Credit | $216* | 4th |
*These monthly car insurance rates are for full-coverage policies
**For a 16-year-old driver
***This is based on 2022 cost data
7. American Family Insurance
Best Car Insurance For Families
Overview
Pros Affordable policy choices Several car insurance discounts Many add-on coverage options Cons Mixed customer reviews Only available in 19 states
Is American Family Insurance Good?
American Family car insurance reviews show that the company is a reputable provider with nearly 100 years of experience. It’s known for providing affordable policy choices, several discounts that are attractive to families, and a good selection of add-on coverage options.
Read more: American Family Car Insurance Review
| Ratings Category | Score (Out of 10) |
|---|---|
| Industry Standing | 8.4 |
| Availability | 8.1 |
| Coverage | 9.4 |
| Cost | 9.5 |
| Customer Experience | 9.2 |
| Overall Rating | 9.1 |
American Family Reputation And Customer Satisfaction
J.D. Power 2023 Insurance Shopping Study: 867 out of 1,000
J.D Power 2023 Claims Satisfaction: 882 out of 1,000 (above average among midsize insurers)
NAIC Complaint Index: 0.30 (lower than average)
AM Best rating: A (excellent)
With strong performances in customer reviews and industry studies, American Family has an excellent company reputation. Though only a small number of respondents in our customer satisfaction survey had an American Family policy, the company received the highest ratings of any provider in the study:
| Category | American Family Average | Insurance Company Industry Average |
|---|---|---|
| Overall customer satisfaction | 4.5 | 4.2 |
| Affordability | 4.2 | 3.7 |
| Discounts and savings programs | 4.1 | 3.7 |
| Selection of coverage and add-ons | 4.3 | 3.9 |
| Car insurance shopping process | 4.3 | 3.9 |
| Company website | 4.2 | 3.9 |
*In our August 2022 customer survey, 22% of respondents had a policy from American Family insurance.
In that same study, American Family tied with Erie Insurance for first in claims satisfaction with a score of 4.5 out of 5. It also scored highest for satisfaction with claims payments out of all providers.
With a score of 867 out of 1000 points, American Family scored above average for regional insurance companies on the 2023 J.D. Power U.S. Insurance Shopping Study. In the Auto Insurance Study, the provider ranked above average in the Central and Southwest regions and below average in the North Central region.
We reached out to American Family, but the company did not comment on these low scores.
American Family Auto Insurance Coverage And Discounts
American Family car insurance coverage can be purchased in 19 states. Accidental death and dismemberment coverage is available as a unique add-on option. It also offers many discounts tailored to families with generational discounts and incentives for teens, students and low mileage drivers.
American Family Car Insurance Cost
Among large and midsize providers in America, American Family ranks twelfth overall for affordability. However, different types of drivers can get cheaper coverage than others from the company. Below, we’ve highlighted their rankings and costs for other profiles:
| Coverage Profile | Average Monthly Cost | Ranking |
|---|---|---|
| Minimum Liability | $67 | 13th |
| Full Coverage | $154 | 10th |
| Young Drivers | $461** | 9th |
| Seniors | $138*** | 11th |
| After A Speeding Ticket | $192* | 10th |
| After An Accident | $181* | 7th |
| After A DUI | $205* | 5th |
| With Bad Credit | $240* | 6th |
8. Liberty Mutual
Best Car Insurance For Young Drivers
Overview
Pros Variety of auto policies and add-on coverage Nationwide availability Good AM Best and BBB ratings Numerous discounts, especially for young drivers Cons Average customer satisfaction ratings Premiums can be high
Is Liberty Mutual Insurance Good?
Liberty Mutual has great car insurance for young drivers. While newer drivers often pay more for car insurance, Liberty Mutual has plenty of discount programs that help offset those costs.
Read more: Liberty Mutual Car Insurance Review
| Ratings Category | Score (Out of 10) |
|---|---|
| Industry Standing | 8.9 |
| Availability | 10 |
| Coverage | 9.5 |
| Cost | 9 |
| Customer Experience | 8.2 |
| Overall Rating | 9 |
Liberty Mutual Reputation And Customer Satisfaction
J.D. Power 2023 Insurance Shopping Study: 865 out of 1,000 points (second place among large insurers)
J.D Power 2023 Claims Satisfaction: 866 out of 1,000 (below average)
NAIC Complaint Index: 2.96 (higher than average)
AM Best rating: B++ (good)
Overall, Liberty Mutual offers below average customer service according to industry studies. However, the customers that participated in our customer satisfaction survey were fairly satisfied with their experience, giving the company about average scores in each category:
| Category | Liberty Mutual Average | Insurance Company Industry Average |
|---|---|---|
| Overall customer satisfaction | 4.1 | 4.2 |
| Affordability | 3.8 | 3.7 |
| Discounts and savings programs | 3.8 | 3.7 |
| Selection of coverage and add-ons | 3.9 | 3.9 |
| Car insurance shopping process | 3.9 | 3.9 |
| Company website | 3.8 | 3.9 |
*Nearly 5% of those polled in our August 2022 customer satisfaction survey reported having a Liberty Mutual insurance policy.
In our study, we found that Liberty Mutual ranked slightly below average for claims satisfaction with a score of 4.1 out of 5.
Compared to other insurers in its segment, Liberty Mutual performs fairly well in J.D. Power studies. Coming in just behind State Farm, the company’s rating of 865 out of 1000 in the 2023 Insurance Shipping Study ranked it second among large providers. In the 2023 Auto Insurance Study, Liberty Mutual posted average or below average scores in every region.
Our team reached out to Liberty Mutual for a comment on these scores but did not yet receive a response.
Liberty Mutual Auto Insurance Coverage and Discounts
Liberty Mutual offers the six main types of car insurance coverage in all 50 states. Unlike other insurers, the company offers original parts replacement as add-on coverage to ensure manufacturer parts are used in repairs. It also offers particularly good discounts for those under 25 years old, with programs like its usage-based insurance RightTrack and Steer Clear course.
Liberty Mutual Car Insurance Cost
Liberty Mutual doesn’t make its pricing data readily available to our research provider, but our team did receive a quote from Liberty Mutual for a full-coverage policy for $351 per month, or $4,212 annually*. Liberty Mutual’s premiums are relatively expensive for most drivers, however teens and young drivers can find generally cheaper rates with Liberty Mutual than with other insurance providers.
*This quote was for a 35-year-old driver who owns a 2022 Toyota Camry and drives 12,500 miles per year.
9. Progressive
Best Car Insurance Coverage
Overview
Pros A+ financial strength rating from AM Best Wide selection of coverage options Usage-based insurance discount Highly rated mobile app Cons Average customer service ratings Snapshot program can raise rates for some drivers
Is Progressive Insurance Good?
Progressive car insurance can be worth it for many drivers, as the company offers one of the widest selections of policies and add-on coverage options among large providers. It also has reasonable car insurance rates for those with DUIs, and policies can be bought completely online.
Read More: Progressive Car Insurance Review
| Ratings Category | Score (Out of 10) |
|---|---|
| Industry Standing | 9.5 |
| Availability | 10 |
| Coverage | 9.5 |
| Cost | 7.8 |
| Customer Experience | 8.7 |
| Overall Rating | 9 |
Progressive Reputation And Customer Satisfaction
J.D. Power 2023 Insurance Shopping Study: 853 out of 1,000 points (below average among large insurers)
J.D Power 2023 Claims Satisfaction: 870 out of 1,000 (below average)
NAIC Complaint Index: 0.89 (lower than average)
AM Best rating: A+ (superior)
Participants in our survey and industry surveys with Progressive gave the company lower than average ratings. The table below highlights Progressive’s survey results:
| Category | Progressive Average | Insurance Company Industry Average |
|---|---|---|
| Overall customer satisfaction | 4.1 | 4.2 |
| Affordability | 3.7 | 3.7 |
| Discounts and savings programs | 3.7 | 3.7 |
| Selection of coverage and add-ons | 3.9 | 3.9 |
| Car insurance shopping process | 4 | 3.9 |
| Company website | 3.9 | 3.9 |
*Progressive insured the second-most number of participants of any provider in our August 2022 customer satisfaction survey.
Progressive customers reported lower than average ratings of their claims services with a score of 4.1 out of 5 in our study. They were also some of the least satisfied with their claims payouts.
And though it’s highly rated on many customer review platforms, Progressive tends to have below-average ratings in J.D. Power studies. With a rating of 853 out of a possible 1,000 points on the J.D. Power Insurance Shopping Study, Progressive ranked just below the industry average of 861 for large insurance companies.
In the Auto Insurance Study, the company consistently ranked below average in all regions. Our team reached out to Progressive about these ratings, but did not receive a response.
Progressive Auto Insurance Coverage And Discounts
Progressive auto insurance coverage is available in all 50 states with no restrictions. The company offers special coverages compared to other large providers for mechanical breakdowns, pet injuries, and original part replacements. It also has a telematics program that’s available in most states called Progressive Snapshot that can lower costs up to $231per year on average.
Progressive Car Insurance Cost
Progressive car insurance ranks toward the bottom of our list for affordability at 11th out of large and regional providers. While it isn’t affordable for some drivers, others may be able to find better rates. We’ve provided their cost rankings for different insurance profiles below:
| Coverage Profile | Average Monthly Cost | Ranking |
|---|---|---|
| Minimum Liability | $58 | 11th |
| Full Coverage | $169 | 11th |
| Young Drivers | $845** | 14th |
| Seniors | $143*** | 12th |
| After A Speeding Ticket | $212* | 11th |
| After An Accident | $254* | 11th |
| After A DUI | $212* | 7th |
| With Bad Credit | $331* | 13th |
10. Country Financial Insurance
Best Car Insurance For High-Risk Drivers
Pros Affordable overall rates Great claims satisfaction ratings Good add-on coverage options Cons Only available in 19 states
Is Country Financial Insurance Good?
Country Financial car insurance is known for being an especially affordable option for high-risk drivers. If you’re in the provider’s service area and recently had an accident, DUI or ticket, it may be the best option for you.
| Ratings Category | Score (Out of 10) |
|---|---|
| Industry Standing | 8.8 |
| Availability | 8.1 |
| Coverage | 8.9 |
| Cost | 9.7 |
| Customer Experience | 8.4 |
| Overall Rating | 8.9 |
Country Financial Reputation And Customer Satisfaction
J.D. Power 2023 Insurance Shopping Study: N/A
J.D Power 2023 Claims Satisfaction: 894 out of 1,000 (above average)
NAIC Complaint Index: 0.25 (lower than average)
AM Best rating: A+ (superior)
Though Country Financial wasn’t included in our consumer satisfaction survey or the J.D. Power Insurance Shopping study, it did appear in the nationwide Auto Insurance Study, where its score of 828 out 1,000 in the North Central region was above the industry average of 825.
Country Financial Auto Insurance Coverage And Discounts
You can get Country Financial auto insurance in 19 states across the United States. Along with basic add-ons, the agency offers extra liability coverage through umbrella insurance and valuables coverage. You can also get lower premiums through discounts specific to your occupation, which isn’t common.
Note: Country Financial car insurance is only available in Alabama, Alaska, Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri,Nevada, North Dakota, Oklahoma, Oregon, Tennessee, Washington and Wisconsin.
Country Financial Car Insurance Cost
Country Financial is the cheapest option on our list, ranking second overall for affordability among widely available insurers and regional agencies. However, it offers better value coverage for different driver profiles. So, we’ve broken down their rankings for different driver types and policy coverages:
| Coverage Profile | Average Monthly Cost | Ranking |
|---|---|---|
| Minimum Liability | $30 | 2nd |
| Full Coverage | $118 | 2nd |
| Young Drivers | $283** | 2nd |
| Seniors | $109*** | 3rd |
| After A Speeding Ticket | $154* | 4th |
| After An Accident | $159* | 2nd |
| After A DUI | $176* | 1st |
| With Bad Credit | $171* | 1st |
*These monthly car insurance rates are for full-coverage policies
**For a 16-year-old driver
***This is based on 2022 cost data
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Car Insurance Company Reviews
If you’re shopping for insurers and need even more options to choose from, we’ve provided scores and reviews for other companies our team has reviewed:
| Auto Insurance Company | Score | Availability |
|---|---|---|
| 21st Century | 7.5 | California Only |
| A-MAX | 7.8 | Texas Only |
| AAA | 8.6 | AAA Members Only |
| Acceptance | 7.3 | 15 States |
| Allstate | 8.8 | 50 States |
| Auto-Owners | 8.9 | 26 States |
| Dairyland | 7.9 | 38 States |
| Elephant | 8.4 | 7 States |
| Farmers | 8.6 | 50 States |
| Fremont | 7.5 | Michigan Only |
| Go Auto | 7 | 4 States |
| Good2Go | 8.3 | 44 States |
| Kentucky Farm Bureau | 8 | Kentucky Only |
| Mercury | 7.9 | 11 States |
| Metromile | 7.4 | 8 States |
| Root | 7.7 | 38 States |
| Safety | 8.2 | 3 States |
| The General | 8 | 46 States |
| The Hartford | 8.2 | AARP Members Only |
Best Car Insurance Companies By State
Because car insurance companies’ coverage and rates vary by region, the top national auto insurers may not be the best option for you.
We analyzed the insurance offerings available in different states and compiled rankings of the best auto insurance companies in 14 states:
- Best car insurance companies in Arizona
- Best car insurance companies in California
- Best car insurance companies in Georgia
- Best car insurance companies in Kansas
- Best car insurance companies in Louisiana
- Best car insurance companies in Michigan
- Best car insurance companies in Nevada
- Best car insurance companies in New York
- Best car insurance companies in North Carolina
- Best car insurance companies in North Dakota
- Best car insurance companies in Pennsylvania
- Best car insurance companies in Texas
- Best car insurance companies in Utah
- Best car insurance companies in Virginia
Car Insurance Buying Guide
Our editorial team spent hundreds of hours combing through data to assess the landscape of the insurance industry. Through this research, we isolated the most important factors to consider when shopping for car insurance, each of which we highlight in detail in the sections below.
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How To Find The Best Car Insurance For You
Being a top-rated national insurer doesn’t mean a car insurance company offers the best coverage for your needs and budget. With the amount of information drivers need to know about policies, finding the best car insurance for their situation can be tricky.
To find the best car insurance for you, follow these 10 steps:
1. Consider Your Timing
Shopping for coverage at the right time can impact the price of your insurance. Since auto insurance rates change frequently, we recommend comparing your rates about every three to six months to see if your current insurer is still the best fit for you.
If you belong to a high-risk driving category, you should wait to shop around after your driver profile looks better to insurers. Improving your credit score and applying three years after your most recent accident or violation can help you save more on car insurance premiums.
2. Know How Much Car Insurance You Need
Most states — except for New Hampshire and Virginia — require drivers to carry some car insurance in order to legally drive. Each state sets its own basic minimum requirements, but they usually include liability coverage. Additionally, some states require drivers to hold uninsured motorist coverage and Personal Injury Protection (PIP) insurance.
We recommend you carry full coverage car insurance as opposed to liability insurance to ensure you’re protected no matter what kind of situation occurs.
Read More: How Much Car Insurance Do I Need?
3. Consider Smaller Local Car Insurance Companies
Typically car insurance companies with more available policies across the country come with more add-on benefits, discounts and better reputations. However, it’s good to compare large and regional companies in your area because you may get more unique coverages, better deals and a more personal customer experience with a smaller insurer.
4. Read Car Insurance Reviews
Once you know what’s available, the best way to determine which companies to choose from are from reading reviews.
Check forums for local agencies to get a good idea of what customers think. You can also use industry resources which can include studies from J.D. Power, NAIC complaints ratings and AM Best Financial Strength reports to understand their reputation on a larger scale.
Instructor of business at Touro University, Angelo DeCandia, MBA, says drivers should also look into how easy it is to file a claim with a provider, as well as its customer service reputation and any helpful amenities, like mobile apps.
5. Know Where You Can Purchase Auto Insurance
Auto insurance companies sell coverage through a variety of channels. Understanding the benefits and drawbacks of each, which are highlighted in the table below, can play a major role in the price and personalization of your coverage:
| Type of Car Insurance Provider | Main Benefit | Main Drawback |
|---|---|---|
| Online | Allows for easy quote comparison and buying online | Less personalized service |
| Brand agencies | Local expert agents can help guide you through the buying process for a particular company | Focused on selling one specific brand |
| Independent agencies | Personalized service that allows you to compare multiple companies they work with | More client-focused than brand agencies but still focused on company compensation |
| Insurance brokers | Personalized policy matching services that are purely client-focused. | Transactions must be completed with your chosen company or one of their agents |
6. Get Multiple Auto Insurance Quotes
To find the highest value auto insurance, it’s always a good idea to compare car insurance quotes between multiple companies. In our interview with Prachi Gala, who is an assistant professor of marketing in the Coles College of Business at Kennesaw State University, recommended the following:
“When comparing car insurance quotes, consumers should consider coverage limits, deductibles and premiums to ensure adequate protection within budget constraints. Evaluate the insurer’s reputation for customer service, claims processing and financial stability. Examine available discounts. Assess policy features like roadside assistance and rental car coverage. Consider the insurer’s online tools and mobile apps for convenience. Lastly, check customer reviews and seek recommendations to gauge overall satisfaction with the insurer’s services.”
7. Understand How Your Driving Profile Affects Rates
Your driver profile, location and external factors like market conditions can cause rates to vary greatly. Young drivers, drivers with bad credit scores and drivers from other high-risk categories (recent accident, speeding ticket or DUI) regularly pay more for auto insurance.
8. Look For Coverage Add-Ons That Fit Your Situation
The more coverage options you have to choose from, the better off you are. While most providers come with standard policies, find companies with add-ons that best fit your specific situation.
Purchasing add-ons like roadside assistance is also a worthwhile investment if you break down on the road. However, doctor of science, Elaine Luther, a professor of business management at Point Park University says that when it comes to buying car insurance, “ultimately, it requires an assessment of what you can afford and what level of risk and/or protection you are comfortable with.”
9. Check For Available Discounts
Companies offer a wide range of car insurance discounts, so look for ones that apply to your situation. For example, some providers offer better discounts for students, while others offer discounts for military and occupational affiliations.
In addition to this, Emily Goenner, an assistant professor of business communications recommends shopping often to take advantage.
“You may qualify for new discounts or changes in company ratings, so be sure to review your policies annually,” she said.
Some of the most common car insurance discounts provide savings opportunities for members of the military, those who insure multiple vehicles, full-time students who maintain at least a “B” average and drivers who go a certain amount of time without an accident or violation.
10. Try Usage-Based Car Insurance
Many companies offer telematics insurance programs that can give you up to 40% off based on your driving habits. If you have a short commute and practice good driving habits, you could also save money with pay-per-mile insurance or a safe-driving program.
You can also purchase non-owner car insurance policies to cover you if you often drive vehicles that aren’t yours. And if you’re only driving for a short period of time, you can get short-term policies anywhere from a day to a month.
11. Determine The Lowest Rate For Your Desired Coverage Level
After shopping for quotes from multiple companies, you can determine the lowest overall costs by combining the base costs available for your driving profile with available discounts that can lower the pricing even further. That said, remember that lower costs don’t necessarily mean better coverage.
Steven Gattuso, an assistant professor of economics and finance at Canisius University recommends this when comparing quotes from companies:
“When comparing prices, make sure that you are comparing apples to apples. You may have one insurer who tells you that they can save you money on the premium but does so by reducing coverage.”
How Does Car Insurance Work?
Car insurance is an agreement between you and your insurance provider for specific vehicle coverage in exchange for payment. Your car insurance policy outlines what is covered and what you can file claims for.
The sections below serve as a guide to help those who are seeking auto insurance to find the best coverage to fit their needs and budget.
Read More: What Does Car Insurance Cover?
Types of Car Insurance
There are six main types of car insurance that can make up a policy’s coverage:
| Type of Coverage | Description |
| Liability | Bodily injury liability insurance (BI) pays the medical expenses for other drivers and their passengers after an accident where you’re at fault. Property damage liability insurance (PD) covers the damages to other drivers’ vehicles after an accident where you’re at fault. |
| Collision | Collision insurance pays for damages from a collision with another vehicle or road hazard. |
| Comprehensive | Comprehensive insurance pays for damages from theft, vandalism, animals or natural disasters. |
| Medical payments | Medical payments coverage (MedPay) covers medical bills and funeral expenses for you and your passengers after an accident. |
| Personal injury protection | Personal injury protection (PIP) covers medical bills for you and your passengers after an accident. PIP can also cover lost wages. |
| Underinsured/uninsured motorist | Underinsured/uninsured motorist coverage covers your damages when you’re in an accident with a driver who is underinsured or doesn’t have any insurance. |
Car Insurance Add-Ons
Aside from the main kinds of coverage, most insurers offer optional coverages you can add to your policy. Below, we’ve detailed a complete list of what you might find in your search:
- Accident forgiveness: This optional coverage prevents your car insurance premium from increasing after an accident.
- Total loss protection: If you’re in an accident where another driver is at fault and your car is deemed a total loss, this coverage helps to replace your vehicle.
- Gap insurance: If your car is totaled and its actual cash value is less than the amount left on your loan, this insurance helps cover the difference.
- Rental car reimbursem*nt: If your car is in the shop, this coverage helps pay for a rental car typically for up to 30 days.
- Roadside assistance: If you have a breakdown while on the road, this coverage provides roadside assistance like towing services, jump-starts, tire changes and lockout assistance.
- Mechanical breakdown insurance: This coverage is essentially an extended warranty andprovides you coverage when your vehicle breaks down during regular use.
- Rideshare insurance: This plan pays for damages when using your vehicle for rideshare apps like Lyft or Uber.
- Original parts replacement: When your car is being repaired, this ensures it will only use original manufacturer parts used to make your vehicle.
- New car replacement: In the case of a total loss, you’ll get a completely new car to replace your old one.
- Classic car insurance: If you have a vintage vehicle, this allows you to insure it for an agreed value as long as you stay under a certain mileage.
- Commercial car insurance: If you use your personal vehicle for business, this will cover you for damages during commercial activities.
- Death and dismemberment: If you cause death or dismemberment in an accident, this will pay for any damages.
- Umbrella insurance: This type of coverage provides extra liability protection if you’re involved in a lawsuit that exceeds the costs of basic policies.
- Auto glass repair: When your windshield or other glass is damaged, this covers replacement and repairs.
- Valuables protection: If you have valuable items you regularly keep in your car and they’re damaged in an accident, this pays for repair or replacement costs.
- Pet coverage: If your pet is injured or killed in your vehicle during an accident, this provides you coverage up to a certain amount.
- Diminishing deductible: Paying for this add-on will allow your deductible to decrease the longer you go without a claim.
If you don’t have coverage already, we recommend getting roadside assistance, since it’s typically the most affordable to purchase with car insurance. However, whether you should purchase other add-on coverages depends on your situation and risk tolerance.
Read More: Best Roadside Assistance Plans
Car Insurance Cost
Car insurance prices depend on many factors, including your age, location, credit score (in most states), driving record and type of vehicle. To help you find the best car insurance, we’ll go into detail on rates for car insurance in each state and the factors that go into determining the price of your policy.
Car Insurance Cost by State
While car insurance rates by state will vary, your quote may also be higher or lower depending on where you live in the state. The map below features 2024 estimates for the average full and minimum coverage rates in each state.
We’ve also listed the average full and minimum coverate rates for each state in the table below. Click “read more” to see the full rate table.
| State | Average Minimum Coverage Rate Estimate | Average Full Coverage Rate Estimate |
|---|---|---|
| Alabama | $519 | $1,997 |
| Alaska | $564 | $1,947 |
| Arizona | $700 | $2,411 |
| Arkansas | $493 | $2,276 |
| California | $591 | $2,473 |
| Colorado | $544 | $2,377 |
| Connecticut | $1,008 | $2,334 |
| Delaware | $1,283 | $3,058 |
| District of Columbia | $859 | $2,495 |
| Florida | $1,396 | $3,437 |
| Georgia | $779 | $2,205 |
| Hawaii | $441 | $1,496 |
| Idaho | $384 | $1,486 |
| Illinois | $514 | $1,839 |
| Indiana | $462 | $1,794 |
| Iowa | $298 | $1,802 |
| Kansas | $519 | $2,186 |
| Kentucky | $777 | $2,568 |
| Louisiana | $1,092 | $3,599 |
| Maine | $428 | $1,410 |
| Maryland | $938 | $2,080 |
| Massachusetts | $702 | $2,258 |
| Michigan | $1,274 | $3,717 |
| Minnesota | $509 | $2,028 |
| Mississippi | $501 | $1,948 |
| Missouri | $576 | $2,237 |
| Montana | $463 | $2,313 |
| Nebraska | $376 | $1,951 |
| Nevada | $1,349 | $3,124 |
| New Hampshire | $476 | $1,585 |
| New Jersey | $1,278 | $2,674 |
| New Mexico | $544 | $2,093 |
| New York | $929 | $2,253 |
| North Carolina | $511 | $1,725 |
| North Dakota | $471 | $2,149 |
| Ohio | $399 | $1,508 |
| Oklahoma | $537 | $2,586 |
| Oregon | $992 | $2,181 |
| Pennsylvania | $501 | $2,250 |
| Rhode Island | $980 | $2,489 |
| South Carolina | $738 | $2,074 |
| South Dakota | $359 | $2,557 |
| Tennessee | $445 | $1,795 |
| Texas | $765 | $2,556 |
| Utah | $809 | $2,283 |
| Vermont | $332 | $1,282 |
| Virginia | $603 | $1,945 |
| Washington | $578 | $1,760 |
| West Virginia | $586 | $2,191 |
| Wisconsin | $437 | $1,891 |
| Wyoming | $311 | $1,733 |
What Affects Car Insurance Costs?
Below we’ve broken down the factors that affect car insurance costs:
- Age: Drivers under the age of 25 and over the age of 55 are typically given higher insurance premiums, as these drivers are considered higher risk.
- Credit score: With the exception of California, Hawaii, Massachusetts and Michigan, those with poor credit deal with higher premiums.
- Driving history: If you have any at-fault accidents, moving violations or DUI/DWIs on your record, a car insurance policy will cost more.
- Coverage level: The higher your coverage level is, the more you’ll pay.
- Provider chosen: Provider costs for car insurance vary widely depending on their coverage, availability and more.
- Location: Coverage requirements and driving and traffic statistics for your location can cause rates to vary widely.
- Vehicle brand, model and age: The newer and more reliable your brand and car model is, the lower insurance costs will be.
- Vehicle type: In the case of an accident, insurance will pay for part repairs and replacements. Certain types of vehicles can be more costly.
- Deductible: A lower deductible leads to a higher premium.
- Gender: Male drivers are charged more in most states due to statistics showing them to be more susceptible to accidents and fatal crashes.
- Marital status: Married drivers pay slightly less than single drivers in most states due to perceived financial stability.
While this list may seem long, it ultimately comes down to three things according to Assistant Professor, Steven Gattuso, who teaches economics and finance at Canisius University:
“Auto insurance is based on the driver, the vehicle and the location. The driver variables include, obviously, your driving history — including moving violations, DUIs and more — but also includes things like your credit score and your status. Location is also a factor, with variables such as weather, crime and traffic coming into play.”
Why Is Car Insurance So Expensive?
From February 2023 to February 2024, car insurance rates have risen 20.5% for consumers according to the Bureau of Labor Statistics. Inflation across the country has pushed prices higher due to the lingering effects of the COVID-19 pandemic. The cost of goods has gone up 3.2% over the same period.
Stephen Yao, an assistant professor of insurance and risk management at the University of Central Arkansas, says the effects of inflation will most likely stick around:
“Once inflation is reflected in the general price levels, prices tend to stay at a higher level,” he said. “Even [a] lower inflation rate still means price levels continue to increase.”
Read More: What To Do About Rising Insurance Rates
Best Auto Insurance Companies: The Bottom Line
According to our comprehensive analysis, the 10 best car insurance companies are Travelers, State Farm, Erie Insurance, USAA, Nationwide, Geico, Liberty Mutual, American Family, Progressive and Country Financial. Each company offers a wide selection of insurance coverage options at affordable prices along with good customer service.
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Our Insurance Experts
Angelo DeCandiaInstructor of Business at Touro University
Prachi GalaAssistant Professor of Marketing and Professional Sales at Kennesaw State University
Elaine LutherProfessor of Business Management at Point Park University
Emily GoennerInstructor of Business Communication at St. Cloud State University
Steven GattusoAssistant Professor of Economics and Finance at Canisius University
Stephen YaoAssistant Professor of Insurance and Risk Management at the University of Central Arkansas
Car Insurance Companies: FAQ
Below are frequently asked questions about car insurance companies.
After over 800 hours of researching insurance providers, we found that Travelers, State Farm, Erie Insurance, USAA and Nationwide are the top car insurance companies. We looked into each company’s reputation, availability, coverage, cost and customer experience.
In most cases, if you can afford it, we recommend full coverage car insurance since it will give you the most comprehensive protection should you get in an accident on the road. We recommend getting quotes from Nationwide, Country Financial and Erie Insurance for this type of coverage.
State Farm is the largest and most popular car insurance company in the country, with over 18% of the market share and $57 billion in insurance premiums in 2023. However, our team found Travelers insurance to be the number one auto insurance provider in the U.S. in 2024.
Our pick for the best car insurance for young drivers is Liberty Mutual due to its affordable pricing and extensive discount offerings for those 25 and under. You can also find great coverage for young drivers with American Family, Geico and Nationwide.
If you or a related family member is with the military, USAA is the best option for senior car insurance. However, if you’re not a part of this group, Geico has affordable rates, great discounts and good service for auto policies.
In all cases, USAA offers the best car insurance for military members with some of the best rates and customer service in the country. Veterans, current service members and their families also found them to be one of the most trustworthy providers on the market.
American Family is our pick for the best car insurance for families due to its generational discounts and great incentives for young drivers. If you’re not in its service area, we recommend getting quotes from Travelers and State Farm.
Nationwide has the best full coverage car insurance options due to their low rates, plentiful options for coverage, and good customer service ratings. If you’re a low mileage driver, its unique pay-per-mile program can help you save more money.
Erie Insurance is our pick for the best minimum liability car insurance due to its affordable rates and great customer service in the 12 states it serves. If you are not in these areas, you can get great policies and services from Geico.
Nationwide has the best usage-based car insurance options with the largest discount for telematics insurance among nationwide providers at up to 40%. It’s also the only provider on our list that offers a pay-per-mile program, which can help you save more.
State Farm offers the best overall car insurance customer service with the highest ratings from J.D. Power studies and good ratings in our provider satisfaction study.
American Family has the best car insurance claims service ratings based on our most recent survey data of both regional and large providers. Customers of the company also believed it was the most trustworthy and had their best interests in mind.
If you’re looking for the best car insurance coverage options, we recommend getting quotes from Progressive. As one of the largest providers, the company offers a variety of unique add-on options for pet coverage, original part replacement, and mechanical breakdown coverage.
To find the best price on car insurance, we recommend getting car insurance quotes from multiple companies. That way, you’ll know how much each provider charges. You can also employ savings strategies like signing up for car insurance discounts or bundling your auto insurance with another policy.
If you’re trying to lower your car insurance premium, we recommend looking into discounts for bundling policies, driving safely and installing vehicle safety equipment. These discounts are commonly offered by most major regional and national providers and can help you save money on your car insurance policy.
Car insurance is the most affordable for good drivers between the ages of 35 and 55. Statistically, these age groups have the lowest risk of accident, so car insurance companies charge less.
Young adults should see the cost of car insurance decrease until they reach about 25 years old. Besides that, car insurance costs vary, and there’s no guarantee they’ll go down each year. Market conditions like increasing repair costs or natural disasters can raise the cost of insurance even if your driving record hasn’t changed.
Several factors influence how much you pay for car insurance coverage, which is why each car insurance company personalizes quotes for every driver. For instance, having an at-fault accident can add around $919 to your annual rate on average, while having poor credit (in most states) or a DUI can add an average of about $1,821 or $1,423, respectively.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Industry standing (20% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Cost and discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Customer experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.
