Best Auto Insurance Companies

State Farm is a well-rounded provider with affordable rates, lots of local agents, and a large selection of coverage options, making it an option worth considering for almost any driver.

State Farm Pros and Cons

What We Like About State Farm

State Farm is the largest auto insurance company in the U.S. by market share. According to the National Association of Insurance Commissioners (NAIC), State Farm wrote more than $46.6 billion in auto premiums in 2022, accounting for around 16.8% of the total market.

The company also offers an immersive online experience for policyholders. State Farm has three mobile apps which include the State Farm app, Drive Safe & Save™, and Steer Clear^®. Steer Clear is a safe driving program that can help motorists under the age of 25 save money. Young drivers also have a chance to save with the company’s good student discount, which rewards those who maintain good grades in school.

State Farm is likely to be one of the best options for many drivers, but especially for those with younger drivers on their policy.

State Farm Auto Insurance Cost

At $1,872 per year or $156 per month for full coverage, the average premium estimate at State Farm is significantly cheaper than the national average of $1,983 per year.

The table below shows State Farm rate estimates for a driving profile a married, male 40-year-old.

Read our in-depth State Farm insurance review for a more detailed look at the company.

USAA is a high-quality, affordable car insurance company with very few downsides – except that you have to be a member of the military, a veteran, or a family member to get coverage.

USAA Pros and Cons

What We Like About USAA

USAA has one of the industry’s strongest reputations, a large selection of both coverage options and discounts, and some of the lowest rate estimates for many driver profiles. In short, USAA has just about everything you’d want out of an auto insurer.

These factors make USAA a strong candidate for the best auto insurance company overall, but it comes with a major caveat – not everyone has access to the provider. USAA is only open to members of the U.S. armed forces, veterans, and select family members. While those who are eligible can get cheap car insurance from a top-tier provider, others must look elsewhere.

USAA Auto Insurance Cost

At $1,179 per year or around $98 per month, USAA is much cheaper than the national average of $1,983 per year for full coverage. In fact, USAA has the lowest average rate estimate of any national provider by a wide margin for those who are eligible.

USAA tends to offer some of the lowest prices in the industry for many different driver profiles. You’ll find a few estimated rates for a driving profile a married, male 40-year-old below.

Learn more about USAA’s car insurance costs, coverage options, and ratings in our in-depth USAA insurance review.

With consistently cheap rates and one of the largest selections of discounts in the industry, GEICO is a great choice for the budget-conscious insurance shopper.

GEICO Pros and Cons

What We Like About GEICO

GEICO is an excellent choice for anyone on a tight budget. On top of being one of the cheapest car insurance companies in many places, the provider has one of the largest and most diverse sets of savings opportunities in the industry. Because of that, GEICO earned this year’s award for the Most Discount Options.

GEICO also has a range of coverage options to piece together as comprehensive a policy as any driver could need. The company makes it easy to manage your car insurance policy and file claims thanks to its user-friendly website and highly rated mobile app.

GEICO Auto Insurance Cost

The average rate estimate for a full-coverage policy at GEICO is $1,779 per year or $148 per month. This is slightly cheaper than the national average estimate of $1,983 and is among the lowest average rate in our study.

You’ll find prices from GEICO for a driving profile a married, male 40-year-old in the table below:

Learn more about GEICO’s costs, coverage, and customer ratings in our in-depth GEICO insurance review.

Liberty Mutual has two main strengths: its wealth of coverage options and its specialized discounts for young drivers and educators.

Liberty Mutual Pros and Cons

What We Like About Liberty Mutual

Drivers looking for add-ons to cover the risks that come with owning and driving a car will find them at Liberty Mutual. The company offers options that are hard to find elsewhere like better parts replacement and Mexico car insurance.

With its good student discount and student away at school discount, young drivers may learn that Liberty Mutual is among their most affordable providers. The company also offers discounts to faculty and alumni, along with special zero dollar deductible coverage for vehicles while they’re parked on campus.

Liberty Mutual Auto Insurance Cost

We weren’t able to obtain precise rate estimates from Liberty Mutual in our research. Our team did learn that in general, the company tends to be more expensive than average for many drivers. However, new drivers, students, teachers, and drivers in a few other categories may find some of their best rates from Liberty Mutual.

Learn more about the company in our in-depth Liberty Mutual auto insurance review.

Travelers is one of the best auto insurance providers for drivers searching for lots of additional coverage options.

Travelers Pros and Cons

What We Like About Travelers

Travelers earned the award for Best Coverage Choices in our 2022 auto insurance study due to its many options and policy add-ons. Drivers looking for highly customizable policies will find Travelers to be an attractive option as a result.

And while customer satisfaction ratings are low even within the context of the industry, Travelers has fewer complaints than average according to the NAIC. Combined with the highest financial strength rating possible from AM Best, we feel that Travelers is a reliable provider despite the mixed reviews we found online.

Travelers Auto Insurance Cost

Travelers has an average rate estimate of $1,643 per year or around $137 per month. This is more or less on par with the national average of $1,983 per year for a full-coverage policy.

In the table below, you’ll find premium estimates for drivers for a married, male 40-year-old.

Discover more details about the provider’s customer service standards and average costs in our Travelers insurance review.

6. Erie Insurance: Most Cost-Efficient

While Erie Insurance only serves 12 states across the Midwest and Southeast, it’s a great choice for eligible drivers. At $1,456 per year or $121 per month, Erie Insurance has a significantly cheaper price than the national average of $1,983 for full coverage.

Erie Insurance also has an excellent reputation within the industry and among customers. The company had the third-highest score in the 2022 J.D. Power Claims Satisfaction Study with 893 out of 1,000 points – higher than any other provider in this article. Erie Insurance also has high customer satisfaction ratings in comparison to its competitors.

7. Progressive: Best for Accident-Prone Drivers

Progressive has lots of options for policyholders, including its highly rated Snapshot^® telematics program that rewards good driving with lower rates. The company also features one of the largest selections of discounts among the providers in our study.

Those discounts will come in handy, as Progressive tends to be one of the more expensive options for many drivers. However, the company was one of the first to offer affordable coverage to high-risk drivers and continues to do so, offering some of the best rates to drivers with a DUI and those in a few other risk categories.

Learn more about what the company offers and see rate estimates in our full-length Progressive car insurance review.

8. Nationwide: Best Online Platform

While many car insurers have raised premiums over the last year, Nationwide is one of the few that’s lowered them. The company’s average rate estimate of $1,566 per year or around $130 per month for full coverage is almost 21% lower than the national average estimate of $1,983 per year.

People who don’t need to drive much should strongly consider Nationwide. SmartMiles^® is one of the more highly rated usage-based insurance programs in the industry. Remote workers, people who live in walkable areas, and others who don’t put many miles on their cars can probably save a significant chunk of money on getting charged by the mile compared to flat-rate insurance.

Read our Nationwide auto insurance review to see rate estimates and learn more about the provider.

9. Auto-Owners: Best for Unique Coverage Options

Auto-Owners is another regional provider that serves 26 states, mainly in the Southeast and the Midwest. The company offers competitive rates for drivers in many different categories and has fewer complaints than even many of the best auto insurance providers.

The company is an attractive pick to drivers looking for additional coverage. Auto-Owners has a diverse set of add-ons that rival those of almost any national provider. One especially enticing option is the company’s Personal Automobile Plus Package, which bundles a number of coverage items such as cellphone replacement, rekeying coverage, and identity theft protection into one add-on.

Consider the details of our Auto-Owners insurance review to find out more about the company.

Types of Car Insurance Coverage

Auto insurers offer standard coverages that can satisfy your state’s minimum requirements for car insurance. But most also offer optional coverage items that you can use to build a more comprehensive insurance plan that fits your needs and budget.

While the typical insurance options are almost the same from provider to provider, each one has different nonstandard coverages. You’ll find detailed descriptions of these car coverages in the following sections.

Standard Auto Insurance Coverage

Here’s what you’ll find from each of the industry’s best car insurance providers:

• Bodily injury liability coverage: Pays for medical bills and related expenses to other drivers in an accident for which you’re found at fault.
• Property damage liability coverage: Covers damages to other drivers’ cars and personal property resulting from an accident you caused.
• Uninsured motorist coverage/underinsured motorist coverage: Covers expenses in the event that an at-fault driver lacks proper insurance.
• Collision coverage: Pays for damages to your own vehicle resulting from an accident for which you’re found at fault.
• Comprehensive coverage: Covers damages to your own vehicle that aren’t from an accident such as issues caused by theft, vandalism, and extreme weather.
• Personal injury protection (PIP): Pays medical expenses for you and your passengers, regardless of who’s found at fault for an accident. It also covers related expenses like lost wages from missed work. This coverage is also sometimes referred to as “no-fault” insurance and is required in 12 states.
• Medical payments (MedPay): Covers medical expenses similar to PIP but doesn’t take care of additional expenses such as missed wages.

Additional Auto Insurance Coverage

Most car insurers offer policy add-ons that can help to cover some of the other costs and risks that come with owning and driving a car. Here are some of the most common additional coverage options you’ll find from the best auto insurance providers:

• Guaranteed asset protection (GAP coverage): Covers some or all of the difference between the assessed value of your car and the amount you owe on the vehicle if it’s totaled in an accident. Lenders and leaseholders sometimes require this coverage.
• Emergency roadside assistance: Pays for emergency roadside assistance services like towing, car lockouts, and fuel and fluid deliveries. Some but not all of these packages offer 24/7 support.
• Rental car reimbursement: Covers a portion of the cost of a rental car if your car becomes inoperable or sits in the shop following a covered accident.
• Rideshare coverage: Covers drivers in between jobs while working for a ridesharing service such as Uber or Lyft.
• Trip interruption: Covers food, lodging, and other travel expenses if you can’t use your car as a result of a covered loss while you’re away from home.
• Accident forgiveness: Keeps your rate from increasing following an at-fault accident. Some companies include this as a free perk, though not all do.

What Car Insurance Is Required?

Only New Hampshire and Virginia don’t require drivers to carry auto insurance. In every other state, you’re legally required to have your vehicle insured.

Minimum coverage requirements vary between states. Most states require drivers to carry at least some form of property damage and bodily injury liability insurance. Others may require an additional type of car insurance coverage like uninsured motorist/underinsured motorist coverage, MedPay, or PIP.

• Coverage options: If you’re looking for the cheapest car insurance rates, you’ll want to find a plan that only satisfies state minimum-coverage requirements. Other types of coverage such as collision insurance can insulate you from more risk but add to the cost of your premiums.
• Coverage amounts: You can also choose the maximum amounts your insurance policy pays out in an accident. Higher coverage limits will result in higher premiums.
• Deductible: In most cases, you’ll get to choose a deductible, or the amount you pay out of pocket for covered repairs. A lower deductible means less to pay when repairs come, but it also translates to a higher premium.
• Driving record: Any recent moving violations such as a speeding ticket or an at-fault accident will raise your auto insurance rates. Drivers with a clean driving record get the cheapest rates on car insurance.
• Age: Seniors and younger drivers will pay more for their auto insurance policy than middle-aged drivers. Still, it’s teen drivers who pay the highest rates.
• Credit history: A poor credit score means you’ll have to pay more for your car insurance coverage than drivers with good credit. However, state laws have made it illegal for insurance companies to factor credit scores into auto insurance rates in California, Hawaii, Massachusetts, and Michigan.
• Location: The state where you live plays an important role in your car insurance premiums. But even within the same state, drivers in different ZIP codes will still pay different rates. For example, drivers in rural areas tend to pay less for coverage than those in cities.

Here are some of the most common car insurance discounts you’ll find:

• Multi-policy: Many of the best auto insurance providers offer other insurance products too. If you bundle your auto coverage with products like life, renters, or homeowners insurance from the same provider, you can usually get a discount.
• Multi-car: Insurance companies usually offer lower rates if you insure more than one car under the same policy.
• Safety features: Daytime running lights, passenger air bags, and other advanced safety features could net you a discount from your insurance company.
• Telematics: Most of the best car insurance companies now offer some form of GPS-enabled monitored driving program. These programs track your driving habits through a mobile app and reward good habits with a discount.
• Safe driver: Many insurance providers offer a break on your insurance premiums if you go for a specified amount of time without an accident.
• Good driver: Depending on the insurer, you can sometimes get a discount for completing a state-approved defensive driving course.
• Paid in full: With some companies, you can lower your insurance premiums by paying for your entire policy upfront rather than month-to-month.
• Military: Several top car insurers offer discounted rates for active-duty service members. Many of these discounts extend to retired and reserved service members as well as to family members of military personnel.
• Accident-free: The best car insurance companies reward drivers for going an extended period of time without any accidents. The amount of time specified depends on the insurer.
• Paperless: Auto insurers often offer a discount for switching from getting paper bills in the mail to getting them electronically.