Best Auto Insurance Companies: Compare Coverage and Costs
Reviews of the top auto insurance companies
Below, we’ve provided a list of the best auto insurance companies. We made our decision based on various factors, including rates, coverage options, app usability, financial stability, and customer reviews.
- Best overall: Progressive
- Best for financial strength: GEICO
- Best vehicle repair benefits: Nationwide
- Best safe driving benefits: Allstate
Progressive
Best Overall
Why it’s one of the best
Progressive offers a wide range of coverage options with excellent communicated coverage and no vehicle restrictions. The company stands out for its unique benefits, including the AutoQuote Explorer tool for comparing quotes, the Snapshot program for rate reduction based on driving habits, and the Name Your Price tool for policy customization.
With a strong AM Best rating of A+ and an editorial rating of 4.9, Progressive is highly regarded, especially for policy customization and accident forgiveness programs.
- High financial strength rating
- Local agent support
- Comprehensive discounts
- Accident forgiveness available
- Mixed customer review ratings
Types of coverage
GEICO
Best for Financial Strength
Why it’s one of the best
GEICO is one of the best-known auto insurers, famed for its competitive rates and extensive discount options. Its easy-to-use online platform and mobile app make managing policies simple and convenient.
GEICO’s broad availability and financial strength make it a top choice for many drivers.
- Competitive rates
- Extensive discount options
- User-friendly online platform and mobile app
- Strong financial stability
- Average customer service ratings
- Limited coverage customization options
Types of coverage
Nationwide
Best Vehicle Repair Benefits
Why it’s one of the best
Nationwide offers comprehensive coverage options. Its “On Your Side” review process helps policyholders get the best coverage for their needs. Nationwide also offers various discounts, enhancing its value proposition.
- Comprehensive coverage options
- “On Your Side” review process
- Various discounts available
- Higher-than-average premiums
- Limited availability in some areas
Types of coverage
Allstate
Best Safe Driving Benefits
Why it’s one of the best
Allstate is a well-established insurer known for its comprehensive coverage options and robust local agent network. It offers a variety of discounts and innovative features, such as the Drivewise program, which rewards safe driving.
Allstate’s strong financial stability and customer support make it a top contender in the auto insurance market.
- Comprehensive coverage options
- Robust local agent network
- Variety of discountsInnovative features, such as Drivewise
- Premiums can be higher than average
- Mixed customer satisfaction ratings
Types of coverage
How much does auto insurance cost?
The average cost of car insurance in 2024 is $214 a month, or $2,568 a year, according to recent Insurify data. This is for a full-coverage policy for the typical driver. Liability-only insurance, which we don’t generally recommend, is much cheaper: $105 a month or $1,260 a year.
Car insurance costs vary depending on several factors, including:
- Your age
- Your gender (in some states)
- Where you live
- What car you drive (and how much you drive)
- Your driving record
- Your credit score (in some states)
- The coverages you choose
You can keep costs down by finding car insurance discounts (such as car and homeowners insurance bundles), participating in your insurer’s usage-based insurance program (also called telematics), and shopping around for a new car insurance policy once every year or two.
In 2023, rates shot up by an average of 24%, far outpacing inflation. Even as inflation cools, we should expect car insurance rates to keep climbing as insurance companies struggle to make up for their huge underwriting losses over the past few years.
Several factors contribute to the rise in auto insurance costs, such as:
- An increase in severe weather events
- Large increase in repair and replacement costs
- Large increases in medical costs
- An increase in distracted driving
How to choose the best auto insurance
Buying car insurance doesn’t need to be stressful. Let’s break it down to the core factors to consider to get the best auto insurance for you:
Understand the terminology
Try to grasp basic car insurance terms before paying for a product you don’t understand. Start by researching your state’s minimum insurance requirements, and then think about additional coverages you might want.
Coverage types to research include:
- Uninsured and underinsured motorist
- Medical payments and personal injury protection
- Collision and comprehensive
Compare apples to apples
If you’re trying to find the cheapest car insurance on the market, you’ll want to compare quotes from several companies. But for a fair comparison, make sure you’re looking at policies with the same:
- Coverage limits
- Deductibles
- Optional coverages
- Discounts applied
If you compare multiple insurers, but the coverage limits and types of coverage are different, you won’t get a real sense of which one is cheaper.
Look at customer reviews
Knowing whether other paying customers are happy with the auto insurance company is important. Consult mobile app reviews to get a feel for how user-friendly the app is, and read customer reviews online.
You can also research the insurance company’s NAIC rating; this helps you see if the insurer has average, above-average, or, ideally, below-average levels of customer complaints. J.D. Power’s annual U.S. Auto Claims Satisfaction Study is also a solid indicator of whether customers have positive or negative perceptions of an insurer.
How to get the best auto insurance rates
Our research found that the average annual car insurance premium in the United States is $2,329 for full coverage and $633 for minimum coverage. But actual rates can vary depending on your age, driving history, location, car type, and other factors.
Shopping around with different insurers is important to find the best car insurance rates. Here’s how:
Use online marketplaces
Marketplaces such as Otto and The Zebra can help you compare quotes from multiple insurers. These platforms allow you to input your information once and review personalized quotes from several companies, saving you time and effort.
Get quotes from at least 3 insurers
Price differences between companies can be substantial, so you should get quotes from at least three insurers when deciding which company is most affordable.
To ensure you’re comparing apples to apples, get quotes with similar types of coverage and coverage levels.
Take advantage of online quotes
Auto insurance companies make it easy to get a quote online with no insurance agent required. Just input basic details about your driving history, age, marital status, where you live, and the car you drive to get a personalized quote.
Shop around
Around half (49%) of car insurance customers have shopped for a new policy within the past year, according to JD Power’s 2024 Insurance Shopping Study. The primary reasons for shopping around? Notable premium increases combined with low customer satisfaction.
Because prices can vary so much by insurer, it’s wise to shop around for coverage even if you’re happy with your insurer.
If you bundle your auto insurance—say with homeowners, renters, or life insurance—and you get a bundle discount, you could lose your discount. So double-check with your current insurance provider before you make changes.
If you compare car insurance quotes every few years or ask for a discount from your current insurer, you may be surprised how much you can save on coverage.
What to look for in the top auto insurance companies
When searching for the best auto insurance companies, it’s essential to consider factors beyond just the premiums. Cost is important, but you also want to ensure the company’s finances are stable and that its reputation is solid. Here’s what to look for:
Check financial stability ratings
One indicator of an insurance company’s financial health is its A.M. Best rating. A.M. Best is a global credit rating agency that assesses the creditworthiness and financial strength of insurance companies. A higher rating, such as A++ or A+, indicates that the insurer can meet its ongoing insurance obligations.
Consider customer satisfaction scores
JD Power is a well-known market research company that conducts annual studies on customer satisfaction in various industries, including auto insurance. The JD Power U.S. Auto Insurance Study measures customer satisfaction based on interaction, policy offerings, price, billing process, and claims experience. A higher JD Power score indicates that the insurer has a better reputation with its customers.
Look for reputable third-party rankings
In addition to A.M. Best and JD Power, the Better Business Bureau (BBB), Trustpilot, and S&P Global Ratings can provide valuable insights into an insurer’s reputation and performance. Our own rankings take these scores into account, along with other factors that can affect your experience with an insurer, such as coverage options, discounts, and customer service.
Check availability in your state
Not all insurance companies operate in every state, so verify that the insurer you’re considering offers coverage where you live. You can often find this information on the company’s website or by contacting customer service.
Look for discounts
Many insurance companies offer discounts that can help you save money on your premiums. Common car insurance discounts include:
- Multi-policy discounts for bundling insurance
- Safe driver discounts for maintaining a clean driving record
- Vehicle safety discounts for cars with anti-theft devices or other safety features
- Low mileage discounts for driving fewer miles annually
What type of policy do you need?
Choosing which car insurance company to purchase a policy from isn’t your only important decision. You have many types of auto insurance policies to choose from, and you want to ensure you get the right coverage to meet your needs.
Here’s how to determine what type of car insurance policy you need.
Understand your state’s requirements
Start by looking at your state’s minimum car insurance requirements. Most states require you to buy a minimum amount of liability coverage, which will pay out if you cause an accident and hurt other people or damage someone else’s property.
Your state may also require additional coverages to protect you and your passengers if you’re injured in a collision or to protect you if you get into a crash with an uninsured or underinsured motorist.
Auto insurers help you understand these requirements when you ask for a quote.
Consider supplemental coverage
In addition to state-mandated coverage, it’s wise to consider supplemental coverage options that provide more comprehensive protection. These policies can help you avoid serious losses if something goes wrong.
Common types of car insurance coverage you may want—or need—include:
- Bodily injury liability pays for the repair or replacement of your own car if you cause a crash.
- Property damage liability pays out if you get into an accident and damage someone’s property.
- Collision insurance pays for the repair or replacement of your own car if you cause a crash.
- Comprehensive insurance pays to repair or replace your car if it’s stolen or damaged by something other than a collision—a natural disaster, falling object, or vandalism, for instance.
- GAP insurance: If you have a car loan and your vehicle is totaled, GAP (Guaranteed Asset Protection) insurance covers the difference between the insurance payout and the remaining balance on your loan.
- Rental car coverage pays for a rental car while your vehicle is being repaired or replaced after an accident.
- Personal injury protection (PIP) covers your medical bills and a portion of lost wages if you’re injured in an accident, regardless of who is at fault.
- Medical payments coverage helps pay for medical expenses incurred as a result of an accident.
- Uninsured or underinsured motorist coverage pays out to you if you incur losses caused by someone with no insurance or too little coverage.
Factors that affect your auto insurance premiums
These factors will influence your car insurance rates to some extent.
Age
Age affects your car insurance costs in a big way. Younger and less experienced drivers tend to pay higher rates because of their higher risk of accidents.
For example, the Insurance Institute for Highway Safety (IIHS) found that drivers between the ages of 16 and 19 are almost three times more likely to be in a fatal crash than drivers who are at least 20. This risk is reflected in insurance rates, with some studies showing that teenagers can pay up to four times more than adults for coverage.
As drivers age and gain experience, their rates often decrease. The sweet spot for lower premiums is usually between ages 30 and 65. However, rates may start to increase again for drivers over 65 due to increased accident risk associated with age-related factors such as slower reflexes and vision problems.
Credit score
Around 95% of auto insurance companies use your credit score to calculate your premium.
Your credit score can have a huge impact: The Consumer Federation of America found that drivers with poor credit pay an average of 115% more for auto insurance than those with excellent credit—even if both have perfect driving records.
Location
Population density, crime rates, and the frequency of accidents in your area all contribute to your premium calculation. Urban areas can have higher rates due to more traffic on the road; rural areas often enjoy lower premiums.
For example, a study by Insurify found that Michigan had the highest average annual car insurance premium while New Hampshire had the lowest.
Vehicle
Your vehicle’s make, model, year, and other characteristics also influence your insurance rates. Factors considered include:
- Safety ratings: Vehicles with higher safety ratings often qualify for lower premiums.
- Cost of repairs: Electric and luxury vehicles with expensive parts often cost more to insure.
- Likelihood of theft: Cars thieves tend to target may have higher premiums.
According to the Highway Loss Data Institute, the Dodge Charger HEMI and the Dodge Challenger SRT Hellcat have some of the highest insurance losses. The Subaru Outback 4WD with EyeSight and the Tesla Model S 4dr electric 4WD have some of the lowest.
Number of vehicles
The number of vehicles you insure can affect your overall premium. While insuring multiple vehicles can increase your total insurance cost, many insurers offer multi-car discounts. Depending on the company, these discounts can save you up to 25% on premiums.
However, each additional vehicle also represents an increase in potential risk for the insurer. The more cars you have, the higher the chance that one of them might be involved in an accident or require a claim.
Gender
Gender can also influence auto insurance rates, although its impact has decreased recently. Historically, men have paid higher premiums than women, particularly young men. This is based on statistical data showing that men (especially those under 25) have a higher chance of participating in risky driving scenarios that result in more serious accidents.
Married versus unmarried
Marital status can also affect your auto insurance rates. Married individuals often pay less for auto insurance than their single counterparts because statistical data shows that married people tend to file fewer claims and to be stable and responsible drivers.
Retirement
Retired seniors may qualify for a low-mileage discount if they’re not driving as much as before. Because seniors are known for being low-risk, you may also see your auto insurance premiums decrease.
Drivers with disabilities
It is illegal for companies to charge you more if you have a physical or mental disability, thanks to the Americans with Disabilities Act. But if you modify your vehicle for a disability, you must buy additional custom equipment coverage for equipment worth over $1,000. Most companies will allow you to increase your coverage by only $4,000 to $5,000, which could be problematic if you have more expensive modifications.
If you’ve had accidents in the past
Past accidents can have a major impact on your insurance premiums, but the extent varies based on the number and severity of incidents, your age, driving experience, and credit score.
A single car accident claim results in an average premium increase of 41%. However, the increase can be higher or lower depending on the state where you live.
Severity matters, too; an at-fault accident with over $2,000 in damage can increase your premium by an average of 53%.
Moving violations also affect rates:
- A speeding ticket: average increase of 16% to 52%
- A DUI can spike premiums by 99% to 171%
Most accidents and violations affect your rates for three to five years. After that, your premiums may decrease if you maintain a clean driving record.
What if you have other vehicles to insure?
If you own multiple vehicles, you may be able to bundle policies for better rates. Here are common additional vehicles and their insurance considerations:
- Boat: This covers damage to your boat and liability for accidents. GEICO, Allstate, and Nationwide offer boat insurance.
- ATV: Protects against damage and liability for off-road vehicles. GEICO, Allstate, and Nationwide provide ATV coverage.
- RV: Combines elements of auto and home insurance for recreational vehicles. GEICO, Allstate, Nationwide, Progressive, and Farmers offer RV insurance.
- Motorcycle: Covers accidents, theft, and liability for motorcycles. GEICO, Allstate, Nationwide, and Progressive offer motorcycle insurance.
- Scooter: Provides similar coverage to motorcycle insurance but often at lower rates. Progressive offers scooter insurance.
Always compare quotes from multiple insurers to find the best combination of coverage and price for your specific vehicle mix.
How to apply for auto insurance
You can always work with an agent in person if you prefer, but getting coverage online takes only a few minutes. Here’s how:
- Select the best auto insurance company for your needs. As discussed above, you should always shop around and get quotes from multiple companies before making a decision.
- Fill out the online application. You’ll need to share personal information, including your birth date and address, as well as information about your driving history and vehicle.
- Customize the coverages. Determine which coverages you want. (The online platform should default to what’s required by law in your state based on the address you provide.) This also includes setting coverage limits and selecting deductibles.
- Start the policy. Once you’re sure the policy is what you want, move forward with purchasing by paying the premium online. You might be able to download an app to access your digital insurance cards, but you can also have the company mail your insurance cards to your home.
FAQ
Which insurance company has the best customer satisfaction?
The insurance company with the best customer satisfaction often varies by region and year, but Amica Mutual consistently ranks high in customer satisfaction surveys. It was the highest-rated auto insurer for 2023.
According to J.D. Power’s annual auto insurance study, Amica earns top marks for customer service, claims handling, and overall satisfaction.
What insurance company is best for cars?
The best car insurance company depends on individual needs and preferences. While we think all the companies mentioned above are top contenders, many consider GEICO one of the best due to its competitive rates, extensive discount options, and user-friendly online platform.
For those seeking exceptional customer service, Amica is a top choice. The best insurance company for cars will depend on your coverage needs, budget, and personal preferences.
What is the average car insurance cost?
The average car insurance cost in the United States varies based on several factors, including the driver’s age, location, driving history, and the type of car insured.
As of 2024, the national average annual premium for full-coverage car insurance is approximately $2,568, while the average annual premium for a liability-only policy is around $1,260.
These figures can vary depending on individual circumstances and the specific insurance provider.
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