The Best Car Insurance Companies
Summary: Car Insurance Company Ratings
What Is the Best Car Insurance Company?
Our analysis finds that American Family, Auto-Owners, Nationwide and USAA are the best car insurance companies overall, with 5 stars in our ratings. USAA auto insurance is available only to military members, veterans and their immediate family members.
The best car insurance companies for you will depend on your driving record, state and other individual factors. Shopping around to compare car insurance quotes will reveal the companies that can give you the best price for your situation.
Best for Low Car Insurance Rates: Geico
Geico comes in with the lowest rates nationwide that are available to the general public when we look at average rates across a variety of driving records and driver ages. (USAA is cheaper but membership is limited to car owners with a military connection.)
Drivers who have poor credit should compare quotes from Geico because of its competitive rates. Getting quotes is worthwhile if you have poor credit because many auto insurance companies charge much higher rates based solely on poor credit
Best for Low Complaints: American Family and Travelers
Complaints against a company are a reflection of customer service. Most complaints about car insurance companies revolve around problems with claims. American Family and Travelers have very low levels of auto insurance complaints, based on verified complaints made to state insurance departments around the country.
Best for Collision Repair: Erie
Erie receives the highest grade from collision repair professionals among the companies we analyzed, with a B+. Collision repair professionals get an inside look at which insurers try to cut corners and which ones have the smoothest claims processes.
Best for Drivers With a Speeding Ticket: Geico and Westfield
Drivers who have gotten a speeding ticket can expect it to affect rates for three to five years, depending on your insurance company and state. Geico and Westfield have the lowest rates for these drivers, among companies open to the general public. Westfield is a regional insurer that sells auto insurance in 10 states, mainly in the Midwest.
USAA also has low rates for military members and veterans who have speeding tickets on their records.
Best for Drivers Who Caused an Accident: Auto-Owners
A “chargeable” accident can stay on your record and affect your car insurance rates for three to five years, depending on your state laws and/or car insurance company. Auto-Owners has the best average rates for drivers stuck in this spot, based on the companies we analyzed.
The severity of the accident, meaning the dollar cost of property damage and/or injuries, can affect the amount of your surcharge. Ask your auto insurance agent how long the surcharge will affect your car insurance rates.
Best for Drivers With a DUI: Progressive
You can’t avoid higher rates after a DUI, but Progressive offers the most competitive pricing for drivers in this situation, based on nationwide averages among the companies we analyzed.
Car insurance companies will usually pull your motor vehicle report when you’re getting a new quote or when your policy is coming up for renewal. This is their chance to adjust rates based on your recent history of problems, and a DUI conviction will be a costly insurance problem.
Best for Military Members: USAA
With its consistently good rates and variety of coverage options, USAA remains the best car insurance option for military members year after year. While the level of complaints about USAA auto insurance has been rising over the past couple of years, its current complaint level is about average for the industry.
Car Insurance by State
What Is Car Insurance?
Car insurance is a contract between you and the insurance company that provides you with specific coverage in exchange for your premium payments. Your car insurance policy is the contract that outlines what you can make claims for.
The best car insurance policies cover your liability (meaning damage and injuries you cause to others), damage to your own vehicle, and car accident injuries to you and your passengers.
If you fail to pay your car insurance bill, coverage lapses and any claims you make can be denied.
How Can I Find the Best Price on Car Insurance?
Knowing the factors that affect car insurance rates, such as your credit, can help you identify ways to save. Here are the easiest ways to find cheap car insurance.
Shop Around
To find the best price on car insurance, compare car insurance quotes from at least three companies for the same level of coverage. Because rates can vary wildly among companies, shopping around is the best way to get the biggest potential savings.
Choose a Higher Deductible
If you have collision and comprehensive coverage, choosing a higher car insurance deductible is another reliable method for lowering your insurance bill. (There is no deductible for liability insurance.)
Ask About Discounts
Many car insurance discounts will be automatically applied to your bill, such as “pay in full” discounts. But sometimes your insurance company won’t know you’re eligible for a discount, so it’s good to ask. For example, if you have a high school or college-age driver who gets good grades, ask about a good student discount.
How Much Does Car Insurance Cost?
Factors That Impact the Cost of Car Insurance
What Types of Car Insurance Are Required?
Liability insurance is required in almost all states and is one of the main types of car insurance. Liability insurance pays for injuries and property damage you accidentally cause to others in an auto accident.
Uninsured motorist insurance is another type of car insurance that’s required in many states. If an uninsured motorist crashes into you, this coverage will pay you and your passengers’ medical bills. Although in states with a “no-fault” car insurance system, you’ll use your own personal injury protection (PIP) for the medical expenses of you and your passengers, no matter who was to blame for the accident.
Collision and comprehensive insurance are likely required for your car loan if you financed your vehicles. Even if you don’t have a car loan it’s smart to have these types of car insurance, especially on newer vehicles. Collision insurance covers car accidents with other vehicles or objects, such as a building or pole, and pays regardless of fault. Comprehensive auto insurance covers car theft, fires, damage from severe weather, floods, hail, falling objects, vandalism and striking an animal.
Overview of Car Accidents in the U.S.
Fatal car accidents are on the rise nationwide. In 2021, more than 39,500 fatal car crashes occurred on U.S. roads, a 10% increase from 2020. In some states, dangerous driving tends to be more common, putting you at greater risk when you get behind the wheel. But what state has the worst drivers?
To find out, Forbes Advisor compared all 50 states and Washington, D.C., across six key metrics. Our analysis identifies which states have the worst drivers and provides insight on the types of dangerous driving behavior in each state.
Key Takeaways About States With the Worst Drivers
Methodology
To identify the best car insurance companies we evaluated each company based on its average rates for a variety of drivers, the coverage options offered, complaints against the company and collision repair grades from auto body professionals.
Auto insurance rates (50% of score): We used data from Quadrant Information Services to find average rates from each company for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit, drivers caught without insurance, adding a teen driver, senior drivers and young drivers.
Unless otherwise noted, rates are based on a 40-year-old female driver with a Toyota RAV4 and coverage of:
- $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 for property damage (known as 100/300/100).
- Uninsured motorist coverage of 100/300.
- Collision and comprehensive insurance with a $500 deductible.
Car insurance coverage options (25% of score): Any auto insurance company can provide the basics of liability insurance, collision and comprehensive coverage and other standard offerings. But it’s also important to have access to additional coverage types that can provide greater protection or cost savings. In this category, we gave points to companies that offer accident forgiveness, new car replacement, vanishing deductibles, usage-based or pay-per-mile insurance and SR-22s.
Complaints (20% of score): We used complaint data from the National Association of Insurance Commissioners. Each state’s department of insurance is in charge of logging and monitoring complaints against the companies that operate in their states. Most auto insurance complaints center on claims, including unsatisfactory settlements, delays and denials. The industry complaint average is 1.00, so companies with a ratio below 1.00 have lower levels of complaints.
Best car insurance companies
Geico
Best for most drivers
Travelers Insurance
How to choose an auto insurance provider
If you’re looking for an insurance provider, follow these steps:
- Determine your needs and preferences. Different providers have different strengths and weaknesses. If you’re looking for the least expensive policy, you may have to sacrifice on customer service support.
- Ask friends and family for recommendations. Check with friends and family in your area to get testimonials about pricing and satisfaction.
- Compare prices. As with any product or service, it’s worth your while to shop around. An independent insurance agent can help you get quotes from multiple providers, or you can use each company’s online quote tool.
How does auto insurance work?
Auto insurance is a financial product that helps you pay for damages to your vehicle and medical expenses in the event of an accident. As a policyholder, you pay a premium (monthly or annually) for coverage. Your premium is priced according to specific factors including your driving history, where you live and what kind of vehicle you drive. Auto insurance typically features a deductible, which is the amount you’ll have to pay out of pocket for repairs and medical expenses before your insurance kicks in.
What does auto insurance cover?
It depends on the type of policy. You can buy a comprehensive policy or a basic one and add options such as roadside assistance.