Methodology

---

To choose our winners for the best car insurance companies, we analyzed more than 150 companies and narrowed down our list to the top 12. From there, we judged each company across ten categories essential to good policies. We analyzed more than 250 data points and used more than 15 primary data sources during our research. Read our full methodology here.

Show Summary

• USAA

  : Best when you get in an accident

• Nationwide

  : Best if you want a lot of coverage options

• Geico

  : Best online features

Why do you need car insurance?

• It’s legally required in most states: In almost every state, vehicle owners are required to carry a minimum amount of auto insurance coverage to register and legally operate their cars.
• It provides financial and legal protection: Personal liability car insurance covers your legal and financial responsibilities when you cause an accident that results in third-party injuries or damages.
• It can reduce or prevent out-of-pocket repair expenses: A full coverage car insurance policy helps pay to repair or replace your own vehicle after a collision or other covered loss.

USAA

Best when you get in an accident

USAA

Best rates

Nationwide

Best if you want a lot of coverage options

American Family

Best for policyholder satisfaction

Geico

Best online features

Top companies at a glance

What is the best car insurance company?

There isn’t a single car insurance company that is the best for all drivers. The best insurer for you will meet your specific coverage needs within your budget.

When comparing car insurance companies, it’s a good idea to consider factors like coverage options, deductibles, discounts and online services. For example, if you need full coverage, the best insurer for you may offer a reasonable collision deductible at a premium you can afford. If you want to manage your policy yourself, you might look for a provider that offers online claims, online payments and a great mobile app.

It’s also important to consider the insurance company’s financial strength and reputation. You can check AM Best ratings to get a better understanding of the insurer’s financial stability and review J.D. Power studies for a deeper look at the company’s claims satisfaction and overall customer satisfaction scores.

How does car insurance work?

Car insurance is a contract between you and an insurance company. In exchange for a monthly or annual premium, the insurance company agrees to compensate you for covered losses that are outlined in your contract, like third-party injuries or theft of or damage to your vehicle. 

How car insurance specifically works depends on your state and its insurance laws. In general, drivers in at-fault (or tort) states who cause an accident are responsible for compensating other drivers and their passengers for their injuries. 

In no-fault states, policyholders are compensated by their own insurance company for their own injuries, no matter which driver caused the collision. Drivers who are insured in no-fault states are required to purchase personal injury protection (PIP) as part of a minimum coverage insurance policy.

Different types of car insurance

There are a variety of car insurance coverages you can purchase, some of which are required. Here are some of the most common coverages and their general definitions:

• Bodily injury liability coverage: Covers your legal and financial responsibility when you cause an accident and the other person gets injured.
• Property damage liability coverage: Covers your legal and financial responsibility when you cause an accident and damage another person’s property, such as a fence, mailbox or parked vehicle. 
• Uninsured and underinsured motorist coverage: Covers your losses when you get into an accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover your injuries and property damage losses. Uninsured motorist coverage may also apply to hit-and-run claims. 
• Personal injury protection (PIP) coverage: Covers your and your passengers’ medical expenses and lost wages after an accident, regardless of which driver was at-fault.
• Medical payments (MedPay) coverage: Pays for your and your passengers’ medical bills if you get hurt in an accident, regardless of which driver was at-fault. If you have health insurance that covers car accident injuries, MedPay can help pay your deductible and copays. However, it won’t cover lost wages.  
• Comprehensive coverage: Pays for your vehicle’s repairs after a noncollision incident, such as theft, vandalism and natural disasters. It can also cover hitting a deer. It usually requires a deductible and is often part of a full coverage policy.
• Collision coverage: Covers your vehicle’s repairs after an accident, such as hitting another car or a stationary object like a lamp post or guard rail, minus your deductible. Collision insurance is typically part of a full coverage policy. 
• Roadside assistance coverage: Pays for basic roadside service if you get stranded, such as flat tire changes, fuel delivery, lockouts and towing up to a certain distance.
• Rental car reimbursement coverage: Pays for a rental car if your vehicle needs to be repaired after a covered loss. A maximum amount typically applies per day and per claim. 
• Gap coverage: If your vehicle is totaled and what the insurance company will pay for your car is less than the balance of your auto lease or loan, gap coverage pays the difference, up to any applicable coverage limit. 

How much does car insurance cost?

Based on our sample rate data, the average cost of car insurance was $2,808 per year. USAA had the cheapest average annual rate of $2,065 and Allstate had the highest of $3,719.

However, keep in mind that the cost of car insurance depends on a variety of factors. For example, the average annual cost of car insurance for a good driver was $2,054, but the average rate for someone with a poor credit score was much higher at $3,601 per year. And, the more expensive your car is, the higher your auto insurance likely will be. The only way to know exactly how much you will pay for auto insurance is to get personalized quotes.

The table below shows average rates by company and driver profile:

What factors impact the cost of car insurance?

Your car insurance premium is based on a number of factors based on your demographics. Here are some of the most common criteria that insurers consider when calculating your rate:

• Age: In general, young drivers pay the highest rates for car insurance out of all age groups.
• Gender: Women tend to pay lower car insurance rates because they are less likely to drive impaired than men and have lower instances of serious crashes. 
• Location: Your state, city and ZIP code can impact your rate. For example, rates tend to be higher in urban areas than rural areas due to greater likelihood of accidents and theft.
• Vehicle type: Cars with advanced safety features and lower repair costs are often cheaper to insure than sports cars and models with poor safety ratings.
• Coverage options: If you add endorsements to your policy, select higher coverage limits or choose lower deductibles, your car insurance premium will go up.

• Credit score: In most states, your credit score can affect your car insurance rate. Drivers with good credit often pay lower rates than drivers with poor credit. However, some states have banned or limited the use of credit scores in rate setting.

How to find the best price for car insurance

Before you purchase a car insurance policy, consider these tips for getting the best price:

• Get multiple quotes: The Insurance Information Institute (III) suggests getting quotes from at least three insurance companies to see which insurer can offer you the best coverage for the best price. Make sure you are looking at similar coverage limits and deductibles to have an accurate idea of how the policies compare.
• Choose high deductibles: If you’re carrying coverages that require a deductible, like collision or comprehensive coverage, choosing a higher deductible will typically reduce your premium. However, remember that your deductible is your out-of-pocket cost when a claim occurs, so make sure you can afford it. Also, if you finance your car, your lender may set maximum deductibles. 
• Bundle your policies: Many insurers provide sizable multipolicy discounts for bundling car insurance with another policy, like homeowners insurance, condo insurance or renters insurance.
• Ask about discounts: Most insurance companies offer discounts that can lower your premium. Look for insurers that provide discounts you can take advantage of and talk to an agent about discounts that might not be advertised online.

Methodology

To find the best car insurance companies, we started by examining 158 leading insurers and then narrowed it down to the top-rated 12 companies. 

For each insurer, we analyzed 10 crucial categories, leveraging rate data from Quadrant Information Services, survey data from CRASH Network, complaint data from the National Association of Insurance Commissioners (NAIC) and study data from customer-research firm J.D. Power. 

To identify the winning companies, we worked with more than 250 data points across the 12 companies and 10 categories. The following sections describe the category we scored and the weight we gave that category in our scoring model.

Average annual rates (30%)

For the average annual rates, we used data from Quadrant Information Services. With access to insurance rates across the country, Quadrant provided us average auto insurance rates for seven driver profiles, including good drivers, drivers with an accident causing injury on their record, drivers with an accident causing property damage on their record, drivers with a DUI on their record, drivers with poor credit, drivers with a speeding ticket on their record and drivers without prior insurance coverage. Our sample policy carried:  

• Bodily injury coverage of $100,000 per person, $300,000 per accident
• Property damage coverage of $100,000 per accident
• Uninsured motorist coverage of $100,000 per person, $300,000 per accident
• Comprehensive coverage with a $500 deductible
• Collision coverage with a $500 deductible

Accident forgiveness (10%)

Being involved in an accident, especially when you are at fault, can significantly impact your rates. Some insurance companies offer accident forgiveness — either as an optional coverage or as an automatic benefit for qualifying drivers — to help drivers avoid a premium increase after their first at-fault accident. For this category, we looked to see if this coverage is available with each insurer.  

State availability (10%)

Not all insurance companies operate in all states. Some policyholders prefer working with national insurers, while others prefer working with ones that only work in their regions. Having access to adequate coverage is an important first step when analyzing insurance companies. For this category, we researched how many states each insurer operates in. 

J.D. Power score (10%)

We looked at the 2023 U.S. Auto Insurance Study for overall customer satisfaction. J.D. Power scores auto insurance providers based on five factors that are a key part of the policyholder experience: billing process and policy information, claims, interaction, policy offerings, and price. This study is broken into 11 regions, so we took the average of all available scores for each insurance company. We included J.D. Power’s ratings in our scoring because they help you gauge what an insurer’s typical policyholder experience is like.

NAIC complaint index (9%)

The National Association of Insurance Commissioners (NAIC) calculates an index for insurance companies based on the company’s share of premiums and complaints filed with the NAIC. An index of 1.00 indicates the insurer received the expected number of complaints for a company of its size. An index below 1.00 means the company received fewer complaints than expected for a company of its size, and vice versa. We used the NAIC complaint index scores from 2022.

New car replacement (8%)

Cars quickly depreciate in value, and standard auto insurance policies cover their actual cash value (ACV), meaning their depreciation for things like wear and tear and mileage are considered when calculating claim payouts. Some insurance companies offer new car replacement coverage, so if your car is a total loss, it will be replaced with a newer version of the same make and model. This coverage may be subject to age limits (e.g., your car may not be eligible if it’s three years old). For this category, we looked to see if new car replacement coverage is available with each insurer. 

Vanishing deductibles (8%)

Some insurance companies offer vanishing deductibles, or disappearing or diminishing deductibles, for comprehensive and collision coverage. For each year you go without a claim, your deductible will decrease by a certain dollar amount or percentage, as dictated by your policy. In some cases, you may be able to reach a $0 deductible, and after you have a claim, your deductible resets. For this category, we looked to see if vanishing deductibles are available with each insurer.  

CRASH Network grade (5%)

CRASH Network publishes the “Insurer Report Card” each year, which assigns a grade to insurance companies based on responses from body shops around the country. For its 2023 survey, CRASH Network collected its data from over 1,000 collision repair body shops from all 50 states. The shops were asked one question: “How well does this insurer’s claims handling policies, attitude and payment practices ensure quality repairs and customer service for motorists?” The Insurer Report Card’s grades range from A+ to F, and our scoring method uses a one-point scale to reflect this — with an A+ receiving a score of one and D, D- and Fs receiving a score of zero. 

SR-22 (5%)

If you have a poor driving record or are caught driving without insurance, you may be required to file an SR-22 form, also known as a certificate of financial responsibility, with your state. Not all insurance companies will insure drivers who need SR-22s. For this category, we looked to see which insurers will offer coverage.   

Usage-based insurance (UBI) or pay-per-mile options (5%)

If you want more personalized rates based on your driving behavior or if you don’t drive often, a usage-based insurance (UBI) or pay-per-mile insurance policy may be a good option for you. For this category, we looked to see which insurers offer these types of programs. We assigned a 2.5% weight for UBI programs and 2.5% for pay-per-mile programs.   

What didn’t make the cut

Of the 12 auto insurance companies we analyzed for our final rankings, eight did not win a category: Westfield, Travelers, Farmers, Allstate, Progressive, Auto-Owners, Erie and State Farm. Which categories they received low scores in varied between each insurer, but some examples include average annual rates, state availability, CRASH Network grade and J.D. Power scores for overall customer satisfaction. In particular, Farmers, Allstate, Progressive, Erie and State Farm all had above-average rates, which made up 40% of our scoring model.

Frequently asked questions (FAQs)

Do I need car insurance?

Most drivers are required to have car insurance to register their vehicle and legally drive. Auto insurance is a legal requirement in 49 states and Washington, D.C. The only state that doesn’t require car insurance is New Hampshire. Virginia also allows its drivers to forego its auto insurance requirements and pay a $500 uninsured motor vehicle fee when registering their vehicle.

What types of car insurance are required?

Every state has different car insurance laws. However, most states require vehicle owners to carry a minimum amount of bodily injury liability and property damage liability insurance. Some states may also require coverages like uninsured motorist or medical payments. In states with no-fault car insurance laws, personal injury protection (PIP) is also a requirement.

Additionally, if you have a loan or lease your vehicle, your lender will likely require you to carry comprehensive and collision coverage as well.

What discounts are available to save on car insurance?

Available discounts and eligibility requirements vary by insurance company. You can typically find savings for:

• Good students
• Drivers with a clean record
• Bundling your policies
• Vehicles with an antitheft device
• Completing a defensive driving course 
• Paying your annual premium in full