The 10 Best Car Insurance Companies (2025)
State Farm is the best overall car insurance company. It has good customer support, an easy claims process, and cheap rates that average $134 per month.
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Top 10 best car insurance companies
Company | Category |
Rating
|
|---|---|---|
| State Farm | Best overall | |
| NJM | Best local company | |
| Erie | Best for low rates | |
| Shelter | Best extra coverage | |
| Farm Bureau | Best for local agents |
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What is the best car insurance right now?
- State Farm is the best car insurance for most people because it's high-quality and cheap, at an average of $134 per month for full coverage.
- Other top companies include NJM, Erie, Shelter and Farm Bureau which also have cheap rates and reliable coverage.
- Based on where you live a smaller company may have the best car insurance in your state.
- Best overall: State Farm
- Best local company: NJM
- Best for low rates: Erie
- Best extra coverage: Shelter
- Best for local agents: Farm Bureau
- Best for teen drivers: Auto-Owners
- Best mobile app: American Family
- Best discounts: Nationwide
- Best customer service: Amica
- Best for military: USAA
ValuePenguin's unbiased picks for the best insurance companies are based on independent research on customer service, affordability, how claims are handled, coverage options and shopping experience.
See our full methodology for how we compared 40 of the country's largest insurance companies.
Best car insurance overall: State Farm
-
Editor's rating:
- Full coverage: $134/mo
- Read the full State Farm review
State Farm has the best car insurance for most drivers because it's cheap, reliable and easy to use.
Is it cheap?
Is it good?
How's the coverage?
State Farm rates by type of driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
State Farm has the cheapest rates for almost everyone, except if you have poor credit.
Drivers with poor credit should choose Farm Bureau, which is much cheaper than State Farm.
Is it cheap?
State Farm rates by type of driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
State Farm has the cheapest rates for almost everyone, except if you have poor credit.
Drivers with poor credit should choose Farm Bureau, which is much cheaper than State Farm.
Is it good?
State Farm's reviews | ||
|---|---|---|
| Customer service | ||
| Claims satisfaction | ||
| Few complaints | ||
After an accident, State Farm's smooth claims process can help you get back on the road quickly.
Customers say they're happy with their policies, and the company is easy to deal with.
How's the coverage?
State Farm's policy details | ||
|---|---|---|
| Extra options | ||
| Good for bundling | ||
| Can buy online | ||
State Farm is one of the best companies for bundling because it's great for both car and home insurance.
But if you want lots of coverage options, choose Shelter instead of State Farm.
Best regional car insurance company: NJM
-
Editor's rating:
- Full coverage: $156/mo
- Read the full NJM review
NJM has excellent service, affordable rates and policies that include free extras.
Is it cheap?
Is it good?
How's the coverage?
NJM's rates by driver type | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
NJM's full coverage car insurance is cheap for most drivers.
However, if you've had a speeding ticket, NJM's rates are about average.
Is it cheap?
NJM's rates by driver type | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
NJM's full coverage car insurance is cheap for most drivers.
However, if you've had a speeding ticket, NJM's rates are about average.
Is it good?
NJM's reviews | ||
|---|---|---|
| Customer service | ||
| Claims satisfaction | ||
| Few complaints | ||
NJM has some of the best customer satisfaction ratings in the industry.
With a great claims experience and 87% fewer complaints than average, you can expect NJM to make your life easier after an accident.
The downside is NJM is only available in five states.
How's the coverage?
NJM coverage details | ||
|---|---|---|
| Extra options | ||
| Good for bundling | ||
| Can buy online | ||
Full coverage policy from NJM automatically includes extras that most companies charge extra for.
Full coverage from NJM comes with new car replacement and rental car reimbursement after an accident. It also helps pay your pet's medical bills if they're in the car during a crash.
Best company for cheap insurance: Erie
-
Editor's rating:
- Full coverage: $115/mo
-
Erie has the best rates of car insurance if you live in the Southeast, Midwest or East Coast .
Is it cheap?
Is it good?
How's the coverage?
Erie's rates by type of driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
Erie has cheap rates for all types of drivers we looked at.
Erie's full coverage costs around $115 per month for a good driver, which is a savings of $60 per month. If you want a basic policy, minimum coverage from Erie costs an average of $43 per month.
Is it cheap?
Erie's rates by type of driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
Erie has cheap rates for all types of drivers we looked at.
Erie's full coverage costs around $115 per month for a good driver, which is a savings of $60 per month. If you want a basic policy, minimum coverage from Erie costs an average of $43 per month.
Is it good?
Erie's reviews | ||
|---|---|---|
| Customer service | ||
| Claims satisfaction | ||
| Few complaints | ||
Erie's customer reviews are mixed.
Erie earns top scores for how claims are handled and the overall policy experience. The downside is that its auto division receives more formal complaints than average.
How's the coverage?
Erie's coverage details | ||
|---|---|---|
| Extra options | ||
| Good for bundling | ||
| Can buy online | ||
Erie offers lots of ways to upgrade your coverage .
Erie also has good home and renter's insurance, so it's great for bundling. The downside is there are few online tools so you'll need to buy and manage your policies through an agent.
Best car insurance coverage: Shelter
-
Editor's rating:
- Full coverage: $171/mo
- Read the full Shelter Insurance review
Shelter Insurance is the best company if you need extra coverage, like gap insurance or new car replacement.
Is it cheap?
Is it good?
How's the coverage?
Shelter's rates by type of driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
Shelter's car insurance rates are about average for safe drivers.
Shelter isn't always the cheapest option, but a basic policy includes coverage that most companies charge extra for.
Is it cheap?
Shelter's rates by type of driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
Shelter's car insurance rates are about average for safe drivers.
Shelter isn't always the cheapest option, but a basic policy includes coverage that most companies charge extra for.
Is it good?
Shelter's reviews | ||
|---|---|---|
| Customer service | ||
| Few complaints | ||
Shelter has good customer service reviews and few complaints.
Drivers typically have a quick and easy claim process after a crash, and customers are generally happy with their policies. However, Shelter is only available in 15 states,
How's the coverage?
Shelter's policy details | ||
|---|---|---|
| Extra options | ||
| Good for bundling | ||
| Can buy online | ||
Shelter customers automatically get roadside assistance and new car replacement coverage included in a basic policy.
This means you'll get coverage extras that other companies charge you extra for. You can also add on extras like rental reimbursement after an accident and gap insurance for cars with a loan or lease.
Best if you want a local agent: Farm Bureau
-
Editor's rating:
- Full coverage: $159/mo
- Read the full Farm Bureau review
Farm Bureau stands out for its personalized support from local agents.
Is it cheap?
Is it good?
How's the coverage?
Farm Bureau's rates by type of driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
Most drivers will save money with Farm Bureau car insurance because of its affordable rates and many discounts.
However for safe drivers, Farm Bureau isn't as cheap as State Farm or Erie.
Is it cheap?
Farm Bureau's rates by type of driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
Most drivers will save money with Farm Bureau car insurance because of its affordable rates and many discounts.
However for safe drivers, Farm Bureau isn't as cheap as State Farm or Erie.
Is it good?
Farm Bureau's reviews | ||
|---|---|---|
| Customer service | ||
| Few complaints | ||
Farm Bureau has a large network of helpful, local agents that offer personalized service.
This can make it easy to manage your policy and file claims after an accident.
How's the coverage?
Coverage details and options | ||
|---|---|---|
| Extra options | ||
| Good for bundling | ||
| Can buy online | ||
Farm Bureau is good if you want a standard policy, but there are few options for upgrading your coverage.
You can't get add-ons like rental car reimbursement or gap insurance.
Best company for families with teens: Auto-Owners
-
Editor's rating:
- Full coverage: $145/mo
- Read the full Auto-Owners review
AutoOwners has the best car insurance rates for families with teen drivers.
Is it cheap?
Is it good?
How's the coverage?
Auto-Owners' rates by driver type | |
|---|---|
| Parent and teen | |
| Good driver | |
| After a ticket | |
Auto-Owners has cheap rates for teenagers and several discounts available to young drivers.
For example, good students can save up to 20% off their rates by having a B average or better.
Is it cheap?
Auto-Owners' rates by driver type | |
|---|---|
| Parent and teen | |
| Good driver | |
| After a ticket | |
Auto-Owners has cheap rates for teenagers and several discounts available to young drivers.
For example, good students can save up to 20% off their rates by having a B average or better.
Is it good?
Auto-Owners reviews | ||
|---|---|---|
| Customer service | ||
| Claims satisfaction | ||
| Few complaints | ||
Auto-Owners customers are mostly happy with their policies and customer service.
However, it's not one of the top companies for claims satisfaction. So even though AutoOwners is a great option overall, the process of filing a claim after a crash is easier with other companies.
How's the coverage?
Auto-Owners coverage details | ||
|---|---|---|
| Extra options | ||
| Good for bundling | ||
| Can buy online | ||
Auto-Owners is good if you want extra coverage options and to work with an independent agent.
However it's not good if you want to manage your policy online because you'll work with your agent for most things.
Best for managing your car insurance online: American Family
-
Editor's rating:
- Full coverage: $168/mo
- Read the full American Family review
American Family has some of the best online tools and excellent customer service.
Is it cheap?
Is it good?
How's the coverage?
American Family rates by driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
American Family car insurance is affordable, especially if you have poor credit.
However, in many cases, another company will have the cheapest rates.
Is it cheap?
American Family rates by driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
American Family car insurance is affordable, especially if you have poor credit.
However, in many cases, another company will have the cheapest rates.
Is it good?
American Family reviews | ||
|---|---|---|
| Customer service | ||
| Claims satisfaction | ||
| Few complaints | ||
American Family stands out for its MyAmFam app which lets you change your policy, file a claim, make payments, or view your insurance card.
Because of the great online tools, you shouldn't have to contact American Family customer service often.
How's the coverage?
American Family coverage details | ||
|---|---|---|
| Extra options | ||
| Good for bundling | ||
| Can buy online | ||
American Family has lots of auto insurance coverage add-ons for you to customize your policy.
But it's expensive for home and renters insurance so it might not be a good deal for bundling.
Best auto insurance discounts: Nationwide
-
Editor's rating:
- Full coverage: $200/mo
- Read the full Nationwide review
Nationwide's many discounts means that it could be cheap if you qualify for several savings options.
Is it cheap?
Is it good?
How's the coverage?
Nationwide rates by driver type | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
Nationwide's base rates tend to be expensive, but policies can be cheap if you qualify for lots of discounts.
With Nationwide, you can get discounts for going paperless, being a safe driver, having an anti-theft system in your car, getting a policy where you pay per mile, and more.
Is it cheap?
Nationwide rates by driver type | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
Nationwide's base rates tend to be expensive, but policies can be cheap if you qualify for lots of discounts.
With Nationwide, you can get discounts for going paperless, being a safe driver, having an anti-theft system in your car, getting a policy where you pay per mile, and more.
Is it good?
Nationwide reviews | ||
|---|---|---|
| Customer service | ||
| Claims satisfaction | ||
| Few complaints | ||
Nationwide's high rate of complaints mean that many drivers have had problems with their policies.
However, surveyed drivers say they're generally happy with or neutral about their coverage.
How's the coverage?
Nationwide coverage details | ||
|---|---|---|
| Extra options | ||
| Good for bundling | ||
| Can buy online | ||
Nationwide has all the coverage options you'd expect from a large insurance company.
If you want even more options for customizing your coverage, get a quote from Shelter which offers some unique add-ons.
Best-rated customer service: Amica
-
Editor's rating:
- Full coverage: $232/mo
- Read the full Amica review
Amica's top-notch customer service make it a great company if you're willing to pay more for insurance.
Is it cheap?
Is it good?
How's the coverage?
Amica's rates by driver type | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
Amica has expensive car insurance rates for most drivers.
When getting a quote, be sure to answer all the questions about potential discounts so you don't pay more than needed. There are discounts for your car's safety features, how you pay and more.
Is it cheap?
Amica's rates by driver type | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
Amica has expensive car insurance rates for most drivers.
When getting a quote, be sure to answer all the questions about potential discounts so you don't pay more than needed. There are discounts for your car's safety features, how you pay and more.
Is it good?
Amica's reviews | ||
|---|---|---|
| Customer service | ||
| Claims satisfaction | ||
| Few complaints | ||
Amica often ranks as one of the top car insurance companies in customer surveys.
Drivers are happy with Amica's customer service and claims process. This means it could be easier and faster to get your car repaired after a crash. However, Amica does have a high rate of complaints and not all drivers are happy with their insurance.
How's the coverage?
Amica's coverage details | ||
|---|---|---|
| Extra options | ||
| Good for bundling | ||
| Can buy online | ||
Amica has lots of ways to customize your coverage and helpful online tools.
This makes it a great choice if you want flexible coverage that's easy to use.
Best insurance for military members and veterans: USAA
-
Editor's rating:
- Full coverage: $110/mo
- Read the full USAA review
USAA is the best-rated and cheapest car insurance company, if you're eligible for a policy because of your military ties.
Is it cheap?
Is it good?
How's the coverage?
USAA rates by driver type | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
USAA has the best rates and discounts for military members, veterans and their families.
Plus, it has military-specific discounts like savings for storing your car on a military base.
Is it cheap?
USAA rates by driver type | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
USAA has the best rates and discounts for military members, veterans and their families.
Plus, it has military-specific discounts like savings for storing your car on a military base.
Is it good?
USAA's reviews | ||
|---|---|---|
| Customer service | ||
| Claims satisfaction | ||
| Few complaints | ||
USAA has some of the best customer service reviews, and a reputation for helping you get back on the road quickly after a crash.
However recently, USAA has started to get more complaints than average. We don't yet know if this is a fluke, or if the company has started to change.
How's the coverage?
USAA's coverage details | ||
|---|---|---|
| Extra options | ||
| Good for bundling | ||
| Can buy online | ||
Only military members and families are eligible for USAA car insurance.
But if you're eligible, USAA has great coverage options and it even offers auto loans if you're buying a new or used car.
Compare the best car insurance companies near you
State Farm and USAA are the best-rated major companies in many states.
The best car insurance for you depends on where you live. A great way to save money on car insurance is to compare quotes from multiple insurance companies in your area.
Top auto insurance companies by state
State | Top pick | Rating |
|---|---|---|
| Alabama | State Farm | |
| Alaska | State Farm | |
| Arizona | State Farm | |
| Arkansas | State Farm | |
| California | AAA |
Find the Best Cheap Auto Insurance Quotes in Your Area
List of the top-rated car insurance companies
The key to finding the best car insurance is to get quotes from multiple companies to find the best deal for your situation. Dozens of companies offer affordable rates and great customer support.
How to find the best car insurance for you
The best car insurance company for you has great coverage and support at an affordable rate in your area.
- Is the best value: It combines reliable customer service and affordable prices to give you a good deal.
- Has the coverage options you want: Some drivers just need the basics, while others need extra coverage like gap insurance or rideshare protection.
- Is local to you and available in your state: Don't limit yourself to the big names you've seen in ads. The best insurance company for you may only operate locally.
- Is financially stable: This helps you feel confident that your claim will be paid so you can get your car repaired quickly.
How to find the best car insurance companies for affordable rates
Shopping around and using discounts are the best ways to lower your car insurance rates.
Get quotes from multiple companies to find the best rate
Every car insurance company calculates rates differently based on your driving history, the type of car you drive, where you live, your credit history and other factors.
For example, nearly all companies charge higher rates if you have a recent accident or driving incident. But not all companies penalize you the same amount.
If you could get the same car insurance coverage for a cheaper price with a different company, wouldn't you do it? You may be surprised by how often this could apply to you.
Ask for car insurance discounts to help you save even more
In addition, you may qualify for car insurance discounts that could change which company has the best quotes for you. Make sure your final quote has all the discounts you qualify for. Compare rates between companies after you've applied all available discounts.
- Defensive driving
- Accident-free
- Low mileage
- Good student
- Student away
- Military
- Professional organization
- Senior
- Multi-policy bundle
- Multi-vehicle
- Early signing
- Paid-in-full
- E-bill or paperless
- Anti-theft
- Anti-lock brakes
- New car
How to find an insurance company with the best coverage
The best auto insurance companies offer the core coverage options for the main part of your policy. Liability coverage is usually required by your state. Comprehensive and collision can be an optional way to get extra protection on the road.
Extra coverage you can add on
Beyond these basic coverages, insurance companies may offer add-ons. None of these are required by law, so you can choose what you want.
Coverage | Description |
|---|---|
| Accident forgiveness | Your first at-fault accident won't affect your insurance rates. |
| Vanishing deductible | Your deductible gradually declines for each year you're accident-free. |
| Mechanical breakdown | Covers the cost of repairing wear and tear to your car as a substitute for a car warranty. |
| Rideshare insurance | Covers you during the rideshare waiting period when Uber and Lyft coverage doesn't apply. |
How to find the best car insurance for customer support
Use our editor recommendations to find the best car insurance companies in the country. Our five-star ratings are a snapshot of a company's overall quality. This includes customer service, value and coverage.
To learn more about the quality of a company's customer service:
- Browse our editor reviews.
- Look at J.D. Power customer and claims satisfaction survey ratings.
- Compare customer complaints from the National Association of Insurance Commissioners (NAIC).
Car insurance companies with the best customer service handle car insurance claims quickly and fairly.
Great customer support means it's easier to deal with your insurance. This helps your car get fixed as quickly as possible.
The J.D. Power U.S. Auto Claims Satisfaction Survey measures the quality of the claims process, when customer support matters the most. It combines customer feedback on overall satisfaction, claim servicing, settlement of the claim and other factors.
Also use the National Association of Insurance Commissioners (NAIC) to find out about customer satisfaction in your state. The complaint index will tell you if a company receives more complaints than average.
How to find the best company for claims
An insurance company provides you with financial protection when you're facing high costs. The last thing you want is a provider that can't cover your claim.
The best way to quickly assess an insurance company's financial stability is through a credit reporting agency like AM Best. It calculates the ability of insurance companies to pay their claims. Then they're graded on a scale from A++ to D-.
- The best car insurance companies on our list have an A- rating or higher. This means they have an excellent or superior ability to pay claims.
- A company with a rating below a B, or that has recently had its rating downgraded, might have financial problems.
Frequently asked questions
What’s the best car insurance company?
State Farm is the best car insurance company overall for its affordable rates, excellent service and helpful coverage options. If you want customized coverage, choose Shelter Insurance. If you have a teen driver in your family, choose Auto-Owners. And if you want great local agents choose Farm Bureau.
Who has the best car insurance rates?
State Farm has the best car insurance rates compared to other national companies. Minimum coverage from State Farm costs around $55 per month, and full coverage rates average $134 per month. Companies like USAA, NJM and Erie might have cheaper rates, depending on where you live and whether you qualify for coverage.
How can I find the best car insurance for me?
To find the best car insurance for you, figure out how much and what kind of coverage you need. Then get quotes from several companies available near you for the same level of coverage. Compare each company's quotes, customer support ratings, coverage options and discounts.
Who has the best auto insurance near me?
USAA and State Farm have the cheapest rates and best support among the top insurance companies. But the best car insurance in your state might be a smaller local company like Erie or NJM. That's why it pays to compare quotes from several large and small companies near you.
Which insurance company has the best customer satisfaction?
USAA, State Farm, Erie, NJM and Amica are the top-rated car insurance companies for customer satisfaction. All five companies have high scores on J.D. Power's claims satisfaction survey and earn fewer complaints than average, according to the NAIC.
Methodology
ValuePenguin chose the top 10 insurance companies based on an unbiased review of 40 major insurance companies. All of our picks offer insurance in at least five states.
How companies are rated
ValuePenguin assigned its editor ratings for insurance companies based on customer service, affordability, coverage options and shopping experience.
In addition to doing independent research about each company, we also used additional third-party sources.
- J.D. Power's customer surveys about overall satisfaction and the claims experience
- AM Best's ratings for a company's financial strength
- National Association of Insurance Commissioners (NAIC) reports on formal complaints about a company
How costs are calculated
Rates are based on full coverage car insurance using quotes from all residential ZIP codes in the country where the company has a large market share.
Quotes have better coverage than what's required by the states and also include comprehensive and collision coverage to protect your car. Averages are for a 30-year-old man who drives a 2015 Honda Civic EX, unless otherwise noted.
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Comprehensive and collision coverage: $500 deductible
Family rates for a parent and teenager were gathered separately for all ZIP codes in Illinois, Pennsylvania and Georgia for a 50-year-old with an 18-year-old on their policy. These quotes include the limits above, plus $50,000 of uninsured and underinsured motorist property damage coverage.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your own quotes may be different.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
