The 6 Best Car Insurance Companies (2022)
The 6 Best Car Insurance Companies (2022)
State Farm is the best overall car insurance company thanks to affordable rates and top-notch customer service.
Best car insurance companies in 2022
Company |
Rating
| Best for |
|---|---|---|
| Best overall | |
| Best rates | |
| Young drivers | |
| Accidents | |
| Bad credit | |
| Military |
- Our proprietary five-star rating scale is a reflection of both the quality of a company's service and its affordability, so the companies with the best rating have the best value for your money.
- We collected hundreds of thousands of quotes across the country for different drivers. We also incorporated customer surveys, official complaints from the National Association of Insurance Commissioners (NAIC) and feedback from research companies like J.D. Power's auto insurance satisfaction rating (rated out of 1,000) and AM Best's financial strength rating.
Find the Best Cheap Auto Insurance in Your Area
Best car insurance company overall: State Farm
-
Editor rating
-
Annual rate
$1,310 ?
-
J.D. Power
862 ? -
AM Best
A++ ?
Pros and cons
When shopping for car insurance, two of the most important factors to consider are price and customer service.
State Farm has very affordable rates and ranks as one of the best car insurance companies for customer service and claim satisfaction.
If you have to make a car insurance claim, a company with a smooth claims process will have fewer extra costs and headaches. State Farm received above-average scores from J.D. Power for overall customer satisfaction, shopping experience and claims satisfaction.
State Farm receives fewer customer complaints than its competitors according to the National Association of Insurance Commissioners (NAIC) complaint index. In addition, our editors awarded State Farm four and a half out of five stars — a rating that encompasses customer satisfaction scores, value and coverage options.
State Farm also received the highest financial stability rating from AM Best — A++. That means that the company has a superior ability to pay out claims, even in difficult economic times.
With State Farm, drivers don't have to pay more for excellent customer service. It is one of the most affordable large insurance companies. A full coverage policy costs $1,310, 41% less than the national average.
One caveat: Although State Farm is known for having great support online or through an agent, the online quote process is not the most convenient. You might need to call an agent to finish signing up for a policy.
Local insurers can often provide an equal or better customer service experience compared to major national brands due to more personalized one-on-one attention.
The state insurance affiliates of the American Farm Bureau Federation are usually a great choice for shoppers seeking excellent customer service. Farm Bureau Insurance affiliates often rank among the best companies for any given state based on our editor's rating and J.D. Power customer satisfaction scores.
Most affordable car insurance company: Erie
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Editor rating
-
Annual rate
$1,379 ?
-
J.D. Power
880 ? -
AM Best
A+ ?
Pros and cons
The price you pay for auto insurance is important. With many insurers offering similar levels of customer service and types of coverage, rates should definitely factor into your decision. If you're shopping for the cheapest possible car insurance, Erie has some of the most affordable rates on average.
Erie offers some of the best rates across multiple coverage levels, making it one of the best insurance companies for affordable car insurance.
Type of policy | Erie average annual rate | National average annual rate |
|---|---|---|
| Minimum coverage | $503 | $875 |
| Full coverage | $1,379 | $2,208 |
Drivers looking for a minimum coverage policy — one that only meets the insurance minimums required by their state — can get significant savings with Erie. Erie car insurance policies, adjusted for the minimum requirements in each state, are 43% cheaper than the national average.
Full coverage insurance is also very affordable from Erie. The company charges $1,379 per year, which is 38% cheaper than the national average.
Unfortunately, Erie Insurance is only available in 12 states and DC. Customers looking for cheap insurance outside these states will need to consider another company, like State Farm, Farm Bureau, American Family or Geico.
Drivers looking for cheap car insurance could also consider Farm Bureau Insurance, American Family and State Farm. All three rank among the most affordable companies for both minimum and full coverage policies.
Farm Bureau Insurance is available in most states, while State Farm is available in all states.
Company | Minimum coverage | Full coverage |
|---|---|---|
| Farm Bureau | $472 | $1,576 |
| State Farm | $532 | $1,310 |
| American Family | $634 | $1,755 |
| National average | $875 | $2,208 |
Best car insurance company for safe drivers: Root
-
Editor rating
-
Annual rate
N/A ?
-
J.D. Power
N/A ? -
AM Best
N/A ?
Pros and cons
Drivers are usually rewarded for having an excellent driving record, but people in high-risk demographics may find that their insurance rates are still extremely high. For example, drivers in their teens and early 20s pay more for car insurance than most other drivers, even if they're exceptionally safe on the road.
Root is relatively unique because your car insurance rate is almost entirely based on your driving behavior instead of your demographics.
Drivers who perform well based on select driving behaviors, such as braking habits and speed, can get big savings with Root compared to a traditional insurer.
Since young drivers are statistically more likely to get in an accident, the demographic as a whole faces high car insurance rates. Root lets you prove you're a safer driver than your peers.
However, there are some risks and downsides associated with Root.
- Poor claims process: According to the National Association of Insurance Commissioners (NAIC), Root receives about twice as many customer complaints as competitors, mostly for claim delays and unresponsiveness.
- Limited coverage options: You can't get some optional add-ons like gap insurance and rideshare insurance.
State Farm and Erie have the cheapest rates for young drivers on average.
If you're a young driver who doesn't want an insurance company tracking your driving habits, look for a company that tends to have low rates for young drivers. Young drivers looking for affordable rates should get auto insurance quotes from multiple companies.
Best car insurance for drivers with accidents or tickets: Farm Bureau
-
Editor rating
-
Annual rate
$1,576 ?
-
J.D. Power
856 ? -
AM Best
A ?
Pros and cons
If you have a recent accident in your driving history, insurers are going to charge you higher rates. However, they won't all penalize you to the same degree.
Farm Bureau raises rates by 34% when drivers have a recent at-fault accident. Most companies will increase your rates by 46%.
Using rates pulled from all over the country, Farm Bureau only increases prices by an average of $534 per year for a full coverage car insurance policy after an accident. That's 6% less than average.
Company | Clean record | One accident | Rate change |
|---|---|---|---|
| State Farm | $1,310 | $1,628 | 24% |
| Farm Bureau | $1,576 | $2,110 | 34% |
| Allstate | $2,349 | $3,610 | 54% |
| Geico | $1,917 | $3,166 | 65% |
Rate change is after an at-fault accident causing $2,000 in property damage.
While Farm Bureau is an affordable company in most states, you will need to pay to access those cheap rates. Like AAA, you'll need to join your local Farm Bureau group in your state. And while membership is open to anyone, not just farmers, you'll typically have to pay an annual fee of around $50 per year.
Best car insurance company for drivers with bad credit: Nationwide
-
Editor rating
-
Annual rate
$2,182 ?
-
J.D. Power
814 ? -
AM Best
A+ ?
Pros and cons
Your credit score can have a major impact on the price of your auto insurance policy in most states. Every company calculates its own credit-based insurance score and uses it to adjust its base rates. In many cases, drivers with poor credit pay twice as much for car insurance as people with an excellent credit score.
Nationwide has one of the lowest rate hikes for drivers with poor credit scores, compared to other major insurance companies.
Drivers with a poor credit score will only pay 52% higher car insurance rates with Nationwide. The average increase is a 60% rate hike for drivers with poor credit.
Company | Poor credit | Very good credit | Change |
|---|---|---|---|
| Nationwide | $2,698 | $1,772 | 52% |
| Farmers | $3,650 | $2,182 | 67% |
| Allstate | $3,431 | $2,016 | 70% |
| State Farm | $2,859 | $874 | 227% |
| Erie | $2,846 | $1,051 | 171% |
| Travelers | $3,208 | $1,511 | 112% |
Average annual car insurance rates for full coverage based on credit score
Nationwide may have affordable rates for drivers with poor credit, but Nationwide might not be the cheapest company if you have a good credit score. Companies like State Farm, Erie and Geico tend to have cheaper rates for drivers with average to excellent credit.
Best car insurance for military members and veterans: USAA
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Editor rating
-
Annual rate
$1,176 ?
-
J.D. Power
884 ? -
AM Best
A++ ?
Pros and cons
Year after year, USAA combines the best of both worlds: It's one of the most affordable auto insurance companies and has one of the best customer service reputations in the industry.
USAA has some of the best rates and quality service if you're an active-duty military member or veteran.
According to the National Association of Insurance Commissioners (NAIC), USAA receives fewer complaints from policyholders than its competitors. The company also holds the highest J.D. Power claims satisfaction score.
Beyond its service and rates, USAA also offers discounts that cater to the lifestyles of military drivers. If your vehicle is garaged on a military base, you can get a discount of 15% on the cost of comprehensive insurance. The company also has a vehicle storage discount that can save policyholders up to 60% off their premium if their vehicle is stored in a secure location while not used, meaning deployed policyholders can get coverage at a discount.
Unfortunately, you'll need to qualify for USAA membership to get a car insurance policy. Membership is limited to current and former military members and certain family members.
Compare the best car insurance companies by state
The best car insurance company for you will depend on your location. A great way to save money on car insurance is to compare quotes from multiple insurance companies in your area.
List of the top-rated car insurance companies
The key to finding the best car insurance is to comparison shop and research multiple insurers. Besides our top-rated insurance picks, you have dozens of other companies to choose from that offer affordable rates and great customer support.
Rank | Company | Editor's rating |
|---|---|---|
| 1 | State Farm | |
| 2 | USAA | |
| 3 | Erie | |
| 4 | Amica | |
| 5 | Farm Bureau | |
| 6 | AAA | |
| 7 | Ameriprise | |
| 8 | Chubb | |
| 9 | Encompass | |
| 10 | Geico |
How to find the best car insurance for you
Ultimately, the best car insurance company for you will combine a variety of factors.
- Combines good customer service and good prices, making it the best value for your situation.
- Has all the coverage you want. Some drivers just need the basics, while others need rarer coverage like gap insurance or rideshare protection.
- Is local to you and available in your state. But the best insurer for you might not be a big name you've seen in ads and might only operate locally.
- Is financially stable so your claim will be paid out and you can get your car repaired quickly.
How to find the best car insurance company for affordable rates
If you could get the same car insurance coverage for a cheaper price with a different insurer, wouldn't you do it? You may be surprised by how often this scenario could apply to you.
Get quotes from multiple companies to find the best deal for you
Every car insurance company calculates rates differently for a given driver. You could get a cheaper insurance policy with very little downside.
For example, all companies charge higher rates if you have a recent accident or driving incident. But not all companies penalize you to the same extent. In other words, someone with an accident history is treated uniquely by each company based on that company's calculation of the risk for that particular driver.
Each car insurance company will also have unique calculations for the type of car you drive, where you live, your credit history and a variety of other factors. That's why you should compare quotes from multiple companies, especially if your driving record recently changed.
Ask for car insurance discounts to help you save even more
Beyond the base price of a policy, you may qualify for car insurance discounts that could affect which company is the cheapest for you. Make sure your final quote has all the discounts you qualify for, and compare rates between companies after you've applied all available discounts.
Discount | How you save |
|---|---|
| Defensive driving | Take a certified defensive driving course |
| Accident-free | Have no recent tickets or accidents |
| Low mileage | Drive less than the average, around 12,000 miles per year |
| Good student | Get good grades, at least a B average or 3.0 GPA |
| Student away | Your child leaves their car at home while away at school |
How to find an insurance company with the best coverage
All the best insurance companies offer the same standard coverages — some of which are required by law — that offer protection for personal injury and property damage on the road.
Optional coverage you can pay to add
Beyond these standard coverages, insurers may offer optional coverages or features. None of these are required by law, and you might not need every one.
- Accident forgiveness: Your first at-fault accident won't affect your insurance rates.
- Vanishing deductible: The deductible on your comprehensive and collision insurance gradually declines for each year you're accident-free.
- Mechanical breakdown coverage: Insurance covers the cost of repairing gradual wear and tear to the vehicle as a substitute for a car warranty from the dealer.
- Rideshare insurance: For those who use their personal vehicle working for rideshare companies like Uber and Lyft, this insurance fills the coverage gaps in the insurance policies provided by those companies.
- Gap insurance: If you lease or finance your car, this covers the difference between the amount you owe your lender and the value of your car in the event of a total loss.
- Emergency roadside assistance: This pays for help when your vehicle breaks down, such as towing, battery service, flat-tire service and gas delivery.
- Rental car reimbursement: This covers the cost of a rental car if your vehicle is being repaired in the shop after a covered accident.
How to find the best company for customer service
A company with the best service will handle your car insurance claim quickly and fairly so you can get your car fixed as fast as possible.
To get a feel for the quality of a given company's customer service, you can:
- Browse our editor ratings and reviews
- Look at J.D. Power survey results
- Compare customer complaints with the National Association of Insurance Commissioners (NAIC)
Start your research with our editor recommendations. Our editorial ratings out of five stars are an estimate of each company's overall quality — combining service, value and coverages — but customer service is weighted heavily in the final score.
If you're interested in more customer service data, you can also look at J.D. Power's U.S. Auto Claims Satisfaction Study. J.D. Power surveys customers to measure the quality of the claims process — the most important part of an insurer's customer service — by overall satisfaction, claim servicing, settlement of the claim and other factors.
If these sources aren't enough and you want to get some hard data on the service experience, you can check out the National Association of Insurance Commissioners (NAIC) website. The NAIC measures service using a customer complaint index, which indicates how often policyholders file official complaints about an insurer compared to the national median.
A financially strong company will pay your claim
An insurance company provides you with financial protection when you're facing exorbitant costs. The last thing you want is an insurer that can't cover your expenses because it can't meet its own financial obligations.
The best way to quickly assess an insurance company's financial stability is through a financial strength rating from professional analysts. We recommend the AM Best financial strength rating. AM Best, a credit rating agency, independently assesses the ability of insurance companies to pay their claims and rates them on a traditional grading scale from A++ to D-. An A- rating or higher indicates an excellent or superior ability to pay claims.
However, some smaller, local insurers may not have the same financial strength. If the insurer you're looking for isn't on our list, look online to see if AM Best has rated its financial strength to give you peace of mind that the company backing your insurance coverage is on sound footing.
Frequently asked questions
What is the best car insurance?
State Farm is the best car insurance company overall if you want the best combination of affordable rates, excellent service and lots of coverage options.
Who has the best car insurance rates?
State Farm is the best car insurance company with cheap rates that's also one of the most highly rated and widely available. Minimum coverage rates from State Farm average $532 per year, and full coverage rates average $1,310. However, companies like USAA, Farm Bureau 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 your budget plus how much and what kind of coverage you need. Then get quotes from several companies available near you for the same level of coverage. Consider each company's price, customer service ratings and coverage options. Make sure you understand what's included with each policy, including perks and discounts.
Who has the best auto insurance near me?
USAA and State Farm have the cheapest rates in most states among the top insurers, but the best cheap car insurance in your state might be a smaller local company. That's why it pays to compare quotes from several large and small companies near you.
Methodology
ValuePenguin assigned its editor's ratings for insurance companies based on customer service, affordability, coverages offered and the shopping experience.
An insurer is not included in the best companies list unless it does business in at least five states. If companies were marked N/A for J.D. Power claims satisfaction or AM Best financial strength, it's because they were not rated. J.D. Power's annual survey rates insurance customer satisfaction out of 1,000 points. Top companies tend to score at least 820 points. We calculated the average score across all available regions.
We collected auto insurance quotes across 50 states and the District of Columbia to determine average rates. Our base driver was a 30-year-old male who drove a 2015 Honda Civic EX, and quotes were drawn from all available ZIP codes in each state. Quotes were for a full coverage policy unless otherwise noted.
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.