The 10 Best Car Insurance Companies (2023)
The 10 Best Car Insurance Companies (2023)
State Farm is the best overall car insurance company, thanks to affordable rates and reputable customer service.
Best car insurance companies in 2023
Company |
Rating
| Best for |
|---|---|---|
| Full coverage | |
| Minimum coverage | |
| Accident history | |
| Family with teens | |
| New drivers |
Our editorial team ranked the best insurance companies based on cost and customer service.
- 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 for full coverage: State Farm
-
Editor rating
-
Full coverage rate
$99/mo ?
-
J.D. Power
892 ? -
AM Best
A++ ?
Pros and cons
State Farm has the best full coverage car insurance rates in most states. It also ranks as one of the most reliable companies for customer service and claim satisfaction.
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 from State Farm costs around $99 per month — 33% less than the national average.
If you're involved in an accident, a company with a smooth claims process will help you get back on the road quickly with minimal out-of-pocket costs.
State Farm consistently receives above-average customer satisfaction scores from J.D. Power and the NAIC.
Although State Farm is known for having great support, the online quote process is not the most convenient. You might need to call an agent to finish signing up for a policy.
Local insurance companies can often provide affordable rates for full coverage insurance. Regional companies also tend to offer a great customer service experience due to more personalized one-on-one attention.
Erie and Auto-Owners both have excellent customer service reviews and cheap full coverage insurance quotes for most drivers if these companies are available in your state.
Farm Bureau is also a great choice for shoppers who want the best customer service. Farm Bureau Insurance often ranks among the best companies for any given state based on its affordable quotes and high customer satisfaction scores.
Best liability-only car insurance: Erie
-
Editor rating
-
Liability-only rate
$39/mo ?
-
J.D. Power
901 ? -
AM Best
A+ ?
Pros and cons
Erie offers some of the best car insurance rates for minimum and full coverage.
Drivers looking for a minimum coverage policy — one that only meets the insurance minimums required by their state — can get significant savings with Erie. Minimum coverage car insurance policies from Erie cost around $39 per month, which is 33% cheaper than the national average.
Average monthly car insurance quotes
Company | Minimum coverage | Full coverage |
|---|---|---|
| Erie | $39 | $101 |
| State Farm | $41 | $99 |
| Farm Bureau | $43 | $134 |
| Geico | $52 | $140 |
| National average | $58 | $148 |
Full coverage insurance is also very affordable from Erie. The company charges $101 per month, which is 32% cheaper than the national average.
Unfortunately, Erie Insurance is only available in 12 states and Washington, D.C. That means most drivers can't buy a policy from Erie. Drivers that can't get car insurance from Erie should consider State Farm.
If you can get coverage from Erie, you can rest assured that you'll be taken care of if you're in an accident or need to make changes to your policy. Erie has a reputation for excellent customer service. It earned the second-highest score on J.D. Power's claims satisfaction survey.
Drivers looking for cheap car insurance should also consider Auto-Owners, State Farm and Farm Bureau. All four 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. Auto-Owners is only available in 26 states.
Monthly car insurance quotes
Company | Minimum coverage | Full coverage |
|---|---|---|
| Auto-Owners | $36 | $120 |
| State Farm | $41 | $99 |
| Farm Bureau | $43 | $134 |
| National average | $58 | $148 |
Best-rated car insurance company: Amica
-
Editor rating
-
Full coverage
$208/mo ?
-
J.D. Power
895 ? -
AM Best
A+ ?
Pros and cons
Amica is the best-rated widely available car insurance company when it comes to customer service.
Choosing a company with a reputation for great service is just as important as finding the cheapest rate. If you're ever in a car crash, you'll want your insurance company to make the claims process easy so you can get back to normal quickly.
Amica earned one of the highest scores on J.D. Power's claims satisfaction survey, which means drivers are happy with its claims process. In addition, it only receives around two-thirds as many complaints as other insurance companies of a similar size, according to the NAIC.
Amica's great service comes at a price though. A full coverage policy from Amica costs around $208 per month, which is 41% more expensive than the national average. Although the company offers lots of discounts, most drivers can probably find cheaper coverage elsewhere.
Local insurance companies are known for having excellent customer service. Drivers looking for great support should compare smaller, regional insurance companies to see if they're a good fit.
Best-rated regional and local car insurance companies
Company | Availability |
Editor's rating
|
NAIC (lower is better)
|
|---|---|---|---|
| Auto-Owners | 26 states | 0.47 | |
| Shelter | 15 states | 0.39 | |
| IMT Insurance | 6 states | 0.00 | |
| NJM | 5 states | 0.06 | |
| Frankenmuth | 2 states | 0.57 | |
| AAA of Southern California | 1 state | 0.00 |
NAIC scores are based on how many customer complaints a company has compared to its size. A score of 1 is average, while a score of 0.5 means a company has half the complaints compared to similar companies.
Best for families with teen drivers: Auto-Owners
-
Editor rating
-
Family rate
$153/mo ?
-
J.D. Power
878 ? -
AM Best
A++ ?
Pros and cons
Auto-Owners has the best car insurance rates for parents adding a teen driver to their policy.
Since young drivers are more likely to get in an accident, teen drivers generally pay high car insurance rates. Parents that add a teenager to a policy will find the cheapest quotes at Auto-Owners.
Full coverage from Auto-Owners costs around $153 per month for a 50-year-old and an 18-year-old on the same policy. That's $118 less per month than average.
Auto-Owners also has affordable rates for young drivers who buy an individual policy. Minimum coverage from Auto-Owners costs $121 per month for an 18-year-old driver, on average. That's 34% cheaper than the national average.
Monthly quotes for an 18-year-old driver
Company | Minimum coverage | Full coverage |
|---|---|---|
| Erie | $99 | $247 |
| Farm Bureau | $111 | $299 |
| Auto-Owners | $121 | $313 |
| State Farm | $124 | $272 |
| Geico | $146 | $374 |
Auto-Owners offers several discounts for teen drivers to save money on car insurance. Young drivers can earn a good student discount of up to 20% by maintaining a "B" average or better.
Drivers can expect a great customer service experience with Auto-Owners. This can be particularly useful for teen drivers, who are more likely to get in an accident and might need extra help from an agent who can walk them through the claims process. The company receives fewer complaints than competitors of a similar size, according to the NAIC.
Erie, Farm Bureau and State Farm also have cheap rates for parents that add a teenage driver to their policy.
Full coverage quotes for a family car insurance policy
Company | Monthly cost |
|---|---|
| Erie | $174 |
| Farm Bureau | $190 |
| State Farm | $218 |
| Average | $271 |
Rates are based on a 50-year-old and an 18-year-old on the same policy.
Parents looking for affordable rates should get auto insurance quotes from multiple companies to get the best value on car insurance policies.
Best car insurance for new drivers: Allstate
-
Editor rating
-
Liability-only
$100/mo ?
-
J.D. Power
870 ? -
AM Best
A+ ?
Pros and cons
New drivers can find the best minimum coverage car insurance rates from Allstate.
New drivers tend to pay more for car insurance. Their lack of experience behind the wheel means they're more likely to make a mistake and cause an accident. This makes them more expensive to insure.
New drivers under age 25 pay around $100 per month for a minimum coverage policy from Allstate. That's $89 per month cheaper than average. Allstate has the cheapest minimum coverage rates for new drivers over 25, too. At $34 per month, coverage from Allstate is $41 less per month than average for these drivers.
Allstate also offers lots of discounts that new drivers can easily qualify for. For example, Allstate offers discounts for making automatic payments or signing up for its usage-based program, which tracks your driving habits and helps you save more as you get more driving experience.
However, new drivers who get in an accident may not have the best experience with Allstate. Although Allstate receives fewer NAIC complaints than similar insurance companies, Allstate scores below average on J.D. Power's claims satisfaction survey.
State Farm and Geico also have affordable rates for new drivers.
Both companies offer minimum coverage quotes at around $130 per month for new drivers under 25 years old. In addition, State Farm has the best full coverage car insurance rates for new drivers, at $276 per month.
Best car insurance for drivers with accidents or tickets: Farm Bureau
-
Editor rating
-
Full coverage
$134/mo ?
-
J.D. Power
N/A ? -
AM Best
A ?
Pros and cons
Farm Bureau raises full coverage rates by only 32% when drivers have a single at-fault accident. The average rate increase is 49%.
If you've caused a car crash recently, insurance companies are going to charge you higher rates. However, they won't all penalize you to the same degree.
Other companies increase rates by an average of 49% after an at-fault accident, or an extra $72 per month. With Farm Bureau, you can expect an average rate increase of only $43 per month.
Monthly full coverage car insurance quotes with an accident
Company | Clean record | One accident | Rate change |
|---|---|---|---|
| State Farm | $99 | $125 | 26% |
| Farm Bureau | $134 | $177 | 32% |
| Allstate | $195 | $305 | 56% |
| Geico | $140 | $238 | 71% |
While Farm Bureau is an affordable company in most states, you will need to join your local Farm Bureau group to buy a policy. While membership is open to anyone, not just farmers, you'll typically have to pay a fee of around $50 per year.
Drivers with a recent accident on their record should also compare quotes from State Farm, Erie and Auto-Owners. All three of these companies raise full coverage rates by an average of 28% or less after a single accident.
State Farm has the best full coverage car insurance rates for drivers after an accident, at $125 per month.
Best car insurance company for drivers with bad credit: Geico
-
Editor rating
-
Poor credit rate
$212/mo ?
-
J.D. Power
881 ? -
AM Best
A++ ?
Pros and cons
Geico has the best car insurance quotes for drivers with poor credit scores, at $212 per month for full coverage.
Your credit score can have a major impact on the price of your auto insurance in most states. Drivers with poor credit pay an average of 72% more for car insurance than people with a good credit score.
Drivers with a poor credit score will only pay 51% higher car insurance rates with Geico.
Monthly full coverage car insurance rates based on credit score
Company | Poor credit | Good credit | Change |
|---|---|---|---|
| Geico | $212 | $140 | 51% |
| Erie | $232 | $101 | 130% |
| Nationwide | $236 | $164 | 44% |
| State Farm | $241 | $99 | 143% |
| National average | $254 | $148 | 72% |
Geico has affordable rates for drivers with poor credit, but it might not be the cheapest company if you have a good credit score. Companies like State Farm, Erie and Auto-Owners tend to have cheaper rates for drivers with good credit, and they have better customer support.
Mercury has the most affordable rates for drivers with poor credit, at $124 per month for a full coverage policy. That's the same quote for drivers with good credit scores. However, Mercury is only available in 11 states, so many drivers can't take advantage of its cheap rates.
Drivers with poor credit should also compare quotes from Country Financial, where a full coverage policy costs $167 per month.
Best usage-based car insurance: Nationwide
-
Editor rating
-
Full coverage
$164/mo ?
-
J.D. Power
876 ? -
AM Best
A+ ?
Pros and cons
Nationwide offers the best usage-based car insurance for people who don't drive much or have good driving habits.
Drivers get a 10% discount when they sign up for the Nationwide SmartRide program. You'll use an app or plug-in telematics device to monitor your driving habits for four to six months, and then you can earn a permanent discount of up to 40%.
One major benefit of SmartRide is that your rates can't go up if you get a bad driving score, unlike with some other usage-based programs.
That makes SmartRide ideal not just for safe drivers but also for people who want help improving their driving abilities.
People that don't drive often can also save with Nationwide SmartMiles, which is the company's pay-per-mile program. With SmartMiles, you pay a monthly base rate plus a per-mile rate, so you're rewarded with lower rates for driving less.
However, Nationwide's rates are on the expensive side for drivers that don't qualify for discounts or aren't comfortable having their driving tracked. At $164 per month, full coverage insurance from Nationwide is 11% more expensive than the national average.
Liberty Mutual also offers a great usage-based program for safe drivers. Drivers can earn a discount of up to 30% with Liberty Mutual RightTrack by monitoring their driving habits for only 90 days.
Best car insurance coverage options: Travelers
-
Editor rating
-
Full coverage
$146/mo ?
-
J.D. Power
871 ? -
AM Best
A++ ?
Pros and cons
Travelers offers lots of extra coverage options that you can purchase that you won't find with every company, including gap insurance, rideshare coverage and new car replacement.
That's why drivers that need more coverage than a basic car insurance policy provides should consider Travelers.
Coverage | How it works |
|---|---|
| Accident forgiveness | Your rates won't go up after an accident, even if it's your fault |
| Gap insurance | Pays off the difference between what your car is worth and what you owe if you have a loan or lease |
| New car replacement | If your brand new car is totaled, you'll get a brand new replacement |
| Rental car coverage | Get a rental car for daily activities if your vehicle is in the repair shop after a crash |
| Rideshare coverage | Covers you when you're off duty if you drive for Uber, Lyft or another rideshare or meal delivery service |
| Roadside assistance | Call for roadside help if you have a flat, you run out of gas or your car breaks down on the side of the road |
However, car insurance from Travelers isn't cheap. At $146 per month, a full coverage policy from Travelers costs about the same as the national average. That's before the cost of adding on extra coverage.
Liberty Mutual is also an excellent choice for drivers looking for extra coverage. Liberty Mutual offers:
- Accident forgiveness
- Better car replacement
- Gap coverage
- Mexico car insurance
- New car replacement
- Original parts replacement
- Roadside assistance
- Rental car reimbursement
Best car insurance for military members and veterans: USAA
-
Editor rating
-
Full coverage rate
$91/mo ?
-
J.D. Power
909 ? -
AM Best
A++ ?
Pros and cons
USAA has some of the best rates and quality service if you're a military member, veteran or family member.
A full coverage policy from USAA costs $91 per month, on average. That's 39% cheaper than the national average.
USAA is one of the top-ranked companies for customer support. According to the NAIC, USAA consistently receives fewer complaints from drivers than its competitors. USAA also holds the highest J.D. Power claims satisfaction score nearly every year.
USAA 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. You can also get a vehicle storage discount that can save you up to 60% on car insurance if your vehicle is stored in a secure location while you're deployed.
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 where you live. A great way to save money on car insurance is to compare quotes from multiple insurance companies in your area.
State | Best company | Rating |
|---|---|---|
| Alabama | State Farm | |
| Alaska | State Farm | |
| Arizona | State Farm | |
| Arkansas | Farm Bureau | |
| California | AAA |
List of the top-rated car insurance companies
The key to finding the best car insurance is to comparison shop and research multiple insurance companies. Besides our top-rated insurance picks, you have dozens of other companies to choose from that offer affordable rates and great customer support.
Company | Editor's rating | |
|---|---|---|
| USAA | |
|
| Erie | |
|
| State Farm | |
|
| Auto-Owners | |
| AAA |
How to find the best car insurance for you
The best car insurance company should have the best coverage and support you can afford.
- Combines reliable customer service and affordable prices, making it the best value.
- Has all the coverageyou 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. The best insurance company for you may only operate locally, so it may not be a big name you've seen in ads.
- 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 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 the same quality of service.
For example, nearly all companies charge higher rates if you have a recent accident or driving incident. But not all companies penalize you to the same extent. Someone with an accident history is treated differently by each company based on that company's risk calculation 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
In addition, 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. 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 auto insurance companies offer the same standard coverages — some of which are required by your state — that offer protection for personal injury and property damage on the road.
Optional coverage you can pay to add
Beyond these basic coverages, insurance companies may offer optional coverages or features. None of these are required by law, and you might not need every one.
Coverage | Description |
|---|---|
| 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 company's customer service, you can:
- Browse our editor ratings and reviews
- Look at J.D. Power survey ratings
- Compare customer complaints from 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 coverage — but customer service is weighted heavily in the final score.
The J.D. Power U.S. Auto Claims Satisfaction Study 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 you want to get some hard data on the support experience, check out the National Association of Insurance Commissioners (NAIC) website. The NAIC measures service using a customer complaint index, which indicates how often drivers file official complaints about an insurance company 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 high costs. The last thing you want is a provider 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. A company with a rating below a B or that's recently had its rating downgraded might have financial problems.
Frequently asked questions
What is the best car insurance right now?
State Farm is the best car insurance company overall if you want the best combination of affordable rates, excellent service and helpful 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 $41 per month, and full coverage rates average $99. 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 insurance companies, 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.
Which insurance company has the highest customer satisfaction?
USAA, State Farm, Erie, Auto-Owners and Amica are the top-rated car insurance companies for customer satisfaction. All four companies have high scores on J.D. Power's claims satisfaction survey and earn fewer complaints than average according to the NAIC.
Methodology
ValuePenguin assigned its editor's ratings for insurance companies based on customer service, affordability, coverage options and the shopping experience.
An insurance company 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 880 points. We calculated the average score across all available regions.
We collected auto insurance quotes across 50 states and Washington, D.C., to determine average rates. Quotes are based on a 30-year-old man who drives a 2015 Honda Civic EX with a full coverage policy, unless otherwise noted. Rates were gathered from all available ZIP codes in each state.
Full coverage rates include the following limits:
Coverage | Limit |
|---|---|
| Bodily injury liability | $50,000 per person/$100,000 per accident |
| Property damage liability | $25,000 per accident |
| Uninsured/underinsured motorist coverage | $50,000 per person/$100,000 per accident |
| Comprehensive and collision coverage | $500 deductible |
To compare rates for a family policy, we gathered quotes from ZIP codes across 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/underinsured motorist property damage coverage.
Rates for new drivers are based on a minimum coverage policy for a driver living in Texas.
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.