The 6 Best Car Insurance Companies (2022)
The 6 Best Car Insurance Companies (2022)
The best overall car insurance company is State Farm based on their affordable rates and top-notch customer service.
Why Trust Us
We ranked the top insurance companies based on our own proprietary rating, which measures both cost and customer service.
- The five-star scale is a reflection of both the quality of an insurer's service and its affordability, so the insurers with the best rating get you the best value for your money.
- We collected hundreds of thousands of quotes across the country for various 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.
Best car insurance companies in 2022
Company |
Editor's rating
| Best for |
|---|---|---|
| Best overall | |
| Cheapest rates | |
| Accident history | |
| Bad credit | |
| Young drivers | |
| Military families |
Find the Best Companies in Your State
The best car insurance company for your situation 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.
Best overall car insurance company: State Farm
The good
- Rates are 41% cheaper than national average
- Top customer service scores from our editors and JD Power
The bad
- May require an agent to finalize policies
- High rates for drivers with DUI or poor credit
When shopping for car insurance, two of the most important factors to consider are price and customer service.
State Farm offers very affordable rates and ranks as one of the best car insurance companies for general customer service and for claim satisfaction.
If you have to make a car insurance claim, you can expect some extra costs and headaches, and you will want a company that guarantees a smooth claims process. The company 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.
Insurer |
Editor's rating
|
J.D. Power claims rating
|
|---|---|---|
| State Farm | 862 | |
| Geico | 833 | |
| Nationwide | 814 | |
| Progressive | 830 | |
| Allstate | 825 | |
| USAA* | 884 |
*USAA is only available to military members, veterans and their families.
Find the Best Cheap Auto Insurance in Your Area
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 in our sample. A full coverage policy costs $1,310, 41% less than the national average.
As with all insurers, rates can vary widely depending on the driver. Shoppers looking for strong customer service should get a quote with State Farm and balance the pros and cons against other providers.
- ValuePenguin editor's rating: 4.5/5
- AM Best financial strength rating: A++ (Superior)
- J.D. Power overall customer satisfaction rating: 862
Alternate best car insurance company for customer service: Farm Bureau
Drivers should not always compare major national insurance companies. Local insurers can often provide an equal or better customer service experience 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.
Best car insurance company for affordable coverage: Erie
The good
- Cheap rates for minimum and full coverage policies
- Excellent customer service
The bad
- Service is limited to 12 states and the District of Columbia
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, we found that Erie has the most affordable rates on average.
Erie offers the best rates across multiple coverage levels, making it one of the best insurance companies for drivers looking to save money.
Type of policy | Erie average annual premium | National average annual premium |
|---|---|---|
| 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 — get the most savings with Erie on average. Its policies, adjusted for the minimum requirements in each state, are 38% cheaper than the national average.
Full coverage insurance is also very affordable from Erie. The company charges $1,379 per year, which is 43% cheaper than the national average.
Unfortunately, Erie Insurance is only available in 12 states and DC . Customers looking for cheap insurance outside these states should consider alternate recommendations.
- ValuePenguin editor's rating: 4.5/5
- AM Best financial strength rating: A+ (Superior)
- J.D. Power overall claims satisfaction rating: 880
Alternate best car insurance companies for affordable minimum coverage: Farm Bureau Insurance, American Family and State Farm
Given how restricted Erie Insurance is in availability, individuals looking for cheap car insurance could also consider Farm Bureau Insurance, American Family and State Farm. All three rank among the most affordable for both minimum and full coverage policies.
Farm Bureau Insurance is available wherever an affiliate of the American Farm Bureau Federation does business, while State Farm is offered in most 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 good or young drivers: Root
The good
- Cheap rates for high-risk drivers & teens
- Big discounts for safe drivers
The bad
- Available in 31 states
- 85% more NAIC customer complaints than competitors
Drivers are usually rewarded for having an excellent driving record, but individuals 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 its car insurance rate calculations are almost entirely based on measuring driving behavior, not 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 customer service: According to the National Association of Insurance Commissioners (NAIC), it receives more customer complaints than competitors.
- Limited coverage options: Its policies come with fewer optional add-ons, like gap insurance and rideshare insurance, than policies through other insurers.
- ValuePenguin editor's rating: 3.5/5
- AM Best financial strength rating: N/A
- J.D. Power overall claims satisfaction rating: N/A
Alternate best car insurance company for young drivers: State Farm
If you're a young driver, then you may not want an insurer tracking your driving habits. In that case, you should look for an insurer that tends to have low rates for young drivers.
The cheapest widely available insurer for young drivers is State Farm.
On average, Erie is the cheapest insurer for drivers aged 18 to 25. However, Erie has limited availability across the country.
Young drivers looking for affordable rates should always get auto insurance quotes from multiple insurers.
Best car insurance company for drivers with an accident history: Farm Bureau
The good
- Cheap rates for drivers with an accident
- Top satisfaction scores from our editors and J.D Power
The bad
- Average $50 annual fee per year to become a Farm Bureau member
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 an at-fault accident in their recent history — 6% less than average.
Using rates pulled from all over the country, we found that Farm Bureau only increases prices by $534 per year for a full coverage policy after an accident. Below we list the insurers with the smallest and largest rate changes.
Company | Clean record | One accident | Percentage increase |
|---|---|---|---|
| State Farm | $1,310 | $1,628 | 24% |
| Farm Bureau Insurance | $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.
- ValuePenguin editor's rating: 4.5/5
- AM Best financial strength rating: A (Excellent)
- J.D. Power overall customer satisfaction rating: 856
Best car insurance company for drivers with bad credit: Nationwide
The good
- Cheap rates for drivers with poor credit
- Good customer support ratings
The bad
- Higher than average rates for most other customers
- Auto & home bundles not available in every state
Unless the practice is banned in your state, your credit score can have a major impact on the price of your auto insurance policy. Every insurer 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 individuals with an excellent credit score.
Among major insurers, Nationwide penalizes drivers the least for having a below-average credit score when compared to rates for drivers with an excellent credit score.
Nationwide only increases rates by 52% when a driver goes from having a very good credit score to a poor credit score.
Category | Company | Annual rate with poor credit | Annual rate with very good credit | Difference |
|---|---|---|---|---|
| Insurers that penalize poor credit the least | Nationwide | $2,698 | $1,772 | 52% |
| Farmers | $3,650 | $2,182 | 67% | |
| Allstate | $3,431 | $2,016 | 70% | |
| Insurers that penalize poor credit the most | State Farm | $2,859 | $874 | 227% |
| Erie | $2,846 | $1,051 | 171% | |
| Travelers | $3,208 | $1,511 | 112% |
- ValuePenguin editor's rating: 4/5
- AM Best financial strength rating: A+ (Superior)
- J.D. Power overall customer satisfaction rating: 814
Best car insurance company for military members and veterans: USAA
The good
- Cheapest insurer in most states
- Highly rated customer service
The bad
- Only military members and their families are eligible
- Lengthy online quote process
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.
If you're an active-duty military member or veteran who is eligible, USAA should be one of the first insurers you get quotes from, given its low rates and quality service.
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 service members. 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.
- ValuePenguin editor's rating: 4.5/5
- AM Best financial strength rating: A++ (Superior)
- J.D. Power overall customer satisfaction rating: 884
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.
- It will be a company that balances customer service and price, making it the best value for your situation.
- It will be a company that has all the coverages you want: basic coverages you need and maybe even some unique coverages to fit your situation.
- It won't necessarily be a major name. Many of the best insurers for you might not be advertised as much as the big insurers you've heard of and may only operate locally.
- It will be financially stable so that you won't have to worry about whether claims are paid due to financial issues at the company.
How to find the best insurer for affordability
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.
Prices: You don't always have to pay more to get more
Insurers all use their own methods for calculating the price of a policy for a given driver. This means it's sometimes possible to get a cheaper insurance policy with very little downside.
For example, as we noted in our best companies section, all insurers penalize you for having an accident on your driving history. But not all insurers penalize you to the same extent. In other words, someone with an accident history is treated uniquely by each insurer, given that company's calculation of the risk associated with that particular driver.
The insurer will also have unique calculations for the type of car you drive, where you live, your credit history and a variety of other factors. For this reason, you should always compare quotes from multiple insurers to get a sense of the range of prices available to you. Our recommendations for the best insurers are a good place to start.
Discounts: Insurers may have more savings available than you think
Beyond the base price of a policy, you may qualify for a variety of discounts that could affect which insurer is the cheapest.
Car insurance discounts typically fit into four categories: driver safety, driver status, policy and vehicle.
Discount category | Discount | You get savings for: |
|---|---|---|
| Driver safety | Defensive driving | Taking a certified defensive driving course |
| Accident-free | Having no recent accidents | |
| Low mileage | Driving less than the average driver | |
| Driver status | Good student | Getting good grades |
| Student away | Your child lives away from their covered vehicle | |
| Military | Serving or having served in the military | |
| Professional organization | Being a member of a qualifying trade or alumni organization | |
| Senior | Being 55 or older | |
| Policy | Multipolicy bundle | Buying multiple policies with the same insurer (e.g., homeowners insurance) |
| Multivehicle | Insuring multiple cars with the same company | |
| Early signing | Buying before your current policy expires | |
| Paid-in-full | Paying your entire premium (six months or a year) up front |
Always be sure to follow up with your insurer and check that all discounts are applied to your quote, as estimates from online quote tools may not apply to all available policies. Only compare rates between companies after you've applied all available discounts.
How to find an insurance company with coverages that fit your needs
All the best insurance companies offer the same standard coverages — some of which are required by law — that offer protection against the cost of personal injury and property damage on the road.
Beyond these standard coverages, insurers may offer some of the following optional coverages or features to appeal to specific types of policyholders. None of these are required by law and may not fit your needs. If they do, it may be worth going with an insurer that has the coverage over one that doesn't.
- 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: Covers the costs of expenses to assist you when your vehicle breaks down, such as towing, battery service, flat-tire service and fuel delivery.
- Rental car reimbursement: Covers the cost of a rental car if your vehicle is being repaired in the shop after a covered accident.
In summary, almost all insurers offer the standard coverages we listed. And many — but not all — offer additional coverage. However, outside of standard coverages, the features an insurer offers may differ from state to state.
Always browse an insurer's website and quote tool, or talk to a customer service representative, to make sure you understand all the coverages available to you.
How to find the best insurer for customer service
When you file a claim with your insurer, you'll want to have the best service possible to ensure your claim is handled in a fair and timely fashion.
To get a feel for the quality of a given company's customer service, we recommend:
- Browsing our editor ratings and reviews
- Looking at J.D. Power survey results
- Doing your own research at the National Association of Insurance Commissioners (NAIC)
We suggest that you begin your research with our editor recommendations. Our ratings (out of five stars) are an estimate of insurers' overall quality — combining service, value and coverages — but customer service is weighted heavily in the final score.
You want a financially strong insurer so you know your claims will be paid
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.
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.
Frequently asked questions
What is the best car insurance?
ValuePenguin's top-rated national insurers are USAA, State Farm, Farm Bureau and Amica. We also recommend regional insurers NJM and Erie in the Northeast and Auto-Owners in the Midwest 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, you may be able to find even better rates from a smaller insurance company like Erie or Concord, depending on where you live.
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 top national insurers and smaller regional companies for the same level of coverage. Consider each insurer'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.