Best Car Insurance: Our Picks

  • The best car insurance provider overall is State Farm, according to our most recent auto insurance study.
  • Several other providers also earned impressive scores in our study and are worth considering.
  • Understanding how car insurance works, the costs you can expect, and which policies are available to you can help you find the best auto coverage for you.

Affiliate disclosure: Automoblog and its partners may be compensated when you purchase the products in this article.

Our expert team researched the best car insurance insurance companies in the industry, assessing each company’s coverage options, car insurance rates, industry ratings, and customer reviews. To help make finding the right provider easy for you, we’ve narrowed down the list to only the top overall options in our study. 

We strongly recommend getting auto insurance quotes from multiple insurers before making a decision on your next car insurance company. Read more to see our recommendations and learn more about what to look for when you compare car insurance providers.

The Best Car Insurance Companies

State Farm earned the highest score of any provider and with it, this year’s award for Best Overall. But that doesn’t mean that State Farm is the best insurer for everyone. Each of the providers mentioned in this article performed well above average in our study and could make a great option for you.

Car Insurance Company Overall Score Coverage Score Average Annual Full-Coverage Rate Estimate
State Farm 4.7 4.6 $1,481
USAA 4.6 4.7 $1,054
Geico 4.6 4.2 $1,308
Liberty Mutual 4.5 4.4 N/A
Travelers 4.5 4.7 $1,669
Erie 4.4 4.3 $1,238
Progressive 4.4 4.4 $1,611
Nationwide 4.4 4.2 $1,281
Auto-Owners 4.3 4.3 $1,338

*Editor’s note: The estimated rates listed in this article are based on the profile of a 35-year-old driver with good credit and a clean driving record unless otherwise noted.

State Farm: Best Overall

Availability: 50 states

AM Best Rating: A++

2022 J.D. Power Claims Satisfaction Score: 882/1,000

State Farm Pros and Cons

State Farm Pros State Farm Cons
Largest network of local insurance agents in the industry Some complaints of a slow or difficult claims process
Lots of discount options, including ones for younger drivers No accident forgiveness option
Several mobile apps Mixed customer reviews

What We Like About State Farm

State Farm is the largest auto insurance company in the U.S., at least by market share. According to the National Association of Insurance Commissioners (NAIC), State Farm wrote more than $41.6 billion in auto premiums in 2021, accounting for around 15.9% of the total market.

The company also has an immersive online experience for policyholders. To date, State Farm has four mobile apps, including the State Farm App, Drive Safe & Save™, Steer Clear®, and the State Farm Pocket Estimator. Steer Clear is a safe driving program that can help drivers under the age of 25 save money. Younger drivers also have a chance to save with the company’s Good Student discount, which rewards students who maintain good grades in school.

In short, State Farm is likely to be one of the best options for many drivers, but especially for those with younger drivers on their policy.

State Farm Auto Insurance Cost

At $1,481 per year or $123 per month, for full coverage, the average premium estimate at State Farm is significantly cheaper than the national average of $1,730 per year.

The table below shows State Farm rate estimates for different driver profiles.

Driver Profile State Farm Annual Estimate
35-year-old with good credit and driving history $1,481
25-year-old with good credit and driving history $1,686
35-year-old with a recent car accident $1,882
35-year-old with poor credit $3,616
35-year-old with a recent DUI $2,180

Read our in-depth State Farm insurance review for a more detailed look at the company.

USAA: Best for Military Families

Availability: All 50 states, but limited to military members and their families

AM Best Rating: A++

2022 J.D. Power Claims Satisfaction Score: 890/1,000

USAA Pros and Cons

Rates consistently among the cheapest Only available to military members, veterans, and select family
Excellent claims service
Useful coverage and discounts for military families

What We Like About USAA

USAA has one of the industry’s best reputations, a large selection of both coverage options and discounts, and some of the lowest rate estimates of any provider in most places for many different driver profiles. In short, USAA has just about everything you’d want out of an auto insurer.

These factors make USAA a strong candidate for the best auto insurance company overall, but it comes with a major caveat – not everyone has access to the provider. USAA is only open to members of the U.S. armed forces, veterans, and select family members. While those who are eligible can get cheap coverage from a top-tier provider, others will need to look elsewhere.

USAA Auto Insurance Cost

At $1,054 per year or around $88 per month, USAA is much cheaper than the national average of $1,730 per year for full coverage. In fact, USAA has the lowest average rate estimate of any national provider by a wide margin – but only for those who are eligible.

USAA tends to offer some of the lowest rates in the industry for many different driver profiles. You’ll find a few estimated rates in the table below.

Driver Profile USAA Annual Estimate
35-year-old with good credit and driving history $1,054
25-year-old with good credit and driving history $1,292
35-year-old with a recent car accident $1,647
35-year-old with poor credit $1,807
35-year-old with a recent DUI $2,236

Learn more about USAA’s car insurance costs, coverage options, and ratings in our in-depth USAA insurance review.

GEICO: Best Discount Selection

Availability: All 50 states

AM Best Rating: A++

2022 J.D. Power Claims Satisfaction Score: 874/1,000

GEICO Pros and Cons

Large selection of discounts Mixed customer service reviews
Typically among the cheapest options Some complaints of slow claims processing
Highly-rated mobile app Doesn’t offer gap insurance

What We Like About GEICO

GEICO is an excellent choice for anyone on a tight budget. On top of consistently low premiums in most places, the company offers one of the largest and most diverse sets of savings opportunities in the industry – which is why it earned this year’s award for Best Discount Selection.

GEICO also has a robust selection of coverage options to help build as comprehensive a policy as almost any driver would need. The company makes it easy to manage that car insurance policy and file claims, thanks to its user-friendly website and highly-rated mobile app.

GEICO Auto Insurance Cost

The average rate estimate for a full-coverage policy at GEICO is $1,308 per year, or $109 per month. This is much cheaper than the national average estimate of $1,730 and among the lowest average estimates in our study.

You’ll find rate estimates from GEICO for different driver profiles in the table below.

Driver Profile GEICO Annual Estimate
35-year-old with good credit and driving history $1,308
25-year-old with good credit and driving history $1,420
35-year-old with a recent car accident $2,364
35-year-old with poor credit $2,077
35-year-old with a recent DUI $3,376

Learn more about GEICO’s costs, coverage, and customer ratings in our in-depth GEICO insurance review

Liberty Mutual: Best for New Drivers

Availability: All 50 states

AM Best Rating: A

2022 J.D. Power Claims Satisfaction Score: 870/1,000

Liberty Mutual Pros and Cons

Liberty Mutual Pros Liberty Mutual Cons
Good discounts for teen drivers Mixed reviews from customers
Special coverage for teachers Below-average claims satisfaction rating
Wide range of coverage options Higher premiums for many driver profiles

What We Like About Liberty Mutual

Liberty Mutual has two main strengths: the wealth of coverage options it offers and its specialized discounts for young drivers and educators.

Drivers looking for add-ons to cover many of the additional risks that come with owning and driving a car will find them at Liberty Mutual. The company offers options like better parts replacement and coverage for drivers when they take their cars to Mexico that are hard to find anywhere else.

With its good student discount and student away-at-school discount, young drivers may find Liberty Mutual among their most affordable providers. The company also offers discounts to faculty and alumni, along with special zero-dollar-deductible coverage for vehicles while they’re parked on campus.

Liberty Mutual Auto Insurance Cost

We weren’t able to obtain precise rate estimates for Liberty Mutual in our research. Our team did learn that in general, the company tends to be more expensive than average for many drivers. However, new drivers, students, teachers, and drivers in a few other categories may find some of their best rates at Liberty Mutual.

Learn more about the company in our in-depth Liberty Mutual auto insurance review.

Travelers: Best Coverage Choices

Availability: All 50 states

AM Best Rating: A++

2021 J.D. Power Claims Satisfaction Score: 854/1,000

Travelers Pros and Cons

Travelers Pros Travelers Cons
Robust selection of coverage options Weak claims satisfaction performance
Superior financial strength rating Not all coverage options available in all places
Fewer complaints than average Low customer satisfaction ratings

What We Like About Travelers

Travelers earned the award for Best Coverage Choices in our most recent auto insurance study due to the many options and add-ons the company offers. Drivers looking for highly-customizable policies will find Travelers to be an attractive option as a result.

And while customer satisfaction ratings are a little low even within the context of the industry, Travelers has fewer complaints than average according to the NAIC. Combined with the highest financial strength rating possible from AM Best, we feel Travelers is a reliable provider despite the mixed reviews we found online.

Travelers Auto Insurance Cost

Travelers has an average rate estimate of $1,669 per year or around $139 per month. This is more or less on par with the national average of $1,730 per year for a full-coverage policy.

In the table below, you’ll find premium estimates for drivers in different categories.

Driver Profile Travelers Annual Estimate
35-year-old with good credit and driving history $1,669
25-year-old with good credit and driving history $1,763
35-year-old with a recent car accident $2,193
35-year-old with poor credit $2,949
35-year-old with a recent DUI $2,332

Best Car Insurance Companies: Honorable Mentions

The five providers listed above earned the highest overall scores in our auto insurance study, making them our top options for this year. However, there are several other providers that narrowly missed the top five but are still worth considering.

Some are regional insurers that only serve limited areas but are otherwise terrific providers with low rates. Others may not be great general options but may offer low rates to specific categories of drivers.

Erie Insurance: Strong Regional Provider

Erie Insurance only serves 12 states, primarily in the Midwest and Southeastern regions of the U.S., but for drivers in those states, Erie is likely to be one of the best overall options. At $1,238 per year or $103 per month, Erie has a significantly cheaper average rate estimate than the national average of $1,730 for full coverage.

Erie Insurance also has an excellent reputation within the industry and among customers. The company had the third-highest score in the 2022 J.D. Power Claims Satisfaction Study with an 893 out of 1,000 – higher than any other provider in this article. Erie also has high customer satisfaction ratings in comparison to its competitors.

Progressive: Best for High-Risk Drivers

Progressive has lots of options for policyholders, including its highly-rated Snapshot telematics program that rewards good driving with lower rates. The company also features one of the largest selections of discounts among providers in our study.

Those discounts will come in handy, as Progressive tends to be one of the more expensive options for many drivers. However, the company was one of the first to offer affordable coverage to high-risk drivers and continues to do so, offering some of the best rates to drivers with a DUI and those in a few other risk categories.

Learn more about what the company offers and see rate estimates in our full-length Progressive car insurance review.

Nationwide: Good Usage-Based Insurance

While many insurers have raised premiums over the last year, Nationwide is one of the few that has lowered them. The company’s average rate estimate of $1,281 per year or around $107 per month for full coverage is roughly 20% lower than it was last year and 35% lower than the national average estimate of $1,730 per year.

People who don’t need to drive much will want to consider Nationwide among their top options. SmartMiles is one of the more highly-rated usage-based insurance programs in the industry. Remote workers, people who live in walkable areas, and others who don’t put many miles on their cars can probably save a significant chunk of money on getting charged by the mile compared to flat-rate insurance.

Read our Nationwide auto insurance review to see rate estimates and learn more about the provider.

Auto-Owners: Regional Provider With Good Coverage Options

Auto-Owners is another regional provider that serves 26 states, mainly in the Southeast and Midwestern part of the U.S. The company offers competitive rates for drivers in many different categories and has fewer complaints than average for the auto insurance industry.

The company is an attractive option for drivers looking for additional coverage. Auto-Owners offers a diverse set of add-ons that rival almost any national provider. One option we found especially enticing is the company’s Personal Automobile Plus Package, which bundles a number of small coverage items such as cell phone replacement, re-keying coverage, and identity theft protection into one add-on.

Car Insurance: What You Should Know

Understanding some of the basics of auto insurance can help you get a better idea of what you’re looking for and how much you should be paying for coverage. Armed with that knowledge and having guides like this at your fingertips, you’ll be in a good position to find the best car insurance provider for you.

What Is Car Insurance?

Car insurance is a type of protection you buy for your vehicle. In exchange for paying a premium – a fee that you pay monthly or upfront – an insurance company agrees to pay for damages included in your policy. In the most basic sense, these include injury and property-related expenses, but insurers also offer coverage options for other potential costs.

How Much Does Car Insurance Cost?

Our research found that the national average rate in the U.S. for full coverage insurance was $1,730 per year or around $144 per month for a full coverage policy. However, your rate is likely to be different. That’s because insurance rates are individualized for each driver.

Car Insurance Cost Factors

Six icons representing the most influential factors in the cost of car insurance premiums, including coverage choices, driving history, age, credit score, deductible, and location.

To determine individual rates, companies assess several variables to calculate your level of risk. Some of the most influential factors in the cost of your car insurance premium include:

  • Coverage options: If you’re looking for the cheapest rates, you’ll want to find a plan that only satisfies the state minimum coverage requirements. Other types of coverage, such as collision insurance, can insulate you from more risk but add to the cost of your premiums.
  • Coverage amounts: You can also choose the maximum amounts your insurance policy pays out in an accident. Higher coverage limits will result in higher premiums.
  • Deductible: In most cases, you’ll get to choose a deductible, or the amount you pay out of pocket for covered repairs. A lower deductible means less to pay when repairs come, but it also means a higher premium.
  • Driving record: Any recent moving violations or at-fault accidents will raise your auto insurance rates. Drivers with a clean driving record get the cheapest rates on car insurance.
  • Age: Seniors and younger drivers will pay more for their auto insurance policy than middle-aged drivers. But it’s teen drivers who pay the highest rates.
  • Credit history: A poor credit score will mean you have to pay more for your car insurance coverage than drivers with a good credit rating. However, state laws have made it illegal for insurance companies to factor credit scores into insurance rates in California, Hawaii, Massachusetts, Michigan, and New Jersey.
  • Location: The state where you live plays an important role in your car insurance premiums. But even within the same state, drivers in different zip codes will still pay different rates. For example, drivers in rural areas tend to pay less for coverage than those in cities.

Average Cost of Car Insurance in Each State

The state in which your car is registered has a major impact on the cost of your premiums. Differences in state regulations as well as the presence of different risk factors means that rates can vary substantially between them.

In the table below, you’ll find the average rates for minimum coverage and full-coverage policies for each state.

State Average Annual Minimum Liability Premium Estimate Average Annual Full Coverage Premium Estimate
Alabama $472 $1,479
Alaska $425 $1,400
Arizona $670 $1,754
Arkansas $428 $1,525
California $627 $2,089
Colorado $575 $1,860
Connecticut $1,503 $2,999
Delaware $941 $2,169
District of Columbia (Washington, D.C.) $644 $1,903
Florida $1,343 $2,947
Georgia $673 $1,617
Hawaii $625 $1,819
Idaho $328 $1,069
Illinois $527 $1,347
Indiana $428 $1,332
Iowa $283 $1,181
Kansas $500 $1,471
Kentucky $651 $1,779
Louisiana $932 $2,783
Maine $346 $964
Maryland $972 $1,818
Massachusetts $873 $2,647
Michigan $1,604 $3,785
Minnesota $605 $1,632
Mississippi $439 $1,434
Missouri $579 $1,734
Montana $456 $1,938
Nebraska $417 $1,622
Nevada $1,015 $2,149
New Hampshire $459 $1,349
New Jersey $1,032 $2,037
New Mexico $441 $1,449
New York $1,472 $2,783
North Carolina $503 $1,368
North Dakota $377 $1,366
Ohio $347 $1,027
Oklahoma $443 $1,726
Oregon $736 $1,334
Pennsylvania $463 $1,647
Rhode Island $804 $1,848
South Carolina $626 $1,665
South Dakota $290 $1,652
Tennessee $415 $1,281
Texas $642 $1,752
Utah $681 $1,507
Vermont $282 $1,056
Virginia $490 $1,142
Washington $578 $1,438
West Virginia $517 $1,537
Wisconsin $431 $1,219
Wyoming $307 $1,767

Car Insurance Discounts

Discounts are another factor in the cost of your auto insurance coverage. Some car insurance discounts can significantly reduce your premium.

The best car insurance companies offer a broad range of discounts to help make coverage more affordable for policyholders in a wide variety of situations. 

Here are some of the most common car insurance discounts you’ll find:

  • Multi-policy: Most car insurance providers offer other insurance products too. If you bundle your auto coverage with products like life, renters, or homeowners insurance from the same provider, you can usually get a discount.
  • Multi-car: Insurance companies usually offer lower rates if you insure more than one car under the same policy.
  • Safety features: Daytime running lights, passenger airbags, and other advanced safety features can often net you a discount from your insurance company.
  • Telematics: Most larger providers now offer some form of GPS-enabled monitored driving program. These programs track your driving habits through a mobile app and reward good habits with a discount.
  • Safe driver: Many insurance companies offer a break on your insurance premiums if you go for a specified amount of time without an accident.
  • Good driver: Depending on your insurer, you can sometimes get a discount for completing a state-approved defensive driving course.
  • Paid in full: With some companies, you can lower your insurance premiums by paying for your entire policy up front, rather than month-to-month.
  • Military: Several top insurers offer discounted rates for active service members. Many of these discounts extend to retired and reserved service members, as well as family members of military personnel. 
  • Accident-free: Many insurers reward you for going for an extended period of time without any accidents. The amount of time specified depends on the insurer.
  • Paperless: Insurers often offer a discount for switching from getting paper bills in the mail to getting them electronically.

What Kinds of Car Insurance Coverage Can You Get?

Auto insurers typically offer both standard coverages and at least a few add-ons and coverage options that allow you to build a policy that suits your needs and budget. While the standard options are almost entirely the same from provider to provider, each provider offers different optional coverages.

Standard Auto Insurance Coverage

Here’s what you’ll find at nearly every car insurance provider you come across:

  • Bodily injury liability coverage: Pays for medical bills and other related expenses to other drivers in an accident for which you are found at fault.
  • Property damage liability coverage: Covers damages to other drivers’ cars and other personal property resulting from an accident you caused. 
  • Uninsured motorist/underinsured motorist coverage: Covers expenses in the event the at-fault driver lacks the proper insurance to do so.
  • Collision coverage: Pays for damages to your own vehicle resulting from an accident for which you are found at fault. 
  • Comprehensive coverage: Covers damages to your vehicle that aren’t from an accident, such as theft, vandalism, or extreme weather.
  • Personal injury protection (PIP): Pays medical expenses for you and your passengers, regardless of who is found at fault for an accident. It also covers other related expenses like lost wages from missed work. This coverage is also sometimes referred to as “no-fault” insurance.
  • Medical payments (MedPay): Covers medical expenses similar to PIP but does not cover additional expenses such as missed wages.

Additional Coverage Options

Most auto insurers offer policy add-ons that can help cover some of the other costs and risks that come with owning and driving a car. Here are some of the most common additional coverage options you’ll find with insurance providers:

  • Guaranteed asset protection (GAP coverage): Covers some or all of the difference between the assessed value of your car and the amount you owe on the vehicle if it is totaled in an accident. Lenders and leaseholders sometimes require this coverage.
  • Emergency roadside assistance: Pays for some or all of emergency roadside assistance services like towing, lockouts, fuel and fluid delivery, and more. Some, but not all of these packages offer 24/7 support.
  • Rental car reimbursement: Covers a portion of the cost of a rental car if your car becomes inoperable or sits in the shop following a covered accident. 
  • Rideshare coverage:  Covers drivers in between jobs while working for a ridesharing service such as Uber or Lyft.
  • Trip interruption: Covers food, lodging, and other travel expenses if you can’t use your car as a result of a covered loss while you’re away from home.
  • Accident forgiveness: Keeps your rate from increasing following an at-fault accident. Some companies include this as a free perk.

Which Types of Insurance Are Required?

Only New Hampshire and Virginia do not require drivers to carry auto insurance. In every other state, you are legally required to have your vehicle insured.

Minimum coverage requirements vary between states. Most states require drivers to carry at least some form of property damage and bodily injury liability insurance. Others require additional coverage, such as uninsured motorist/underinsured motorist coverage, MedPay, or PIP.

Best Car Insurance: Conclusion

No single provider offers the best car insurance for every driver. The right option for you depends entirely on your insurance needs, driver profile, and budget. While some providers are clearly better than others, the one that’s best for your neighbor may not be the one that’s best for you.

We strongly recommend taking the time to shop for car insurance carefully and thoroughly. In addition to getting and comparing multiple car insurance quotes, be sure to evaluate the strengths and weaknesses of each company and how they relate to your personal preferences. Any or all of the providers mentioned in this article would make great options to start your search.

Best Car Insurance: FAQ

What is the number one car insurance company?

State Farm is the largest car insurance company in the country and the Best Overall provider according to our most recent auto insurance study.

What is the best car insurance coverage?

While a combination of liability, collision, and comprehensive coverage offers you the most protection, the best car insurance coverage is the set of options that best fits your own individual needs at a price you can afford.

How do car insurance companies pay out claims?

Most of the best car insurance companies offer several ways to pay out claims after a settlement is reached. You can often choose between an eCheck, direct bank deposit, or a physical check.

What types of car insurance are required?

Car insurance requirements vary by state. In most states, you’re required to carry some combination of property damage and bodily injury liability coverage. Some states require drivers to carry personal injury protection coverage. There are only two states—New Hampshire and Virginia—that do not require drivers to carry any form of car insurance.

How can I find the best prices on car insurance coverage?

To find the best price on car insurance, you first need to request quotes from several providers in your area. After comparing these quotes, look for any discounts that may apply. For example, many companies offer a multi-policy discount that lowers your premium if you bundle multiple types of insurance with your auto insurance policy.

Who is the number one auto insurer in the US?

State Farm is the number one auto insurer in the U.S. in terms of market share. The company wrote more than $41.6 billion in auto premiums in 2021, accounting for a 15.9% share of the total auto insurance market.

Who usually has the lowest car insurance?

USAA usually has the lowest car insurance rates among national providers, but it is only available to military members, veterans, and certain family members. State Farm and GEICO tend to have the lowest premiums among national providers available to everyone. Some regional insurers may have lower rates in the areas they serve.

How can I lower my car insurance fast?

There are a few ways to lower your car insurance rates fast. Some of those ways include increasing your deductible, lowering your coverage limits, eliminating unnecessary coverage, and completing an approved defensive driving course. You can also ask your insurance agent about other ways to bring your premiums down.

What is the cheapest month to buy car insurance?

While there is no clear consensus, some experts suggest that February and August are the cheapest months to buy car insurance. You can get free car insurance quotes at any time of year, so it’s worth checking on rate estimates regularly if you’re looking for the best car insurance deals.

Our Methodology

Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best car insurance providers.

  • Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team considers auto insurance rate estimates generated by Quadrant Information Services and discount opportunities when giving this score.
  • Coverage: Because each consumer has unique needs, it’s essential that a car insurance company offers an array of coverage options. We take into account types of insurance available, maximum coverage limits, and add-on policies.
  • Industry Standing: Our team considers Better Business Bureau (BBB) ratings, financial strength, and years in business when giving this score.
  • Availability: Auto insurers with greater state availability and few eligibility requirements are more likely to meet consumer needs.
  • Customer Service: Reputable car insurance providers operate with a certain degree of care for consumers. We consider complaints filed with the National Association of Insurance Commissioners (NAIC), J.D. Power claims servicing scores, and customer feedback.
  • Online Experience: Insurers with easy-to-use websites and highly rated mobile apps scored best in this category.

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