Best Auto Insurance Companies: Compare Coverage and Costs

The best car insurance companies offer competitive rates, comprehensive coverage options, and stellar customer service. When you need to file a claim, your car insurance company should be fast, responsive, and on your side—with technology that makes the process easy and convenient.

Thinking it’s time to switch from your current car insurance provider? We’ve rounded up the best auto insurance companies based on their prices, customer reviews, and range of coverage options.

Reviews of the top auto insurance companies

Below, we’ve provided a list of the best auto insurance companies. We made our decision based on various factors, including rates, coverage options, app usability, financial stability, and customer reviews.

• Best overall: Progressive
• Best for financial strength: GEICO
• Best vehicle repair benefits: Nationwide
• Best safe driving benefits: Allstate

Progressive

GEICO

Nationwide

Best Vehicle Repair Benefits

4.3 _/5

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Why it’s one of the best

Nationwide offers comprehensive coverage options. Its “On Your Side” review process helps policyholders get the best coverage for their needs. Nationwide also offers various discounts, enhancing its value proposition.

• Comprehensive coverage options
• “On Your Side” review process
• Various discounts available

• Higher-than-average premiums
• Limited availability in some areas

Types of coverage

• Vehicle
• Medical
• Liability

Allstate

Best Safe Driving Benefits

4.2 _/5

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Why it’s one of the best

Allstate is a well-established insurer known for its comprehensive coverage options and robust local agent network. It offers a variety of discounts and innovative features, such as the Drivewise program, which rewards safe driving.

Allstate’s strong financial stability and customer support make it a top contender in the auto insurance market.

• Comprehensive coverage options
• Robust local agent network
• Variety of discountsInnovative features, such as Drivewise

• Premiums can be higher than average
• Mixed customer satisfaction ratings

Types of coverage

• Vehicle
• Medical
• Liability

How much does auto insurance cost?

The average cost of car insurance in 2024 is $214 a month, or $2,568 a year, according to recent Insurify data. This is for a full-coverage policy for the typical driver. Liability-only insurance, which we don’t generally recommend, is much cheaper: $105 a month or $1,260 a year.

Car insurance costs vary depending on several factors, including:

• Your age
• Your gender (in some states)
• Where you live
• What car you drive (and how much you drive)
• Your driving record
• Your credit score (in some states)
• The coverages you choose

You can keep costs down by finding car insurance discounts (such as car and homeowners insurance bundles), participating in your insurer’s usage-based insurance program (also called telematics), and shopping around for a new car insurance policy once every year or two.

In 2023, rates shot up by an average of 24%, far outpacing inflation. Even as inflation cools, we should expect car insurance rates to keep climbing as insurance companies struggle to make up for their huge underwriting losses over the past few years.

Several factors contribute to the rise in auto insurance costs, such as:

• An increase in severe weather events
• Large increase in repair and replacement costs
• Large increases in medical costs
• An increase in distracted driving

How to choose the best auto insurance

Buying car insurance doesn’t need to be stressful. Let’s break it down to the core factors to consider to get the best auto insurance for you:

Understand the terminology

Try to grasp basic car insurance terms before paying for a product you don’t understand. Start by researching your state’s minimum insurance requirements, and then think about additional coverages you might want.

Coverage types to research include:

• Uninsured and underinsured motorist
• Medical payments and personal injury protection
• Collision and comprehensive

Compare apples to apples

If you’re trying to find the cheapest car insurance on the market, you’ll want to compare quotes from several companies. But for a fair comparison, make sure you’re looking at policies with the same:

• Coverage limits
• Deductibles
• Optional coverages
• Discounts applied

If you compare multiple insurers, but the coverage limits and types of coverage are different, you won’t get a real sense of which one is cheaper.

Look at customer reviews

Knowing whether other paying customers are happy with the auto insurance company is important. Consult mobile app reviews to get a feel for how user-friendly the app is, and read customer reviews online.

You can also research the insurance company’s NAIC rating; this helps you see if the insurer has average, above-average, or, ideally, below-average levels of customer complaints. J.D. Power’s annual U.S. Auto Claims Satisfaction Study is also a solid indicator of whether customers have positive or negative perceptions of an insurer.

How to get the best auto insurance rates

Our research found that the average annual car insurance premium in the United States is $2,329 for full coverage and $633 for minimum coverage. But actual rates can vary depending on your age, driving history, location, car type, and other factors.

Shopping around with different insurers is important to find the best car insurance rates. Here’s how:

Use online marketplaces

Marketplaces such as Otto and The Zebra can help you compare quotes from multiple insurers. These platforms allow you to input your information once and review personalized quotes from several companies, saving you time and effort.

Get quotes from at least 3 insurers

Price differences between companies can be substantial, so you should get quotes from at least three insurers when deciding which company is most affordable. 

To ensure you’re comparing apples to apples, get quotes with similar types of coverage and coverage levels.

Take advantage of online quotes

Auto insurance companies make it easy to get a quote online with no insurance agent required. Just input basic details about your driving history, age, marital status, where you live, and the car you drive to get a personalized quote.

Shop around

Around half (49%) of car insurance customers have shopped for a new policy within the past year, according to JD Power’s 2024 Insurance Shopping Study. The primary reasons for shopping around? Notable premium increases combined with low customer satisfaction. 

Because prices can vary so much by insurer, it’s wise to shop around for coverage even if you’re happy with your insurer. 

If you bundle your auto insurance—say with homeowners, renters, or life insurance—and you get a bundle discount, you could lose your discount. So double-check with your current insurance provider before you make changes.

Erin Kinkade

CFP®

If you compare car insurance quotes every few years or ask for a discount from your current insurer, you may be surprised how much you can save on coverage. 

What to look for in the top auto insurance companies

When searching for the best auto insurance companies, it’s essential to consider factors beyond just the premiums. Cost is important, but you also want to ensure the company’s finances are stable and that its reputation is solid. Here’s what to look for: 

Check financial stability ratings

One indicator of an insurance company’s financial health is its A.M. Best rating. A.M. Best is a global credit rating agency that assesses the creditworthiness and financial strength of insurance companies. A higher rating, such as A++ or A+, indicates that the insurer can meet its ongoing insurance obligations.

Consider customer satisfaction scores

JD Power is a well-known market research company that conducts annual studies on customer satisfaction in various industries, including auto insurance. The JD Power U.S. Auto Insurance Study measures customer satisfaction based on interaction, policy offerings, price, billing process, and claims experience. A higher JD Power score indicates that the insurer has a better reputation with its customers.

Look for reputable third-party rankings

In addition to A.M. Best and JD Power, the Better Business Bureau (BBB), Trustpilot, and S&P Global Ratings can provide valuable insights into an insurer’s reputation and performance. Our own rankings take these scores into account, along with other factors that can affect your experience with an insurer, such as coverage options, discounts, and customer service.

Check availability in your state

Not all insurance companies operate in every state, so verify that the insurer you’re considering offers coverage where you live. You can often find this information on the company’s website or by contacting customer service.

Look for discounts

Many insurance companies offer discounts that can help you save money on your premiums. Common car insurance discounts include:

• Multi-policy discounts for bundling insurance
• Safe driver discounts for maintaining a clean driving record
• Vehicle safety discounts for cars with anti-theft devices or other safety features
• Low mileage discounts for driving fewer miles annually

What type of policy do you need?

Choosing which car insurance company to purchase a policy from isn’t your only important decision. You have many types of auto insurance policies to choose from, and you want to ensure you get the right coverage to meet your needs.

Here’s how to determine what type of car insurance policy you need.

Understand your state’s requirements

Start by looking at your state’s minimum car insurance requirements. Most states require you to buy a minimum amount of liability coverage, which will pay out if you cause an accident and hurt other people or damage someone else’s property. 

Your state may also require additional coverages to protect you and your passengers if you’re injured in a collision or to protect you if you get into a crash with an uninsured or underinsured motorist. 

Auto insurers help you understand these requirements when you ask for a quote.

Consider supplemental coverage

In addition to state-mandated coverage, it’s wise to consider supplemental coverage options that provide more comprehensive protection. These policies can help you avoid serious losses if something goes wrong.

Common types of car insurance coverage you may want—or need—include:

• Bodily injury liability pays for the repair or replacement of your own car if you cause a crash.
• Property damage liability pays out if you get into an accident and damage someone’s property.
• Collision insurance pays for the repair or replacement of your own car if you cause a crash.
• Comprehensive insurance pays to repair or replace your car if it’s stolen or damaged by something other than a collision—a natural disaster, falling object, or vandalism, for instance.
• GAP insurance: If you have a car loan and your vehicle is totaled, GAP (Guaranteed Asset Protection) insurance covers the difference between the insurance payout and the remaining balance on your loan.
• Rental car coverage pays for a rental car while your vehicle is being repaired or replaced after an accident.
• Personal injury protection (PIP) covers your medical bills and a portion of lost wages if you’re injured in an accident, regardless of who is at fault.
• Medical payments coverage helps pay for medical expenses incurred as a result of an accident.
• Uninsured or underinsured motorist coverage pays out to you if you incur losses caused by someone with no insurance or too little coverage.

Assess your individual needs

Whether these policies are necessary for you will depend first on your state’s requirements, but your own situation can also affect your coverage needs. Here are three examples: 

• John has an old car worth $4,000. He doesn’t drive much and could easily replace his car if needed, so comprehensive insurance may not be necessary for him.
• Sarah just bought a new car for $40,000. She commutes to work every day and relies on her car. Sarah would benefit from comprehensive and collision coverage, as well as GAP coverage, to protect her if something happens to her vehicle.
• The Johnsons have a family car worth $15,000. They have two children and need their car for daily activities. They should consider comprehensive and collision coverage to ensure they can replace their car if an accident occurs because they may not have the funds to buy a new one out of pocket. They might also consider rental car coverage so insurance would pay for a vehicle if theirs were being repaired.

Our expert’s advice on choosing appropriate liability limits

Erin Kinkade

CFP®

Choosing a policy with minimal coverage because it’s the lowest premium could result in a large financial burden if you’re liable for an accident damaging property—someone else’s or your own—or injuring another individual. Large out-of-pocket deductibles likely apply, and you might need to pay out of pocket for another’s vehicle or your own. I only recommend choosing the lowest liability limits required for a vehicle you don’t drive, but that requires minimal insurance—for example, a collectible or a vehicle that is old, unreliable, rarely driven, and has a low replacement cost. One other scenario would be if you can absorb all costs associated with being underinsured, which is rare and typically not recommended.

We don’t recommend skimping on coverage and risking major out-of-pocket losses, so be sure to research all your options and get the right insurance from the right company at the right price. If you need to keep costs low, explore this list of the cheapest car insurance.

Factors that affect your auto insurance premiums

These factors will influence your car insurance rates to some extent. 

Age 

Age affects your car insurance costs in a big way. Younger and less experienced drivers tend to pay higher rates because of their higher risk of accidents. 

For example, the Insurance Institute for Highway Safety (IIHS) found that drivers between the ages of 16 and 19 are almost three times more likely to be in a fatal crash than drivers who are at least 20. This risk is reflected in insurance rates, with some studies showing that teenagers can pay up to four times more than adults for coverage.

As drivers age and gain experience, their rates often decrease. The sweet spot for lower premiums is usually between ages 30 and 65. However, rates may start to increase again for drivers over 65 due to increased accident risk associated with age-related factors such as slower reflexes and vision problems.

Read More

Best car insurance companies for teens

Credit score

Around 95% of auto insurance companies use your credit score to calculate your premium. 

Your credit score can have a huge impact: The Consumer Federation of America found that drivers with poor credit pay an average of 115% more for auto insurance than those with excellent credit—even if both have perfect driving records. 

Location

Population density, crime rates, and the frequency of accidents in your area all contribute to your premium calculation. Urban areas can have higher rates due to more traffic on the road; rural areas often enjoy lower premiums.

For example, a study by Insurify found that Michigan had the highest average annual car insurance premium while New Hampshire had the lowest. 

Vehicle 

Your vehicle’s make, model, year, and other characteristics also influence your insurance rates. Factors considered include:

• Safety ratings: Vehicles with higher safety ratings often qualify for lower premiums.
• Cost of repairs: Electric and luxury vehicles with expensive parts often cost more to insure.
• Likelihood of theft: Cars thieves tend to target may have higher premiums.

According to the Highway Loss Data Institute, the Dodge Charger HEMI and the Dodge Challenger SRT Hellcat have some of the highest insurance losses. The Subaru Outback 4WD with EyeSight and the Tesla Model S 4dr electric 4WD have some of the lowest.

Number of vehicles 

The number of vehicles you insure can affect your overall premium. While insuring multiple vehicles can increase your total insurance cost, many insurers offer multi-car discounts. Depending on the company, these discounts can save you up to 25% on premiums.

However, each additional vehicle also represents an increase in potential risk for the insurer. The more cars you have, the higher the chance that one of them might be involved in an accident or require a claim.

Gender

Gender can also influence auto insurance rates, although its impact has decreased recently. Historically, men have paid higher premiums than women, particularly young men. This is based on statistical data showing that men (especially those under 25) have a higher chance of participating in risky driving scenarios that result in more serious accidents.

Married versus unmarried

Marital status can also affect your auto insurance rates. Married individuals often pay less for auto insurance than their single counterparts because statistical data shows that married people tend to file fewer claims and to be stable and responsible drivers.

Retirement

Retired seniors may qualify for a low-mileage discount if they’re not driving as much as before. Because seniors are known for being low-risk, you may also see your auto insurance premiums decrease. 

Drivers with disabilities 

It is illegal for companies to charge you more if you have a physical or mental disability, thanks to the Americans with Disabilities Act. But if you modify your vehicle for a disability, you must buy additional custom equipment coverage for equipment worth over $1,000. Most companies will allow you to increase your coverage by only $4,000 to $5,000, which could be problematic if you have more expensive modifications.

If you’ve had accidents in the past

Past accidents can have a major impact on your insurance premiums, but the extent varies based on the number and severity of incidents, your age, driving experience, and credit score.

A single car accident claim results in an average premium increase of 41%. However, the increase can be higher or lower depending on the state where you live. 

Severity matters, too; an at-fault accident with over $2,000 in damage can increase your premium by an average of 53%.

Moving violations also affect rates: 

• A speeding ticket: average increase of 16% to 52% 
• A DUI can spike premiums by 99% to 171%

Most accidents and violations affect your rates for three to five years. After that, your premiums may decrease if you maintain a clean driving record.

What if you have other vehicles to insure?

If you own multiple vehicles, you may be able to bundle policies for better rates. Here are common additional vehicles and their insurance considerations:

• Boat: This covers damage to your boat and liability for accidents. GEICO, Allstate, and Nationwide offer boat insurance.
• ATV: Protects against damage and liability for off-road vehicles. GEICO, Allstate, and Nationwide provide ATV coverage.
• RV: Combines elements of auto and home insurance for recreational vehicles. GEICO, Allstate, Nationwide, Progressive, and Farmers offer RV insurance.
• Motorcycle: Covers accidents, theft, and liability for motorcycles. GEICO, Allstate, Nationwide, and Progressive offer motorcycle insurance.
• Scooter: Provides similar coverage to motorcycle insurance but often at lower rates. Progressive offers scooter insurance.

Always compare quotes from multiple insurers to find the best combination of coverage and price for your specific vehicle mix.

How to apply for auto insurance

You can always work with an agent in person if you prefer, but getting coverage online takes only a few minutes. Here’s how:

1. Select the best auto insurance company for your needs. As discussed above, you should always shop around and get quotes from multiple companies before making a decision.
2. Fill out the online application. You’ll need to share personal information, including your birth date and address, as well as information about your driving history and vehicle.
3. Customize the coverages. Determine which coverages you want. (The online platform should default to what’s required by law in your state based on the address you provide.) This also includes setting coverage limits and selecting deductibles.
4. Start the policy. Once you’re sure the policy is what you want, move forward with purchasing by paying the premium online. You might be able to download an app to access your digital insurance cards, but you can also have the company mail your insurance cards to your home.

FAQ 

Which insurance company has the best customer satisfaction?

The insurance company with the best customer satisfaction often varies by region and year, but Amica Mutual consistently ranks high in customer satisfaction surveys. It was the highest-rated auto insurer for 2023.

According to J.D. Power’s annual auto insurance study, Amica earns top marks for customer service, claims handling, and overall satisfaction. 

What insurance company is best for cars?

The best car insurance company depends on individual needs and preferences. While we think all the companies mentioned above are top contenders, many consider GEICO one of the best due to its competitive rates, extensive discount options, and user-friendly online platform. 

For those seeking exceptional customer service, Amica is a top choice. The best insurance company for cars will depend on your coverage needs, budget, and personal preferences.

What is the average car insurance cost?

The average car insurance cost in the United States varies based on several factors, including the driver’s age, location, driving history, and the type of car insured. 

As of 2024, the national average annual premium for full-coverage car insurance is approximately $2,568, while the average annual premium for a liability-only policy is around $1,260. 

These figures can vary depending on individual circumstances and the specific insurance provider.

How we chose the best car insurance companies

Since 2019, LendEDU has evaluated insurance companies to help readers find the best auto insurance. Our latest analysis reviewed 168 data points from 14 companies, with 12 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These data points are organized into broader categories, which our editorial team weights and scores based on their relative importance to readers. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Higher star ratings are ultimately awarded to companies that offer excellent, customizable coverage. This includes offering online eligibility checks, cost transparency, comprehensive coverage, and unique benefits that protect drivers and their vehicles.

Recap of the best car insurance companies