The 10 Best Car Insurance Companies (2023)
State Farm is the best car insurance company overall, followed by Erie and Farm Bureau.
Best car insurance companies in 2023
Company |
Rating
| Best for |
|---|---|---|
| Best overall | |
| Liability only | |
| Accident history | |
| Family with teen | |
| New drivers |
We ranked the best insurance companies based on cost and customer service.
- The companies with the best ratings have the best value for your money. Ratings consider the quality of a company's service and its affordability.
- We collected millions of quotes across the country for different drivers. We also included customer surveys, official complaints from the National Association of Insurance Commissioners (NAIC) and feedback from research companies like J.D. Power and A.M. Best's financial strength rating.
Best car insurance overall: State Farm
State Farm has the best full-coverage car insurance rates for most drivers. And it's one of the most reliable companies for customer service and claims.
-
Editor rating
- Full coverage: $99/mo
- Claim satisfaction: 8.9/10
Pros and cons
With State Farm, drivers don't have to pay more for excellent customer service. It's 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.
After an accident, State Farm's smooth claims process can help you get back on the road quickly, with few extra costs.
State Farm consistently gets good 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 often have affordable rates for full-coverage insurance. Regional companies also tend to offer a great customer service experience due to more personalized 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
Erie has the best car insurance rates for minimum liability coverage if you live in the Southeast, Midwest or East Coast.
-
Editor rating
- Liability-only: $39/mo
- Claim satisfaction: 9/10
Pros and cons
Minimum-coverage car insurance policies from Erie cost around $39 per month, which is 33% cheaper than the national average.
Average monthly 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. Erie’s rates average $101 per month, which is 32% cheaper than the national average.
Erie has excellent customer service after an accident or when changing your policy. It earned the second-highest score on J.D. Power's claims satisfaction survey.
Unfortunately, Erie's insurance policies are only available in 12 states and Washington, D.C. That means most drivers can't buy a policy from Erie. Drivers who can't get car insurance from Erie should consider State Farm.
Drivers looking for cheap car insurance should also consider Auto-Owners, State Farm and Farm Bureau. They have cheap rates 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 for support: Amica
Amica is the best-rated widely available car insurance company for customer service.
-
Editor rating
- Full coverage: $208/mo
- Claim satisfaction: 9/10
Pros and cons
Great customer support can be just as important as the cheapest rates. After a car crash, an insurance company with an easy claims process helps you get back to normal quickly.
Amica's customers are generally happy with its claims process. Amica earned one of the highest scores on J.D. Power's claims satisfaction survey. And it gets a third fewer complaints than similar companies of its size, according to the NAIC.
But Amica's great service comes at a price. 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 generally 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 |
Editor's rating
|
NAIC (lower is better)
|
|---|---|---|
| Auto-Owners | 0.47 | |
| Shelter | 0.39 | |
| IMT Insurance | 0.00 | |
| NJM Insurance | 0.06 | |
| Frankenmuth | 0.57 |
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 of similar companies.
Best for families with teen drivers: Auto-Owners
Auto-Owners has the best car insurance rates for parents adding a teen driver to their policy.
-
Editor rating
- Family rate: $153/mo
- Claim satisfaction: 8.8/10
Pros and cons
Since young drivers are more likely to get in an accident, teen drivers generally pay higher car insurance rates.
- Parents who add a teenager to their policy can find the cheapest quotes at Auto-Owners. Full coverage 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.
- Young drivers who buy a separate policy can also get affordable rates from Auto-Owners. Minimum coverage 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 | Liability-only | 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. For example, 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 might need extra help filing a claim after an accident. The company gets fewer complaints than competitors of a similar size, according to the NAIC.
The main drawback to Auto-Owners is that it's not available in every state. You'll also need to speak to an agent to get a quote.
Erie, Farm Bureau and State Farm also have cheap rates for parents who 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 find the best value on car insurance policies.
Best car insurance for new and young drivers: Allstate
Allstate has the best minimum liability car insurance quotes for new drivers.
-
Editor rating
- Liability-only: $100/mo
- Claim satisfaction: 8.7/10
Pros and cons
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 less than 25 years old 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 has many discounts. For example, you can save by making automatic payments or signing up for a program to track your driving habits.
However, new drivers who get in an accident may not have the best experience with Allstate. Although Allstate gets fewer 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
Farm Bureau raises full-coverage rates by only 32% if you cause an accident. Most companies increase your rates by 49% after a crash.
-
Editor rating
- Full coverage: $134/mo
- Claim satisfaction: N/A
Pros and cons
If you've caused a car crash recently, insurance companies will probably charge you higher rates. However, how much your rates go up varies by company.
On average, rates increase 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.
Full-coverage car insurance after an accident
Company | Monthly rate |
% change
|
|---|---|---|
| State Farm | $125 | 26% |
| Farm Bureau | $177 | 32% |
| Allstate | $305 | 56% |
| Geico | $238 | 71% |
Farm Bureau has affordable quotes in most states. However, you need to join your local Farm Bureau group to buy a policy. Farm Bureau is similar to AAA, where each state has its own chapter. Membership is open to anyone, not just farmers. But you'll typically have to pay a membership fee of around $50 per year, depending on your state.
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 average rates by 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 usage-based car insurance: Nationwide
Nationwide has the best telematics car insurance for good drivers or people who don't drive much.
-
Editor rating
- Full coverage: $164/mo
- Claim satisfaction: 8.8/10
Pros and cons
Drivers get a 10% discount when they sign up for the Nationwide SmartRide program. You'll set up an app or device that automatically monitors your driving habits for four to six months. Then you can earn a permanent discount of up to 40%.
One major benefit of SmartRide is that your rates won't go up if you get a bad driving score, unlike some other usage-based programs.
That makes SmartRide ideal not just for safe drivers, but also for people who want to improve their driving abilities.
People who 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. This can save you money if you don't drive much.
However, Nationwide's rates can be expensive for drivers who 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
Travelers offers lots of extra coverage add-ons that you won't find with every company. This includes gap insurance, rideshare coverage and new car replacement.
-
Editor rating
- Full coverage: $146/mo
- Claim satisfaction: 8.7/10
Pros and cons
Travelers is a good company for drivers who need more coverage than you'll get with a basic car insurance policy.
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 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 company for drivers with bad credit: Geico
Geico has the best car insurance quotes for drivers with poor credit scores, at $212 per month for full coverage.
-
Editor rating
- Poor credit: $212/mo
- Claim satisfaction: 8.8/10
Pros and cons
Your credit score can have a major impact on the price of your auto insurance in most states. Drivers with poor credit pay on average 72% more for car insurance than people with good credit.
Geico charges drivers with a poor credit score 51% higher car insurance rates.
Full-coverage rates with poor credit
Company | Monthly rate |
% change
|
|---|---|---|
| Geico | $212 | 51% |
| Erie | $232 | 130% |
| Nationwide | $236 | 44% |
| State Farm | $241 | 143% |
| National average | $254 | 72% |
Geico has affordable rates for drivers with poor credit. But it might not be the cheapest company if you have average or good credit. Companies like State Farm, Erie and Auto-Owners tend to have cheaper rates for drivers with good credit. They also 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 car insurance for military members and veterans: USAA
USAA has some of the best rates and quality support if you're a military member or veteran.
-
Editor rating
- Full coverage: $91/mo
- Claim satisfaction: 9.1/10
Pros and cons
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 save 15% on comprehensive insurance. You can also save 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
USAA and State Farm are the best-rated major companies in most states. Farm Bureau and Erie are the best local companies in several states.
The best car insurance for you depends 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 | Top pick | 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. Dozens of companies offer affordable rates and great customer support.
How to find the best car insurance for you
The best car insurance companies have the best coverage and support you can afford.
- Combines reliable customer service and affordable prices, making it the best value.
- Has all the coverage you 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. Don't limit yourself to the big names 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 companies 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 by shopping around.
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.
Each car insurance company also calculates rates differently based on the type of car you drive, where you live, your credit history and other factors. That's why you should compare quotes from multiple companies, especially if your driving record has 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 has the best quotes 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.
- Defensive driving
- Accident-free
- Low mileage
- Good student
- Student away
- Military
- Professional organization
- Senior
- Multi-policy bundle
- Multi-vehicle
- Early signing
- Paid-in-full
- E-bill or paperless
- Anti-theft
- Anti-lock brakes
- New car
How to find an insurance company with the best coverage
All the best auto insurance companies offer the same standard coverages. Some are required by your state. Others are optional and provide extra protection on the road.
Extra coverage you can pay to add
Beyond these basic coverages, insurance companies may offer add-ons. 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 | Your deductible gradually declines for each year you're accident-free. |
| Mechanical breakdown | Covers the cost of repairing wear and tear to your car as a substitute for a car warranty. |
| Rideshare insurance | Covers you during the rideshare waiting period when Uber and Lyft coverage doesn't apply. |
How to find the best car insurance for customer support
Car insurance companies with the best customer service handle your car insurance claim quickly and fairly. This helps fix your car as fast as possible.
To get a feel for the quality of a company's customer service:
- Browse our editor ratings and reviews.
- Look at J.D. Power customer and claims satisfaction survey ratings.
- Compare customer complaints from the National Association of Insurance Commissioners (NAIC).
Start your research with our editor recommendations. Our five-star ratings are a snapshot of a company's overall quality. This includes customer service, value and coverage.
The J.D. Power U.S. Auto Claims Satisfaction Survey measure the quality of the claims process, when customer support matters the most. It combines customer feedback on 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). The NAIC measures service using a customer Complaint Index. It tells you if a company receives more complaints than average. You can also break it down by type of insurance and complaint.
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 claim.
The best way to quickly assess an insurance company's financial stability is through a credit reporting agency like A.M. Best. It calculates the ability of insurance companies to pay their claims. Then they're graded on a 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 has recently had its rating downgraded, might have financial problems.
Frequently asked questions
What’s the best car insurance company?
State Farm is the best car insurance company overall for its affordable rates, excellent service and helpful coverage options.
Who has the best car insurance rates?
State Farm is one of the best car insurance companies 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 how much and what kind of coverage you need. Then get quotes from several companies available near you for the same level of coverage. Compare each company's quotes, customer support ratings, coverage options and discounts.
Who has the best auto insurance near me?
USAA and State Farm have the cheapest rates and best support among the top insurance companies. But the best cheap car insurance in your state might be a smaller local company like Erie and Farm Bureau. That's why it pays to compare quotes from several large and small companies near you.
Which insurance company has the best 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 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 A.M. 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 all available ZIP codes in 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.
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 and underinsured motorist property damage coverage.
Rates for new drivers are based on a minimum coverage policy for a driver who lives 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.