Best Car Insurance Companies (2023)

Looking for the best car insurance is like shooting at a moving target. With so many factors to consider, from rates to discounts to claim experience, the search can be overwhelming. When it comes to insuring your Buick, the best car insurance company for Buicks offers unparalleled coverage and customer service.

We’ve considered a slew of factors to help you determine which companies are going to be among the best car insurance companies available for you.

But don’t forget when searching for the perfect car insurance company, having knowledge about average car insurance rates for your vehicle can also help you compare various options. For example, if you have a Fiat, you can enhance your decision-making skills by looking into the best Fiat car insurance quotes.

 

Why shop around for car insurance?

Some car insurance customers shop around constantly, and there are savings to be found. Other customers prefer to renew year over year to earn loyalty discounts without ever pricing the competition. But car insurance is about more than rates. A Forbes Advisor Survey polled 2,000 drivers in March 2022, and they found that a majority of auto customers they’ll shop around for three reasons:

• I’ve had a poor claim experience
• I’m searching for a better rate
• I need coverage that my current company doesn’t offer

Drivers from 58-76 shopped most often due to price, whereas youthful drivers aged 18-25 tended to shop around due to bad claim experiences or coverage types. 

Which car insurance company is the best?

There are a number of factors at play here, so we’ve scouted large auto insurance companies based on average rates for various drivers, coverage offerings, complaint levels, satisfaction with collision claims from auto body repair professionals, and user-friendliness of insurance company websites.

How do I find the best rate on car insurance?

Rates vary from company to company, state to state, and even region to region. A number of factors affect your car insurance rates, including:

• Your driving record
• Your age and driving history
• Where you live
• Car insurance coverage selections
• Deductible amount
• Vehicle year, make, and model
• Car insurance continuity history
• Credit-based insurance score (not applicable for residents of CA, HI, MA, or MI)

How much should I expect to pay for car insurance?

Nobody likes to overpay for car insurance. Before you ask for a quote, take a look at these average rates. Price is often the most important factor when swapping companies. Below you’ll find the national average annual and monthly costs by company:

Read More: What happens if I disagree with Nationwide’s decision on my car insurance claim?

Insurance is priced based on risk, so your record plays a primary role in determining your rate. If you keep your record spotless, you’ll unlock discounts at each company. For those with claims, it’s worth noting that not all incidents are created equal. Tickets, lapses, property damage claims, injuries, and DUI’s are each treated separately. Here’s what you can expect on average based on your record:

Read more: Does my car insurance cover damage caused by a hailstorm or heavy rain?

Find the best car insurance company for drivers with a bad driving record.

How do I find the best deal on car insurance?

First, determine how much car insurance you need. Each company will offer a differing price for the same coverage selections, so it’s worth arming yourself with as much information as you can. Different states offer different rates. Below are pointers no matter where you live:

• Gather and compare car insurance quotes. Whether you’re looking to change companies or check around to ensure that you’ve got the best rate on the market, quotes are your friend. Get several quotes and compare them line by line to see who’s willing to give you the best value. Quotes are free and can be done online or by working with local or mobile agents. Independent agents can provide quotes from dozens of companies in a single call.
• Shop for car insurance discounts. Every company offers similar discounts, but they rarely call them by the same name. Ask an agent or read up on the company’s respective website for all applicable discounts you may qualify for. Here are six great ways to knock down your rate:
  1. “Bundle” your policies with the same company
  2. Insure multiple vehicles with the same company
  3. Maintain a clean record to qualify for good driver discounts
  4. Keep those grades high (including grad students) and land good student discounts
  5. Take a defensive driving class
  6. Pay your car insurance by the full term rather than paying month-by-month

Read more: Can I bundle my Auto-Owners car insurance with other policies?

• Opt for a higher deductible. A car insurance deductible is the amount of a collision or comprehensive claim that you’re responsible for paying. Lienholders may dictate maximum deductibles, so consult your lender before making a final selection. Raising your deductible means you’re willing to pay a little in the amount of a claim, and it’ll save you on your rate.

  • Example: You cause an accident, and it will cost $2,000 to repair the damages. If your deductible is $500, your insurance will send you a check for $1,500 to cover the damages. It’s the total cost of repairs minus $500, which was deducted from the insurer’s responsibility. The same accident with a $2,000 deductible would mean that you’re responsible to cover all repairs and to compensate you for that risk, you’d see a lower rate. It’s all about risk. If you want to save, raise your deductible, but think about saving money in the event of an accident too.

• Ask about pay-per-mile car insurance. You may own a vehicle and still choose to use public transportation to avoid the time, cost, and headache of finding parking. If so, you likely drive far less than average, and there are savings to be had. Ask about pay-per-mile auto insurance.
  These policies can charge based on the month or the mile, and if you’re not out on the road, it could be a great option for you. They operate as a base-plus, so one might see a $40 monthly charge plus a 5-cent per mile rate. If you logged 500 miles on the odometer in a month, at that rate, you’d get a bill for $65. ($40 + 500 x $.05)
• Ask about usage-based car insurance. At first glance, usage-based insurance sounds a whole lot like pay-per-mile, but they couldn’t be more different. Where pay-per-mile insurance charges are based on how much you drive, usage-based insurance is charged based on how you drive.
  Usage-based insurance tracks your driving habits and assesses them based on the risk involved. Speeding, braking too hard, accelerating too quickly, and turning too sharply are risky actions, and they’re factored in accordingly. With a usage-based policy, your insurance company monitors these behaviors either via a smartphone app or in-vehicle device, and you’re assigned a driving score.
  Enrolling in usage-based insurance often comes with an initial discount which adjusts over time based on driving habits and assigned driving scores. These scores can be valuable for drivers in training or those looking to either improve or be rewarded for good driving behavior, but not all drivers will find savings through such methods.

What types of car insurance coverage do I have to carry?

Laws vary, and they’re always changing, but certain rules generally apply across the board. Here’s what types of car insurance coverage you generally have to carry:

Read more: Does my car insurance cover damage caused by a hit-and-run driver if I cannot identify them?

Understanding Your Coverage

According to a 2022 Forbes Advisor Survey, most drivers don’t understand the coverage they already have. Most drivers were unable to identify which types of insurance applied to the most common of situations. Not only that, but many drivers believe they carry coverage that does not exist.

• 50% said Accidental Death & Dismemberment (ADD) was included in their lineup. However, ADD is not available for car insurance.
• 49% believe they carry “extended crash protection,” though such coverage is not on the market.
• 41% believe their auto insurance covers “vehicle emissions” when they do not.

Liability coverage is most commonly used, but even it was misunderstood.

Other Things to Consider

Sometimes having the best car insurance means acquiring the cheapest monthly rate, but others may opt to pay more now if it saves money later. That can mean lowering your deductibles and checking boxes on every option, but it depends. Every car insurance customer has different needs. Here are a few things worth noting:

• Accident forgiveness. Nobody’s perfect, including the top auto insurance companies. Complaints reveal weaknesses in each company that must be rectified, and complaints are taken seriously. The National Association of Insurance Commissioners tracks data that reflect the number of complaints weighed against the company’s size. Everybody sees their rate go up after an accident, as it’s a sign of increased risk, but if you have “accident forgiveness” included on your policy, you may be able to cause an accident without seeing your rate change at all if it’s your very first accident. Some insurers take this a step further, forgiving moving violations too.
• Gap insurance. Vehicles are holding their value at record levels, but that still may not keep up with what’s owed on a vehicle. If you have a lien, it’s worth inquiring about Gap insurance, which will step in and pay the difference if your vehicle is totaled, but you aren’t paid enough to cover the loan.
• New car replacement. New cars get totaled too and if you find yourself in such an unfortunate situation, new car replacement coverage will pay you to replace your new vehicle with a similar new vehicle rather than having you settle for a depreciated value. Different insurance companies use different definitions of the word “new” so double-check the details before you sign up.
• Pay-per-mile insurance. Drive less? Pay less. Pay-per-mile Insurance clocks you in at a stable monthly rate, plus a surcharge per mile driven.
• SR-22 insurance. Too many moving violations, DUIs, or driving without insurance cause drivers to need this particular insurance. It’s high-risk insurance and many states require your car insurance company to fill out an SR-22 form to ensure you’re carrying the required coverage. Penalties for not doing so can be steep. Not all insurers cover drivers requiring SR-22, so you may need to locate a different provider when the requirement hits.
• Usage-based insurance. If you’re safe and you know it, usage-based insurance may be for you. With usage-based insurance (UBI) your insurance company accesses driving habits via a smartphone app or in-vehicle device. If you avoid heavy speeding, harsh cornering, hard braking, and other high-risk habits, savings could be headed your way. But be advised, UBI is not for the faint of habit. According to TransUnion’s 2022 Insurance Trends and Outlook Report, 30% of drivers using UBI saw no change in their premiums, though 48% did see an overall reduction.
• Vanishing deductibles. This option is not available with all car insurance companies but some offer the ability to see your deductible reduce by $100 per claim-free year until it disappears entirely. Ask your insurer for more information.

Best Auto Insurance Company by State

Competition is always at play, and the same company is never the most affordable across the board or across the nation. Each state has its own laws and regulations, and certain companies are better at seizing those trends. Below, you’ll find the cheapest company for good drivers per state:

Let’s explore each company in more detail below.

Geico
Geico sells auto insurance for private passenger vehicles, motorcycles, and classic cars as well as ATVs, RVs, and boats. Emergency roadside service is an available option on most policies, as are rental reimbursement and mechanical breakdown insurance. With Geico if you have a clean driving record you can pay for accident forgiveness, which will waive a premium increase for an eligible driver’s first at-fault accident. Geico also sells Mexico auto insurance for your traveling needs. Here’s a list of discounts offered by Geico:

• Active military
• Vehicle equipment
• Driving history
• Driving course
• Drivers education
• Good student
• Federal employee
• Membership & employee
• Multi-vehicle
• Multi-policy

Learn more in our Geico car insurance review.

Nationwide
Nationwide sells insurance for private passenger vehicles, classic cars, RVs, motorcycles, ATVs, scooters, golf carts, boats, and snowmobiles. Nationwide’s optional vanishing deductible can save eligible drivers up to $500 in the event of a collision claim. They also offer optional accident forgiveness to avoid a rate increase due to a first accident. Nationwide offers SmartMiles, a pay-per-mile plan, as well as Nationwide SmartRide, a usage-based policy. Using SmartRide drivers can save a maximum of 40% through good driving habits. Discounts from Nationwide include:

• Multi-policy
• Accident-free and safe driver
• Defensive driving
• Good student
• Anti-theft
• Easy pay sign-up
• Paperless

Learn more in our Nationwide car insurance review.

Travelers
Travelers deals in car, boat, and yacht insurance. For those looking to insure the purchase of a vehicle, Travelers offers Gap insurance for loans and leases. In the event that your vehicle is totaled, this coverage will cover the gap between the amount owed and the actual cash value. For discounts offered by Travelers, see below:

• Multi-policy
• Multi-car
• Homeownership
• Safe Driver
• Continuous insurance
• Hybrid or electric vehicle
• New car
• ETF, paid in full, and good payer
• Early quote
• Good student
• Student away from home
• Driver training

Learn more in our Travelers car insurance review.

USAA
USAA sells insurance to cover cars, motorcycles, classic vehicles, ATV’s, motorhomes, boats, and even planes. Current and former U.S. military members, as well as spouses and children, are eligible to purchase insurance from USAA. At USAA, remaining accident-free for five years means your premium won’t go up after an at-fault accident. USAA also offers rideshare coverage for drivers with Uber, Lyft, and other rideshare services.

Read more: How long does it typically take for USAA to process a car insurance claim?

Discounts below:

• Safe driver
• Defensive driver
• Driver training
• Good student
• New vehicle
• Multi-vehicle
• Annual mileage
• Vehicle storage
• Family discount
• Military installation discount
• Length of membership

Learn more in our USAA car insurance review.

Auto-Owners
Auto-owners covers cars, ATVs, off-road vehicles, motorcycles, trailers, motorhomes, RV’s, and boats. Auto-Owners offers optional gap coverage for loans and leases, as well as additional expense coverage. Purchase the Personal Automobile Plus Package and you’ll have a bundle of 10 coverages from identity theft protection to cell phone replacement. Also available is “diminished value” coverage, which compensates you when your vehicle depreciates by having been in an accident. Another unknown benefit is “collision coverage advantage,” which waives your deductible in the event that the other driver carries Auto-Owners. See below for discount options:

• Multi-policy
• Payment history
• Green discount
• Life multi-policy
• Paid-in-full
• Advance quote
• Multi-car
• Safety features
• Student away
• Good student
• Teen driver monitoring

Learn more in our Auto-Owners car insurance review.

State Farm
State Farm is the largest home and auto insurer in the nation, covering vehicle insurance for cars, motorcycles, RVs, off-road vehicles, boats, and classic cars. Discount offerings include:

• Safe driver
• Accident-free
• Good student
• Student away
• Safe vehicle
• Anti-theft
• Multi-vehicle
• Multi-policy
• Loyal customer
• Defensive driving
• Driver training

Learn more in our State Farm car insurance review.

Read more: How long does it typically take for State Farm to process a car insurance claim?

Allstate
Allstate sells auto coverage for cars, classic cars, motorcycles, boats, RVs, and ATVs. In addition to roadside assistance and rental reimbursement, Allstate offers optional sound system insurance. Customers can also add Gap insurance, new car replacement, and diminishing deductibles.

Read more: How long does it typically take for Allstate to process a car insurance claim?

Discounts include:

• Early signing
• Responsible driver
• Multiple policy
• New car
• Anti-lock
• Anti-theft
• Allstate eSmart
• FullPay
• EZ plan pay
• Safe driving club

Learn more in our Allstate car insurance review.

Erie
Erie’s auto insurance is available for cars, motorcycles, recreational vehicles, boats, ATVs, RVs, snowmobiles, golf carts, and classic cars. They offer loan/lease protection as well as ridesharing options, as well as “better car protection” which replaces your totaled vehicle with one that’s two years newer. Here are some discounts offered by Erie:

• Safe driving
• Car safety equipment
• Multi-car
• Multi-policy
• Reduced usage
• Young driver
• Annual payment
• College credit

Learn more in our Erie car insurance review.

What are the best car insurance companies for you to choose from? You’re now armed with information and need only compare to find the best price on car insurance.