Best Car Insurance Companies (2023)
Our comprehensive guide covers everything you need to know before choosing the best car insurance company for you.
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Zach Fagiano
Licensed Insurance Broker
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Licensed Insurance Broker
UPDATED: Mar 31, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Mar 31, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Most auto insurance customers shop around due to rate, claim experience, and coverage offerings.
- The cheapest car insurance rates for good drivers can vary from state to state.
- Understanding the coverage you choose is key.
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. We’ve considered a slew of factors to help you determine which company is going to give you the best car insurance available.
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 2000 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.
Company | Types of Discounts | Collision Repair Grade | Complaint Level | Forbes Advisor Rating |
---|---|---|---|---|
Geico | Accident-free, Anti-theft System, Defensive Driving, Good Student, Military, New Vehicle, Multi-vehicle, Multi-policy | C- | Low | 5/5 |
Nationwide | Accident-free, Automatic Payment, Defensive Driving, Good Student, Multi-policy, Paperless, Safe Driver | C | Very Low | 5/5 |
Travelers | Continuous Insurance, Good Student, Home Ownership, Hybrid/Electric Vehicle, Multi-car, Multi-policy, Safe Driver | C+ | Very Low | 5/5 |
USAA | Annual Mileage, Bundling, Defensive Driving, Driver Training, Family, Multi-vehicle, Safe Driver | C+ | OK | 5/5 |
Auto-Owners | Good Student, Multi-car, Multi-policy, Pay In Full, Safety Features, Student Away At School, Teen Driver Monitoring | B+ | Low | 4.5/5 |
State Farm | Accident-free, Defensive Driving Course, Good Driving, Good Student, Multi-vehicle, Student Away At School | C | Low | 4.5/5 |
Allstate | Anti-theft, Multi-policy, New Car, Pay In Full, Responsible Payer, Safe Driving Club | C- | Low | 4/5 |
Erie | Annual Payment, Multi-car, Multi-policy, Reduced Usage, Safe Driving, Young Driver | A- | Higher than industry average | 4/5 |
Progressive | Continuous Insurance, Good Student, Homeowner, Multi-car, Multi-policy, Pay In Full, Teen Driver | C | Okay | 3.5/5 |
Farmers | Alternative Fuel, Bundling, Distant Student, Good Student, Multi-car, Pay In Full, Safe Driver | C | Higher than industry average | 3/5 |
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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 (if applicable),
- 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:
Insurance Company | Average Annual Car Insurance Rates for Good Drivers | Average Monthly Car Insurance Rates for Good Drivers |
---|---|---|
USAA | $1,141 | $95 |
Geico | $1,182 | $99 |
State Farm | $1,402 | $117 |
Erie | $1,419 | $118 |
Travelers | $1,435 | $120 |
Auto-Owners | $1,532 | $128 |
Nationwide | $1,540 | $128 |
Progressive | $1,892 | $158 |
Allstate | $2,022 | $169 |
Farmers | $2,124 | $177 |
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:
Type of Driver | Average Monthly Car Insurance Cost |
---|---|
Good driver | $130 |
Driver caught with no insurance | $151 |
Driver with a single speeding ticket | $162 |
Driver who caused an accident with property damage | $189 |
Driver who caused an accident with an injury | $192 |
Driver with a single DUI | $218 |
Driver with poor credit | $240 |
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 some 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 - Opt for a higher deductible. Your 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 $2000 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.
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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:
Type of Insurance | Legality | Description |
---|---|---|
Liability | Required in most states | Car liability insurance pays to cover costs of repairs to the other party's vehicle, injuries, and property damage. It also protects you in the event of a lawsuit. Be sure you carry enough to cover whatever might be seized in legal proceedings. |
Uninsured motorist coverage (UM) | Mandatory in many states, optional in others | Uninsured motorist coverage kicks in when another driver caused the incident but has no coverage. It pays for medical expenses for you and your passengers, as well as covering other damages and costs associated. A related coverage called underinsured coverage, steps in when another driver's liability coverage as reached its limits. |
Collision and comprehensive coverage | Required with car loan or lease | These two coverages can be sold separately, but they're often carried at once. Collision covers damages incurred when moving, such as car accidents. Comprehensive covers claims not associated with operating the vehicle, such as theft, windshield damages, floods, and falling objects. |
Personal injury protection | Required in some states, optional in others | States with no-fault car insurance laws see smaller injury claims regardless of which driver caused an incident. As such, personal injury protection is required in no-fault states and optional in others, where it can cover health insurance deductibles |
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 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:
State | Cheapest Company for Good Drivers | Average Monthly Car Insurance Rates |
---|---|---|
Alabama | Geico | $90 |
Arizona | Geico | $82 |
Arkansas | State Farm | $110 |
California | Wawanesa | $139 |
Colorado | Geico | $97 |
Connecticut | Geico | $60 |
Delaware | Geico | $100 |
Florida | Geico | $142 |
Georgia | Geico | $101 |
Idaho | American National | $49 |
Illinois | Pekin Insurance | $88 |
Indiana | Geico | $65 |
Iowa | State Farm | $74 |
Kansas | Travelers | $109 |
Kentucky | Geico | $89 |
Louisiana | Louisiana Farm Bureau | $203 |
Maine | Geico | $49 |
Maryland | Travelers | $107 |
Massachusetts | Geico | $85 |
Michigan | Geico | $87 |
Minnesota | State Farm | $91 |
Mississippi | Direct General Insurance | $86 |
Missouri | State Farm | $87 |
Nebraska | Farmers Mutual of Nebraska | $114 |
Nevada | Geico | $115 |
New Hampshire | Concord | $64 |
New Jersey | Plymouth Rock | $97 |
New Mexico | Geico | $89 |
New York | Progressive | $87 |
North Carolina | Geico | $73 |
North Dakota | Geico | $63 |
Ohio | Geico | $64 |
Oklahoma | Geico | $96 |
Oregon | State Farm | $64 |
Pennsylvania | Erie | $97 |
Rhode Island | Geico | $112 |
South Carolina | American National | $60 |
South Dakota | Geico | $90 |
Tennessee | State Farm | $73 |
Texas | Texas Farm Bureau | $86 |
Utah | Geico | $69 |
Vermont | Geico | $50 |
Virginia | Geico | $87 |
Washington | Geico | $91 |
West Virginia | Geico | $96 |
Wisconsin | Geico | $66 |
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 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 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. 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 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 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 insurance review.
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. 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 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 insurance review.
Who offers the best coverage for you? You’re now armed with information and need only compare. Happy hunting!
Frequently Asked Questions
Which company offers the best coverage?
According to Forbes Advisor’s analysis, Geico, Nationwide, Travelers and USAA boast the best offerings. They scored highest based on rates, coverage selections, collision repair, complaints, and website readability.
How can I find the best price on auto insurance?
Get quotes from several companies and compare them. Look for every discount and when you can, bundle multiple vehicles or multiple policies. Buying more than one product from the same company often grants a discount all products bundled.
Which discounts should I look for?
All of them that a given company offers. Some, such as safety equipment discounts, may be automatic. Others, such as good student or driver training discounts, may need to be asked about.
How was the information gathered?
From March 23-24, 2022, OnePoll conducted a survey of 2,000 U.S. adults on behalf of Forbes Advisor. The margin of error is +/- 2.2 points with 95% confidence.
Are you looking for free insurance quotes?
Your one-stop online insurance guide. Get free quotes now!
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Zach Fagiano
Licensed Insurance Broker
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Licensed Insurance Broker
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.