Best Car Insurance: An Expert Guide (2024)

Car insurance isn’t one size fits all. Each insurance company offers different coverages, rates, and discounts, and the best policy for you depends on how much car insurance you need. So, the best car insurance for you might not be the same as your neighbor’s. 

Determining the best auto insurance will take some research. However, we’ve made it as easy as possible for you to find what you need.

This guide will discuss how to get the best car insurance and which company may fit your needs.

What is the best car insurance?

Unfortunately, there isn’t one answer. Instead, your situation determines the best car insurance, such as minimum or full coverage, multiple policies, or an SR-22. In addition, whether you need a company with low rates, numerous coverage options, excellent customer service, or streamlined service determines which company is the best for you.

However, the best insurance companies provide the coverage you need at low rates, with discounts and other advantages. 

The first step to finding the best car insurance is determining your coverage needs. Do you want the cheapest coverage available? Or are you willing to pay higher rates for the most protection or excellent customer service?

Then, compare multiple car insurance companies to find the coverage you want. Don’t forget to look at available discounts as well, since these can change which company is the cheapest.

How much is car insurance?

The average cost of car insurance varies significantly based on several factors, such as driving records and coverage level. For example, drivers with bad records or who choose full coverage pay higher rates than drivers with a clean record or who choose minimum coverage.

This table details the average monthly rates for a driver with a clean driving record from top companies:

While USAA has the cheapest rates, only military members and their families are eligible for coverage. Geico and State Farm tend to be the most affordable companies that offer coverage to all drivers.

However, these rates are just averages and vary greatly. Therefore, shopping around is the only way to find the cheapest rates available since rates differ by company.

What factors affect car insurance rates?

Your car insurance company looks at personal factors to determine your car insurance rates. Factors that affect car insurance rates while each company typically uses the same characteristics, how they weigh them differs.

Factors that affect car insurance rates include: 

• Age. Young and inexperienced drivers pay the highest car insurance rates. As drivers age, they gain the experience to avoid accidents and take fewer risks. As a result, rates decrease.
• Driving record. Your driving record indicates whether or not you are a risky driver. Drivers with accidents, tickets, and DUIs pay much higher rates than drivers with clean records.
• Coverage. More coverage means higher rates. However, you have fewer out-of-pocket costs with higher coverage if your vehicle is damaged.
• Vehicle. New and expensive vehicles have higher car insurance rates since they cost more to repair or replace. Although new technology makes repairs more costly, most insurers offer discounts for safety features.
• Credit score. Statistically, drivers with a lower credit score are more likely to file a claim instead of paying for repairs themselves. On the other hand, drivers with a high score file fewer claims.
• ZIP code. Drivers who live in areas with high crime and traffic rates see higher rates since the insurer is more likely to pay a claim. However, drivers in rural or low-crime areas see lower rates.
• Insurance history. Since most states require car insurance, insurers like to see a continuous coverage history. Drivers who allow their insurance to lapse may be considered risky drivers and have higher rates.

Since each driver’s personal factors differ, the best car insurance company also differs. For example, the best car insurance companies for accidents may not be the best for drivers with a clean record.

How does your driving record affect car insurance rates?

Your driving record is one of the most significant factors that impact your rates. Insurers use your record to determine if you’re a risky driver and likely to cost them money. Therefore, drivers with clean records get the lowest rates. On the other hand, drivers with at-fault accidents, tickets, and DUIs see much higher rates.

This table shows the average monthly car insurance rates based on driving records:

Not all infractions raise rates the same. For example, a DUI can raise your rates by over $100 a month, but a speeding ticket raises your rates much less. Multiple infractions can lead to your state requiring high-risk coverage and an SR-22, which shows you have at least the minimum amount of necessary coverage.

Fortunately, infractions only affect your rates for a while. Accidents and tickets typically stop raising your rates in three to five years. However, a DUI can raise your rates for up to 10 years in some states.

The best car insurance companies for drivers with a bad driving record are willing to take on risk based on other factors, like your age, coverage, and vehicle. So shop around to see which insurance company offers the best deal based on your driving record.

What car insurance coverage do you need?

Most states require at least a minimum amount of car insurance. However, each state determines the required coverages and limits. So, rates vary significantly by state.

Mandatory car insurance may include the following:

• Bodily injury and property damage liability coverage (BI) (PD). BI and PD pay for injuries and damages you cause to others in an accident. You, your passengers, and your vehicle aren’t covered.
• Uninsured/underinsured motorist coverage (UM/UIM). UM/UIM pays for injuries and damages you sustain from a driver with little to no car insurance. This coverage helps fill the gaps so that you can handle medical costs and repairs.
• Medical payment car insurance (MedPay). MedPay covers medical expenses related to an accident, such as doctor visits, X-rays, and medications.
• Personal injury protection coverage (PIP). PIP is similar to MedPay but also covers related expenses, such as lost wages, funeral expenses, and childcare.

Minimum coverage includes any coverage mandated by your state, but it typically offers little protection. For example, low limits may not cover injuries or damages, leaving you with high out-of-pocket costs. In addition, minimum coverage doesn’t pay for damages to your vehicle.

Read more: How Much Car Insurance You Need: An Expert Guide

What are other available car insurance coverages?

Although not required, there are types of car insurance coverage that you may need. For example, minimum coverage fulfills your state requirements but may not meet your needs.

Other car insurance coverages include:

• Collision insurance. Collision coverage pays for your vehicle damage from an accident, such as hitting another car, an object like a fence, or a rollover accident. 
• Comprehensive insurance. This coverage pays for your vehicle damage unrelated to an accident. Causes include fire, theft, vandalism, falling debris like hail or tree limbs, and acts of nature, such as floods, hurricanes, and tornados.
• Gap insurance. Gap coverage pays the difference between what you owe on your car and its worth if it is totaled. Most lenders require gap coverage until the vehicle is worth more than the loan amount.
• Accident forgiveness. An at-fault accident raises your rates for years. Accident forgiveness means your insurer won’t raise your rates for your first at-fault accident.
• Usage-based insurance. Many companies offer usage-based discounts for drivers that participate in telematics programs. These programs typically use an app to monitor driving behaviors, such as speed and braking, and calculate a discount based on how well the driver scores.
• Pay-per-mile insurance. Like usage-based insurance, pay-per-mile offers cheap insurance based on how much you drive. Most policies include a small monthly fee and then charge per mile driven. While coverage options are typically the same as a traditional policy, rates are much lower.
• SR-22 insurance. High-risk drivers may be required to file an SR-22, showing they have at least the minimum car insurance in place. While the form isn’t expensive to file, car insurance rates increase dramatically for high-risk drivers with infractions such as multiple DUIs, at-fault accidents, and driving while uninsured.

Most experts recommend full coverage, which combines your state requirements with collision and comprehensive coverage. Full coverage is more expensive, but it provides protection for your vehicle.

Read More: What is the process for transferring car insurance to a new car?

How can you save money on car insurance?

While car insurance rates can be expensive, there are ways to lower your car insurance. We’ve gathered a few changes you can easily make to lower rates.

First, carefully consider your policy. While full coverage provides the most protection, it also has higher rates. To get lower rates, consider removing coverages you may not need, such as roadside assistance and rental car reimbursement.

In addition, raising your deductibles means lower rates. However, reducing coverage and increasing deductibles mean more out-of-pocket costs if your vehicle is damaged. 

You may also consider usage-based car insurance. While many insurance companies offer a discount for participating in their telematics program, pay-per-mile insurance is also available. Drivers pay a small monthly base fee and a few cents for each mile driven. As a result, low-mileage drivers find much cheaper coverage than a traditional policy.

Next, look for car insurance discounts. Most insurers offer numerous discounts to help drivers save money. And, since discounts are based on the policy, driver, and vehicle, most drivers qualify for multiple savings.

For example, drivers may qualify for multi-car, safe driving, and vehicle safety feature discounts. Bundle all of your discounts for the most significant savings.

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

Finally, shop around to find the lowest rates and best car insurance available. Each insurer offers different coverages, rates, and discounts, so compare multiple quotes to find your best deal.

What are the best car insurance companies?

The best car insurance company differs for each driver. While most companies provide the same basic coverages, custom coverages, rates, discounts, and advantages vary by company.

Many drivers change car insurance companies to get better coverage or due to dissatisfaction with customer service or claims. In addition, it’s essential to compare insurance companies often since your factors may change, including your driving record clearing, marriage, and buying a less expensive vehicle.

We’ll look at some of the top insurance companies to give you an idea of what each one offers in addition to typical coverages, such as liability, uninsured/underinsured motorists, medical payment, personal injury protection, collision, and comprehensive.

Allstate

Allstate is a good fit for drivers looking for the best deal on coverage for their teen drivers.

In addition to affordable young driver rates, it offers numerous discounts, such as the good student and away student. Allstate’s teenSMART driver’s ed program provides tips and teaches safe driving skills for new drivers.

In addition to traditional car insurance, Allstate also provides motorcycle, boat, RV, ATV, and classic car insurance. Add-ons such as roadside assistance, sound system insurance, and gap coverage are also available. In addition, you can buy new car replacement coverage if you have a newer vehicle.

Allstate savings include early signing, paperless, multi-policy, paid-in-full, automatic payment, and vehicle discounts such as anti-lock brakes and anti-theft devices.

If you don’t drive often, you can get lower rates with the Allstate DriveWise program, which monitors driving habits such as hard braking and offers a discount based on your score. However, Allstate may raise rates for risky driving.

Read more: Best Auto Insurance for Young Adults

Auto-Owners

Auto-Owners isn’t available in every state but scores highly for customer satisfaction. The company provides coverage for motorcycles, RVs, and boats in addition to car insurance. It also offers add-ons such as roadside assistance and gap insurance.

Read more: What discounts are available for Auto-Owners car insurance customers?

Auto-Owners has various specialized coverages, including diminished value and collision coverage advantage. Diminished value coverage pays you if your vehicle’s worth decreases after being repaired. Collision coverage advantage waives your deductible if you’re in an accident with another Auto-Owners covered vehicle.

Adding a Personal Automobile Plus Package offers numerous add-ons like identity theft protection and cell phone replacement. In addition, drivers can also take advantage of new car replacement coverage.

Car insurance discounts include teen monitoring, paid-in-full, vehicle safety features, green, and multi-policy discounts. Read our Auto-Owners insurance review to learn more about the company.

Erie

Erie car insurance is only available in 12 states but has reasonable rates for teen drivers. In addition, the company allows drivers to lock in rates as long as no significant policy changes occur, such as adding a vehicle or driver.

In addition to car insurance, Erie provides motorcycle, RV, boat, classic car, and golf cart insurance. Read our Erie insurance review to learn more about all of its insurance options, including home and life insurance coverage.

The company also offers rideshare insurance. If you work for a rideshare company, your personal car insurance won’t cover you while working. Only a few insurance companies offer rideshare insurance, making Erie stand out.

Erie also offers new car protection and better car protection claims. New car protection replaces your totaled car with the latest model, and better car protection replaces your totaled vehicle with a model two years newer.

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

Erie car insurance discounts include reduced usage, away student, safe driving, multi-car, and vehicle safety discounts. Drivers can also save by paying their premium in full upfront.

Read more: What documentation do I need to file a car insurance claim with Erie?

Geico

Geico insurance reviews rank it as one of the cheapest car insurance companies, and it earns high customer ratings. Geico provides insurance coverage for boats, RVs, motorcycles, and classic cars. Drivers can also bundle their car insurance with homeowners, renters, condo, or mobile home insurance.

While Geico offers standard car insurance coverage, it also includes accident forgiveness, roadside assistance, and rental car reimbursement. In addition, drivers can find mechanical breakdown insurance with Geico, which pays for mechanical repairs for items like the transmission. Most insurers don’t offer this coverage. 

Other unique car insurance savings include military, federal employee, garaging, and membership discounts. In addition, alums and members of particular schools and organizations receive special discounts. Geico also provides car insurance for driving in Mexico.

Drivers who participate in Geico’s DriveEasy program get an additional discount. DriveEasy monitors specific driving behaviors, such as hard braking, and offers a discount based on safe driving. However, risky driving may raise rates. Read our complete guide to Geico DriveEasy to learn more.

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

Nationwide

Nationwide offers perks for drivers who stay with the company long-term. These loyalty perks include minor accident forgiveness, which doesn’t raise your rates for a minor at-fault accident. Learn how to qualify in our Nationwide insurance review.

Nationwide car insurance discounts include automatic payment, paperless, good student, and safe driver discounts. Additionally, Nationwide offers two usage-based ways to save.

First, SmartRide monitors safe driving habits and offers a discount based on how well you score. Next, drivers can enroll in SmartMiles, a pay-per-mile program that provides the same car insurance coverage as a traditional policy. However, rates are based on much you drive. Our Nationwide SmartRide guide explains more.

Nationwide also provides drivers with additional insurance products, such as RV, motorcycle, boat, classic car, and snowmobile coverage.

State Farm

State Farm insurance reviews will tell you it’s the largest car insurance company in the country. It’s available in most states and offers affordable rates for high-risk drivers who may find it challenging to get cheap coverage.

In addition, State Farm will file an SR-22, showing at least the minimum required coverage.

State Farm also offers hard-to-find coverages, such as rideshare and vintage car insurance. However, State Farm doesn’t offer gap coverage, accident forgiveness, or new car replacement. So, drivers with a new car and loan or lease should look elsewhere.

Read more: How can I find car insurance for a vintage or custom car?

Other insurance products offered by State Farm include RVs, boats, and homeowner coverage. The company also provides banking and investment products.

Drivers can save on State Farm with numerous car insurance discounts, including good student, accident-free, and loyal customer discounts.

In addition, the Drive Safe & Save telematics program uses an app to monitor safe driving. A discount is applied based on how well you score. Read our State Farm Drive Safe and Save review to learn more.

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

Travelers

Travelers offers gap insurance, accident forgiveness, and minor violation forgiveness, unlike many car insurance companies. This makes Travelers a good fit for drivers with a car loan or lease or who don’t want rates to increase if they are in an accident or receive a ticket.

Travelers also provides boat and yacht coverage, pet insurance, and other products such as flood, travel, and business coverage. However, while Travelers is one of the few companies that offer rideshare coverage, it’s only available in Colorado and Illinois. Learn more in our Travelers Insurance review.

Travelers car insurance discounts include electric vehicles, early quotes, away students, and paid-in-full discounts. In addition, the IntelliDrive program monitors driving habits and offers a discount. However, your rates may increase for risky driving.

USAA

USAA is one of the best auto insurance companies for military members. Other drives can’t get USAA coverage, but it ranks at the top for military members for price and customer service.

USAA also offers accident forgiveness, roadside assistance, rental car reimbursement, and rideshare insurance. However, USAA doesn’t offer gap insurance, so drivers with a loan or lease may have to look elsewhere.

USAA offers numerous insurance products such as boat, RV, flood, life, and health insurance. In addition, USAA offers banking, annuities, investments, and retirement services. Learn more in our USAA insurance review.

USAA car insurance discounts include military installation, membership, and family discounts. Additionally, the USAA SafePilot program monitors driving and offers a discount based on safe habits. USAA won’t raise your rates for risky driving. Use our complete guide to USAA SafePilot to see how much you could save.

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

Case Studies: Illustrative Examples of Finding the Best Car Insurance

Case Study 1: Sarah’s Story

Sarah is a 25-year-old driver with a clean driving record and a new car. She wants to find the best car insurance that offers comprehensive coverage at an affordable price. After comparing quotes from multiple companies, she finds that Company A offers the best rates and coverage for her needs. Sarah decides to purchase her car insurance from Company A.

Case Study 2: John’s Experience

John is a 40-year-old driver with a history of accidents and speeding tickets. He is considered a high-risk driver and needs car insurance that provides adequate coverage despite his driving record.

After researching different insurance companies, John discovers that Company B specializes in offering insurance to high-risk drivers at competitive rates. He decides to choose Company B for his car insurance needs.

Case Study 3: Emily’s Choice

Emily is a 35-year-old driver who is looking for the most affordable car insurance option. She doesn’t require extensive coverage and wants to minimize her monthly expenses.

After requesting quotes from various insurance providers, Emily finds that Company C offers the lowest rates for the minimum coverage required by her state. She decides to go with Company C to save on her car insurance premiums.

The Best Car Insurance: The Bottom Line

The best car insurance is different for each driver. Every driver has different needs, such as low rates, multiple coverage options, or an SR-22. Every car insurance company also provides different coverages, discounts, and rates. 

Once drivers determine how much coverage they need, they should shop around for the most affordable rates. Factors such as age, driving records, vehicles, coverages, and ZIP code are used to calculate rates, and each company uses a different formula.

Drivers can also get low car insurance rates by reducing coverages, increasing deductibles, and taking advantage of car insurance discounts.

Compare coverages, rates, and discounts from multiple companies to find the best car insurance for you.