8 Best Car Insurance Companies In Usa – Whether you are considering switching insurers or this is your first time selecting a policy, our selection of the top auto insurance companies provides all the coverage you require.
The companies featured in our list offer the five primary types of coverage: collision, comprehensive, personal injury protection, liability, and uninsured/underinsured motorists coverage.
Furthermore, they provide a range of discounts to help reduce the cost of your monthly premium. By opting for paperless billing, insuring multiple vehicles, completing safe driving courses, or maintaining loyalty with the same insurer, you can lower your rate.
We have meticulously compiled a comprehensive breakdown of each company’s policies, provisions, and benefits to assist you in obtaining reliable and affordable protection. Join us as we examine the eight best auto insurance companies for June 2023.
Our Top Picks for Best Car Insurance Companies of June 2023
- Amica Mutual – Best Car Insurance Package
- Progressive – Best for Customizable Premiums
- State Farm – Best for Young Drivers
- Farmers – Best for Essential Worker and First Responder Discounts
- Nationwide – Best for Flexible Policies
- GEICO – Best Mobile App
- Allstate – Best Usage-Based Insurance Program
- USAA – Best for Military Members
Protect yourself and your car with Progressive
Best Car Insurance Companies Reviews
Best Car Insurance Package: Amica Mutual
- Free airbag replacement (after it deploys)
- Lock replacement if your keys are stolen
- $1K for bail bonds and wage reimbursement if you’re required to appear in court
- Offers non-binary option for gender
- Doesn’t offer rideshare insurance
- Not all features are available nationwide
- Coverage not available in Hawaii
|A.M. BEST RATING||A+|
|J.D. POWER RATING||Above average (895/1,000)|
|NAIC Complaint Index||Below median (0.49)|
Why we chose it: Amica Mutual has secured a place on our list due to its exceptional Platinum Choice Auto policy, which presents drivers with the opportunity to earn Advantage Points rewards and achieve significant savings on their deductible.
The Amica Platinum Choice Auto Policy is a comprehensive package that encompasses all the essential coverage that most individuals require. Additionally, it offers exclusive perks like identity fraud monitoring, ensuring comprehensive protection.
Moreover, this policy includes deductible-free glass coverage, rental car coverage, and an innovative Advantage Points program. Through this program, drivers can accumulate points to reduce their deductibles or prevent rate increases following a claim.
Amica distinguishes its coverage into two categories: the essential coverage that is necessary and the additional coverage that is desirable to have for enhanced protection.
Its offerings include:
- MedPay — additional coverage for medical bills and funeral expenses
- Collision — covers accident-related damage
- Comprehensive collision — covers damage caused by theft, fire or other natural disasters
- Guaranteed asset protection (GAP) — covers the “gap” between what you owe and the depreciated value of your car if it were to be totaled
- Credit monitoring service — offered by very few companies, this can help you keep track of your credit and alert you to any potential identity theft
When it comes to customer satisfaction, Amica has consistently achieved the highest score in the New England region for 10 consecutive years, according to the J.D. Power’s Auto Insurance Customer Satisfaction study. Furthermore, Amica maintains a low complaint ratio, as reported by the National Association Of Insurance Commissioners (NAIC). However, it’s worth noting that rate increases and delays in claims handling have been recurring concerns. Additionally, Amica received a B+ rating in the 2022 CRASH report card, which assesses insurers based on their policy handling and payment practices as evaluated by mechanics.
Amica car insurance discounts
- Bundling policies and insuring multiple vehicles
- Paperless payments, up-front premium payments and AutoPay
- Good driving habits: being claim-free for three years and taking a defensive driving course
- Young drivers: for completing a training program, students with good grades and full-time students away at school
- Having anti-theft devices, passive restraint or electronic stability features
- Loyalty discounts after two years of being insured
- Legacy discounts for drivers under 30 whose parents have been insured with Amica for at least five years
Amica car insurance tools
- Mobile app: track claims, request roadside assistance, pay bills
- Car Connection tool for comparing prices on new and used cars
Best for Customizable Premiums: Progressive
- Save on your premium by signing up for the drive-monitoring program
- Look for premiums within your budget with its Name Your Price tool
- Compare quotes with Progressive’s comparison tool
- Loyalty Reward program
- Pricing may vary depending on whether you buy online or over the phone
- Discounts vary and are not available in all states
|A.M. BEST RATING||A+|
|J.D. POWER RATING||Below average (862/1,000)|
|NAIC Complaint Index||Above median (0.83)|
Why we chose it: We have selected Progressive as the top car insurance provider for customizable premiums due to its innovative Name Your Price tool, which allows drivers to tailor their coverage to suit their budget.
What sets Progressive apart is its emphasis on customization. With the Name Your Price tool, customers can establish a budget, and Progressive creates a policy that aligns with it. Policyholders can then select their desired coverage limits and deductibles accordingly.
For instance, by increasing the deductible for collision coverage, drivers can save on their premium. It’s important to note, however, that in the event of an accident, a higher amount will need to be paid before insurance coverage kicks in.
Progressive offers notable add-ons, including GAP coverage. For an additional $14 per month, this coverage bridges up to 25% of the gap between the vehicle’s value and the outstanding loan amount. Another valuable add-on is custom equipment coverage, which covers the repair costs of accessories installed to enhance mobility, such as GPS systems or other vehicle customizations.
Progressive goes above and beyond by providing coverage for certain items that few other insurers offer. This includes rideshare coverage, which protects individuals working for rideshare services (such as Uber, Lyft, or food delivery) either full time or as a side hustle. Additionally, Progressive’s collision policy covers medical expenses for injuries sustained by pets during an accident.
In terms of savings, Progressive’s telematics Snapshot program utilizes driving data, such as acceleration, braking, and distance, to reward safe driving behavior with discounts. The company also offers the option to join its deductible savings bank, where $50 is deposited into savings every six months without a claim, eventually reaching the deductible limit. This means that if a claim is filed, the deductible will already be paid for.
Overall, Progressive stands out for its flexible and personalized approach to car insurance, combined with various savings opportunities and unique coverage options.
Progressive car insurance discounts
- Bundling auto insurance policy with home, renters or life insurance
- Insuring multiple vehicles
- Choosing automatic and paperless payments
- Maintaining continuous coverage with Progressive
- Teen driver discounts: full-time students with good grades and students away from home
Progressive car insurance tools
- Find coverage options within your budget with the Name Your Price tool
- Car insurance calculator based on your state and personal details
- Get personalized rates with Snapshot, a usage-based insurance program (not available in California or North Carolina)
- Mobile app: view your driving status, see recent trips and learn ways to improve your driving
Best for Young Drivers: State Farm
- Available in most states
- Save money with Drive Safe & Save and Steer Clear programs
- Travel expenses coverage
- Drive Safe & Save program not available in CA, MA or RI
|A.M. BEST RATING||A++|
|JD POWER RATING||Above average (892/1,000)|
|NAIC Complaint Index||Below median (0.70)|
Why we chose it: We have selected State Farm as the top car insurance provider for young drivers due to its exceptional rewards program that offers substantial savings to teenage student drivers with a GPA of 3.0 or higher.
Insuring teenage drivers can be costly, but State Farm distinguishes itself from other insurers by offering significant discounts that help mitigate the higher premiums. Through the Good Student Discount, policyholders can save up to 25% if their teenage driver maintains a GPA of 3.0 or higher until the age of 25. Furthermore, drivers under the age of 21 can also receive a discount for completing a driver’s education course.
Moreover, State Farm provides the “Student Away at School” discount, which enables customers to save by only providing coverage for the student while they are home on vacation and during holidays.
State Farm is renowned for its vast network of nearly 19,000 agents spanning all fifty states. This makes it an ideal choice for individuals who prefer personalized service and value having a dedicated agent available to address their inquiries. State Farm ranked as the highest car insurer in the Southwest region according to J.D. Power’s 2021 Auto Insurance Customer Satisfaction report and achieved second place in Texas, New York, and the New England and Northwestern regions.
In terms of policy offerings, State Farm includes coverage for rental cars and travel expenses in the event of an accident that occurs 50+ miles away from home. Additionally, their roadside assistance coverage caters to situations such as flat tires, jumpstarts, and lockouts. Notably, State Farm’s travel expenses coverage extends its roadside assistance benefits if the accident is covered by comprehensive and collision insurance. This coverage reimburses up to $500 per incident for expenses like hotel stays, meals, and provides a rental car while the insured vehicle is being repaired.
State Farm also offers the Drive Safe and Save telematics program, which rewards safe driving habits. By monitoring factors such as speed, braking, and other driving behaviors, the program provides feedback and discounts. Merely enrolling in the program grants a discount, and drivers can receive up to a 30% discount for consistently demonstrating safe driving practices.
State Farm’s commitment to providing excellent discounts, comprehensive coverage options, and personalized service makes it the ideal choice for young drivers seeking reliable car insurance.
State Farm car insurance discounts
- Bundling with renters, homeowner’s or life insurance policies
- Insuring multiple vehicles
- Drive Safe & Save telematics program rewards you for good driving habits
- Defensive driving courses (in select states)
- Vehicle safety features (seatbelt, airbags on older vehicles)
State Farm car insurance tools
- Mobile app: pay bills, file claims, request roadside assistance, view ID cards and link your bank account
- Make car reservations through Enterprise or Hertz
- Directory of reliable auto repair shops
Why we chose it: We chose Farmers as the best car insurance for essential workers due to its array of discounts tailored specifically for teachers, healthcare workers and other first responders.
- Guaranteed Value coverage pays out an “agreed value” if your car is totaled
- Has multiple discount categories available
- Discount for alternative-fuel vehicles (first insurer to offer this)
- Discount eligibility and percentage varies depending on your place of residence
- Does not offer GAP insurance
|A.M. BEST RATING||A|
|JD POWER RATING||Above average (893/1,000)|
|NAIC Complaint Index||Below median (0.80)|
Why we chose it: Farmers is our top choice for car insurance tailored to essential workers, thanks to its extensive range of discounts specifically designed for teachers, healthcare professionals, and other first responders.
While Farmers may not offer the lowest rates in the market, it compensates for this by providing policies and discounts that are not commonly found with other insurers. One noteworthy example is the Affinity discount, which extends to healthcare professionals, members of select organizations, as well as active, reserve, or honorably discharged military personnel.
Another notable discount is the Senior Driver discount, available to individuals over the age of 55 (or 65, depending on the state) who complete a state-approved safe driver training course. This discount is particularly valuable as senior drivers, similar to teenage drivers, often face higher premiums due to being perceived as higher-risk to insure.
For enthusiasts of classic cars, Farmers offers specialized classic and collector car insurance. With this coverage, you can safeguard your collectible vehicle during car shows or even while traveling abroad. Additionally, policyholders have the option to combine this coverage with spare parts coverage, providing up to $750 for spare part repair or replacement, all at no extra cost.
One potential drawback of Farmers is its rates, which tend to be slightly higher than the average. However, its unique offerings and customizable coverage make it an excellent choice for those who are willing to invest a bit more for tailored protection.
Farmers car insurance discounts
- Bundling insurance policies and insuring multiple vehicles
- Student discounts for good grades and being away from home
- Automatic, paperless and on-time payments
- Shared family car (not available in California)
- Anti-theft, anti-lock brake and passive restraint systems
- Hybrid/electric vehicles or those powered by other alternative fuels (only in California)
- Discounts for military members and other essential service professionals
Farmers car insurance tools
- Mobile app: chat with an agent, request roadside assistance, get a quote
- Specialty insurance options like motorcycle and boat insurance
Best for Flexible Policies: Nationwide
- Get discounts with the SmartRide safe driving app
- Pay based on how many miles you drive
- Get up to a $500 cash bonus with the purchase or lease of a qualified new car or vehicle
- SmartRide and SmartMiles discount availability vary per state and coverage selected
- Accident forgiveness is not available in all states
- Not available in Alaska, Hawaii, Louisiana or Massachusetts
|A.M. BEST RATING||A+|
|J.D. Power Score||Below average (876/1,000)|
|NAIC Complaint Index||Below median (0.34)|
Why we chose it: We have selected Nationwide as the top choice for flexible car insurance policies due to its offering of a complimentary yearly policy evaluation. This evaluation allows drivers to review their coverage, ask questions, make adjustments, and apply for discounts as needed.
Nationwide provides a wide range of both standard and optional coverage options for customers to choose from. To ensure that drivers select the appropriate coverage year after year, Nationwide offers the On Your Side Review. This annual evaluation allows policyholders to address any questions regarding their policy and assess whether the discounts and benefits are still suitable for their needs.
Nationwide presents two programs that can help drivers save money based on their driving habits. The SmartRide program utilizes telematics to track various driving factors such as mileage, idle time, night driving, acceleration, and braking. Participants receive feedback to improve their driving habits and can enjoy a 10% discount upon enrollment. Depending on their safe driving performance, they have the potential to save up to 40% on their premiums. Additionally, the SmartMiles program charges a base rate of $60 along with a variable rate of $0.07 per mile driven each month.
Furthermore, Nationwide offers the Vanishing Deductible discount. With this benefit, customers receive a $100 deduction from their deductible for every year without an accident, up to a maximum of $500. For example, if a policyholder has been accident-free for four years and then experiences an accident in the fifth year, they would only be responsible for a $100 deductible. Additionally, they will continue to earn a yearly reward of $100 for the following year.
Nationwide prides itself on having the lowest NAIC complaint index among the listed insurers, with a value of 0.39. However, it is important to note that its ranking in J.D. Power’s U.S. Customer Satisfaction study was below average.
Overall, Nationwide offers the flexibility and convenience of a complimentary yearly policy evaluation, along with various savings programs and the Vanishing Deductible benefit. These features make Nationwide an attractive choice for drivers seeking adaptable car insurance policies.
Nationwide car insurance discounts
- Save an average of $646 when bundling auto and home insurance
- Vehicle safety and anti-theft devices
- Automatic and paperless billing
- Safe driver rewards for customers who go five years without major violations or at-fault accidents
- Complete a defensive driving course
- Good student discounts for drivers aged 16 to 24 who maintain a minimum B average
Nationwide car insurance tools
- Mobile app: manage insurance policies, make payments, file and track claims and request roadside assistance
- SmartMiles, a pay-per-mile car insurance program for low-mileage drivers
- SmartRide, a usage-based car insurance program for safe drivers
Best Mobile App: GEICO
- Pay bills or request roadside assistance with the mobile app
- Coverage calculator
- Discounts available to federal and military employees, seniors and students
- Accident forgiveness not available in CA, CT and MA
- Does not offer GAP insurance
|A.M. BEST RATING||A++|
|J.D. Power Score||Above average (881/1,000)|
|NAIC Complaint Index||Below average (0.62)|
Why we chose it: GEICO’s mobile app goes beyond providing access to digital insurance cards and claims filing—it also integrates with CARFAX, allowing users to access their vehicle’s history and check for recalls.
While GEICO’s gecko mascot may be the first thing that comes to mind, the company truly shines in its fully digital experience, catering to those who prefer online interactions over traditional customer service calls.
Through GEICO’s mobile app, policyholders can conveniently request roadside assistance, upload photos for damage estimates, and manage their claims. The app also serves as a “pocket agent,” offering insurance-related information, alerts for recalls, and reminders for vehicle maintenance.
GEICO covers all the standard types of insurance, including bodily injury liability, collision, comprehensive, uninsured/underinsured motorist, and medical coverage. Their website provides detailed information on these coverage options, including limits, premiums, and deductibles, empowering customers to create a policy that aligns with their specific needs and budget.
A wide range of discounts is available to help customers reduce their rates, categorized into vehicle equipment, driving history and habits, driver affiliation, and customer loyalty. For instance, GEICO’s anti-theft system discount can result in savings of up to 23%, while policyholders with a clean driving record for five years can save up to 22%.
GEICO also offers notable discounts for military personnel, including savings of 15% for active or retired members and 25% in case of emergency deployment. Among the companies on our list, GEICO is one of only two insurers providing such military discounts.
In terms of third-party ratings, GEICO received above-average scores in almost all regions surveyed in J.D. Power’s 2022 U.S. Auto Insurance Customer Satisfaction study, with the exceptions being Texas, the Mid-Atlantic region, and the Southeastern region.
GEICO car insurance discounts
- Equipment discounts for new cars, airbags, anti-lock brakes, anti-theft systems and others
- Being accident-free for five years
- Using a seatbelt, taking defensive driving or driver’s education courses and being a good student
- Affiliation discounts for military members and federal employees
- Insuring multiple vehicles and having multiple policies
- Senior driver discounts for drivers over 50
GEICO car insurance tools
- Mobile app: access ID cards, pay bills and request roadside assistance or customer support 24/7
- DriveEasy telematics program rewards safe driving behavior
- Car insurance coverage calculator
Best Usage-Based Insurance Program: Allstate
- Get driving insights and discounts for safe driving with Drivewise
- Safe Driving Bonus for every 6 months you’re accident-free
- Get discounts for new cars and teen drivers
- Drivewise program not available in every state
- Premiums vary depending on whether you buy online or through a local agent
|A.M. BEST RATING||A+|
|J.D. Power Score||Below average (870/1,000)|
|NAIC Complaint Index||Above median (1.09)|
Why we chose it: We have selected Allstate as the top choice for auto insurance with its usage-based programs, primarily due to its Drivewise telematics feature. Drivewise enables drivers to save by monitoring their driving habits, providing valuable feedback, and offering rewards for safe behavior on the road.
In today’s auto insurance landscape, telematics have become increasingly prevalent, and Allstate Drivewise stands out among the competition. By signing up for Drivewise, customers automatically receive a 10% discount, and they have the potential to save up to 40% through various combined discounts.
One noteworthy aspect of Drivewise is its crash detection feature, which promptly notifies drivers in the event of an accident, regardless of whether they are the driver or a passenger. The notification offers assistance options, such as contacting roadside assistance or emergency services.
Allstate also distinguishes itself in the realm of bundling discounts. Customers who combine their auto insurance and homeowners insurance policies with Allstate can enjoy a 10% discount on auto insurance and a significant 25% discount on homeowners insurance. Notably, Allstate’s homeowners insurance policies include flood protection, making bundling an attractive and comprehensive choice.
Another advantage that sets Allstate apart from many competitors is its coverage extension into Mexico. Whether customers are traveling with their own vehicle or renting one, Allstate provides coverage in Mexico, making it an appealing option for residents of Texas and other border states.
However, it is important to note that Allstate has received lower customer satisfaction scores in both J.D. Power’s 2020 studies on Claims Satisfaction and Auto Insurance Customer Satisfaction. These scores have not seen significant improvement in the 2022 Auto Insurance Study. It is crucial to consider that customer satisfaction can vary by location, so conducting thorough research on Allstate’s service quality in your specific area is recommended to determine if it aligns with your needs.
Allstate car insurance discounts
- Vehicle equipment discounts for new cars, anti-lock brakes and anti-theft devices
- Multiple policies
- Safe driving
- Signing your policy seven days before it becomes effective
- Not missing any payments for a year
- Discount for students with good grades, those who study away from home and complete a driver’s education program
- Automatic payments, full payments and paperless billing
Allstate car insurance tools
- Mobile app: access ID cards, pay bills, report claims, request roadside assistance and accident support
- Drivewise, a usage-based insurance program
- Milewise, a pay-per-mile car insurance program
- Bumper-to-Bumper Basics, a tool for selecting the right coverage limits and deductible
Best for Military Members: USAA
- The highest overall customer satisfaction rating out of the companies we reviewed
- Offers family discount for members whose parents were customers of USAA
- Available in all 50 states, including Washington, D.C.
- Not available to civilians
- Offers fewer specialty coverages compared to other car insurance providers
|A.M. BEST RATING||A++|
|J.D. Power Score||Highest Overall (909/1,000)|
|NAIC Complaint Index||Above median (0.85)|
Why we chose it: Our selection for the top car insurance company for military families and veterans is USAA. This company specializes in serving these specific groups and has consistently received one of the highest customer satisfaction ratings among all the companies we reviewed.
According to J.D. Power’s 2022 Auto Customer Satisfaction Study, USAA achieved the highest scores in all states and regions analyzed, with the exception of California. It is important to note that USAA did not receive a rank in the study due to not meeting the award criteria established by J.D. Power.
Similar to other insurance providers, USAA offers a range of discounts, including some unique features tailored to military members. One notable discount is the car storage discount, which allows members who store their vehicles at military installations to receive up to a 60% discount on their policy. Additionally, members can save up to 15% on comprehensive coverage when storing their cars on military bases or installations. USAA also offers a low-mileage discount that applies to both stateside and deployed members.
USAA excels in its Safepilot telematics program. By enrolling in this program, members automatically receive a 10% discount and can potentially earn up to a 30% discount for demonstrating safe driving habits. However, it’s worth noting that the Safepilot program operates through an app, and recent reviews have indicated some complaints about the app’s latest update, describing it as “buggy” and frustrating to use.
While USAA is renowned for its customer service, recent feedback logged with the Better Business Bureau suggests a potential decline in service quality. Some customers have reported issues with the claims process and inconsistent customer support.
Although USAA is considered one of the top providers for military members, we recommend thoroughly assessing whether their other insurance policies align with your needs. It is possible that other providers may offer better bundle options that suit your specific requirements.
USAA car insurance discounts
- Safe driver discount for being accident-free for more than five years
- Defensive driving discount for taking an approved course
- Driver training discount for completing a basic driver training course
- Good student discount for teenage drivers with good grades
- New vehicle discount for a car that’s less than three years old
- Multi-vehicle discount
- Vehicle storage discount
- Family discount
- Military installation discount
- Automatic payments
USAA car insurance tools
- Mobile app: manage policy, get car insurance quotes, get auto ID cards and transfer funds
- Above-average customer satisfaction rating with J.D. Power
- Ability to lock in rates until you change covered drivers, covered car or home address
- It only operates in IL, IN, KY, MD, NY, NC, OH, PA, TN, VA, WV, WI and DC
Why Erie didn’t make the cut: This insurance provider operates exclusively in 12 states and the District of Columbia.
Erie emerged as the top-rated auto insurance company in J.D. Power’s 2022 Auto Customer Satisfaction Study for both the Mid-Atlantic and North-Central regions.
One standout feature that sets Erie apart is its Rate Lock. This exclusive feature ensures that policyholders’ insurance premiums remain unchanged year after year, even in the event of filing a claim. We could not find any other provider that offers such a feature.
In terms of discounts, Erie offers similar options to other providers on our list. Some notable discounts include diminishing deductibles, first accident forgiveness, and vehicle storage coverage.
- Save up to 30% on your policy for safe driving with RightTrack app
- Get a discount for your hybrid or electric vehicle
- Get a better price when you purchase your policy online
- Second highest NAIC complaint ratio out of all insurers on our list
- Accident forgiveness not available in CA
Why Liberty Mutual didn’t make the cut: Liberty Mutual did not meet the criteria for inclusion in our main list due to its high complaint ratios with the National Association of Insurance Commissioners (NAIC) compared to the companies we evaluated. However, it is important to note that this does not necessarily indicate poor or inadequate coverage.
Similar to many other insurance providers, Liberty Mutual offers a wide range of coverage options, including medical expense payments, uninsured motorist coverage, personal injury protection, liability coverage, collision coverage, and comprehensive coverage. They also provide additional riders such as roadside assistance, GAP coverage, and rental reimbursement.
Liberty Mutual offers some unique features, such as coverage specifically designed for teachers who store valuable supplies in their vehicles. Additionally, one notable aspect is that there are no caps on the discounts you can accumulate with Liberty Mutual. This means you have the potential to enjoy significant savings. Furthermore, Liberty Mutual provides a coverage calculator on their website, allowing you to easily determine the level of protection that best suits your needs.
- Features two accident forgiveness plans
- Intellidrive program can reduce rates by as much as 20%
- Optional premier program combines new car replacement, loan/lease GAP coverage and a glass deductible
- High NAIC complaint index compared to other insurers
- Rideshare coverage only available in CO and IL
- Not available in AL, HI, LA, MI, ND, SD or WV
Why Travelers didn’t make the cut: Travelers did not make it onto our best auto insurance list due to the fact that it does not provide policies in Alaska, Hawaii, Louisiana, Michigan, South Dakota, North Dakota, or West Virginia.
However, Travelers offers a quick and convenient quoting process, allowing you to obtain a quote in five minutes or less without even requiring a driver’s license number. If you request a quote while still insured with another company, you may be eligible for a discount of up to 10% when you switch to Travelers.
When it comes to coverage options, Travelers offers a range of choices including liability, collision, comprehensive, personal injury protection, and medical expenses coverage. They also provide additional coverage options such as loan/lease GAP coverage, rental reimbursement, accident forgiveness, new car replacement, and roadside assistance. It’s important to note that rideshare coverage is only available for Uber or Lyft drivers in Colorado and Illinois.
Although Travelers does not offer car insurance in certain states, its quick quoting process and comprehensive coverage options make it worth considering for those who reside in areas where it is available.
- Compare online quotes from multiple top insurance providers at the same time
- Users can compare other types of policies such as home, renters and life insurance
- Doesn’t offer quotes, the website redirects you to lender websites
- May share information you provide with lenders and other third parties
Why Quote Wizard didn’t make the cut: QuoteWizard did not make it onto our list because it is a marketplace rather than an insurance provider. As a result, the quotes provided on QuoteWizard may not accurately reflect the actual price that customers will pay for their insurance coverage.
If you’re interested in comparing car insurance quotes from various companies, QuoteWizard is a valuable option. Its platform makes it relatively easy to compare quotes and coverage types from major insurance companies, saving you the time and effort of contacting each provider individually.
However, it’s important to note that the quotes provided on QuoteWizard are estimates. Your actual premium and average rates can be influenced by several factors, including the make and model of your vehicle, your location, and the specific type of coverage you require. Additionally, it’s essential to review local and state laws to ensure that your policy meets the minimum liability requirements in your area.
While QuoteWizard can be a useful tool for comparing quotes, its status as a marketplace and the inherent variability in insurance pricing prevent it from being included on our list of recommended insurance providers.
Spark Auto Insurance
- Partners with other auto insurance companies
- Requires you to enter personal information before connecting you with its provider network
- Allows drivers to compare coverage from comparing multiple companies
- Coverage varies by provider
Why Spark Auto Insurance didn’t make the cut: When we attempted to obtain quotes for a hypothetical customer, we received only one outcome.
Spark Auto Insurance is an online marketplace that enables customers to compare quotes and coverage from some of the finest insurance companies in the industry, including Progressive, State Farm, Liberty Mutual, Travelers, and Allstate.
This network of providers offers a range of standard and optional coverage options, including bodily injury liability, damage liability, collision, comprehensive, personal injury, medical payments, and underinsured motorist coverage, among others.
To receive a quote, users are required to provide basic information such as their address, vehicle make and model, and marital status. Subsequently, Spark presents one or more outcomes from providers that offer a policy tailored to match the customer’s specific profile.
Car Insurance Guide
In this section, you will discover the extent of coverage provided by auto insurance, the common types of coverage offered by most companies, and the factors that can impact your monthly premium, either increasing or decreasing it.
Additionally, we provide a comprehensive step-by-step guide on purchasing car insurance and delve into the reasons why investing in car insurance is a wise financial decision.
How does car insurance work?
Auto insurance provides coverage for losses resulting from theft, collisions, and liability related to your vehicle. In simple terms, you pay premiums to an insurance company, and it covers the specified losses outlined in your policy, which typically include damage to other vehicles and injuries to individuals involved.
These policies always include a deductible, which is the amount you must pay out of pocket before the insurer covers the remaining costs. Deductibles can vary from $250 to $2,000. Policies with higher deductibles tend to have lower premiums since you assume a larger portion of the repair or replacement costs in the event of an incident.
It’s important to note that car insurance generally does not cover personal belongings inside your vehicle. For instance, if someone breaks into your car and steals your laptop, the insurer will cover the window replacement and any other damages to the car, but not the computer itself. To protect personal property, you would need homeowners or renters insurance.
Auto insurance regulations vary at the state level, so the minimum liability limits of your policy will depend on local laws. With the exception of New Hampshire and Virginia, all other states require drivers to have car insurance or pay a designated fee if they are uninsured.
Types of car insurance coverage
There are seven standard components of auto insurance coverage:
- Liability insurance includes property damage and bodily injury liability; the latter covers medical expenses to others stemming from an at-fault accident.
- Uninsured/underinsured motorist coverage covers medical bills and repairs if you’re in an accident caused by another driver with little or no insurance.
- Comprehensive coverage covers repairs if your vehicle is damaged by something other than another vehicle (including hail, fire, floods, theft and vandalism).
- Collision coverage covers repair costs to your vehicle if you’re involved in a car accident that is deemed to be your fault.
- Medical payments coverage covers medical expenses if you or your passengers are injured in an accident.
- Personal injury protection (PIP), also known as no-fault insurance, covers medical bills, loss of wages and funeral costs for you or your passengers if you’re in an accident, regardless of who is at fault.
- Guaranteed asset protection (GAP), supplements your car insurance when you owe more on the car than its cash value. This would typically not be covered under a regular policy.
In addition to these, optional insurance riders can give you additional coverage such as roadside assistance, glass replacement and rental reimbursement at an extra cost.
What does full Coverage car insurance cover?
Full coverage auto insurance is a comprehensive package that includes liability, collision, and comprehensive coverage. This combination of coverage options provides financial protection for drivers, reimbursing them for damages to their vehicle, injuries to passengers, as well as damages to other cars and their occupants. With full coverage auto insurance, drivers have peace of mind knowing that they are well-protected in various scenarios on the road.
How much is car insurance?
According to the most recent Auto Insurance Database Report by The National Association of Insurance Commissioners (NAIC), the average cost of car insurance is $1,176. However, it’s important to note that this average can vary significantly due to a multitude of factors. The NAIC explicitly acknowledges the challenges in making state-to-state comparisons due to the considerable variability in insurance requirements and other influencing factors.
Common factors that increase premiums
While your driving record and the type of car you drive do influence your car insurance premium, there are additional factors that can affect the cost. Generally, the higher the perceived risk you pose to the insurer, the higher your premium will be.
What drives up car insurance premiums?
Here are some of the factors that will determine your premium.
- Car usage: If you have infrequent driving habits, the likelihood of being involved in an accident decreases. Conversely, the more you drive, the higher the probability that the insurance company will need to cover a claim, resulting in higher premium costs.
- Place of residence: Your car insurance premium is influenced by your location. Typically, metropolitan areas such as New York City have higher rates of vehicle theft and vandalism compared to rural neighborhoods, which translates to a higher level of risk.
- Age: Young drivers under the age of 25 typically face higher insurance premiums due to their perceived lack of experience, which is considered a contributing factor to accidents. Consequently, teenagers are classified as high-risk drivers and are often subjected to the highest premium rates.
- Gender: Statistically speaking, women are involved in fewer car accidents than men, resulting in lower premiums.
- Marital status: Insurers consider married drivers as safer than single drivers.
- Commute: Insurers request mileage information, including the number of miles you drive annually, as longer commutes raise the likelihood of being involved in an accident. Certain companies have defined criteria to identify whether your vehicle falls under the category of a pleasure vehicle, typically around 7,500 miles per year or approximately 20 miles per day, which can result in lower rates being offered.
- Homeowner status: Generally speaking, insurers regard homeowners as more financially stable, and thus less of a risk, than renters.
- Owning luxury or sports vehicles: These cars cost more to repair, have higher vehicle theft rates and plenty of horsepower, which makes them costlier to insure.
- Accidents or tickets: These can hike up your payments for three years or longer. Having a DUI violation on your record can also drive your rate up.
- Credit score: Although the practice has been banned in some states, many still allow insurers to utilize credit-based insurance scores to determine policy pricing. Statistical data indicates that drivers with poor credit are more prone to filing insurance claims.
How to lower your car insurance premium
There are steps you can take to reduce the cost of your car insurance. While you may already be familiar with bundling and discounts, there are other measures you can implement to mitigate the high expense of insurance.
Bundle insurance policies
On average, combining your auto and home insurance can result in savings of around 8% on your total premiums. If you’re interested in bundling your coverage, we recommend considering one of our top providers for homeowners insurance or renters insurance to maximize your potential savings.
Increase your deductible
The deductible is the amount you are responsible for paying out of pocket before your insurance company covers the remaining damages. Opting for a higher deductible can lower your premium and lead to more affordable auto insurance rates. This can be a beneficial strategy, particularly for drivers who use their vehicles infrequently or have a lower risk of accidents.
Review your policy regularly
Reviewing your existing policy on an annual basis, prior to renewal or when significant life changes occur that impact the drivers of your vehicle, can guarantee that you have the appropriate coverage that meets your needs and fits within your budget.
Apply for discounts
Companies offer discounts to policyholders that maintain a clean driving record and drive vehicles with good safety features.
Although discounts vary from one lender to the next, they often include:
- Bundling policies with the same company
- Insuring multiple vehicles
- Taking a drivers education course
- Automatic and paperless payments
- A higher deductible
- Maintaining continuous coverage
- Safe driving
- Student driver with good grades
- Low annual mileage
- Students away at college
- Vehicle safety features
Reduce coverage on old cars
You have the option to lower your premium by removing collision or comprehensive coverage from vehicles that are 10 years or older. Additionally, you may consider eliminating collision coverage for vehicles that are not in use or kept in storage.
Consider usage-based insurance
Usage-based insurance (UBI) options consider your driving habits to determine your premium.
For instance, pay-per-mile insurance can provide savings of 20% to 40% for infrequent or short-distance drivers, while pay-how-you-drive insurance can offer discounts of up to 40% for safe driving, in addition to a sign-up discount.
However, it’s important to note that usage-based insurance programs that assess factors such as speed, acceleration, and braking can result in higher costs if you don’t practice safe driving habits.
Shop for Rates
By comparing price quotes from at least three different insurance providers, you can find the most affordable car insurance rate without compromising essential coverage. Utilizing a car insurance comparison tool will assist you in finding a provider that offers the ideal car insurance policy for your vehicle.
Obtaining rate quotes directly from insurance companies can be done online or over the phone. Additionally, some state insurance commissioners provide information on average car insurance prices in your state.
In addition to average rates, it’s crucial to consider available discounts, coverage limits, and deductible options when shopping for coverage. If you’re unsure where to begin, seeking assistance from an independent insurance agent or broker can help narrow down your options.
To explore further opportunities for savings with online insurers, take a look at our guide on the best cheap car insurance companies.
Lastly, for more ways to reduce your car insurance premiums, be sure to check out our article on lowering your auto insurance costs.
How to get car insurance
Whether you’re in the process of purchasing your first car or nearing the end of your current insurance contract, it’s wise to familiarize yourself with the steps involved in buying car insurance. Here are the key steps:
- Assess your coverage needs: Determine the type and level of coverage you require based on factors like your vehicle, driving habits, and financial situation.
- Research insurance providers: Gather information about different insurance companies, their reputation, customer reviews, and financial stability. This will help you choose a reliable provider.
- Get multiple quotes: Obtain quotes from several insurance companies to compare prices and coverage options. Consider using online comparison tools or working with an independent insurance agent for convenience.
- Evaluate coverage options: Review the coverage details of each policy, including liability, collision, comprehensive, and additional features like roadside assistance or rental reimbursement.
- Consider deductibles: Determine the deductible amount you’re comfortable with. A higher deductible generally leads to lower premium costs but means you’ll pay more out of pocket in the event of a claim.
- Check for discounts: Inquire about available discounts such as bundling multiple policies, safe driving records, vehicle safety features, or affiliation with certain organizations.
- Finalize the policy: Select the insurance policy that best meets your needs and budget. Carefully review the terms and conditions before signing the contract.
- Provide accurate information: Ensure that you provide accurate and complete information about yourself, your vehicle, and your driving history during the application process.
- Understand your rights and responsibilities: Familiarize yourself with your rights as an insured individual and your responsibilities, such as timely premium payments and reporting any changes to your insurer.
- Stay informed: Regularly review your policy and coverage to ensure it remains adequate for your needs. Be proactive in seeking updates or modifications as necessary.
Is car insurance worth it?
Car insurance is a requirement in all states, except for Virginia and New Hampshire, leaving most vehicle owners with little choice but to insure their automobiles.
Since it is mandatory, driving without insurance is considered a misdemeanor and can lead to fines ranging from $50 to $1,500, depending on your location. In certain states, it may even result in a prison sentence of up to five years. Considering the average premium is $1,190, it’s evident that obtaining car insurance is unquestionably worthwhile.
How We Chose the Best Car Insurance Companies
In our search for the best auto insurance companies, we followed a comprehensive methodology. We evaluated a total of 23 insurers, all of which were included in the NAIC’s 2021 Property/Casualty Market Share report for Private Passenger Auto and J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study.
To ensure a high level of customer satisfaction, we focused on companies with minimal complaints related to their private passenger policies, as reported by the National Association of Insurance Commissioners (NAIC).
We also prioritized nationwide auto insurers with strong financial strength ratings, generous discounts, advanced technology integration through telematics programs, and above-average customer satisfaction scores based on J.D. Power’s assessments.
In addition, we considered CRASH Network’s latest report, which involved feedback from over 1,100 automotive collision repair professionals. This report allowed us to assess insurers’ payment practices and policy handling, providing valuable insights into their overall performance.
By incorporating these various criteria, we aimed to identify the top auto insurance companies that offer a combination of reliability, competitive rates, comprehensive coverage, and excellent customer service.
In short, we focused on the following factors:
- Financial stability: An insurance company’s financial stability can be gauged by its AM Best credit rating. We chose insurers with an A rating or better.
- Discounts: Auto insurance policies that provide coverage beyond basic liability can be expensive. To address this, we selected companies that offer a wide range of bundling options and substantial discounts.
- Technology: The majority of the companies included in our list utilize automation to swiftly generate auto insurance quotes within minutes, and they also offer a convenient 24/7 claims process. Car insurance companies that enable policyholders to file claims through mobile apps received higher rankings on our list.
- Customer experience: Dealing with the process of filing a claim can be quite cumbersome. To alleviate the stress involved, we have selected companies that have received commendable customer satisfaction ratings based on the 2021 U.S. Auto Claims Satisfaction Study conducted by J.D. Power.
Car Insurance FAQ
How much is car insurance a month?
According to the latest Auto Insurance Database Report from the NAIC, the average annual cost of car insurance nationwide is $1,204, equivalent to approximately $100 per month.
It’s important to note that the actual cost of car insurance can vary significantly based on several factors. These factors include your age, location, gender, driving experience, and annual mileage. Each of these variables can influence your premium, so it’s crucial to consider them when determining the specific cost of your car insurance policy.
What is liability car insurance?
Liability car insurance provides coverage for drivers in the event of an accident for which they are at fault. It includes two main components: bodily injury liability and property damage coverage. In the majority of states, liability insurance is a legal requirement.
Bodily injury liability offers protection to drivers in situations where they are responsible for an accident, covering the medical expenses of the other driver or their passengers.
Property damage liability, on the other hand, safeguards at-fault drivers by covering the costs associated with repairing the other person’s property that was damaged in the accident.
What is comprehensive car insurance?
While the term “comprehensive auto insurance” may suggest that it offers coverage for all situations, it is often mistaken for “full coverage.” In reality, comprehensive insurance only covers damages to your vehicle that result from non-vehicle-related incidents such as theft, fire damage, hail, or vandalism.
The top car insurance companies offer what is commonly known as “full coverage,” which entails a combination of collision and comprehensive coverage. While these two policies are optional, having both of them for your car is considered being “fully insured.”
How much car insurance do I need?
In addition to meeting the state’s minimum coverage requirements, it is advisable to obtain additional liability insurance for bodily injury and property damage. This extra coverage helps protect your assets in case of an accident. Similarly, it is important to consider getting uninsured/underinsured motorist insurance for added protection.
Regarding collision and comprehensive insurance, these policies cover the expenses related to damages to your vehicle. When choosing these coverages, it is crucial to decide on the deductible amount you are comfortable with. Opting for a higher deductible will result in lower premium payments, whereas a lower deductible will lead to higher premiums.
How much is car insurance for a 16 year old?
Obtaining accurate data on car insurance rates for 16-year-old drivers is challenging due to the numerous factors that influence insurance premiums. However, it is certain that premiums for this age group are generally higher compared to others. This is primarily because younger drivers have less driving experience and statistically have a higher likelihood of being involved in accidents. As a result, insurance companies tend to charge higher premiums to offset the increased risk.
What is the best car insurance company?
The ideal car insurance company for you will be the one that aligns with your specific requirements and financial situation. However, according to Money’s evaluation, Amica Mutual emerges as the top choice for the best coverage package and boasts the highest customer satisfaction rating from J.D. Power.
In terms of customizable premiums, Progressive stands out as an excellent option, offering a wide range of choices. For younger drivers, State Farm is recognized for providing the best policies tailored to their needs.