Best Car Insurance Companies On Market
The best car insurance companies on the market don’t just offer great coverage and affordable payments.
Best Car Insurance companies on the market for 2023. They also have a simple claims process, easy-to-use technology and an excellent customer service experience.
Choosing the best auto insurance provider for you can be intimidating. That’s why we at the Home Media reviews team have done the legwork for you, narrowing down the top 10 car insurance companies in the industry. In this article, we’ll review company reputation, availability, coverage options, discounts and the customer experience, going into detail on the five best car insurance providers.
The best car insurance company isn’t necessarily the cheapest. It’s tempting to shop for a new insurance policy based on price alone, but you need a company that will be there for you when it comes time to make a claim. After all, you don’t want to choose the cheapest car insurance quote only to find that it doesn’t provide the protection you need.
Our Best Car Insurance Companies ranking uses pricing data and real customer feedback to help you find the best car insurance policy for you.
After a thoroughly researched the auto insurance market, 10 companies stood out among the competition as the best car insurance providers. When ranking these insurers, our team considered state availability, breadth of coverage, pricing and satisfaction scores from experts like J.D. Power.
Best Auto Insurance Company for Customer Service: Auto-Owners
If price is not as important for you as ensuring you’re going to get the best possible service when you need to file a claim, MoneyGeek found that Auto-Owners Insurance has the best combination of high satisfaction and low complaints. Using just these factors, Auto-Owners is the best insurer in 10 out of 50 states, more than any other company.
We also took into account AM Best financial strength ratings and complaint volume as reported by the National Association of Insurance Commissioners (NAIC). Each insurer was graded on a 10-point scale. Let’s take a closer look at the top five picks for best auto insurance companies below.
What Is the Best Car Insurance Company?
Geico
USAA
Progressive
State Farm
Liberty Mutual
AAA
The Hartford
Allstate
Nationwide
Farmers
Our picks for the best car insurance
Our top five picks for the best car insurance companies are Geico, USAA, Progressive, State Farm and Liberty Mutual.
Geico
Geico is our first choice for the best car insurance in the nation. The company offers reputable service, a wide selection of coverage and cheap car insurance rates, according to our rate estimates.
Besides the standard coverage options, Geico offers helpful add-ons such as:
Geico received an A++ (Superior) rating from AM Best, meaning the company has the financial backing to pay customers’ insurance claims. A larger auto insurer like Geico comes with more financial stability compared to a smaller, local company.
Geico also has a strong customer service reputation. According to the J.D. Power 2023 U.S. Auto Insurance StudySM, Geico performed better than average in California and the Central and New England regions. The study surveyed customers on their satisfaction with claims, billing, price, policy and more. Additionally, our January 2023 insurance survey which polled 1,000 respondents found nearly 12% chose Geico as their insurance provider.
Geico Auto Insurance
Regarding cost, Geico’s rates are some of the most affordable we’ve seen. Our rate estimates show that drivers pay about $1,350 per year on average for full coverage car insurance from Geico. These rate estimates apply to 35-year-olds with good credit and driving records. Our estimates put Geico in the top three companies for affordability compared to other national providers.
On top of that, the insurer offers a number of ways to save money, including a good driver discount (up to 26% off), a good student discount (up to 15% off) and a multi-vehicle discount (up to 25% off).
2. USAA: Low Rates for Military
USAA regularly tops J.D. Power auto insurance studies as one of the best car insurance companies in terms of customer satisfaction and value. The provider is well known for its high customer ratings and affordable coverage options, including accident forgiveness. However, it’s not No. 1 on our list due to its strict eligibility requirements.
USAA auto insurance is only available to military members, veterans and their families, which greatly restricts who can purchase coverage. If you are eligible for a USAA insurance policy, it’s one of the best options available. Beyond the standard types of car insurance, USAA offers the following optional coverage:
Roadside assistance
Rental car reimbursement
Accident forgiveness
Glass coverage
Guaranteed asset protection (GAP insurance)
Car replacement assistance (CRA)
Rideshare insurance
USAA received an A++ financial strength rating from AM Best and an A+ from the Better Business Bureau (BBB). The auto insurer made up 6.32% of the market share in 2023, according to the NAIC. Though it’s not the largest auto insurer, USAA still has reputable financial strength. In 2023, the company wrote $15.77 billion in private passenger auto insurance premiums.
USAA
While USAA does not have many physical locations, policyholders are still impressed by the company’s customer service. USAA earned the top score in the 2023 J.D. Power Auto Insurance Study in every U.S. region, though it’s unranked due to its eligibility criteria. And in our January 2023 car insurance survey, nearly 65% of the 1,000 respondents surveyed stated they were very satisfied with USAA insurance coverage, the highest of any provider.
USAA is known for its affordability as well. It offers the cheapest car insurance on average compared to any other provider we researched. Our rate estimates show good drivers pay about $1,013 per year for full coverage car insurance with USAA. The company also offers discounts based on driver safety, vehicle safety, multiple policies and safety features such as airbags and more. Best Car Insurance companies
3. Progressive: Low Rates for High-Risk Drivers
Usage-based insurance: If you are under 21, are an elderly driver or have received a DUI/DWI, Progressive may be the best car insurance option for you. We found that Progressive tends to be one of the cheapest national providers for high-risk drivers besides USAA. Our rate estimates also show safe drivers pay about $1,397 per year for full coverage insurance with Progressive, which puts it just behind Geico and State Farm for affordability.
Aside from the standard types of car insurance coverage, Progressive offers:
Roadside assistance
Rental car reimbursement
Loan/lease payoff
Custom parts and equipment value
Rideshare coverage
While Progressive has mixed customer service reviews — it scored above average in half of the regions in the J.D. Power Satisfaction Study. Our 2023 car insurance survey found 74% of Progressive policyholders are satisfied with their coverage. Further, Progressive offers strong financial stability with an A+ rating from AM Best. The company also wrote more than $33 billion in premiums in 2023, according to the NAIC.
Our team reached out to Progressive for a comment on its negative review scores but did not receive a response.
Progressive offers auto insurance discounts as well as a few tools to help lower your rates. Using a mobile app that tracks and records your driving habits, Progressive’s Snapshot program rewards safe driving behavior with discounts on premiums. On average, drivers who use Snapshot save $146 on their policies, according to Progressive. However, this program is not available in California or North Carolina.
Drivers interested in Progressive policies should also look into the Name Your Price tool. The insurer will customize a variety of coverage options based on your auto insurance budget.
What are the types of auto insurance?
Most auto insurers offer six standard types of car insurance. Based on your state’s minimum requirements, some types of auto insurance policies are mandatory. However, it’s always a good idea to purchase full coverage rather than just the state minimum coverage.
Liability car insurance: Bodily injury liability insurance (BI) covers other drivers and passengers if you are at fault in a collision, and property damage liability (PD) covers other cars or property if you are at fault in a collision.
Collision insurance: Collision coverage protects your vehicle, regardless of who is at fault.
Comprehensive insurance: Comprehensive coverage pays for damages to your vehicle caused by environmental factors, theft or vandalism.
Medical payments (MedPay): MedPay covers any medical expenses for you and your passengers after a collision.
Personal injury protection (PIP): PIP covers medical bills, lost wages and death benefits for you and your passengers, regardless of fault. Best Car Insurance companies
Underinsured/uninsured motorist coverage (UM/UIM): This type of coverage protects you if you’re in a car accident with a motorist with too little coverage or no coverage at all.
Our January 2023 car insurance survey found 67% of the 1,000 respondents polled purchased full coverage insurance, which includes a combination of liability, collision and comprehensive coverage.
How much does car insurance cost?
Car insurance prices depend on many factors, including your age, location, credit score, driving record and type of vehicle. According to our rate estimates, 35-year-old drivers with clean driving records and good credit pay between about $1,000 and $2,500 per year for full coverage car insurance.
What affects the cost of car insurance?
The cost of car insurance is influenced by a variety of factors, some of which are in a driver’s control and some of which are not. Understanding what you’re able to control can help ensure you’re getting the best insurance rate. Several factors affect your overall car insurance rates.
How to find the best car insurance rates:
Getting the most affordable car insurance rates can be tricky, especially with the amount of information drivers need to know about policies. We’ve laid out five key steps below that explain how to find the best car insurance rates for your budget. Best Car Insurance companies
1. Get auto insurance quotes
It’s always a good idea to compare car insurance quotes between companies. Based on your driver profile and the other factors we listed above, your auto insurance cost can vary greatly. Some insurance providers offer affordable rates to senior drivers, while others provide cheap car insurance for new or teen drivers. Before settling on a price, reach out to multiple auto insurers. You can compare quotes online yourself or work with an independent insurance agent to compare plans.
2. Seek out discounts
Companies offer a wide range of car insurance discounts, so look for ones that apply to your situation. For example, some providers offer better discounts for students, while others offer discounts for military and occupational affiliations. Major providers offer other insurance products such as home, renters and life insurance, so you can often find discounts for bundling policies as well.
3. Opt for a higher deductible
While it may seem burdensome at first, a higher deductible can significantly reduce your overall auto insurance costs. Ask your insurance provider which deductible options are available for your coverage plan, and play around with how each affects your premium. Keep in mind, though, that you will need to be able to pay your deductible in the event of a claim.
4. Keep your credit in check
Pay all bills on time and see if there are additional ways to improve your credit score. Paying your bills in full and keeping your credit balances low will also help increase your credit score.
5. Try telematics insurance
Telematics insurance programs provide discounts based on your driving habits. If you have a short commute and practice good driving habits, you could save money with a safe driving program or a pay-per-mile insurance program.
Which car insurance company is best for you?
The best car insurance companies can vary based on your needs and driver profile. We recommend Geico as the Editor’s Choice provider for most drivers based on its affordability, strong financial standing and positive customer service ratings.
It’s always a good idea to compare insurers. Get free car insurance quotes when you shop to find the best coverage and price for your situation.