Whether you’re looking to switch insurers or this is your first time picking out a policy, our picks for best auto insurance companies offer all the coverage you need.
The companies on our list all offer the five main types of coverage: collision, comprehensive, personal injury protection, liability, and uninsured/underinsured motorists coverage.
They also have a slew of discounts to help offset the cost of your monthly premium. You can lower your rate by choosing paperless billing, insuring multiple cars, taking safe driving courses and staying with the same company, among others.
We prepared a comprehensive breakdown of each company’s policies, provisions and perks to help you on the road to solid and affordable protection.
So, hop in as we review the eight best auto insurance companies for August 2022.
Why we chose it: Amica Mutual made our list for its Platinum Choice Auto policy, which lets drivers earn Advantage Points rewards and save significantly on their deductible.
Amica Platinum Choice Auto Policy is a ready-made package that includes all the basic coverage most people need, in addition to unique perks such as identity fraud monitoring.
In addition, it offers deductible-free glass coverage, rental car coverage and an Advantage Points program where drivers can earn points to reduce their deductibles or keep rates from increasing after a claim.
For drivers who prefer to pick and choose, Amica breaks down its coverage into two categories: the things you need to have and those that are nice to have. You can customize your plan to include these extras, but keep in mind that they might make a considerable difference in your premium.
These extras include: MedPay, which provides extra medical coverage for bills and funeral expenses. Collision to cover accident-related damage and comprehensive collision to fix non-accident related damage, such as from fire, natural disasters or theft.
Two important riders that Amica provides are a credit monitoring service that very few competitors offer (and Amica includes in the platinum plan) and guaranteed asset protection (GAP), which covers the “gap” between what you owe and the depreciated value of your car if it’s totaled.
As for customer satisfaction, Amica has had the highest score in the New England region for 10 years in a row in J.D. Power’s Auto Insurance Customer Satisfaction study. Amica also has a low National Association Of Insurance Commissioners (NAIC) complaint ratio (rate increases and delays in claims handling are recurring issues) and received a B+ in the 2022 CRASH report card, where mechanics rate insurers based on how they handle policies and make payments.
Why we chose it: We picked Progressive as the best car insurance for customizable premiums because its Name Your Price tool lets drivers pick coverage that fits their budget.
Customization sets Progressive apart from the rest. With the Name Your Price tool customers set a budget and Progressive creates a policy to match it. From there, policyholders can pick and choose coverage limits and deductibles.
For example, you can increase the deductible for collision coverage and save on your premium; however, note that if you’re in an accident, you’ll have to pay a higher amount before the insurance kicks in.
Among the notable add-ons Progressive offers is GAP coverage. For an extra $14 a month, this coverage pays up to 25% of the difference between the value of the vehicle and what you owe. Another valuable add-on is the custom equipment coverage that you can use to repair any accessories meant to aid mobility, a GPS system or any other customization you’ve done to the vehicle.
Progressive also covers some things that few other insurers do. One is rideshare coverage, which covers you if you work for any type of rideshare service (Uber, Lyft or even food delivery), whether you do it full time or as your side hustle. In addition to this, Progressive’s collision policy covers medical care for any injuries your pet sustains during an accident.
In terms of savings, Progressive’s telematics Snapshot program uses driving data such as acceleration, braking and distance and gives drivers a discount for safe driving behavior. It also gives customers the option of joining its deductible savings bank. This program puts $50 into savings every six months that go by without a claim until it reaches your deductible limit. Then, if you file a claim your deductible will already be paid for.
In terms of customer satisfaction and complaints, Progressive’s 862 out of 1,000 in JD. Powers Auto Claims Satisfaction Study is 20 points below the industry average and puts them second to last on the list, while its NAIC complaint index sits around the national average.
Why we chose it: We chose State Farm as the best car insurance for young drivers because it rewards teenage student drivers with a GPA of 3.0 or higher with up to 25% in savings for.
Teen drivers are the most expensive to insure, but State Farm stands out from other insurers by offering teen driver steep discounts that can offset the high premiums. With the Good Student Discount policyholders can save up to 25% if their teen driver keeps a GPA of 3.0 or higher until they turn 25. Drivers under 21 can also get a discount for taking a driver’s ed course.
Additionally, the “Student Away at School” discount helps customers save by only covering the student while at home on vacation and holidays.
State Farm is well known for its network of close to 19,000 agents across all fifty states. This makes it ideal for people who prefer more personalized service, and who prefer to have a dedicated agent they can go to with questions.
As for its policies, State Farm offers rental cars and travel expenses coverage for when you’re in an accident 50+ miles from home. Others cover road assistance if your car breaks down (i.e. you get a flat tire, need a jumpstart, or you locked your keys inside the car), whereas State Farm’s travel expenses coverage extends its roadside assistance if you’re in an accident and the accident is covered by your comprehensive and collision insurance. This pays up to $500 per loss for expenses like hotel and food, as well as a rental car while your car is in the shop.
One of State Farm’s notable discounts is the Drive Safe and Save telematics program which monitors your speed, braking and other driving factors and provides feedback on these. State Farm gives you a discount just for enrolling and once you start using the app you can get up to 30% discount for safe driving habits.
In J.D. Power’s 2021 Auto Insurance Customer Satisfaction report, State Farm was the highest ranking car insurer in the Southwest region and came in second in Texas, New York and the New England and Northwestern regions. State Farm improved its NAIC customer complaint index lowering its score from 0.71 to 0.67.
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.
Why we chose it: Farmers is our pick as the best car insurance for essential workers for its array of discounts aimed specifically at teachers, healthcare workers and other first responders.
Although Farmer’s rates aren’t the lowest on the market, it offsets these by offering policies and discounts that not many other insurers offer. One example is its Affinity discount, which gives healthcare professionals, members of certain organizations as well as active, reserve or honorably discharged military personnel.
Another notable discount is the Senior Driver discount for people over 55 (or 65, depending on the state) who take a state-approved safe driver training. This is valuable because senior drivers, like teen drivers, pay higher premiums because they’re seen as riskier to insure.
For classic car enthusiasts, Farmers offers classic and collector car insurance. With this coverage, you can protect your collectible at the car show down the road or even while abroad. Policyholders can pair this with spare parts coverage and get up to $750 for spare part repair or replacement, at no extra cost.
A drawback to Farmers is its slightly higher than average rates; however its unique offerings makes it a great option for those who are willing to spend a bit more for custom coverage.
Why we chose it: We chose Nationwide as the best for flexible policies because it offers a free yearly policy evaluation where drivers can review their coverage, ask questions, make changes and apply for discounts.
Nationwide offers a variety of standard and optional coverage to choose from. To help drivers choose the right coverage year after year, Nationwide provides the On Your Side Review, a yearly evaluation where customers can bring up questions about their policy and evaluate whether the discounts and benefits still work for them.
Nationwide offers two programs that can help you save based on your driving habits. SmartRide is a telematics program that tracks your driving (miles driven, idle time, night driving acceleration and braking) and gives you feedback to improve your driving. You get 10% off by signing up and can save up to 40% based on how safely you drive. The other program is SmartMiles which charges a base rate of $60 and a variable rate of $0.07 per mile driven every month.
Nationwide also offers the Vanishing Deductible. This discount rewards you with $100 off your deductible for each accident-free year, up to $500. So, let’s say you’ve been with Nationwide for four years without incident. If you do have an accident in your fifth year you’d pay a $100 deductible and you’ll continue to earn a yearly reward of $100 the next year.
Nationwide boasts the lowest NAIC complaint index on the list with 0.39, however its ranking on J.D. Power’s U.S. Customer Satisfaction study was below average.
Why we chose it: GEICO’s mobile app not only lets you access digital insurance cards and file claims, it also connects to CARFAX which gives you access to your vehicle’s history and check for recalls.
While the first thing that comes to mind when you think of GEICO is its gecko mascot, where its service stands out the most is its completely digital experience, which is ideal for those who would rather go online than call customer service.
With GEICO’s mobile app, policyholders can request roadside assistance, upload photos to get damage estimates as well as submit and manage their claims. It can also serve as a type of “agent in your pocket” that answers insurance-related questions and helps you stay on top of your car’s history, sending you alerts about recalls or when it’s time for maintenance.
GEICO offers all the standard types of coverage, such as bodily injury liability, collision, comprehensive, uninsured/underinsured motorist and medical coverage. Its site offers a breakdown of these along with information on limits, premiums and deductibles to help customers create a policy that fits their needs and budget.
It also offers a slew of discounts to help customers lower their rates. These are divided into four areas: vehicle equipment, driving history and habits, driver affiliation and customer loyalty. For example, their anti-theft system discount can save members up to 23% and a driver that has gone accident free for 5 years can save up to 22%.
GEICO also offers notable discounts for the military — one for being an active or retired member and one in case of emergency deployment. These can save policyholders 15% and 25% respectively. Of all the companies on our list, GEICO is one of only two who offer such discounts for military personnel.
As for third-party ratings, GEICO scored above average in almost every region surveyed by J.D. Power’s 2022 U.S. Auto Insurance Customer Satisfaction study, with the exceptions being Texas, and the Mid-Atlantic and Southeastern regions.
Why we chose it: We chose Allstate’s as the best car insurance for usage-based programs due to its Drivewise telematics feature, which helps drivers save by tracking their driving, offering feedback and rewarding them for being safe on the road.
Nowadays, the best auto insurance companies offer telematics and our top pick from among them is Allstate Drivewise. This telematics provides feedback on your driving behavior and rewards you for safe driving. Customers get 10% off just for signing up and can save up to 40% with all the combined discounts.
One of Drivewise’s notable safety features is crash detection. As the name says, it detects when you’re in an accident — regardless if you’re the driver or passenger — and sends you a notification offering to contact roadside assistance or 911.
Allstate also stands out when it comes to bundling discounts. Customers can get 10% off auto insurance and 25% off homeowners when they get both policies. In contrast with other providers, Allstate’s home insurance policies include flood protection, making bundling a very attractive alternative.
Additionally, unlike many competitors, Allstate offers coverage in Mexico for either your own vehicle or a rental while you travel. This makes them a great option for customers in Texas and other border states.
Having said that, Allstate’s low customer satisfaction scores in both J.D. Power’s 2020 studies (Claims Satisfaction and Auto Insurance Customer Satisfaction) could be cause for concern, especially because these scores haven’t improved much in the 2022 Auto Insurance Study. (Note that the 2022 Claims Satisfaction study has not been published). Customer satisfaction varies by specific location, so our advice would be to research Allstates service in your area to determine if it’s a good fit for you.
Why we chose it: Our pick for the best car insurance company for military families and veterans is USAA because it caters specifically to these groups and has one of the highest customer satisfaction ratings of all the companies we reviewed.
In J.D. Power’s 2022 Auto Customer Satisfaction Study, USAA scored the highest in all states and regions studied except California. (Note that USAA did not earn a rank because, according to J.D. Power, it doesn’t meet the study award criteria.)
Like other companies, USAA offers a variety of discounts with some unique features. These include a car storage discount for those members who store their vehicle at a military installation. In this case, customers get up to 60% off their policy and could save up to 15% on comprehensive coverage for storing their car in a military base or installation. It also offers a low-mileage discount that both stateside and deployed members can benefit from.
Another area where USAA shines is its Safepilot telematics program. By enrolling, members get an automatic 10% discount and then stand to earn up to 30% off for safe driving. However, note that Safepilot works through an app, and the latest reviews for these show a pattern of complaints describing the last update as “buggy” and frustrating to use.
Although well known for customer service, recent reviews logged with the Better Business Bureau point to a possible slump. Customers complained about problems with the claims process and inconsistent customer support.
Although USAA is one of the best providers out there for military members, we recommend you make sure that USAA’s other insurance policies are a good fit as well, for there may be other providers that offer a better bundle.
Mobile app: manage policy, get car insurance quotes, get auto ID cards and transfer funds
Erie came in as the top auto insurance company in J.D. Power’s 2022 Auto Customer Satisfaction Study in both the Mid-Atlantic and North-Central regions.
The Rate Lock feature helps Erie stand out among the rest. This unique feature freezes policyholders insurance premium year after year — even after filing a claim. We found no other provider that offers this feature.
When it comes to discounts, Erie offers similar ones to others on our list — notable among these are diminishing deductibles, first accident forgiveness and vehicle storage.
Liberty Mutual didn’t make our main list because it has one of the highest complaint ratios with the National Association of Insurance Commissioners (NAIC) from the companies we evaluated. This is not to say that its coverage is poor or lacking.
Like many other companies, Liberty Mutual offers medical expense payments, uninsured motorist, personal injury protection, liability coverage, collision and comprehensive coverage. It also offers riders such as roadside assistance, GAP coverage and rental reimbursement.
Some unique features include coverage for teachers who store valuable supplies in their cars and its lack of caps on the discounts you can accrue. It also provides a coverage calculator right on its site which you can use to determine the level of protection you want.
Travelers can give you a quote in five minutes or less, and you don’t even have to provide a driver’s license number. If you request your car insurance quote while you’re still insured with another company, you might receive a discount of up to 10% once you sign up.
Travelers’ coverage options include liability, collision, comprehensive, personal injury protection and medical expenses. It also offers additional coverage options like loan/lease GAP coverage, rental reimbursement, accident forgiveness, new car replacement and roadside assistance. Note that it only offers rideshare coverage for Uber or Lyft drivers in Colorado and Illinois.
Travelers’ didn’t make our list because it doesn’t offer car insurance in Alaska, Hawai’i, Louisiana, Michigan, South Dakota, North Dakota or West Virginia.
If you’d like to compare car insurance quotes from different companies, the QuoteWizard marketplace is a great option. Its site makes it fairly easy to compare quotes and types of coverage from the major companies, saving you the time it would take to contact each individual provider.
Do note that the quotes provided are estimates as there are many factors that affect your premium and average rates, including your vehicle make and model, location and, of course, the type of coverage you want. You’ll also have to check local and state laws to make sure your policy meets the minimum liability requirements.
QuoteWizard didn’t make our list because it’s a marketplace, not an insurance provider, therefore its quotes do not reflect the price customers will end up paying.
Spark Auto Insurance is an online marketplace where customers can compare quotes and coverage from some of the best insurance companies in the market such as Progressive, State Farm, Liberty Mutual, Travelers and Allstate.
This network of providers offers standard and optional coverage options, such as bodily injury liability, damage liability, collision, comprehensive, personal injury, medical payments and underinsured motorist, among others.
To get a quote, users need to input basic information such as their address, vehicle make and model and marital status. Spark then shows one or more results from providers that offer a policy to match their particular profile. However, when we tried to get quotes for a hypothetical customer it yielded just one result.
In this section, you will learn what auto insurance covers, the types of coverage most companies offer and what can raise (or lower) your monthly premium.
We also include a step-by-step guide on buying car insurance and explain why car insurance is worth your money.
Auto insurance helps you cover losses stemming from theft, collision and liability involving your vehicle. In simple terms, you pay premiums to an insurer, and it pays for any losses as stipulated in your policy, which generally includes damage to other vehicles and injury to the persons involved.
These policies always feature a deductible, that is, an amount you must pay out of pocket before the insurer covers the rest. These can range from $250 all the way to $2,000. Policies with higher deductibles will cost less than those with lower deductibles because you’ll assume more of the cost of repair or replacement in the event of an incident.
Car insurance does not typically cover property within your vehicle, however. For example, if someone breaks into your car and steals your laptop, the insurer will pay to replace the window and any other damage done to the car, but not the computer. In order to cover that, you would need homeowners or renters insurance.
Auto insurance is regulated at the state level, so your policy’s minimum liability limits will depend on local laws. Except for New Hampshire and Virginia, all other states require drivers to buy car insurance or pay some sort of fee if uninsured.
There are six standard components of car insurance coverage:
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.
Car insurance cost $1,204 on average in 2019 according to The National Association of Insurance Commissioners (NAIC)’s 2018-2019 Auto Insurance Database Report. However, this can vary greatly depending on a wide range of factors. In fact, the NAIC explicitly mentions that state-to-state comparisons are difficult to make because of the high degree of variability on insurance requirements and other factors.
While your driving record and the type of car you drive influence your premium, there are other factors that affect what you pay for car insurance. Broadly speaking, the higher the risk you seem to present for an insurer, the higher the premium will be.
Here are some of the factors that will determine your premium.
On average, bundling can save you 8% on your combined premiums. Consider one of our best homeowners insurance providers if you’re looking to bundle auto and home.
The deductible is the portion of damages you’ll have to pay out of pocket before the insurance company pays the rest.
Reassessing your current policy annually before renewal, or whenever you make life changes that affect who is driving your car, can ensure you’re getting the type and level of coverage you need and can afford.
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:
You can reduce your premium by dropping collision or comprehensive coverage on vehicles that are 10 years or older. Similarly, you might consider dropping collision coverage on vehicles you don’t use or have in storage.
Usage-based insurance (UBI) options take into account your current driving habits to establish your premium.
For example, pay-per-mile insurance can help infrequent or short-distance drivers save 20% to 40%, while pay-how-you-drive insurance could help good drivers save up to 40%, plus a discount for signing up.
Usage-based insurance options that measure how fast you drive, how quickly you turn and how abruptly you break could end up costing you more if you don’t drive safely.
Shopping around and comparing price quotes from at least three different insurance providers can help you get the cheapest car insurance rate, without sacrificing important coverage. Using a car insurance comparison tool can help match you with a provider that offers the best car insurance policy for your vehicle.
You can get rate quotes directly from insurance companies online or over the phone. Some state insurance commissioners also provide information on average car insurance prices in your state.
Besides average rates, consider available discounts, coverage limits and deductible options when shopping for coverage. If you don’t know where to start, an independent insurance agent or broker could help you narrow down your choices.
If you want to read more about savings opportunities with online insurers, read our guide to the best cheap car insurance companies.
Finally, check out our article on how to lower your car insurance premiums for more ways to save on auto policies.
To purchase car insurance, you need your driver’s license and vehicle registration. You will also need a copy of your existing insurance declaration page if the vehicle is already insured.
Read our article on How to Buy Car Insurance for more information on what you need to know before signing on the dotted line.
Even if you’re happy with your insurance coverage, you should review your policy annually to make sure the coverage and discounts still fit your lifestyle and driving habits. If you’re interested in switching, take a look at Money’s guide on how to switch car insurance.
Some reasons you might consider switching are:
To find the best auto insurance companies, we vetted 23 insurers, all of which were featured on the NAIC’s 2020 Property/Casualty Market Share report for Private Passenger Auto as well as J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study.
Weonly considered companies with few complaints against their private passenger policies as reported by the National Association of Insurance Commissioners (NAIC).
We also prioritized nationwide auto insurers with superior financial strength ratings, ample discounts, technology integration through telematics programs and above-average customer satisfaction scores from J.D. Power.
Finally, we looked at CRASH Network’s most recent report which rates insurers based on feedback from 1,100 automotive collision repair professionals, taking into account payment practices and policy handling.
In short, we focused on the following factors:
Car insurance is designed to cover vehicle repair costs and medical expenses for you and your passengers in case of an accident.
Some policies also pay for expenses related to injuries or property damage caused to others or if you’re in an accident caused by someone who doesn’t have insurance or has insufficient coverage.
Full coverage auto insurance refers to a combination of liability, collision and comprehensive coverage. These coverage options financially protect drivers from damages to their vehicle, injuries to passengers, and any damages to other cars and their occupants.
The best car insurance company for you will be the one that best fits your needs and budget.
That being said, Money’s top pick for the best coverage package is Amica Mutual, which also garnered the highest overall customer satisfaction rating with J.D. Power.
We also consider Progressive to have the best offerings for customizable premiums and State Farm to have the best policies for younger drivers.
AutoCar insurance is mandatory in all states with the exception of Virginia and New Hampshire, so most car owners don’t have much of a choice in whether to insure their vehicle.
Since it’s mandatory, driving while uninsured is considered a misdemeanor and will result in a fine of anything between $50 to $1,500 depending on the state. It can also result in jail time of up to five years in some states. Given that the average car insurance premium is $1,190, it’s easy to see how it’s definitely worth it.
Liability car insurance covers drivers in the event of an at-fault accident. In most states, this type of coverage is a requirement. Liability insurance consists of bodily injury liability and property damage liability coverage.
Bodily injury liability protects drivers if they’re at fault for an accident by covering the medical expenses of the other driver or their passengers.
Property damage liability, on the other hand, protects at-fault drivers by covering the cost of the other person’s property repairs.
Although comprehensive auto insurance sounds like it provides coverage for everything, the truth is the name can be misleading because it is often confused with “full coverage.”
However, comprehensive insurance only covers damage to your car that results from something other than a vehicle, such as theft, damage from fire, hail or vandalism.
The best car insurance companies provide what’s called “full coverage,” which refers to the combination of collision and comprehensive coverage. Although these two policies are optional, cars with both policies are considered “fully insured.”
There are a variety of ways you can try to lower your monthly car insurance rate. To start, you can compare quotes from multiple insurers. Asking friends and family for feedback on insurers that worked for them can also be useful.
Finally, pay special attention to the insurer’s discounts, and which ones apply to you. If you’re a safe driver or don’t drive often, a usage-based insurance program could also help you save. Finally, you can also lower your monthly premium by increasing your deductible.