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The Best Car Insurance Companies of 2024
While Travelers is the highest-rated provider overall, the best car insurance company for a specific person can vary significantly depending on one’s overall needs. In the sections below, we give you an in-depth look into each of the top auto insurance companies on our list.
Best Car Insurance Companies by State
Below you can view the best companies in each state in the table or enter your state in the tool to find the best companies in your area.
Other Car Insurance Company Reviews
If you’re shopping for insurers and need even more options to choose from, we’ve provided scores and reviews for other companies our team has reviewed:
Car Insurance Buying Guide
Our editorial team spent hundreds of hours combing through data to assess the landscape of the insurance industry. Through this research, we isolated the most important factors to consider when shopping for car insurance, each of which we highlight in detail in the sections below.
How To Find the Best Car Insurance for You
Being a top-rated national insurer doesn’t mean a car insurance company offers the best coverage for your needs and budget. With the amount of information drivers need to know about policies, finding the best car insurance for their situation can be tricky.
To find the best car insurance for you, follow these 10 steps:
1. Consider Your Timing
Shopping for coverage at the right time can impact the price of your policy. Since auto insurance rates change frequently, we recommend comparing your rates every six months to see if your current insurer is still the best fit for you.
If you belong to a high-risk driving category, it may benefit you more to shop around after your driver profile looks better to insurers. Improving your credit score and shopping three years after your most recent accident or violation can help you save more on car insurance premiums.
2. Know How Much Car Insurance You Need
Most states — except for New Hampshire — require drivers to carry car insurance to legally drive. Each state sets its own basic minimum requirements, but they usually include varying amounts of liability coverage. Additionally, some states require drivers to hold uninsured motorist coverage and personal injury protection (PIP) insurance.
Because minimum-liability policies only offer coverage for other parties and their property, we recommend you carry full-coverage car insurance to ensure you’re protected no matter what kind of situation occurs.
Read more: How Much Car Insurance Do I Need?
3. Consider Smaller Local Car Insurance Companies
National car insurance companies typically offer a greater number of add-on benefits and discounts and have better-known reputations. However, it’s good to compare large and regional companies in your area because you may get more unique coverages, better deals and a more personal customer experience with a smaller insurer.
4. Read Car Insurance Reviews
Once you know what’s available, it’s important to read reviews for the companies you’re considering to get a sense of the customer experience with each.
Check forums for local agencies to get a good idea of what customers think. You can also use industry resources such as studies from J.D. Power, NAIC complaints ratings and AM Best financial strength reports to understand each company’s reputation on a larger scale.
Instructor of business at Touro University, Angelo DeCandia, MBA, says drivers should also look into how easy it is to file a claim with a provider, as well as its customer service reputation and any helpful amenities, like mobile apps.
5. Know Where You Can Purchase Auto Insurance
Auto insurance companies sell coverage through a variety of channels. Understanding the benefits and drawbacks of each, which are highlighted in the table below, can play a major role in the price and personalization of your coverage:
| Type of Car Insurance Provider |
Main Benefit | Main Drawback |
|---|---|---|
| Online | Allows for easy quote comparison and buying online | Less personalized service |
| Brand agencies | Local expert agents can help guide you through the buying process for a particular company | Focused on selling one specific brand |
| Independent agencies | Personalized service that allows you to compare multiple companies they work with | More client-focused than brand agencies but still focused on company compensation |
| Insurance brokers | Personalized policy matching services that are purely client-focused | Transactions must be completed with your chosen company or one of their agents |
6. Get Multiple Auto Insurance Quotes
To find the highest value auto insurance, it’s always a good idea to compare car insurance quotes between multiple companies. We recommend comparing quotes from at least three insurers to find the best coverage and cost for your needs.
Ask an Expert
Assistant Professor of Marketing, Coles College of Business at Kennesaw State University
“When comparing car insurance quotes, consumers should consider coverage limits, deductibles and premiums to ensure adequate protection within budget constraints. Evaluate the insurer’s reputation for customer service, claims processing and financial stability. Examine available discounts. Assess policy features like roadside assistance and rental car coverage. Consider the insurer’s online tools and mobile apps for convenience. Lastly, check customer reviews and seek recommendations to gauge overall satisfaction with the insurer’s services.”
7. Understand How Your Driving Profile Affects Rates
Your driver profile, location and external factors like market conditions can cause rates to vary greatly. Young drivers, drivers with bad credit scores and drivers from other high-risk categories (recent accident, speeding ticket or DUI) regularly pay more for auto insurance.
8. Look for Coverage Add-Ons That Fit Your Situation
Add-on coverages allow you to customize your policy in a way that best fits your needs. These can range from add-ons like roadside assistance, which can be a worthwhile investment if you break down on the road, to accident forgiveness, which won’t increase your rates after your first car accident. Each company offers a different selection of add-ons, so look into what’s available with the companies you’re considering.
When it comes to purchasing car insurance coverage and deciding on optional coverages, Elaine Luther, D.Sc., a professor of business management at Point Park University, says, “Ultimately, it requires an assessment of what you can afford and what level of risk and/or protection you are comfortable with.”
9. Check for Available 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.
In addition to this, Emily Goenner, an assistant professor of business communications, recommends shopping often to take advantage.
“You may qualify for new discounts or changes in company ratings, so be sure to review your policies annually,” she said.
Some of the most common car insurance discounts provide savings opportunities for members of the military, those who insure multiple vehicles, full-time students who maintain at least a “B” average and drivers who go a certain amount of time without an accident or violation.
10. Try Usage-Based Car Insurance
Many companies offer telematics insurance programs that can give you up to 40% off based on your driving habits. If you have a short commute and practice good driving habits, you could also save money with pay-per-mile insurance or a safe-driving program.
You can also purchase non-owner car insurance policies to cover you if you often drive vehicles that aren’t yours. And if you’re only driving for a short period of time, you can get short-term policies anywhere from a day to a month.
11. Determine the Lowest Rate for Your Desired Coverage Level
After shopping for quotes from multiple companies, you can determine the lowest overall costs by combining the base costs available for your driving profile with available discounts that can lower the pricing even further. That said, remember that lower costs don’t necessarily mean better coverage.
Ask an Expert
Assistant Professor of Economics and Finance, Canisius University
“When comparing prices, make sure that you are comparing apples to apples. You may have one insurer who tells you that they can save you money on the premium but does so by reducing coverage.”
How Does Car Insurance Work?
Car insurance is an agreement between you and your insurance provider for specific vehicle coverage in exchange for payment. Your car insurance policy outlines what is covered and what you can file claims for.
The sections below serve as a guide to help you find the best coverage to fit your needs and budget.
Read more: What Does Car Insurance Cover?
Types of Car Insurance
There are six main types of car insurance that can make up a policy’s coverage:
| Type of Coverage | Description |
| Liability | Bodily injury liability insurance (BI) pays the medical expenses for other drivers and their passengers after an accident where you’re at fault. Property damage liability insurance (PD) covers the damages to other drivers’ vehicles after an accident where you’re at fault. |
| Collision | Collision insurance pays for damages from a collision with another vehicle or road hazard. |
| Comprehensive | Comprehensive insurance pays for damages from theft, vandalism, animals or natural disasters. |
| Medical payments | Medical payments coverage (MedPay) covers medical bills and funeral expenses for you and your passengers after an accident. |
| Personal injury protection | Personal injury protection (PIP) covers medical bills for you and your passengers after an accident. PIP can also cover lost wages. |
| Underinsured/uninsured motorist | Underinsured/uninsured motorist coverage covers your damages when you’re in an accident with a driver who is underinsured or doesn’t have any insurance. |
Car Insurance Add-Ons
Aside from the main kinds of coverage, most insurers offer optional coverages you can add to your policy. Below, we’ve detailed a complete list of what you might find in your search:
- Accident forgiveness: This optional coverage prevents your car insurance premium from increasing after an accident.
- Total loss protection: If you’re in an accident where another driver is at fault and your car is deemed a total loss, this coverage helps to replace your vehicle.
- Gap insurance: If your car is totaled and its actual cash value is less than the amount left on your loan, this insurance helps cover the difference.
- Rental car reimbursement: If your car is in the shop, this coverage helps pay for a rental car typically for up to 30 days.
- Roadside assistance: If you have a breakdown while on the road, this coverage provides roadside assistance like towing services, jump-starts, tire changes and lockout assistance.
- Mechanical breakdown insurance: This coverage is essentially an extended warranty and provides you coverage when your vehicle breaks down during regular use.
- Rideshare insurance: This plan pays for damages when using your vehicle for rideshare apps like Lyft or Uber.
- Original parts replacement: When your car is being repaired, this ensures it will only use original manufacturer parts used to make your vehicle.
- New car replacement: In the case of a total loss, you’ll get a completely new car to replace your old one.
- Classic car insurance: If you have a vintage vehicle, this allows you to insure it for an agreed value as long as you stay under a certain mileage.
- Commercial car insurance: If you use your personal vehicle for business, this will cover you for damages during commercial activities.
- Death and dismemberment: If you cause death or dismemberment in an accident, this will pay for any damages.
- Umbrella insurance: This type of coverage provides extra liability protection if you’re involved in a lawsuit that exceeds the costs of basic policies.
- Auto glass repair: When your windshield or other glass is damaged, this covers replacement and repairs.
- Valuables protection: If you have valuable items you regularly keep in your car and they’re damaged in an accident, this pays for repair or replacement costs.
- Pet coverage: If your pet is injured or killed in your vehicle during an accident, this provides you coverage up to a certain amount.
- Diminishing deductible: Paying for this add-on will allow your deductible to decrease the longer you go without a claim.
If you don’t have coverage already, we recommend getting roadside assistance, since it’s typically the most affordable to purchase with car insurance. However, whether you should purchase other add-on coverages depends on your situation and risk tolerance.
Read more: Best Roadside Assistance Plans
Car Insurance Cost
Car insurance prices depend on many factors, including your age, location, credit score (in most states), driving record and type of vehicle. To help you find the best car insurance, we’ll go into detail on rates for car insurance in each state and the factors that go into determining the price of your policy.
Car Insurance Cost by State
While car insurance rates by state will vary, your quote may also be higher or lower depending on where you live in the state. The map below features 2024 estimates for the average full- and minimum-coverage rates in each state, as well as the cheapest provider in each state.
We’ve also listed the average full- and minimum-coverage rates for each state in the table below. Click “read more” to see the full rate table.
| State | Average AnnualMinimum-Coverage Cost | Average AnnualFull-Coverage Cost |
| Alabama | $572 | $2,048 |
| Alaska | $506 | $2,116 |
| Arizona | $956 | $3,127 |
| Arkansas | $589 | $2,398 |
| California | $736 | $3,040 |
| Colorado | $750 | $3,010 |
| Connecticut | $1,293 | $3,206 |
| Delaware | $1,288 | $3,364 |
| Florida | $1,605 | $3,795 |
| Georgia | $1,256 | $2,907 |
| Hawaii | $455 | $1,581 |
| Idaho | $463 | $1,588 |
| Illinois | $823 | $3,054 |
| Indiana | $557 | $1,949 |
| Iowa | $456 | $1,994 |
| Kansas | $683 | $2,421 |
| Kentucky | $1,072 | $2,545 |
| Louisiana | $1,497 | $4,357 |
| Maine | $456 | $1,460 |
| Maryland | $1,261 | $2,943 |
| Massachusetts | $759 | $2,620 |
| Michigan | $1,640 | $4,626 |
| Minnesota | $752 | $2,463 |
| Mississippi | $563 | $2,140 |
| Missouri | $752 | $2,613 |
| Montana | $517 | $2,368 |
| Nebraska | $545 | $2,252 |
| Nevada | $1,665 | $3,870 |
| New Hampshire | $594 | $1,766 |
| New Jersey | $1,609 | $3,454 |
| New Mexico | $608 | $2,335 |
| New York | $2,490 | $8,232 |
| North Carolina | $815 | $2,271 |
| North Dakota | $490 | $2,029 |
| Ohio | $511 | $1,660 |
| Oklahoma | $710 | $3,256 |
| Oregon | $1,161 | $2,408 |
| Pennsylvania | $893 | $3,909 |
| Rhode Island | $1,084 | $2,921 |
| South Carolina | $959 | $2,519 |
| South Dakota | $443 | $2,590 |
| Tennessee | $707 | $2,237 |
| Texas | $960 | $3,156 |
| Utah | $968 | $2,451 |
| Vermont | $366 | $1,539 |
| Virginia | $726 | $2,070 |
| Washington | $661 | $2,110 |
| Washington D.C. | $870 | $2,636 |
| West Virginia | $617 | $2,308 |
| Wisconsin | $561 | $2,003 |
| Wyoming | $303 | $1,794 |
What Affects Car Insurance Costs?
Below we’ve broken down the factors that affect car insurance costs:
- Age: Drivers under the age of 25 and over the age of 55 are typically given higher insurance premiums, as these drivers are considered higher risk.
- Credit score: With the exception of California, Hawaii, Massachusetts and Michigan, those with poor credit deal with higher premiums.
- Driving history: If you have any at-fault accidents, moving violations or DUI/DWIs on your record, a car insurance policy will cost more.
- Coverage level: The higher your coverage level is, the more you’ll pay.
- Provider chosen: Provider costs for car insurance vary widely depending on their coverage, availability and more.
- Location: Coverage requirements and driving and traffic statistics for your location can cause rates to vary widely.
- Vehicle brand, model and age: The newer and more reliable your brand and car model is, the lower insurance costs will be.
- Vehicle type: In the case of an accident, insurance will pay for part repairs and replacements. Certain types of vehicles can be more costly.
- Deductible: A lower deductible leads to a higher premium.
- Gender: Male drivers are charged more in most states due to statistics showing them to be more susceptible to accidents and fatal crashes.
- Marital status: Married drivers pay slightly less than single drivers in most states due to perceived financial stability.
Ask an Expert
Assistant Professor of Economics and Finance, Canisius University
“Auto insurance is based on the driver, the vehicle and the location. The driver variables include, obviously, your driving history — including moving violations, DUIs and more — but also include things like your credit score and your status. Location is also a factor, with variables such as weather, crime and traffic coming into play.”
Why Is Car Insurance So Expensive?
From February 2023 to February 2024, car insurance rates have risen 20.5% for consumers according to the Bureau of Labor Statistics. Inflation across the country has pushed prices higher due to the lingering effects of the COVID-19 pandemic. The cost of goods has gone up 3.2% over the same period.
Stephen Yao, an assistant professor of insurance and risk management at the University of Central Arkansas, says the effects of inflation will most likely stick around:
“Once inflation is reflected in the general price levels, prices tend to stay at a higher level,” he said. “Even [a] lower inflation rate still means price levels continue to increase.”
Read more: What To Do About Rising Insurance Rates
Best Auto Insurance Companies: The Bottom Line
According to our comprehensive analysis, the 10 best car insurance companies are Travelers, State Farm, Erie Insurance, USAA, Nationwide, Geico, Liberty Mutual, American Family, Progressive and Country Financial. Each company offers a wide selection of insurance coverage options at affordable prices along with good customer service.
Car Insurance Companies: FAQ
Below are frequently asked questions about car insurance companies.
After over 800 hours of researching insurance providers, we found that Travelers, State Farm, Erie Insurance, USAA and Nationwide are the top car insurance companies. We looked into each company’s reputation, availability, coverage, cost and customer experience.
In most cases, if you can afford it, we recommend full coverage car insurance since it will give you the most comprehensive protection should you get in an accident on the road. We recommend getting quotes from Nationwide, Country Financial and Erie Insurance for this type of coverage.
State Farm is the largest and most popular car insurance company in the country, with over 18% of the market share and $57 billion in insurance premiums in 2023. However, our team found Travelers insurance to be the No. 1 auto insurance provider in the U.S. in 2024.
Our pick for the best car insurance for young drivers is Liberty Mutual due to its affordable pricing and extensive discount offerings for those 25 and under. You can also find great coverage for young drivers with American Family, Geico and Nationwide.
If you or a related family member is with the military, USAA is the best option for senior car insurance. However, if you’re not a part of this group, Geico has affordable rates, great discounts and good service for auto policies.
In all cases, USAA offers the best car insurance for military members with some of the best rates and customer service in the country. Veterans, current service members and their families also found them to be one of the most trustworthy providers on the market.
American Family is our pick for the best car insurance for families due to its generational discounts and great incentives for young drivers. If you’re not in its service area, we recommend getting quotes from Travelers and State Farm.
Nationwide has the best full-coverage car insurance options due to their low rates, plentiful options for coverage and good customer service ratings. If you’re a low mileage driver, its unique pay-per-mile program can help you save more money.
Erie Insurance is our pick for the best minimum liability car insurance due to its affordable rates and great customer service in the 12 states it serves. If you are not in these areas, you can get great policies and services from Geico.
Nationwide has the best usage-based car insurance options with the largest discount for telematics insurance among nationwide providers at up to 40%. It’s also the only provider on our list that offers a pay-per-mile program, which can help you save more.
State Farm offers the best overall car insurance customer service with the highest ratings from J.D. Power studies and good ratings in our provider satisfaction study.
American Family has the best car insurance claims service ratings based on our most recent survey data of both regional and large providers. Customers of the company also believed it was the most trustworthy and had their best interests in mind.
If you’re looking for the best car insurance coverage options, we recommend getting quotes from Progressive. As one of the largest providers, the company offers a variety of unique add-on options for pet coverage, original part replacement, and mechanical breakdown coverage.
To find the best price on car insurance, we recommend getting car insurance quotes from multiple companies. That way, you’ll know how much each provider charges. You can also employ savings strategies like signing up for car insurance discounts or bundling your auto insurance with another policy.
If you’re trying to lower your car insurance premium, we recommend looking into discounts for bundling policies, driving safely and installing vehicle safety equipment. These discounts are commonly offered by most major regional and national providers and can help you save money on your car insurance policy.
Car insurance is the most affordable for good drivers between the ages of 35 and 55. Statistically, these age groups have the lowest risk of accident, so car insurance companies charge less.
Young adults should see the cost of car insurance decrease until they reach about 25 years old. Besides that, car insurance costs vary, and there’s no guarantee they’ll go down each year. Market conditions like increasing repair costs or natural disasters can raise the cost of insurance even if your driving record hasn’t changed.
Several factors influence how much you pay for car insurance coverage, which is why each car insurance company personalizes quotes for every driver. For instance, having an at-fault accident can add around $919 to your annual rate on average, while having poor credit (in most states) or a DUI can add an average of about $1,821 or $1,423, respectively.
How We Chose The Best Car Insurance Companies
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Industry standing (20% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Cost and discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Customer experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our Team’s Experiences With Auto Insurance
We recently conducted a survey of our team members to learn how we’ve dealt with comparing auto insurers and buying coverage. About 19% of those surveyed worked with an agent to determine how much coverage they needed, while about 12% simply chose state minimum requirements.
When it comes to comparing quotes from insurers, about 31% of our team members didn’t do so before selecting a provider. Two was the most common number of insurers compared with 27%, while 19% of us compared quotes from more than three companies. A little over half of our team members (54%) bundle their auto coverage with other types of insurance.
Half of our surveyed team members used a mobile app or online portal to start their most recent auto insurance claim. The other half called either their provider or their agent directly.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
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