The best car insurance companies in 2024 are Travelers, State Farm, Erie Insurance, USAA and Nationwide according to our industry-wide research study
Discover if you are overpaying for car insurance below
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The best car insurance companies in 2024 are Travelers, State Farm, Erie Insurance, USAA and Nationwide according to our industry-wide research study
Discover if you are overpaying for car insurance below
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Auto insurance coverage is highly personalized, so the best car insurance company for you may not be the same for someone else. In this article, we at the MarketWatch Guides team will analyze through the top 10 car insurers in the country. For each, we’ll explain the various factors that make them stand out, including reputation, availability, customer experience, coverage options, and average cost data.
We found that Travelers is the best overall car insurance company in 2024. The provider offers a stellar customer service experience for policyholders, along with affordable pricing and a wide range of coverage options to fit most drivers’ needs.
After over 800 hours of research, we’ve identified the best car insurance companies. Each insurer was rated on five main factors: reputation, customer experience, coverage, availability and cost. Scores in each category were compiled and weighted to generate the overall rating we use to rank the providers.
The table below shows our ratings for the top 10 auto insurance companies. Along with the overall rating we gave each provider, the table highlights the award it was given by our team and the average annual cost of a full-coverage insurance policy from each:
Car Insurance Provider | Overall Rating | Award | Average Annual Full-Coverage Cost |
---|---|---|---|
Travelers | 9.5 | Best for Most Drivers | $1,595 |
State Farm | 9.4 | Best Customer Experience | $1,657 |
Erie Insurance | 9.4 | Best for Basic Insurance Coverage | $1,458 |
USAA | 9.2 | Best for Military Members | $1,512 |
Nationwide | 9.1 | Best for Usage-Based Insurance | $1,433 |
Geico | 9.1 | Best for Budget-Conscious Drivers | $1,596 |
Liberty Mutual | 9 | Good Programs for Young Drivers | N/A |
American Family Insurance | 9.1 | Best for Family Policies | $1,851 |
Progressive | 9 | Best for Tech-Savvy Drivers | $2,030 |
Country Financial | 8.9 | Best for High-Risk Drivers | $1,411 |
While Travelers is the highest-rated provider overall, the best car insurance company for a specific person can vary heavily depending on one’s overall needs.
Along with Travelers, we’ve identified nine other car insurance providers that are worth considering as you shop around for coverage. The sections below will give you an in-depth look into each of the top auto insurance companies on our list.
Our editorial team spent hundreds of hours combing through data to assess the landscape of the insurance industry and provide you with a complete guide to the best car insurance companies.
We’ve reviewed each provider’s coverage options, features, discounts and reputation among customers and insurance industry evaluators like J.D. Power. Our team also received cost data from Quadrant Information Services for both full and minimum coverage.
The sections below will provide an in-depth look into the factors worth considering as you shop around for the best car insurance coverage. We also offer information into our two car insurance studies completed in 2022.
Here’s a further look into the factors that influenced how we rated each of the best car insurance companies on our list:
The reputation score comes from how the company ranks in J.D. Power consumer studies as well as its Better Business Bureau (BBB rating). The BBB is an organization that evaluates a company’s business practices, licensing information, customer reviews and response to those reviews. We also factor in whether the provider is accredited by the BBB.
Customer satisfaction scores come from a mix of online reviews and survey data we’ve compiled ourselves. In particular, we look at the satisfaction scores for many auto insurance companies from our August 2022 insurance survey, which polled 6,923 policyholders.
To determine a coverage score, we first look to see whether a company provides the six standard types of car insurance. After that, we check what additional coverage the company offers. The more extensive the coverage options, the better the score in this category.
A company with a high availability score typically operates across the entire country. This score is weighted a little less for mid-sized companies that only operate in a few states, but have excellent reputations among customers.
When determining a company’s cost score, we look at average costs for a variety of driver profiles. We then compare those numbers to the national average and determine a score based on whether the company tends to be cheaper or more expensive than the national average.
Companies also get better cost scores when they offer a large variety of discounts that can apply to many kinds of policyholders, from veterans, to students to accident-free drivers.
Our cost data comes from a company called Quadrant Information Services, an analytics company that compiles insurance industry statistics from across the country. When calculating average costs for providers’ state minimum-coverage and full-coverage policies, we use data from 100 ZIP codes across each state.
Each driving profile uses either a specific example vehicle or finds the average from the use of several different vehicles. The standard profile for average costs is a 35-year-old driver with good credit and a clean driving record, unless otherwise specified.
In 2022, our research team conducted two customer satisfaction surveys about car insurance. The first looked into overall satisfaction with the pollees’ choice of car insurance company and process. The second survey focused specifically on large insurance companies. In the sections below, we’ll go into the findings of each.
In January 2022, our team of experts surveyed 1,000 people who had purchased car insurance coverage. Most of the participants had used one of the auto insurance companies cited in this article, while some used other providers.
According to the survey, 28% of policyholders shop for car insurance coverage less than once a year. Another 26% said they shopped for car insurance coverage every six months, while 25% reported shopping only once a year.
We found that most policyholders shopped for car insurance in the following ways:
In our survey, we asked participants if they had ever experienced a rate increase without an obvious cause (like an accident or ticket). Over 40% of the 1,000 respondents reported they had experienced a rate increase at some point.
Our survey found that 25% of policyholders had their insurance claims resolved within two weeks. This was followed by 24% saying their claims were taken care of in two to four weeks, while 14% reported it took longer than four weeks.
As mentioned, our August 2022 survey polled 6,923 people who have policies at larger insurance companies. We asked about their overall satisfaction, then targeted specific areas to get a more detailed view about customers’ experiences.
The table below highlights the overall ratings customers gave across five categories. The ratings are out of 5 points each.
Provider | Overall Satisfaction | Affordability | Coverage Selection | Mobile App Rating | Customer Service |
---|---|---|---|---|---|
American Family | 4.5 | 4.2 | 4.3 | 4.6 | 4.4 |
Erie Insurance | 4.4 | 3.9 | 4.1 | 4 | 4.3 |
USAA | 4.3 | 3.8 | 3.9 | 4.2 | 4.2 |
State Farm | 4.2 | 3.8 | 3.9 | 4.2 | 4.1 |
Travelers | 4.2 | 3.8 | 3.9 | 4.2 | 4.2 |
AAA | 4.2 | 3.7 | 3.9 | 4.1 | 4 |
Auto-Owners Insurance | 4.2 | 3.7 | 4 | 3.9 | 4.1 |
Geico | 4.1 | 3.7 | 3.8 | 4.2 | 4 |
Farm Bureau | 4.1 | 3.7 | 3.9 | 4.1 | 4.1 |
Nationwide | 4.1 | 3.7 | 3.9 | 4.1 | 4 |
Liberty Mutual | 4.1 | 3.8 | 3.9 | 4.1 | 4 |
Progressive | 4.1 | 3.7 | 3.9 | 4.2 | 4 |
Allstate | 4.1 | 3.6 | 3.9 | 4 | 4 |
Farmers | 4 | 3.5 | 3.7 | 3.8 | 3.9 |
Kemper | 3.9 | 3.5 | 3.4 | 3.9 | 3.8 |
When it came to claims, we first asked pollees if they’d filed a claim with their insurance company. We then asked them to rate their experience with the claims process overall. Below is a table that illustrates those responses.
Provider | Percentage Who Filed a Claim | Percentage Who Have Not Filed a Claim | Overall Claims Satisfaction |
---|---|---|---|
American Family | 67% | 33% | 4.5 |
Erie Insurance | 44% | 56% | 4.5 |
USAA | 60% | 40% | 4.3 |
State Farm | 42% | 58% | 4.2 |
Travelers | 46% | 54% | 4.4 |
AAA | 49% | 51% | 4.1 |
Auto-Owners Insurance | 56% | 44% | 4.4 |
Geico | 40% | 60% | 4.2 |
Farm Bureau | 48% | 52% | 4.1 |
Nationwide | 43% | 57% | 4.2 |
Liberty Mutual | 31% | 69% | 4.1 |
Progressive | 31% | 69% | 4.1 |
Allstate | 39% | 61% | 4.1 |
Farmers | 39% | 61% | 4 |
Kemper | 50% | 50% | 3.9 |
The sections below serve as a guide to help those who are seeking auto insurance find the best coverage to fit their needs and budget.
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 best car insurance companies in the industry offer liability coverage (covering property damages and injuries to others), damages to your own vehicle, and injuries sustained by you and your passengers.
There are six main types of car insurance that typically make up a full-coverage insurance policy.
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 a 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) also 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. |
Most states — except for New Hampshire and Virginia — require drivers to carry some car insurance in order to legally drive. Each state sets its own minimum requirements, but they usually include liability coverage. Some states require drivers to hold uninsured motorist coverage and PIP insurance in addition.
We recommend you carry full coverage car insurance as opposed to liability insurance to ensure you’re fully protected no matter what kind of situation occurs. Full coverage also includes comprehensive and collision insurance.
Aside from the main kinds of coverage, most insurers offer optional coverages you can add to your policy. These additional types of car insurance include:
Based on our research, 35-year-old drivers with clean driving records and good credit pay between about $1,000 and $2,500 per year on average for full coverage insurance. Car insurance prices depend on many factors, including your age, location, credit score (in most states), driving record and type of vehicle.
In the table below, we look at the average cost of car insurance for each of the 10 best auto insurance companies. We break those costs down into monthly and annual averages.
Car Insurance Provider | Average Monthly Cost | Average Annual Cost |
---|---|---|
Travelers | $133 | $1,595 |
State Farm | $138 | $1,657 |
Erie Insurance | $122 | $1,458 |
USAA | $126 | $1,512 |
Nationwide | $119 | $1,433 |
Geico | $133 | $1,596 |
Liberty Mutual | N/A | N/A |
American Family | $154 | $1,851 |
Progressive | $169 | $2,030 |
Country Financial | $118 | $1,411 |
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.
While car insurance rates by state will vary, your car insurance quote may also be higher or lower depending on where you live in the state. According to our rate estimates, Michigan, New York and Louisiana tend to be the most expensive states for car insurance, while Ohio, Wisconsin and Maine are generally the cheapest.
State | Minimum Liability Annual Estimate | Full Coverage Annual Estimate |
---|---|---|
Alabama | $502 | $1,775 |
Alaska | $486 | $1,685 |
Arizona | $635 | $2,008 |
Arkansas | $451 | $2,038 |
California | $602 | $2,313 |
Colorado | $566 | $2,173 |
Connecticut | $980 | $1,919 |
District of Columbia | $686 | $2,218 |
Delaware | $1,194 | $2,881 |
Florida | $1,385 | $3,244 |
Georgia | $680 | $1,973 |
Hawaii | $529 | $1,656 |
Idaho | $378 | $1,402 |
Illinois | $441 | $1,541 |
Indiana | $432 | $1,587 |
Iowa | $274 | $1,563 |
Kansas | $475 | $1,918 |
Kentucky | $682 | $2,522 |
Louisiana | $925 | $3,040 |
Maine | $380 | $1,238 |
Maryland | $901 | $1,833 |
Massachusetts | $754 | $2,430 |
Michigan | $1,360 | $3,643 |
Minnesota | $481 | $1,766 |
Mississippi | $453 | $1,658 |
Missouri | $560 | $2,104 |
Montana | $398 | $1,979 |
Nebraska | $356 | $1,871 |
Nevada | $1,283 | $2,788 |
New Hampshire | $415 | $1,362 |
New Jersey | $1,332 | $2,513 |
New Mexico | $536 | $1,943 |
New York | $870 | $2,088 |
North Carolina | $469 | $1,627 |
North Dakota | $445 | $1,916 |
Ohio | $536 | $1,599 |
Oklahoma | $516 | $2,278 |
Oregon | $953 | $1,925 |
Pennsylvania | $437 | $1,981 |
Rhode Island | $1,036 | $2,357 |
South Carolina | $701 | $1,845 |
South Dakota | $328 | $2,291 |
Tennessee | $404 | $1,524 |
Texas | $683 | $2,205 |
Utah | $732 | $1,928 |
Vermont | $310 | $1,119 |
Virginia | $545 | $1,781 |
Washington | $561 | $1,616 |
West Virginia | $604 | $2,177 |
Wisconsin | $408 | $1,694 |
Wyoming | $308 | $1,702 |
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 aren’t. Understanding what you’re able to control can help ensure you’re getting the best insurance rate.
Here are the most common factors that affect car insurance costs:
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 are variable and there’s no guarantee they 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.
Finding the cheapest 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.
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 policies.
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. Motorists can also save by adding teens and young drivers to a family policy and covering multiple vehicles on the same policy.
While it may seem burdensome at first, a higher deductible can significantly reduce your auto insurance costs. Ask your insurance provider which deductible options are available for your coverage policy, and see how each affects your premium. Keep in mind that you’ll need to be able to pay your deductible in the event of a claim.
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.
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 pay-per-mile insurance or a safe-driving program. Most insurance companies will offer a telematics program to help you save on car insurance premiums.
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.
Below are frequently asked questions about the best car insurance companies.
State Farm is the largest and most popular car insurance company in the country, holding 16.84% of the market share and $47 billion in insurance premiums in 2022. However, our team found Travelers insurance to be the No. 1 auto insurance provider in the U.S. in 2024.
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 and which offer the lowest rates. 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.
After over 800 hours of researching insurance providers, we found that Travelers, State Farm, Erie Insurance, USAA and Nationwide are the top insurance companies. We looked into each company’s reputation, availability, coverage, cost and customer experience.
Yes, USAA is only for military members, veterans and their close family members. The company’s lack of accessibility is why it ranks second in our review of the best car insurance companies, despite its high customer satisfaction scores.
Car insurance costs are based on a number of factors, all of which combine to make a highly personalized rate. If you have less than stellar credit or a driving record with multiple at-fault accidents, speeding tickets or other traffic violations, you’ll probably end up paying more for car insurance coverage.
The six main types of car insurance are liability insurance, collision insurance, comprehensive coverage, medical payments coverage (MedPay), personal injury protection (PIP), and uninsured motorist coverage.
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:
Our credentials:
*Data accurate at time of publication.