Finding the best car insurance depends on everything from the state you live in to your credit score and driving habits. We’ve made the process easy by comparing four of the best auto insurance companies and looking at their average rates.
We chose these top providers based on coverage, affordability, customer service and reputation. Our in-depth industry research includes customer feedback, reviews and our own experience with the quotes process. See our recommendations for the nation’s best cheap car insurance companies below.
4 Best Car Insurance Companies
| Best Car Insurance Companies | Best For | Overall Rating | Coverage | Price |
|---|---|---|---|---|
| #1 GEICO | Most drivers | 9.1 | 9.0 | 9.0 |
| #2 USAA | Military families | 8.9 | 8.5 | 9.0 |
| #3 Progressive | High-risk drivers | 8.9 | 9.0 | 8.5 |
| #4 State Farm | Students | 8.5 | 8.5 | 8.0 |
After performing extensive industry research, our team recognized these four providers as the best car insurance companies in the nation. Each has a strong reputation among experts, comprehensive coverage and competitive pricing. Read on to learn more about our top choices, and keep in mind that the best auto insurance provider for you will depend on many factors, including your driving history and how much coverage you need.
GEICO: Best Car Insurance Coverage Overall
GEICO is a wholly owned subsidiary of Berkshire Hathaway, and it has served customers in the insurance industry for over 80 years. GEICO is one of the most popular insurance companies to date, but is it the best auto insurance company for you?
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Strong financial and industry standing
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User-friendly mobile app
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Partnerships with Mexican insurance companies for Mexico coverage
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Good student discounts
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Local agents may not be available in your area
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Some issues with autopay and policy cancellations
GEICO Auto Insurance Coverage
GEICO policies cover accidents, liability, medical expenses, property damage, rental reimbursement and emergency roadside assistance. You can also purchase policies that cover both personal and rideshare use, as well as insurance mechanical breakdown insurance, which saves you money on major repairs that result from a defective part.
One of the things we like about GEICO is its Mexico insurance policy. The company is partnered with Mexican insurance companies like Grupo Nacional Provincial and El Aguila Compania de Seguros, so you can be insured while you drive in Mexico. You can get liability coverage up to $500,000 that covers cars, ATVs and other recreational vehicles. These policies come with their own international staff to help in an emergency.
GEICO Price
Average annual cost estimate: $1,352
GEICO prices are considered slightly above average according to J.D. Power 2021 U.S. Insurance Shopping StudySM. Getting a free, customized quote is quick but thorough. You will be asked about your annual mileage and even your school, business or government affiliations so that the quote engine can find the best discounts with your estimate. GEICO offers discounts for the following:
- Safe or defensive driving
- Good grades
- Seat belt use
- New vehicles
- Multiple vehicles
- Federal employees
- Military members
- Seniors
- Fraternity or sorority affiliations
- Alumni associations, universities and student organizations
- Air bags
- Anti-theft systems
- Accident forgiveness (for five years without an accident)
Students tend to pay much more for car insurance each month, averaging $318 per month compared to $75 per month for the general population. It’s important that students can find the best auto insurance company for their budget. GEICO discounts are especially valuable to students, who can get discounts for grades and even the university they attend.
Claims and Customer Service
GEICO has many tools customers can use to make the claims and repair process smoother and more efficient. GEICO’s Auto Repair Xpress® program, for example, provides special treatment to customers that use an Auto Repair Xpress facility. A shop representative evaluates the damage to your vehicle, arranges for repairs and updates you on the status of your claim and repairs.
Customers can also get answers to their questions at any time using GEICO’s mobile app virtual assistant. The mobile app allows you to track your maintenance schedule, manage your claims and call roadside assistance. Unfortunately, in our experience finding a local agent, the number of local agents in each state was quite small. The best way to communicate with a representative is online.
According to the J.D. Power 2021 U.S. Auto Claims Satisfaction StudySM, GEICO customers rate the fairness of claims settlements positively. The Better Business Bureau (BBB), which monitors company transparency and business practices, gives GEICO an A+ rating. Complaints to the BBB include slow communication and issues with autopay.
What Experts Say About GEICO Car Insurance
As a subsidiary of Berkshire Hathaway, GEICO comes only second to State Farm in market share and the number of direct premiums written. GEICO is a well-known insurance company due to its popular marketing campaigns.
USAA: Best Car Insurance for Military Families
USAA was established in 1922 and provides insurance products, banking and retirement services for military members and their families. The company’s services are only available to qualifying active service and veteran members and their immediate relatives. However, the company is known for its generous discounts and membership perks.
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Mileage-based plans available
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Discounts for members living on a military base
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Flexible payment plans
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Excellent claims servicing
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Strict membership restrictions
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Some benefits only available in certain states
USAA Auto Insurance Coverage
In a survey of more than 3,000 insurance customers conducted by Insure.com, USAA was ranked third overall, and 94% of customers said they would renew their USAA policy.
USAA policies include the standard coverage plans (liability, comprehensive, collision, uninsured motorist, etc.), as well as roadside assistance, rental reimbursement and accident forgiveness after five years with no accidents.
For Lyft and Uber drives, rideshare gap coverage can insure drivers while they wait for their request. However, this coverage is not available in every state.
USAA Price
Average annual cost estimate: $1,013
The J.D. Power Insurance Shopping Study gave USAA the highest score out of large insurance providers, with customers reporting a good value for the level of coverage they received. USAA ranked higher than GEICO, State Farm and Progressive for price value. To make policies more affordable for members, USAA offers a number of discounts. Members can save money if they do the following:
- Keep a clean driving record for five years
- Improve driving skills with a defensive driving course
- Complete a driver training course (for drivers under 21)
- Make good grades
- Purchase insurance for a vehicle under three years old
- Purchase insurance for two or more vehicles
- Drive a certain number of miles per year
- Store their vehicle or garage vehicle on military base
- Continue your parents’ coverage
- Maintain loyalty to USAA
Unfortunately, the quote process is limited to USAA members. If you are not a USAA member, then USAA is not the best car insurance company for you.
Claims and Customer Service
USAA sports an A+ rating from the BBB. It also received the highest score of any insurance company in the J.D. Power Auto Claims Satisfaction Study, which suggests customers have expressed overall satisfaction with the claims process.
Customers will find it easy to make and manage claims, request roadside assistance and perform other tasks using the USAA app. USAA won multiple innovation awards in 2018 due to its pilot programs and member challenges, which help to improve the customer experience.
What Experts Say About USAA Car Insurance
USAA has strong name recognition in the industry, but it ranks fifth amongst the top 10 competitors for direct premiums written and market share. Still, this is not something that should greatly deter potential customers.
To start comparing quotes, we recommend using our comparison tool:
Progressive: High-Risk Car Insurance
Progressive began offering insurance in 1937 with the mission to serve basic insurance at a lower price than its competitors. Progressive markets itself as affordable, but price isn’t the only thing that’s important when looking for the best car insurance companies. What do we think about Progressive?
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Shop based on your budget with the Name Your Price® Tool
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Deductible savings bank helps lower deductibles
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Discounts for online and paperless account management
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Custom parts coverage
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Quote engine with rate comparison
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Customers do not rate affordability above industry average
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Below average call center service
Progressive Auto Insurance Coverage
In addition to basic insurance policies (e.g., collision, comprehensive, liability, uninsured/underinsured motorist, personal injury, roadside assistance, etc.), Progressive offers rideshare policies that cover you while you wait for a trip request, rather than covering you only after you’ve accepted a request.
Progressive also offers coverage for custom parts and equipment, such as navigation systems or tire rims, up to a certain limit. Customers can also get gap insurance to cover the remainder of their loan if their vehicle is totaled.
Progressive Price
Average annual cost estimate: $1,397
Despite Progressive’s reputation for cheap insurance, customers ranked Progressive auto insurance as just average with regard to the value they get for the cost. However, customers can find an affordable rate using the competitor rate comparison tool or the Name Your Price Tool®, which allows customers to shop for policies based on what they are willing to pay.
Progressive offers basic discounts for multiple vehicles and good students, but we like the following unique discounts:
- Discounts for customers who make automatic payments
- Paperless and online sign up/quote discounts
- Discounts for being continually insured
- Accident forgiveness for customers with no accidents in three years
- Small accident forgiveness for your first accident with a claim under $500
You can also use the deductible savings bank discount to subtract $50 from your deductible for every policy period without an accident or traffic violation.
Like State Farm, Progressive also offers safe driving discounts with their own tracking app, Snapshot. You can log your trips and get tips for safer driving. As with any app that monitors your driving habits, it is possible that you can actually increase your prices. Progressive states that only two in 10 customers see their rates increase.
Claims and Customer Service
The BBB gives Progressive an A+ rating, but participants of the J.D. Power Insurance Shopping Study placed in second-to-last place for large insurers.
Progressive’s claims process is rated as average. One of Progressive’s strengths is its simple online and mobile interfaces. Customers can upload photos of damage from an accident to the mobile app and receive an electronic estimate.
What Experts Say About Progressive Car Insurance
Progressive Corp. stands at number four in industry standing with 5% of the market share, following closely behind Liberty Mutual. Progressive writes more than $33 million in direct premiums in a year. You can learn more about this insurance provider in our Progressive insurance review.
State Farm: Our First Choice for Student Drivers
State Farm opened its doors to customers in 1922 and has since become the market leader of the auto insurance industry. If you’re looking for the best car insurance company, then you may want to look at the unique coverage options and discounts available from State Farm.
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Most direct written premiums per year
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Competitive rates for insuring teens
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Policies available for rental cars and sports cars
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Multiple safe driver discounts
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Lack of discounts for longtime customers
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Local agents and repair process rated just average
State Farm Auto Insurance Coverage
Finding the best auto insurance companies often means finding comprehensive and affordable coverage for drivers and vehicles that are more difficult to insure.
With State Farm, drivers can find unique coverage that goes beyond basic collision or liability insurance. State Farm offers affordable policies for teenagers, rental cars and even sports cars – which are especially expensive to insure.
State Farm Price
Average annual cost estimate: $1,339
J.D. Power’s Insurance Shopping Study ranked State Farm prices as average among competitors. State Farm markets multiple safe driver programs that can improve rates, including Drive Safe & SaveTM and Steer Clear®.
The Drive Safe & Save app uses information from your smartphone or vehicle communication system to monitor your driving habits and deliver discounts for safer driving. Some experts believe, however, that tracking devices used by insurance companies may have greater benefits for your insurance company than for your premiums.
The Steer Clear program is a good offer for drivers under 25 that have had no violations for three years. By completing safe driver courses online, they can save even more money on their policies. State Farm also offers the following discounts:
- Good student discount
- Away-at-school discount (for students under 25 who only drive during school breaks)
- Passive restraint discount for passive restraint systems in older vehicles
- Multiple car discounts
- Multiple insurance policy discounts (bundles with home or life insurance)
State Farm’s list of customer discounts is not as long as some of the other companies on this list. However, we think that shoppers can find good rates for specialty vehicles and younger drivers.
Claims and Customer Service
Currently, there are 19,000 State Farm agents across the country ready to help. Customers give their experience dealing with their local agents of 872 out of 1,000 points in the J.D. Power Insurance Shopping Study. By comparison, the average for the large insurer category was 871 points.
Despite slightly above-average claims servicing, customers also rate the estimation process and repair process as simply average. We found that filing a claim and checking its status is very easy to do on the State Farm website. It is also easy to find a repair shop online, and Select Service can assist customers with arranging for repairs and getting a guaranteed date for completion.
The BBB currently gives State Farm an A+ rating with relatively few complaints in the past year compared to the number of customers.
What Experts Say About State Farm Car Insurance
State Farm currently has the highest percentage of market share in the auto insurance industry at 9.7%. The company has significant financial strength with more than $65 million written in direct premiums in a year.
How to Find the Best Car Insurance for You
Finding the best rate for auto insurance depends on a number of factors both in and beyond your control. Unfortunately, your rates can be higher based on your marital status, occupation, level of education and even your gender. That’s why it’s important to understand how to give yourself the best chance for an affordable rate.
How can you get the cheapest car insurance?
- Drop unnecessary coverage: Lower your insurance premium by increasing your deductible or opting out of optional policies, such as collision coverage on older cars.
- Try paying by the mile: Look for mileage-based policies if you have a short work commute or don’t drive many miles on average.
- Bundle: Combine your auto and homeowners insurance to get bundle discounts.
- Shop around: Compare multiple auto insurance quotes for similar policies across a number of companies.
- Be a good customer: Pay attention to your credit history and pay your bills on time.
- Be a good driver: Drive defensively to qualify for decreased rates or accident forgiveness.
As we mentioned above, where you live plays a major factor in the price of your annual premium. Almost every state requires some form of liability insurance, but add-on coverage like personal injury protection and uninsured/underinsured motorist coverage vary from place to place.
One way to see if you’re overpaying is by checking averages. The National Association of Insurance Commissioners (NAIC) reported the average annual cost of insurance in 2018 was $1,057. It also broke down insurance costs by state, which should give you a reference of auto insurance rates in your area.
Read to find the best car insurance rates? Fill out the online form below to start comparing quotes.
FAQ: Best Car Insurance
What is the number one car insurance company?
Our research team gives GEICO the best overall award for car insurance coverage due to the company’s competitive rates, customer satisfaction ratings and options for consumers. It offers car insurance discounts for good drivers, safety features and building policies like renters insurance.
How do car insurance companies pay out claims?
When evaluating a car accident, vehicle theft or other potential claims, the insurance agent is attempting to determine if the claim falls within the scope of the car insurance policy. If approved, the provider reimburses the policyholder up to the actual cash value (ACV) of their vehicle, minus the deductible.
Who actually has the best car insurance?
The best auto insurance policy ultimately depends on the needs of the policyholder. Some companies offer better rates for teen drivers or young motorists, or others have better rates for customers with poor credit. It also depends if you seeking full coverage or just need liability insurance, which normally means bodily injury liability and property damage liability.
Methodology
The Detroit Bureau collects data from every major car insurance provider to formulate rankings of the best insurers. Our in-depth rating system takes into account market share, coverage, pricing, estimates from Quadrant Information Systems, customer satisfaction and ratings from industry experts. Each insurer is given a weighted score in four categories, as well as an overall score out of 10.0.
We recommend auto insurance companies based on these rankings, but we also encourage you to perform your own research and compare quotes to find the best coverage.
