Best Car Insurance Companies (December 2023)
State Farm is the best large car insurance company for most drivers, based on a combination of rates, customer service ratings and financial strength.
And although Erie Insurance is not available in every state, it still stands out as the best midsize car insurance company.
Here’s a closer look at all the best car insurance companies to contact for a quote when you shop for auto insurance.
Best car insurance companies at a glance
The best car insurance for you will depend on several factors, including your driving record, age and the area where you live. We analyzed rates, satisfaction rankings and complaint data to help you start your search.
- Best large company: State Farm
- Best midsize company: Erie
- Best small company: Westfield
- Best for military families: USAA
- Best for claims: Amica Mutual
- Best complaint rating: American Family
- Best policy features: Allstate
- Best rates for drivers with a prior incident: Erie
- Best rates for drivers with bad credit: Grange
- Best rates for young drivers: Pemco
Best large company: State Farm
- Average full-coverage rate: $1,505 a year ($125 a month)
- Claims satisfaction: Very good
- Complaint rating: Good
- Financial strength: A++ (A.M. Best)
State Farm’s ability to combine low rates with high customer service scores has helped it grow into the nation’s largest car insurance company. It charges less for full coverage car insurance than every other large company — except USAA, which is only available to the military community.
Pros
State Farm consistently ranks among industry leaders in J.D. Power’s claims satisfaction rankings.
Discounts for bundling your auto and home insurance makes its rates more affordable.
State Farm’s easy-to-use website makes it easy to connect with an agent near you.
Cons
State Farm doesn’t offer accident forgiveness insurance coverage, which protects you from a rate increase after your first accident.
Best midsize company: Erie
- Average full-coverage rate: $1,289 a year ($107 a month)
- Claims satisfaction: Very good
- Complaint rating: Good
- Financial strength: A+ (A.M. Best)
Even though Erie is only available in 12 states and the District of Columbia, the company holds its own against larger competitors. In addition to offering low rates, it also ranks well for customer service. Further, its strong A.M. Best rating reflects financial stability.
Pros
Lower rates than most large and midsize companies.
Add-on coverages include protection from a rate increase after an accident.
Roadside assistance includes limited coverage for locksmith services, which many other companies don’t cover.
Cons
Only available in a limited number of states.
Best small company: Westfield
- Average full-coverage rate: $1,481 a year ($123 a month)
- Complaint rating: Very good
- Financial strength: A (A.M. Best)
Westfield provides solid nuts-and-bolts auto insurance coverage at a reasonable price in the 10 states it serves. In addition to homeowners insurance, Westfield also offers boat, RV and motorcycle insurance, which makes it easier to get discounts for bundling multiple policies.
Pros
Strong complaint rating reflects an ability to meet customer expectations.
Bundling your home and auto can get you extra perks for both policies, including gap coverage for your car and replacement cost coverage for your belongings.
Westfield’s rates for drivers with a prior ticket are also reasonable.
Cons
Only available in 10 states.
Online quotes aren’t available.
Best for military families: USAA
- Average full-coverage rate: $1,207 a year ($101 a month)
- Claims satisfaction: Very good
- Complaint rating: Average
- Financial strength: A++ (A.M. Best)
USAA serves the military community with reliable car insurance at an affordable price. The company has the highest overall customer satisfaction ratings from J.D. Power in all 11 U.S. regions.
Pros
Low rates extend to young drivers in military families.
Mileage-based insurance provides more savings if you don’t drive much or have a car you don’t use very often.
Cons
Customers don’t get an individual agent to work with on an ongoing basis.
Best for claims: Amica Mutual
- Average full-coverage rate: $2,548 ($212 a month)
- Claims satisfaction: Very good
- Complaint rating: Very good
- Financial strength: A+ (A.M. Best)
If you’re ever in an accident, you don’t want your insurance company to add to your frustration. Amica Mutual has the highest rating from J.D. Power for claims satisfaction. The ratings reflect the company’s ability to settle claims in a fair, convenient manner.
Pros
Excellent customer service ratings
Optional glass coverage provides deductible-free window repair or replacement
Cons
Amica’s rates average 69%% higher than those available from State Farm
Best complaint rating: American Family
- Average full-coverage rate: $1,920 a year ($160 a month)
- Claims satisfaction: Average
- Complaint rating: Very good
- Financial strength: A (A.M. Best)
Insurance commissioners in each state regularly review car insurance customer complaints. Those that lead to a finding of fault are called “confirmed complaints.” American Family has less than one-fifth as many confirmed complaints as typical for its size.
Pros
Well-respected company with strong customer service ratings.
Options available to bundle your auto policy with home, renters and/or motorcycle insurance.
Mileage-based MilesMyWay program allows you to save money if you don’t drive much or have a car you only drive occasionally.
Cons
American Family’s average rates are 28% higher than those available from State Farm.
Only available in 19 states. Its sister company — Connect, Powered by American Family Insurance — is available in more than 40 states and Washington D.C.
Best policy features: Allstate
- Average full-coverage rate: $2,620 a year ($218 a month)
- Claims satisfaction: Very good
- Complaint rating: Average
- Financial strength: A+ (A.M. Best)
While a low price is important for upfront savings, Allstate — the fourth largest car insurance company in the U.S. — offers policy features that may save you money down the line.
Pros
Deductible Rewards program reduces your deductible at no extra cost when you avoid claims.
Accident Forgiveness program protects you from a rate increase after your first accident.
Allstate’s pay-per-mile Milewise program can save you money if you don’t drive much or have a car you don’t drive often.
Cons
Allstate charges an average of 74% more for full-coverage car insurance than State Farm.
Best rates for drivers with a prior incident: Erie
Erie has the best full-coverage car insurance rates for drivers with a prior speeding ticket or at-fault accident.
Small and midsize companies account for 4 of the 5 best car insurance rates for drivers with either a ticket or accident. State Farm is the only large company that cracks the top five for both.
Erie’s average rate for drivers with a speeding ticket is $1,477 a year, or $123 a month, which is 37% less than the national average.
Best car insurance rates for drivers with a speeding ticket
| Company | Annual rate |
|---|---|
| Erie | $1,477 |
| Westfield | $1,481 |
| State Farm | $1,635 |
| Auto-Owners | $1,822 |
| Hanover | $2,028 |
| U.S. average | $2,347 |
Rates are for a 30-year-old male with one prior speeding ticket. Your rates may vary. U.S. average includes companies not shown in this table.
Erie’s average rate for drivers with a prior at-fault accident is $1,623 a year, which is 41% less than the national average.
Best car insurance rates for drivers with a prior at-fault accident
| Company | Annual rate |
|---|---|
| Erie | $1,623 |
| State Farm | $1,863 |
| Grange | $1,999 |
| Pemco | $2,014 |
| Westfield | $2,126 |
| U.S. average | $2,753 |
Rates are for a 30-year-old male with one prior at-fault accident. Your rates may vary. U.S. average includes companies not shown in this table.
Best rates for drivers with bad credit: Grange
Available in 13 states, Grange has the best car insurance rates for drivers with bad credit, $2,072 a year.
Small and midsize companies account for the five best car insurance rates for drivers with bad credit.
Nationally, drivers with bad credit pay an average of 86% more for car insurance than those with good credit. However, a few states, including California, Hawaii and Massachusetts, don’t allow insurance companies to factor credit into your rate.
Best car insurance rates for drivers with bad credit
| Company | Annual rate |
|---|---|
| Grange | $2,072 |
| Westfield | $2,097 |
| Hanover | $2,116 |
| Pemco | $2,302 |
| Country Financial | $2,490 |
| U.S. average | $3,508 |
Rates are for a 30-year-old male with poor credit. Your rates may vary. U.S. average includes companies not shown in this table.
Best rates for young drivers: Pemco
Pemco, only available in Washington and Oregon, has the best rates for young drivers, charging 18-year-olds an average of $896 a year for minimum-coverage car insurance.
Small and midsize companies account for the five best rates available for young drivers.
Best minimum-coverage car insurance rates for young drivers
| Company | Annual rate |
|---|---|
| Pemco | $896 |
| Hanover | $997 |
| Erie | $1,282 |
| Westfield | $1,366 |
| Country Financial | $1,401 |
| U.S. average | $2,267 |
Rates are for an 18-year-old male with no prior violations or accidents. Your rates may vary. U.S. average includes companies not shown in this table.
How to find the best car insurance company
Comparing quotes from multiple car insurance companies is a great way to find the best deal. Here are four steps to simplify the process.
Think about the coverages you need
Having a general idea of the type and amounts of car insurance you need ahead of time can help quicken the shopping process.
Consider using the declarations from your current auto policy (if you have one) as a starting point. You can share your current policy’s limits and coverages with the insurance companies you contact and see if they can give you a lower rate and/or better coverage.
As an alternative, discuss your options with an insurance agent for an initial quote. Then just shop the quote around with other companies. Quotes are free, and car insurance companies expect savvy customers to shop around.
Don’t judge car insurance companies by size alone
As you shop for car insurance, make sure to request quotes from car insurance companies of all sizes.
Large companies tend to have more resources to invest in advertising and technology. However, small and midsize companies can often offer lower rates and/or better customer-service than their larger competitors.
Compare coverages in addition to rates
As you compare quotes, account for any differences in the coverages shown in each proposal. A proposal that costs a little more than others may be a better deal if it provides a lot more coverage.
Consider car insurance company ratings
While price is important, a car insurance company’s customer-service ratings also matter.
J.D. Power’s annual U.S. auto insurance study, available online, rates car insurance companies for overall customer satisfaction.
Factors like the ease of communication with an agent and the convenience of a company’s digital platforms are also worth considering.
Sometimes, paying a little more for insurance is worth the price if the company you choose has a track record for reliable service and is easy to work with.
How much car insurance do I need?
Your state’s laws and your own financial situation are the main factors that determine how much car insurance you need.
Depending on your situation, the minimum coverages and limits that your state requires may be enough. However, the financial protection you can get by choosing higher limits and additional coverages can prove invaluable if you’re ever in a car accident.
Here are factors to consider about the different types of car insurance coverage available in most states.
Liability
Almost every state requires liability coverage, which pays for injuries and/or property damage you cause to others in a car accident.
It’s important to know that you can be held personally responsible for portions of a victim’s medical and/or car repair costs that exceed your policy’s liability limits.
If you cause a particularly severe accident, having higher liability limits can protect you from having to dip into your savings or other assets to cover these expenses.
Collision and comprehensive
Although collision and comprehensive coverage aren’t required by law, you’ll typically need both for a car loan or leased vehicle.
- Collision pays to repair damage your vehicle sustains in a collision with another vehicle or object.
- Comprehensive covers your vehicle for theft or damage from most noncollision causes, including fire, flood, falling objects and vandalism.
They’re both also worth getting if you own your car outright and it’s worth more than a few thousand dollars.
Uninsured motorist and personal injury protection
Several states require uninsured motorist (UM) coverage and personal injury protection (PIP).
- UM covers injuries you and your passengers suffer in an accident caused by a driver without insurance.
- PIP covers injuries you and your passengers suffer in an accident, regardless of fault, as well as lost wages and essential services.
- UM and PIP are available on an optional basis in most states where they’re not required.
- Medical payments (MedPay) covers medical expenses for you and your passengers. It’s often offered as an alternative to PIP and is usually optional.
Health insurance usually also covers car insurance, but deductibles and copayments can add up quickly. Depending on the cause of an accident, UM, PIP or MedPay can spare you from these expenses.
Gap insurance
You may need gap insurance if you’re upside down in your financing or lease a car.
Dealers and leasing companies offer a similar protection, but getting it from an insurance company is usually a better deal. However, not all insurance companies offer it.
Optional add-ons
Most car insurance companies also offer a variety of add-ons, including roadside assistance and rental car reimbursement. One or more of these may be worth it, depending on your needs.
Frequently asked questions
Rates, customer service ratings and financial strength are the key factors used to determine the best car insurance companies.
Since car insurance companies are secretive about their rate formulas, you’ll typically have to compare quotes from multiple companies to find the best price. Quotes are free, no-obligation estimates of the coverages and rates you are eligible to receive.
Most car insurance companies offer the same basic coverages, like liability, collision and comprehensive. Some of the best companies also offer accident forgiveness and deductible savings. Further, a few offer pay-per-mile insurance for occasional drivers.
The best car insurance companies give discounts to young drivers for getting good grades and older drivers for completing a defensive driving course.
They also offer most of the normal discounts: those for bundling your auto and home insurance, avoiding claims and driving a car with an antitheft device, among others.
State Farm is the most popular car insurance company, based on business volume, followed by Progressive and GEICO. The three companies account for 45% of the U.S. auto insurance market.
Spikes in traffic accidents and car repair costs have increased the amounts that insurance companies have had to pay out in claims in recent years. Insurance companies are passing these costs along to customers in the form of higher rates. This is making car insurance more expensive for many drivers.