Car insurance is something you need but hope you’ll never have to use. In the event that your vehicle is damaged or you cause damage to a third party’s car, you’ll be glad you chose the best company and the right policy. Depending on your coverage, it can also also pay for medical bills, funeral expenses, legal fees and more.
That’s why selecting the right car insurance company goes beyond getting the cheapest premium; it’s about having peace of mind that you select the best company to support you when you need it.
We’ve reviewed over 30 car insurance providers analyzing their performance in customer service, claims handling, and customer loyalty to ensure you receive comprehensive insights, helping you make the best decision.
Key Takeaways:
- USAA leads in customer service with a 73% satisfaction rate and a 63% recommendation rate within the military community.
- Part of choosing the best company is knowing the type of insurance you need. You want to familiarize yourself with different coverage options to determine which provide adequate coverage.
- Insurer pricing varies so comparing car insurance quotes helps you find the best company for your budget.
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USAA is the No. 1 insurance company, based on our data, but it’s not available to members of the general public. For many drivers, No. 2-rated American Family may be the best car insurance company’s
USAA »
- Average Annual Rate:$1,022
PROS:
Available in all 50 states and Washington, D.C.
Rated No. 1 for customer service, based on policyholder survey
CONS:
Policies limited to members of the military, veterans, and their families
USAA is the No. 1 insurer in our rating of the Best Car Insurance Companies. Our results placed the company at No. 1 in many subcategories we looked at, including Customer Service, Most Likely to be Recommended, and Most Likely to Be Renewed. USAA finished second to American Family in the Claims Handling scores, and is tied with American Family in the Customer Loyalty subcategory.
The company also finished No. 1 in our rating of Cheap Car Insurance Companies, with low average rates in multiple categories.
USAA car insurance is only available to members of the military community, so most consumers will want to learn more about what other insurers have to offer.
SEE FULL REVIEW »
American Family »
- Average Annual Rate:$1,383
PROS:
No. 1 in claims handling in our customer survey analysis
Received high ratings for customer service in the same survey
CONS:
Only operates in 19 states
Many competitors offer lower rates
American Family, which finished No. 2 in our overall rating of the best car insurers with a score of 4.3 out of 5, is at or near the top in most of the subcategories we included. The company is tied for No. 1 in Customer Loyalty, and stands alone at the top of the rating for Claims Handling. In all other subcategories, American Family finished either second or third. The company falls squarely in the midrange of insurers in terms of pricing, finishing at No. 5 overall in our rating of Cheap Car Insurance Companies.
American Family showed the biggest improvement in the ratings over last year, moving up eight places to No. 2 overall.
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State Farm »
- Average Annual Rate:$1,279
PROS:
Highly rated for customer service by current policyholders
Premiums are often below the national average
CONS:
Policies can only be purchased through a local agent
State Farm, with a score of 4.2, finished at No. 3 in our rating. The company performed well in all of the subcategories we covered in our ranking, including being rated No. 2 in Best Car Insurance Companies for Seniors. State Farm ties with American Family at No. 2 for Customer Service, and is in a four-way tie at No. 3 in the Claims Handling subcategory.
State Farm’s rates are the third-lowest we found overall, and the company performed well in multiple rate-specific categories, including the cost of insurance for teen drivers and seniors.
It’s one of the cheapest companies on average for drivers after a speeding ticket or an accident, and the cheapest after a DUI.
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Geico »
- Average Annual Rate:$1,250
PROS:
Offers some of the lowest annual rates on average among other companies in our rating
Scores well for claims handling, customer loyalty, and customer service, based on policyholder feedback
CONS:
Drivers with a DUI have higher rates, on average, than the majority of providers in our analysis
Geico, with a score of 4.1, is tied with Nationwide at No. 4 in our rating of the Best Car Insurance Companies. That’s one spot lower than last year, when the company was in a three-way tie at No. 3. Geico finished in the top half of every subcategory included in our rating, including top-5 scores for Customer Service, Claims Handling, and Customer Loyalty.
It is also one of the cheapest car insurance companies on the list. Geico finished No. 2 overall, behind only USAA, in our rating of Cheap Car Insurance Companies, with affordable rates in a number of categories, including low premiums for teen drivers and for drivers seeking minimum coverage.
SEE FULL REVIEW »
Nationwide »
- Average Annual Rate:$1,473
PROS:
Above-average scores for customer service and claims handling, based on policyholder survey
Affordable rates for drivers with poor credit
CONS:
Higher rates on average for minimum coverage than competitors
Premiums for drivers with a DUI are higher than the national average
Nationwide is tied with Geico at No. 4 in our rating, with an overall score of 4.1. The company is tied at No. 4 in the Customer Service subcategory, tied at No. 3 in the Claims Handling subcategory, and tied at No. 6 for Customer Loyalty. It finished in the top five in the categories of Most Likely to be Recommended and Most Likely to be Renewed.
In our rating of Cheap Car Insurance Companies, Nationwide finished near the middle, at No. 6 overall.
SEE FULL REVIEW »
Farmers »
- Average Annual Rate:$2,078
PROS:
Current policyholders give high marks for customer service
Majority of customers surveyed are satisfied with claims resolution
CONS:
Average annual premiums are higher than most other insurers in our analysis
Farmers is tied at No. 6 in our overall rating of the Best Car Insurance Companies, along with Travelers, Allstate, and AAA. The company is tied at No. 4 in our Customer Service subcategory, at No. 3 in Claims Handling, and at No. 6 in the Customer Loyalty subcategory. Farmers finished last in the Most Likely to be Renewed subcategory.
Farmers typically offers some of the highest rates on average in our study, and finished ninth in our most recent rating of cheap car insurance companies.
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Travelers »
- Average Annual Rate:$1,355
PROS:
Average annual rate is lower than the national average
CONS:
Policyholders surveyed give it poor marks for claims handling
Travelers maintains its position from last year in our rating: No. 6, where it’s tied with four other insurers. The highest spot Travelers occupies in any of the subcategories included in our rating is a tie at No. 4 in Customer Service. It finished seventh in Claims Handling, sixth in Customer Loyalty, and last in the Most Likely to be Recommended subcategory.
Travelers has reasonable overall rates, with premiums below the national average in all of the categories we studied, including prices for teen drivers, young adult drivers, and senior drivers, along with the cost of policies following a ticket or DUI.
SEE FULL REVIEW »
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Allstate »
- Average Annual Rate:$2,135
PROS:
Easy to open a new policy, according to customer feedback
CONS:
Rates are much higher than the national average
Allstate finished sixth in both Customer Loyalty and Most Likely to be Recommended, the highest spot it occupied in any of our subcategories. It was also rated No. 6 overall among the Best Car Insurance Companies. In the subcategories of Customer Service, Claims Handling, and Most Likely to be renewed, it placed seventh or lower.
The company is among the most expensive in our rating, with its premiums higher than the national average in each pricing category we studied, including for teen and senior drivers, and for prices after a speeding ticket or an accident. In our rating of cheap car insurance companies, it was No. 10.
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AAA »
- Average Annual Rate:$1,958
PROS:
Offers a variety of discounts to maximize your savings
Provides additional coverage such as gap insurance
CONS:
Overall, rates are higher than the national average
AAA was rated No. 10 in two of our ranking’s subcategories, Customer Service, and Claims Handling. But the company ties for the No. 4 spot in Customer Loyalty and the No. 5 position in Most Likely to be Renewed. It is also rated No. 6 in Most Likely to be Recommended.
Overall, AAA is the No. 6-rated company (in a four-way tie) in our rating of the Best Car Insurance Companies.
Sample rates for AAA car insurance were higher than the national average in a number of categories.
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Progressive »
- Average Annual Rate:$1,540
PROS:
Lower-than-average annual rates for drivers with poor credit or DUI
Offers a good selection of discounts
CONS:
Has the second-highest rates on average for teen drivers
Ranks last for customer loyalty, based on policyholder feedback
Progressive is No. 10 in our rating of the best car insurance companies. In the Customer Loyalty subcategory, it finished No. 10. In other subcategories it performed a bit better, but was still in the bottom half of the ratings for each. Our analysis has Progressive at No. 8 for Customer Service, No. 7 for Claims Handling, and No. 9 in Most Likely to be Recommended.
Our study also found that Progressive’s rates are higher than the national average in a number of categories.
SEE FULL REVIEW »
USAA is the best car insurance company, based on our analysis. However, because USAA is not available to members of the general public, No. 2 American Family may be the best choice for many drivers. State Farm, Geico, and Nationwide are also among the top companies in our rating.
However, the best car insurance company for you will depend on multiple factors, including your age, location, driving record, as well as the features that are most important to you, whether that’s excellent customer service, a notable reputation, or efficient claims handling.
Part of our analysis includes a survey of current policyholders for each of our top car insurance companies. Read on to see how existing customers rated their car insurance providers in a number of customer service-oriented categories.
Best for Customer Service: USAA, American Family, and State Farm
USAA is ranked No. 1 in the Customer Service subcategory, while American Family and State Farm are tied at No. 2.
Our survey found that over 73% of USAA customers who have not filed a claim consider themselves completely satisfied with the customer service provided by the company. That number drops to 53% among USAA customers who have filed a claim. Since USAA’s car insurance policies are only available to members of the military community and their families, most customers will want to consider other insurers in our rating.
More than 65% of American Family customers who have not filed a claim expressed total satisfaction with the level of customer service provided, and the number is just under 58% among policyholders who have filed a claim. Those numbers among State Farm customers who responded to our survey are roughly 60% and 54%, respectively.
Nationwide, Geico, Travelers, and Farmers tied at No. 4 in this subcategory.
Best for Claims Handling: American Family
American Family is rated No. 1 in the Claims Handling subcategory with a score of 4.3, edging out No. 2 USAA, which earned a score of 4.2. Our survey results show that over 61% of American Family policyholders consider themselves completely satisfied with the ease of filing a claim, and 56% are completely satisfied with how their claims were resolved.
More than half of American Family’s customers, just under 52%, expressed complete satisfaction in regard to status updates they received from the company while their claim was in progress.
After American Family and USAA, there is a four-way tie at No. 3 in this subcategory between State Farm, Farmers, Geico, and Nationwide. Progressive, Travelers, and Allstate tie at No. 7, and AAA is at No. 10.
Most Likely To Be Recommended: USAA and American Family
USAA is the No. 1 insurer in the Most Likely to be Recommended subcategory, finishing ahead of American Family at No. 2. Our survey shows that 63% of USAA policyholders who have not filed a claim are very likely to recommend the company to others looking for car insurance. Among USAA customers who have filed a claim, that number falls to roughly 59%. USAA sells its car insurance products exclusively to members of the military community, so most people in the market for insurance will need to explore policies from other companies.
Just over 40% of policyholders with American Family who have not filed a claim say they are very likely to recommend the insurer to someone looking for a policy, while just over 62% of those who have filed a claim say they’re very likely to offer a recommendation.
Other companies likely to be recommended by their customers include State Farm, Nationwide, and Geico, the companies that are tied at No. 3 in our rating in this subcategory.
Most Likely To Be Renewed: USAA and American Family
Asked whether they would renew their policy with USAA, over 69% of customers who have not filed a claim said they are very likely to do so, according to our survey results. When policyholders who have filed a claim were asked the same question, the numbers didn’t move much: More than 66% described themselves as very likely to renew. Those results helped USAA attain the No. 1 rating in the Most Likely to be Renewed subcategory.
The No. 2 company in this subcategory, American Family, also did well in our survey of consumers. Among those who haven’t filed a claim, roughly 65% were very likely to renew with American Family, and among those who have filed a claim, the number increased, to over 68%.
Nationwide and State Farm are tied at No. 3 in this subcategory. Geico is No. 5.
Best for Customer Loyalty: USAA and American Family
USAA and American Family are tied at No. 1 in the Customer Loyalty subcategory. Both companies performed well in our survey when it came to the willingness of their policyholders to recommend them. USAA and American Family also finished No. 1 and No. 2, respectively, in the Most Likely to be Renewed subcategory. Nationwide and State Farm tied at No. 3, and Geico was rated No. 5.
Choosing the right car insurance is an important decision and there are various factors that will shape what coverage is right for you. Here are tips for identifying the best insurance coverage to meet your needs:
- Understand Your State’s Laws. Stay up-to-date with the regulations and laws governing car insurance in your state. Depending on where you live, your minimum car insurance requirements will vary.
- Check Customer Reviews. Read what other people are saying about insurance companies. This feedback can give you a good idea about the company’s customer service, reliability, and claims processing.
- Customize Your Coverage. Make sure your insurance coverage fits your needs. When you know what you need you can avoid having too much or too little protection.
- Adapt to Life Events. As your life changes, so should your insurance. New life events such as getting married or adding a teen driver to your policy may change the insurance coverage you need. Shop around to find the best insurance coverage for your changing lifestyle.
- Lender Requirements. If you’re financing a vehicle, know what insurance your lender requires you to maintain on your vehicle. Most lenders require you purchase comprehensive or gap insurance coverage to protect their financial interest.
| STATE/CITY | OVERALL AVERAGE RATE |
| Alabama | $1,354.00 |
| Alaska | $1,294.00 |
| Arizona | $1,626.00 |
| Arkansas | $1,814.00 |
| California | $1,782.00 |
| Colorado | $1,663.00 |
| Connecticut | $1,567.00 |
| Delaware | $2,231.00 |
| Florida | $2,551.00 |
| Georgia | $1,432.00 |
| Hawaii | $1,241.00 |
| Idaho | $992.00 |
| Illinois | $1,266.00 |
| Indiana | $1,190.00 |
| Iowa | $1,215.00 |
| Kansas | $1,486.00 |
| Kentucky | $2,104.00 |
| Louisiana | $2,734.00 |
| Maine | $949.00 |
| Maryland | $1,468.00 |
| Massachusetts | $1,399.00 |
| Michigan | $2,305.00 |
| Minnesota | $1,460.00 |
| Mississippi | $1,505.00 |
| Missouri | $2,055.00 |
| Montana | $1,525.00 |
| Nebraska | $1,569.00 |
| Nevada | $1,913.00 |
| New Hampshire | $1,530.00 |
| New Jersey | $1,706.00 |
| New Mexico | $1,530.00 |
| New York | $1,808.00 |
| North Carolina | $1,165.00 |
| North Dakota | $1,300.00 |
| Ohio | $1,083.00 |
| Oklahoma | $1,638.00 |
| Oregon | $1,281.00 |
| Pennsylvania | $1,395.00 |
| Rhode Island | $1,831.00 |
| South Carolina | $1,813.00 |
| South Dakota | $1,577.00 |
| Tennessee | $1,264.00 |
| Texas | $1,716.00 |
| Utah | $1,407.00 |
| Vermont | $1,053.00 |
| Virginia | $1,280.00 |
| Washington | $1,285.00 |
| Washington, DC | $1,727.00 |
| West Virginia | $1,532.00 |
| Wisconsin | $1,145.00 |
| Wyoming | $1,341.00 |
*Rates are based on average sample quotes for male and female drivers ages 25, 35, and 60 who drive 12,000 miles per year, have medium coverage, good credit, and a clean driving record.
Before purchasing a car insurance policy, it’s important to determine exactly what type of coverage you’ll need. Below are the seven major types of car insurance and what they cover.
Collision car insurance
Collision insurance covers you when your vehicle “collides” with something else, such as another vehicle or telephone pole, and the resulting damage from the collision. Depending on your insurance policy and location, collision insurance may also cover repairs if you flip your vehicle or are involved in a hit-and-run.
Comprehensive car insurance
This type of insurance protects your vehicle if it is damaged by something other than an accident, such as a natural disaster, fire, theft, or vandalism. Comprehensive insurance coverage is not usually required by state law, but purchasing a policy may be beneficial, especially if you don’t think you could cover the costs of an unexpected repair or possible vehicle replacement.
Full coverage car insurance
Full coverage car insurance is a combination of coverage that protects your vehicle in case of an accident or damages from outside circumstances. Most commonly, full coverage policies include liability, collision, and comprehensive coverage. In addition, full coverage could also include coverage required by your particular state, such as uninsured/underinsured motorist coverage, personal injury protection (PIP), or medical payments (MedPay).
Gap insurance
Guaranteed asset protection, or gap insurance, is for drivers who finance or lease their vehicles. If your car is stolen or totaled, gap insurance covers the difference between your car’s value and your outstanding lease or loan balance. It does not cover any other accident-related costs.
For example, let’s say the actual cash value of your vehicle is $20,000, but the balance on your loan is $24,000. Should your car get totaled, gap insurance would cover the remaining $4,000 you’d otherwise pay out-of-pocket.
Liability car insurance
Liability car insurance coverage provides financial protection if you’re legally responsible for an accident that resulted in bodily injury, death, or property damage. It may also apply if someone else is driving your vehicle and is at fault for an accident. Typically, liability insurance is required by state law, however, the amount of coverage you need can vary. Note that liability insurance does not cover damages to your own vehicle.
Non-owner car insurance
If you borrow, rent, or share a car with someone else, you may qualify for a non-owner car insurance policy. This type of insurance provides basic liability coverage if you’re driving someone else’s vehicle and are at fault for an accident. It can also cover you if you’ve lost your license and require proof of insurance (SR-22) to reinstate your license. Non-owner car insurance limits usually match each state’s minimum car insurance requirements.
Uninsured motorist car insurance
Uninsured motorist coverage, which is required in 20 U.S. states and Washington D.C., provides financial protection if you’re in an accident with a driver who does not carry liability insurance or leaves the scene of the accident without providing their insurance information. Uninsured motorist coverage is often bundled with underinsured motorist coverage, which protects you if you’re in an accident and the at-fault driver doesn’t have enough insurance to fully cover the damage they caused.
According to our most recent analysis, the average annual cost for car insurance is $1,547, or about $127 per month. Remember that car insurance premium rates are highly individualized and based on several considerations, so you could pay more or less than the average.
| COMPANY | AVERAGE MONTHLY RATE* | AVERAGE ANNUAL RATE* |
| 1. USAA | $85 | $1,022 |
| 2. American Family | $115 | $1,383 |
| 3. State Farm | $107 | $1,279 |
| 4. Geico | $104 | $1,250 |
| 4. Nationwide | $123 | $1,473 |
| 6. Farmers | $173 | $2,078 |
| 6. Travelers | $113 | $1,355 |
| 6. Allstate | $178 | $2,135 |
| 6. AAA | $163 | $1,958 |
| 10. Progressive | $128 | $1,540 |
*Rates are based on average sample quotes for male and female drivers ages 25, 35, and 60 who drive 12,000 miles per year, have medium coverage, good credit, and have a clean driving record.
Your car insurance premium can vary based on many of the following factors:
- Location. Factors such as traffic congestion, crime rates, and the likelihood of being in an accident can impact how much you pay for car insurance.
- Age and Years of Driving Experience. Insurance companies often consider your age and the number of years you’ve been driving to determine your risk level. Insurers believe drivers who are older and have more experience behind the wheel are less likely to be in an accident so they tend to charge them lower insurance premiums.
- Gender. Insurance companies may use gender to calculate your premiums. This is common practice based on statistics that show men are riskier drivers which may result in them paying higher rates than women.
- Car Make and Model. The make, model, and year of your car can make a difference in how much you pay for insurance. Factors such as safety features and costs for repairs may also be a consideration
- Driving Record. Maintaining a clean driving record may result in lower premiums. Insurance companies look at your driving history, including accidents, traffic violations, and claims to determine how much you’ll pay for car insurance.
- Coverage Selection. The coverage you choose makes a difference in your insurance costs. Opting for higher-level coverage such as comprehensive, medical payments, rental car reimbursement, or gap insurance is going to cost more than just selecting a liability policy.
There are many ways for drivers to save through discounts offered by insurers. Ultimately, the best way to find a premium that fits within your budget — and a policy that suits your needs — is to shop around and compare quotes from multiple insurers.
The amount of insurance you need depends on several factors. One of the most important indicators of how much coverage you may need is state requirements. Most states have laws that require drivers to carry a minimum amount of liability coverage. Some states also require drivers to carry other types of insurance, such as uninsured motorist coverage or personal injury protection (PIP).
The next thing to consider is any lender or lessor requirements. If you make monthly payments on your vehicle, your loan or lease agreement specifies how much coverage you need to carry. Refer to your lender, lessor, or financing agreement.
For more tips on getting the right amount of car insurance, read the “How Much Car Insurance Do I Need?” guide.
Outlook on Car Insurance Rates
Car insurance rates have been on the rise — and this trend is likely to continue.
Inflation has caused an increase in the cost of vehicle repairs, which has played a significant role in rate hikes. Modern cars, equipped with advanced technology and complex electronics, are far more expensive to fix. These elevated costs result in pricey insurance claims – an expense ultimately passed on to consumers.
Additionally, there has been an uptick in distracted driving incidents, often related to smartphone use, as well as other risky driving habits that lead to more accidents and claims. Finally, climate change is a contributing factor, as severe weather events are damaging more vehicles, leading to increased claims and, consequently, higher insurance premiums.
Looking ahead, rising costs of medical care related to accidents and potential changes to legislation regarding insurance policies could further contribute to this ongoing increase in insurance rates.
