Best Car Insurance Companies: Based on extensive analysis, our data shows that USAA stands as the leading insurance company in the market. However, it is important to note that USAA’s services are exclusively accessible to a specific group of individuals and not open to the general public.
Taking this into consideration, the American Family emerges as a strong contender, securing the second-highest rating among car insurance providers, making it a favorable choice for numerous drivers.
According to our extensive evaluation of the Best Car Insurance Companies of 2023, USAA stands out as the top insurer.
Our comprehensive analysis has placed USAA at the forefront in various important aspects, including exceptional Customer Service, a high likelihood of being Recommended, and the highest probability of Policy Renewal.
While USAA secured a commendable second position in Claims Handling scores, it shares the lead with the American Family in the Customer Loyalty subcategory.
Furthermore, USAA has also claimed the No. 1 spot in our assessment of Cheap Car Insurance Companies, offering remarkably low average rates across multiple categories.
However, it is important to note that USAA car insurance exclusively caters to members of the military community. Hence, it may be beneficial for most consumers to explore alternative insurers and their offerings.
Available in all 50 states and Washington, D.C.
Rated No. 1 for customer service, based on policyholder survey
- Policies limited to members of the military, veterans, and their families
American Family, a leading car insurance provider, has secured an impressive position in our comprehensive rating. With an exceptional score of 4.3 out of 5, it claims the second spot overall, making it one of the top performers in the industry.
Achieving remarkable consistency, the American Family ranks at or near the top in the majority of subcategories examined. In terms of customer loyalty, it shares the pinnacle position, and it stands alone as the best in claims handling.
In all other aspects, the American Family remains highly competitive, finishing either second or third. While positioned in the midrange of insurance companies in terms of pricing, it secures fifth place overall in our rating of affordable car insurance providers.
Notably, the American Family has made significant strides, demonstrating the biggest improvement in ratings compared to last year, surging an impressive eight places to secure the coveted second spot in our assessment.
No. 1 in claims handling in our customer survey analysis
Received high ratings for customer service in the same survey
Only operates in 19 states
Many competitors offer lower rates
State Farm secured an impressive rating of 4.2, positioning itself at a commendable No. 3 in our comprehensive evaluation. This reputable insurance company demonstrated excellence across all subcategories considered in our ranking, particularly earning the notable distinction of being ranked No. 2 among the Best Car Insurance Companies for Seniors.
Additionally, State Farm shares the second spot with American Family in terms of exceptional Customer Service, while also holding a commendable position in a four-way tie at No. 3 in the highly significant Claims Handling subcategory.
Remarkably, State Farm boasts exceptionally competitive rates, ranking as the third-lowest among all contenders we assessed. Furthermore, the company performed exceptionally well in various rate-specific categories, including providing affordable insurance options for both teenage drivers and seniors.
Notably, State Farm emerges as one of the most economical options available to drivers who have received a speeding ticket or have been involved in an accident. Impressively, it also stands as the most reasonably priced choice for individuals who have faced the unfortunate circumstance of a DUI conviction.
Highly rated for customer service by current policyholders
Premiums are often below the national average
Policies can only be purchased through a local agent
According to our rating of the Best Car Insurance Companies of 2023-24, Geico and Nationwide share the No. 4 spot, both achieving a score of 4.1. This marks a slight decline for Geico, as it was previously tied for No. 3 last year.
However, Geico’s performance remains commendable, consistently ranking in the top half across all evaluated subcategories. Notably, the company excelled in Customer Service, Claims Handling, and Customer Loyalty, securing top-5 scores in these areas.
Moreover, Geico stands out as one of the most affordable options on our list. In our assessment of Cheap Car Insurance Companies, Geico came in at No. 2, second only to USAA, offering competitive rates in various categories, including favorable premiums for teenage drivers and those seeking minimum coverage.
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
- Drivers with a DUI have higher rates, on average than the majority of providers in our analysis
Nationwide and Geico are neck and neck, both securing the 4th position in our comprehensive rating, achieving an impressive overall score of 4.1.
Nationwide demonstrates strength in various subcategories, sharing the 4th spot with Geico in Customer Service, ranking 3rd in Claims Handling, and securing the 6th position in terms of Customer Loyalty.
Moreover, Nationwide shines in the categories of Most Likely to be Recommended and Most Likely to be Renewed, comfortably securing a spot in the top five.
However, when it comes to our evaluation of Cheap Car Insurance Companies, Nationwide falls slightly towards the middle, ending up in the 6th position overall.
Above-average scores for customer service and claims handling, based on policyholder survey
Affordable rates for drivers with poor credit
Higher rates on average for minimum coverage than competitors
- Premiums for drivers with a DUI are higher than the national average
In our comprehensive assessment of the Best Car Insurance Companies of 2023, Farmers secured the sixth position, sharing it with Travelers, Allstate, and AAA.
The company displayed notable performance, ranking fourth in our Customer Service subcategory, third in Claims Handling, and sixth in the Customer Loyalty subcategory.
However, Farmers lagged behind in the Most Likely to be Renewed subcategory, securing the last spot. It is worth mentioning that Farmers tend to offer relatively higher rates compared to other insurance providers included in our study. In our recent evaluation of affordable car insurance companies, Farmers claimed the ninth position.
Current policyholders give high marks for customer service
The majority of customers surveyed are satisfied with claims resolution
- Average annual premiums are higher than most other insurers in our analysis
In our rating, Travelers has maintained its position from last year, ranking as the sixth-best insurer alongside four other companies. Among the subcategories considered, Travelers excels in Customer Service, tying for the fourth spot.
However, it falls behind in Claims Handling, placing seventh, and in Customer Loyalty, ranking sixth. Significantly, it lags in the Most Likely to be Recommended subcategory.
One notable aspect of Travelers is its reasonable overall rates. It consistently offers premiums below the national average across all categories analyzed, including rates for teen drivers, young adult drivers, and senior drivers, as well as policies following a ticket or DUI.
The average annual rate is lower than the national average
Policyholders surveyed give it poor marks for claims handling
Allstate achieved a commendable sixth position in terms of Customer Loyalty and Most Likely to be Recommended, marking its highest ranking in any of our subcategories.
Moreover, it secured the sixth spot overall among the esteemed Best Car Insurance Companies of 2023. However, in the aspects of Customer Service, Claims Handling, and Most Likely to be Renewed, it fell behind and placed seventh or lower.
Notably, Allstate’s pricing stands on the higher end according to our evaluation. Its premiums surpass the national average across various pricing categories we thoroughly examined, encompassing premiums for both teen and senior drivers, as well as for prices following a speeding ticket or an accident.
Consequently, it is crucial for potential customers to consider these factors when making an informed decision. Additionally, in our assessment of affordable car insurance companies, Allstate ranked in the tenth position.
Easy to open a new policy, according to customer feedback
Rates are much higher than the national average
AAA has been recognized for its exceptional performance in various aspects of its services. In terms of Customer Service and Claims Handling, AAA achieved a commendable No. 10 ranking in our rankings.
Moreover, AAA stands at an impressive No. 4 position in Customer Loyalty and No. 5 in Most Likely to be Renewed. Furthermore, it has been rated No. 6 in Most Likely to be Recommended, highlighting its reputation among satisfied customers.
When considering the overall performance, AAA secures a respectable No. 6 rating, sharing this position with three other highly regarded companies, in our comprehensive assessment of the Best Car Insurance Companies of 2023.
It’s worth noting that the sample rates for AAA car insurance exceeded the national average in several categories, demonstrating their commitment to providing quality coverage and service.
Offers a variety of discounts to maximize your savings
Provides additional coverage such as gap insurance
Overall, rates are higher than the national average
Progressive ranks as the tenth-best car insurance company according to our evaluation. In terms of Customer Loyalty, it secured the tenth position. While it displayed slightly better performance in other subcategories, it still fell within the lower half of the ratings in each category.
Our analysis places Progressive in eighth position for Customer Service, seventh for Claims Handling, and ninth in terms of Most Likely to be Recommended. Furthermore, our comprehensive study revealed that Progressive’s rates exceed the national average in several categories.
Lower-than-average annual rates for drivers with poor credit or DUI
Offers a good selection of discounts
Has the second-highest rates on average for teen drivers
- Ranks last for customer loyalty, based on policyholder feedback
Types of Car Insurance
It is crucial to ascertain the specific coverage requirements before acquiring an automobile insurance policy. Presented below are seven prominent categories of car insurance, each offering distinct protection and coverage provisions.
Collision car insurance
Collision insurance provides coverage in the event of a vehicular collision, encompassing incidents where your vehicle collides with objects like other vehicles or telephone poles, resulting in damage.
Moreover, depending on the specifics of your insurance policy and the jurisdiction in which you reside, collision insurance may extend its coverage to include repairs necessitated by vehicle flips or instances of hit-and-run involvement.
Comprehensive car insurance
Comprehensive insurance serves as a safeguard for your vehicle in the event it sustains damage due to incidents other than accidents, encompassing natural disasters, fires, theft, or acts of vandalism.
Although not mandated by state law, acquiring comprehensive coverage proves advantageous, particularly if you lack the financial means to handle unforeseen repairs or potential vehicle substitution.
Full coverage car insurance
Full coverage auto insurance offers a comprehensive range of protection for your vehicle, safeguarding it against potential accidents and damages caused by external factors. Typically, these comprehensive policies encompass liability, collision, and comprehensive coverage.
Moreover, full coverage may encompass additional state-required coverage, such as uninsured/underinsured motorist coverage, personal injury protection (PIP), or medical payments (MedPay).
Gap insurance, also known as guaranteed asset protection, is designed specifically for individuals who choose to finance or lease their vehicles.
In the unfortunate event of your car being stolen or declared a total loss, gap insurance steps in to bridge the gap between the actual value of your vehicle and the outstanding balance on your loan or lease.
It is important to note that gap insurance solely focuses on covering this difference and does not extend to any other expenses related to accidents or damages.
To better illustrate this, imagine if the market value of your car is determined to be $20,000, but you still owe $24,000 on your loan.
In such a scenario, if your vehicle is declared a total loss, gap insurance would come to your aid by covering the remaining $4,000 that you would otherwise be required to pay out-of-pocket.
Liability car insurance
Liability auto insurance offers a crucial financial safeguard in cases where you are deemed legally accountable for an accident leading to bodily harm, fatalities, or property destruction.
Additionally, this coverage may extend its protection even when someone else is driving your vehicle and is found responsible for an accident. It is important to note that liability insurance requirements can vary by state, hence the necessary coverage amount may differ.
It is worth mentioning that liability insurance does not provide any compensation for damages incurred to your own vehicle.
Non-owner car insurance
In the event that you opt to utilize a borrowed, rented, or shared car, there is a possibility for you to be eligible for a non-owner car insurance policy.
This specific type of insurance offers fundamental liability coverage, which proves beneficial when you become responsible for an accident while operating someone else’s vehicle.
Additionally, it can serve as a means to reinstate your license if it has been revoked and you are required to provide proof of insurance (known as an SR-22). Worth noting is that non-owner car insurance limits typically align with the minimum car insurance requirements set by each individual state.
Uninsured motorist car insurance
Uninsured motorist coverage is a vital component in safeguarding individuals when involved in accidents with drivers who lack liability insurance or flee the scene without disclosing their insurance information.
This form of coverage is mandated in 20 U.S. states and Washington D.C., ensuring financial security for those affected.
Furthermore, it is frequently combined with underinsured motorist coverage, which provides additional protection in situations where the responsible driver’s insurance falls short of covering the total expenses incurred due to the accident.
Your car insurance premium can vary based on many of the following factors:
- Age and years of driving experience
- Car make and model
- Driving record
- Coverage selection (i.e., minimum vs. high-level coverage)
Insurers provide numerous discount options for drivers to save on their premiums. To secure an insurance policy that aligns with your budget and fulfills your requirements, it is advisable to engage in thorough market research and obtain quotes from various insurance providers.
Which car insurance is the cheapest?
According to our comprehensive evaluation of the Cheap Car Insurance Companies of 2023, USAA emerges as the most cost-effective option with its highly affordable annual premiums. Our thorough analysis of insurers reveals that the average yearly cost for a USAA policy stands at a remarkable $1,022.
This figure is substantially lower, by $525, compared to the national average annual rate. It is important to note that USAA’s car insurance policies exclusively cater to members of the military community.
Consequently, for individuals who do not qualify for USAA coverage, Geico emerges as a viable alternative offering competitive premiums. Geico boasts an annual average rate of $1,250, presenting a savings of $297 when compared to the national average.
It is crucial to bear in mind that the most effective approach for securing the most affordable rates, while also obtaining optimal coverage that aligns with your specific needs, is to engage in diligent comparison shopping.
By exploring and comparing quotes from various insurance providers, you empower yourself with the knowledge required to make an informed decision on the best car insurance option for you.
What is a car insurance premium?
Does car insurance cover theft?
If you want financial protection against vehicle theft, it is essential to include comprehensive coverage as part of your insurance policy.
This additional coverage, in addition to the basic liability and collision insurance, guarantees that you will be compensated if your car is stolen, vandalized, or suffers damage during a theft incident.
Nevertheless, it is crucial to note that comprehensive coverage does not extend to personal belongings stolen from your vehicle. In such cases, your homeowners or renters insurance policy would serve as the appropriate resource to seek assistance and potential reimbursement.