While the best car insurance companies make it easy to get a free quote for coverage from the comfort of your home, there are additional factors to compare outside of the premiums they charge.
Not only should you compare the best auto insurance companies based on their customer service scores and ratings, but you should look at the coverage options they offer and their record on paying out claims.
In order to choose the best car insurance company for you, you’ll also want to consider your unique needs and preferences and weigh factors like financial strength and availability in your state. With all this in mind, we took the time to compare more than 20 of the best car insurance providers based on the factors that matter most. As you search for a new policy, consider getting a free quote from some of our top picks below.
862
A+
4.7 out of 5 stars
870
A+
3.7 out of 5 stars
876
A
4.7 out of 5 stars
881
A++
4.7 out of 5 stars
Our Top Picks for the Best Car Insurance of 2022
- Progressive: Best for Discounts
- Allstate: Best Overall User Experience
- GEICO: Best Mobile App
- Esurance: Best for Ridesharing
- State Farm: Best for Teen Drivers
- Liberty Mutual: Best for Customization
- USAA: Best for Military
- Amica Mutual: Best for Gap Insurance
- Auto-Owners Insurance: Best Agent Experience
- The Hartford: Best for Claims Satisfaction
Best Car Insurance – Company Reviews
While the table above shows how the best car insurance companies compare based on some popular metrics, you should know more about each of these providers and how they work. The car insurance reviews below explain the pros and cons of each auto insurance company as well as some basic information about their coverage options.
- Above-average ratings for customer satisfaction in 5 out of 11 regions profiled by J.D. Power
- Many discounts available
- Highly rated mobile app
- 24/7 customer support
- Lower than average claims satisfaction ratings from J.D. Power
Originally founded in 1937, Progressive Insurance has been offering an array of insurance options for nearly 100 years. This company is also listed as the third-largest in terms of auto insurance premiums written in 2020, with a total market share of 13.3% that year.
When it comes to Progressive auto insurance coverage, the company claims that customers who switch save an average of $700 right off the bat. This is due to its affordable premiums, but it’s also due to the variety of discounts it offers for being a good student, bundling your renters, home insurance or life insurance policies, paying your premiums in full, and more.
Progressive also offers “Name Your Price” and Snapshot tools (which help Progressive base your rate on your actual driving habits), which means almost everyone will qualify for at least one discount.
Need motorcycle coverage? Progressive tops our list for that, too!
- Online dashboard makes it easy to pay premiums, monitor claims, and more
- Allstate agents available to help guide customers through the experience
- Multiple discounts available
- Safe Driving Bonus program
- Lower than average claims satisfaction ratings from J.D. Power
- Below average ratings for customer satisfaction in 9 out of 11 regions profiled by J.D. Power
- Low-performing mobile app
Allstate has been in operation since 1931, so this provider also has a long and storied history. This company is also listed as the fourth largest in auto insurance premiums written in 2020 per the Insurance Information Institute (III), with a total market share of 10.4% that year.
Allstate makes it incredibly easy for potential customers to get a free quote online, and its seamless online claims process makes them popular with customers. It also offers many different discounts, including a DriveWise program that lets users qualify for lower premiums based on their driving history.
Finally, Allstate rewards safe drivers with a Safe Driving Bonus every six months they remain accident-free.
- Highly rated mobile app
- Many different discounts available
- Stellar website with useful tools
- Highest possible rating for financial strength
- Below average ratings for customer satisfaction in 8 out of 11 regions profiled by J.D. Power
- No gap insurance or rideshare insurance available
- Accident forgiveness unavailable in CA, CT and MA
GEICO is one of the most popular car insurance companies out there today, and it’s partly due to its robust online presence. The GEICO website has a range of useful tools and features, including the ability to start a claim and monitor policies and payments online.
The company’s mobile app also boasts some of the best ratings out there, including 4.7 out of 5 stars on Google Play and 4.8 out of 5 stars in the App Store.
In addition to its online features, GEICO is also known for the many discounts it offers. For example, GEICO lets customers save on premiums based on their employment, whether they’re military members, their safe driving history, good student status, and more. GEICO also says that new customers save an average of $500 when they switch.
- Highly rated mobile app
- User-friendly website makes it easy to get a free quote
- Many discounts available for auto insurance coverage
- No option for help from a local agent
Esurance was one of the first companies to start selling directly to the customer instead of going through an agent. While Esurance is now part of the Allstate Insurance family, it still focuses on its online presence without using local agents to sell or service their policies.
That said, the company does offer a smooth digital experience that makes it easy to customize a plan, receive quotes, manage your policy and file claims. One of the primary advantages of buying auto insurance through Esurance is that you have the control and flexibility to build a personalized policy, specific to your unique needs.
Esurance also offers rideshare insurance for individuals who drive for Uber or Lyft to earn some cash on the side. This coverage can help fill in the gaps when someone uses their personal vehicle for their side hustle.
- Highest possible rating for financial strength
- High ratings for shopping experience with J.D. Power
- Higher than average customer satisfaction ratings with J.D. Power
- Above-average ratings for customer satisfaction in 10 out of 11 regions profiled by J.D. Power
- Numerous coverage options and discounts available
- No gap insurance offered
Founded in 1922, State Farm Insurance has a history of financial stability and customer service satisfaction. According to the Insurance Information Institute, State Farm is the largest provider of private passenger auto insurance, with its total premiums written earning a 16.2% market share at last count.
Although State Farm offers online quotes and a mobile app, it’s differentiated by its ability to offer individual, personal service through its robust network of physical offices and insurance agents.
So, unlike Geico and Esurance which target the technology-savvy, hands-off type of consumers, State Farm is perfect for those who would rather drive to a local office and have their questions answered and hands held through the process, without having to navigate an app or website. This could be part of the reason State Farm earned the second-highest rating in J.D. Power’s 2021 U.S. Insurance Shopping Study.
State Farm also offers the best car insurance for young adults and teenagers by far. While most companies charge notoriously high rates for this riskier demographic, State Farm offers both a good student discount and its Steer Clear feature. Steer Clear is an app-based program for drivers under 25, which tracks driving behavior and offers mini-safety courses. After “graduating” from the program, drivers earn a substantial discount that lasts until they’re 25.
- Customize your policy so you only pay for the coverage you need
- User-friendly online platform and mobile app
- Multiple discounts and coverage options available
- Lower than average claims satisfaction ratings from J.D. Power
- Below average ratings for customer satisfaction in 7 out of 9 regions profiled by J.D. Power
Founded in 1912, Liberty Mutual is currently the sixth-largest insurer based on market share. Due to their robust online shopping tools and easy quote system, the company earned the highest rating in J.D.Power’s 2021 U.S. Insurance Shopping Study.
The company claims that new customers can save 12% off their car insurance premiums by shopping for a policy online. Liberty Mutual also offers a seamless online claims process that lets customers submit and monitor their claims from the comfort of their home.
Most importantly, Liberty Mutual lets customers choose the coverage options they want and skip the rest. This can lead to more customized car insurance coverage and premium savings to boot.
- Numerous discounts and coverage options available
- Highest possible rating for financial strength
- Highest possible ratings for shopping experience and overall customer satisfaction from J.D. Power
- Earned the highest ratings for claims satisfaction in all 11 regions profiled by J.D. Power
- Military affiliation required
If you’re fortunate enough to be a USAA member (members or former members of the United State military and their close family members), then USAA should be your first stop for auto insurance. This is partly due to their flexible coverage options and myriad discounts available, but it’s also due to the fact USAA is known for offering affordable premiums.
This insurance provider also earned the highest rating in J.D. Power’s 2021 U.S. Insurance Shopping Study.
As if that wasn’t enough, USAA has the highest possible rating for financial strength from A.M. Best, as well as top tier ratings from J.D. Power for claims satisfaction and overall customer satisfaction. USAA also makes it easy for car insurance shoppers to get a free quote and compare coverage options online.
- Many car insurance discounts available
- Strong ratings for financial strength
- Easy online quote process
- Smaller insurance footprint than some of the largest companies in our ranking
Amica Mutual is consistently rated as one of the best auto insurance companies, in industry awards and by its customers. In fact, it was near the top of this year’s J.D. Power Claims Satisfaction Survey, and the company earned the second-highest ranking among mid-size insurance companies in J.D. Power’s 2021 U.S. Insurance Shopping Study.
While the insurer’s basic coverage insurance products include personal injury protection, underinsured or uninsured motorists, property damage, and bodily injury liability — its policies include features that most competitors do not, such as no restrictions on your body shop choice as well as interior vehicle coverage.
Amica Mutual also offers the chance to purchase gap insurance, which is a type of insurance coverage many of the best car insurance companies do not offer. Other options include roadside assistance, rental reimbursement, comprehensive coverage, and collision coverage. Finally, young drivers who complete a training program, have good grades, or are full-time students away at school can also gain access to additional discounts.
- Many unique coverage options offered
- Plenty of discounts available
- Highest possible rating for financial strength
- Earned above-average ratings for claims satisfaction in two regions profiled by J.D. Power
- Above-average rating for shopping experience from J.D. Power
- Low-performing mobile app
- Lower than average claims satisfaction ratings from J.D. Power
- Agents are only available in 26 states
While Auto-Owners Insurance keeps a fairly low profile, they receive extremely high marks across the board. In fact, J.D. Power gave this car insurance company excellent ratings for claims satisfaction as well as shopping experience in 2021.
The fact that Auto-Owners Insurance has been around since 1916 should also put your mind at ease. During that time, its has consistently exhibited financial stability, with the highest possible “A++” rating from A.M. Best this year.
Auto-Owners Insurance operates on an agent-only model, favoring relationships and local business to faceless technology. In fact, it has 6,300 agents, despite only being available in 26 states. So if you’re in one of those states, there are likely multiple offices for you to choose from in your city alone.
- Highest possible rating for claims satisfaction from J.D. Power
- Special discounts for AARP members
- Easy online quote process
- Low-performing mobile app
- Car insurance is geared to AARP members
Founded in 1810, this insurance company has built an excellent reputation in the insurance space for more than 200 years. Its car insurance coverage caters specifically to AARP members, offering several features that uniquely accommodate this group.
For example, car insurance from The Hartford comes with a lifetime renewability feature, 12-month auto insurance rate protection, and personalized assistance after an accident.
The Hartford has also received the highest possible ratings for claims satisfaction, which is a crucial factor for shoppers to consider. This provider also offers optional new car replacement coverage that will replace your new car with one of the same make, model and equipment in the event of a total loss.
Car Insurance Guide
As you shop for a new insurance policy, it’s crucial to understand the inner workings of the auto insurance industry. Read on to learn more about factors that influence car insurance rates, the different types of car insurance available, how to save money on car insurance premiums, and more.
What Does Car Insurance Cover?
Auto insurance companies provide three main types of coverage to its customers:
- Property coverage that protects in the event of damage to your property (e.g. damage to or theft of your car)
- Liability coverage that can protect you financially based on your legal responsibility to others for bodily injury or property damage
- Medical coverage that can kick in to cover the cost of treating injuries, rehabilitation, lost wages, and funeral expenses
While some types of car insurance are mandatory, others are optional. Different states set their own minimum coverage options, yet the majority require a combination of bodily injury liability coverage and property damage liability coverage. Some states also require drivers to have a minimum level of uninsured/underinsured motorist coverage within their auto insurance policy.
Types of Car Insurance
If you’re curious about the types of auto insurance out there, here’s a quick rundown of the most common coverage levels.
- Liability insurance: This type of auto insurance protection covers the other person’s expenses if you cause a car accident. There are two types of liability coverage: bodily injury and property damage.
- Personal injury protection (PIP): Personal injury protection pays the medical bills for you and your passengers after an accident. It also extends to times when you’re a passenger in someone else’s car or if you’re hit by a car while walking or biking.
- Collision insurance: Collision insurance helps pay to repair or replace your vehicle after an accident. This can be damage caused by another car or an object, like a tree or fence.
- Comprehensive insurance: Comprehensive insurance coverage reimburses for repair or replacement of your vehicle after an incident that doesn’t involve another car.
- Uninsured/underinsured motorist insurance: This type of protection covers you in instances where the driver that caused a fault accident doesn’t have car insurance, or at least doesn’t have enough of it.
- Gap insurance: This optional insurance covers the difference between the amount your car is worth and the amount you still owe after a total loss.
How Much Car Insurance Do I Need?
Whether you already own a car or you’re still trying to decide how much car you can afford, it’s equally important to know how much car insurance you need. You’re legally required to purchase coverage that meets your state’s minimum insurance requirements, yet you will likely want to purchase more insurance than your state requires.
After all, you may have sufficient assets to protect, and you will want to make sure your policy limits are enough to handle any accident or situation that comes your way. You’ll also want to make sure you have sufficient coverage if you purchase a new vehicle, including gap insurance that can make you whole if you owe more than your car is worth.
Only you can decide how many car insurance coverages to purchase (and how many add-ons to include), but you should think long and hard about the consequences of having insufficient coverage. After all, many states require bodily injury liability limits as low as $25,000, and we all know that bodily injury resulting from a car accident can cost many times that much.
If you’re a high-net-worth individual who wants additional protection, you can also look into purchasing an umbrella insurance policy. This type of insurance can protect you against liability claims after you exhaust the limits on your other insurance policies.
How to Find Cheaper Car Insurance Rates
According to the National Association of Insurance Commissioners (NAIC)’s 2017-2018 Auto Insurance Database Report, the average car insurance policy cost $1,190 a year in 2018.
While there are many ways to secure the best cheap car insurance out there today, but the most important step involves shopping around for a policy. By comparing car insurance rates across multiple providers, you can see which company charges lower premiums for a similar amount of coverage.
Other steps you can take to lower the average cost of car insurance include:
- Check for car insurance discounts. Some of the best car insurance companies offer driver discounts on anything from bundled policies to good credit, zero claims, theft protection devices, pay-in-full, a clean driving record and more.
- Drive less. The less your vehicle is on the road, the less likely you are to have an accident. Car insurance companies recognize this, and many offer discounts or overall cheaper rates for low-mileage drivers as a result. Some companies also offer policyholders discounts for being a good driver, or have the option of choosing pay-how-you-drive insurance.
- Raise your deductible. Choosing a car insurance policy with a higher deductible can help you pay lower premiums throughout the year.
- Reduce coverage on older cars. Where full coverage is smart on newer cars, liability insurance coverage may be a smarter move for older, paid-off models.
- Increase your credit score. If you have poor credit (or even average), increasing your credit score can help you secure lower car insurance rates. Good credit can also help you avoid having to choose from the best bad credit car loans.
- Keep insurance costs in mind as you shop. While now may not be the best time to buy a car, you should keep car insurance premiums in mind as you look for a new vehicle.
Factors that Influence Car Insurance Premiums
If you’re hoping to save on car insurance, you should find out which areas you have some control over. With that in mind, here are some of the major factors that can lead to higher or lower average rates overall.
- Driving habits and record: Your driving history will impact your car insurance rates more than almost anything else. You can take some proactive steps here, such as a defensive driving course.
- The car you drive: As we all know, some cars (and especially new cars) cost a lot more to insure. Whether you decide to lease or buy a car, the automobile you select can impact your premiums substantially.
- Age and gender: Car insurance companies also formulate their rates based on the age and gender of covered drivers. Teens, for instance, are usually considered high-risk drivers.
- Credit history: Generally speaking, car insurance premiums are lower for drivers with good or excellent credit.
- Where you live: Some states have higher car insurance premiums overall, and factors like the neighborhood you live in can also impact your rates.
- Mileage driven: Many car insurance companies offer discounts for low mileage drivers. Meanwhile, high mileage drivers often have to pay more for coverage.
- Marital status: Drivers who are married typically qualify for lower car insurance rates than single drivers.
How We Found the Best Car Insurance Companies
For the purpose of this ranking, we only selected car insurance companies with an ‘A’ or better for financial strength rating from A.M. Best. We also looked at providers who scored the best with J.D. Power for customer satisfaction, claims satisfaction, and their overall shopping experience. Other factors we considered include mobile app access, online quote processes, full coverage options, and insurance discounts offered.
Best Auto Insurance FAQs
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Summary of the Best Car Insurance Companies
- Progressive: Best for Discounts
- Allstate: Best Overall User Experience
- GEICO: Best Mobile App
- Esurance: Best for Ridesharing
- State Farm: Best for Teen Drivers
- Liberty Mutual: Best for Customization
- USAA: Best for Military
- Amica Mutual: Best for Gap Insurance
- Auto-Owners Insurance: Best Agent Experience
- The Hartford: Best for Claims Satisfaction
The post 10 Best Car Insurance Companies of 2022 – Updated June appeared first on Good Financial Cents®.
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