Best Car Insurance Companies for May 2024

Choosing the right auto insurer can save you hundreds of dollars per year.

Marcos Cabello

Based in Boston, Marcos Cabello is a personal finance reporter for NextAdvisor and CNET. Marcos has covered cryptocurrency, investing, banking, and the US economy, among other personal finance subjects. If you don't find Marcos behind his computer screen, you'll probably find him behind another screen, playing the newest Nintendo Switch title, streaming the latest TV show or reading a book on his Kindle.

Marc Wojno

Senior Editor

Marc is senior editor at CNET Money, overseeing such topics as banking and home equity. He’s been a writer and editor in the financial field for more than two decades, including for such media organizations as The Kiplinger Washington Editors, U.S. News & World Report, Bankrate and Dow Jones. Before joining CNET Money, Wojno was Senior Editor of Finance for ZDNet, writing on blockchain, cryptocurrency, finserv, investing and taxes. Outside the digital world, Marc can be found spinning vinyl, threading reel-to-reel tapes, shooting film with his Bolex and hosting an occasional pub quiz.

CNET staff -- not advertisers, partners or business interests -- determine how we review the products and services we cover. If you buy through our links, we may get paid.

Geico

Marcos Cabello

Based in Boston, Marcos Cabello is a personal finance reporter for NextAdvisor and CNET. Marcos has covered cryptocurrency, investing, banking, and the US economy, among other personal finance subjects. If you don't find Marcos behind his computer screen, you'll probably find him behind another screen, playing the newest Nintendo Switch title, streaming the latest TV show or reading a book on his Kindle.

Marc Wojno

Senior Editor

Marc is senior editor at CNET Money, overseeing such topics as banking and home equity. He’s been a writer and editor in the financial field for more than two decades, including for such media organizations as The Kiplinger Washington Editors, U.S. News & World Report, Bankrate and Dow Jones. Before joining CNET Money, Wojno was Senior Editor of Finance for ZDNet, writing on blockchain, cryptocurrency, finserv, investing and taxes. Outside the digital world, Marc can be found spinning vinyl, threading reel-to-reel tapes, shooting film with his Bolex and hosting an occasional pub quiz.

CNET staff -- not advertisers, partners or business interests -- determine how we review the products and services we cover. If you buy through our links, we may get paid.

From national carriers to regional boutique insurers, hundreds of insurance companies compete for your business -- from billboards advertisements and television commercials, to online ads and mass mailings. With so many choices to select from, how do you weigh your options and decide which company is right for you? That’s what we’re here to answer.

Finding the best car insurance company, policy and price hinge on a variety of factors -- and the vehicle you drive and the state you live in also play a role in how much you’ll pay for car insurance coverage. The average annual premium for full coverage is $1,771, according to Bankrate, but most of our top car insurance picks have average premiums that are hundreds of dollars less. 

If you want to make sure you have the best car insurance coverage and rates possible, here are our recommendations for the best auto insurance companies.

Quick look: Best car insurance providers compared

*Overall average annual premiums for full coverage are $1,771.

**Industry average is 880.

***A.M. Best financial strength rating scale runs from D (lowest) to A++ (highest).

Best car insurance companies

Geico

The top-scoring auto insurance provider overall was Geico, reporting high customer satisfaction levels in all regions of the country. This insurance carrier is also ranked among the cheapest car insurance coverage providers (and a premium can be a huge expense). Its customers give it superior ratings for great service and support, along with some of the most reasonable insurance prices.

Geico’s clever commercials have made it one of the best-known car insurance companies in the country, and it ranks high in overall customer satisfaction and auto claims satisfaction, according to J.D. Power surveys. It receives fewer consumer complaints than other major insurers, and has the highest financial strength rating from A.M. Best. That is, if you need something besides the gecko to convince you.

Check out our full review on Geico Auto Insurance.

Travelers Insurance

Travelers offers car insurance policies that you can customize based on your needs. Rather than upselling users, Travelers offers a host of resources (in the form of blog posts) designed to educate motorists prior to purchasing coverage. An informed customer is a happy customer.

Like most of the companies on this list, Travelers offers savings on insurance bundles, giving you up to 13% off home and car policies under the same roof. So, if you’re able to bundle your auto and homeowners or renters insurance, you can save a pretty penny. Travelers also offers discounts for safe driving, multicar policies, becoming a loyalty member, having hybrid and electric vehicles, paying on time, completing driver training programs and being a good student.

USAA

If we were judging solely on satisfaction, the United Services Automobile Association would take the top spot among our best list here. What affects the USAA’s ranking is that its scope is narrower than those of most other auto insurers, as the company only offers coverage to service members, veterans and their families.

That said, USAA is one of the most cost-effective insurers out there, offering prices that even beat Geico’s. Customers who switch save an average of $725 a year. Also, if you bundle home and auto insurance (or renters and auto insurance), you can save up to 10%.

The Hartford

The Hartford is an insurance carrier offering superb coverage and excellent customer care, but it isn’t for all drivers. The Hartford’s car insurance plan is exclusively for drivers who are members of the American Association of Retired Persons.

AARP members get a plethora of benefits, including insurance discounts (up to 10% off your premium), lifetime car repair assurance, car replacement if you total your car, as well as “recover care,” which will pay up to $2,500 for transportation, cooking and cleaning if you’re injured in a car accident and can’t perform such tasks.

Amica

Founded in 1907 in Rhode Island, Amica is the oldest mutual car insurer in the US and completely owned by its policyholders. An excellent choice for New England residents, Amica has outstanding financial strength and high customer satisfaction scores, particularly when it comes to auto claims.

This insurer does it all, from flood, condo and life insurance to auto, home, retirement and small business coverage. It offers full coverage for an average premium of $1,495 per year, coming out below the $1,700-plus industry average for full coverage, according to Bankrate. This carrier doesn’t operate in Hawaii.

State Farm

Though its premiums are in line with the industry average, State Farm tops the field in customer service and claims satisfaction, earning consistently high scores from J.D. Power’s regional auto insurance customer satisfaction study.

Progressive

Progressive’s Snapshot telematics program tracks driver habits in real time, and awards discounts for good driving. The company offers a wide range of coverage options and add-ons including loan/lease payoff coverage and roadside assistance. Progressive’s average annual full coverage premium ranks in the middle of the pack, however, and its J.D. Power claims satisfaction score falls below the industry average.

Nationwide

Nationwide’s mobile app has high ratings on Apple’s App Store and Google Play, reflecting solid customer satisfaction with the digital experience. Though the company’s average annual full coverage premium is lower than the industry average, it’s more expensive than other companies on this list. And its claims service score is below the industry average, though just slightly.

Allstate

Allstate’s average full coverage premium is significantly higher than the other companies on our list. That’s due, at least partially, to the company’s accommodation of high-risk drivers. It offers an SR-22 -- a document that some high-risk drivers must file with the DMV, certifying that they carry the minimum required insurance. Allstate received a high J.D. Power score for claims satisfaction and an A.M. Best score of A+ (Excellent) for financial strength. The company also offers a telematics program that allows policyholders to earn discounts for safe driving.

Erie

In addition to low premiums and solid claims satisfaction scores, Erie is known for offering a wide array of coverage options. That includes new car replacement, motorcycle coverage, roadside assistance and rental car insurance bundles as well as some interesting packages and features; the Erie Auto Plus program includes a diminishing deductible and coverage for transportation if your vehicle gets totaled.

Note that Erie only offers auto insurance to residents of 12 states: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and Wisconsin, plus the District of Columbia.

How to choose an auto insurance provider

If you’re looking for an insurance provider, follow these steps:

How does auto insurance work?

Auto insurance is a financial product that helps you pay for damages to your vehicle and medical expenses in the event of an accident. As a policyholder, you pay a premium (monthly or annually) for coverage. Your premium is priced according to specific factors including your driving history, where you live and what kind of vehicle you drive. Auto insurance typically features a deductible, which is the amount you’ll have to pay out of pocket for repairs and medical expenses before your insurance kicks in.

What does auto insurance cover?

It depends on the type of policy. You can buy a comprehensive policy or a basic one and add options such as roadside assistance. 

Different types of auto insurance coverage

Mandatory minimum coverage

A minimum amount of liability car insurance is required in most states. It’s usually called minimum coverage car insurance, and it consists of the following provisions:

The amount of bodily injury liability and property damage liability protection needed varies by state.

Some states also require two other types of coverage:

Optional full coverage

If you want to drive, you’ll need state-mandated insurance coverage. But that typically doesn’t cover any damage to your car in an accident. Coverage for that will require an additional policy or add-on. And if your car is financed, your lender may require you to carry full coverage car insurance, which includes comprehensive coverage and collision coverage.

Add-on coverage

Many insurers also offer additional coverage for specific situations. If you buy a new vehicle, for example, you may want new car replacement coverage, which will pay for a new vehicle of the same make and model if yours is totaled in a covered loss. Here are a few other examples of add-on coverage:

Discounted rates and bundling

Auto insurance rates are determined by specific and personal factors such as where you live, your driving record and the type of vehicle you drive. If you’re looking for the best auto insurance rates, however, many companies offer discounts. You may qualify for a lower premium if you maintain a safe driving record or improve your credit score. Young drivers may qualify for a discount by getting good grades. You may also be eligible for a discount if you bundle multiple policies -- that is, if you use the same provider for car insurance, life insurance and homeowners insurance. 

How much coverage do you need?

Most car insurance companies offer different policies for different types of drivers. For a baseline, you want a policy that includes bodily injury liability protection and property damage protection. But you may add other coverage types such as personal injury protection, uninsured motorist coverage or collision coverage. Some auto insurance carriers offer comprehensive coverage, which insures your vehicle from theft or damage caused by non-driving incidents such as a fire.

“Having adequate auto insurance coverage is both smart and prudent to ensure you and your family are financially protected from a catastrophic loss,” said Mark Friedlander, director of corporate communications at the Insurance Information Institute. “Comparison shopping when seeking insurance coverage is time well spent as premiums could vary by hundreds of dollars between carriers depending on numerous factors.”

In addition to choosing certain coverage types, you may be able to adjust your deductible -- the amount you pay for a loss before insurance kicks in. If you want a lower monthly premium, you can elect to have a higher deductible. Before you go that route, however, make sure you can cover a significant loss.

How to sign up for auto insurance

Signing up for car insurance is simple. Here are the major steps:

Car Insurance FAQs

FAQs

Yes. When shopping for car insurance, you’ll notice that rates vary by region and that state laws dictate which coverage is required on your policy and what the minimum limits are, as well. There are plenty of good insurance companies that operate regionally or only in a select amount of states.

For example, Erie Insurance and Auto-Owners Insurance are top-rated carriers with excellent rates, a low number of complaints and superb customer satisfaction, but they operate in fewer states than other major insurers. Auto-Owners offers coverage in only 26 states, while Erie offers it in just 12.

In most states, bodily injury liability coverage and property damage liability are necessary to drive, but you’ll want to check the specifics of insurance premiums with auto insurance providers where you live. An insurance agent can help guide you through this process so that you know exactly what coverage you may need.

Auto insurance rates may ultimately be determined by personal factors, such as where you live, your driving record, your credit score and the type and age of vehicle you drive. However, insurance companies offer numerous discount options that you can take advantage of if you qualify.

For example, you may lower your insurance coverage costs if you maintain a safe driving record or work on your credit score. Bundling your car insurance policy with life, homeowners or renters insurance is another great way to save money. Young drivers might save money on their higher premium costs by demonstrating good grades.

If your child lives under your roof and is driving one of your vehicles, you’ll need to add them to your car insurance policy.

USAA offers the least expensive full coverage auto insurance policy, with an average annual premium of $1,209 -- but it’s available only to military service members, veterans and their families. The runner-up is Geico, which offers full coverage for $1,297 per year.

Methodology

CNET reviews insurance carriers and products by exhaustively comparing them across set criteria developed for each category. For auto insurance, we examine average annual premium rates for full coverage, consumer complaints, collision repair scores, the carrier’s financial strength, auto claims satisfaction and overall customer satisfaction. Our data comes from a multitude of sources. 

Auto insurance rates come from Bankrate, which gathers data using Quadrant Information Services. We also use both J.D. Power annual surveys that collect data on customer auto claims satisfaction and overall customer satisfaction.

Consumer complaints are taken from the National Association of Insurance Commissioners (NAIC), which collects consumer complaints across states, indexing complaints on a scale that takes into account the industry average. We collect the financial strength rating of each carrier from the A.M. Best Rating. Lastly, we collected collision repair scores from the Crash Network Insurer Report Card, which collects data from collision repair professionals, including mechanics, to gauge the quality of collision claims service from insurance carriers.

More car insurance recommendations

CNET editors independently choose every product and service we cover. Though we can’t review every available financial company or offer, we strive to make comprehensive, rigorous comparisons in order to highlight the best of them. For many of these products and services, we earn a commission. The compensation we receive may impact how products and links appear on our site.

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