Who Has the Best Car Insurance?
As an Advisor, I can provide you with information regarding car insurance companies. According to some research and statistical data, American Family, Auto-Owners, Nationwide, and USAA are among the car insurance companies that are generally considered to be the best in the United States, and they have received 5-star ratings.
However, it is important to note that the best car insurance company for you will depend on various factors, such as your driving record, state, and other individual circumstances. Therefore, it is recommended to shop around and compare car insurance quotes to find the best insurance company that suits your specific needs and budget. Additionally, it’s worth noting that USAA auto insurance is only available to military members, veterans, and their immediate family members.
Best for low car insurance rates: Geico
According to some research, Geico offers some of the lowest rates on car insurance nationwide, which are generally available to the general public, and are competitive across a variety of driving records and driver ages. However, it’s important to note that USAA may offer even cheaper rates, but it is only available to car owners with a military connection.
If you have a poor credit score, it may be worth comparing quotes from Geico, as they offer competitive rates for drivers with poor credit. Many auto insurance companies charge higher rates for drivers with poor credit, so getting quotes from different companies is a good idea. By comparing quotes, you can find the best rates and insurance coverage that suits your individual needs and budget.
Best for low complaints: American Family and Travelers
I can provide you with information regarding car insurance companies. It is often believed that complaints against a company reflect the quality of its customer service. In the case of car insurance companies, most complaints are usually related to problems with claims.
Based on verified complaints made to state insurance departments across the United States, American Family and Travelers have low levels of auto insurance complaints. This suggests that they may have better customer service and a higher level of customer satisfaction compared to other car insurance companies. However, it is important to note that individual experiences may vary, and it’s always recommended to research and compare multiple car insurance companies to find the best one that fits your specific needs and budget.
Best for collision repair: Erie
According to our analysis, Erie has received the highest grade of B+ from collision repair professionals among the car insurance companies that were analyzed. Collision repair professionals have firsthand knowledge of how different car insurance companies handle claims and repairs. They have an inside perspective on which insurance companies prioritize cost-cutting measures, potentially leading to lower quality repairs, and which companies have smoother claims processes.
This knowledge and experience can be valuable when researching and choosing a car insurance company, as it can give insight into the quality of service and repair work that can be expected in the event of an accident. Based on their experience, Erie seems to have a good reputation among these professionals. However, it’s important to keep in mind that individual experiences may vary, and it’s always recommended to research and compare multiple car insurance companies to find the best one that fits your specific needs and budget.
Best for drivers with a speeding ticket: Geico and Westfield
If you have received a speeding ticket, it is important to note that it can affect your car insurance rates for a period of three to five years, depending on the duration of time for which a speeding ticket affects your car insurance rates can vary depending on the state you live in and the car insurance company you choose. It is important to research and compare rates from different car insurance companies to find the one that offers the best coverage and rates for drivers with a speeding ticket on their record.
Among car insurance companies open to the general public, Geico and Westfield are known for offering some of the lowest rates for such drivers. However, it is worth noting that Westfield is a regional insurer that mainly operates in 10 states in the Midwest. For military members and veterans with a speeding ticket on their record, USAA is known for offering low rates. By comparing quotes from different car insurance companies, you can make an informed decision and find the best car insurance coverage that suits your individual needs and budget..
Among car insurance companies that are open to the general public, Geico and Westfield have some of the lowest rates for drivers with a speeding ticket on their record. It is worth mentioning that Westfield is a regional insurer that sells car insurance in 10 states, mainly in the Midwest.
USAA also offers low rates for military members and veterans who have a speeding ticket on their record. If you are a military member or veteran, it may be worth considering USAA when shopping for car insurance. By comparing quotes from different car insurance companies, you can find the best rates and coverage options that fit your specific needs and budget.
Best for drivers who caused an accident: Auto-Owners
If you are involved in a “chargeable” accident, it can remain on your record and impact your car insurance rates for a period of three to five years, depending on the laws of your state and the policies of your car insurance company. Among the companies we analyzed, Auto-Owners offers the best average rates for drivers in this situation.
The severity of the accident, in terms of the dollar cost of property damage and/or injuries, can also impact the amount of your surcharge. It is important to speak with your auto insurance agent to determine how long the surcharge will affect your car insurance rates. By understanding the potential impacts of a chargeable accident on your car insurance rates, you can make informed decisions when selecting a car insurance policy that meets your needs and budget.
Best for drivers with a DUI: Progressive
Although you cannot escape higher car insurance rates following a DUI conviction, Progressive offers some of the most competitive pricing for drivers in this situation, based on nationwide averages among the companies we analyzed.
When getting a new car insurance quote or renewing your policy, car insurance companies will often review your motor vehicle report to assess the level of risk you pose as a driver. A recent history of problems, such as a DUI conviction, can result in significantly higher insurance rates. It is important to be transparent with your car insurance company about any past convictions or violations to ensure that you are getting the most accurate and fair rate possible. By selecting a car insurance policy that suits your individual needs and budget, you can protect yourself and your finances in the event of future accidents or incidents.
Best for military members: USAA
USAA is consistently rated as the best car insurance option for military members due to its competitive rates and wide range of coverage options. Despite a recent increase in complaints about USAA auto insurance, the company’s current complaint level is still within the average range for the industry.
| State | Average annual cost for full coverage |
|---|---|
| Alabama | $1,809 |
| Alaska | $2,323 |
| Arizona | $1,696 |
| Arkansas | $2,061 |
| California | $2,462 |
| Colorado | $2,489 |
| Connecticut | $1,730 |
| Delaware | $2,462 |
| Florida | $4,326 |
| Georgia | $2,181 |
| Hawaii | $1,633 |
| Idaho | $1,021 |
| Illinois | $2,345 |
| Indiana | $1,454 |
| Iowa | $1,238 |
| Kansas | $1,693 |
| Kentucky | $1,979 |
| Louisiana | $3,629 |
| Maine | $1,216 |
| Maryland | $3,349 |
| Massachusetts | $2,333 |
| Michigan | $2,995 |
| Minnesota | $2,360 |
| Mississippi | $1,704 |
| Missouri | $2,323 |
| Montana | $1,770 |
| Nebraska | $1,538 |
| Nevada | $3,342 |
| New Hampshire | $1,411 |
| New Jersey | $2,240 |
| New Mexico | $2,104 |
| New York | $4,769 |
| North Carolina | $1,307 |
| North Dakota | $1,319 |
| Ohio | $1,112 |
| Oklahoma | $2,291 |
| Oregon | $1,459 |
| Pennsylvania | $3,600 |
| Rhode Island | $2,715 |
| South Carolina | $2,387 |
| South Dakota | $1,821 |
| Tennessee | $1,720 |
| Texas | $2,938 |
| Utah | $1,955 |
| Vermont | $1,037 |
| Virginia | $1,486 |
| Washington | $1,829 |
| West Virginia | $1,688 |
| Wisconsin | $1,905 |
| Wyoming | $1,341 |
What Is Car Insurance?
Car insurance is an agreement between an individual and an insurance company, in which the individual pays a premium for specific coverage. The policy serves as a contract that outlines the types of claims that can be made.
The best car insurance policies provide coverage for liability, which includes damage or injuries caused by the insured individual to others, as well as for damage to the insured individual’s own vehicle and injuries sustained in a car accident by the insured individual and their passengers.
If an individual fails to pay their car insurance premium, their coverage may lapse and any claims they make may be denied.
How Can I Find the Best Price on Car Insurance?
Understanding the factors that affect car insurance rates, including your credit score, can help you identify ways to save money. Here are some of the most effective ways to find affordable car insurance:
Compare Quotes: To get the best deal on car insurance, it’s important to compare quotes from at least three different companies that offer the same level of coverage. Prices can vary significantly between providers, so shopping around is the best way to maximize your potential savings.
Opt for a Higher Deductible: If you have comprehensive and collision coverage, choosing a higher deductible is a reliable way to lower your insurance bill. Keep in mind that there is no deductible for liability insurance.
Ask About Discounts: Many car insurance discounts, such as “pay in full” or good student discounts, are automatically applied to your bill. However, some discounts may not be automatically applied, so it’s important to ask your insurance company about any discounts you may be eligible for.
By following these tips, you can save money on your car insurance while still maintaining the coverage you need.
How Much Does Car Insurance Cost?
Car insurance costs an average of $2,067 a year, based on Forbes Advisor’s analysis of rates from large car insurance companies. That’s $172 per month, on average.
| Coverage | Average annual car insurance cost for good drivers | Average monthly car insurance cost for good drivers |
|---|---|---|
| USAA | $1,412 | $118 |
| Auto-Owners | $1,628 | $136 |
| Geico | $1,716 | $143 |
| Westfield | $1,759 | $147 |
| Travelers | $1,852 | $154 |
| State Farm | $1,959 | $163 |
| Nationwide | $2,041 | $170 |
| Erie | $2,144 | $179 |
| Progressive | $2,157 | $180 |
| American Family | $2,176 | $181 |
| Farmers | $2,381 | $198 |
| Safe Auto | $2,647 | $221 |
| Allstate | $3,000 | $250 |
Factors That Impact the Cost of Car Insurance
Your car insurance cost will vary depending on several factors that typically include:
- The record of your past driving behaviors and any violations or accidents you have had while driving.
- One’s driving experience and age can impact car insurance rates.
- Where you live
- Car insurance coverage selections
- Deductible amount (if you buy collision and comprehensive coverage)
- Vehicle model
- Your car insurance history, such as whether you’ve had continuous coverage or lapses
- Your credit-based insurance score
What Types of Car Insurance Are Required?
Car insurance can be broken down into different types of coverage, including liability, uninsured motorist, collision, and comprehensive insurance. Liability insurance is a requirement in most states and covers injuries and property damage that you may accidentally cause to others in an auto accident. Uninsured motorist insurance, which is also required in many states, will pay for your medical bills if you get into an accident with an uninsured driver.
If you financed your car, collision and comprehensive insurance may be required. Even if it is not required, it is still a good idea to have this type of insurance, especially for newer vehicles. Collision insurance covers accidents with other vehicles or objects, like buildings or poles, and pays regardless of fault. Comprehensive auto insurance covers a wide range of incidents, including theft, fires, severe weather, floods, hail, falling objects, vandalism, and hitting an animal.
Methodology
To determine the best car insurance companies, we evaluated each company based on several criteria. We considered the average rates for different types of drivers, including good drivers, drivers with accidents, speeding tickets, DUIs, poor credit, caught without insurance, adding a teen driver, senior drivers, and young drivers.
The rates were based on a 40-year-old female driver with a Toyota RAV4 and specific coverage amounts, including $100,000 for injuries to one person, $300,000 for injuries per accident, $100,000 of property damage, and uninsured motorist coverage of 100/300. We also evaluated the coverage options offered by each company, giving points to those that offer additional coverage types such as accident forgiveness, new car replacement, vanishing deductibles, usage-based or pay-per-mile insurance, and SR-22s.
Additionally, we used complaint data from the National Association of Insurance Commissioners to evaluate each company’s level of complaints, with a ratio below 1.00 indicating lower levels of complaints.
We assessed the quality of collision repair services provided by different car insurance companies by taking into account the grades assigned to them by collision repair professionals. The grades were obtained from CRASH Network, a weekly newsletter that covers the collision repair and auto insurance market segments. We used the Insurer Report Card from CRASH Network, which reflects the opinions of over 1,100 collision repair professionals who rated auto insurers based on the quality of their collision claims service. This category accounted for 5% of the overall score.
Best Car Insurance Companies FAQ
Which company has the best car insurance?
Based on factors such as affordable rates, comprehensive coverage options, low complaint ratios, and high collision repair grades, American Family, Auto-Owners, Nationwide, and USAA emerge as the top car insurance providers in Forbes Advisor’s analysis.