August 17, 2020

Top 10 Best Car Insurance Companies

Read more about Car Insurance

Is cheaper better for car insurance? Not always. Check out the best car insurance companies for price, customer service, and more.

© CreditDonkey

These are the best car insurance companies for every type of driver:
  1. Travelers for customer service
  2. Progressive for best discounts
  3. Erie Insurance for best claims services
  4. Allstate for teens
  5. Farmers for students
  6. GEICO for seniors
  7. Nationwide for new drivers
  8. USAA for military members
  9. Metromile for low-mileage drivers
  10. Safe Auto for bad drivers
  11. Liberty Mutual for easiest sign-up
  12. State Farm for best financial security
  13. Hagerty for classic cars

Cheapest Car Insurance in Each State

Your car insurance rates depends on 3 main factors:

  • Driving record: The fewer traffic violations and accidents you have, the less you pay for auto insurance.

  • How much you drive: The more you're on the road, the greater your risk for an accident. That risk translates to higher car insurance cost.

  • Location: You'll pay more living in a city than a in a rural area. Accidents, theft, and vandalism occur more in urban areas. City residents also tend to park their cars on the street instead of in a secure garage.

Do you feel your car insurance is fairly priced?

Some other factors that bring your rates up are age, gender, type of car, and credit history.

Check out the cheapest company in your state to save:

StateCheapest Car Insurance Company
AlabamaProgressive
AlaskaGEICO
ArizonaFreedom National
ArkansasState Farm
CaliforniaNationwide
ColoradoGrange
ConnecticutProgressive and GEICO (tied)
DelawareGEICO
FloridaGEICO
GeorgiaAuto-Owners
HawaiiChubb
IdahoAmerican National
IllinoisUnique Insurance
IndianaGEICO
IowaProgressive
KansasAmerican Family (AmFam)
KentuckyCincinnati Insurance
LouisianaGEICO
MaineGEICO
MarylandGEICO
MassachusettsGrange and Norfolk & Dedham (tied)
MichiganMetLife
MinnesotaWest Bend
MississippiKemper
MissouriFarmers
MontanaGEICO
NebraskaNationwide
NevadaAllied Insurance
New HampshireConcord
New JerseyGEICO
New MexicoGEICO
New YorkGEICO
North CarolinaAuto-Owners
North DakotaAllied Insurance
OhioGrange
OklahomaProgressive
OregonCountry Financial
PennsylvaniaErie
Rhode IslandState Farm
South CarolinaState Auto
South DakotaState Farm
TennesseeCincinnati Insurance
TexasGEICO
UtahBear River Mutual
VermontGEICO
VirginiaErie
WashingtonGrange
West VirginiaProgressive
WisconsinGEICO
WyomingProgressive

These companies are cheap for good, established drivers. But low rates aren't everything. Plus, what if you're not a perfect driver?

Find out the best car insurance company for your situation below.

1. Customer Service: Travelers

  • Pros: Many coverage options, few customer complaints, good customer service
  • Cons: Premiums can be higher than average
  • Average 6-Month Premium: $1,066

Travelers Insurance consistently makes the top 10 in consumer rankings as the best overall auto insurance company. It scores high for financial strength, claims settlement, and customer service.

This auto insurer was established in 1864 and has a solid reputation for taking care of its customers. It offers the basic coverages, along with additional options like gap insurance and accident forgiveness.

Travelers also provides a wide range of discounts and programs to lower your premium. It's available throughout the U.S., Canada, the U.K., Ireland, and Brazil.

Good customer service is important, but so are good rates. The next insurance company can keep your premium low.

2. Best Discounts: Progressive

  • Pros: Lots of discounts, Name Your Price tool, safe driving program
  • Cons: Average customer service and claims satisfaction
  • Average 6-Month Premium: $793

Progressive offers a lot of ways to save. And its standard discounts are pretty generous too. For instance, their average good driver discount is 31%.

With Progressive, you can earn discounts for small things like:

  • Signing your auto insurance policy documents online
  • Going paperless
  • Paying in full
  • Setting up automatic payments

The biggest discount—a whopping $130 on average—is for enrolling in its usage-based insurance program. Their app tracks your car and offers savings based on how well you drive.

Most car insurance companies offer savings for:
  • Anti-theft devices
  • Multi-cars
  • Multi-policies
  • Good drivers
  • Good students
  • New and renewing customers
  • Enrolling in defensive driving, teen driver safe driving, or other driver training courses

When an accident happens, you want it to be settled as quickly as possible. Find out which insurer makes the claims process smooth.

3. Best Claim Services: Erie Insurance

  • Pros: High customer satisfaction, easy to bundle coverage, flexible policies
  • Cons: Can't file a claim online (phone call only), not available in all states
  • Average 6-Month Premium: $761

Erie Insurance receives very few customer complaints. The company also responds quickly to questions or requests. It scores the highest at handling claims and fair claim settlements.

Its estimation and repair processes consistently receive 5 stars. The auto insurer also gets the highest grade for its rental car process. This is available to policyholders when their vehicle is being repaired after an accident.

Rating agencies like AM Best and J.D. Power regularly grade auto insurance companies. These agencies consider factors like:
  • How quickly a company responds
  • Professionalism of the customer service team
  • Knowledge of the customer representative
  • How efficiently the company addresses concerns

Car insurance is expensive, especially for inexperienced drivers. Choose a company that cuts you some slack for being young.

4. Teen Drivers: Allstate

  • Pros: Lots of coverage options, good customer service, easy to file a claim
  • Cons: Expensive if you have bad credit or accidents on record
  • Average 6-Month Premium: $912

Teens pay some of the highest rates because they're high risk. Allstate stands out from other auto insurers with its long list of savings for teen drivers.

With Allstate, teen drivers earn up to 25% cash back every 6 months. Plus, they offer reward points through the Safe Driving Club® and safe driving bonus. The program measures and rewards safe driving behaviors.

Young drivers also get deductible rewards each year they stay accident free. Allstate offers a pay-as-you-go program in some states, which lets teens pay only for the miles they drive.

Always ask the insurance agent about discounts. If you're a teen or college student, you probably qualify for a couple.

5. College Students: Farmers Insurance

  • Pros: Good for families, many options to bundle, lots of discounts
  • Cons: Bad choice if you have bad credit or driving record
  • Average 6-Month Premium: $834

Farmers Insurance offers the most discounts with the highest savings for college students. You can save up to 24% by meeting one of these criteria:

  • Maintain a 3.0 GPA
  • Make the dean's list or honor roll
  • Rank in the top 20% of your class on a standardized test

You can save whether you stay on your parents policy or get your own. Plus, there's a multi-car discount if your family has more than one car.

Farmers offers additional savings with its good driver, driving training, and accident prevention discounts. There's also the distant student discount for students who attend school at least 100 miles from home without their car.

Insurance can be pricy when you're older too. If you're over 50, look for an insurance company with plenty of senior discounts.

6. Senior Drivers: GEICO

  • Pros: Good customer service, many discounts, easy-to-use website and app
  • Cons: Local agents aren't widely available
  • Average 6-Month Premium: $575

In a countrywide rate comparison, GEICO has the lowest rates for senior car insurance. Senior discounts include:

  • Defensive driving discount up to 15%
  • Good driving discount up to 26%
  • Accident forgiveness for your first at-fault accident

GEICO also has a guaranteed renewal program for drivers over age 50. The contract is automatically applied to new and renewal policies with no violations or accidents in the past 3 years.

AARP members age 50 and older get special rates, discounts, and other benefits through its senior auto insurance offered by The Hartford.

There's no age limit on when you first start driving. See which company is best if you're new behind the wheel.

7. New Drivers: Nationwide

  • Pros: Good option for bundling, good customer service, offers online learning center
  • Cons: Policies aren't very customizable
  • Average 6-Month Premium: $852

Nationwide has the cheapest auto insurance rates for new drivers. The insurer offers a wide range of discounts that lower your monthly premium. You can save even more if you enroll in its usage-based insurance program: The safer you drive, the more you earn.

Nationwide also offers accident forgiveness for your first at-fault accident. The coverage prevents an increase in the cost of your car insurance due to the accident. This is a great coverage to have if you're first starting to drive.

No matter how inexperienced you are, one insurance company has the absolute lowest rates. But there's a catch. See which company is best (if you qualify for it).

8. Military Members: USAA

  • Pros: Lowest prices, great customer service and satisfaction
  • Cons: Only available to military members and their families
  • Average 6-Month Premium: $448

USAA has the best ratings for customer service, claims, and price. The catch? It's exclusively available for active and retired members of the U.S. military and their families.

It offers a wide range of auto discounts along with low base prices. They include safe driving, multi-car, and membership discounts. If you're able to get a USAA policy, stick with it. It's consistently the cheapest policy with great customer service.

Some people love driving, and they do it all the time. If you're NOT one of those people, check out the next car insurance company.

9. Low-Mileage Driving: Metromile

  • Pros: Pay per mile, easy sign up, good if you drive less than 10,000 miles per year
  • Cons: Available in only a few states, driving is tracked by app
  • Average 6-Month Premium: base rate + a few cents per mile

If you don't drive too often, why should you pay as much as someone who does? Low-mileage driving means you typically drive under 7,000 miles per year. Metromile only charges for the miles you drive, so you won't overpay.

Base rates start at $29 per month, plus a few cents per mile. If you drive 500 miles each month, that comes out to about $354 for a 6-month period. Metromile is available in Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington.

Traffic violations and accidents like these will increase your insurance cost:
  • Speeding
  • Racing
  • Not stopping at a stop sign
  • Reckless or careless driving
  • Driving under the influence (DUI)
  • At-fault accidents

The next insurers can help if you've gotten into some sticky situations.

10. Bad Drivers: Safe Auto

  • Pros: Offers SR-22 certificate, rates don't spike too much after accidents
  • Cons: Not available in every state, can't file a claim online (by phone only)
  • Average 6-Month Premium: $1,433

High-risk drivers have multiple violations, at-fault accidents, and DUI convictions. At this point, some car insurance companies will refuse to insure you.

Safe Auto has specialized in high-risk car insurance for over 25 years. They have the best rates for high-risk drivers. But you'll still pay more than a driver with a clean record. Safe Auto also has affordable SR-22 insurance and helps with the paperwork.

For added savings, they offer discounts for:

  • Proof of prior insurance
  • Multi-car
  • Driver improvement course
  • Owning a home

If you're not a high-risk driver but still have a few accidents on your record, try GEICO. GEICO's annual auto insurance rate is nearly $600 less than other auto insurers if you have traffic violations.

11. Easiest Sign-Up: Liberty Mutual

  • Pros: Many coverage options and discounts available, good customer service
  • Cons: Higher base rates than other companies
  • Average 6-Month Premium: $642

Liberty Mutual makes it easy to buy an auto policy. It offers free quotes online and gives you up to 12% off if you follow through with buying a policy. Plus, it has local agents throughout the U.S. and a toll-free phone number to get an auto insurance quote.

Liberty Mutual customers can also manage their auto policy and file a claim online. The company also offers 24/7/365 customer phone support. Their agents and employees receive high marks for customer service and satisfaction.

12. Financial Stability: State Farm

  • Pros: Lots of discounts, high claims satisfaction, many coverage options
  • Cons: Expensive if you have bad credit or accidents
  • Average 6-Month Premium: $677

You want your insurance company to be financially secure. State Farm is recognized for its strong ability to pay claims and efficient operations performance. You don't have to worry about the company going under or failing to pay out.

State Farm is the largest auto insurance company in the U.S. It takes the top spot in most direct premiums written and biggest market share. The insurance company has been financially strong since its founding in 1922.

If you live and breathe cars, you'll want special coverage for your babies. Find out which company is an expert in antiques and collectibles.

13. Classic Cars: Hagerty

  • Pros: No mileage restrictions for non-daily use, specializes in classic and antique cars, agreed value policy
  • Cons: No policies for your daily driver
  • Average 6-Month Premium: $328

Hagerty is a specialty classic car insurer. It also partners with 4 traditional auto insurers: Allstate, Esurance, Nationwide, and Progressive. You can either buy a policy direct from Hagerty or add on a classic car policy if you already have insurance with one of these 4 insurers.

It offers customized policies if you're restoring your car or traveling with it. Coverage is also available for collectibles, spare parts, and automotive tools. You can't apply a Hagerty policy to your everyday car. But there are no mile restrictions for your special cars.

With Hagerty, you get the benefit of an agreed value policy. This means that in the event of a total loss, you'll get the full insured amount including sales tax and without depreciation. They also have online valuation tools that come in handy when buying or selling a classic car.

Where can you purchase classic car insurance?
Classic car insurance can be purchased from:
  • Specialty insurers that only sell classic and collector car insurance
  • Traditional auto insurance companies that also sell classic car insurance
  • Traditional auto insurance companies that partner with a specialty insurer

Car Insurers by Market Share and Direct Premiums Written

A lot of people trust in big car insurance companies. Here are the companies that sell the most policies in the U.S.:

CompanyDirect Premiums WrittenMarket Share
1. State Farm$41.0 billion16.1%
2. GEICO$35.0 billion13.8%
3. Progressive$31.0 billion12.2%
4. Allstate$23.6 billion9.3%
5. USAA$15.2 billion6.0%
6. Liberty Mutual$11.7 billion4.6%
7. Farmers$10.5 billion4.2%
8. Nationwide$6.2 billion2.5%
9. American Family$5.8 billion2.3%
10. Travelers$4.9 billion1.9%

These are the big players in car insurance. The top 4 companies alone sell more than half of all the auto policies in the U.S.

Car insurance isn't one size fits all. Learn how to pick the right coverage for you and get the lowest prices.

How to Choose the Right Car Insurance

What should you look for when shopping for car insurance? Consider these factors to decide what you need in an auto policy:

Coverage Requirements
Most states have required minimum limits. If you drive often or have a newer car, you're going to want extra coverage.

Customer Experience
Do you like doing business completely online or would you prefer a personal touch? Find a company that matches your style.

Discounts and Perks
You can find big savings on the cost of your auto insurance. Research companies that offer extras like:

  • Safe driving programs
  • Accident forgiveness
  • Free rental car during repairs

Once you've picked the coverages you need, here's how you can get the cheapest possible rates: shop around and compare quotes.

No, it's not the most exciting or quick trick in the book. But it's the only foolproof way to get the best rates. Premiums change all the time, but getting multiple quotes will help you make a smart decision.

Shoot for at least 3 to 5 quotes. It'll take some time, but the savings will pay off.

Bottom Line

The best car insurance is a matter of personal preferences and needs. Insurance ratings and consumer rankings can help you identify the top companies in areas like price, service, coverage, and financial strength.

This information goes a long way in determining which auto insurers have the best reputation in areas that matter most to you.

Remember to always compare quotes to get the best price. Asking for discounts with your current insurer can help. But switching to a companies might be your ticket to even lower rates. In the end, the best insurance company is one that treats you right at prices you can afford.

More from CreditDonkey:


Average Cost of Car Insurance


How Much Car Insurance Do I Need


What Should I Be Paying for Car Insurance


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Full Coverage Car Insurance

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