Top 5 Car insurance company in US

After we thoroughly researched the auto insurance market, 5 companies stood out among the competition as the best car insurance providers. When ranking these insurers, our team considered state availability, breadth of coverage, pricing and satisfaction scores from experts like J.D. Power.

We also took into account AM Best financial strength ratings and complaint volume as reported by the National Association of Insurance Commissioners (NAIC). Each insurer was graded on a 10-point scale. We’ll take a closer look at our top five picks for best auto insurance companies below.

Car

Insurance

Company

Overall

Rating

Our Award
#1 Geico9.1Editor’s Choice
#2 USAA9.1Low Rates for Military
#3 Progressive9.0Low Rates for High-Risk Drivers
#4 State Farm8.6Most Popular Provider
#5 Liberty Mutual8.5Good Programs for Young Drivers
#6 AAA8.4
#7 The Hartford8.4
#8 Allstate8.2
#9 Nationwide8.2
#10 Farmers8.0

Our picks for the best car insurance

Our top five picks for the best car insurance companies are Geico, USAA, Progressive, State Farm and Liberty Mutual.

#1 Geico: Editor’s Choice

Editor’s Choice
 4.6/5

Average cost: $$
Number of discounts: 16
Usage-based insurance: DriveEasy in 26 states

Geico is our first choice for the best car insurance in the nation. The company offers reputable service, a wide selection of coverage and cheap car insurance rates, according to our rate estimates.

Besides the standard coverage options, Geico offers helpful add-ons such as:

  • Emergency roadside assistance
  • Rental reimbursement
  • Mechanical breakdown insurance (MBI)
  • Rideshare insurance

Geico received an A++ (Superior) rating from AM Best, meaning the company has the financial backing to pay customers’ insurance claims. A larger auto insurer like Geico comes with more financial stability compared to a smaller, local company.

Geico also has a strong customer service reputation. According to the J.D. Power 2021 U.S. Auto Insurance StudySM, Geico performed better than average in California and the Central and New England regions. The study surveyed customers on their satisfaction with claims, billing, price, policy and more. Additionally, our January 2022 insurance survey which polled 1,000 respondents found nearly 12% chose Geico as their insurance provider.

Regarding cost, Geico’s rates are some of the most affordable we’ve seen. Our rate estimates show that drivers pay about $1,350 per year on average for full coverage car insurance from Geico. These rate estimates apply to 35-year-olds with good credit and driving records. Our estimates put Geico in the top three companies for affordability compared to other national providers.

On top of that, the insurer offers a number of ways to save money, including a good driver discount (up to 26% off), a good student discount (up to 15% off) and a multi-vehicle discount (up to 25% off).

#2 USAA: Low Rates for Military

Low Rates for Military
 4.8/5

Average cost: $
Number of discounts: 12
Usage-based insurance: SafePilotTM in 38 states

USAA regularly tops J.D. Power auto insurance studies as one of the best car insurance companies in terms of customer satisfaction and value. The provider is well known for its high customer ratings and affordable coverage options, including accident forgiveness. However, it’s not No. 1 on our list due to its strict eligibility requirements.

USAA auto insurance is only available to military members, veterans and their families, which greatly restricts who can purchase coverage. If you are eligible for a USAA insurance policy, it’s one of the best options available. Beyond the standard types of car insurance, USAA offers the following optional coverage:

  • Roadside assistance
  • Rental car reimbursement
  • Accident forgiveness
  • Glass coverage
  • Guaranteed asset protection (GAP insurance)
  • Car replacement assistance (CRA)
  • Rideshare insurance

USAA received an A++ financial strength rating from AM Best and an A+ from the Better Business Bureau (BBB). The auto insurer made up 6.32% of the market share in 2020, according to the NAIC. Though it’s not the largest auto insurer, USAA still has reputable financial strength. In 2020, the company wrote $15.77 billion in private passenger auto insurance premiums.

While USAA does not have many physical locations, policyholders are still impressed by the company’s customer service. USAA earned the top score in the 2021 J.D. Power Auto Insurance Study in every U.S. region, though it’s unranked due to its eligibility criteria. And in our January 2022 car insurance survey, nearly 65% of the 1,000 respondents surveyed stated they were very satisfied with USAA insurance coverage, the highest of any provider.

USAA is known for its affordability as well. It offers the cheapest car insurance on average compared to any other provider we researched. Our rate estimates show good drivers pay about $1,013 per year for full coverage car insurance with USAA. The company also offers discounts based on driver safety, vehicle safety, multiple policies and safety features such as airbags and more.

#3 Progressive: Low Rates for High-Risk Drivers

Low Rates for High-Risk Drivers
 4.6/5

Average cost: $$
Number of discounts: 13
Usage-based insurance: Snapshot® (not available in California or North Carolina)

If you are under 21, are an elderly driver or have received a DUI/DWI, Progressive may be the best car insurance option for you. We found that Progressive tends to be one of the cheapest national providers for high-risk drivers besides USAA. Our rate estimates also show safe drivers pay about $1,397 per year for full coverage insurance with Progressive, which puts it just behind Geico and State Farm for affordability.

Aside from the standard types of car insurance coverage, Progressive offers:

  • Roadside assistance
  • Rental car reimbursement
  • Loan/lease payoff
  • Custom parts and equipment value
  • Rideshare coverage

While Progressive has mixed customer service reviews — it scored above average in half of the regions in the J.D. Power Satisfaction Study. Our 2022 car insurance survey found 74% of Progressive policyholders are satisfied with their coverage. Further, Progressive offers strong financial stability with an A+ rating from AM Best. The company also wrote more than $33 billion in premiums in 2020, according to the NAIC.

Our team reached out to Progressive for a comment on its negative review scores but did not receive a response.

Progressive offers auto insurance discounts as well as a few tools to help lower your rates. Using a mobile app that tracks and records your driving habits, Progressive’s Snapshot® program rewards safe driving behavior with discounts on premiums. On average, drivers who use Snapshot save $146 on their policies, according to Progressive. However, this program is not available in California or North Carolina.

Drivers interested in Progressive policies should also look into the Name Your Price® tool. The insurer will customize a variety of coverage options based on your auto insurance budget.

#4 State Farm: Most Popular Provider

Most Popular Provider
 4.6/5

Average cost: $$
Number of discounts: 13
Usage-based insurance: Drive Safe & SaveTM (not available in CA, MA and RI)

State Farm is another strong choice when it comes to finding the best auto insurance in the industry. Our January 2022 insurance survey found the insurer is the most popular provider among the 1,000 respondents surveyed, with 13% stating they purchased State Farm insurance coverage.

Beyond the standard types of coverage, State Farm offers:

  • Emergency road service coverage
  • Car rental and travel expenses coverage
  • Rideshare driver coverage

Our cost estimates show good drivers pay about $1,339 annually for full coverage insurance with State Farm. This ranks State Farm among the most affordable national providers.

As the biggest car insurance company in the country, State Farm is no stranger to claims satisfaction — the company has an A++ rating from AM Best. According to the NAIC, State Farm accounted for 16.19% of the auto insurance market share in 2020. State Farm also had fewer complaints than the industry average in 2020, though customer reviews on the BBB are mixed.

We chose State Farm as one of the nation’s best car insurance companies in part because of the usage-based and safe driving discounts it offers to young drivers. There are two discount programs available through mobile apps:

  • Drive Safe & Save: State Farm tracks and rewards safe driving habits through the Drive Safe & Save mobile app. By reducing driving behaviors such as quick accelerations, hard braking and speeding, drivers can earn up to 30% off their premiums. This program is not available in California, Massachusetts or Rhode Island.
  • Steer Clear®: Teens and new drivers can receive course training, mentoring, driving practice and a program certification to encourage good driving habits. After successfully completing the program, drivers get a discount on their auto insurance premium.

Other State Farm auto insurance discounts include those for good grades, safe driving, defensive driving, vehicle safety features and driving course completion. The company does not offer a military discount.

#5 Liberty Mutual: Good Programs for Young Drivers

RATING:
Good Programs for Young Drivers
 4.4/5

Average cost: $$
Number of discounts: 17
Usage-based insurance: RightTrack® in 42 states

Liberty Mutual can be a good auto insurance option for families with young or teen drivers. The insurer offers competitive rates and discounts, many of which are specialized for young drivers.

There are several additional coverage options alongside the standard insurance types, including:

  • 24-hour roadside assistance
  • Rental car reimbursement
  • New car replacement
  • Better car replacement
  • Liberty Mutual Deductible Fund®
  • Original parts replacement
  • Auto loan/lease guaranteed asset protection

Liberty Mutual has an AM Best rating of A for its financial stability and ability to pay out insurance claims. The insurer’s customer service, however, has mixed reviews on Trustpilot and the BBB. Some customers report issues with communication, while others review the company’s claims process positively. In our 2022 insurance survey, 73% of the respondents who reported purchasing Liberty Mutual insurance coverage were satisfied with the provider.

Our team reached out to Liberty Mutual for a comment on these negative reviews and found that the provider says it always makes an effort to respond to customer complaints and is willing to work with customers to resolve any issues.

Liberty Mutual is often an affordable choice for policyholders with teen drivers. However, it may not be the cheapest option for other types of drivers. The auto insurer offers a number of discounts, including savings for homeowners, military, good students and drivers who remain accident-free.

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What are the types of auto insurance?

Most auto insurers offer six standard types of car insurance. Based on your state’s minimum requirements, some types of auto insurance policies are mandatory. However, it’s always a good idea to purchase full coverage rather than just the state minimum coverage.

  • Liability car insurance: Bodily injury liability insurance (BI) covers other drivers and passengers if you are at fault in a collision, and property damage liability (PD) covers other cars or property if you are at fault in a collision.
  • Collision insurance: Collision coverage protects your vehicle, regardless of who is at fault.
  • Comprehensive insurance: Comprehensive coverage pays for damages to your vehicle caused by environmental factors, theft or vandalism.
  • Medical payments (MedPay): MedPay covers any medical expenses for you and your passengers after a collision.
  • Personal injury protection (PIP): PIP covers medical bills, lost wages and death benefits for you and your passengers, regardless of fault.
  • Underinsured/uninsured motorist coverage (UM/UIM): This type of coverage protects you if you’re in a car accident with a motorist with too little coverage or no coverage at all.

Our January 2022 car insurance survey found 67% of the 1,000 respondents polled purchased full coverage insurance, which includes a combination of liability, collision and comprehensive coverage.

How much does car insurance cost?

Car insurance prices depend on many factors, including your age, location, credit score, driving record and type of vehicle. According to our rate estimates, 35-year-old drivers with clean driving records and good credit pay between about $1,000 and $2,500 per year for full coverage car insurance.

Here are 11 popular insurance providers and their average annual costs according to our rate estimates:

Car Insurance ProviderAverage Monthly Cost EstimateAverage Annual Cost Estimate
USAA$84$1,013
Erie Insurance$93$1,113
Auto-Owners Insurance$102$1,229
State Farm$111$1,339
Geico$113$1,352
Progressive$116$1,397
Nationwide$128$1,533
Travelers$135$1,617
Farmers$169$2,032
The Hartford$180$2,166
Allstate$202$2,430

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