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Best Car Insurance Companies
We investigate 36 of the best car insurance providers in relation to their ability to serve customers and pay claims; Not only in the premium cost category. Of course, the cost is important, but the rates depend on many different factors such as age, driving history and even the zip code, the best way to find the most comfortable price in the policy you want, is comparing quotes. Use the quotation tool provided above to start comparing.
The 4 best car insurance companies
- Travelers Auto Insurance – More complete coverage
- Progressive Auto Insurance – Best for “high risk” drivers
- Allstate Auto Insurance – Best for new drivers
- State Farm Auto Insurance – Best for Uber / Lyft drivers
How we choose Best Auto Insurance Companies
Strong financial solvency
There are a million things to worry about when you are involved in an accident. Whether or not your insurance company can pay your claim should not be one of them. A solid financial rating is the best way to ensure that your provider can pay for what you need when you need it, so we make sure that all of our selections have solid ratings, based on the Insurance Information Institute guidelines (III).
First, we look for companies that received a rating of “A-” or better (“strong”) from AM Best, a rating agency focused specifically on the insurance industry. Because III recommends obtaining ratings from more than one agency, it is necessary that they obtain at least one “AA-” (“very strong”) from S&P Global or an “Aa3” (“excellent”) or higher from Moody’s.
Simple claims process
You may not think much about your car insurance until you need it, but claims processing is one of the most important factors to consider when deciding to buy car insurance.
In a recent survey, we found that our reader’s biggest complaints about their current insurance company are related to customer service and their final settlement amount. So we used the 2017 JD Power complaint satisfaction survey to find out which insurers had done the best job in resolving claims for their clients. The scores are evaluated on a scale of 1,000 points and all the insurers chosen were placed above 850.
Coverage you must have
The best car insurance companies offer a wide range of coverage options so you can find the plan that fits your specific needs. We demand that our main insurers provide all the basic and essential elements for coverage. This includes liability for bodily injury, collision, comprehensive personal injury protection (PIP), property damage and uninsured or under-insured motorist coverage. For a quick update on what those terms cover, see our auto insurance guide below.
Additional coverage
Beyond the standard protections, supplemental (or “additional”) coverage will keep you protected against those additional costs that accidents often entail. Car rental coverage may not seem essential when you see them only as an additional cost, but the premium increase may be less than the cost of renting a replacement vehicle if your car is getting fixed for a while. The options offered by suppliers vary widely in terms of availability and cost. Our favorite insurers offer complementary coverage options, which can create a policy for each profile.
Great discounts
Discounts keep a low premium when other factors (such as that annoying credit score) do not. These are divided into two main categories: driver and vehicle. We prefer insurers with a wide range of discounts, as those providers could offer cost savings for their customers.
Some, such as paperless billing deductions, are available and do not have special eligibility requirements. The others are determined according to the conditions that are beyond your control, such as the city in which you live or the technology incorporated in your vehicle. While not everyone will be eligible for each discount, companies that offer more discounts provide more opportunities to save.
Top Car Insurance Companies by Market Share
| Rank | Auto Insurance Company | Premiums Written ($bn) | Market Share |
|---|---|---|---|
| 1 | State Farm | $41.8 | 18% |
| 2 | GEICO | $29.6 | 13% |
| 3 | Progressive | $22.8 | 10% |
| 4 | Allstate | $21.4 | 9% |
| 5 | USAA | $13.2 | 6% |
| 6 | Liberty Mutual | $11.6 | 5% |
| 7 | Farmers | $10.4 | 4% |
| 8 | Nationwide | $7.3 | 3% |
| 9 | Travelers | $4.4 | 2% |
| 10 | American Family | $4.4 | 2% |
Travelers Auto Insurance – Complete Guide
Why we chose Travelers Auto Insurance
Full coverage
When it comes to supplementary coverage, Travelers is hard to beat. Well, it had everything we considered “essential” and also offers unique coverage. That includes forgiveness for accidents, GAP insurance and special coverage for drivers working in shared travel operations, such as Uber and Lyft (although this option is currently only available in Colorado and Illinois).
Missing Travelers options are the most specific, such as Progressive’s pet injury protection that covers veterinary bills after an accident. Compared to the competition, Travelers coverage options are the most practical.
Generous discounts
The company discounts are numerous, varied and designed to reward you. Travelers offers deductions for paying your premium on time, enrolling in a policy in advance and even offering discounts for continuous coverage (renew your policy before it expires). These types of discounts are less common than you might think, and show that Travelers not only wants to save money for their new customers, but also cares about keeping their existing customers happy.
Travelers also offers discount for those students who maintain an average of B or higher in school, and even deductions for students in schools away from home, who could be driving only when they are at home on vacation, making it an option Attractive for families with children in college.
Claims Satisfaction Score
Travelers did not inspire enough confidence regarding the satisfaction of their claims. We understand that a survey does not show a complete picture, but Travelers was the insurer with the lowest score of our best choices. Its JD Power score of 851 out of 1,000 is below the industry average, and since our research consistently pointed out that claim satisfaction is the best indicator of customer experience, we cannot give Travelers the best place in confidence.
Progressive Auto Insurance – Best for “high risk” drivers
Why we chose Progressive Auto Insurance
Generous discounts
Progressive impressed us with a solid range of discounts, including deductions for simple things, such as signing a new policy in advance and opting for paperless billing. Historically, the company has been known for insuring “riskier” drivers than many of its competitors, and as it shows: Progressive is our only competitor that offers an almost unheard of discount for drivers under 18 (who have a crash rate almost nine times higher than that of middle-aged drivers).
Usage-based insurance plan
Progressive offers a unique discount through a program called Snapshot, a use-based insurance plan that transmits real driving data to the company. By using a telematics device installed in your vehicle, Snapshot controls your driving behaviors, such as the speed at which you accelerate or the frequency with which you stop abruptly, as well as the miles and hours you drive, which may increase the risk of an accident.
The program uses this data to determine your rates, and if you are a safe and careful driver this could mean an average savings of $130. This plan can save money to low-use drivers and can mark the advent of a new form of insurance.
Limited Supplemental Coverage
Progressive allows policyholders to supplement their coverage with standard additions they usually look for in suppliers, but they did not have enough options to deserving a top-notch place. Since among its options you will not find forgiveness of accidents, coverage for teenage drivers or shared travel coverage.
Progressive also lacks popular coverage such as personal injury, property protection and replacement of new cars. Evaluate your accident history and who you will ensure to get a better idea of what additional coverage you might need. If some of these unique coverage options are relevant to you, you might consider Travelers.
Allstate Auto Insurance – Best for new drivers
Why we chose it Allstate Auto Insurance
Extensive online resources
If you need to get more information about car insurance, want to manage your policy online or file a claim digitally, Allstate can offer that experience online. For auto insurers for new drivers, you can find detailed breakdowns of policy documents, tips for comparing rates and blog articles on how to save money and create a policy for young drivers.
Once you are a customer, you can take advantage of their online portal to adjust their coverage, add or remove vehicles, add new drivers or alter your deductibles.
Discounts for students
Allstate thrives when it comes to discounts for drivers and young students. The company’s Smart Student Discount applies to anyone under 25 who is a full-time student with good grades, has completed the teenSMART driver education program, or attends a school less than 100 miles from home. Young drivers are usually the most expensive to insure; This unique discount can alleviate some of those costs.
Customer Satisfaction Scores
Allstate was below the industry average in the 2017 JD Power general customer satisfaction report. By specifically observing the purchase process, customers noted that Allstate’s policies tend to be more expensive than other insurer’s quotes.
The report also noted that their sales representatives were less useful compared to their competitors. If you recognize this as true, you can also work with your local agent instead of an Allstate sales representative. In our experience, it is possible to obtain a more individualized and attentive service at the local level.
State Farm Auto Insurance – Best for Uber / Lyft drivers
Why we chose State Farm Auto Insurance
Coverage of shared trips
If you drive for shared travel companies like Lyft or Uber, we highly recommend State Farm. It is one of the only insurance companies that extends coverage to rideshare employees. Travelers also offer shared travel coverage, but only in Colorado and Illinois.
In comparison, State Farm offers coverage in 37 states. Typically, shared travel employees would have to purchase a separate commercial car insurance policy, but with State Farm, you can easily add coverage to your car plan.
Financial strength
State Farm has stellar financial strength ratings. From AM Better, he received an “A ++”, from Standard & Poor an “AA”, and from Moody’s an “Aa1”. In other words, you can trust that State Farm will support your claims now and for the next few months.
Claims and customer satisfaction
With almost 18,000 agents across the country, State Farm lives up to your claim as a “good neighbor.” JD Power awarded the company 865/1000, a total of 15 points above the industry average. That is a clear sign that customers are satisfied with the way State Farm handles their car claims.
Mobile application with many code errors
We experience frequent connectivity problems with the State Farm mobile app. This is not a decisive factor, but we were not sure that the application would work during a roadside emergency. If you need to file a complaint, we recommend that you take photos and send them later or call the State Farm helpline directly.
Minimum Discounts
Of the leading car insurers on our list, State Farm has the least amount of discounts. You will not find discounts on the price for young or old drivers, for being a loyal customer, or for having a new car. Most of the discounts they offer are related to safety factors, such as if the car has airbags, anti-lock brakes or if you enroll in a safe driving program. However, the lack of State Farm discounts does not mean that your quote is more expensive, just that you have fewer opportunities to reduce it.
Other car insurance companies to consider
Some popular car insurance companies did not reach our first selection list. Of course, insurance is a personal decision, and some of these companies may offer benefits that exceed our criteria and are important to you. In such cases, it is worth comparing the quotes of our winners with some additional options to see who achieves the best balance between coverage and price.
USAA Auto Insurance
Why is it worth considering?
If you are an active or inactive military member, or if you have a relationship with one, we recommend that you consider USAA for auto insurance. USAA provides exceptional customer service and timely and fair claims payments, as evidenced by the highest ratings in the JD Power customer satisfaction survey and the Consumer Reports complaint satisfaction study. USAA also obtained some of the best possible financial scores: “A ++” from AM The best, “AA +” from S&P Global, and “Aaa” from Moody’s. These ratings mean that USAA promises strong support for its policy, as well as a stable credit outlook in almost any economy.
Why don’t we choose it?
USAA only insures active or inactive members of the armed forces and their families. We do not list it as one of the best options because most people are not eligible for coverage. However, if you qualify for USAA car insurance, we suggest you get a quote, they will offer you great service and you are likely to have a very competitive price.
American Family Auto Insurance
Why is it worth considering?
JD Power and Consumer Reports give American Family high ratings for customer service and claims: two factors that are incredibly important when it comes to insurance. But where AmFam really distinguishes itself is in the discount department. The company offers generous savings opportunities for almost any driver, from price reductions for safe drivers, good students and families, to discounts on vehicle safety features, policy bundling, paperless billing and more. If AmFam is available in your area, try to get a quote to see if these discounts can help you save on car insurance.
Why don’t we choose it?
American Family car insurance was not included in our evaluation because it is only available in 19 states. For this review, we focused on companies that cover 40 states or more (we wanted to be sure that our best choices would be available to most people). But if AmFam writes car insurance policies where you live, it is worth checking out what it offers:
- Arizona
- Colorado
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Minnesota
- Missouri
- Nebraska
- Nevada
- North Dakota
- Ohio
- Oregon
- South Dakota
- Utah
- Washington
- Wisconsin
Auto-Owners Auto Insurance
Why is it worth considering?
Auto-Owners Insurance Group is another powerful contender based on customer ratings. Regarding the satisfaction of the claims, Consumer Reports gives car owners 93 (8th place out of the 27 qualified companies), and JD Power rates the company as “better than most”. It also ranked first in customer satisfaction in the JD Power survey of the north-central region. Automatic owners match the selection of coverage in other major companies. Complements such as roadside assistance, rental reimbursement, GAP insurance, new car replacement and accident forgiveness can help you complete your policy.
Why don’t we choose it?
Like AmFam, this insurance fell in our rankings because it is not available throughout the country. However, unlike AmFam, car owners have a fairly wide scope: it covers approximately half of the nation. If you live in one of the following 26 states, we suggest you check the prices and policies they offer:
- Alabama
- Arizona
- Arkansas
- Colorado
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Michigan
- Minnesota
- Missouri
- Nebraska
- North Carolina
- North Dakota
- Ohio
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Utah
- Virginia
- Wisconsin
Liberty Mutual Auto Insurance
Why is it worth considering?
Liberty Mutual offers some hard-to-find discounts, these include savings for couples of newlyweds, recent graduates, retirees or drivers over 50, and certain drivers under 18. Some of your coverage options are also uncommon, such as options for mechanical breakdown coverage, leakage deductibles or replacement of a new car that reimburses you for the original value of the car (instead of its depreciated value). In summary: Liberty Mutual has some offers for niches, so it may be worth talking to an agent about the needs for specialized and personalized coverage.
Why don’t we choose it?
Customers are not very impressed with the Liberty Mutual claims process or payments. It is ranked among “the rest” in the JD Power survey, which is at the bottom of the scale. He also earned a relatively low score of 88 in Consumer Reports (or 23rd out of 27 qualified companies). Finally, Liberty Mutual did not meet the standards we set for financial stability. Your “A” from S&P Global and “A2” from Moody’s are not sufficient for our requirements. These scores remain respectable, indicating an ability to pay claims, but it means that Liberty Mutual has a slightly weaker credit outlook in the event of a financial crisis.
Farmers Auto Insurance
Why is it worth considering?
JD Power classifies Farmers Auto Insurance better than most in terms of claim satisfaction, an important support, considering that timely and appropriately sized claims payments are the ultimate goal of insurance. On top of that, Farmers has a great selection of coverage. Some options, such as replacement of new cars and custom parts coverage, we did not see among the best insurance options. We also like the company’s accident forgiveness program, which “will forgive an accident for every three years you drive without one.”
Why don’t we choose it?
Farmers Insurance fell very close to the benchmark we set for financial stability. He qualified with an “A” from AM Best (approved) and an “A” from S&P Global (two steps below the “AA-” required). These scores mean that Farmers does not necessarily have a solid financial base although it offers a solid backing for its policy: it is a little less likely to withstand a bigger financial crisis than other companies. That’s why, as Liberty Mutual, we don’t rank it among the best of the best.
Nationwide Auto Insurance
Why is it worth considering?
The selection of Nationwide coverage is more or less on par with companies such as Progressive, Allstate and GEICO. It includes all the main coverage options, from civil liability to uninsured drivers, as well as some add-ons that may be difficult to find elsewhere, such as GAP insurance, shared travel coverage and forgiveness of accidents. Like other major companies, Nationwide also offers many discounts. Customers can save by combining home and car insurance, installing safety devices in their car, taking a defensive driving course, staying without accidents, and more.
Why don’t we choose it?
Nationwide gets lower customer ratings than our best choices. The company obtained 88 from Consumer Reports (placing it in 22nd place among 27 companies) and an “average” rating from JD Power. In other words, Nationwide does not take it out of the park either for customer service or for the claims process, which is crucial for a large insurer. We also lost our financial stability benchmark for one hair, with the S&P Global and Moody ratings just below the “very strong” or “excellent” benchmarks we are looking for.
Guide for car insurance
Make sure you have the basics covered
If you don’t know what type of coverage you need, you are not alone. We have compiled a list of “essential” coverage options that you should look for in any policy, as well as some common complementary coverage options, based on the advice of our insurance experts.
These options are not always included in the standard automatic policies, even those we consider necessary, but adding them will guarantee a basis of protection for any accident:
- Personal injury liability insurance covers injuries to someone caused by the insured. Medical bills accumulate quickly, so it is important to ensure that you have the protection to cover your assets if someone is injured as a result of an accident.
- Collision insurance covers the damage caused by a collision with another car, object or by overturning. Most common accidents are classified as collisions, so this is the coverage you will probably use the most; Be sure to keep the basics covered.
- Full protection covers theft or damage caused by something other than a collision with another car or object. This includes vandalism, natural disasters and animal damage. If you live in an earthquake-prone region or with high deer populations, full coverage will protect you against those environmental factors that are beyond your control.
- Personal injury protection (PIP) / medical payment covers injuries to the driver and / or passengers of the insured’s vehicle. It is not a good idea to reduce costs when you and your passengers receive medical care – as is the responsibility for bodily injury, PIP is important to mitigate the high cost of medical treatment.
- Liability for property damage covers damage to the property of other persons caused by the insured. That includes another driver’s vehicle, fences, telephone poles, buildings and anything else that could be damaged after an accident. Unless you are involved in an accident that only includes your vehicle or property, you are likely to use this coverage.
- Uninsured / underinsured (UM / UIM) drivers cover the costs associated with an accident involving uninsured or underinsured drivers, or those drivers who hit and run away. You cannot control the coverage of other drivers on the road, but if you have an accident with someone who does not have insurance, or who does not have enough protection, you will be forced to face the costs. We know it is frustrating to have to pay for someone else’s negligence, so opting for UM / UIM coverage will be worth it when you need it.
Find the supplemental coverage you need
All our finalists offer the most important coverage, but also provide unique supplemental coverage. We have broken down the options with each provider so you can customize your policy according to your needs. Keep in mind that the more coverage you add, the higher the monthly premium will be.
| Travelers | Progressive | State farm | Allstate | |
| Rental refund | ||||
| Roadside assistance | ||||
| Travel Coverage | ||||
| Umbrella policy | ||||
| Sorry for accident | ||||
| GAP insurance | ||||
| New car replacement | ||||
| Custom parts | ||||
| Pet injury |
Explanation of supplementary auto insurance coverage
Check the minimum coverage requirements of your state
Apart from New Hampshire and Virginia, all states require car owners to purchase auto insurance.
Keep in mind that these requirements are just that: the minimum coverage allowed. If you cause an accident with damages that exceed your policy, you will eventually be responsible for paying the remaining costs, and those costs can increase rapidly. If you live in a state with low minimum requirements, it is a good idea to select additional coverage so you do not run out of paying the bill for car repairs or expensive hospital visits.