Best Auto Insurance Companies for 2021

The best auto insurance companies in the USA vary depending on the driver, vehicle, and location. For example, Progressive, Allstate, and Amica Mutual are three of the best-rated car insurance companies by customers. The best car insurance company for young drivers is GEICO, while the best auto insurance company for seniors is Allstate. The best auto insurance company for military personnel is USAA.

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 15, 2021

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Things to Remember

  • The best auto insurance companies provide you with your required coverage at very competitive prices, are financially sound and have a reputation for being available when needed
  • Most insurance shoppers frequently overlook a company’s financial strength, yet it is a very significant factor
  • Keep in mind that some regional and smaller companies have been around for a long time and have provided excellent service and rates comparable to the national companies

When it comes to picking an insurance provider, cheap auto insurance rates are not the only factor you need to consider. The best auto insurance companies will provide you with affordable coverage, have great customer reviews, and be financially strong.

Auto insurance is legally required in 49 states. As a consumer, you have the right to purchase coverage that is both reliable and affordable from a company you know you can trust. But which companies have the best cheap car insurance? The best coverage options?

In this complete guide, we’ve gathered all of the research for you in one convenient place.

Together, we’ll examine the rates, financial stability, and customer service reputation of the top auto insurance providers in the nation to help you determine which company is right for you.

Are you looking for the best way to compare cheap auto insurance rates by getting quotes from the best auto insurance companies for 2021?

Look no further—we have you covered. Enter your ZIP code into our free comparison tool above to immediately receive rates from the leading insurance companies near you.

Table of Contents

Which insurance companies have the best auto insurance rates?

The annual economic cost of car accidents in the United States is an estimated $242 billion. Here are a few relevant auto insurance statistics provided by the National Highway Traffic Safety Administration:

  • The average automobile liability claim for property damage: $3,231
  • The average liability claim for bodily injury: $15,443
  • The average collision claim: $3,144
  • The average comprehensive claim: $3,144

There are numerous auto insurance companies of varying types and sizes, so choosing who will have your back may be just as risky as driving without insurance.

It turns out that the best auto insurance companies from 2015 are still the leading providers today. Can you believe that only 10 auto insurance companies dominate 72 percent of the national market for private passenger auto insurance?

Even more unbelievable is that only four of those 10 auto insurance companies share 51 percent of the same market.

We aren’t here to tell you which company to choose, but we are here to inform you of nearly every aspect to consider when making your choice.

For this reason, the companies are listed in alphabetical order in all tables.

A cheap auto insurance policy is not always the best policy. However, auto insurance rates are one of the major factors consumers consider when choosing an insurance provider.

Let’s start by comparing the average annual rates from the top 10 auto insurance providers in the United States and discuss availability throughout the nation.

The table below includes each of the top 10 companies, the average annual premium on a national scale compared to the national average for each company, and the cheapest insured vehicle for each.

Top 10 Auto Insurance Companies Average Annual Rates and Overview
Insurance CompanyAvailabilityAverage Annual RatesHigher/Lower than
National Average
Annual Rates
Cheapest Insured
Make and Model
AllstateAll 50 States and D.C.$4,532.9623.82%
(Higher)
2015 Toyota RAV-4
American Family19 States$3,698.771.03%
(Higher)
2015 Honda Civic
FarmersAll 50 States and D.C.$3,907.996.75%
(Higher)
2015 Toyota RAV-4
GEICOAll 50 States and D.C.$3,073.66-16.04%
(Lower)
2015 Toyota RAV-4
Liberty MutualAll 50 States and D.C.$5,295.5544.65%
(Higher)
2015 Toyota RAV-4
Nationwide46 States and D.C.$3,187.20-12.94%
(Lower)
2018 Toyota RAV-4
ProgressiveAll 50 States and D.C.$3,935.367.5%
(Higher)
2015 Toyota RAV-4
State FarmAll 50 States and D.C.$2,731.48-25.39%
(Higher)
2015 Honda Civic
Travelers42 States and D.C.$3,729.321.87%
(Higher)
2015 Ford F-150
USAA
(Military & Family Members)
All 50 States and D.C.$2,489.49-32%
(Lower)
2015 Honda Civic
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Of the top 10 auto insurance companies, only American Family, Nationwide, and Travelers do not operate in all 50 states. If you would like to consider one of these three companies, be sure to read our company reviews to make sure they’re an option for you.

Looking closely at the table, you’ll see that USAA and State Farm have the lowest premiums nationally. However, this doesn’t mean you should immediately dial the number for these providers.

USAA almost always offers some of the best prices regardless of your age, gender, or place in life. However, this company only writes for military personnel and their family members. If you aren’t affiliated with the military, you will have to look elsewhere.

Now you may be leaning toward State Farm. However, depending on where in the country you live, this may not necessarily be your best option. Our researchers have found that location and carrier are the two most influential factors in determining rates.

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What are the best auto insurance companies with the lowest rates?

Some of the best-rated insurance companies can have the lowest rates. Below, you will find the top 10 auto insurance companies in the USA:

  • State Farm
  • GEICO
  • Progressive
  • Allstate
  • USAA
  • Liberty Mutual
  • Farmers Insurance
  • Nationwide
  • Travelers
  • American Family

Wondering which of these companies is best for customer service? What if you want a local agent? Keep reading for more on company offerings.

What should you know before buying auto insurance?

Choosing the right auto insurance company can be a long and difficult process. The first step in choosing the right insurance provider is not just finding your cheapest quote. Comparing quotes should be your final step.

Should you research types of coverage?

A great place for you to start your search is by looking up information about the main types of coverage and evaluating your budget.

Let’s look at this list of basic coverages you may need:

  • Bodily Injury Liability (BI) – A coverage that pays for the bodily injury of other drivers and passengers (if any) when you’re at fault in an accident.
  • Property Damage Liability (PD) – This coverage pays for the cost of property damage you caused in an accident.
  • Collision Coverage – A coverage that pays for your vehicle’s damage costs regardless of who was at fault.
  • Comprehensive Coverage – This coverage pays for damage to your vehicle that doesn’t involve a collision, such as vandalism, theft, fires, storms, etc.
  • Underinsured Motorist Coverage (UIM) – A coverage that provides compensation if an at-fault driver doesn’t have enough on their coverage limits to pay for property damage or bodily injury.
  • Uninsured Motorist Coverage (UM) – This insurance coverage will recover property damage and bodily injury when you’re hit by a hit-and-run driver or involved in an accident with a driver who has no auto insurance.
  • Personal Injury Protection (PIP) – A coverage that pays for bodily injury and lost wages regardless of who is at fault.
  • Medical Payments (MedPay) – This is an extra coverage option to help you with medical bills that liability or PIP doesn’t cover.

Don’t assume that you will get the same coverage and rates from each company. You will likely receive very diverse rates because no two companies use the same equation when calculating rates or providing the same coverage options.

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What factors affect your auto insurance rates?

The best auto insurance company for you depends on where you live, the laws in your state, and several other factors unique to you. Those factors include, but are not limited to, your age, driving record, ZIP code, credit history, the type of vehicle you drive, and even how often you drive.

Do auto insurance cancellations come with a fee?

Before moving on, keep this important tip in mind: If you’re tired of paying high premiums and you find a more affordable policy option from our guide, make sure to check the fine print on your existing policy before canceling it midterm.

Midterm cancellations are allowed, and you can purchase a new auto insurance policy at any time. However, it is important to check with your insurance company and your state’s regulations to determine if you will need to pay any cancellation fees.

To completely avoid cancellation fees, switch providers when your policy is up for renewal.

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What is the financial stability of auto insurance companies?

Another facet consumers should consider before choosing an insurance company is the provider’s financial stability. Your insurer should be able to pay out a claim even in the event of an economic downturn.

An insurance provider’s future financial stability is judged by its historic financial stability, especially compared to its top competitors. Also, third-party entities such as A.M. Best use an intricate algorithm to rate and predict a company’s financial stability.

The National Association of Insurance Commissioners (NAIC) releases an annual report, available to consumers, that examines all auto insurance companies’ financial stability. Three figures consumers like yourself can use to judge the financial stability of a company are as follows:

  • Direct Premiums Written: the total dollar amount in premiums received by an insurance company without any adjustments
  • Market Share: indicates the percent of market concentration in a line of business a company controls
  • Loss Ratio: a percent that represents the amount paid out on claims against what a company earns in premiums

The table below shows these three figures for the top 10 companies in the auto insurance market for 2018 and indicates whether they’re rising, falling, or remaining steady based on the NAIC data from 2015 through 2018.

To see more specific trend data for these three figures, check out our company reviews.

Highest Rated Auto Insurance Companies
Insurance CompanyA.M. Best RatingsDirect Premiums Written
(in Billions)
Market Shares
(in Percent)
Loss Ratios
(in Percent)
AllstateA+ (Superior)$22.7 (↑)9.19% (↓)56% (↓)
American FamilyA (Excellent)$4.7 (↑)1.9% (↑)69% (~)
FarmersA (Excellent)$10.5 (↑)4.26% (↓)61% (~)
GEICOA++ (Superior)$33.1 (↑)13.41% (↑)71% (~)
Liberty MutualA (Excellent)$11.8 (↑)4.77% (↓)62% (~)
NationwideA+ (Superior)$6.7 (↓)2.73% (↓)58% (↓)
ProgressiveA+ (Superior)$27.1 (↑)10.97% (↑)62% (~)
State FarmA++ (Superior)$41.9 (↑)17.01% (↓)63% (↓)
TravelersA++ (Superior)$4.7 (↑)1.9% (↑)60% (~)
USAA
(Military &
Family Members)
A++ (Superior)$14.5 (↑)5.87% (↑)77% (~)
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It’s assumed that any company’s goal is to increase profits, but the level of competition and financial stability is seen mostly in market share and loss ratios, especially in the top 10 companies.

Later in this article, we will take a closer look at the top four contenders and the history of brutal battles toward winning market share wars that have been ongoing since the early to mid-1900s. It is very much akin to an epic movie battle sequence.

Note that loss ratios can fluctuate from year to year, but they should still stay in the safe zone between 60 and 70 percent. A loss ratio that is lower than 60 percent shows the company is not paying out on claims. A loss ratio above 70 percent shows the company may be losing money.

If you like to geek out on ratings, all of our company reviews provide additional financial stability ratings from Moody’s and Standard & Poor’s.

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What should you know about customer reviews?

Judging a company by rates and financial stability is a great start, but what about customer service? When choosing or changing auto insurance companies, it is important to examine both new and recurring customer satisfaction ratings.

You should also look into the company’s claims filing process. Getting into a car accident is stressful enough. You don’t want to learn that your provider’s claims process is slow, confusing, and frustrating when it’s already too late.

Fortunately, the professionals at J.D. Power collect data on both new and recurring customer satisfaction ratings. J.D. Power is a well-known go-to source for customer ratings of all sorts. Here’s a look into the 2019 J.D. Power Rating Scores.

J.D. Power Auto Insurance Regional Ratings
Auto Insurance CompaniesAverage J.D. Power Regional Ratings (out of 1,000)
GEICO830
Allstate826
Progressive818
Auto-Owners Insurance*841
Esurance*836
Liberty Mutual Insurance810
Nationwide808
Travelers Insurance*818
Safeco*810
USAA*891
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The “*” is an indicator that means the company is not available in all United States areas.

J.D. Power’s comprehensive surveys are completed by over 40,000 participants, making the results trustworthy and reliable.

For example, one of the questions in a 2011 survey that J.D. Power asked of respondents was about the speed and frequency in which auto insurance companies pay claims and treat customer interactions:

  • For those companies who quickly settle claims for their policyholders, the ratings on this variable were high
  • For other companies who regularly deny claims or are slow to pay, customers rated these businesses as poor

Any auto insurance policyholder wants to be sure that their claim will be handled quickly and efficiently if they ever need to file a claim.

No one anticipates having a claim denied when they are in an accident. The companies that settle claims quickly are bound to keep their customers happy and retain their consumer base.

We share data from two of J.D. Power’s annual surveys: the U.S. Auto Claims Satisfaction Study and the Insurance Shopping Study.

J.D. Power uses “Power Circle Ratings.” These ratings are calculated based on the range between the highest score and the lowest score per survey item and awards a company in that range with one to five circles.

Five circles means the company is among the best and one circle is the lowest possible rating. J.D. Power may assign one or more power circles to any company; however, the company only publicly announces and publishes ratings that are two power circles or higher.

In other words, Power Circle Ratings work like a distribution curve grouping the companies in the top 10 to 20 percent.

This essentially makes companies that did exceptionally well in a category make companies that only did well in the same category look less appealing. Distribution curves work particularly well in a competitive environment.

The table below shows J.D. Power Circles awarded in two categories: satisfaction of new customers and satisfaction of customers that file a claim. We also provide some definitions for what the circles mean. Check it out.

Best Auto Insurance Companies: J.D. Power Ratings and Complaint Ratios
Insurance Company Overall Satisfaction of Shopping Experience
(J.D. Power Rating)
Overall Satisfaction of Claims Process
(J.D. Power Rating)
Complaint Ratios
(Lower or Higher than National Average of 1.15)
Allstate3 Power Circles
(about average)
3 Power Circles
(about average)
0.64
(Lower)
American Family4 Power Circles
(better than most)
3 Power Circles
(about average)
0.70
(Lower)
Farmers3 Power Circles
(about average)
4 Power Circles
(better than most)
0.97
(Lower)
GEICO3 Power Circles
(about average)
3 Power Circles
(about average)
0.92
(Lower)
Liberty Mutual3 Power Circles
(about average)
2 Power Circles
(the rest)
6.32
(Higher)
Nationwide2 Power Circles
(the rest)
3 Power Circles
(about average)
0.36
(Lower)
Progressive3 Power Circles
(about average)
3 Power Circles
(about average)
0.89
(Lower)
State Farm3 Power Circles
(about average)
3 Power Circles
(about average)
0.57
(Lower)
Travelers3 Power Circles
(about average)
3 Power Circles
(about average)
1.27
(Higher)
USAA
(Military &
Family Members)
4 Power Circles
(better than most)
5 Power Circles
(among the best)
1.14
(Lower)
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The NAIC also tracks official complaints about how auto insurance companies do business. This agency calculates a complaint ratio for each company and compares it to the collective national complaint ratio.

The complaint ratio is determined by looking at the number of complaints per year per $1 million of premiums earned by the total in annual premiums.

In 2018, the collective national complaint ratio was 1.15; a ratio lower than 1.15 is good, one higher than 1.15, not so good. But you’ve got to look at both sides of the coin.

For example, USAA has some of the country’s best rates, and J.D. Power awarded them five Power Circles on handling claims. However, they have one of the highest complaint ratios under the collective national complaint ratio of 1.15.

Nationwide is in a similar situation, except J.D. Power awarded them three Power Circles on handling claims, though they have the lowest complaint ratio out of the top 10 companies.

It’s difficult to say if any of the official complaints submitted for both USAA and Nationwide were related to handling claims, but this is a great example of how important it is to do your own research about each company from every angle.

To dig into consumers’ opinions, all 10 of our company reviews provide additional customer satisfaction ratings from both Consumer Reports and the Better Business Bureau.

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What is the NAIC market share?

We talked about J.D. Power’s ratings in the previous sections, but we didn’t go over NAIC’s Market Share results. The NAIC is one of the most reliable insurance database agencies out there.

We researched the market share of major auto insurance companies and summarized them in the data below.

NAIC Auto Insurance Market Share
Auto Insurance CompaniesNAIC Market Share
State Farm16.14%
GEICO13.78%
Progressive12.25%
Allstate9.33%
USAA6.01%
Farmers4.16%
Nationwide2.47%
Erie Insurance1.34%
The Hartford0.80%
Amica Mutual0.50%
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State Farm, GEICO, and Progressive are the top three auto insurance companies in the NAIC Market Share. Expect these three companies to be in the top 10 in all other research data across the internet.

Although State Farm, GEICO, and Progressive are among the top companies in the country, they may not be the best companies for you. Compare car insurance companies in your area by entering your ZIP code in our FREE online quote tool.

What are the 10 best auto insurance companies known for?

When looking at the top 10 auto insurance companies, you might mistakenly believe that you can simply pick one of them, purchase a policy, and be on your way. However, you would be doing yourself a disservice, as not all companies are right for all drivers.

This is because each company uses different equations when calculating rates. Think about it: To remain both competitive and relevant, each company needs to find its niche in the market.

Therefore, some companies might market towards millennials, and others might market more towards senior drivers.

For example, if you are under the age of 25, you will want to make sure you seek out a quote from GEICO. Rates from GEICO are purposefully lower than competitor rates for younger drivers.

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What about the best company for drivers with poor credit?

If your credit isn’t the best, Progressive may be your best bet.

Ultimately, who you choose to have your back is your choice and your choice only. But we’ve gathered data about each of the top 10 companies to help you determine who the target audience is for each provider.

In the table below, we have listed out by company the total number of discounts advertised or confirmed, the highest percent discount, and our opinion of what kind of customer each is best for. You’ll also find links to our specific company reviews.

Take a closer look.

Best Auto Insurance Companies: Discounts Offered By Company
Insurance CompanyTotal Number of DiscountsHighest Percent DiscountBest forOur Company Review
Allstate2945%Usage-based and
pay-as-you-drive
policies
Allstate Review
American Family2740%Best value in
coverage level
and 60+
American Family Review
Farmers345%Married and
longer commute
Farmers Review
GEICO3140%Teen drivers and
those with a speeding
ticket or accident
Geico Review
Liberty Mutual3835%Vehicle recovery
system discount
Liberty Mutual Review
Nationwide3540%Teen drivers and
best value in
coverage level
Nationwide Review
Progressive3631%Poor credit and DUIProgressive Review
State Farm1950%Poor driving record
and 60+
State Farm Review
Travelers2830%Middle-aged drivers
and poor credit
Travelers Review
USAA2815%Military
(especially if single)
USAA Review
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Just because an auto insurance company has the best rates doesn’t mean you’ll truly value what that company is offering. Hopefully, the data provided above will help you find the provider most compatible with you.

How do you choose between major and small auto insurance companies?

We’re looking at the top 10 companies in this article, but those providers are all major national businesses. Sometimes, local companies might be the best choice for your auto insurance policy.

To help you choose without feeling overwhelmed, we’ve created a list of key factors and questions to consider before you even seek out a quote to lighten the load. Take a look.

  • Do I want to conduct business with an agent, with a broker, directly with the provider, online-only, through a national company, or with a local company?
  • What is each company’s financial stability, and what are their positions for the future when it comes to market share, loss ratios, and third-party rankings?
  • Which company offers the best coverage and the most appropriate discounts and rates for my unique characteristics and needs?
  • How satisfied are the customers of each company with the services and claims process?
  • How many and what types of complaints have customers issued against each company?

To help you determine if you want to use a small auto insurance company or one of the larger companies, ask yourself your main priority for the company you use.

Maybe you care more about customer service than cheap rates. A small company might be right for you.

Do small auto insurance companies offer the best rates? Not always. However, the customer experience is often much more personable and family-like through a small company than through the major providers.

Or perhaps you want to have lots of policy options, even if it means sacrificing good customer service. Larger companies are usually able to offer more varieties of discounts and more unique additional policies.

Sometimes, small auto insurance companies operate under the control of the major insurers. So check to see if that local agency you’re eyeing is part of a bigger group.

Moreover, major insurance companies have an easier time diversifying their services towards all car owners. On the other hand, local agencies will target more specific drivers, like people who own classic or collectible cars.

As you can see, determining whether major auto insurance companies are better than smaller ones is dependent on several individual factors and preferences. At the end of the day, pick the company that’s best for you.

What factors affect my auto insurance rate?

When you obtain a quote from an auto insurance company, you’ll be asked a series of questions. Your answers to those questions will help the company generate your auto insurance rate.

You may be wondering, “what factors affect my rate?” Nine major factors are used in most states, and the top 10 companies use these factors to determine how much you’ll pay in premiums.

Insurance companies claim statistics show drivers with some of these characteristics as lower risk, but the numbers also sometimes make assumptions that are not always true about individual drivers.

The nine major factors are as follows:

  1. Where You Live: The state you live in has specific laws about auto insurance. This is the number-one factor in determining your rate.
  2. Age: Insurance companies assume age correlates to the driving experience. With more driving experience and maturity, we become safer drivers.
  3. Gender: In some cases, rates for males are higher than females because of the assumption that men are more adventurous and risky, and fatal crash statistics back up that claim. However, some states have banned using gender as a means for determining auto insurance rates.
  4. Marital Status and Homeownership: Insurance companies consider being married and owning a home to be signs of stability and responsibility, so they assume that married homeowners carry less risk. Homeowners can bundle auto and homeowner’s insurance policies, which leads to major savings. In a similar vein, married couples usually own more than one vehicle and qualify for multi-car discounts.
  5. Level of Education: Similar to marital status and homeownership, the assumption is that people with higher levels of education will also be more responsible and safer. However, your rates are only minimally impacted by education level.
  6. Vehicle Year, Make, and Model: What you choose to drive makes a huge difference in your rate based on safety ratings, cost of repairs, and, sometimes, the amount of damage your vehicle can do to another car if in an accident.
  7. Credit Score: Along with education, marital status, and homeownership, your credit score can reflect how responsible you are. However, some states have banned using credit scores as a means for determining auto insurance rates.
  8. Driving Record: Your driving record can majorly impact your auto insurance rates. If you have a history of speeding tickets, accidents, or DUIs, you are considered a more risky driver and will pay higher rates in most cases.
  9. Commute Distance: If you drive more, you statistically increase your chances of getting in an accident. Therefore, those who drive more than average can sometimes receive higher rates.

While some of these factors make sense, we understand that some of them may make you feel a little uncomfortable. For example, many consumers argue that gender and credit scores are not accurate reflections of a person’s driving risk.

Take a look at some of the states that have enacted laws or bans on some of the more problematic factors that can impact auto insurance rates:

  • Determining rates based on gender has been outlawed in California, Hawaii, Massachusetts, Montana, Pennsylvania, North Carolina, and Michigan.
  • Montana was one of the first states to outlaw determining rates based on gender and marital status. The law was enacted in 1985.
  • California, Massachusetts, and Hawaii have outlawed using consumer credit information to determine rates.
  • In July of 2020, a new law passed in Michigan prohibiting insurance carriers from determining rates based on anything but driving record, age, the vehicle you choose to drive, and possibly location.

Keep a close eye on your state legislation because it may not be too long before other states start to follow in these footsteps.

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What should you know about auto insurance discounts?

The best auto insurance companies often have many different discounts that you can stack together and add up to get major savings. For example, auto insurance providers love to create discounts for major life changes, like college, marriage, and even employment.

However, you can also get discounts based on the type of car you drive and the safety features or anti-theft devices that are installed. You can also receive discounts based on your customer loyalty and for the safe choices you make on the roads.

Some discounts might only be for a few percentage points, but others can lead to 30 or even 40 percent in savings.

Most of the higher-percent discounts provided are granted when using a company’s usage-based driving app or specially designed equipment installed in your vehicle.

For example:

  • American Family, Nationwide, State Farm, and Travelers offer their highest discounts when using their usage-based programs.
  • GEICO offers its best discount for having airbags in your vehicle.
  • Liberty Mutual provides a great discount if you sign up for vehicle recovery services.
  • Allstate and Progressive choose to reward customers for having a good driving record when they sign on.

To learn in-depth details about the top 10 insurance carriers’ discounts, read our article about auto insurance discounts.

Because laws and discounts can change, we have included data based on as many of these characteristics as possible to help you consider one of the top 10 auto insurance companies in the nation.

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What are the best auto insurance companies for 2021?

Remember that war we referenced earlier? Four companies—Allstate, GEICO, Progressive, and State Farm—have dominated the auto insurance industry for quite some time now.

We looked as far back as possible on NAIC’s website (2004) and found something interesting: In 2018, these four companies claimed over half the entire auto insurance industry’s market share, but it hasn’t always been that much.

In 2004, these four companies claimed only 41 percent. In a roughly 15-year period, they fought for and gained 10 percent of market share from other companies in the top 10.

Comparing market share in 2004 and market share in 2018 shows who has won the battles and who might win the war. See what we mean in the table below.

Best Auto Insurance Companies by Market Share: The Top Four
Insurance Company2004 Market Share
(in percent)
2018 Market Share
(in percent)
Growth / Decline
(in percent)
Allstate10.21%9.19%-1.02%
GEICO5.49%13.41%+7.92%
Progressive7.12%10.97%+3.85%
State Farm18.52%17.01%-1.51%
Total market share
of the top four
41.34%50.58%+9.24%
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As you can see, GEICO has grown the most over the last 15 years, followed by Progressive, while State Farm and Allstate have lost market share.

But, when you look at the period between 2013 and 2018, GEICO is closing the market share gap with State Farm, and Progressive is closing the gap in market share with GEICO.

See what we mean in the chart below.

As you can see, unlike GEICO and Progressive, Allstate has dropped just slightly in regards to market share.

Based on 2018 financials, State Farm is still well in the lead in total direct premiums written. And both GEICO and Progressive have conquered Allstate in 2013 and 2017, respectively.

Check out the details in the chart below.

What sets these four auto insurance leaders apart from one another? There are a few key differences:

  • Allstate offers only an agent-based model.
  • GEICO offers internet-based policies dealing directly with the customers, and they also partner with investors.
  • Progressive offers both agents and internet-based policies.
  • State Farm is a mutual company owned by its customers, all shouldering risks and rewards equally.

It can’t be said yet which business model will win the war, but you have options as the consumer. Your unique needs and preferences will ultimately determine the best auto insurance company for you.

What are the best auto insurance companies by region?

If you plan to move a state or two over, up, or down, these tables may help. Sometimes, when moving to a different state, your current carrier may not have the best auto insurance rates even within the same region.

In some cases, neighboring states have much cheaper auto insurance. It may be more feasible to move there and commute to work or ride the subway.

We’ve broken down the 50 states into regions so you can take a quick look at the average rate of your current (or future) insurance provider.

Let’s start with the Midwest. Find your state in the table below and see which company offers competitive rates near you.

Best Auto Insurance Companies in the Midwest Average Annual Rates by State
StateAllstate Average Annual Auto Insurance RatesAmerican Family Average Annual Auto Insurance RatesFarmers Average Annual Auto Insurance RatesGEICO Average Annual Auto Insurance RatesLiberty Mutual Average Annual Auto Insurance RatesNationwide Average Annual Auto Insurance RatesProgressive Average Annual Auto Insurance RatesState Farm Average Annual Auto Insurance RatesTravelers Average Annual Auto Insurance RatesUSAA Average Annual Auto Insurance Rates
Illinois$5,204.41$3,815.31$4,605.20$2,779.16$2,277.65$2,711.81$3,536.65$2,344.88$2,499.76$2,770.21
Indiana$3,978.81$3,679.68$3,437.55$2,261.07$5,781.35Data Not Available$3,898.00$2,408.94$3,393.75$1,630.86
Iowa$2,965.86$3,021.81$2,435.72$2,296.16$4,415.28$2,735.44$2,395.50$2,224.51$5,429.38$1,852.57
Kansas$4,010.23$2,146.40$3,703.77$3,220.65$4,784.42$2,475.59$4,144.38$2,720.00$4,341.43$2,382.61
Michigan$22,902.59Data Not Available$8,503.60$6,430.11$20,000.04$6,327.38$5,364.55$12,565.52$8,773.97$3,620.00
Minnesota$4,532.01$3,521.29$3,137.45$3,498.54$13,563.61$2,926.49Data Not Available$2,066.99Data Not Available$2,861.60
Missouri$4,096.15$3,286.90$4,312.19$2,885.33$4,518.67$2,265.35$3,419.14$2,692.91Data Not Available$2,525.78
Nebraska$3,198.83$2,215.13$3,997.29$3,837.49$6,241.52$2,603.94$3,758.01$2,438.71Data Not Available$2,330.78
North Dakota$4,669.31$3,812.40$3,092.49$2,668.24$12,852.83$2,560.35$3,623.06$2,560.53Data Not Available$2,006.80
Ohio$3,197.22$1,515.17$3,423.01$1,867.19$4,429.74$3,300.89$3,436.96$2,507.88$3,135.16$1,478.46
South Dakota$4,723.72$4,047.47$3,768.80$2,940.29$7,515.99$2,737.66$3,752.81$2,306.23Data Not AvailableData Not Available
Wisconsin$4,854.41$1,513.27$3,777.49$3,926.20$6,758.85$5,224.99$3,128.91$2,387.53Data Not Available$2,975.74
Average$5,694.46$2,961.35$4,016.21$3,217.54$7,761.66$3,260.90$3,678.00$3,268.72$4,595.58$2,403.22
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There exists at least a $2,200 difference between the highest rate and the lowest rate per state. Some companies have a difference of $19,000 or less. However, we’re specifically referencing Allstate’s rates in Michigan. As you can see, it literally pays to shop around.

Next, let’s take a look at the Northeast. If you’re a New Englander, find your state in the table below to determine what companies offer the lowest annual rates on average near you.

Best Auto Insurance Companies Rates in the Northeast by State
StateAllstate Average Annual Auto Insurance RatesFarmers Average Annual Auto Insurance RatesGEICO Average Annual Auto Insurance RatesLiberty Mutual Average Annual Auto Insurance RatesNationwide Average Annual Auto Insurance RatesProgressive Average Annual Auto Insurance RatesState Farm Average Annual Auto Insurance RatesTravelers Average Annual Auto Insurance RatesUSAA Average Annual Auto Insurance Rates
Connecticut$5,831.60Data Not Available$3,073.66$7,282.87$3,672.34$4,920.35$2,976.24$6,004.29$3,190.00
Maine$3,675.59$2,770.15$2,823.05$4,331.39Data Not Available$3,643.59$2,198.68$2,252.97$1,930.79
Massachusetts$2,708.53Data Not Available$1,510.17$4,339.35Data Not Available$3,835.11$1,361.86$3,537.94$1,458.99
New Hampshire$2,725.01Data Not Available$1,615.02$8,444.41$2,491.10$2,694.45$2,185.46Data Not Available$1,906.96
New Jersey$5,713.58$7,617.00$2,754.94$6,766.62Data Not Available$3,972.72$7,527.16$4,254.49Data Not Available
New York$4,740.97Data Not Available$2,428.24$6,540.73$4,012.93$3,771.15$4,484.58$4,578.79$3,761.69
Pennsylvania$3,984.12Data Not Available$2,605.22$6,055.20$2,800.37$4,451.00$2,744.23$7,842.47$1,793.37
Rhode Island$4,959.45Data Not Available$5,602.63$6,184.12$4,409.63$5,231.09$2,406.51$6,909.45$4,323.98
Vermont$3,190.38Data Not Available$2,195.71$3,621.08$2,128.21$5,217.14$4,382.84Data Not Available$1,903.55
Average$4,169.91$5,193.58$2,734.29$5,951.75$3,252.43$4,192.96$3,363.06$5,054.34$2,533.67
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For the Northeast, the difference between the highest rate and the lowest rate for each state is between $2,200 and $6,800. Therefore, the spread isn’t quite as wide as the Midwest.

Now we move to the Southeast. Check out annual auto insurance rates by state for the Southeast down below.

Best Auto Insurance Companies Rates in the Southeast by State
STATEAllstate Average Annual Auto Insurance RatesFarmers Average Annual Auto Insurance RatesGEICO Average Annual Auto Insurance RatesLiberty Mutual Average Annual Auto Insurance RatesNationwide Average Annual Auto Insurance RatesProgressive Average Annual Auto Insurance RatesState Farm Average Annual Auto Insurance RatesTravelers Average Annual Auto Insurance RatesUSAA Average Annual Auto Insurance Rates
Alabama$3,311.52$4,185.80$2,866.60$4,005.48$2,662.66$4,450.52$4,798.15$3,697.80$2,124.09
Arkansas$5,150.03$4,257.87$3,484.63Data Not Available$3,861.79$5,312.09$2,789.03$5,973.33$2,171.06
Delaware$6,316.06Data Not Available$3,727.29$18,360.02$4,330.21$4,181.83$4,466.85$4,182.36$2,325.98
Florida$7,440.46Data Not Available$3,783.63$5,368.15$4,339.60$5,583.30$3,397.67Data Not Available$2,850.41
Georgia$4,210.70Data Not Available$2,977.20$10,053.44$6,484.90$4,499.22$3,384.88Data Not Available$3,157.46
Kentucky$7,143.92Data Not Available$4,633.59$5,930.97$5,503.23$5,547.63$3,354.32$6,551.68$2,897.89
Louisiana$5,998.79Data Not Available$6,154.60Data Not AvailableData Not Available$7,471.10$4,579.12Data Not Available$4,353.12
Maryland$5,233.17Data Not Available$3,832.63$9,297.55$2,915.69$4,094.86$3,960.87Data Not Available$2,744.14
Mississippi$4,942.11Data Not Available$4,087.21$4,455.94$2,756.53$4,308.85$2,980.48$3,729.32$2,056.13
North Carolina$7,190.43Data Not Available$2,936.69$2,182.71$2,848.03$2,382.61$3,078.65$3,132.66Data Not Available
South Carolina$3,903.43$4,691.85$3,178.01Data Not Available$3,625.49$4,573.08$3,071.34Data Not Available$3,424.77
Tennessee$4,828.85$3,430.07$3,283.42$6,206.69$3,424.96$3,656.91$2,639.30$2,738.52$2,739.28
Virginia$3,386.80Data Not Available$2,061.53Data Not Available$2,073.00$2,498.58$2,268.95Data Not Available$1,858.38
West Virginia$3,820.68Data Not Available$2,120.80$2,924.39Data Not AvailableData Not Available$2,126.32Data Not Available$1,984.62
Average$5,205.50$4,141.40$3,509.13$6,878.53$3,735.51$4,504.66$3,349.71$4,286.52$2,668.26
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With 14 states, the Southeast is the largest region in the nation. The discrepancy between the highest and lowest rate isn’t quite as drastic as the Midwest, but it’s close.

Drivers in the Southeast expect to pay a difference of up to $16,000, depending on which company they choose.

Next, we shift over to the Midwest, the smallest of the regions. Find your state below.

Best Auto Insurance Companies in the Southwest by State
StateAllstate Average Annual Auto Insurance RatesAmerican Family Average Annual Auto Insurance RatesFarmers Average Annual Auto Insurance RatesGEICO Average Annual Auto Insurance RatesLiberty Mutual Average Annual Auto Insurance RatesNationwide Average Annual Auto Insurance RatesProgressive Average Annual Auto Insurance RatesState Farm Average Annual Auto Insurance RatesTravelers Average Annual Auto Insurance RatesUSAA Average Annual Auto Insurance Rates
Arizona$4,904.10Data Not Available$5,000.08$2,264.71Data Not Available$3,496.08$3,577.50$4,756.25$3,084.74$3,084.29
New Mexico$4,200.65Data Not Available$4,315.53$4,458.30Data Not Available$3,514.38$3,119.18$2,340.66Data Not Available$2,296.77
Oklahoma$3,718.62Data Not Available$4,142.40$3,437.34$6,874.62Data Not Available$4,832.35$2,816.80Data Not Available$3,174.15
Texas$5,485.44$4,848.72Data Not Available$3,263.28Data Not Available$3,867.55$4,664.69$2,879.94Data Not Available$2,487.89
Average$4,577.20$4,848.72$4,486.00$3,355.91$6,874.62$3,626.00$4,048.43$3,198.41$3,084.74$2,760.78
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The playing field is smaller in the Southwest; there are only four states. Their situation is similar to the Northeast.

Drivers in the Southwest will see a difference between the highest rate and the lowest rate somewhere between $2,100 and $4,100, so that’s still worth the time to research and choose the best company for you.

Finally, we move to the West Coast. Take a look.

Best Auto Insurance Companies in the West by State
STATEAllstate Average Annual Auto Insurance RatesAmerican Family Average Annual Auto Insurance RatesFarmers Average Annual Auto Insurance RatesGEICO Average Annual Auto Insurance RatesLiberty Mutual Average Annual Auto Insurance RatesNationwide Average Annual Auto Insurance RatesProgressive Average Annual Auto Insurance RatesState Farm Average Annual Auto Insurance RatesTravelers Average Annual Auto Insurance RatesUSAA Average Annual Auto Insurance Rates
Alaska$3,145.31$4,153.07Data Not Available$2,879.96$5,295.55Data Not Available$3,062.85$2,228.12Data Not Available$2,454.21
California$4,532.96Data Not Available$4,998.78$2,885.65$3,034.42$4,653.19$2,849.67$4,202.28$3,349.54$2,693.87
Colorado$5,537.17$3,733.02$5,290.24$3,091.69$2,797.74$3,739.47$4,231.92$3,270.77Data Not Available$3,338.87
Hawaii$2,173.49Data Not Available$4,763.82$3,358.86$3,189.55$2,551.83$2,177.93$1,040.28Data Not Available$1,189.35
Idaho$4,088.76$3,728.79$3,168.28$2,770.68$2,301.51$3,032.19Data Not Available$1,867.96$3,226.29$1,877.61
Montana$4,672.10Data Not Available$3,907.55$3,602.35$1,326.11$3,478.26$4,330.76$2,417.74Data Not Available$2,031.89
Nevada$5,371.62$5,441.18$5,595.56$3,662.09$6,201.55$3,477.14$4,062.57$5,796.34$5,360.41$3,069.07
Oregon$4,765.95$3,527.28$3,753.52$3,220.12$4,334.55$3,176.83$3,629.13$2,731.48$2,892.19$2,587.15
Utah$3,566.42$3,698.77$3,907.99$2,965.57$4,327.76$2,986.57$3,830.10$4,645.83Data Not Available$2,491.10
Washington$3,540.52$3,713.02$2,962.00$2,568.65$3,994.73$2,129.84$3,209.52$2,499.78Data Not Available$2,262.16
Wyoming$4,373.93Data Not Available$3,069.35$3,496.56$1,989.36$3,187.20$4,401.17$2,303.55Data Not Available$2,779.53
Average$4,160.75$3,999.30$4,141.71$3,136.56$3,526.62$3,241.25$3,578.56$3,000.38$3,707.11$2,434.07
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When it comes to auto insurance rates, the West is the most fortunate region in the United States. There is only a $1,800 and $3,700 difference in rates, depending on the company chosen in each state.

Regardless of what part of the country you live in, one thing is clear: Shopping around for auto insurance really pays off. To truly find the best auto insurance company for you, you’re going to want to seek out multiple quotes from as many providers as possible.

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What are the best auto insurance companies by state?

The state in which you live has a huge influence on your rate. Every state is different, and it usually has a lot to do with the laws.

For example, one dividing factor between 11 states and the remaining 39 is whether or not their laws are at-fault-based or no-fault-based.

In no-fault states, the law requires that policyholders turn to their own insurance company for claims, regardless of who is at fault in an accident. In at-fault states, the claim goes through the auto insurance company of the driver who is responsible for causing the accident.

Typically, no-fault states require drivers to purchase a certain amount of personal injury protection (PIP), which is elective in most at-fault states. Some no-fault states have outrageous rates, such as Michigan, New Jersey, and Florida.

Florida provides some options for its residents but still requires a minimum of $10,000 in PIP. New Jersey also provides options in PIP coverage up to $250,000. Until July of 2020, Michigan required drivers to pay for an unlimited amount of PIP coverage.

The table below compares Michigan, New Jersey, and Florida.

Michigan, Florida, and New Jersey: Total Cost of Incurred Losses and Claims
StateTotal Cost of Incurred LossesTotal Number of Incurred Claims
Michigan$3.6 billion44,626
Florida$2.6 billion372,197
New Jersey$1.2 billion92,100
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In 2015, Michigan auto insurance companies had only 12 percent of the total PIP claims that Florida did, yet insurance companies were forced to pay out a billion dollars more in losses than Florida insurance companies. This makes clear why Michigan’s laws recently changed.

Then there’s Louisiana, an at-fault state with an entirely separate law permitting drivers to sue the insurance companies directly if their policyholder doesn’t have enough coverage for the damages and injuries after an accident.

This law results in higher rates due to an overcrowded court system and rampant insurance fraud.

In the table below, you can click on the link for different states in the U.S. You’ll be taken to a full overview of all auto insurance laws and rates.

Auto Insurance Overview by State
Find Auto Insurance Rates by State
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Overall, the state you live in will influence your auto insurance rates more than almost anything else.

What are the best auto insurance companies and rates based on driver demographics?

It’s not just the laws that affect your rates many companies offer better and more affordable coverage depending on a multitude of other factors, as we mentioned previously.

The following sections will discuss national average annual rates for the top 10 auto insurance companies based on various demographics. Looking for the best coverage for drivers over 50? What about the best coverage for younger drivers? Keep reading for more.

All of these insurers will provide auto insurance quotes for free, so make sure to enter your ZIP code in our quotes boxes to start comparing.

Now, let’s take a look at some of the best-ranked auto insurance companies.

What are the best auto insurance companies and rates by gender?

As we mentioned earlier, some states have already outlawed auto insurance premiums based on gender, and other states have now required a non-binary category when drivers obtain a quote.

Take a look at the following table to compare the average annual rates from the top 10 auto insurance companies by gender. Just a note, we have removed teenage drivers from the table below since their age more heavily influences their rates rather than gender.

Best Auto Insurance Companies: Average Annual Auto Insurance Rates by Gender
Insurance CompanyFemale Average Annual Auto Insurance RatesMale Average Annual Auto Insurance Rates
Allstate$3,164.78$3,228.19
American Family$2,161.43$2,311.14
Farmers$2,613.53$2,682.53
GEICO$2,309.61$2,286.23
Liberty Mutual$3,735.81$4,013.50
Nationwide$2,392.41$2,497.03
Progressive$2,328.71$2,327.52
State Farm$2,097.19$2,170.06
Travelers$2,185.30$2,255.04
USAA$1,663.27$1,705.15
Average$2,465.20$2,547.64
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All but two companies charge from $40 to $280 more annually to insure a male driver than a female driver.

Progressive is just over a dollar difference. Surprisingly, GEICO charges almost $24 more for females. If you’re a male and you’re worried about your gender affecting your auto insurance rates, add GEICO to your list.

What are the best auto insurance companies by rates and marital status?

We mentioned that getting married can actually lower your auto insurance rates. The savings come from bundling multiple policies or adding more than one vehicle to the same auto insurance policy.

We compare average annual rates from the top 10 companies based on your marital status in the table below. Once again, we have removed teenage drivers from the table below since their age more heavily influences their rates rather than their marital status.

Best Auto Insurance Companies: Average Annual Auto Insurance Rates by Marital Status
Insurance CompanySingle Average Annual Auto Insurance RatesMarried Average Annual Auto Insurance Rates
Allstate$3,497.90$1,497.65
American Family$2,491.69$1,977.81
Farmers$2,994.12$2,108.58
GEICO$2,320.88$2,126.14
Liberty Mutual$4,231.40$2,128.07
Nationwide$2,787.76$2,273.20
Progressive$2,728.20$2,286.45
State Farm$2,445.26$2,474.98
Travelers$2,408.23$3,045.78
USAA$2,057.33$3,696.29
Average$2,796.28$2,361.49
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If you are single, then GEICO, Travelers, and USAA will provide the best rates. If you are married, then Allstate, American Family, and Farmers will provide the best rates.

Interestingly, not all companies give married couples a break. Drivers that get married while holding a policy with State Farm, Travelers, and USAA will see an increase in auto insurance premiums.

GEICO and State Farm both have very similar rates for single and married people, with a difference as little as $29.

What are the best auto insurance companies and rates for teenage drivers?

Now let’s look at how much auto insurance from the top 10 providers will cost a teenager or a driver under the age of 25. Young drivers get charged the most for auto insurance.

Not only do insurers equate age with driving experience, but fatal crash statistics back up this claim.

According to the Insurance Information Institute, teenage drivers make up the least amount of drivers on the road but are involved in the most accidents.

With that in mind, see the average rates teenagers pay annually for auto insurance by the top 10 companies in the table below.

Best Auto Insurance Companies: Average Annual Auto Insurance Rates for Teen Drivers
Insurance CompanyTeenage Female Average Annual Auto Insurance RatesTeenage Male Average Annual Auto Insurance RatesTeenager Average Annual Auto Insurance Rates
Allstate$9,282.19$10,642.53$9,962.36
American Family$5,996.50$8,130.50$7,063.50
Farmers$8,521.97$9,144.04$8,833.01
GEICO$5,653.55$6,278.96$5,966.26
Liberty Mutual$11,621.01$13,718.69$12,669.85
Nationwide$5,756.37$7,175.31$6,465.84
Progressive$8,689.95$9,625.49$9,157.72
State Farm$5,953.88$7,324.34$6,639.11
Travelers$9,307.32$12,850.91$11,079.12
USAA$4,807.54$5,385.61$5,096.58
Average$7,559.03$9,027.64$8,293.33
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On a national level, GEICO, Nationwide, and USAA are some of the best auto insurance companies for young drivers since they charge the least for their rates. For teens, in particular, collision coverage would be good to consider, even if their vehicle is not financed.

This kind of coverage for teens may be a better option since there may be times when liability simply will not be enough. If your teen is found guilty of causing the accident, their liability coverage does not apply in certain areas.

If their car is damaged, your teen will need to find the means to repair their car themselves. This is when collision comes in handy. Collision coverage is when the auto insurance provider pays. When your teen is involved in an accident, they receive compensation.

It does not matter if the accident was his or her fault or caused by another driver. This can sometimes be the best level of coverage for very inexperienced drivers.

While your teen gains a level of comfort behind the wheel, they may cause damage. It may be mild, moderate, or severe. Unfortunately, this is how many learn to gauge distance and avoid obstacles in the road.

For example, if your teen is driving in a parking lot and crashes into a parked car, they are responsible. The same is true if they back out without looking first and strike another vehicle in their path.

Liability will repair the damages done to the other vehicle, but your teen’s car will also need repairs. The collision coverage can pay for a fender bender quickly and get them back on the road.

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What are the best auto insurance companies and rates for 20- to 30-year-old drivers?

Moving on to drivers in their 20s and 30s, you’ll see a substantial decrease in these auto insurance rates. Although, drivers in this age group are the most likely to need comprehensive coverage.

Check out the average annual rates from the top providers for drivers in their 20s and 30s in the table below.

Best Auto Insurance Companies: Average Annual Auto Insurance rates for 25-to-34-Year-Olds
Insurance CompanySingle 25-34 Year Old Female Average Annual Auto Insurance RatesSingle 25-34 Year Old Male Average Annual Auto Insurance RatesAverage Annual Auto Insurance Rates
Allstate$3,424.87$3,570.93$3,497.90
American Family$2,288.65$2,694.72$2,491.69
Farmers$2,946.80$3,041.44$2,994.12
GEICO$2,378.89$2,262.87$2,320.88
Liberty Mutual$3,959.67$4,503.13$4,231.40
Nationwide$2,686.48$2,889.04$2,787.76
Progressive$2,697.73$2,758.66$2,728.20
State Farm$2,335.96$2,554.56$2,445.26
Travelers$2,325.25$2,491.21$2,408.23
USAA$1,988.52$2,126.14$2,057.33
Average$2,703.28$2,889.27$2,796.28
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On a national level, GEICO, Travelers, and USAA charge the least for covering single drivers in their mid-20s to mid-30s.

What are the best auto insurance companies and rates for 30- to 50-year-old drivers?

If you’re between 30 and 50, you’re getting some pretty competitive average rates across the board. Your rates will most likely be a little lower than drivers still in their 20s.

Check out the average annual rates from the top providers for drivers in their 30s through their 50s in the table below.

Best Auto Insurance Companies: Average Annual Auto Insurance Rates for 35-to-59-Year-Olds
Insurance CompanyMarried 35-59 Year Old Female Average Annual Auto Insurance RatesMarried 35-59 Year Old Male Average Annual Auto Insurance RatesAverage Annual Auto Insurance Rates
Allstate$3,156.09$3,123.01$3,139.55
American Family$2,202.70$2,224.31$2,213.51
Farmers$2,556.98$2,557.75$2,557.37
GEICO$2,302.89$2,312.38$2,307.64
Liberty Mutual$3,802.77$3,856.84$3,829.81
Nationwide$2,360.49$2,387.43$2,373.96
Progressive$2,296.90$2,175.27$2,236.09
State Farm$2,081.72$2,081.72$2,081.72
Travelers$2,178.66$2,199.51$2,189.09
USAA$1,551.43$1,540.32$1,545.88
Average$2,449.06$2,445.85$2,447.46
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On a national level, State Farm, Travelers, and USAA charge the least for covering drivers in their mid-30s until age 60.

What are the best auto insurance companies and rates for 60-year-old drivers?

If you’re in your 60s, you’re probably paying some of the lowest auto insurance rates in the country.

See how much auto insurance costs annually on average for drivers older than 60 in the table below.

Best Auto Insurance Companies: Average Annual Auto Insurance Rates for 60-Year-Olds
Insurance Company 60-Year-Old Female Average Annual Auto Insurance Rates60-Year-Old Male Average Annual Auto Insurance RatesAverage Annual Auto Insurance Rates
Allstate$2,913.37$2,990.64$2,952.01
American Family$1,992.92$2,014.38$2,003.65
Farmers$2,336.80$2,448.39$2,392.60
GEICO$2,247.06$2,283.45$2,265.26
Liberty Mutual$3,445.00$3,680.53$3,562.77
Nationwide$2,130.26$2,214.62$2,172.44
Progressive$1,991.49$2,048.63$2,020.06
State Farm$1,873.89$1,873.89$1,873.89
Travelers$2,051.98$2,074.41$2,063.20
USAA$1,449.85$1,448.98$1,449.42
Average$2,243.26$2,307.79$2,275.53
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On a national level, American Family, State Farm, and USAA charge the least for covering drivers 60 and older.

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What are the best auto insurance companies and rates by vehicle type?

The type of car you drive will influence your auto insurance rates. Vehicles that are more expensive to repair or replace, like luxury SUVs, almost always cost more to insure than economy sedans.

Similarly, some car models are more likely to be stolen than others. Like sports cars, other vehicles are considered high risk because the temptation to drive recklessly is just too strong.

The cheapest vehicles to insure will be safe, reliable, and relatively inexpensive to fix or replace. See more details about average annual auto insurance rates based on car models from the top 10 insurance providers in the table below.

Best Auto Insurance Companies: Average Annual Auto insurance Rates by Vehicle Type
Insurance CompanyUsed Sedan Average Annual Auto Insurance RatesNew Sedan Average Annual Auto Insurance RatesUsed SUV Average Annual Auto Insurance RatesNew SUV Average Annual Auto Insurance RatesUsed Truck Average Annual Auto Insurance RatesNew Truck Average Annual Auto Insurance Rates
Allstate$4,753.69$5,380.28$4,324.99$4,947.90$4,429.74$5,491.12
American Family$3,178.82$3,721.32$3,326.18$3,496.99$3,447.30$3,487.91
Farmers$4,405.21$4,779.51$3,728.22$3,769.00$4,093.50$4,390.19
GEICO$3,092.58$3,338.87$3,090.89$3,337.18$3,092.11$3,338.40
Liberty Mutual$5,869.32$6,682.63$5,825.33$6,244.44$5,830.16$5,988.85
Nationwide$3,547.84$3,361.93$3,517.03$3,328.57$3,571.01$3,373.64
Progressive$4,429.56$4,528.90$3,647.22$3,730.78$3,914.05$3,962.58
State Farm$3,024.24$3,189.99$3,226.02$3,418.33$3,204.23$3,497.17
Travelers$4,420.37$4,661.22$4,383.78$4,708.19$4,023.47$4,412.42
USAA$2,409.67$2,422.66$2,454.58$2,529.63$2,551.56$2,855.69
Average$3,913.13$4,206.73$3,752.42$3,951.10$3,815.71$4,079.80
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On a national level, GEICO, State Farm, and USAA charge the least for used and new sedans and used SUVs and trucks.

However, the companies that provide the best rates for a new SUV and a new truck are GEICO, Nationwide, and USAA. USAA auto insurance is consistently among the most affordable.

What are the best auto insurance companies and rates by credit score?

Depending on what state you live in, your credit score might heavily impact your auto insurance rates. People with poor credit sometimes pay two to three times more than people with good credit.

Find out which of the top 10 insurance providers care the most about your credit score by looking at the rates below.

Best Auto Insurance Companies: Average Annual Auto Insurance Rates by Credit Score
Insurance CompanyGood Credit Average Annual Auto Insurance RatesFair Credit Average Annual Auto Insurance RatesPoor Credit Average Annual Auto Insurance Rates
Allstate$3,859.66$4,581.16$6,490.65
American Family$2,691.74$3,169.53$4,467.98
Farmers$3,677.12$3,899.41$4,864.14
GEICO$2,434.82$2,986.79$4,259.50
Liberty Mutual$4,388.18$5,604.24$8,802.22
Nationwide$2,925.94$3,254.83$4,083.29
Progressive$3,628.85$3,956.31$4,737.64
State Farm$2,174.26$2,853.00$4,951.20
Travelers$4,058.97$4,344.10$5,160.22
USAA$1,821.20$2,219.83$3,690.73
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You will have a rate based on your credit score when you purchase your first policy, and this rate may change in the future if your credit score dips or improves.

For this reason, we have looked at the jump in rates going from good credit to fair credit and from fair credit to poor credit.

Farmers, Progressive, and Travelers are the most forgiving for drivers that move from a good credit score to a fair credit score.

Progressive, Nationwide, and Travelers are the most forgiving for drivers that move from a fair credit score to a poor credit score.

What are the best auto insurance companies and rates by driving record?

If there’s one factor that insurance companies can use in determining rates that is non-discriminatory, it’s your driving record.

If you are a dangerous driver who’s caused multiple accidents or committed multiple traffic violations, you’ll be considered high-risk and will receive much higher than average auto insurance rates.

Take a look at the table below to see how the top 10 insurance providers weigh various traffic violations against your auto insurance rates.

Best Auto Insurance Companies: Average Annual Auto Insurance Rates by Driving Record
Insurance CompanyClean Record Average Annual Auto Insurance RatesWith One Speeding Ticket Average Annual Auto Insurance RatesWith One Accident Average Annual Auto Insurance RatesWith One DUI Average Annual Auto Insurance Rates
Allstate$3,819.90$4,483.51$4,987.68$6,260.73
American Family$2,693.61$3,025.74$3,722.75$4,330.24
Farmers$3,460.60$4,079.01$4,518.73$4,718.75
GEICO$2,145.96$2,645.43$3,192.77$4,875.87
Liberty Mutual$4,774.30$5,701.26$6,204.78$7,613.48
Nationwide$2,746.18$3,113.68$3,396.95$4,543.20
Progressive$3,393.09$4,002.28$4,777.04$3,969.65
State Farm$2,821.18$3,186.01$3,396.01$3,636.80
Travelers$3,447.69$4,260.80$4,289.74$5,741.40
USAA$1,933.68$2,193.25$2,516.24$3,506.03
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When you purchase your first six-month policy, you will have a rate based on your driving record when the policy is written.

If you already have a driving record with a speeding ticket, American Family, GEICO, or USAA are your best bets.

GEICO, State Farm, and USAA have better rates for those with an accident, and Progressive, State Farm, and USAA have better rates for those with a DUI.

We also take a look at the jump in rates if you have a clean driving record and are issued any of these three infractions:

  • Going from a clean record to having one speeding ticket on your record, the companies with the lowest jump in rates are American Family, State Farm, and USAA.
  • Going from a clean record to having one accident on your record, the companies that have the lowest jump in rates are Nationwide, State Farm, and USAA.
  • Going from a clean record to having one DUI on your record, the companies that have the lowest jump in rates are Progressive, State Farm, and Farmers.

Some companies do offer an accident forgiveness program. If you only have one minor infraction on your record, consider asking an agent if you are eligible, and your provider might remove the blemish from your record.

What are the best auto insurance companies and rates by commute length?

The more you drive, the more your chance of getting into a car accident increases. If you regularly drive during hectic times of the day, like rush hour, this might impact your auto insurance rates.

Driving less than average can help you save money and qualify for low-mileage discounts. However, driving more than average could lead to higher overall premiums.

In commute distance, a shorter commute is considered 10 miles or 6,000 miles per year. A long commute is considered 25 miles or 12,000 miles per year.

Take a look at the table below to see which of the top 10 companies will charge you more for a longer commute.

Best Auto Insurance Companies: Average Annual Auto Insurance Rates by Commute Length
Insurance CompanyShort Commute Average Annual Auto Insurance RatesLong Commute Average Annual Auto Insurance Rates
Allstate$4,841.71$4,934.20
American Family$3,401.30$3,484.88
Farmers$4,179.32$4,209.22
GEICO$3,162.64$3,267.37
Liberty Mutual$5,995.27$6,151.63
Nationwide$3,437.33$3,462.67
Progressive$4,030.02$4,041.01
State Farm$3,175.98$3,344.01
Travelers$4,399.85$4,469.96
USAA$2,482.69$2,591.91
Average$3,910.61$3,995.69
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Farmers, Progressive, and Nationwide have the smallest rate jump at less than $30 annually between a short commute and a long commute.

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What are the best auto insurance companies and rates by coverage level?

You may be asking yourself, “should I try to find affordable auto insurance or the best coverage?” After an accident occurs, a policyholder with insufficient coverage will have to pay for losses above the payout limits. This is a spot in which you do not want to be.

The Insurance Institute for Highway Safety tracks all accident and repair statistics and reports them as insurance loss ratios. A visit to the website will reveal the perceived risk of driving each vehicle make and model. Some vehicles do not perform well in crashes.

Expensive vehicles cost more to repair or replace, and the insurance companies charge more to insure them.

Coverage level refers to the difference in cost of coverage based on the minimum requirements (low coverage), slightly above the minimum (medium coverage), and well above the minimum (high coverage).

Below, you will find the annual rates from the top 10 insurance providers based on coverage levels.

Best Auto Insurance Companies: Average Annual Auto Insurance Rates by Coverage Level
Insurance CompanyLow Coverage Average Annual Auto Insurance RatesMedium Coverage Average Annual Auto Insurance RatesHigh Coverage Average Annual Auto Insurance Rates
Allstate$4,628.03$4,896.81$5,139.02
American Family$3,368.49$3,544.37$3,416.40
Farmers$3,922.47$4,166.22$4,494.13
GEICO$3,001.91$3,213.97$3,429.14
Liberty Mutual$5,805.75$6,058.57$6,356.04
Nationwide$3,394.83$3,449.80$3,505.37
Progressive$3,737.13$4,018.46$4,350.96
State Farm$3,055.40$3,269.80$3,454.80
Travelers$4,223.63$4,462.02$4,619.07
USAA$2,404.11$2,539.87$2,667.92
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American Family, Nationwide, and USAA provide the most bang for your buck when it comes to coverage, whether you are going from low to medium coverage, medium to high coverage, or low to high coverage.

What are the key takeaways about the best auto insurance?

You’ve made it this far, so what company is the best company for auto insurance? In our last few sections, we will define what we mean by the top or best companies and provide you with your final tips and tricks for choosing the right company for you.

We will also provide you with summaries about each of the major companies and providers that lead the industry.

According to most consumer guides put out by the government and industry professionals, the following are the USA’s top 10 auto insurance companies.

They provide the required coverage with very competitive prices, are financially sound, and have a reputation for being available when required.

If you are in the market for auto insurance, then you know that there are dozens of auto insurance companies from which you can choose.

The numerous options lead to a myriad of different questions, such as which is the best company, which company has the lowest rates, and which has the best policy for your needs.

The good news is that there are quite a few reputable and successful auto insurance companies that sell products that you can afford.

As you keep reading, we will discuss some of the more reputable auto insurance companies, what makes them successful, and how to choose among several companies when their rates are relatively the same.

How do you define the best auto insurance companies?

Several factors determine the success of an auto insurance company. One definition of success is the length of time a company has been in business. We will keep this in mind in our summaries of the top providers.

Another way to define the success of an insurance company is by how others rate them. Customer satisfaction is important, especially for people looking to make a change from their current insurance company.

After continuous payment of premiums, one would expect quick and efficient service when it is needed. After all, you are buying a service, and the provider should make the service worth your time and money.

If one is involved in an accident, being put on hold for 10 minutes or told by a machine that an agent will get back to you as soon as possible only to find they never take the call can be frustrating.

Each of the companies we cover below will have excellent customer ratings, not just for auto insurance, but for the other products that are sold.

Our third standard focuses on the companies with the highest market share, as those insurers consistently rank higher for customer service and claims paid. Most insurance shoppers frequently overlook financial strength, yet it is a very significant factor.

After all, signing up with a financially unstable company may mean that by the time you’re involved in an accident and file a claim, the company may be facing bankruptcy and be unable to payout.

Finally, the cost of the policy is also a significant factor to consider. You can review the rates we’ve provided above to help you determine what companies might offer you lower rates than others. However, the only way you’ll know for sure is by seeking out an actual quote.

When you’re ready, use one of our free quote comparison tools by entering your ZIP code, and you’ll be able to immediately compare rates from some of the nation’s leading providers.

Now that our definition is clear let’s review some of the country’s best auto coinsurance companies. The following summaries are in no particular order.

What About Allstate Auto Insurance?

Allstate is another highly rated company that has been in business for many years. It is the second-largest auto insurance company in North America. As you know, Allstate currently carries about 10 percent of the market share regarding auto insurance.

In J.D. Power and Associates’ 2009 analysis of market share, Allstate came in second, right behind State Farm, on the dimension of market share.

It is also one of the most frequently top-rated auto insurance companies in the nation. Allstate provides a wide range of policy options that suit the needs of a wide variety of customers.

Allstate customers rate this insurance carrier as one of the best in customer satisfaction, billing, policies, and rates.

Founded in 1931, many people don’t know that Allstate was a part of the Sears, Roebuck & Co franchise and was publicly traded in 1993. Its attachment to the Sears name was what allowed Allstate to grow so quickly.

Allstate is known for the competitive rates it offers, along with safe driving incentives and accident forgiveness. It was the first company to offer an accident forgiveness program.

It was ranked as one of the top insurance companies for 70 years. It provides four different auto insurance packages, so you have a few options to choose from. Some even claim that this company is ideal for teenagers and the elderly.

While Allstate typically has slightly higher prices than other companies, it does pay back drivers for maintaining a good driving record and staying accident-free. It’s also considered one of the best auto insurance companies for seniors, thanks to low rates for older drivers.

What About State Farm?

As you know, State Farm is the company with the most written auto insurance policies in the U.S. State Farm is always listed in the top 10, if not top five, of every list.

J.D. Power ranks State Farm as one of the best in customer service, billing, rates, and policy coverage.

As of 2010, State Farm had nearly 20 percent of the market share for auto insurance. If you consider dozens of auto insurance companies with seven companies taking up the top 50 percent of the market share, 20 percent is quite significant.

State Farm’s market share has steadily increased over the years despite the arrival of companies such as Progressive and GEICO, who have both quickly taken their share of the insurance market.

State Farm has been doing business since 1922. The company was started to provide affordable insurance options to farmers who were paying city driving prices for their insurance. However, they were only driving in the country where the risk is much lower.

Today, State Farm currently handles 35,000 claims every day. One of the things that they are known for is their quick turnaround on paying claims.

State Farm has an A++ superior rating by A.M. Best. The characteristics of State Farm auto insurance have improved over the years.

They now offer free online quotes, bill payments, and policy services. They have an excellent track record for quick and easy claims processing.

State Farm also offers exceptional discounts for insuring your home and your car, or multiple vehicles, with the company. Discounts are one of the best things about an insurance provider. State Farm makes sure their customers get plenty of variety.

Consumers can save a significant amount, up to 40 percent, with State Farm. State Farm offers numerous policy discounts, including but not limited to:

  • Good Driver
  • Good Student
  • Multi-Vehicle
  • Multi-Policy
  • Anti-Theft Device
  • Advanced Safety Features
  • Low Mileage
  • Loyalty
  • Corporate Affiliate
  • Automatic Payment

A State Farm auto insurance policy can be quoted and purchased online, by telephone, or at a local agent’s office.

What About GEICO Auto Insurance?

Government Employees Insurance Company, or more commonly known as GEICO, is owned by Berkshire Hathaway and provides private auto insurance in all 50 states. GEICO is a popular company with several great marketing campaigns.

Founded in 1936 as a company that sold insurance policies to government-based employees, including people in the military, GEICO provides insurance options for people in all walks of life. This company is also easily recognizable from its commercials on the air.

These campaigns have apparently paid off because GEICO holds third place in the market share, right behind State Farm and Allstate.

GEICO and Progressive often switch places in terms of being third in the country for the most auto insurance policies written. GEICO, however, currently holds this spot with about 8% of the market share.

GEICO pledges outstanding customer service and promises to help in obtaining the least expensive auto insurance policy. Additionally, GEICO offers its customers several payment options, which make them a favorite with potential clients.

GEICO customers report on several auto insurance review sites that they are happy with the service they receive. Many reviewers rave about the service they have received from this company. GEICO appears to be doing well and generating a loyal customer base.

GEICO’s rating by A.M. Best is A++ superior. GEICO offers instant online premium quotes and online policy services through their website.

This company offers many policy discounts, including but not limited to:

  • Good Driver
  • Good Student
  • Multi-Vehicle
  • Multi-Policy
  • Continuous Coverage
  • Anti-Theft Device
  • Advanced Safety Features
  • Low Mileage
  • Loyalty

Best known for very low prices, you won’t find local GEICO agents in every state, and the policies can be more limited.

Your options for quoting and purchasing an auto insurance policy with GEICO are limited to telephone or through their website.

What About Progressive Auto Insurance?

Progressive Insurance is a multi-dimensional company providing auto insurance and bike, watercraft, Segway, RV, and snowmobile loans. Progressive has been making a name as a reputable insurance carrier over the last few years.

Progressive was established in 1937 and had the honor of selling the maximum number of commercial auto policies through independent agents operating via brokers.

Progressive has been around for over 70 years and is the third-largest auto insurance company in the U.S. Progressive receives very high ratings for their claims services, as well as their customer service.

Progressive was given an A+ superior rating by A.M. Best, the insurance industry’s leading financial rating source. They are truly a progressive company, as this carrier offers innovative ways for policyholders to receive discounts on their premiums.

For example, Progressive offers the Snapshot discount. As a customer, you will receive a small electronic device in the mail from the company that you plug into your car for 30 days. The device records information about your driving habits.

You then mail the device back to Progressive, and an underwriter will apply a discount based on the recorded information.

This company even has an innovative offer for its clients known as the “name your price” policy, in which potential clients can counteroffer the quote they receive.

Progressive currently holds 7 percent of the market share as of 2011. Progressive is also known as an affordable auto insurance company but with a little more flexibility than companies like GEICO.

For example, when you drive a rental car, you are covered under your plan, and you are allowed to let others drive your vehicle occasionally and still be covered.

You may choose to quote and purchase your Progressive direct auto insurance policy online, by telephone, or through a local agent.

What About Nationwide Auto Insurance?

Nationwide was founded in 1925 under the name of The Ohio Farm Bureau Federation and is now one of the largest financial organizations in the world. Although very well known, it is a smaller company when it comes to auto insurance sales.

In 1955, it officially became known as Nationwide Auto Insurance and is today one of the most financially strong auto insurers in the USA. Nationwide keeps its customers happy by providing them with many low-cost insurance options.

Its current market share is less than 5 percent. This doesn’t mean that the company isn’t a good auto insurance provider, only that they hold less of this market.

Nationwide is best known for its excellent business insurance options. It is often the first choice for fleet auto insurance as well as other business insurance products.

However, it has more recently expanded its auto insurance to include drivers across the nation because of its success in these areas.

Nationwide is rated A+ superior by A.M. Best and received high ratings from its customers for claims services. The company guarantees the repairs on the customer’s vehicle for the life of the car.

Nationwide gives several policy discounts, including but not limited to:

  • Good Driver
  • Good Student
  • Multi-Vehicle
  • Multi-Policy
  • Anti-Theft Device
  • Loyalty

Nationwide provides free online quotes and bill payments. You may conveniently quote or purchase an auto insurance policy from Nationwide online, by telephone, or from a local agent.

What About AAA Auto Insurance?

The American Automobile Association or AAA is a federation of associated auto clubs.

The organization is a non-profit lobby that, along with auto insurance, also offers many services like first aid, towing, and emergency road service to members.

AAA was founded in 1902 in Chicago and continues to be an American favorite to this day. Today, it has over 52 million members and has less than 1% market share for auto insurance.

A major reason for this is that AAA isn’t known for its auto insurance products; instead, it is known for the emergency services that it provides to its members.

What About Liberty Mutual Auto Insurance?

Established in 1912, Liberty Mutual is a financially sound company with a financial strength rating of A.

In addition to auto coverage, they also offer home and life insurance. It is the third-largest property and casualty insurance company in the U.S.

Liberty Mutual has not only been rated as one of the top auto insurance companies in the USA but has a wide network of financial services in 20 countries throughout the world.

Its market share for auto insurance is less than 2 percent, but it still sells millions of policies every year. However, those policies just aren’t predominately auto insurance policies.

Liberty Mutual is known for its flexibility with its customers. If you don’t enjoy talking to an agent, you can do all of your business online.

What About 21st Century Insurance?

21st Century works in collaboration with some of the best auto insurance companies.

21st Century can provide its customers with a large variety of insurance products in addition to auto insurance.

What About GMAC Auto Insurance?

GMAC was established in 1939 and has grown steadily ever since. The individual needs of the GMAC customers are this company’s top priority. GMAC claims to help customers design a policy that fits their budgets and requirements.

In addition to being one of the best insurance companies in the U.S., they make a large range of insurance products available in Latin America, Asia, and Europe.

What About AIG Auto Insurance?

American International Group or AIG promises to provide major savings compared to other insurance providers. AIG’s main focus is to provide savings through low-cost insurance products and bundling.

AIG is a world leader in insurance and financial services, with operations in more than 130 countries. In addition to auto insurance, they provide retirement services and asset management.

What About The Travelers Auto Insurance Company?

Travelers was founded in 1864, and it wrote its first auto insurance policy in 1897. Even though Travelers is less than 2 percent of the auto insurance market share, it is best known for innovating and changing how auto insurance is sold.

Travelers was the first to require their agents to become trained and licensed in their products before being allowed to sell them.

Travelers was also the first company that offered a hotline for customers to call when they had a claim.

What About Esurance Auto Insurance?

Esurance was founded in 1998. It has received an A+ superior rating from A.M. Best. Esurance also receives high ratings from its customers for its outstanding customer service and claims process.

It is a green company and prides itself on its paper reduction and reforestation efforts. It offers lower rates than many of its competitors because it is an internet-based business.

Policy discounts offered by Esurance include but are not limited to:

  • Good Driver
  • Good Student
  • Multi-Vehicle
  • Multi-Policy
  • Continuous Coverage
  • Anti-Theft Device
  • Advanced Safety Features
  • Occupational
  • Loyalty
  • Single Parent

You can conveniently quote and purchase your auto insurance policy online. Esurance customer service can be contacted online or by telephone.

What About Amica Auto Insurance?

Amica is another auto insurance company that rates high on all dimensions. Amica does not hold a significant market share like State Farm.

However, this company always rates extremely high in customer satisfaction metrics. Amica also scores well in billing, policy coverage, and discounts.

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Best Auto Insurance Companies: What Are The Pros and Cons?

Let’s focus on the pros and cons of the top car insurance companies in the United States. You got a detailed view of each company above, but let’s look at those pros and cons again.

Best Auto Insurance Companies: Pros and Cons
The Top Auto Insurance CompaniesBest Auto Insurance Companies' ProsBest Auto Insurance Companies' Cons
Amica MutualRanked #1 in J.D. Power Auto Claims Satisfaction ResultsNo Military or Senior Driver Discounts
ProgressiveVarious Coverage OptionsSubpar Claim Handling
Expensive Rates
GEICOAffordable Auto Insurance Rates
Several Discounts
Limited Coverage Options Outside of the Basics
AllstateAvailable in All States
Discounts for Young Drivers
Limited Number of Coverages and Discounts
State FarmHigh Rate of Claim Satisfaction
Plenty of Discounts
Limited Coverage Options
No Military Discounts
USAAThe Best Auto Insurance for Military and their FamiliesOnly Available to Military and their Immediate Families
ErieSolid Auto Insurance Rates for Young DriversNo Student Discounts
The HartfordIdeal for Other Vehicles like ATVs and RVs
Good Classic Car Insurance
Available to AARP Members Only (in some states)
NationwideCheaper than Average Auto Insurance Rates (in some states)Limited to Certain States
Below Average Claims Rating
FarmersSimple Claims Process
Green Car Discount
Low Satisfaction Ratings
No Discount When You Renew
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Each company has a viable strength, but they also have a few things that set companies apart from their competitors. These pros and cons are factors that may run you away or keep you with the company.

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What are some additional tips for finding the best auto insurance company?

When you search online, you’ll find dozens of lists showcasing the top insurance companies. While this may seem overwhelming, it doesn’t have to be. This is because some basic companies stand out on everyone’s list.

The chances are good that if you receive an affordable quote from any of those companies, you will be happy with that policy. But ultimately, the best insurance company is the one that fulfills your individual needs the most.

The best way to find your ideal company is to do plenty of research, make a shortlist, and finally get quotes and pick the right one. In the auto insurance world, this is known as comparison shopping.

Keep the following tips in mind while you comparison shop:

  • There are several different auto insurance providers.
  • Finding the best auto insurance company depends on your personal needs.
  • Insurance companies are rated according to financial stability and customer service.
  • A company’s ability to pay any claims filed is also an important consideration.

Also, keep in mind that some regional and smaller companies have been around for a long time and have provided excellent service and comparable rates to the national companies; however, they do not show up on many lists because they are not national.

If you are in the market for auto insurance, then you know that there are dozens of auto insurance companies from which you can choose.

The numerous options lead to many different questions, such as choosing the best company, which has the lowest rates, and who has the best policy for your needs.

The good news is that there are quite a few reputable and successful auto insurance companies that sell products that you can afford. You’ve already read our overviews above about most of those companies.

You’re now familiar with what type of driver each provider caters to the most, what regions of the country those companies are cheapest in, and what policy discounts and options are readily available by the company.

If you still need help choosing the right insurer, read on for a few more tips to keep in mind.

What are the financial ratings of the top auto insurance companies?

We’ve said it a few times already, but financial success is an important aspect of choosing a successful insurance company. Several financial rating companies rank insurance companies based on their financial information, claims, growth, etc.

These companies use this information to determine how sound a company is and what its long-term outlook is. Here are the A.M. Best rankings for most of the top insurance providers:

  • State Farm – A++ with a long-term stable outlook
  • Allstate – A+ with a long-term stable outlook
  • GEICO – A++ with a long-term stable outlook
  • Progressive – A+ with a long-term stable outlook
  • Nationwide – A+ with an overall negative long-term outlook
  • Liberty Mutual – A with an overall negative long-term outlook
  • Travelers – A+ with a long-term stable outlook
  • AAA – A+ with a long-term stable outlook
  • USAA – A++ with a long-term stable outlook
  • Farmers – A- with an overall negative long-term outlook
  • Amica – A+ with a long-term stable outlook
  • The Hartford – A+ with a long-term stable outlook
  • Erie – A+ with an overall negative long-term outlook

A++ is the highest rating a company can receive from A.M. Best. As you may have noticed, there are a couple of companies with an overall negative long-term outlook. This could mean many things, but it doesn’t necessarily mean that the company will fail.

In some cases, the company is growing too fast and needs to slow down and let its assets catch up with its growth.

It could also mean that the company recently lost too many policies making it difficult to maintain its current claim influx. Of course, it could also mean that the company is failing, but a long-term outlook typically means years, not months.

With companies like Nationwide and Liberty Mutual, you will find that the negative outlook will likely turn around in a year. However, this does depend on the economy and how things go overall for the company.

How should you choose your auto insurance?

You will often find that when you receive your auto insurance quotes, they will be for similar amounts from each company. However, by learning how to properly compare and shop, you will make a more informed decision about your auto insurance policy.

Some look for a company with a good track record for having a quick and easy claims process.

Some customers search for a company with outstanding customer service. Others choose to purchase their auto insurance from the company that provides them with the cheapest auto insurance quote.

To properly comparison shop, first establish the level of coverage you require and your budget.

Next, do research to choose a wide variety of insurers to seek out quotes from. The quickest way to do this is by taking advantage of online quote comparison websites, just like this one.

Comparing auto insurance companies is one way to get the best deal on your policy. The best way to compare auto insurance companies and policies is to use a comparison site.

To use one of these comparison tools, enter your ZIP code, and a list of auto insurance companies that issue policies in your area will display.

Different comparison tools offer different features. Try to find one that enables you to compare companies and policies while viewing all selected options in one view.

Next, consider each of the following company assets while you compare your numerous quotes:

  • One of the things you may want to consider is the company’s financial status. You may feel more comfortable with a company with an A++ rating and a stable outlook than a negative outlook.
  • Another thing you will want to consider is whether or not you will have a teen driver soon. Some companies offer lower discounts for teens, but you should get quotes from each company again with the teen driver added to your policy.
  • If you frequently rent vehicles, then a company like GEICO may not be the best choice, especially if you rent a car for weeks at a time. The cost of buying insurance through a car rental company can range between $16 and $30 a day.
  • Don’t forget to consider customer service ratings for each company. A company may have low rates but bad reviews regarding their customer service. If how you are treated is important to you, then this is something to keep in mind.

What’s more, you can even talk to your friends, family, and coworkers about the insurance company that they use. Just because a company has low ratings nationally doesn’t mean they have low ratings locally.

If you’re still feeling uncertain, take time to visit your state’s Department of Insurance.

You can find a list of car insurance companies licensed to sell insurance in your state and find a list of any legitimate complaints filed against them.

The Best Auto Insurance Companies: What is The Bottom Line?

The bottom line is that the best-rated car insurance companies are rated so for a reason because they have consistently provided excellent service and products to their customers.

The familiar companies we covered in-depth for you above have made it into the coveted top insurance providers list. The best way to find the right company for you is to compare personalized auto insurance rates.

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Do You Have More Questions About The Best Auto Insurance Companies?

Let’s wrap up the guide by answering a few questions about the best car insurance companies.

#1 – What auto insurance coverage options are available at the best auto insurance companies?

That would depend on the company. However, you can find the basic coverage options at every company, such as liability, collision, comprehensive, and uninsured/underinsured motorist coverage. Personal injury protection and medical payments may also be available.

#2 – What auto insurance coverage do I need?

The minimum coverage for car insurance varies from state to state. Any driver in the United States, however, will need liability auto insurance. Liability car insurance is made up of Bodily Injury Liability and Property Damage Liability.

In some states, uninsured/underinsured motorist coverage and personal injury protection are part of liability insurance coverage. You won’t have to pay extra for them, but they will be part of the minimum requirements.

#3 – How do I compare the best auto insurance companies?

Finding affordable coverage from the best auto insurance companies may take some time, but it’s better to be sure that you’re getting the best auto insurance money can buy.

Online comparison tools make buying the best auto insurance easier than ever before. Now that you know what the best auto insurance companies are start comparing auto insurance rates from the best companies by entering your ZIP code into our free online tool below.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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