Best Auto Insurance Companies (2023)

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

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

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

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

The best way to compare cheap auto insurance rates is by getting quotes from the best auto insurance companies for 2022. Keep reading to learn how to determine which is the best auto insurance company for you.

What auto insurance companies are the best?

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:

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

There are numerous auto insurance companies of varying types and sizes, so choosing the best insurance for a vehicle 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. However, only 10 auto insurance companies dominate 72% of the national private passenger auto insurance market.

Even more unbelievable is that only four of those 10 auto insurance companies share 51% 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, we list the companies in alphabetical order.

What are the top auto insurance companies in the country?

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

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

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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. Keep this in mind in our summaries of the top car insurance companies.

Another way to define the success of an insurance company is by how others rate them. Customer satisfaction is essential, especially for people changing from their current insurers.

After a long commitment to one car insurance company, you would expect quick and efficient service when you need it. After all, you are buying a service, and your insurer should make its service worth your time and money.

If you are involved in an accident, being put on hold for 10 minutes, or being 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 has excellent customer ratings, not just for auto insurance but for their other products.

Our third standard focuses on the companies with the highest market share, as those insurers consistently rank higher for customer service and claims paid. In addition, most insurance shoppers frequently overlook financial strength, which is a 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 pay out.

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

Now that our definition is clear let’s review some of the country’s best auto insurance companies. The following summaries are in alphabetical order.

21st Century

21st Century works in collaboration with some of the best auto insurance companies to provide coverage in California.

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

Read our complete 21st Century Auto Insurance Review

AAA

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

The organization is a nonprofit lobby that, along with auto insurance, also offers members many services like first-aid, towing, and emergency road service. AAA was founded in 1902 in Chicago and continues to be an American favorite.

Today, AAA has over 52 million members. However, it has less than 1% market share for auto insurance. A significant reason is that the federation isn’t known for its auto insurance products. Instead, it is known for the emergency services that it provides to its members.

Read our complete AAA Auto Insurance Review

AIG

American International Group, or AIG, promises to provide significant savings compared to other insurance providers. AIG primarily focuses on delivering 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, it provides retirement services and asset management.

Read our complete AIG Auto Insurance Review

Allstate

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. Allstate currently has about a 10% market share regarding auto insurance.

In J.D. Power’s 2009 market share analysis, Allstate came in second, right behind State Farm, in the area of market share.

It is also among the nation’s most frequently top-rated auto insurance companies. In addition, Allstate provides a wide range of policy options that suit the needs of various customers.

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

Founded in 1931, Allstate was originally a part of the Sears, Roebuck & Co. franchise, and the insurance company was publicly traded in 1993. Its attachment to the Sears name allowed Allstate to grow quickly.

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

Allstate has been one of the top insurance companies for 70 years. It provides four auto insurance packages, so you have a few options.

Some even claim that Allstate is ideal for teenagers and the elderly. However, it’s considered one of the best auto insurance companies for seniors because of its low rates for older drivers. 

Also, while this company typically has slightly higher prices than other companies, it does pay back drivers for maintaining a good driving record and staying accident-free.

Read our complete Allstate Auto Insurance Review

Amica Mutual

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

However, this company consistently has exceptionally high customer satisfaction metrics. Amica also scores well in billing, policy coverage, and discounts.

Read our complete Amica Auto Insurance Review

Esurance

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

Esurance is a green company and prides itself on its paper reduction and reforestation efforts. It also offers lower rates than many 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. In addition, you can reach Esurance’s customer service online or by telephone.

Read our complete Esurance Auto Insurance Review

Geico

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

Founded in 1936 as a company selling insurance policies to government employees, including people in the military, Geico provides insurance options for people from all walks of life. 

This company is also easily recognizable from its commercials. These campaigns have apparently paid off because Geico holds third place in market share, right behind State Farm and Allstate.

Geico and Progressive often switch places to be third in the country for the most auto insurance policies written. However, Geico currently holds this spot with about 8% of the market share.

Geico pledges outstanding customer service and promises to help obtain the cheapest auto insurance policy. Additionally, Geico offers its customers several payment options, which makes it a favorite with potential clients.

Geico appears to be doing well and generating a loyal customer base. The company’s customers report on several auto insurance review sites that they are happy with the service they receive. 

Geico’s rating by A.M. Best is A++ Superior. In addition, Geico offers instant online quotes and online policy services through its website.

Geico offers many auto insurance 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

This company is best known for very low prices, but you won’t find local Geico agents in every state, and the policies can be more limited.

Your options for getting quotes and purchasing an auto insurance policy with Geico are also limited. You can only receive quotes or purchase Geico insurance by phone or through the company’s website.

Read our complete Geico Auto Insurance Review

GMAC

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

In addition to being one of the best insurance companies in the U.S., GMAC makes an extensive range of insurance products available in Latin America, Asia, and Europe.

Read our complete GMAC Auto Insurance Review

Liberty Mutual

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

In addition to auto coverage, Liberty Mutual offers home and life insurance. It is the third-largest property and casualty insurance company in the U.S.

Liberty Mutual is rated as one of the top auto insurance companies in the U.S. and has a vast network of financial services in 20 countries worldwide.

Liberty Mutual’s market share for auto insurance is less than 2%, but it still sells millions of policies yearly. However, those policies just aren’t predominately auto insurance policies.

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

Read our complete Liberty Mutual Auto Insurance Review

Nationwide

Nationwide was founded in 1925 under 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 in 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 U.S. Nationwide keeps its customers happy by providing them with many low-cost insurance options.

Its current market share is less than 5%. 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. As a result, it is often the first choice for fleet auto insurance and other business insurance products. However, it has expanded its auto insurance to include drivers nationwide because of its success in these areas.

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

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. In addition, you may conveniently get a quote or purchase an auto insurance policy from Nationwide online, by telephone, or from a local agent.

Read our complete Nationwide Auto Insurance Review

Progressive

Progressive Insurance is a multidimensional company providing auto insurance and bike, watercraft, Segway, RV, and snowmobile loans. This insurance company 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 80 years and is the third-largest auto insurance company in the U.S. This company receives very high ratings for its claims services and customer service.

A.M. Best, the insurance industry’s leading financial rating source, gave Progressive an A+ Superior rating. This is truly a progressive company, as it offers innovative ways for policyholders to receive discounts.

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 held 7% of the market share as of 2011.

Progressive is also an affordable auto insurance company 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 quote and purchase your Progressive direct auto insurance policy online, by telephone, or through a local agent.

Read our complete Progressive Auto Insurance Review

State Farm

State Farm has the most cited auto insurance policies in the U.S. and is consistently listed in the top 10, if not the top five.

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% of the market share for auto insurance. If you consider dozens of auto insurance companies with seven companies taking up the top 50% of the market share, 20% is quite significant.

State Farm’s market share 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.

Doing business since 1922, the company started to provide affordable insurance options to farmers paying city driving prices for their insurance. However, they were only driving in the country where the risk was much lower.

Today, State Farm currently handles 35,000 claims daily. One of the things it’s known for is its quick turnaround on paying claims. In addition, the company has an excellent track record for quick and easy claims processing.

State Farm has an A++ Superior rating by A.M. Best. In addition, the characteristics of State Farm auto insurance have improved over the years.

State Farm offers free online quotes, bill payments, and policy services. Additionally, State Farm provides exceptional discounts, up to 40%, for insuring your home, car, or multiple vehicles. 

There are a variety of State Farm auto insurance discounts. These are some of the more common discounts they offer:

• Good driver
• Good student
• Multi-vehicle
• Multi-policy
• Anti-theft device
• Advanced safety features
• Low mileage
• Loyalty
• Corporate affiliate
• Automatic payment

A discount is one of the best things an insurance company can offer. State Farm makes sure their customers get plenty of variety in that regard.

If you choose State Farm, you can receive a quote or purchase an auto insurance policy online, by telephone, or at a local agent’s office.

Read our complete State Farm Auto Insurance Review

Travelers

Travelers began its operations in 1864 and wrote its first auto insurance policy in 1897. Even though Travelers has less than 2% of the auto insurance market share, it is best known for innovating and changing the selling of auto insurance.

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

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

Read our complete Travelers Auto Insurance Review

Which auto insurance companies have the best rates?

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 company.

Let’s start by comparing the average monthly car insurance rates from the top 10 auto insurance companies in the United States and discussing availability throughout the nation.

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

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, 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 rates nationally. However, this doesn’t mean you should immediately choose one of these companies.

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

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

Not just laws affect your rates; many companies offer better and more affordable coverage depending on many other factors.

The following sections will discuss national average monthly rates for the top 10 auto insurance companies based on demographics. If you are looking for the best coverage for drivers over 50 or the best coverage for younger drivers, we have that information below.

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

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

Statistically, males are more likely to take risks than females. For that reason, they typically see higher car insurance rates.

The following table compares the average annual rates from the top 10 auto insurance companies by gender. We have removed teenage drivers from the table below since their age heavily influences their rates rather than gender. Find out about male and female auto insurance rates below.

All but two companies charge from $3 to $23 more monthly to insure a male driver than a female driver.

Progressive charges pennies more for females than males. Surprisingly, Geico charges almost $2 a month more for females. Add Geico to your list if you’re a male and you’re worried about your gender affecting your auto insurance rates.

Remember that some states have already outlawed auto insurance rates based on gender, and others now require a nonbinary category when drivers obtain a quote.

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

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

In the table below, we compare average monthly rates from the top 10 companies based on marital status. Once again, we removed teenage drivers from the table below since their age more heavily influences their rates than their marital status.

If you are single, Geico, Travelers, and USAA provide the best rates. If you are married, then Allstate, American Family, and Farmers provide the best rates.

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

Geico and State Farm have very similar rates for single and married people, with a difference of as little as $2 a month.

(Read: Best Insurance Providers for Married Couples)

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 auto insurance companies will cost a teenager or a driver under 25. Again, 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 number of road drivers but are involved in the most accidents.

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

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. 

Auto Insurance Coverage for Teens

The best auto insurance for teens and young drivers would include collision insurance coverage, even if you have not financed their vehicle.

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

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

It does not matter if the accident was your teen’s fault or if another driver caused the accident. This can sometimes be the best level of coverage for 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 on 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 insurance will help you pay to repair the damages done to the other vehicle, but your teen’s car will also need repairs. The collision coverage can quickly pay for a fender bender and get your teen back on the road.

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

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 monthly rates from the top providers for drivers in their 20s and 30s in the table below.

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. In fact, your rates will likely be slightly lower than drivers in their 20s.

In the table below, check out the average monthly rates from the top providers for drivers in their 30s through their 50s.

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 monthly on average for drivers older than 60 in the table below.

On a national level, American Family, State Farm, and USAA charge the least for covering drivers 60 and older.

(Read: 5 Tips for Buying Senior Auto Insurance)

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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. Like luxury SUVs, vehicles that are more expensive to repair or replace almost always cost more to insure than economy sedans.

Similarly, some car models are more likely to be stolen than others. Like sports cars, some 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 monthly auto insurance rates based on car models from the top 10 insurance providers in the table below.

On a national level, Geico, State Farm, and USAA charge the least for used and new sedans and used SUVs and trucks. Also, car insurance rates on used vehicles are lower than for new cars.

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

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

Depending on your state, 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.

Ultimately, you will be the one to decide which car insurance company best serves your needs. However, to help you make that choice, you may first need to determine the target audience for each company. To that end, we’ve gathered pertinent data about each of the top 10 companies.

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

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 from good credit to fair credit and from fair credit to poor credit.

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

Progressive, Nationwide, and Travelers are the most forgiving for drivers who move from a fair credit score to a poor credit score. So if your credit isn’t the best, Progressive may be your best bet.

(Read: Best Auto Insurance Companies That Don’t Check Credit)

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.

Suppose you are a dangerous driver who’s caused multiple accidents or committed numerous traffic violations. In that case, you’ll be considered a high-risk driver and receive auto insurance rates higher than average.

Look at the table below to see how the top 10 insurance companies weigh various traffic violations against your auto insurance rates.

When you purchase your first six-month policy, your rates are based on your driving record when getting the policy.

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 auto insurance rates for those with a DUI.

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

• Ticket. When you go 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.
• Accident. If you go from a clean record to having one at-fault accident on your record, the companies with the lowest jump in rates are Nationwide, State Farm, and USAA.
• DUI. If you go 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 insurer might remove the blemish from your record.

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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 rates.

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.

Although the monthly increase is typically small for longer commutes, your drive time does raise your rates. For example, Farmers, Progressive, and Nationwide have the smallest rate jump at less than $3 monthly between short and long commutes. 

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

You may ask yourself, “Should I try to find affordable auto insurance or the best coverage?” After an accident, 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’s make and model. Some cars do not perform well in crashes.

In addition, expensive vehicles cost more to repair or replace, and insurance companies charge more to insure them.

Auto insurance coverage levels refer to the differences in the 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 monthly rates from the top 10 insurance providers based on coverage levels.

American Family, Nationwide, and USAA provide value regarding coverage, whether you are going from low to medium coverage, medium to high coverage, or low to high coverage.

While full coverage is more expensive, it provides the best protection and saves you from substantial out-of-pocket expenses.

What are the best auto insurance companies by region?

If you plan to move to a new state, these tables may help. When moving to a different state, your current carrier may not have the best car insurance rates, even within the same region.

In some cases, neighboring states have much cheaper auto insurance. As a result, moving there and commuting to work or riding the subway may be more feasible.

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 company.

Midwest

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

There is a $183 monthly difference between the highest and lowest rates per state. Some companies have a difference of $1,583 a month or less. However, we’re specifically referencing Allstate’s rates in Michigan. As you can see, it pays to shop around.

Northeast

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 monthly rates on average near you.

For the Northeast, the difference between the highest and lowest rates for each state is between $183 and $567 monthly. Therefore, the spread isn’t quite as wide as the Midwest.

Southeast

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

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 in the Midwest, but it’s close.

Drivers in the Southeast expect to pay a difference of up to $1,333 a month, depending on which company they choose.

Southwest

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

The playing field is smaller in the Southwest—only four states exist. Their situation is similar to the Northeast.

Drivers in the Southwest will see a difference between the highest and lowest rates, somewhere between $175 and $342 a month, so that’s still worth the time to research and choose the best company for you.

West Coast

Finally, we move to the West Coast. Please look at the chart below.

Regarding auto insurance rates, the West is the most fortunate region in the United States. There is only a $150 and $308 monthly difference in rates, depending on the company drivers choose in each state.

Regardless of what part of the country you live in, one thing is clear: Shopping around for auto insurance pays off. To truly find the best company for you, you will want to seek multiple quotes from the best car insurance companies.

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How does your state affect auto insurance?

The state in which you live has a huge influence on your rate. Every state is different, and that difference usually has a lot to do with the laws. For example, one dividing factor between 11 states and the remaining 39 is whether their laws are at-fault-based or no-fault-based.

In no-fault states, the law requires that policyholders turn to their insurance company for claims, regardless of who is at fault in an accident. In at-fault states (also known as “tort” 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. However, some no-fault states, such as Michigan, New Jersey, and Florida, have outrageous rates.

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 2020, Michigan required drivers to pay for unlimited PIP coverage.

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

In 2015, Michigan auto insurance companies had only 12% of the total PIP claims that Florida did. Yet, insurance companies were forced to pay $1 billion more in losses than Florida insurance companies, making it 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. which will give you an overview of all auto insurance laws and rates. You can also view the average monthly rates by the top companies for full coverage auto insurance. 

(Read: Which states have the cheapest auto insurance rates?)

How is the financial stability of auto insurance companies determined?

Consumers should consider the insurer’s financial stability before choosing a car insurance company. For example, your insurer should be able to pay a claim even during an economic downturn.

Analysts usually judge an insurance company’s future financial stability by looking at its historic financial stability, especially compared to its top competitors. Also, third-party entities such as A.M. Best use intricate algorithms to rate and predict a company’s financial stability.

A++ is the highest rating a company can receive from A.M. Best. Some companies may have 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. Finally, it could also mean that the company is failing, but a long-term outlook typically means years, not months.

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 can use to judge the financial stability of a company are:

• Direct premiums written: the total dollar amount in premiums received by an insurance company without any adjustments
• Market share: indicates the percentage of market concentration in a line of business a company controls
• Loss ratio: a percentage representing the payout on claims against what a company earns through customer payments

If you love to look at car insurance company ratings, all of our company reviews provide additional financial stability ratings from Moody’s and Standard & Poor’s.

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

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.

Check out our company reviews to see more specific trend data for these three figures.

State Farm, Geico, and Progressive are the top three auto insurance companies in the NAIC market share. In addition, expect these three companies to be in the top 10 in all other research data across the internet.

It’s assumed that any company’s goal is to increase profits. Still, competition and financial stability are seen chiefly in market share and loss ratios, especially in the top 10 companies.

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

Financial success is a critical aspect of choosing a successful insurance company. Several financial rating companies rank insurance companies based on their financial information, claims, growth, etc.

What are the top four auto insurance companies based on market share?

Allstate, Geico, Progressive, and State Farm have dominated the auto insurance industry for quite some time.

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%. In a roughly 15-year period, they fought for and gained 10% of the 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.

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 has been closing the market share gap with State Farm, and Progressive has been closing the gap in market share with Geico.

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

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 customers and partners 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’s uncertain 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 should you know about customer reviews?

Judging an auto insurance company by rates and financial stability is a great start, but what about customer service? When choosing or changing auto insurance companies, examining new and recurring customer satisfaction ratings is essential.

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 insurer’s claims process is slow, confusing, and frustrating when it’s too late.

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

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 auto insurance companies pay claims and treat customer interactions:

• When companies quickly settled claims for their policyholders, the ratings on this variable were high
• For other companies that 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. Companies that settle claims quickly can 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.

Power Circle Ratings

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

Five circles mean 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 two power circles or higher ratings.

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

Essentially, companies that did exceptionally well in a category look more appealing than companies that only did well in the same category. 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.

Keep reading to learn about the complaint ratios of top insurance companies.

Complaint Ratios

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 the number of complaints per year per $1 million of premiums earned by the total annual premiums.

In 2018, the collective national complaint ratio was 1.15; a ratio lower than 1.15 is good, and one higher than 1.15 is 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 for 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. 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 an excellent example of how important it is to do your research about each company from every angle.

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

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What are the key takeaways about the best auto insurance?

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

The top 10 auto insurance companies in the U.S. provide the required coverage with competitive prices, are financially sound, and have a reputation for being available when needed.

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

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

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

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

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 competitive and relevant, each company needs to find its niche in the market.

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

For example, if you are under 25, you will want to make sure you seek a quote from Geico. This is because rates from Geico are purposefully lower than competitor rates for younger drivers.

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.

Each company has a viable strength, but each also has a few things that set it apart from its competitors. These pros and cons are factors that may send you running away or keep you with the company.

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What should you know before buying auto insurance?

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

What type of coverage do you need?

An excellent place 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). This coverage pays for damages resulting from injuries to  other drivers and passengers (if any) when you’re at fault in an accident.
• Property damage liability (PD). This coverage pays for damage to property of others when you’re at fault in an accident.
• Collision coverage. Collision coverage pays for your vehicle’s damage costs regardless of who was at fault.
• Comprehensive coverage. Comprehensive coverage pays for damage to your vehicle that doesn’t involve a collision, such as vandalism, theft, fires, storms, etc.
• Underinsured motorist coverage (UIM). This coverage provides compensation if an at-fault driver has insufficient coverage limits to pay for your property damage or bodily injury.
• Uninsured motorist coverage (UM). This coverage pays for your injuries and property damage resulting from a hit-and-run accident or collision caused by a driver with no insurance.
• Personal injury protection (PIP). PIP helps cover expenses after an accident, including child care, lost wages, and medical bills regardless of who is at fault.
• Medical payments (MedPay). This is an extra coverage option to help you with medical bills but will not cover lost wages.

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

How are auto insurance rates determined?

The best auto insurance company for you depends on where you live, the laws in your state, and several other factors unique to you. 

You must answer several questions when you obtain a quote from an auto insurance company. Your answers to those questions will help the company generate your auto insurance rate.

What are the nine most significant factors that affect auto insurance?

You may be wondering, “what factors affect my rate?” 

The 10 major factors that determine rates are:

1. Age. Age is a factor regarding auto insurance rates. Young drivers are more likely to get into accidents, and older drivers face age-related issues like decreased reaction time.
2. Claims history. If you’ve filed multiple claims, you’ll have higher insurance rates. 
3. Credit score. Credit scores affect your rates as well. Drivers with lower credit scores are more likely to file claims or miss payments. So, they’ll pay higher rates. However, California, Hawaii, Massachusetts, and Michigan insurance companies can’t use credit scores as a factor. Some states, however, ban companies from checking credit scores.
4. Driving history. Traffic tickets, accidents, DUIs, and other similar charges will raise rates. Auto insurance companies check your driving record to determine rates.
5. Gender. Auto insurance rates are different for men and women drivers. Men tend to pay higher rates than females, as statistics show men get into more accidents. However, insurers can’t consider gender in California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania.
6. Marital status and homeownership. Being married and owning a home are signs of responsibility, so it’s assumed that married homeowners carry less risk. Homeowners can bundle multiple auto and homeowners policies, leading to major savings. 
7. Level of education. Like marital status and homeownership, the assumption is that people with higher education levels are also more responsible. However, education level only minimally impacts rates.
8. Vehicle model and make. When setting rates, insurance companies consider safety ratings, crash statistics, and the vehicle’s overall expense.
9. ZIP code. Where you live impacts your rates based on weather, crime rates, living costs, and similar factors. The exception is California and Michigan, where using ZIP codes to calculate rates is prohibited.
10. Commute distance. If you drive more, you statistically increase your chances of an accident. Therefore, those who drive more than average receive higher rates. However, if you drive less than average, you could potentially save with a low-mileage discount.

What gender and credit score laws affect your auto insurance?

While some of these factors make sense, we understand that some may make you uncomfortable. For example, many consumers argue that gender and credit scores do not accurately reflect a person’s driving risk.

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:

• California, Hawaii, Massachusetts, Montana, Pennsylvania, North Carolina, and Michigan have barred auto insurance companies from determining rates based on gender.
• Montana was one of the first states to outlaw determining rates based on gender and marital status. The law came into effect in 1985.
• California, Massachusetts, and Hawaii have outlawed using consumer credit information to determine rates.
• In July 2020, Michigan passed a new law prohibiting insurance carriers from determining rates based on anything but driving record, age, vehicle a driver chooses to drive, and location.

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

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 find a more affordable policy option from our guide, 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 anytime. However, checking with your insurance company and your state’s regulations is essential to determine if you will need to pay any cancellation fees.

It is best to Switch insurers to avoid cancellation fees when your policy is up for renewal.

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 a quote to lighten the load. Take a look.

• Do I want to conduct business with an agent, with a broker, directly with the auto insurance company, online-only, through a national company, or with a local company?
• What is each company’s financial stability, and what are their future positions regarding market share, loss ratios, and third-party rankings?
• Which company offers the best coverage and the most appropriate auto insurance 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. Then, a small company might be right for you.

Are small auto insurance companies better?

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 many policy options, even if it means sacrificing good customer service. Larger companies are usually able to offer a greater variety of discounts and more unique additional policies.

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

Moreover, major insurance companies can easily diversify their services toward 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 depends on several individual factors and preferences. Therefore, pick the best auto insurance company for you.

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What should you know about auto insurance discounts?

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

However, you can also get discounts based on your car and the safety features or anti-theft devices installed. You can also receive discounts for customer loyalty and safe road choices.

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

Often, a car insurance company applies the more significant discounts they provide when drivers use that company’s usage-based driving app or drivers have specially designed equipment installed in their vehicles.

For example:

• American Family, Nationwide, State Farm, and Travelers offer their highest discounts when drivers use their usage-based programs.
• Geico offers its best discount for drivers who have air bags in their vehicles.
• Liberty Mutual provides a significant discount if you sign up for vehicle recovery services.
• Allstate and Progressive reward customers for having good driving records when they sign on.

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

In the table below, we have listed by the company the total number of discounts advertised or confirmed, the highest percentage discount, and our opinion of what kind of customer each is best for. 

Just because an auto insurance company has the best rates doesn’t mean you’ll genuinely value its offerings. Hopefully, the data above will help you find the provider most compatible with your needs.

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 because some basic companies stand out on everyone’s list.

The chances are that you will be happy with your policy if you receive an affordable quote from any of these companies. But ultimately, the best auto 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. 

Keep the following tips in mind while you comparison shop:

• There are several different auto insurance companies.
• Finding the best auto insurance company depends on your personal needs.
• Insurance companies receive their ratings based on their financial stability and customer service.
• A company’s ability to pay claims filed is also important.

Also, remember that some regional and smaller companies have been around for a long time and have provided excellent service and have rates that are comparable to the national companies. However, smaller car insurance companies do not appear on many lists because they are not national.

If you are looking to buy auto insurance, you know that there are dozens of auto insurance companies from which you can choose.

The numerous options lead to many concerns, such as choosing the best company with the lowest rates and that has the best policy for your needs.

The good news is that quite a few reputable and successful auto insurance companies sell products 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 insurer caters to, what regions of the country those companies are cheapest in, and what auto insurance discounts and options are readily available.

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

How should you choose your auto insurance?

You will often find that your auto insurance quotes will be similar for each company. However, learning how to compare and shop correctly will help you make a more informed decision about your auto insurance policy.

Some look for a company with a good track record for quick and easy claims. Some customers search for a company with outstanding customer service. Others choose to purchase from the company 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 from a wide variety of insurers to seek quotes from. The quickest way to do this is by taking advantage of online quote comparison websites like this one.

Different comparison tools offer various features. Try to find one that lets you 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:

• Financial status. You may feel more comfortable with a company with an A++ rating and a stable outlook.
• Teen driver rates. Some companies offer lower discounts for teens, but you should get quotes from each company again with the teen driver added to your policy.
• Customer service ratings. A company may have low rates but bad customer service reviews. If how you are treated is essential to you, pay close attention to ratings.

You can also talk to friends, family, and coworkers about their insurance company. A company with low ratings nationally doesn’t mean they have low ratings locally.

If you still feel uncertain, visit your state’s Department of Insurance. You can find a list of car insurance companies licensed to sell insurance in your state and any legitimate complaints filed against them.

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The Best Auto Insurance Companies for 2022: What is the bottom line?

The bottom line is that the best companies for auto insurance receive their high ratings for a reason. They have consistently provided excellent service and products to their customers.

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

Online comparison tools make buying the best car 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 to find your best deal.

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