Best Car Insurance Companies

While the price of car insurance is one of the most important factors to drivers shopping for a policy, the best auto insurance companies offer more than competitive premiums. Top car insurance companies also handle claims well, score high on customer satisfaction and receive relatively few complaints.

We analyzed all of these factors to determine which car insurance companies provide the best value. We looked at the biggest and highest-rated insurance companies across the country to come up with the rankings highlighted below.

Here’s a spoiler: we found Erie and USAA to be the best insurance companies for good drivers looking for a solid value. And we found Safeway, GEICO and Country Financial to be the best insurance companies for drivers with bad credit who still want affordable coverage.

Keep reading to find out which car insurance companies offer the best value and cheapest prices to young drivers as well, and which companies have the best car insurance discounts. You will also learn about:

• 10 top car insurance companies
• Best value car insurance
• Best auto insurance discounts
• Comparing car insurance company ratings
• 10 biggest auto insurance companies

Top 10 best car insurance companies

The best car insurance companies for 2022 have high levels of customer satisfaction and low levels of complaints.

Using an objective scoring methodology that incorporated the feedback of thousands of people across the country, we found the top 10 best car insurance companies with regards to these factors.

Note that not all of these auto insurance companies serve all people and states. Make sure to gather and compare car insurance quotes from several companies to get your best rate.

Best auto insurance companies by value

Here are the factors people care about most when choosing a car insurance company, according to a QuoteWizard survey:

1. Cost of premium
2. Reputation of company
3. Customer service
4. Benefits (such as roadside assistance or discounts)
5. Local office
6. Recommendations from friends or family
7. Online reviews
8. Same provider spouse uses

We'll dive into the best value car insurance based on affordability, customer service and benefits in this guide.

Erie and USAA are the best car insurance companies for good drivers who want cheap coverage

We found that Erie and USAA offered the cheapest car insurance across all states, where they are available.

Erie isn't available nationwide, and USAA is only available to military personnel, veterans and their families.

GEICO is the cheapest nationwide provider available to most types of drivers.

Safeway, GEICO and Country Financial are the cheapest car insurance companies for drivers with bad credit

The most affordable auto insurance companies for drivers with bad credit are Safeway, GEICO and Country Financial, based on our research.

On average, drivers with poor credit can expect to pay higher premiums than those with good credit. We found the national average car insurance premium for drivers with bad credit to be $1,249 a year. This is almost double the $641 average for a driver with excellent credit.

We found multiple major insurers that offer rates below the national average for drivers with bad credit, including Safeway, GEICO, Country Financial, Farm Bureau, Allstate and USAA, among others.

To find the best value car insurance company for you, make sure to shop around for quotes.

USAA, Country Financial and GEICO offer the most affordable car insurance rates for young drivers

The average auto insurance premium for an 18-year-old driver is $2,044 per year. This is more than three times the average annual rate of $641 for an equivalent 35-year-old driver.

Multiple companies — including Allstate, State Farm and GEICO — offer average car insurance rates for young drivers that are significantly more affordable. For example, Country Financial offers an average rate of $1,185 per year for young drivers, which is $859 per year less than the national average.

These differences in premiums highlight how important it is to shop around for quotes to find the best car insurance company for you.

Best auto insurance companies for discounts

Every car insurance company offers different discounts and rates that often vary greatly for each driver. We analyzed all of the discounts offered by the top 16 auto insurance companies and found the best discounts available.

Don’t immediately pass on a company that doesn’t offer a specific discount. It may still give you a rate quote that’s better than ones you get from insurers that offer all the discounts you want. This is why shopping around for car insurance is so important.

Something else that is important to remember is everybody has a different opinion on auto insurance providers. It is up to you to decide what you value the most when shopping for car insurance: price, coverage options, customer service or satisfaction, or extras like free accident forgiveness or diminishing deductibles.

In other words, there is no best car insurance company for any single person.

Based on discounts and coverages available across providers, here's what we found:

• Best discounts for young drivers: American Family
• Best discounts for good drivers: MetLife
• Best discounts for responsible payers: Travelers
• Best discounts for bundling: Farmers
• Best discounts for those with new cars: Allstate
• Best discounts for senior drivers: The Hartford

Best car insurance discounts for young drivers: American Family

Car insurance companies tend to make many discounts available to young or new drivers. Teens and college students are also eligible for some discounts. Insurance for new drivers is particularly expensive because of their higher statistical likelihood to get into an accident, so discounts might matter a lot for young drivers. All 16 auto insurance companies we studied offer at least one discount for young and new drivers. It is always in your best interest to shop around to make sure you get your best rate.

We found four types of discounts for young and new drivers:

• Good student
• Safe driving course completion for teens
• Student away at school
• Young volunteer

American Family is the only insurance provider that offers all four discounts. The young volunteer discount is unique to American Family, offering lower premiums for teens and young adults who volunteer at least 40 hours a year with a nonprofit organization.

Runners up that have good student, safe driving and student away at school discounts are:

• Amica
• Farmers
• Progressive
• State Farm
• Travelers

Best car insurance company discounts for good drivers: MetLife

Good drivers should consider MetLife because it offers all major good driver discounts, a free diminishing deductible and savings of up to 30% for safe drivers through its My Journey app.

If you're a careful driver with no violations or claims in the past few years, you'll likely find cheaper car insurance rates than you would if you were a high-risk driver. Many car insurance companies offer additional discounts for good drivers — specifically good driver discounts, accident-free discounts and low mileage discounts — if you are willing to download an app or use a device to track your driving habits. If you have good driving habits, your premium might drop as a result.

MetLife offers all of the major safe driver discounts:

• Safe driving record discounts
• Accident- and claim-free discounts
• Driver safety course discounts

If you don't mind sharing your driving habits, MetLife offers the opportunity to save with its My Journey program app, which is available in 20 states. By enrolling in the program and downloading the app, you'll receive:

• An enrollment discount (one time, up to 25%).
• A renewal discount (based on safe driving score, up to 30%).

Your My Journey safe driving score will not lead to an increase in auto insurance rates with MetLife. While many insurers offer similar programs, MetLife might have an advantage if it offers you competitive rates.

Best car insurance companies for bundling discounts: Farmers

Farmers offers the best discount for bundling insurance policies among its competitors, providing an average of 20% in savings.

Almost every major insurer offers a discount when you bundle insurance policies. In other words, if you purchase auto and home insurance from the same company, you are most likely eligible for a discount on at least one of those policies. In our own survey, QuoteWizard found that over half of drivers bundle their insurance policies.

Best car insurance discounts for drivers with new cars: Allstate

Allstate offers the most comprehensive discounts and coverages for people with new cars, which include:

• New car replacement coverage: If your car gets totaled and is at most two model years old, Allstate will replace your car, not just pay the depreciated value.
• New car discount (up to 15%)
• Safety equipment discount (10% discount for anti-lock brakes and 10% discount for anti-theft technology)
• Guaranteed asset protection (gap coverage) to pay off the difference between the amount you owe on your car and its actual cash value in case of a total loss.

Best car insurance discounts for drivers who are responsible payers: Travelers

While most insurers offer discounts for responsible payers, Travelers offers the greatest amount of and most competitive discounts of this type. You can find steep discounts on your car insurance premiums by paying responsibly. This might mean paying in full, setting up auto-pay or not missing payments.

Travelers offers these discounts for responsible payers:

• Pay in full (up to 7.5%)
• Auto-pay (up to 3%)
• Consistently paying on time (up to 15%)
• Drivers with no gaps in coverage (up to 15%)
• Getting a Travelers quote before your current policy expires (up to 10%)

Best car insurance company for seniors: The Hartford

The Hartford has an exclusive partner program with AARP to offer seniors over the age of 50 exclusive discounts and benefits. Discounts are important for those 50 and older, as most seniors can expect their premiums to rise as they age. Only a few companies offer an explicit senior car insurance discount. Other insurers offer discounts if those over 50 or 55 years old enroll in and complete a defensive driving course.

If you're an AARP member, which is a nonprofit group for Americans 50 years and older, you could be eligible for the AARP Auto Insurance Program from The Hartford. AARP annual membership only costs $16, so even if you aren’t currently a member, it might be worthwhile to look into it.

To be eligible, you need:

• To be at least 50 years old.
• An AARP membership.
• A valid driver's license.
• Valid vehicle registration.

Exclusive benefits and discounts from the AARP Auto Insurance Program from The Hartford include:

• Discounts if you participate in the AARP Driver Safety Program (available in 35 states).
• Rate lock for 12 months.
• RecoverCare, which pays for up to $2,500 for help such as cooking and cleaning if you're injured in a car accident.

Best car insurance coverage and discounts for military and veterans: GEICO and USAA

GEICO and USAA both offer car insurance discounts for military members and veterans. USAA is available exclusively to those in the military, veterans and their families. Because USAA and GEICO offer coverage in case of deployment, they might be the best car insurance companies for those in the military.

Best car insurance company for government employees: GEICO

GEICO stands for Government Employees Insurance Company and was started in 1936 specifically to serve federal employees. GEICO continues to serve government employees with its Eagle Discount and Membership Discount, although the two cannot be combined.

If you are an active or retired federal government employee, you might qualify for GEICO's Eagle Discount. If you are a federal employee GS-7 or above, or are non-GS but are equivalent to GS-11 or above, you may be eligible for this government employee car insurance discount. GS-7 refers to the General Schedule pay scale, which is used to calculate certain government employees' salaries.

In 2022, a federal employee classified as GS-7 earned $37,674 to $48,978 per year. An employee classified as GS-11 earned $55,756 to $72,487 per year. GEICO also partners with many federal groups. If you're a member of one of these groups, you might get a discount through GEICO.

Comparing auto insurance company ratings

There are many sources for auto insurance company ratings. Each of these sources usually measures a different factor. For example, J.D. Power provides ratings on customer satisfaction, while NAIC produces ratings based on customer complaints.

Here's what these car insurance ratings tell you:

• Market share percentage is how much of the car insurance market a particular company holds, according to S&P. In this case, State Farm is the largest auto insurance company, occupying almost 15% of the industry.
• The NAIC Complaint Index comes from the National Association of Insurance Commissioners. This rating compares the number of complaints a company receives relative to its share of premiums in the market. A score under 1.0 means an insurer has relatively few complaints for a company of its size. A score above 1.0 means it has relatively high complaints.
• A.M. Best scores measure the financial stability of a company. Anything in the A range is stable, meaning your car insurance company should be afloat and able to pay out claims.
• Consumer Reports Reader Scores are measured out of 100 and based on over 100,000 reports by Consumer Reports members. These scores average satisfaction ratings of members on the factors of premiums, claims, service, policy reviews, and help and advice.
• Better Business Bureau ratings represent the BBB's opinion of how the business is likely to interact with its customers. A+ is the highest score a company can receive, but it does not tell us about customer satisfaction.
• The Customer Satisfaction Index from J.D. Power averages the customer satisfaction scores from respondents and groups these scores by regions. The best score is 1,000.
• J.D. Power Circle Ratings indicate how a company satisfies its customers relative to a competitor. These scores range from 1 to 5, with 5 placing a company “among the best.”

10 biggest auto insurance companies

The 10 biggest car insurance companies make up over 60% of the market. The top three largest auto insurance companies are State Farm, GEICO and Progressive.

How to find the best car insurance company for you

While we've analyzed the best car insurance companies in general, finding the best rate is specific to your driving history, location, the car you drive and other factors. Deciding on the best auto insurance company for you also means knowing the services and discounts you want from a provider, such as great claims service or 24-hour roadside assistance. Here's how you can find the best car insurance company for you:

• Get multiple quotes and make sure to give as much information as possible when you shop around. This is how you find the discounts that are best suited to you. You can gather quotes from many car insurance companies at once through QuoteWizard, or you can reach out to companies individually.
• Consider not only the price of a policy, but a company’s customer satisfaction ratings as well.
• Make sure you shop for the coverage you need. Figure out if you need special coverages for a collectible car, for example, or if you need the minimum liability coverage, which varies by state.

Methodology

We conducted a comprehensive study of auto insurance rates across a sample of ZIP codes across all 50 states and Washington, D.C., through Quadrant Information Services. For our base driver, we used a single, 35-year-old male with a 2012 Honda Accord, clean driving record, 15,000 miles in annual mileage and excellent credit.

Variations from our base driver include:

• Changing the age of our base driver from 35 years old to 18 and 50 years old.
• Changing the base driver to have poor credit instead of excellent credit.

Company and state averages for young drivers and those with bad credit are sampled from six states. These six states' average car insurance premiums are closest to the national average.

Unless otherwise noted, state averages are for our sample 35-year-old base driver. Some company premium quotes are not publicly available and are not accounted for in this study. Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

1QuoteWizard's Customer Satisfaction Rating is based on data from Consumer Reports, J.D. Power and the National Association of Insurance Commissioners. The satisfaction rating is calculated by multiplying the claims, service, and help and advice scores from Consumer Reports with J.D. Power's Customer Satisfaction Index and Power Circle scores. This rating is then divided by the NAIC Complaint Index. Star and score ratings out of five are grouped based on percentile.

References:

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