The best car insurance company isn’t necessarily the cheapest. It’s tempting to shop for a new insurance policy based on price alone, but you need a company that will be there for you when it comes time to make a claim. After all, you don’t want to choose the cheapest car insurance quote only to find that it doesn’t provide the protection you need.
Our Best Car Insurance Companies ranking uses pricing data and real customer feedback to help you find the best car insurance policy for you.
USAA is our first choice for the best car insurance in the nation. It regularly tops J.D. Power auto insurance studies as one of the best providers in terms of customer satisfaction and value. The company is well known for its high customer ratings and affordable coverage options, including accident forgiveness. However, it has strict eligibility requirements and not everyone qualifies for coverage.
USAA auto insurance is only available to military members, veterans and their families, which greatly restricts who can purchase coverage. If you are eligible for a USAA insurance policy, it’s one of the best options available. Beyond the standard types of car insurance, USAA offers the following optional coverage:
- Roadside assistance
- Rental car reimbursement
- Accident forgiveness
- Glass coverage
- Guaranteed asset protection (GAP insurance)
- Car replacement assistance (CRA)
- Rideshare insurance
USAA received an A++ financial strength rating from AM Best and an A+ rating from the Better Business Bureau (BBB). The auto insurer made up 6.01% of the market share in 2021, according to the NAIC. Though it’s not the largest auto insurer, USAA still has reputable financial strength. In 2021, the company wrote $15.73 billion in private passenger auto insurance premiums.
While USAA does not have many physical locations, policyholders are still impressed by the company’s customer service. USAA earned the top score in the J.D. Power 2021 U.S. Auto Insurance Study in every U.S. region, though it’s unranked due to its eligibility criteria.
And in our January 2022 car insurance survey, nearly 65% of the 107 respondents who had coverage through USAA said they were very satisfied with USAA insurance, the highest of any provider.
USAA is known for its affordability as well. It offers the cheapest car insurance on average compared to any other provider we researched. Our rate estimates show good drivers pay about $1,013 per year on average for full coverage car insurance with USAA. The company also offers discounts based on driver safety, multiple policies, safety features such as airbags and more.
USAA earns top marks from all major third-party rating agencies for customer service and financial strength. Coupled with having the lowest average full coverage premium on our list, customers are privy to multiple coverage options, rewards and discounts, including unique circumstances like deployment for active-duty members. While not all drivers may qualify for coverage from USAA, the company is a standout for millions of military families across the country.
Pros and Cons
- Exceptional customer support
- Military-specific resources
- Wide array of financial services
- Only services military families
- Several customer complaints
- Must be a member to get insurance coverage
If you don’t qualify for USAA insurance coverage, Geico is worth considering as your top choice.The company offers reputable service, a wide selection of coverage and cheap car insurance rates, according to our rate estimates.
Geico is always been a top insurance company in our rankings. Consumers who have filed a claim generally agree that Geico makes the process easy. Most survey respondents also report that they plan to renew their policy, and that they’re likely to recommend Geico to family and friends. However, Geico scored lower than some competitors in terms of value, despite the fact that it offers low rates and good overall customer service.
Geico’s long history as a trusted, household-name auto insurer is reflected in its high Score ratings and is one of the reasons we included it as a top company. Coverage is available for virtually every type of driver, making its car insurance coverage accessible even for consumers with blemished driving histories.
Geico received an A++ (Superior) rating from AM Best, meaning the company has the financial backing to pay customers’ insurance claims. A larger auto insurer like Geico comes with more financial stability compared to a smaller, local company.
Besides the standard coverage options, Geico offers helpful add-ons such as:
- Emergency roadside assistance
- Rental car reimbursement
- Mechanical breakdown insurance (MBI)
- Rideshare insurance
Geico also has a strong customer service reputation. According to the J.D. Power Auto Insurance Study, Geico performed better than average in California and the Central and New England regions. The study surveyed customers on their satisfaction with claims, billing, price, policy and more. Additionally, our January 2022 insurance survey that polled 1,000 respondents found nearly 12% chose Geico as their insurance provider.
Regarding cost, Geico’s rates are some of the most affordable we’ve seen. Our rate estimates show that drivers pay about $1,350 per year on average for full coverage car insurance from Geico. These rate estimates apply to 35-year-olds with good credit and driving records. Our estimates put Geico in the top three companies for affordability compared to other national providers.
On top of that, the insurer offers a number of ways to save money, including a good driver discount (up to 26% off), a good student discount (up to 15% off) and a multi-vehicle discount (up to 25% off).
Why Geico is best for driving incidents: Geico is one of the few top auto insurance companies that will write policies for drivers even after high-risk incidents, such as DUI convictions. While high-risk policies are generally more expensive, a high-risk driver may also have a harder time finding coverage, especially from major car insurance companies. Geico is an easily-accessible option for most people.
As the largest national auto insurer based on market share, State Farm’s reach and reputation highlight the carrier as one of the best car insurance companies for drivers in most states. Its extensive local agent network showcases its customer-first approach to providing a variety of personal and commercial insurance products to consumers.
State Farm is another strong choice when it comes to finding the best auto insurance in the industry. Our January 2022 insurance survey found the insurer is the most popular provider among the 1,000 respondents surveyed, with 13% stating they purchased State Farm insurance coverage.
State Farm makes it easy to file a claim, according to most survey respondents, many of whom plan to renew their policy. State Farm is also the best auto insurance company if you do not have a military affiliation.
State Farm earned slightly lower marks when we asked if customers were satisfied with the company’s status updates during the claims process. Drivers insured through State Farm reported that the company is a good value overall.
State Farm offers the following types of auto insurance coverage:
- Collision coverage
- Comprehensive coverage
- Liability coverage
- Car rental and travel expenses coverage
- Uninsured motor vehicle coverage
- Medical payments coverage
- Emergency roadside assistance
- Rideshare driver coverage
Our cost estimates show good drivers pay an average of about $1,339 annually for full coverage insurance with State Farm. This ranks State Farm among the most affordable national providers.
As the biggest car insurance company in the country, State Farm is no stranger to claims satisfaction — the company has an A++ rating from AM Best. According to the NAIC, State Farm accounted for 15.93% of the auto insurance market share in 2021. State Farm also had fewer complaints than the industry average in 2020, though customer reviews on the BBB are mixed.
We chose State Farm as one of the nation’s best car insurance companies in part because of the usage-based and safe driving discounts it offers to young drivers. There are two discount programs available through mobile apps:
- Drive Safe & Save: State Farm tracks and rewards safe driving habits through the Drive Safe & Save mobile app. By reducing driving behaviors such as quick accelerations, hard braking and speeding, drivers can earn up to 30% off their premiums. This program is not available in California, Massachusetts or Rhode Island.
- Steer Clear®: Teens and new drivers can receive course training, mentoring, driving practice and a program certification to encourage good driving habits. After successfully completing the program, drivers get a discount on their auto insurance premium.
Other State Farm auto insurance discounts include those for good grades, safe driving, defensive driving, vehicle safety features and driving course completion. The company does not offer a military discount.
State Farm company boasts over 19,000 licensed insurance professionals, available in communities across the U.S., who can offer guidance to those who value expert insight when discussing their policy. Digital management options allow for an on-the-go approach, including a highly-rated mobile app where you can file auto claims and contact your agent.
Pros and Cons
- Huge local agent network
- Financially strong
- Not available in Massachusetts or Rhode Island
- Does not offer gap insurance coverage