Compare auto insurance rates
Enter your zip code to shop for the best rates in your area:

Finding the best car insurance coverage can be frustrating. Every insurer claims to have the lowest price and superior customer service, but they can’t all be number one. Our team reviewed dozens of car insurance companies across the industry to find out which ones offer the best rates and service to consumers. 

We spent 1,950 hours researching all major insurance companies and creating guides on different types of insurance. During research, our team interacts with companies through secret shopping, collects industry ratings, and analyzes hundreds of customer reviews. We also review car insurance costs from Quadrant Information Services, which include millions of rows of data for a variety of driver types and situations.

There is no one best car insurance provider for every driver, which is why we recommend getting quotes from several companies. Along with the company you choose, factors such as your age, vehicle make and model, and driving history affect your rate. That’s why it’s important to compare quotes to ensure you get the best car insurance coverage and price.

Why You Can Trust Motor1.com At Motor1.com, we are dedicated to supplying car owners with the well-researched, fact-checked information they need to make sound decisions about auto insurance. Our team analyzes provider offerings and customer insights so you can feel empowered to make the best choice.
Reviews Analyzed Motor1
4,330 Reviews Analyzed
Companies Reviewed Motor1
43 Companies Reviewed
Customers Surveyed Motor1
8,500 Customers Surveyed

What To Know Before Shopping For Car Insurance

There are a few things to be aware of before you start shopping around for insurance.

How Much Car Insurance Do You Need?

Every state except New Hampshire and Virginia requires you to carry, at minimum, the following types of car insurance coverage:

  • Bodily injury (BI) liability coverage: This pays for medical expenses for injured persons after an accident you cause. BI coverage does not pay for the cost of your medical expenses. This comes with separate limits per person and per accident.
  • Property damage (PD) liability coverage: This pays for damage to other vehicles and property after an accident you cause. PD coverage does not pay for damages to your vehicle. This comes with a per-accident limit.

You will see limits for liability insurance written as 25/50/25, for example. In this case, the policy would cover up to $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage per accident.

Each state sets its own laws and limits. In some states, you may also be required to have:

  • Underinsured/uninsured motorist coverage: This pays for damages to your vehicle and medical expenses after an accident with an uninsured or underinsured driver. Its limits mirror liability limits, like 25/50/25.
  • Personal injury protection (PIP): This pays for your medical expenses and other costs related to personal injury after an accident, such as lost wages. 
  • Medical payments coverage: This is a less comprehensive version of PIP that pays for medical expenses if you are injured in an accident.

You can check your state laws to learn exactly what coverage you’ll need, but most insurance companies – including all the recommendations on this list – will not sell you a policy that doesn’t meet your state’s minimum insurance requirements.

An infographic table that shows what the six standard types of insurance do and don't cover, and where they're required.

Do You Need Comprehensive And Collision Car Insurance?

While they’re not required by law, if you finance or lease a vehicle, your lender may require you to purchase:

  • Comprehensive insurance coverage: This pays for damages to your vehicle that are the result of theft, weather, collision with an animal, or other damage your vehicle may incur while parked.
  • Collision coverage: This pays for damages to your vehicle after an at-fault accident or collision. (If someone else causes the accident, their property damage insurance pays to fix your car.)

Lenders require these types of coverage because it protects their stake of ownership in your vehicle until you pay off the loan.

Even if you’re not required by a lender to maintain comprehensive and collision coverage, these policies are worth it for most drivers. However, the value of this coverage depends on your car. Comprehensive and collision policies typically pay up to the actual cash value (ACV) of the insured vehicle. As your car ages, ACV decreases, as does the value of comprehensive and collision policies.

How Deductibles Work

Since these coverages pay up to the value of your vehicle, that’s the limit. What’s up to you is your deductible, which is the amount you pay out of pocket before comprehensive or collision coverage kicks in.

Deductibles usually range from $100 to $1,000. A low deductible saves you money after an accident, but it also increases your car insurance premium. On the other hand, a high deductible lowers your premium, but it increases the amount you have to pay before coverage will come into play.

What Is Full-Coverage Insurance?

Full-coverage insurance combines liability coverage (bodily injury and property damage) with collision and comprehensive insurance. When you hear the term full coverage, this is what it typically means. It doesn’t necessarily include uninsured/underinsured motorist or medical coverage, though you may have those options available.

Best Car Insurance Coverage

In our opinion, the best car insurance coverage choice is to get full coverage with limits of at least 100/300/100. This gives you plenty of room in case you experience a serious accident. Collision and comprehensive coverage will also take care of your car if you cause an accident.

Tort Vs. No-Fault States

Generally speaking, there are two ways bodily injury liability works among different states: tort and no-fault. Most states are tort states. This means the at-fault driver’s insurance pays for the injuries of the victim. The other option is a no-fault system. About a third of states are no-fault states at this time. This means both drivers use their own PIP coverage to pay for their medical bills.

A few states are choice-no-fault, which means drivers can pick whether they use the no-fault or tort system.

If you live in a no-fault state, your state has laws that allow victims to sue for medical claims over a certain limit. In some states, these limits are low and drivers tend to sue one another more often than in other states. This can drive up the cost of car insurance for everyone in the state.

How Car Insurance Shopping Works

You can get car insurance in a few main ways:

  • Online comparison tools: With online comparison sites, you can get quotes for multiple car insurance companies at once. The tool on this page is an example.
  • Directly from the company: Many companies sell policies directly to consumers online. You can call customer service for help and speak to an agent if you want to, or you can shop for and buy a plan without speaking to anyone.
  • From a captive agent: A captive agent sells insurance for one company. They can help you pick the right plan from that company for your situation and enroll you in coverage.
  • From an independent agent: An independent agent sells insurance for multiple companies and can compare them for you. They may work at an agency with multiple independent agents. They can enroll you in coverage.
  • From an insurance broker: A broker represents the buyer and can get quotes from as many companies as the buyer wants. However, the broker doesn’t work for an insurance company, so they can’t enroll you in coverage. They’ll work with an insurance agent to finalize enrollment.

Of course, many people get insurance in a different way: through family. Multi-car and multi-policy discounts are common, so it’s easy to add a teen or new driver to a family plan. You just have to live at the same address to be on the same plan.

Methodology: How We Rate Insurance Companies

While you’re required to have car insurance on a registered vehicle, you aren’t required to go with a specific provider. You may have ten or twenty car insurance companies available in your area, and there are hundreds nationwide. That’s why our team compared dozens of the most popular companies on industry standing, availability, coverage, cost, and customer service.

Industry Standing

For industry standing, we look at company longevity, total written premiums and market share according to the National Association of Insurance Commissioners (NAIC), AM Best financial strength rating, and Better Business Bureau (BBB) rating. These are the starting points that tell us if a company is legitimate and trustworthy.

Availability

This score includes availability by state as well as any restrictions on availability by affiliation. For example, USAA is only available to military members and their immediate family members, and The Hartford is only available to AARP members.

We give better scores to providers that offer greater availability. However, we know there are some great insurance companies that are only available in a few states, like Erie Insurance. We also account for whether a company is a national or regional provider.

Coverage

All providers offer the six basic types of car insurance we covered above. But some go above and beyond to offer more options like:

  • Rideshare insurance
  • Classic car insurance
  • Mechanical breakdown insurance
  • Usage-based insurance
  • Rental car coverage
  • Trip interruption
  • Gap insurance
  • Accident forgiveness
  • New car replacement

Cost And Discounts

Cost is the bottom line for most car insurance shoppers. Our team includes discount opportunities and data from Quadrant Information Services in this rating. Cost data covers male and female drivers of many age groups: 16, 17, 18, 19, 21, 25, 30, 35, 40, 45, 50, 55, 65, and 75.

We also look at insurance costs for drivers with violations: speeding tickets, DUIs, and at-fault accidents in different combinations. Costs are based on average rates for three vehicles: a 2022 Toyota Camry, 2022 Hyundai Accent SE, and 2022 Ford F-150 XL.

Finally, costs cover minimum- and full-coverage insurance. State minimum coverage matches the minimum requirements in each state, while full coverage has liability limits of 50/100/50 and a comprehensive/collision deductible of $500.

Customer Service

Customer service is a crucial element of an insurance company. When you get into an accident, do you have someone to stand by you and walk you through the process? Our team looks at a company’s reputation for claims service and considers studies from J.D. Power. We also look at complaint level in proportion to company size and incorporate ratings from our own consumer survey in this score.

Technology

Lastly, we look at the type of technology the company offers. Today, most people expect to have a functional app to pull up insurance cards and pay their bills. We also consider if a company offers usage-based insurance, like Progressive’s Snapshot® or State Farm’s Drive Safe & Save™.

Our Insurance Survey

To date, our team has surveyed nearly 8,000 car insurance customers on a variety of issues. We asked customers what matters most to them when shopping for insurance and weighted our category scores accordingly. We also surveyed customers on their satisfaction with different insurance companies. We used these satisfaction ratings in calculating top providers’ customer experience scores.

Best Car Insurance Companies

Below, you can compare our top 10 picks for car insurance with our overall rating and average annual costs for full-coverage insurance.

Best Car InsuranceSuperlativeOur RatingAverage Annual Cost Estimate
State FarmBest Overall4.7$1,481
USAABest for Military4.6$1,054
GeicoBest Discount Availability4.6$1,308
Liberty MutualBest for Teens4.5Not available
TravelersBest Coverage Selection4.5$1,669
ErieBest for Basic Coverage4.4$1,238
ProgressiveBest for High-Risk Drivers4.4$1,611
NationwideBest for Seniors4.4$1,281
Farmers4.3$2,140
Auto Owners4.3$1,338

More About The Top 5 Car Insurance Companies

Let’s take a closer look at our top five picks.

#1 State Farm: Best Overall

AM Best financial strength rating: A++

Overall satisfaction on our consumer survey: 4.2/5.0

State Farm is our pick for Best Overall because it offers affordable rates, a variety of upgrade options, and many helpful discounts. State Farm is the largest car insurer in the U.S., with a market share of 16 percent according to the NAIC, and it wrote over $41.7 billion in premiums in 2021.

State Farm Car Insurance Cost

Number of discounts: 10

Compared to the average industry cost of $1,730 for full-coverage car insurance, State Farm offers affordable rates of $1,481 on average per year. That’s about 14 percent cheaper. Below, you can see State Farm rates for a few different driving scenarios.

Average Annual CostAverage Monthly Cost
Full coverage$1,481$123
Minimum coverage$543$45
Full coverage with a speeding ticket$1,726$144
Full coverage with an at-fault accident$1,882$157
Full coverage with a DUI$2,180$182

State Farm rates are competitive and can be especially low if you can take advantage of the insurer’s special discount programs:

  • Drive Safe & Save™: This is State Farm’s usage-based insurance app. If you score high enough, you can get up to a 30 percent discount on your premium. The app tracks things such as cornering, hard braking, acceleration, and phone use while driving. It can only give you a discount – it can’t raise your rates for bad driving.
  • Steer Clear: This is an educational app available for drivers under the age of 25. Drivers complete in-app courses, log progress with a mentor, complete driving hours, and receive a certification. All that translates into a discount, which is why we think State Farm is the best auto insurance option for students.

State Farm Auto Insurance Coverage

With State Farm, you can get standard auto insurance policies as well as the following additional coverage:

  • Roadside assistance: State Farm will cover up to one hour of labor at the breakdown site, fluid delivery, spare tire installation, jump-starts, towing, and lockout services.
  • Car rental expense: This option pays for a rental car while your car is in the shop for a covered repair. You can choose the limits of this policy.
  • Travel expense: State Farm will pay up to $500 for food, lodging, and travel if you get into a car accident more than 50 miles from home. This option also includes a trip to retrieve your vehicle.
  • Rental deductible: State Farm will pay up to $500 toward your deductible if you get into an auto accident while driving a rental car.
  • Other insurance products: Other coverage through State Farm includes health, boat, home, life, rental property, and rideshare insurance.

State Farm Car Insurance Reviews

State Farm has an A+ rating from the BBB at this time. We found that the company’s customer reviews on the BBB website and Trustpilot are below average, however. In the J.D. Power 2022 U.S. Auto Insurance Study℠, State Farm ranked first in the Southwest region and above-average in most other regions of the country. This study covered billing process and policy information, claims, interaction, policy offerings, and price.

On our consumer survey, State Farm scored high for its claims service (4.2), claim settlement value satisfaction (4.2), mobile app (4.2), customer service from agents (4.1), and shopping experience (4.0). Overall, 78% of people would recommend State Farm to a friend.

State Farm Pros And Cons

Pros Comprehensive coverage offerings Extensive selection of discounts Easy online quotes process
Cons Reported errors with autopay Not available for new customers in Massachusetts or Rhode Island Mixed customer reviews

State Farm Accident Forgiveness

You can qualify for State Farm’s accident forgiveness program if you have had insurance with State Farm for over nine years and have not filed a claim during that time. This is one of the longest qualification periods for accident forgiveness in the market.

To learn more about this car insurance provider, check out our review of State Farm auto insurance.

#2 USAA: Best For Military

AM Best financial strength rating: A++

Overall satisfaction on our consumer survey: 4.3/5.0

If USAA were available to everyone, it would be our first pick overall. However, USAA policies are only available to military members, veterans, and their immediate families. To qualify, you must be a member of the armed services or have a parent or spouse with a USAA membership. Besides that drawback, USAA stands out when it comes to cost, service, and coverage.

USAA Car Insurance Cost

Number of discounts: 10

USAA tends to be the cheapest provider for many types of drivers. It offers average full-coverage rates that are 39% cheaper than the industry average. It also offers cheap minimum-coverage policies and affordable coverage on average for drivers with tickets, accidents, or DUIs on their records.

Average Annual CostAverage Monthly Cost
Full coverage$1,054$88
Minimum coverage$333$28
Full coverage with a speeding ticket$1,397$116
Full coverage with an at-fault accident$1,647$137
Full coverage with a DUI$2,236$186

USAA’s standout discounts include those for military members. It offers a 60 percent discount for military deployment and a 15 percent discount for garaging a vehicle on base.

USAA also offers a usage-based program called SafePilot® that can help drivers save up to 30 percent. The app is a telematics insurance program that tracks safe driving habits and rewards good drivers. It’s available everywhere except California, Delaware, New Jersey, and New York.

USAA Auto Insurance Coverage

On top of the standard options for car insurance, which we will be diving into below, USAA offers:

  • Roadside assistance: Roadside assistance adds coverage for emergency towing, lockout services, gas delivery, and spare tire installation.
  • Rental reimbursement: This option pays toward a rental car after you file a covered insurance claim.
  • Accident forgiveness: In some states, USAA members can purchase accident forgiveness insurance that protects their rates after one accident.
  • Other insurance products: USAA offers numerous insurance products, including USAA motorcycle insurance as well as rideshare, boat, renters, homeowners, collectible, flood, vision, pet, and life insurance.

USAA Auto Insurance Reviews

USAA was not eligible for ranking in the J.D. Power Auto Insurance Study. However, the insurer was included in the study and scored highest for customer satisfaction in nearly every region surveyed.
USAA scored well across many areas of our survey including its claims service (4.3), mobile app rating (4.2), customer service from agents (4.2), and confidence that USAA has a customer’s best interest in mind (4.2). Overall, 78% of people would recommend USAA to a friend.

USAA Pros And Cons

Pros Affordable rates and numerous discounts Excellent option for military members and young drivers Superior financial ratings from AM Best Nationwide availability
Cons Only available for military members, veterans, and their families

To learn more about this car insurance provider, check out our full review of USAA insurance.

#3 Geico: Best Discount Availability

AM Best Financial Strength Rating: A++

Overall satisfaction on our consumer survey: 4.1/5.0

For the majority of drivers, there’s Geico. The company offers some of the most competitive prices on the market, and it’s one of the best auto insurance options available nationwide. We named it Best Discount Availability because it offers 16 discounts that give many different types of drivers a chance to save money. And who doesn’t want that?

Geico Car Insurance Cost

Number of discounts: 16

Geico is another affordable provider compared to the industry. It offers full-coverage rates about 24 percent cheaper than the industry average.

Average Annual CostAverage Monthly Cost
Full coverage$1,308$109
Minimum coverage$468$39
Full coverage with a speeding ticket$1,791$149
Full coverage with an at-fault accident$2,364$197
Full coverage with a DUI$3,376$281

If you can’t get USAA, you’ll probably find the best car insurance rates from Geico. And if you’re a safe driver, you could save even more. Geico offers a usage-based program called DriveEasy.

DriveEasy tracks distracted driving, speed, hard braking, cornering, distance, smoothness, time of day, and weather. Not all of those directly impact your discount. Also, the discount can vary by state. DriveEasy is available in 34 states at this time.

Geico Car Insurance Coverage

In addition to standard car insurance, GEICO offers:

  • Roadside assistance: Through Geico’s Emergency Road Service, drivers can request roadside assistance right in an app. It includes coverage for towing, jump starts, flat tire changes, and lockout services.
  • Rental reimbursement: This option helps pay rental car costs when your car is being repaired after a claim. Enterprise Rent-A-Car bills Geico directly under this arrangement.
  • Mechanical breakdown insurance (MBI): MBI is similar to an extended car warranty, except you pay for it with your auto insurance policy. This program covers repairs for all mechanical parts, though it doesn’t cover maintenance or regular wear and tear. MBI is available for vehicles under 15 months old or with fewer than 15,000 miles, and it can be renewed annually up to 7 years or 100,000 miles.
  • Other insurance products: Geico offers many kinds of insurance, including boat, rideshare, condo, mobile home, landlord, professional liability, overseas, and jewelry insurance.

Geico Auto Insurance Reviews

Geico has an A+ rating from the BBB and scored well in the J.D. Power U.S. Auto Insurance Study. It ranked above average in all regions except the Southeast, the Mid-Atlantic, and Texas.

In our consumer survey, Geico scored well for its mobile app (4.2), claims service (4.2), and value of claim settlement (4.1). Overall, 77% of customers would recommend Geico to a friend.

Geico Pros And Cons

Pros A+ rating from the BBB and A++ financial strength rating from AM Best Many choices for coverage High level of customer claims satisfaction Available in 50 States
Cons Average quote experience

To learn more about this car insurance provider, check out our full Geico review.

#4 Liberty Mutual: Best For Teens

AM Best financial strength rating: A

Overall satisfaction on our consumer survey: 4.1/5.0

Liberty Mutual earns the fourth spot on our list of best car insurance companies for its programs for teens. Being a young driver is hard because insurance rates tend to be expensive. Teens have a higher risk of getting into an accident, statistically speaking. However, Liberty Mutual makes things more affordable with the following discounts for young drivers:

  • New teen driver discount: Get a discount when you add a new teen to your policy within the last year.
  • Teen driving program discount: Drivers under 21 can get this discount if they complete a qualified training program.
  • Good student discount: This discount applies to students under 25 who maintain a B average.
  • Student-away-at-school discount: If your teen lives away from home and only rarely drives your car, you could save on your policy.

Liberty Mutual Cost

Number of discounts: 13

In our consumer survey, Liberty Mutual customers rated the company slightly higher than average for affordability. The average rating was 3.7 out of 5.0, while Liberty Mutual customers rated the company 3.8 for affordability. While cost data from Quadrant Information Services is not available for Liberty Mutual, we believe it to be an affordable company because of these survey responses.

The company also offers a variety of discounts besides the ones for teens mentioned above. These include: 

  • Homeowner discount
  • Military discount
  • Claims-free discount
  • Violation-free discount
  • Multi-policy and multi-car discounts
  • Discounts for autopay, paying in full, buying online, and paperless billing

Finally, Liberty Mutual’s Right Track® program can help good drivers save up to 30 percent. Depending on where you live, you’ll either use a mobile app or plug-in device to track your driving.

Liberty Mutual Coverage

Liberty Mutual offers some of the best coverage upgrades in the industry. Some companies may offer two or three different options beyond standard coverage, while Liberty Mutual offers 10. Here are the details.

  • Deductible fund: This add-on reduces your deductible by $100 each year (and costs $30 each year for you).
  • Lifetime repair guarantee: With this option, Liberty Mutual will arrange your auto repairs from an approved facility and guarantee the repairs for life.
  • New car replacement: This covers your vehicle for its original replacement cost if you total it within one year of 15,000 miles (from the in-service date).
  • Better car replacement: With this add-on, Liberty Mutual will replace your totaled car with a model one year and 15,000 miles newer.
  • Rental car reimbursement: This covers the cost of a rental car while your car is in the shop after an accident up to a limit. If you go to a Liberty Mutual preferred shop, the coverage will last until the repair is completed.
  • Roadside assistance: This covers towing, battery jump-starts, fuel delivery, spare tire assistance, and lockout assistance.
  • Gap insurance: This covers the difference between your car’s value and what you owe on your auto loan in the case of a total loss.
  • Original parts replacement: This option ensures repairs use original equipment manufacturer parts whenever possible. 
  • Teachers’ auto insurance: This covers up to $2,500 of teaching materials in your car and waives your deductible if your car is vandalized at school or damaged while you’re driving for school business.
  • Mexico car insurance: This option covers your car if you drive into Mexico.

Liberty Mutual Reviews

Liberty Mutual has an A+ rating with accreditation from the BBB. However, Liberty Mutual performed below average in most regions on the J.D. Power Auto Insurance Study.

In our customer survey, Liberty Mutual scored well for claims service (4.1), its mobile app (4.1), and customer service from agents (4.0). Overall, 75% of customers would recommend Liberty Mutual to a friend.

Liberty Mutual Pros And Cons

Pros Discount programs for teen drivers Many coverage upgrades High customer satisfaction on our survey
Cons Below-average scores on J.D. Power Auto Insurance Study

#5 Travelers: Best Coverage Selection

AM Best financial strength rating: A++

Overall satisfaction on our consumer survey: 4.2/5.0

Travelers rounds out our top five picks for best car insurance because it offers a great coverage selection including gap insurance, accident forgiveness, and Premier New Car Replacement®. Travelers has been around since 1864 and is the 10th-largest car insurance provider according to the NAIC.

Travelers Cost

Number of discounts: 14

Travelers is a bit more affordable than the industry average. Its annual full-coverage rate of $1,669 falls just below the industry average of $1,730. It also offers more affordable rates for people with points on their driving records than the industry averages for speeding, an at-fault accident, and a DUI.

Average Annual CostAverage Monthly Cost
Full coverage$1,669$139
Minimum coverage$730$61
Full coverage with a speeding ticket$2,006$167
Full coverage with an at-fault accident$2,193$183
Full coverage with a DUI$2,332$194

Travelers Coverage

Coverage options is where Travelers stands out. In addition to standard options, Travelers offers:

  • Loan/lease gap insurance: If you total your car, this covers the difference between what you owe on the loan or lease and its cash value.
  • Rental coverage: This covers a rental car while your vehicle is in the shop after an accident.
  • Roadside assistance: This covers services to get your car back on the road if it breaks down, needs a tire change, runs out of gas, and more.
  • Premier New Car Replacement: This pays to replace your car with a car up to five model years newer. You need to be the original owner and have purchased the car within the last five years.
  • Accident forgiveness: This option forgives one at-fault accident and keeps your rates from increasing.
  • Responsible Driver Plan℠: This option includes accident forgiveness along with minor violation forgiveness, which forgives one small violation like a traffic ticket.
  • Premier Responsible Driver Plan: With this option, you get accident forgiveness, minor violation forgiveness, plus Decreasing Deductible® and total loss deductible waiver. These lower your deductible by $50 every six months you go without an accident or major violation (up to $500 off) and eliminate your deductible if your car is totaled.

Travelers Reviews

Travelers has an A rating from the BBB at this time, which shows it responds to all complaints on the site. In the J.D. Power Auto Insurance Study, Travelers ranked in second place in the Mid-Atlantic region and above average in New York. However, it performed below average in the Central, Florida, New England, North Central, and Southeast regions.

In our customer survey, Travelers scored high for claims service (4.4), customer service from agents (4.2), and its mobile app (4.2). Overall, 76% of customers would recommend Travelers to a friend.

Travelers Pros And Cons

Pros Offers accident forgiveness and new car replacement BBB rating of A Offers 14 discounts
Cons Below average ratings in J.D. Power Auto Insurance Study for some regions

How Much Does Car Insurance Cost?

According to our cost data, average rates for 35-year-old drivers are about $1,730 per year for full-coverage insurance. For minimum coverage, drivers pay about $635 per year on average. How much you pay varies greatly by your state, ZIP code, age, vehicle, driving history, and more.

Average Full Coverage Insurance Rates By Age

Below, you can see how average rates change by age.

AgeAverage Annual Rate
16$6,912
17$5,612
18$4,958
19$3,708
21$2,785
25$2,019
30$1,831
35$1,785
40$1,755
45$1,730
50$1,658
55$1,609
65$1,648
75$1,912

Average Car Insurance Rates By Company

Below, you can see how some of the most popular car insurance companies rank on average cost for full coverage.

Car Insurance ProviderAverage Annual Cost Estimate
USAA$1,054
Erie Insurance$1,238
Nationwide$1,281
Geico$1,308
Auto-Owners$1,338
State Farm$1,481
Progressive$1,611
Travelers$1,669
Allstate$2,088
Farmers$2,140
The Hartford$2,134

What Affects Car Insurance Rates?

While each company calculates the price of its policies differently, here are a few basic factors to consider:

  • Driving record: This is one of the most significant factors in the price of your car insurance. Speeding tickets, DUIs, and reckless driving all raise rates. Depending on the state, your rates can go up for the next three to seven years because of a conviction.
  • Credit score: Generally, a higher score correlates to lower rates, and individuals with lower credit scores often report high auto insurance rates.
  • Years of experience driving: Newer drivers are charged higher rates, while drivers with lots of experience get a break on rates. This is because younger drivers are less experienced and are at higher risk of getting into auto accidents.
  • Where you live: If you live in a densely populated area with many expensive claims, your insurance will cost more even if you’re a good driver with a perfect history.
  • Age: Younger drivers pay more, especially teen drivers, as they have less experience. Teens can pay two or three times what a person in their 40s would pay.
  • Mileage: Lower annual mileage can mean lower premiums from many insurance companies.
  • Previous insurance coverage: Companies like to see that you’ve had continuous coverage throughout your driving career. Gaps in coverage can increase your rates.
  • Claims history: Claims filed within the last few years can also increase your rates.
  • Gender of young drivers: Younger men are more likely to receive higher rates, but costs even out after drivers age beyond their teens.
  • Type of car: Insurance companies will charge you more if you have a luxury or sports car since those cost more to fix. Family-oriented SUVs are a safer choice.

How To Find Cheap Car Insurance

While many factors affect the price of your car insurance policy, you can do a few things to ensure you are getting the cheapest car insurance.

Compare Car Insurance Quotes

When you’re determining how to get cheap car insurance, you should get auto insurance quotes from a number of providers and compare your quotes to ensure you’re paying the best price for coverage.

Car Insurance Discounts

Your car insurance costs can be drastically reduced when you are eligible for multiple discounts, which vary by state and insurance provider. Common offerings are good student discounts, accident-free discounts, multi-policy discounts, safe driving discounts, and savings for cars with safety features.

Check Local And Regional Companies

While big car insurance companies promise you low rates, you can often still find cheaper car insurance prices when you choose a local or regional provider. Finding out how to get cheaper car insurance is often as simple as researching more providers.

Shop Around Every Six Months

Once you choose a car insurance policy, don’t lock yourself in. You have tons of insurance options even after you commit to a provider. Car insurance rates change often so that companies can stay competitive and get new customers. It can be a great idea to review your policy every time it renews, whether that is every six months or every year.

Adjust Your Coverage Limits

You can reduce your monthly premium by changing the coverage you have and getting rid of coverage you may not need. You may be tempted to add optional coverage, but sticking to liability auto insurance can greatly lower your rates.

Consider A Higher Deductible

Like adjusting your coverage amounts, changing your car insurance deductible can impact your monthly insurance premiums and help you save money. If you increase your out-of-pocket deductible from $500 to $1,000, you can see a lower monthly payment.

Usage-Based Car Insurance

Another option for how to get cheaper car insurance is to consider trying a usage-based discount. If you drive fewer miles than the carrier’s limit, you can get a deduction for your insurance rate. This can be beneficial if you drive fewer than 10,000 miles per year.

Pay Your Bills On Time

An often-overlooked step in how to get cheap car insurance is the credit score. Having good credit is a crucial factor in determining your car insurance premium in most states. To reap these benefits, pay your bills on time and reduce your debts. Pay down credit cards and car payments to keep your credit balances low.

Improve Your Driving Habits

One of the best ways to get affordable rates on car insurance is to keep a clean driving record. Safe drivers prove to auto insurance companies they are not at high risk for getting into accidents. This means they will usually be cheaper to insure.

When you are searching for how to get cheap car insurance, keep your options open. Compare three or more insurance providers to get a more accurate, and sometimes lower, premium. For more details, check out our full article on how to get cheap car insurance.

Pictures representing popular and common car insurance discounts

Best Auto Insurance: Conclusion

Although one provider might stand out to you now, we encourage you to get auto insurance quotes from several companies so you can find the best auto insurance for you.

The only way to know how much you will pay for car insurance is to get a quote. This is because pricing varies depending on your location, vehicle, and more.

Below are some frequently asked questions on the best car insurance companies:

FAQ: Best Auto Insurance Companies