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Best Car Insurance Companies 2023

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consumerreports
lifehacker
nationwide
travellers
mapfre
safeco
kemper
national-general
anchor
still-water
bridger
alinsco
commonwealth
suncoast
aspire

Key Takeaways

  • Car insurance rates depend on various factors.
  • The best car insurance company may not be the most affordable one.
  • The most affordable car insurance company of 2023 is State Farm, with an annual rate of $1437.

Everyone wants what is best for them, and there are no arguments about that. That includes auto insurance companies. When you start looking for car insurance, you always look for the best car insurance companies available in the market.

Way.com's insurance analyst team has surveyed hundreds of insurance brokers to help you narrow down this year's best car insurance companies to help you find the car insurance you need.

Best Car Insurance Companies

State Farm is the best car insurance company if you want good customer service and benefits at a good price.

Company Best for Annual Average Rates
State Farm Best overall $1022
Erie Liability only $1383
Farm Bureau Accident history $1279
Auto-Owners Family with teen $1250
Allstate New drivers $1473
Nationwide Safe drivers $2078
Travelers Best coverage $1355
Amica Best support $2135
USAA Military & veterans $1958

Best Car Insurance Companies for New Drivers

For new drivers, Allstate has the best car insurance quotes with the smallest liability. Allstate's minimum-coverage policy for new drivers under 25 costs about $100 per month. That's $89 less per month than most places.

Company Liability-only Full coverage
Allstate $100 $252
Erie $189 $378
USAA $222 $402
American Family $258 $501
Nationwide $258 $522

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Best Car Insurance Companies for Families & Teens

Auto-Owners has the best prices for parents who wish to add a teen driver to their insurance policy. Auto-Owners has the best rates for parents who wish to add a teen to their coverage.

Company Liability-only Full coverage
Erie $99 $247
Farm Bureau $111 $299
Auto-Owners $121 $313
State Farm $124 $272
Allstate $235 $599
Progressive $254 $665

Best Car Insurance Companies with Accidents

If you cause an accident, Farm Bureau will only raise your rates for full coverage by 32%. After a crash, most businesses will raise their rates by 49%. After you cause an accident, your rates go up by an average of 49%, an extra $72 per month. With Farm Bureau, the average monthly rate increase is only $43.

Company Monthly rate
State Farm $125
Farm Bureau $177
Allstate $305

Best Car Insurance Companies for Ease-of-Use

Communication is a huge part of the customer experience as a whole. In this part of the survey, people were asked to rate how easy it was to talk to their car insurance company. This involved many different kinds of exchanges, like renewing a policy, paying a bill, or just asking a question.

Company
State Farm
USAA
Progressive
Travelers

Best Car Insurance Companies for Bad Credit

Erie has the best car insurance prices for drivers with bad credit, at $232 per month for full coverage. On average, people with bad credit pay 72% more for car insurance than those with good credit. If you have bad credit, Erie will charge you 130% more for car insurance.

Company Monthly rate
Erie $232
Nationwide $236
State Farm $241
National Average $254
Progressive $259
Travelers $268
Allstate $303

Best Car Insurance Companies for Customer Service

How customer service treats you can make an effect that lasts. This part focused on customers' happiness with their insurance company's customer service. Overall, USAA got the best customer service score once again.

Company
USAA
State Farm
American Family
Travelers
Progressive

Best Car Insurance Companies for Claims Satisfaction

USAA was the company that came out on top. Second place went to State Farm, and third place went to Erie.

Company
USAA
State Farm
Erie
American Family
Progressive
Travelers

Compare the Best Car Insurance Companies by State

Most states say that USAA and State Farm are the best big businesses. In several places, Farm Bureau and Erie are the best local businesses.

Company Car Insurance Company
Alabama State Farm
Alaska State Farm
Arizona State Farm
Arkansas Farm Bureau
California AAA
Colorado State Farm
Connecticut State Farm
Delaware State Farm
District of Columbia Erie
Florida State Farm
Georgia Farm Bureau
Hawaii State Farm
Idaho Farm Bureau
Illinois State Farm
Indiana State Farm
Iowa Farm Bureau
Kansas Farm Bureau
Kentucky Farm Bureau
Louisiana Farm Bureau
Maine State Farm
Maryland Erie
Massachusetts Arbella
Michigan Auto-Owners
Minnesota State Farm
Mississippi Farm Bureau
Missouri Shelter
Montana State Farm
Nebraska Farm Bureau
Nevada State Farm
New Hampshire State Farm
New Jersey NJM
New Mexico Farm Bureau
New York Erie
North Carolina Erie
North Dakota State Farm
Ohio Erie
Oklahoma Farm Bureau
Oregon State Farm
Pennsylvania Erie
Rhode Island Geico
South Carolina Farm Bureau
South Dakota Farm Bureau
Tennessee Erie
Texas Farm Bureau
Utah State Farm
Vermont State Farm
Virginia Erie
Washington State Farm
West Virginia Erie
Wisconsin Erie
Wyoming State Farm

Best Regional and Mid-Sized Car Insurance Companies

Some auto insurance companies only do business in a small part of the United States. But this doesn't make them less important. In fact, there are a number of smaller insurance companies that offer the best coverage choices and the best customer service.

We've compiled a list of some of the best car insurance companies by region, focusing on regional and mid-sized companies offering great coverage choices.

Northeast

You will find the below companies in the following states - CT, MA, ME, NH, NJ, NY, PA, RI, and VT -

  • Erie Insurance
  • New Jersey Manufacturers
  • Amica
  • Arbella
  • Plymouth Rock.

Southeast

You will find the below companies in the following states - AL, AR, DE, FL, GA, KY, LA, MD, MS, NC, SC, TN, VA, and WV -

  • Farm Bureau Insurance - Tennessee
  • Erie Insurance
  • Alfa
  • Auto-Owners Insurance
  • North Carolina Farm Bureau.

Midwest

You will find the below companies in the following states - IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD, and WI -

  • Auto-Owners Insurance
  • Shelter Insurance
  • Indiana Farm Bureau
  • Westfield Insurance
  • Erie Insurance.

Southwest

Those states are AZ, CO, NM, OK, TX, and UT -

  • Texas Farm Bureau
  • Auto Club of Southern California
  • CSAA Insurance Group
  • Country Financial
  • Auto-Owners Insurance.

West

This group includes states like AL, CA, HI, ID, MT, NV, OR, WA, and WY -

  • Wawanesa
  • PEMCO
  • Grange Insurance
  • CSAA Insurance Group
  • Country Financial.

How Much Does Car Insurance Cost?

The answer can vary widely depending on several factors, including your location, driving history, the type of car you drive, and the coverage options you choose. On average, car insurance in the United States costs around $1557 annually, but this figure is just a starting point.

How Much Does Car Insurance Cost?

  • Assess Your Coverage Needs: Consider factors such as your vehicle's value, driving habits, and budget. Knowing what you need will help you make an informed decision.
  • Research Insurance Providers: Look for companies with a solid reputation for customer service and claims processing. Read online reviews and ask for recommendations from friends and family.
  • Compare Quotes: Request quotes from several insurance companies to understand the costs. Make sure you're comparing similar coverage options when reviewing the quotes.
  • Check Financial Stability: You can check their financial ratings from agencies like A.M. Best, Moody's, or Standard & Poor's. A stable insurer is more likely to fulfill their obligations in case of a claim.
  • Examine Coverage Options: Review the coverage options each company offers.
  • Understand Deductibles and Premiums: A higher deductible can lower your premium, but you'll pay more out of pocket in case of a claim.
  • Inquire About Discounts: Most insurance companies offer discounts for safe driving, bundling policies, being a good student, or having safety features in your vehicle.
  • Research Customer Service: Check if they have a 24/7 claims hotline and easy-to-use online services.
  • Read Policy Terms: Pay attention to coverage limits, exclusions, and any additional fees that may apply.
  • Seek Recommendations: Don't hesitate to ask for recommendations from people you trust.

How Way.com Picked the Best Auto Insurance Companies

Through rigorous scrutiny, Way.com has assessed factors that truly matter: coverage options, customer service, financial stability, and track record. These auto insurance companies have passed the litmus test with flying colors.

Whether you're a safety-conscious commuter or an adventurous road tripper, our list has something for you. It's not just about the price tag but the value you get in return.

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INSURANCE AGENT EXPERTS

Wilson Mathew Nechikat

Wilson Mathew Nechikat

Principal

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Anthony Luu

Anthony Luu

Sr. Director of Insurance Operations

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Ezra Peterson

Ezra Peterson

Sr. Director of Insurance

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Danny Herrera

Danny Herrera

Head of Commercial Insurance

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Auto Insurance Data Methodology

The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.

Quotes are typically based on a full coverage policy average unless otherwise noted within the content.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com

Frequently Asked Questions

What are the best car insurance companies?

The best car insurance companies in the United States are:

  • State Farm
  • Erie
  • Farm Bureau
  • Auto-Owners
  • Allstate
  • Nationwide
  • Travelers
  • Amica
  • USAA.

What car insurance company gives the best rates?

The car insurance company that gives the best rates in the United States varies depending on your circumstances. However, some of the companies with the lowest average rates include:

  • USAA
  • State Farm
  • Progressive
  • Erie.

How can I find the best car insurance?

Get quotes from various companies and compare their rates. This is the best way to ensure you get the best possible car insurance deal. You can obtain online quotes or by calling a company directly.

Which car insurance company has the cheapest rates?

The car insurance company with the cheapest rates varies depending on your circumstances. However, some of the companies with the lowest average rates include:

  • USAA
  • State Farm
  • Progressive
  • Erie

Learn more by city and state for car insurance



Learn more by city and state for car insurance




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