The 7 Best Car Insurance companies
- Amica: Best overall
- State Farm: Best for customer service
- USAA: Best for military members
- Liberty Mutual: Best for car replacement coverage
- Progressive: Best for discounts
- Geico: Best for affordable policies
- Erie: Best for add-on coverage
Not all car insurance companies are created equal, but finding the right provider for your needs is essential. To simplify your car insurance buying experience, we reviewed the best car insurance companies for 2020 and scored them based on affordability, customer support, coverage options, customer satisfaction and online resources.
Best Auto Insurance Companies: Summed Up
| Avg. Annual Rate | Reviews.com Score | A.M. Best Rate | J.D. Power | |
| Amica | $1,499 | 5/5 | A+ | 898 |
| State Farm | $1,681 | 4.4/5 | A++ | 878 |
| USAA | $1,484 | 4.4/5 | A++ | 900 |
| Liberty Mutual | N/A | 4.4/5 | A | 857 |
| Progressive | $1,910 | 4.2/5 | A+ | 856 |
| Geico | $1,260 | 4.2/5 | A++ | 879 |
| Erie | $1,141 | 3.6/5 | A+ | 879 |
Data powered by Coverage.com as of 9/30/2020
Best overall
Why we chose it
Pros
- Offers dividend policies
- Variety of discounts available
- Good customer service ratings
Cons
- Not available nationwide
- Rates can be expensive
Types of Coverages Offered
- Personal injury protection
- Glass coverage
- Roadside assistance
- Rental car reimbursement
- Platinum Choice Auto® (accident forgiveness, identity theft monitoring, and prestige rental coverage)
- Free lock replacement
- Free repair for a deployed airbag
- No depreciation for totaled vehicle replacement
- Lost wage reimbursement for court appearances
- $1,000 for bail bonds
Discounts available
- Policy bundling
- Loyalty
- Claims-free
- Multi-vehicle
- Homeowner
- Family
- AutoPay
- Pay in full
- Paperless billing
- Vehicle discounts (anti-theft device, passive restraint, electronic stability, forward collision warning, adaptive headlight)
- Defensive driving training
- Good student
- Driving training
- Student away at school
Further Reading on Amica:
Best for customer service
Why we chose it
Pros
- Impressive financial strength
- High claims satisfaction ratings
- Great discounts
Cons
- Expensive policies
- Fewer add-on coverages than competitors
Types of Coverages Offered
- Rental car and travel expenses coverage
- Roadside assistance coverage
- Rideshare driver coverage
Discounts available
- Policy bundling
- Accident-free
- Defensive driving course
- Student away at school
- Good driver
- Driving training
- Good student
- Vehicle safety
- Passive restraint
- Anti-theft device
- Multi-vehicle
Further Reading on State Farm
Best for military members
Why we chose it
Pros
- Personalized customer service
- Affordable policies
- Many discounts
Cons
- Only available to active and retired military members
- Very few branch locations
Types of Coverages Offered
- Personal injury protection
- Extended benefits coverage
- Roadside assistance
- Rental car reimbursement
- Accident forgiveness
Discounts available
- Safe driver
- Defensive driving course
- Driver training course
- Good student
- New vehicle
- Multi-vehicle
- Annual mileage
- Vehicle storage
- Family discount
- Length of membership
- Military installation
- Policy bundling
Further Reading on USAA:
Best for car replacement coverage
Why we chose it
Pros
- Good discounts for a variety of drivers
- Great customer experience
- Comprehensive coverage options
Cons
- Higher-than-average premiums
- Poorly rated claims handling
Types of Coverages Offered
- Personal injury protection
- Deductible fund
- Lifetime repair guarantee
- New car replacement coverage
- Better car replacement coverage
- Rental car reimbursement
- Roadside assistance
- Gap insurance
- Original parts replacement coverage
- Mexico coverage
- Teachers coverage
Discounts available
- Homeowner
- Military
- Early shopper
- Good student
- Student away at school
- Advanced safety features
- Alternative energy discount
- Anti-theft device
- Accident-free
- Violation-free
- RightTrack program
- Multi-policy
- Multi-vehicle
- AutoPay
- Pay in full
- Online purchase
- Paperless billing
Further Reading on Liberty Mutual
- Liberty Mutual auto insurance review
- Liberty Mutual homeowners insurance review
- Liberty Mutual renters insurance review
Best for discounts
Why we chose it
Pros
- Great discounts
- Fast and efficient claims handling
- Variety of add-on policies for customization
Cons
- Average customer service ratings
- Some discounts not offered in certain states
Types of Coverages Offered
- Roadside assistance
- Gap insurance
- Rental car reimbursement
- Custom parts and equipment coverage
- Rideshare coverage
- Deductible savings bank
Discounts available
- Multi-policy
- Multi-vehicle
- Continuous insurance
- Snapshot® program
- Teen driver
- Good student
- Distant student
- Homeowner
- Online quote
- Sign online
- Paperless billing
- Pay in full
- AutoPay
Further Reading on Progressive
- Progressive auto insurance review
- Progressive homeowners insurance review
- Progressive renters insurance review
Best for affordable policies
Why we chose it
Pros
- Very affordable policies
- Good discounts
- Strong financial ratings
Cons
- Not the best customer service
Types of Coverages Offered
- Personal injury protection
- Roadside assistance
- Rental car reimbursement
- Mechanical breakdown coverage
Discounts available
- Vehicle safety features (airbags, anti-lock brakes, anti-theft system and daytime lights)
- New vehicle
- Good driver
- Seat belt use
- Defensive driving course
- Driver education course
- Good student
- Emergency deployment
- Federal employee
- Employee membership
- Military
- Multi-vehicle
- Multi-policy
Further Reading on Geico
Best for add-on coverage
Why we chose it
Pros
- Good customer service
- Great add-on coverages for customizable policies
- Discounts to help you save
Cons
- Limited availability
- More expensive premiums
Types of Coverages Offered
- Pet coverage
- Personal item coverage
- Glass repair coverage
- Roadside assistance
- Rental car reimbursement
- Locksmith coverage
- Erie Rate Lock program
- First accident forgiveness
- Diminishing deductible program
- New car protection
- Better car protection
- Rideshare coverage
- Non-owners insurance
Discounts available
- Safe driving
- Car safety features
- Multi-vehicle
- Multi-policy
- Reduced mileage
- Young drivers
- Annual payment plan
Further Reading on Erie Insurance
Factors that affect your insurance cost
State’s minimum requirements
Every state has a minimum amount of car insurance coverage that drivers are required to carry. The more coverage that’s required, the more expensive your insurance premium is. But even if you’re paying a higher rate, you can still take advantage of discounts that can help lower the cost.
Financial situation
When you file a car insurance claim, you’re required to pay a deductible before the insurance company reimburses you for the loss. Your deductible is an out-of-pocket cost, and the lower your deductible is, the higher your insurance premium is.
Vehicle
The vehicle you drive has a big impact on your car insurance rate. Certain makes and models, like SUVs and luxury cars, are much more expensive to insure than sedans. The age and mileage of your car will also affect your rate. Typically, newer cars with low mileage cost more to insure than older cars.
Driving record
Before you can buy car insurance, the company reviews your driving record to determine your past claims history and recent violations. If you have filed insurance claims in the past or have accidents or speeding tickets on your record, you can expect to pay more for your car insurance.
How much coverage you need
The more car insurance coverage you need, the more money you’ll pay. If you choose to raise your policy limits above the standard amount, your rate will increase. You’ll also pay a higher car insurance premium if you add endorsements to your policy.
Credit Score
Your credit score is one of the biggest factors that goes into your car insurance rate. A driver with a poor credit score will pay significantly more for their insurance than a driver with a good credit score.
Location
Car insurance prices vary by region. According to the Insurance Information Institute, Louisiana, Michigan and Florida have the highest rates, whereas North Dakota, Maine and Iowa have the lowest rates. The risk of severe weather, the number of uninsured drivers, and the type of state contribute to the cost of insurance in a given state.
Marital Status
Surprisingly, your marital status has an impact on your car insurance premium. Married people tend to pay less for insurance than single people. Additionally, married couples often qualify for a discount if they insure two vehicles on the same policy.
Gender
Gender is another thing that impacts your car insurance rate. Men typically pay less for their insurance than women. However, there are currently seven states that do not consider gender when calculating car insurance rates. Those states include California, Hawaii, Massachusetts, Montana, North Carolina, Pennsylvania, and Michigan.
Claims History
For an insurance company, it’s much riskier to insure a driver with a history of claims. That’s why drivers who have filed insurance claims in the past pay more for their insurance. Not only do claims-free drivers pay less, but they usually qualify for a discount because of it.
Discounts
Most insurance companies offer discounts, and if you qualify for one, it can lower your rate. Some examples of common discounts are policy bundling, having safety features in your car, taking a defensive driving course, being a good student, being claims-free, and paying your annual premium in full.
Methodology
Reviews.com scores products, services and companies using five quantifiable criteria to help readers choose the best one for them. For the best car insurance companies, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company and averaged the scores to produce our very own Reviews.com rating. These ratings were produced with you, our readers, in mind, and are meant to be a helpful tool to simplify the process of choosing which car insurance company is best for you. Since auto insurance rates vary widely among different profiles, we encourage you to continue researching options that fit your specific needs.
FAQs
About the Authors
Elizabeth Rivelli is an insurance writer for Reviews.com. Over the last year, she has covered insurance providers, best policies, industry trends and more. Elizabeth has been featured in The Simple Dollar, Bankrate and Coverage.com, among others. She holds a bachelor's degree in Communication Studies from Northeastern University in Boston, MA. The Best Term Life Insurance Companies is Elizabeth’s favorite review on Reviews.com.
