The 7 Best Car Insurance companies
Even with a pandemic calling for people to stay home more than ever, it is not wise to skimp on car insurance because poor coverage exposes you to unforeseen damage and financial risks.
To help you pick the best car insurance provider, we analyzed several companies based on their coverage, discounts, financial strength, customer service and policy customization options. The following list outlines our picks for the best auto 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 2021 and scored them based on affordability, customer support, coverage options, customer satisfaction and online resources.
Best Auto Insurance Companies: Summed Up
| Provider | Full Coverage Annual Premium* | State Minimum Annual Premium* | Reviews.com Score | AM Best Financial Strength | J.D. Power Overall Customer Satisfaction** |
| Amica | $1,449 | $460 | 5/5 | A+ | 863/1,000 |
| State Farm | $1,681 | $681 | 4.6/5 | A++ | 838/1,000 |
| USAA | $1,484 | $539 | 4.4/5 | A++ | 891/1,000 |
| Liberty Mutual | $1,778 | $900 | 4.2/5 | A | 820/1,000 |
| Progressive | $1,910 | $769 | 4.4/5 | A+ | 829/1,000 |
| Geico | $1,260 | $416 | 4.6/5 | A++ | 843/1,000 |
| Erie | $1,141 | $372 | 4/5 | A+ | 848/1,000 |
Information accurate as of 1/28/2021
* Data provided by Coverage.com
**National average based on J.D. Power’s 2020 Car Insurance Study.
Best overall
Why we chose it
Pros
- Offers dividend policies
- Variety of discounts available
- Good customer service ratings
Cons
- Not available nationwide
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)
- No depreciation for totaled vehicle replacement
Discounts available
- Policy bundling
- Loyalty
- Claims-free
- Pay in full
- Vehicle discounts (anti-theft device, passive restraint, electronic stability, forward collision warning, adaptive headlight)
- Defensive driving training
* Data provided by Coverage.com, price based on the state minimum required policy.
**J.D. Power’s 2020 U.S. Auto Insurance Study average rating. Based on a 1,000-point scale.
Further Reading on Amica:
Best for customer service
Why we chose it
Pros
- Impressive financial strength
- High claims satisfaction ratings
- Great discounts
Cons
- 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
- driving course
- Good driver
- Vehicle safety
- Anti-theft device
* Data provided by Coverage.com, price based on the state minimum required policy.
**J.D. Power’s 2020 U.S. Auto Insurance Study average rating. Based on a 1,000-point scale.
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
- New vehicle
- Annual mileage
- Family discount
- Length of membership
- Military installation
- Policy bundling
* Data provided by Coverage.com, price based on the state minimum required policy.
**J.D. Power’s 2020 U.S. Auto Insurance Study average rating. Based on a 1,000-point scale.
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
- New car replacement coverage
- Rental car reimbursement
- Roadside assistance
- Gap insurance
Discounts available
- Homeowner
- Military
- Advanced safety features
- Alternative energy discount
- Accident-free
- Violation-free
- RightTrack program
* Data provided by Coverage.com, price based on the state minimum required policy.
**J.D. Power’s 2020 U.S. Auto Insurance Study average rating. Based on a 1,000-point scale.
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
- Distant student
- Homeowner
- Online quote
* Data provided by Coverage.com, price based on the state minimum required policy.
**J.D. Power’s 2020 U.S. Auto Insurance Study average rating. Based on a 1,000-point scale.
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 student
- Emergency deployment
- Federal employee
- Employee membership
* Data provided by Coverage.com, price based on the state minimum required policy.
**J.D. Power’s 2020 U.S. Auto Insurance Study average rating. Based on a 1,000-point scale.
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
Types of Coverages Offered
- Locksmith coverage
- Erie Rate Lock program
- First accident forgiveness
- Diminishing deductible program
- Rideshare coverage
- Non-owners insurance
Discounts available
- Safe driving
- Car safety features
- Multi-vehicle
- Multi-policy
- Reduced mileage
- Young drivers
- Annual payment plan
* Data provided by Coverage.com, price based on the state minimum required policy.
**J.D. Power’s 2020 U.S. Auto Insurance Study average rating. Based on a 1,000-point scale.
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.
What To Look For When Shopping for Car Insurance
Although insurers offer many similar services, coverage options and discounts, auto insurance policies vary from one person to another. Consider the following factors when shopping for car insurance.
- Your location: Insurance is state-regulated and prices differ according to ZIP code. Places with a higher rate of road accidents, theft and severe weather generally feature higher car insurance rates.
- Type of car: Newer car models are expensive to insure, as are SUVs and luxury cars. Budget cars with safety features and low rates of claims are usually cheaper.
- Your coverage requirements: Minimum liability insurance is mandatory in most states, but you may want additional collision and comprehensive coverage. Look for an insurer that offers the coverage options you need at the most reasonable price.
- Compare quotes: To determine the best annual premium rate, compare quotes from multiple insurers based on your location, coverage and budget. Online tools make it easy to collect quotes from different companies.
How We Selected the Best Auto Insurance Companies
We determined the best auto insurance companies based on their customer rating and experience, financial stability, and coverage. To compare auto insurance companies across the board, we then calculated a Reviews.com score based on the following:
- Customer Ratings– Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this factor using J.D. Power Auto Insurance Satisfaction Index.
- Coverage– As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options available.
- Confidence– It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this factor using AM Best.
- Online resources–For the first time in 21 years, J.D. Power reported in 2020 that interaction with websites and online tools had a bigger impact on customer satisfaction than agents. In our evaluation process, we weighed the availability, functionality and ease of use of each company’s digital services.
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.
