Car Insurance

The Best Car Insurance Companies for 2023

Best Car Insurance Companies for 2023

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The Best Car Insurance Companies for 2023

To help you shop for car insurance, MoneyGeek ranked the best car insurance companies on several factors, including J.D. Power customer satisfaction ratings, financial stability ratings from AM Best and affordability. Using these metrics, MoneyGeek found that of the big insurers available to most shoppers, the best car insurance companies for 2022 are GEICO and State Farm. GEICO received the highest marks in our scoring system for 24 out of 50 states, while State Farm ranked as the top company in 10 states.

Those just looking for the most affordable option can compare this list to our rankings of the cheapest car insurance companies.

 

Top Pick: GEICO (Average MoneyGeek Score: 4.1 / 5)

GEICO

PROS

MoneyGeek’s top-ranking insurer in 24 states

Affordable full coverage policies with an average rate of $1,047 per year

Excellent marks for customer satisfaction and low complaints

Top grades for financial stability

CONS

Does not offer new car replacement coverages, so drivers with brand new vehicles may want to look elsewhere

COMPANY HIGHLIGHTS

GEICO is an excellent choice across the country for those looking to balance service quality and affordability. Customer complaint rates are relatively low, satisfaction is above average and company rates are affordable. You may be able to get even lower rates considering that GEICO offers almost all the major car insurance discounts like bundling, multi-vehicle, safe-driving and anti-theft technology discounts.

GEICO also has nearly all the common add-on coverages offered by other insurance companies, such as roadside assistance, rental car reimbursement and accident forgiveness. And unlike most insurers, it offers mechanical breakdown insurance, a car warranty coverage option that covers car repair problems after your car warranty expires.

However, GEICO might not be the best option for those with a brand new car. The company doesn’t offer new car replacement coverage, which allows those with new models to be fully reimbursed for a brand new car after an accident. Without this, you’ll only be reimbursed for the depreciated value of your vehicle.

Read MoneyGeek’s GEICO Auto Insurance Review

 

Runner-Up: State Farm (Average MoneyGeek Score: 3.9 / 5)

State Farm

PROS

Fewer complaints than GEICO, though both companies score well

Received the highest possible financial stability rating

CONS

Not as affordable as GEICO, with a full coverage policy costing an average of $1,047 per year

Like GEICO, it doesn’t offer new car replacement coverage

COMPANY HIGHLIGHTS

State Farm is another large, affordable insurer with an excellent customer service reputation. In fact, it has a lower complaint rate than GEICO and may even be a cheaper option depending on where you live. You can save even more on your monthly bill by bundling with State Farm’s home insurance.

State Farm does not offer much in the way of unique coverages: you’ll mostly find standard car insurance coverages and common add-ons such as roadside assistance and rental car expense coverage. Although it offers few unique perks, you’re more likely to get good value with State Farm than most other major insurers. State Farm does offer rideshare insurance — coverage not available from all companies — making it a great choice for those who work for Uber or Lyft.

Like GEICO, State Farm doesn’t offer new car replacement coverage, so it may not be the best option for those with brand new cars who are worried about getting value back if they get into an accident soon after their car purchase.

Read MoneyGeek’s State Farm Auto Insurance Review

The Top Car Insurance Company in Your State

Because insurance is regulated at a state level, MoneyGeek ranked the best car insurance in each state based on local pricing and regional J.D. Power scores. Excluding USAA, which is not available to most drivers, GEICO most frequently ranked as the best insurer in a state (24 times). State Farm, which ranked as the best insurer in 10 states, came in second. Erie is also an excellent option if you’re in one of the 12 states it does business.

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MONEYGEEK TOP PICK

GEICOAccording to our data, GEICO offered the most widely available quality service and affordable rates throughout the states — making them our top pick at a national level and on average for state-specific policies and needs. Though the best car insurance for you will depend on where you live, GIECO is the most likely to serve the best quality and affordable rates overall.

Click on your state to learn more about the best car insurance company where you live. It’s crucial to compare auto insurance products and quotes based on where you live because insurers may offer different rates, coverages and features across state lines.

THE BEST CAR INSURANCE COMPANIES BY STATE – EXCLUDING USAA

 

Compare the Best Car Insurance Companies by State

MoneyGeek’s car insurance comparison tool can help you measure which company is the best fit for you where you live. Sort by service quality and affordability and find stats on the average cost per year, customer service rank and standout features in that state.

Car Insurance Comparison Tool

Alabama

Best Service


USAA

$677 per year
#1 of 13
A++
Accident Forgiveness
VS.
Auto-Owners Insurance Co

#2 of 13
A++
New Car Replacement

 

The Best Car Insurance Companies by Driver Profile

Car insurance companies use specific driver characteristics to calculate their rates. Companies may offer coverages that make them better for drivers with particular traits. Credit score, driving history and age are three of the most significant factors used to determine rates.

We’ve provided our recommendations for the best car insurance companies for young drivers, drivers with poor credit and drivers with an accident on their records, all of whom are typically charged higher rates than the average driver.

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THE BEST CAR INSURANCE COMPANIES BY DRIVER PROFILE

 

Best Auto Insurance Company for Customer Service: Auto-Owners

If price is not as important for you as ensuring you’re going to get the best possible service when you need to file a claim, MoneyGeek found that Auto-Owners Insurance has the best combination of high satisfaction and low complaints. Using just these factors, Auto-Owners is the best insurer in 10 out of 50 states, more than any other company.

 

Top Pick: Auto-Owners Insurance (Average MoneyGeek Score: 4.5 / 5)

Auto-Owners Insurance Co

PROS

Exceptional customer service

Affordable rates in the states it does business in

Offers new car replacement for those who just bought a vehicle

CONS

Only available in 26 states

Offers few unique coverages

COMPANY HIGHLIGHTS

Evaluations from J.D. Power indicate Auto-Owners Insurance has high customer satisfaction in the states where it’s available. It also has a low customer complaint rate, as measured by the National Association of Insurance Commissioners. Additionally, Auto-Owners offers new car replacement coverage as an add-on. If you buy this, you won’t have to worry that your new car loses value as soon as you drive it off the lot.

Auto-Owners also ranks well for affordability and offers all the major discounts offered by most other insurers. Overall, it’s an excellent option — the only downside is that it’s available in just 26 states.

Read MoneyGeek’s Auto-Owners Insurance Co Auto Insurance Review

 

Best Auto Insurance Company on a Budget: GEICO

If you’re on a budget and want to purchase the minimum car insurance required in your state with good customer service, MoneyGeek recommends GEICO.

 

Top Pick: GEICO (Average MoneyGeek Score: 4.2 / 5)

GEICO

PROS

Cheap minimum coverage policies

Combines affordability with stellar customer service

A wide variety of discounts can help you save even more

CONS

GEICO doesn’t offer common payment discounts, such as savings for paying your policy in full or receiving bills electronically

COMPANY HIGHLIGHTS

If you weigh the cost of a minimum coverage policy while still accounting for customer service, GEICO won 29 of 50 states, according to MoneyGeek’s scoring system. A minimum coverage policy with GEICO costs an average of $513 per year while still providing its policyholders with a solid service experience.

Those looking to save even more with GEICO can take advantage of its discounts, especially if you want to save by bundling with home insurance or adding multiple cars to your policy. Drivers with anti-theft and passive restraint safety systems, such as airbags, will save even more. Finally, military members or those part of specific professional organizations or government entities may be available for even more discounts.

Read MoneyGeek’s GEICO Auto Insurance Review

 

Best Auto Insurance Company for Young Drivers: Allstate

If you’re adding a young driver to your policy, there are several high-quality policy options available. Both GEICO and Allstate rank high in MoneyGeek’s scoring system for over 15 states for a policy with a young driver, but we picked Allstate as our winner given that it offers a distant student discount and GEICO doesn’t.

 

Top Pick: Allstate (Average MoneyGeek Score: 3.7 / 5)

Allstate

PROS

Makes it reasonably affordable to add a young driver to a policy

Low rate of complaints by current customers

Offers accident forgiveness and new car replacement coverages

CONS

You won’t save much on your monthly bill

COMPANY HIGHLIGHTS

Adding teens or students to a car insurance policy can be extremely expensive. MoneyGeek found that Allstate strikes a blend of affordability and quality, with average premiums and a low rate of complaints.

Allstate is an excellent option if you’re letting your teen drive your new car. If you add new car replacement coverage, you can replace your vehicle with a completely new model after an accident, as long as the model is two years old or less. And, if you add accident forgiveness, you won’t have to worry about your insurance rates increasing after your teen’s first accident.

Read MoneyGeek’s Allstate Auto Insurance Review

 

Best Auto Insurance Company for Military: USAA

There is a clear winner for the best car insurance for veterans, military personnel, and their families: USAA. MoneyGeek found that USAA has a low rate of complaints, high customer satisfaction, and some of the most affordable rates in the industry.

 

Top Pick: USAA (Average MoneyGeek Score: 4.9 / 5)

USAA

PROS

Unparallelled service reputation

Cheap rates

CONS

Only available to families with a military background

COMPANY HIGHLIGHTS

No company has a higher customer satisfaction rating than USAA, according to MoneyGeek’s analysis of regional J.D. Power ratings. Combine that with great rates, and USAA is likely to give you the best value for your money.

USAA does not offer many unique options coverages, but it does have the most widely applicable ones, such as roadside assistance, rental car reimbursement and accident forgiveness. It is also a good option if you work for Uber or Lyft as it offers rideshare insurance. USAA also caters to young service members on active duty, with a hefty vehicle storage discount and savings if you were previously insured on your parent’s USAA policy.

Read MoneyGeek’s USAA Auto Insurance Review

 

Best Auto Insurance Company for New Vehicles: Allstate

MoneyGeek recommends that those with new or expensive vehicles only opt for insurers that offer new car replacement or better car replacement coverages. Of the insurers meeting this standard, Allstate ranks top.

 

Top Pick: Allstate (Average MoneyGeek Score: 3.6 / 5)

Allstate

PROS

Offers new car replacement coverage

Has a low rate of customer complaints

CONS

Does not rank among the cheapest insurers

COMPANY HIGHLIGHTS

Allstate provides a balance of affordability and good customer service while giving its drivers the option to purchase new car replacement coverage.

A new car loses value very quickly after you buy it. If you get into an accident early in your car’s lifespan, your claim will reflect that depreciated value. However, if you purchase new car replacement coverage with an insurer like Allstate, the return on your claim will match the value of a brand new car, as long as the vehicle is less than two years old.

If you want to purchase coverage with Allstate but are concerned it’s not cheap enough, ask an Allstate agent about all available discounts. You can save with many of the most common discounts for being a safe driver, bundling home and auto and anti-theft and having airbags and other safety features.

Read MoneyGeek’s Allstate Auto Insurance Review

 

Best Auto Insurance Company for High-Risk Drivers: State Farm

High-risk drivers, including those who need SR-22 insurance, pay more for car insurance. Some insurance companies are better suited for drivers with violations in their history. If you’re a driver with tickets or accidents on your record, MoneyGeek found that State Farm is usually the best option.

 

Top Pick: State Farm (Average MoneyGeek Score: 4.2/ 5)

State Farm

PROS

Affordable for those with violations on their records

Offers both roadside assistance and rental car reimbursement

CONS

Does not offer accident forgiveness

COMPANY HIGHLIGHTS

In 22 states — more than any other company — State Farm is the best balance of affordability and service for high-risk drivers. A full coverage policy with State Farm after a speeding ticket costs an average of $1,503, cheap compared to most insurance companies. And it doesn’t sacrifice its service reputation to achieve those low rates.

Like most insurers, State Farm offers roadside assistance and rental car expenses coverage. In the event that you do get into trouble on the road, these coverages can help you get back home and providing substitute transportation while your car is in the shop.

One downside is that State Farm does not provide accident forgiveness, which is a good coverage to purchase if you think you’re likely to get into an accident and is offered by most other major insurers.

Read MoneyGeek’s State Farm Auto Insurance Review

 

Best Auto Insurance Company for Low Mileage Drivers: Metromile

Low mileage discounts are relatively rare and tend to be quite minor. If you barely drive, the best way to save may be with a pay-per-mile insurance company such as Metromile. MoneyGeek found that pay-per-mile insurance can be worth it if you only tend to drive a few miles per day.

 

MoneyGeek’s Top Pick: Metromile

Metromile Auto

PROS

Among the most affordable insurers, if you drive very little

Offers roadside assistance and rental car reimbursement like most traditional insurers

CONS

Expensive for those who commute or regularly drive for pleasure

Only available in eight states

COMPANY HIGHLIGHTS

Because premiums are charged based on how many miles you drive, Metromile is an excellent, cost-saving option for those who don’t drive often. Currently, it’s the only insurance company wholly specialized in pay-per-mile insurance.

However, the company does have a high rate of customer complaints. As traditional insurance companies enter the market for pay-per-mile insurance, it may make sense to try some of their programs, such as Nationwide’s SmartMiles and Allstate’s Milewise, which are expanding their availability.

Read MoneyGeek’s Metromile Auto Auto Insurance Review

 

Best Auto Insurance Company for Unique Coverages: Liberty Mutual

At the end of the day, many car insurance companies offer coverages required by state law and little more. But some car insurance companies go the extra mile to offer extra coverages that tailor to unique drivers and situations. MoneyGeek found that Liberty Mutual has eight coverages that are rarely or only occasionally offered by other companies.

 

MoneyGeek’s Top Pick: Liberty Mutual

Liberty Mutual

PROS

Offers OEM coverage, ensuring your vehicle repair will meet quality standards

Gives you the option to buy better car replacement coverage, meaning you can get a better car if something happens to your current car

CONS

Run-of-the-mill service reputation and affordability

COMPANY HIGHLIGHTS

Liberty Mutual offers eight insurance coverages that aren’t standard in the industry: new car replacement, better car replacement, accident forgiveness, gap insurance, diminishing deductible, original equipment manufacturer coverage (OEM), auto death indemnity coverage and disability coverage.

MoneyGeek highlights OEM as particularly useful. With this coverage, damaged parts are replaced like-for-like with parts from the original manufacturer, meaning you get the highest quality repairs.

Beyond unique coverages, Liberty Mutual offers all the common coverages other insurers do, such as roadside assistance and rental car reimbursement. If you get a policy with Liberty Mutual, you’ll know you can get coverage for most events that can happen on the road. The downside is that Liberty doesn’t have the cheapest rates or the highest customer service scores.

Read MoneyGeek’s Liberty Mutual Auto Insurance Review

Insurance Rates

COMPARE AUTO INSURANCE RATES

Ensure you are getting the best rate for your car insurance. Compare quotes from the top insurance companies.

 

Steps to Find the Best Car Insurance Company

Finding the best car insurance for you will depend on your priorities. If you want to save money, you might opt for the insurer that gives you the cheapest quote. If you want the security of knowing your insurer will pay your claims timely and efficiently, you might choose the company with the best customer service reputation in your region.

We believe all drivers can get the best of all worlds: an affordable company with a strong service experience and the coverages you need. You can find the top company for you by taking a few key steps.

1

Research Customer Service Reputations

Browse our reviews to find claims and user satisfaction ratings to get a sense for how policyholders feel about a given company. You can also check your state’s department of insurance website to see how many complaints have been lodged about a company. MoneyGeek highly recommends starting with our recommendations for the top companies in your state.

2

Compare Real Quotes from Insurers

Once you’ve narrowed down a list of companies that have quality service, you should go get a quote from that company. Our rankings for the cheapest companies are a great guide as to which companies are most affordable on average, but the cheapest for you may be different because of your unique driver characteristics. Be sure to incorporate all possible discounts into your quote.

3

Make Sure the Company Has Coverages You Want

Almost all insurance companies will offer you the core car insurance coverages, such as liability insurance and comprehensive and collision insurance. But if you want a car insurance company that offers additional benefits, like roadside assistance or accident forgiveness, you should be certain that it’s part of your policy package.

4

Double Check Financial Stability Ratings

If you’re risk-averse, you might want to check an insurer’s financial strength rating. In the unlikely event an insurer goes bankrupt, it may be unable to pay your claim. The industry standard for financial strength ratings is A.M. Best. Companies with an A+ or A++ from A.M. Best are the most secure.

The Best Company for You Has a Strong Customer Service Reputation

You can take many steps to determine which insurance company has the best customer service for you.

  • Examine our claims and customer satisfaction ratings.
  • Read our in-depth reviews of insurance companies.
  • Read market research from authoritative sources such as J.D. Power.
  • Look up customer complaint ratings on the website of your state department of insurance or of the National Association of Insurance Commissioners.

MoneyGeek’s claims and customer satisfaction ratings incorporate J.D. Power data to score insurance companies against each other, so you can easily see how they score out of a maximum of five points for each category. And our MoneyGeek scores incorporate all other factors you should consider while shopping so that you get the full picture of how a company stacks up.

If you want to do your own research, J.D. Power releases an overall auto insurance satisfaction study and a claims satisfaction study each year. And if you want to dig deep into the data, your state department of insurance website has public data on how much consumers complain about insurance companies in your state. Insurers with lower complaint rates are more likely to have a strong service experience.

Compare Quotes From the Best Companies to Get Value For Your Money

Once you’ve narrowed down the companies with strong customer service reputations, you should compare quotes among them. Insurance companies use a variety of factors to calculate your rate. As a result, you could find that two companies have very similar customer service reputations but quote you at vastly different rates.

You should also make sure that your quotes incorporate all available discounts, as these can have a sizable effect on what you pay. For instance, one insurance company may offer more discounts for car safety features, so drivers with a lot of safety technology may get a comparably cheaper quote. Discounts usually come in four forms: driving record discounts, driver profile discounts, policy discounts and car safety discounts.

  • Driving record: Discounts for having a clean driving record, driving infrequently or taking driver safety courses.
  • Driver profile: Discounts for achievements outside of driving, such as students who get good grades, or for membership of professional or government organizations.
  • Policy: Discounts for bundling with other insurance policies or for how you pay for your policy, such as paying for the full six months ahead of time.
  • Vehicle: Discounts for safety devices on your car, such as anti-theft technology or anti-lock brakes.

When you are confident you’re only getting quotes from quality insurers, you can save money by buying a policy from the company that offers you the best cheap quotes.

The Best Insurance Company for You Has All the Coverages You Want

Almost all insurance companies will offer the following core coverages:

  • Bodily injury liability insurance
  • Property damage liability insurance
  • Collision and comprehensive insurance (also called full coverage)
  • Personal injury protection or medical payments coverage
  • Uninsured or underinsured motorist insurance for both bodily injury and property damage

If you’re looking for additional coverages — such as accident forgiveness, mechanical breakdown insurance or rideshare insurance — you should make sure a company offers it in your state before comparing quotes. Most major companies offer similar types of coverage, but there are some unique differences among them.

The Best Insurance Companies are Financially Stable

Finally, ensure that the company responsible for your policy is financially stable. Our MoneyGeek score incorporates financial strength ratings from AM Best, which measures companies’ ability to meet insurance obligations.

Most major insurance companies have excellent or superior ratings from AM Best. But if you’re shopping with a more local or regional insurer, check their financial strength rating before purchasing a policy. If you’re risk-averse and want to avoid the small chance that problems with your insurance company could affect your claims, it may be best to stick with a company in top-tier financial condition.

What If You Can’t Get Car Insurance?

Although most states require vehicle owners to carry insurance, not everyone can get it, at least not through the regular channels. Because of their past driving records, some people may be unable to obtain insurance from a private company. Others may simply not be able to afford it. In these cases, there may be state programs available to help.

State-Sponsored Auto Insurance Programs for High-Risk Drivers

While some companies offer individual car insurance policies to high-risk drivers, many prefer not to. Instead, states require all insurance companies to participate in a program that pools these kinds of drivers. These pools are created to share the possible losses of insuring high-risk drivers; companies participate in proportion to the amount of business they do in the state. If your driving record is spotty, this program may help you obtain coverage. Your premiums are likely to be very high. Check with your state insurance department to learn more.

Low-Cost Insurance Programs

Some states, including California, Hawaii and New Jersey, provide affordable public insurance to people who can’t afford to buy a private company’s car insurance policy. These programs are designed to discourage uninsured motorists from taking to the road, which is a distressingly common occurrence. To qualify, vehicle owners must meet income-eligibility requirements. For further information, check with your state insurance department.

 

Frequently Asked Questions About Car Insurance

It’s not easy to find a car insurance company that’s a perfect match for your situation. However, with a few minutes of research you can ensure you’re on the right track. Here are some of the most common questions posed by those looking for quality car insurance.

Who has the best auto insurance?

GEICO offers the best car insurance product in the most states according to MoneyGeek’s analysis of affordability, customer satisfaction and financial stability. But the best car insurance company for you may depend on your driver profile and where you live.

Who has the best auto insurance in your state?

Not every insurance company writes policies in all 50 states. And some insurers may price policies differently or provide different coverages, depending on where you live. When you look for the best car insurance in your state by state, get your own quotes and look into the customer service reputations of local insurers using our MoneyGeek scores or with your state department of insurance.

Can you find good, cheap car insurance?

Yes. Many insurance companies with strong ratings for claims service and overall customer satisfaction also offer some of the most affordable rates on average.

How can you find the best car insurance for you?

There are several steps you can take to find the best car insurance for you. Narrow down your list of companies to those that have a strong customer service reputation. From there, if you want to get the best value for your money, you should compare rates among these insurance companies to see whether some quote you at a much more affordable rate than others. Ultimately, you will have to decide what part of the insurance experience you value the most and pick a company based on that criteria.

 

Expert Advice on Finding the Best Car Insurance Company for Your Needs

 

Many factors can affect your auto insurance rates. MoneyGeek gathered advice from professionals to help you make an informed decision when purchasing auto insurance.

 

  1. How does car insurance differ from other types of coverage and why is it so important for drivers?
  2. How should drivers balance risk management and affordability when it comes to car insurance?
  3. What can consumers do to better educate themselves on car insurance policies, coverage and pricing?
  4. Auto insurance premiums are set based on a variety of information such as driving record, location and credit history. What challenges do consumers face in this type of pricing structure? How can drivers meet or manage these challenges?

 

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