Car insurance is a necessary expense for most Americans, since driving without it is illegal and public transportation options are limited outside of major U.S. cities. Insuring a vehicle can be costly, especially if you’re a new driver or insuring a luxury car, but it can save you tens of thousands of dollars in case of damage or theft.
The ideal car insurance company combines good coverage with reasonable rates and excellent customer service. Although cost matters when shopping for car insurance, it shouldn’t be the only factor. You’ll want to choose a company with a high customer satisfaction rating. That way, the process is smooth and hassle-free when you need to file a claim. At the same time, a good car insurance company will offer plenty of discounts to incentivize good customers.
So what’s the best car insurance company? That depends on a variety of factors. Below, CNBC Select breaks down the top auto insurance companies into six main categories. (See our methodology for more information on how we chose the best car insurance companies.)
Best car insurance companies
Best for affordability
Geico Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Terms apply.
Read our Geico Auto Insurance review.
Geico is the best car insurance company for affordable coverage, offering the lowest average premiums for both minimum and comprehensive coverage. It offers 16 discounts, giving reduced premiums for things like good driving, taking a defensive driving course and insuring multiple vehicles. Geico also has a wide range of other insurance products, including homeowners insurance and renters insurance, that make it easy to bundle and save on coverage.
Average annual premium for full coverage: $1,353
Best for customer satisfaction
State Farm Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
State farm is one of the largest auto insurers based on market share and has an excellent reputation for customer satisfaction. It offers 13 discounts, including ones for safe driving and young drivers.
Terms apply.
Read our State Farm Auto Insurance review.
State Farm is the largest auto insurance company in the U.S. based on market share, according to the National Association of Insurance Commissioners (NAIC). It enjoys the highest average J.D. Power score of the large insurers, making it best-in-class for customer satisfaction.
Average annual premium for full coverage: $1,480
Best for wide coverage
Nationwide Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you.
Terms apply.
Nationwide offers one of the widest car insurance networks, with coverage available in 46 states plus the District of Columbia (all states except Alaska, Hawaii, Louisiana and Massachusetts). This is an important distinction because multiple companies competing for your business equals lower premiums. It also stands out for its usage-based insurance program, SmartMiles.
Average annual premium for full coverage: $1,422
Best for minimum coverage
Auto-Owners Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Auto-Owners offers affordable premiums with high customer satisfaction ratings. There are 12 different types of discounts available, as well as various other types of insurance besides auto.
Terms apply.
Auto-Owners is an affordable option for those looking for minimum coverage, with the average annual premium for minimum coverage just $325. CNBC Select also selected Auto-Owners insurance as one of the top picks for young adult drivers and seniors. However, coverage is only available in 26 states.
Average annual premium for full coverage: $1,361
Best for discounts
Amica Auto Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Amica offers a variety of auto insurance policies to fit your coverage needs. The company also offers a total of 18 discounts, including discounts for bundling and for students.
App available
Yes
Amica is a top choice for its wide availability of discounts, with a total of 18 ways to save. There are several discounts for young drivers, including a driver training discount and a good student discount. Other discounts focus more on the car you drive, including a discount for anti-theft systems, electronic stability control, and features like forward-collision warning. Additionally, you can save by bundling your home and auto insurance, insuring multiple vehicles, and paying your premium in full.
Average annual premium for full coverage: $1,467
Best for high-risk drivers
Progressive Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Progressive offers a number of lines of insurance to allow for bundling, and convenient tools to help you keep your coverage in your budget.
Terms apply.
Read our Progressive Auto Insurance review.
Progressive is a top insurer for high-risk drivers, particularly for those with a DUI or DWI on their record. While high-risk drivers often pay higher insurance premiums than the average driver, Progressive generally offers lower rates for these types of drivers than other insurers. Its average full-coverage premium after a DUI or DWI is $2,049.
Average annual premium for full coverage: $1,642
Best for military members and veterans
USAA Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
USAA’s auto insurance is available in all 50 states, Washington D.C. and some international locations. In addition to low rates and coverage options for unique circumstances, such as for active-duty members, customers have access to an intuitive mobile app.
Terms apply.
USAA stands out for enjoying high rankings on multiple factors. For starters, it offers the lowest average premiums. Equally important is customer satisfaction as no one wants to deal with a difficult customer service experience when filing a claim. Luckily, USAA enjoys the highest J.D. Power customer satisfaction scores, so you know you’re “in good hands.” Its consistently affordable rates and high customer service ratings also make it a top choice for cheap homeowners insurance to bundle and save.
The only catch? It’s not available to everyone — only military members, veterans and their immediate family members are eligible for a USAA car insurance policy.
Average annual premium for full coverage: $1,361
More on our top car insurance companies
Geico
Geico has been in business since 1936 and has since grown to become a major player in the auto insurance space. With affordable premiums and relatively high customer service ratings, it’s easy to see why.
NAIC complaint index (1 is average)
1.35, above average
J.D. Power rating
857 out of 1,000
A.M. Best rating
A++
State Farm
State Farm caters to all types of drivers, with coverage available in all states except Massachusetts and Rhode Island. State Farm offers a wide range of other insurance products besides auto insurance, so be sure to bundle whatever you can into your quote. You may be able to save money on the total cost of your policy.
NAIC complaint index (1 is average)
1.85, above average
J.D. Power rating
877 out of 1,000
A.M. Best rating
A++
Nationwide
Nationwide combines affordable prices with strong customer service ratings. It offers lots of policy customization options, including add-ons like roadside assistance, accident forgiveness and a vanishing deductible. It also offers many other types of insurance products you can bundle your policy with.
NAIC complaint index (1 is average)
1.47, above average
J.D. Power rating
861 out of 1,000
A.M. Best rating
A+
Auto-Owners
Auto-Owners boasts high marks from J.D. Power and a below-average complaint index from the National Association of Insurance Commissioners (NAIC). Paired with relatively low premiums, and Auto-Owners car insurance stands out from the competition. The company offers 12 discounts, including three discounts specifically for students. It also offers specialty coverages for classic cars and modified or converted accessible cars.
NAIC complaint index (1 is average)
0.78, below average
J.D. Power rating
862 out of 1,000
A.M. Best rating
A++
Amica
In addition to a variety of discounts, Amica offers competitive prices on its auto insurance policies. It also consistently ranks highly in J.D. Power rankings for customer satisfaction and claims satisfaction. Coverage is available in all states except for Hawaii.
NAIC complaint index (1 is average)
0.98, about average
J.D. Power rating
909 out of 1,000
A.M. Best rating
A+
Progressive
Progressive has become one of the nation’s largest auto insurance providers. It offers coverage to all types of drivers across all 50 states and offers some useful features like an accident forgiveness program that can help drivers avoid a rate increase after an accident. However, Progressive falls a bit short when it comes to customer satisfaction ratings.
NAIC complaint index (1 is average)
1.98, above average
J.D. Power rating
853 out of 1,000
A.M. Best rating
A+
Learn more: Progressive: A top auto insurance provider for high-risk drivers
USAA
If you’re eligible for USAA, this company’s reasonable prices and consistently high customer service ratings are certainly a draw. It’s been serving U.S. military members and their families for about 100 years and offers a variety of discounts. Keep in mind that USAA membership can also be passed between generations.
NAIC complaint index (1 is average)
2.01, above average
J.D. Power rating
875 out of 1,000
A.M. Best rating
A++
How car insurance works
Car insurance covers damage, theft and bodily injury in case of an accident. You pay a monthly (or bi-annual) premium based on the coverage and policy type needed. In case of an accident, you can file a claim and your insurance company will pay out damages based on various criteria. Filing claims can sometimes lead to higher premiums, so you’ll want to do so cautiously. Car insurance companies offer lower premiums to drivers with clean records, as they’re less likely to file damage claims.
The different types of car insurance coverage
Car insurance has five main types of car insurance coverage you can incorporate into your policy. Each one offers varying degrees of protection in case of a loss. At a minimum, you will need liability coverage, which protects against damage and bodily injury. Depending on the level of protection you’re looking for, you might want to add additional coverage to your policy. Here’s a look at some of those options:
- Liability coverage: Basic coverage that is mandatory in most states. There are two types of liability coverage, protecting a policyholder against personal injuries (bodily injury liability) and property damage (property damage liability).
- Collision coverage: Covers repairs stemming from a collision with an object rather than another vehicle.
- Comprehensive coverage: Protects your vehicle in case of damage caused by non-vehicular collision. Covered events include theft, weather-related damage and vandalism.
- Personal injury protection: Pays your medical expenses and lost income from an accident.
- Uninsured motorist coverage: Covers your vehicle against hit-and-run accidents.
Average cost of car insurance
Car insurance rates may vary considerably from one state to the next due to varying regulations and requirements. For instance, car insurance rates are typically higher in no-fault states such as Michigan and New York than other parts of the country. Below are the average car insurance costs by state.
| State | Average annual cost for full coverage | Average annual cost for minimum coverage |
|---|---|---|
| Alabama | $1,843 | $441 |
| Alaska | $1,946 | $421 |
| Arizona | $1,810 | $587 |
| Arkansas | $1,907 | $443 |
| California | $2,291 | $636 |
| Colorado | $2,121 | $500 |
| Connecticut | $1,533 | $620 |
| Delaware | $2,103 | $801 |
| Florida | $3,183 | $1,128 |
| Georgia | $2,085 | $639 |
| Hawaii | $1,275 | $344 |
| Idaho | $1,133 | $267 |
| Illinois | $1,806 | $552 |
| Indiana | $1,295 | $327 |
| Iowa | $1,315 | $223 |
| Kansas | $1,878 | $416 |
| Kentucky | $2,124 | $678 |
| Louisiana | $2,909 | $815 |
| Maine | $941 | $225 |
| Maryland | $1,971 | $815 |
| Massachusetts | $1,262 | $429 |
| Michigan | $2,691 | $1,104 |
| Minnesota | $1,760 | $585 |
| Mississippi | $1,771 | $446 |
| Missouri | $1,943 | $490 |
| Montana | $1,889 | $310 |
| Nebraska | $1,624 | $359 |
| Nevada | $2,779 | $973 |
| New Hampshire | $1,262 | $319 |
| New Jersey | $1,754 | $782 |
| New Mexico | $1,591 | $346 |
| New York | $3,139 | $1,371 |
| North Carolina | $1,446 | $432 |
| North Dakota | $1,302 | $269 |
| Ohio | $1,266 | $338 |
| Oklahoma | $1,998 | $406 |
| Oregon | $1,415 | $616 |
| Pennsylvania | $2,040 | $428 |
| Rhode Island | $1,886 | $551 |
| South Carolina | $1,532 | $524 |
| South Dakota | $1,553 | $276 |
| Tennessee | $1,429 | $371 |
| Texas | $2,019 | $565 |
| Utah | $1,510 | $539 |
| Vermont | $1,061 | $238 |
| Virginia | $1,439 | $494 |
| Washington | $1,410 | $515 |
| Washington D.C. | $2,072 | $607 |
| West Virginia | $1,580 | $421 |
| Wisconsin | $1,292 | $358 |
| Wyoming | $1,582 | $263 |
Source: Bankrate.com
What factors affect your car insurance?
There are several factors that influence the price you’ll pay to cover your car, including ones you can control and some you can’t. Here are a few of the factors considered:
- Your coverage amount. The amount of coverage you choose (full coverage versus minimum coverage), the types of coverage in your policy, and the limits on those policies will change the premium. Your deductible, or the amount you’ll be responsible for covering if you need to file a claim, can also influence your premium — typically, the higher the deductible, the lower the premium.
- Your personal infomation. You’ll likely be asked a lot of questions about yourself when shopping for car insurance, including questions about your age, whether you own a home, are married and in some states, even your gender identity. Your ZIP code and the amount you drive per year can also affect the price you pay.
- Your credit score. Your credit score plays a big part in the price you pay in some states (it’s not allowed to be considered as a factor in California, Hawaii, Massachusetts and Michigan). The higher your credit score, typically, the less you’ll pay for insurance.
