The 10 Best Car Insurance Companies of June 2022

We consider coverage, pricing and customer satisfaction ratings to find the best car insurance providers

The best car insurance companies on the market don’t just offer great coverage and affordable payments. They also have a simple claims process, easy-to-use technology and an excellent customer service experience.

Choosing the best auto insurance provider for you can be intimidating. That’s why we at the Home Media reviews team have done the legwork for you, narrowing down the top 10 car insurance companies in the industry. In this article, we’ll review each company’s reputation, availability, coverage options, discounts and customer experience, going into detail on the five best car insurance providers.

43 COMPANIES COMPARED 1,300 HOURS RESEARCHED 2,500 DATA POINTS
1,000+ CONSUMERS SURVEYED 1.5M RATES REVIEWED

The best car insurance companies on the market

After we thoroughly researched the auto insurance market, 10 companies stood out among the competition as the best car insurance providers. When ranking these insurers, our team considered state availability, breadth of coverage, pricing and satisfaction scores from experts like J.D. Power.

We also took into account AM Best financial strength ratings and complaint volume as reported by the National Association of Insurance Commissioners (NAIC). Each insurer was graded on a 10-point scale. We’ll take a closer look at our top five picks for best auto insurance companies below.

Car

Insurance

Company

Overall

Rating

Our Award
#1 USAA9.5Low Rates for Military
#2 Geico9.2Editor’s Choice
#3 State Farm9.2Most Popular Provider
#4 Progressive9.2Low Rates for High-Risk Drivers
#5 Travelers9.1Most Coverage Options
#6 Erie Insurance9.0
#7 Liberty Mutual8.8
#8 Auto-Owners Insurance8.8
#9 Farmers Insurance8.7
#10 Nationwide8.6

Our picks for the best car insurance

Our top five picks for the best car insurance are USAA, Geico, State Farm, Progressive and Travelers.

#1 USAA: Low Rates for Military

Average cost: $
Number of discounts: 12
Usage-based insurance: SafePilotTM in 37 states

USAA is our first choice for the best car insurance in the nation. It regularly tops J.D. Power auto insurance studies as one of the best providers in terms of customer satisfaction and value. The company is well known for its high customer ratings and affordable coverage options, including accident forgiveness. However, it has strict eligibility requirements and not everyone qualifies for coverage.

USAA auto insurance is only available to military members, veterans and their families, which greatly restricts who can purchase coverage. If you are eligible for a USAA insurance policy, it’s one of the best options available. Beyond the standard types of car insurance, USAA offers the following optional coverage:

  • Roadside assistance
  • Rental car reimbursement
  • Accident forgiveness
  • Glass coverage
  • Guaranteed asset protection (GAP insurance)
  • Car replacement assistance (CRA)
  • Rideshare insurance

USAA received an A++ financial strength rating from AM Best and an A+ rating from the Better Business Bureau (BBB). The auto insurer made up 6.01% of the market share in 2021, according to the NAIC. Though it’s not the largest auto insurer, USAA still has reputable financial strength. In 2021, the company wrote $15.73 billion in private passenger auto insurance premiums.

While USAA does not have many physical locations, policyholders are still impressed by the company’s customer service. USAA earned the top score in the J.D. Power 2021 U.S. Auto Insurance StudySM in every U.S. region, though it’s unranked due to its eligibility criteria. And in our January 2022 car insurance survey, nearly 65% of the 107 respondents who had coverage through USAA said they were very satisfied with USAA insurance, the highest of any provider.

USAA is known for its affordability as well. It offers the cheapest car insurance on average compared to any other provider we researched. Our rate estimates show good drivers pay about $1,013 per year on average for full coverage car insurance with USAA. The company also offers discounts based on driver safety, multiple policies, safety features such as airbags and more.

You can find out more about the insurer in our USAA insurance review.

#2 Geico: Editor’s Choice

Average cost: $$
Number of discounts: 16
Usage-based insurance: DriveEasy in 26 states

If you don’t qualify for USAA insurance coverage, Geico is worth considering as your top choice.The company offers reputable service, a wide selection of coverage and cheap car insurance rates, according to our rate estimates.

Besides the standard coverage options, Geico offers helpful add-ons such as:

  • Emergency roadside assistance
  • Rental car reimbursement
  • Mechanical breakdown insurance (MBI)
  • Rideshare insurance

Geico received an A++ (Superior) rating from AM Best, meaning the company has the financial backing to pay customers’ insurance claims. A larger auto insurer like Geico comes with more financial stability compared to a smaller, local company.

Geico also has a strong customer service reputation. According to the J.D. Power Auto Insurance Study, Geico performed better than average in California and the Central and New England regions. The study surveyed customers on their satisfaction with claims, billing, price, policy and more. Additionally, our January 2022 insurance survey that polled 1,000 respondents found nearly 12% chose Geico as their insurance provider.

Regarding cost, Geico’s rates are some of the most affordable we’ve seen. Our rate estimates show that drivers pay about $1,350 per year on average for full coverage car insurance from Geico. These rate estimates apply to 35-year-olds with good credit and driving records. Our estimates put Geico in the top three companies for affordability compared to other national providers.

On top of that, the insurer offers a number of ways to save money, including a good driver discount (up to 26% off), a good student discount (up to 15% off) and a multi-vehicle discount (up to 25% off).

You can learn more about the company in our Geico insurance review.

#3 State Farm: Most Popular Provider

Average cost: $$
Number of discounts: 13
Usage-based insurance: Drive Safe & SaveTM (not available in California, Massachusetts and Rhode Island)

State Farm is another strong choice when it comes to finding the best auto insurance in the industry. Our January 2022 insurance survey found the insurer is the most popular provider among the 1,000 respondents surveyed, with 13% stating they purchased State Farm insurance coverage.

Beyond the standard types of coverage, State Farm offers:

  • Emergency road service coverage
  • Car rental and travel expenses coverage
  • Rideshare driver coverage

Our cost estimates show good drivers pay an average of about $1,339 annually for full coverage insurance with State Farm. This ranks State Farm among the most affordable national providers.

As the biggest car insurance company in the country, State Farm is no stranger to claims satisfaction — the company has an A++ rating from AM Best. According to the NAIC, State Farm accounted for 15.93% of the auto insurance market share in 2021. State Farm also had fewer complaints than the industry average in 2020, though customer reviews on the BBB are mixed.

We chose State Farm as one of the nation’s best car insurance companies in part because of the usage-based and safe driving discounts it offers to young drivers. There are two discount programs available through mobile apps:

  • Drive Safe & Save: State Farm tracks and rewards safe driving habits through the Drive Safe & Save mobile app. By reducing driving behaviors such as quick accelerations, hard braking and speeding, drivers can earn up to 30% off their premiums. This program is not available in California, Massachusetts or Rhode Island.
  • Steer Clear®: Teens and new drivers can receive course training, mentoring, driving practice and a program certification to encourage good driving habits. After successfully completing the program, drivers get a discount on their auto insurance premium.

Other State Farm auto insurance discounts include those for good grades, safe driving, defensive driving, vehicle safety features and driving course completion. The company does not offer a military discount.

You can discover more about the company in our State Farm insurance review.

#4 Progressive: Low Rates for High-Risk Drivers

 

Average cost: $$
Number of discounts: 13
Usage-based insurance: Snapshot® (not available in California or North Carolina)

If you are under 21, are an elderly driver or have received a DUI/DWI, Progressive may be the best car insurance option for you. We found that Progressive tends to be one of the cheapest national providers for high-risk drivers besides USAA. Our rate estimates also show safe drivers pay about $1,397 per year for full coverage insurance with Progressive on average, which puts it just behind Geico and State Farm for affordability.

Aside from the standard types of car insurance coverage, Progressive offers:

  • Roadside assistance
  • Rental car reimbursement
  • Loan/lease payoff
  • Custom parts and equipment value
  • Rideshare coverage

While Progressive has mixed customer service reviews, it scored above average in about half of the regions in the J.D. Power Auto Insurance Study. Our 2022 car insurance survey found 74% of Progressive policyholders are satisfied with their coverage. Progressive also offers strong financial stability, with an A+ rating from AM Best. The company also wrote more than $35 billion in premiums in 2021, according to the NAIC.

Our team reached out to Progressive for a comment on its negative review scores but did not receive a response.

Progressive offers auto insurance discounts as well as a few tools to help lower your rates. Using a mobile app that tracks and records your driving habits, Progressive’s Snapshot® program rewards safe driving behavior with discounts on premiums. On average, drivers who use Snapshot save $146 on their policies, according to Progressive. However, this program is not available in California or North Carolina.

Drivers interested in Progressive policies should also look into the Name Your Price® tool. The insurer will customize a variety of coverage options based on your auto insurance budget.

You can read more in our Progressive insurance review.

#5 Travelers: Most Coverage Options

Average cost: $$
Number of discounts: 12
Usage-based insurance: IntelliDrive® (available in 40 states)

Travelers can be a good auto insurance option for drivers who want extra coverage options. The insurer offers the following in addition to standard types of insurance:

  • Auto loan/lease gap insurance
  • Rental car coverage
  • Roadside assistance
  • New car replacement
  • Accident forgiveness
  • Rideshare coverage
  • Named non-owner insurance
  • Umbrella insurance

Travelers has an AM Best rating of A++ for its financial stability and ability to pay out insurance claims. The insurer’s customer service, however, has mixed reviews. In the J.D. Power Auto Insurance Study, Travelers scored below the segment average in almost every region except New York.

Our team reached out to Travelers for a comment on its negative review scores but did not receive a response.

According to our research, Travelers insurance pricing is slightly cheaper than the national average, costing $1,617 per year on average for a full coverage policy. The auto insurer offers a number of discounts, including savings for homeowners, good students and drivers who remain accident-free.

You can find out more in our complete Travelers insurance review.

What are the types of auto insurance?

Most auto insurers offer six standard types of car insurance. Based on your state’s minimum requirements, some types of auto insurance policies are mandatory. However, it’s typically a good idea to purchase full coverage rather than just the state minimum coverage.

  • Liability car insurance: Bodily injury liability insurance (BI) covers other drivers and passengers if you are at fault in a collision, and property damage liability (PD) covers other cars or property if you are at fault in a collision.
  • Collision insurance: Collision coverage protects your vehicle, regardless of who is at fault.
  • Comprehensive insurance: Comprehensive coverage pays for damages to your vehicle caused by environmental factors, theft or vandalism.
  • Medical payments (MedPay): MedPay covers any medical expenses for you and your passengers after a collision.
  • Personal injury protection (PIP): PIP covers medical bills, lost wages and death benefits for you and your passengers, regardless of fault.
  • Underinsured/uninsured motorist coverage (UIM/UM): This type of coverage protects you if you’re in a car accident with a motorist with too little coverage or no coverage at all.

Our January 2022 car insurance survey found 67% of the 1,000 respondents polled purchased full coverage insurance, which includes a combination of liability, collision and comprehensive coverage.

How much does car insurance cost?

According to our rate estimates, 35-year-old drivers with clean driving records and good credit pay between about $1,000 and $2,500 per year on average for full coverage insurance. Car insurance prices depend on many factors, including your age, location, credit score, driving record and type of vehicle.

Here are 11 popular insurance providers and their average monthly and annual costs according to our rate estimates:

Car Insurance ProviderAverage Monthly Cost EstimateAverage Annual Cost Estimate
USAA$84$1,013
Erie Insurance$93$1,113
Auto-Owners Insurance$102$1,229
State Farm$111$1,339
Geico$113$1,352
Progressive$116$1,397
Nationwide$128$1,533
Travelers$135$1,617
Farmers Insurance$169$2,032
The Hartford$180$2,166
Allstate$202$2,430

How car insurance costs vary by driving profile

Several factors influence how much you pay for car insurance coverage, which is why each car insurance company personalizes quotes for every driver. For instance, having an at-fault accident can add around $912 to your annual rate on average, while having poor credit or a DUI can add an average of about $1,456.

Car insurance cost by state

While costs vary based on your driving profile, your car insurance quote may also be higher or lower depending on where you live. According to our rate estimates, Michigan, New York and Louisiana tend to be the most expensive states for car insurance, while Ohio, Wisconsin and Maine are generally the cheapest.

What affects the cost of car insurance?

The cost of car insurance is influenced by a variety of factors, some of which are in a driver’s control and some of which are not. Understanding what you’re able to control can help ensure you’re getting the best insurance rate.

Here are the most common factors that affect car insurance costs:

  • Location: Drivers in larger, more urban areas will often face higher auto insurance rates. Insurers factor in the higher likelihood of a collision due to increased traffic and vehicles per capita in cities.
  • Age: Drivers under the age of 25 and elderly drivers are typically given high insurance premiums, as these types of drivers are considered higher risk. New drivers, regardless of age, will also have higher auto insurance costs.
  • Driving history: If you have an at-fault accident, moving violations or a DUI/DWI on your record, a car insurance policy will cost more.
  • Credit score: A high credit score indicates to insurers that a driver is reliable and financially responsible, so their auto insurance policy will cost less. Having a poor credit score can increase your rates (except in California, Hawaii, Massachusetts and Michigan).
  • Vehicle type: Often, drivers with pricey sports cars pay more for the best car insurance because repairs are more expensive after an accident.
  • Deductible: A lower deductible leads to a higher premium.

How to find the best car insurance rates

Getting the most affordable car insurance rates can be tricky, especially with the amount of information drivers need to know about policies. We’ve laid out five key steps below that explain how to find the best car insurance rates for your budget.

1. Get auto insurance quotes

It’s always a good idea to compare car insurance quotes between companies. Based on your driver profile and the other factors we listed above, your auto insurance cost can vary greatly.

Some insurance providers offer affordable rates to senior drivers, while others provide cheap car insurance for new or teen drivers. Before settling on a price, reach out to multiple auto insurers. You can compare quotes online yourself or work with an independent insurance agent to compare policies.

2. Look for discounts

Companies offer a wide range of car insurance discounts, so look for ones that apply to your situation. For example, some providers offer better discounts for students, while others offer discounts for military and occupational affiliations. Major providers offer other insurance products such as home, renters and life insurance, so you can often find discounts for bundling policies as well.

3. Opt for a higher deductible

While it may seem burdensome at first, a higher deductible can significantly reduce your auto insurance costs. Ask your insurance provider which deductible options are available for your coverage policy, and see how each affects your premium. Keep in mind, though, that you’ll need to be able to pay your deductible in the event of a claim.

4. Keep your credit in check

Pay all bills on time and see if there are additional ways to improve your credit score. Paying your bills in full and keeping your credit balances low will also help increase your credit score.

5. Try telematics insurance

Telematics insurance programs provide discounts based on your driving habits. If you have a short commute and practice good driving habits, you could save money with pay-per-mile insurance or a safe-driving program.

Consumer experience with car insurance companies

In January 2022, our team of experts surveyed 1,000 people who had purchased car insurance coverage. Most of the participants had used one of the auto insurance companies in this article, while some used other providers.

Shopping for the best car insurance coverage

According to the survey, 28% of policyholders shop for car insurance coverage in intervals longer than one year. Another 26% said they shopped for car insurance coverage every six months, while 25% reported shopping only once a year.

We found that most policyholders shopped for car insurance in the following ways:

  • 30% used a quote comparison tool online
  • 24% got online quotes through individual companies
  • 21% called car insurance companies directly
  • 16% used an independent insurance broker or agency to find coverage

Rate increases from car insurance companies

In our survey, we asked participants if they had ever experienced a rate increase without an obvious cause like an accident or ticket. Over 40% of the 1,000 respondents reported they had experienced a rate increase at some point.

Filing a claim with your insurance company

Our survey found that 25% of policyholders had their insurance claims resolved within two weeks. This was followed by 24% saying their claims were taken care of in two to four weeks, while 14% reported it took longer than four weeks.

Which car insurance company is best for you?

The best car insurance companies can vary based on your needs and driver profile. We recommend Geico as the Editor’s Choice provider for most drivers based on its affordability, strong financial standing and positive customer service ratings.

It’s always good to compare insurers. Get free car insurance quotes when you shop to find the best coverage and price for your situation.

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