Penny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance into easy-to-understand advice and tips to help consumers make the best choices for their needs. Her work has been featured in numerous major media outlets, including The Washington Post and Kiplinger’s.
Penny Gusner
Penny Gusner is a senior insurance writer and analyst at Forbes Advisor. For more than 20 years, she has been helping consumers learn how insurance laws, data, trends, and coverages affect them. Penny enjoys translating the complexities of insurance into easy-to-understand advice and tips to help consumers make the best choices for their needs. Her work has been featured in numerous major media outlets, including The Washington Post and Kiplinger’s.
Marty Ellingsworth is the President of Salt Creek Analytics. He brings extensive career and industry experience in creating value from digital assets across the insurance ecosystem. He combines deep industry knowledge with data and advanced analytics in risk assessment, rating, underwriting, pricing, customer experience, claims servicing and fraud prevention.
Marty has served at many prestigious brands. Recently, he was the executive managing director for insurance at J.D. Power. Prior to that he was a specialist industry analyst at Celent (part of Marsh/Oliver Wyman) and an executive at USAA focusing on advanced analytics and machine learning. Before USAA, he held significant roles as a consultant at a venture-backed insuretech text analytics start-up, an insurance carrier leader with Fireman’s Fund, and as an executive for innovation at Verisk Analytics (also known as ISO). His earlier career included roles in healthcare and in the United States Air Force.
Marty’s research focuses on helping insurance companies build data-driven, customer-centric digital enterprises. He has a special interest in customer centricity and how risk and financial products fit actual living situations at home and on the job.
Marty has served at many prestigious brands. Recently, he was the executive managing director for insurance at J.D. Power. Prior to that he was a specialist industry analyst at Celent (part of Marsh/Oliver Wyman) and an executive at USAA focusing on advanced analytics and machine learning. Before USAA, he held significant roles as a consultant at a venture-backed insuretech text analytics start-up, an insurance carrier leader with Fireman’s Fund, and as an executive for innovation at Verisk Analytics (also known as ISO). His earlier career included roles in healthcare and in the United States Air Force.
Marty’s research focuses on helping insurance companies build data-driven, customer-centric digital enterprises. He has a special interest in customer centricity and how risk and financial products fit actual living situations at home and on the job.
Expert Reviewed
Marty Ellingsworth
Marty Ellingsworth is the President of Salt Creek Analytics. He brings extensive career and industry experience in creating value from digital assets across the insurance ecosystem. He combines deep industry knowledge with data and advanced analytics in risk assessment, rating, underwriting, pricing, customer experience, claims servicing and fraud prevention.
Marty has served at many prestigious brands. Recently, he was the executive managing director for insurance at J.D. Power. Prior to that he was a specialist industry analyst at Celent (part of Marsh/Oliver Wyman) and an executive at USAA focusing on advanced analytics and machine learning. Before USAA, he held significant roles as a consultant at a venture-backed insuretech text analytics start-up, an insurance carrier leader with Fireman’s Fund, and as an executive for innovation at Verisk Analytics (also known as ISO). His earlier career included roles in healthcare and in the United States Air Force.
Marty’s research focuses on helping insurance companies build data-driven, customer-centric digital enterprises. He has a special interest in customer centricity and how risk and financial products fit actual living situations at home and on the job.
Marty has served at many prestigious brands. Recently, he was the executive managing director for insurance at J.D. Power. Prior to that he was a specialist industry analyst at Celent (part of Marsh/Oliver Wyman) and an executive at USAA focusing on advanced analytics and machine learning. Before USAA, he held significant roles as a consultant at a venture-backed insuretech text analytics start-up, an insurance carrier leader with Fireman’s Fund, and as an executive for innovation at Verisk Analytics (also known as ISO). His earlier career included roles in healthcare and in the United States Air Force.
Marty’s research focuses on helping insurance companies build data-driven, customer-centric digital enterprises. He has a special interest in customer centricity and how risk and financial products fit actual living situations at home and on the job.
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Our analysis found that Nationwide is the best car insurance company overall, with Erie, Travelers and USAA also excelling. We analyzed insurers nationwide based on costs, coverage options, claims processes and complaints.
Read more
Best Car Insurance Companies
Show Summary
- Summary: Best Car Insurance Companies of April 2024
- The Best Car Insurance Companies in More Detail
- What Is the Best Car Insurance Company?
- How Much Does Car Insurance Cost?
- Types of Car Insurance
- Methodology
- Other Car Insurance Companies We Rated
- Best Car Insurance Companies Frequently Asked Questions (FAQs)
- Next Up In Car Insurance
Summary: Best Car Insurance Companies of April 2024
The Best Car Insurance Companies in More Detail
What Is the Best Car Insurance Company?
Our analysis finds that Nationwide, USAA, Traveler and Erie are the best car companies, all receiving over 4.5 stars (out of 5) in our ratings.
The best car insurance companies for you will depend on your driving record, state and other individual factors. We recommend shopping around to compare car insurance quotes, as the company with the lowest rates will depend on your specific profile.
Best Overall: Nationwide
Nationwide is the best overall car insurance company thanks to its great rates for a variety of driving records and driver ages, its wide range of coverage options and its low level of complaints.
Nationwide’s average rate for good drivers is 29% lower than the national average. It has the cheapest rates for drivers with poor credit, parents adding a teen driver and drivers age 65 to 80, among companies we evaluated.
| Company | Average cost per year for good drivers |
|---|---|
|
$1,364
|
|
|
$1,436
|
|
|
$1,521
|
|
|
$1,597
|
|
|
$1,642
|
|
|
$1,826
|
|
|
$1,855
|
|
|
$1,984
|
|
|
National average
|
$2,026
|
*USAA is available only to the military, veterans and their families.
Best for Military Members: USAA
USAA is the best car insurance option for military members year after year with its consistently cheap rates and variety of coverage options. USAA sells exclusively to military members, veterans and their family members. It offers a discount of up to 60% if you store your car while you’re deployed and up to 15% for drivers who garage their cars on a base.
USAA’s average rate for good drivers is 33% below the national average. Costs for those with a speeding ticket are 34% lower and 35% lower for drivers who caused an accident with injuries.
USAA Average Annual Car Insurance Costs
| Driving record | Cost per year | National average |
|---|---|---|
|
Good drivers
|
$1,364
|
$2,026
|
|
Drivers with a speeding ticket
|
$1,661
|
$2,533
|
|
Drivers with a DUI conviction
|
$2,604
|
$3,363
|
|
Drivers who caused an accident with injury
|
$1,958
|
$3,009
|
|
Drivers with poor credit
|
$2,450
|
$3,847
|
Great for Drivers With a Speeding Ticket: Travelers
Travelers offers low-cost insurance for drivers with a speeding ticket. While its rates aren’t the cheapest, they are 19% lower than the national average for drivers with a speeding violation. We found that Travelers’ average cost for insurance after a speeding ticket is lower than many of its competitors.
| Company | Average cost per year for drivers with a speeding ticket |
|---|---|
|
$1,661
|
|
|
$1,878
|
|
|
$1,899
|
|
|
$2,062
|
|
|
$2,150
|
|
|
$2,335
|
|
|
$2,350
|
|
|
$2,457
|
|
|
National average
|
$2,533
|
*USAA is available only to the military, veterans and their families.
Best for Drivers Who Caused an Accident: Erie
Erie has the best rates for drivers who caused an accident with injuries or property damage. USAA is a bit cheaper for both but its policies are only available to military members, veterans and their families.
Causing an accident leads to an average of 49% increase if there are injuries and 48% increase if there is property damage. Erie’s costs only go up 35% if you cause an accident with injuries and just 29% if you cause property damage.
| Company | Average cost per year after an accident with injuries | Average cost per year after an accident with property damage |
|---|---|---|
|
$1,958
|
$2,021
|
|
|
$2,224
|
$2,125
|
|
|
$2,293
|
$2,215
|
|
|
$2,337
|
$2,298
|
|
|
$2,539
|
$2,539
|
|
|
$2,748
|
$2,718
|
|
|
$2,770
|
$2,818
|
|
|
$2,901
|
$2,901
|
|
|
National average
|
$3,009
|
$2,994
|
*USAA is available only to the military, veterans and their families.
Best for Drivers With a DUI: Progressive
Progressive offers the cheapest rates for drivers with a DUI among the companies we analyzed. A DUI is considered a major offense so it can really hike up your insurance. Our analysis found rates go up by 71% on average for drivers with a DUI, but Progressive’s rates only increase 26%.
| Company | Average cost per year for a driver with one DUI |
|---|---|
|
$2,307
|
|
|
$2,604
|
|
|
$2,610
|
|
|
$2,665
|
|
|
$3,083
|
|
|
$3,578
|
|
|
$3,723
|
|
|
$4,577
|
|
|
National average
|
$3,363
|
*USAA is available only to the military, veterans and their families.
Great for Drivers With Poor Credit: Geico
Geico offers lower rates to drivers with poor credit compared to other top insurers. Its rates are also 36% cheaper than the national average.
| Company | Average cost per year for drivers with poor credit |
|---|---|
|
$2,051
|
|
|
$2,450
|
|
|
$2,482
|
|
|
$2,699
|
|
|
$3,221
|
|
|
$3,403
|
|
|
$3,701
|
|
|
$5,407
|
|
|
National average
|
$3,847
|
*USAA is available only to the military, veterans and their families.
Best for Family Discounts: Westfield
Compared to other top-rated companies, Westfield has an excellent variety of discounts so family members can save on car insurance. It offers a family discount, next generation discount and companion car insurance discount.
Best for New Cars: Auto-Owners
Auto-Owners offers new-vehicle owners exceptional coverage options. It has two types of new car replacement coverage and gap insurance. If your new car is totaled or stolen, gap insurance pays the difference between your insurance payout and the amount still owed on a lease or loan. Also:
- Auto-Owners’ “purchase price guarantee” pays you the original purchase price if your car is totaled within the first two years and you’re the original car owner.
- “Total loss to a new automobile” coverage pays to replace your car with a new one of equal value or pays out your original purchase price if your car is totaled within 90 days of purchase.
Not all top-rated companies offer new car replacement coverage and the ones that do usually offer just one type.
| Company | Offers gap insurance | Offers new car replacement |
|---|---|---|
|
Yes
|
Yes, two types
|
|
|
Yes
|
Yes
|
|
|
No
|
No
|
|
|
Yes
|
Yes
|
|
|
Yes
|
No
|
|
|
Yes
|
Yes
|
|
|
No
|
Yes
|
|
|
Yes
|
Yes
|
Best Digital Experience: Geico
Are car insurance companies keeping up with increasing consumer demands for a delightful digital experience? We found out by analyzing mobile app ratings and website functionality. We discovered that Geico currently has the overall best digital experience among the companies that otherwise scored well in our analysis of the best auto insurers.
| Company | Forbes Advisor rating for digital experience | Our expert take |
|---|---|---|
|
Geico
|
 5.0 stars
|
Geico leaves its competitors in the dust thanks to the live chat on its website, high user ratings for its mobile apps (4.7 out of 5) and online quotes. It also has a Spanish website version.
|
|
Progressive
|
 4.0 stars
|
Progressive scored well for its mobile app ratings (4.7 out of 5), helpful site search and online quotes. But there’s no Spanish version of its site or live chat.
|
|
Nationwide
|
3.9 stars
|
Nationwide’s app has a good user rating (4.6 out of 5), a helpful site search and online quotes. It lacks a live chat and Spanish version.
|
|
USAA
|
 3.7 stars
|
USAA’s mobile app has decent user ratings (4.4 out of 5), online quotes and a good site search. But it comes up with no Spanish version and its live chat leaves a lot to be desired: There are only five pre-set questions, none of which could answer our test question about how to get policy documents.
|
|
Travelers
|
3.4 stars
|
Travelers’ average mobile app rating (4.1 out of 5) is OK, and it has online quotes and a good site search. But like many others in our analysis, it lacks a Spanish version and online chat.
|
|
Erie
|
 2.2 stars
|
Erie’s mobile app fails to impress, with a low user rating (2.9 out of 5). It does have online quotes and a good site search, but it lacks online chat and a Spanish version.
|
|
Auto-Owners
|
No stars
|
Auto-Owners failed to earn any stars in our analysis mainly due to its lack of online quotes, a site search that is not helpful and no online chat.
|
|
Westfield
|
No stars
|
Westfield lacks basic digital features: No mobile app, no online quotes, no online chat and a site search that delivers poor results.
|
Tips for Finding the Best Car Insurance
Marty Ellingsworth
Forbes Advisor Insurance Advisory Board Member
Penny Gusner
Forbes Advisor Senior Writer
Amy Danise
Forbes Advisor Editor
Michelle Megna
Forbes Advisor Editor
Les Masterson
Forbes Advisor Editor
Jason Metz
Forbes Advisor Editor
Shop around frequently
When it comes to auto insurance shopping advice, early, often and regularly are the three watchwords to remember. I recommend making insurance shopping a regular exercise and not once a decade one, when you trade in a vehicle or only when rates go up. Take advantage of all your resources—call your company to ask for discounts, use the internet to get multiple quotes, ask a local agent to describe options, and don’t forget to ask your family and neighbors.
Marty Ellingsworth
Forbes Advisor Insurance Advisory Board Member
Don’t overlook small insurers
I recommend looking at companies of all sizes when searching for the best insurance company. If you count out small insurers, you may miss out on a company that offers good coverage perks and superb rates.
Penny Gusner
Forbes Advisor Senior Writer
Be cautious about usage-based insurance
Your car insurance company might suggest you become part of a telematics program, aka usage-based auto insurance. If you like your privacy, I’d say this isn’t a good option for you. Your data could be shared with other insurers and even affect future car insurance quotes from other companies. Also, most people in usage-based programs do not drive well enough to get a discount.
Amy Danise
Forbes Advisor Editor
Confirm there’s a mobile app
If digital experience is important to you, make sure the insurer you’re considering has a mobile app. Believe it or not, not all insurers do! I like to have the ability to show my insurance ID card from my phone, for example.
Michelle Megna
Forbes Advisor Editor
Don’t skimp on liability insurance
With an increasingly litigious society, I think it’s very important to make sure you have generous liability insurance. If you haven’t paid much attention to this line item on your declarations page, I recommend taking a look. You want enough liability insurance to equal your net worth, which is essentially what you can be sued for. Buy umbrella insurance for extra liability insurance at a good price.
Les Masterson
Forbes Advisor Editor
Consider rental reimbursement insurance
I think rental reimbursement insurance is an underappreciated coverage. Car repair times have been going up. Your vehicle could easily be in the shop for a collision repair for three weeks or more, waiting to get worked on and waiting for parts. This coverage can help pay for a rental, so you’re not footing the whole bill yourself.
Jason Metz
Forbes Advisor Editor
How Much Does Car Insurance Cost?
Car insurance costs an average of $2,026 a year, based on our analysis of rates from large car insurance companies. That’s an average of $169 per month.
| Company | Average annual car insurance cost for good drivers | Average monthly car insurance cost for good drivers |
|---|---|---|
|
$1,364
|
$114
|
|
|
$1,436
|
$120
|
|
|
$1,521
|
$127
|
|
|
$1,597
|
$133
|
|
|
$1,642
|
$137
|
|
|
$1,826
|
$152
|
|
|
$1,855
|
$155
|
|
|
$1,984
|
$165
|
|
|
$2,025
|
$169
|
|
|
$2,210
|
$184
|
|
|
$2,889
|
$241
|
|
|
$2,896
|
$241
|
|
|
$3,093
|
$258
|
Rates are based on a female driver, age 40, with a good driving record and insuring a new Toyota RAV4 with liability coverage of 100/300/100 ($100,000 in bodily injury liability per person, $300,000 per accident, and $100,000 in property damage liability), uninsured motorist coverage, and collision and comprehensive insurance with a $500 deductible. *USAA is available only to the military, veterans and their families.
Car Insurance Rates by State
Auto insurance rates vary by state for many reasons, including the coverage limits required in each state, severe weather that leads to claims, and local costs of repair parts and labor.
| State | Average annual full coverage cost |
|---|---|
|
$1,975
|
|
|
$1,913
|
|
|
$2,110
|
|
|
$2,295
|
|
|
$2,768
|
|
|
$2,591
|
|
|
$2,252
|
|
|
$2,405
|
|
|
$3,865
|
|
|
$2,003
|
|
|
$1,369
|
|
|
$1,246
|
|
|
$1,903
|
|
|
$1,627
|
|
|
$1,559
|
|
|
$2,032
|
|
|
$2,496
|
|
|
$3,545
|
|
|
$1,361
|
|
|
$2,210
|
|
|
$1,804
|
|
|
$2,372
|
|
|
$2,016
|
|
|
$1,917
|
|
|
$2,434
|
|
|
$2,354
|
|
|
$1,709
|
|
|
$2,496
|
|
|
$1,390
|
|
|
$2,438
|
|
|
$2,082
|
|
|
$2,612
|
|
|
$1,470
|
|
|
$2,190
|
|
|
$1,434
|
|
|
$2,741
|
|
|
$1,748
|
|
|
$2,353
|
|
|
$2,080
|
|
|
$2,172
|
|
|
$2,075
|
|
|
$1,843
|
|
|
$2,609
|
|
|
$2,050
|
|
|
$1,158
|
|
|
$1,755
|
|
|
$1,525
|
|
|
$1,942
|
|
|
$1,655
|
|
|
$1,531
|
Rates are based on a 40-year-old female driver with a good driving record. Averages are based on coverage with $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 for property damage (known as 100/300/100), uninsured motorist coverage, and collision and comprehensive insurance with a $500 deductible. Source: Quadrant Information Services.
Types of Car Insurance
Knowing the types of car insurance coverage available is important to building the best policy for your specific situation. Liability is the foundation for all auto insurance policies. From there, states vary on what is required, and there is optional coverage you may want for broader coverage.
Methodology
To identify the best car insurance companies we evaluated each company based on its average rates for a variety of drivers, the coverage options offered, complaints against the company and collision repair grades from auto body professionals.
Auto insurance rates (50% of score): We used data from Quadrant Information Services to find average rates from each company for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit, drivers caught without insurance, adding a teen driver, senior drivers and young drivers.
Unless otherwise noted, rates are based on a 40-year-old female driver with a Toyota RAV4 and coverage of:
- $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
- Uninsured motorist coverage of 100/300.
- Collision and comprehensive insurance with a $500 deductible.
Car insurance coverage options (25% of score): Any auto insurance company can provide the basics of liability insurance, collision and comprehensive coverage and other standard offerings. But it’s also important to have access to additional coverage types that can provide greater protection or cost savings. In this category, we gave points to companies that offer accident forgiveness, new car replacement, vanishing deductibles, usage-based or pay-per-mile insurance and SR-22s.
Complaints (20% of score): We used complaint data from the National Association of Insurance Commissioners. Each state’s department of insurance is in charge of logging and monitoring complaints against companies operating in their states. Most auto insurance complaints center on claims, including unsatisfactory settlements, delays, and denials.
The industry complaint average is 1.00, so companies with a ratio below 1.00 have lower levels of complaints.
Collision repair (5% of score): We incorporated insurance company grades from collision repair professionals. We used data provided by CRASH Network, a weekly newsletter covering the collision repair and auto insurance market segments. CRASH Network’s Insurer Report Card used grades from more than 1,100 collision repair professionals to gauge auto insurers on the quality of their collision claims service.
Auto Insurance Collision Repair Grades
| Company | CRASH Network collision repair grades |
|---|---|
|
A-
|
|
|
B
|
|
|
B
|
|
|
C
|
|
|
C
|
|
|
C
|
|
|
C-
|
|
|
D+
|
Source: Courtesy of CRASH Network
Read more: How Forbes Advisor rates car insurance companies
Methodology for Our Digital Experience Ratings
Our Digital Experience ratings reflect the quality of a company’s mobile app and website. Ratings are based on:
Car insurance quotes online (40% of score): Companies with car insurance quotes available on their websites earned points.
Website has live helpful chat (20% of score): We gave points to companies that have live chat (whether from a person or a chatbot) that is helpful. To measure helpfulness, we asked, “How do I get a copy of my car insurance policy?” and gave points for a direct and helpful answer.
Average mobile app rating (20% of score): We averaged mobile app ratings from Android and iOS users when there were 200 or more reviews.
Website has helpful search function (15% of score): Companies earned points for having a site search and for showing a helpful page within the first two results for a search for “comprehensive insurance.”
Website Spanish version (5% of score): Companies earned points for having a link to a Spanish version on their home pages.
Other Car Insurance Companies We Rated
Here are other car insurance companies we analyzed as part of our best of our car insurance companies research but did not make our list of top picks.
| Company | Forbes Advisor rating |
|---|---|
|
State Farm
|
 3.5 stars
|
|
Allstate
|
3.4 stars
|
|
Mercury
|
3.3 stars
|
|
Farmers
|
 3.0 stars
|
|
Safe Auto
|
 1.3 stars
|
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Best Car Insurance Companies Frequently Asked Questions (FAQs)
What is car insurance?
Car insurance is a contract between you and the insurance company that provides you with specific coverage in exchange for your premium payments. A car insurance policy is a contract that outlines what you can make claims for and your duties as a customer.
The best car insurance policies cover liability (meaning damage and injuries you cause to others), damage to your own vehicle and car accident injuries to you and your passengers.
Which company has the best car insurance?
Erie, Nationwide, Travelers and USAA have the best car insurance, according to Forbes Advisor’s analysis. We evaluated costs for a variety of drivers, available coverage types, complaints and collision repair to identify the top companies.
Drivers’ needs vary, so use our analysis as a jumping-off point in your quest for the car insurance company that best fits your specific situation.
How can I find the best price on car insurance?
The key to finding a good deal is to get car insurance quotes from multiple companies. That’s the only way you’ll know what companies are going to charge and which companies are coming in with the lowest rates.
Another good savings strategy is to bundle auto insurance with another policy, such as homeowners or renters insurance. Buying more than one policy from the same company typically results in a decent discount.
What car insurance discounts should I look for?
Look for car insurance discounts that fit your driving profile. Seek out a good driver discount if you have a clean driving record. Look for a bundling discount if you buy your auto and home insurance with the same company or a multi-car discount if you have two or more cars on your policy.
There is a wide variety of car insurance discounts offered by insurers, so ask your agent if there are any you are missing out on—like going paperless by receiving insurance bills and policies electronically for a small saving. Check what car insurance discounts for students you can obtain if you have a young driver in your household.
Is car insurance getting more expensive?
The cost of auto insurance continues its upward trend. Auto insurance rates have continually escalated due to increased claims costs for insurers, which pass on the higher costs to customers in the form of higher rates. The uptick in claims expenses is fueled by more costly car parts, labor and medical bills.
