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If you’re shopping for car insurance you’ll have a multitude choices—and many companies advertising that they can save you money.
We evaluated insurers to find the best car insurance companies based on their average insurance rates, level of complaints and grades for collision claims from auto body repair professionals provided by CRASH Network.
Very good
A-
Higher than the industry average
Erie’s very competitive auto insurance rates and high score from collision repair experts boosted it to a 5-star rating.
Excellent
C+
OK
USAA’s superior pricing propelled it to the top of our rankings. Note that USAA auto insurance is only available to those with U.S. military affiliations, including active, retired, and separated veterans with an honorable military discharge and their eligible family members.
Very good
C
Low
State Farm’s very competitive rates and low complaint level make it a solid choice
Good
C+
Very Low
Travelers good rates and superior standing in low complaints helped boost it to a high rating
OK
B+
Low
Auto-Owners’ grade from collision repair professionals and low complaint levels helped it overcome so-so rates to gain a high rating
Good
C-
Low
Geico’s good rates and low complaint level boosted its rating.
OK
C
Very low
Nationwide’s very low complaint level helped boost its overall rating.
Company | Auto insurance rates | Collision repair grade | Complaint level | Forbes Advisor rating |
---|---|---|---|---|
Erie | Very good | A- | Higher than the industry average | |
USAA | Excellent | C+ | OK | |
State Farm | Very Good | C | Low | |
Travelers | Good | C+ | Very Low | |
Auto-Owners | OK | B+ | Low | |
Geico | Good | C- | Low | |
Nationwide | OK | C | Very Low | |
Allstate | Poor | C- | Low | |
Progressive | OK | C | OK | |
Farmers | Poor | C | Higher than the industry average |
For North Carolina drivers, North Carolina Farm Bureau offers excellent rates and an A+ grade for its claims service as judged by collision repair professionals. Its level of complaints is slightly higher than the industry average, but its other qualities boosted it to 5 stars in our scoring system.
Here’s a look at car insurance rates based on averages nationwide among the largest insurance companies.
Type of driver | Average annual rate | |
---|---|---|
For good drivers | $1,556 | |
For drivers who have caused an accident with property damage | $1,732 | |
For drivers who have caused an accident that injured someone else | $2,541 | |
For drivers with one speeding ticket | $1,732 | |
For drivers with a DUI conviction | $2,595 | |
For drivers who have poor credit | $2,860 | |
For drivers who were caught without insurance | $1,764 | |
It’s a good idea to shop for car insurance before you buy a car. Without car insurance in place, you may not be able to drive your new wheels off the dealer’s lot.
Once you decide how much car insurance you need, it’s time to start shopping for a policy. Prices often vary widely among companies, so it’s smart to compare car insurance quotes from multiple insurers.
You can find free quotes online or by working with an auto insurance agent. Independent insurance agents can provide quotes from multiple companies.
Insurance quotes are always free.
Ask about car insurance discounts when you’re getting car insurance quotes. You can typically knock down your car insurance costs with discounts for:
Here are types of car insurance you should know:
Car liability insurance. This pays for injuries and property damage you cause to others. A good rule of thumb is to buy enough car liability insurance to cover what can be taken from you in a lawsuit.
Required? Yes, in most states.
Uninsured motorist coverage (UM) and Uninsured Motorist Coverage (UIM). These coverage types pay for your medical bills and other expenses if someone crashes into you and they don’t have liability insurance or have inadequate insurance.
Required? Uninsured motorist coverage is mandatory in some states and optional in others.
Collision and comprehensive insurance. These are two separate coverage types often sold together. Collision and comprehensive insurance pay for car repair bills for problems such as car accidents, car theft, fires, floods, severe weather, falling objects and collisions with animals.
Required? If you have a car loan or lease, your lender or leasing agent will likely require that you have these. Otherwise collision and comprehensive are optional.
Your car insurance cost will vary depending on several factors that include:
If you’re lucky, you’ll have very little experience with collision repairs. That also means you won’t necessarily know if you’re getting superior claims service compared to other insurers.
Collision repair professionals have the advantage of dealing with insurers daily and seeing which companies try to cut corners on claims, and which companies have processes that slow down the repair process.
For this reason we incorporated grades of insurance companies from collision repair professionals, supplied by CRASH Network.
“Drivers pay their auto insurance premiums every month, yet they only find out how well that insurer will take care of them when they file a claim—which happens about once a decade for the average driver,” says John Yoswick, editor of CRASH Network, which has a weekly newsletter covering the collision repair and auto insurance market segments.
“But auto body repair shops see every day which insurance companies prioritize cost-savings by pushing to use the cheapest parts and repair methods, and which insurers take better care of their policyholders by prioritizing repair quality and the use of automaker-recommended repair methods and parts,” he says.
CRASH Network produces an annual Insurer Report Card that gives insight into insurers’ claims processes that others don’t see. Auto body repair professionals across the country are asked, “How well does this company’s claims handling policies, attitude and payment practices ensure quality repairs and customer service for motorists?”
“This knowledge gives body shops a unique perspective on which insurance companies consistently earn an ‘A’ when it comes to customer service and a proper repair for their policyholders, and which insurers deserve a ‘C” or ‘D,” says Yoswick.
This year among 75 insurers scored by CRASH Network, only North Carolina Farm Bureau, Chubb, Erie and Michigan Farm Bureau received grades in the “A” range.
Erie sells insurance for cars, motorcycles, recreational vehicles, classic cars and boats. You can also purchase insurance for snowmobiles, RVs, ATVs and golf carts. Optional add-ons include:
For drivers who recently purchased a new car, Erie sells new car protection. With this coverage, your car will be replaced with the latest model if it’s deemed a total loss due to an accident covered by your policy. Erie also offers better car protection to replace your vehicle with a car two years newer.
Erie offers several auto insurance discounts, especially for safe drivers. If you have a driver under 21 years old on your policy, look for Erie’s discount for young drivers. If you don’t use your car for an extended amount of time, you could benefit from the reduced usage discount. Other discounts include:
USAA sells insurance for cars, motorcycles, ATVs, motorhomes, boats and classic cars. And, for those who fly to their destinations, aviation insurance. Optional coverage types include roadside assistance and rental reimbursement.
Current and former U.S. military members, and spouses and children of U.S. military members are eligible for USAA insurance.
For drivers concerned about a rate increase after an at-fault accident, USAA offers accident forgiveness insurance. If you remain accident-free for five years, your premium won’t go up after one at-fault accident.
USAA also offers rideshare coverage for drivers with Uber, Lyft and other services.
If you’ve had USAA auto insurance for a few years, you can benefit from the Length of Membership Savings. Other discounts include:
When you add auto insurance to your homeowners or renters insurance policy, you could also save up to 10%. Keep in mind, not all discounts are available in every state.
State Farm is the largest auto and home insurer in the U.S. The company sells vehicle insurance for cars, motorcycles, RVs, off-road vehicles and boats. For those who have antique and classic cars, State Farm also provides coverage for vintage vehicles.
Whether you’re a safe driver or have multiple vehicles under one policy, you might be able to save on your State Farm auto insurance rates.
Travelers sells car insurance, and boat and yacht insurance (for those who prefer traveling via water). Optional auto insurance add-ons include roadside assistance coverage and rental reimbursement coverage.
For drivers who want to protect their vehicle when it’s financed or leased, Travelers offers loan/lease gap insurance. If your vehicle is totaled, this add-on coverage can help cover the difference between the actual cash value of the car and the remaining balance of your loan or lease.
Travelers offer several discounts, especially for drivers who purchase multiple policies through the company. If you enjoy getting ahead of your bills, look for EFT, pay in full and good payers discounts. Other car insurance discounts include:
Auto-Owners sells insurance for cars, ATVs and off-road vehicles, motorcycles, trailers, and boats. For those who enjoy exploring the nation in a motorhome, Auto-Owners sells motorhome and RV coverage.
Optional add-ons include roadside assistance coverage, additional expense coverage, and lease or loan gap coverage. If you choose to purchase the Personal Automobile Plus Package from Auto-Owners, you’ll receive 10 other coverage add-ons including identity theft protection, re-keying locks and cell phone replacement.
Auto-Owners also sells diminished value coverage. With this coverage, the full value of your car is protected even if you’re in an accident and the repairs depreciate the value of the vehicle.
Auto-Owners Insurance customers may be eligible for a few additional benefits, including “collision coverage advantage.” With this benefit, your collision deductible is waived if you’re in an accident with another vehicle insured by Auto-Owners Insurance.
Auto-Owners offers several discounts, especially for students. If you have a young driver who’s in school, look for Auto-Owners discounts for good students and students away at school. If you’re passionate about saving the environment, you can benefit from the green discount. Other discounts include:
Geico sells insurance for cars, motorcycles and classic cars. For those who enjoy a little more adventure, Geico also sells insurance for RVs, ATVs and boats.
Optional coverage types for auto insurance includes emergency road service, rental reimbursement and mechanical breakdown insurance.
If you’re concerned about a rate increase after an accident, Geico offers accident forgiveness insurance which you can pay to add to your policy or earn by maintaining a clean driving record. Geico will waive the first at-fault accident caused by an eligible driver listed on your policy.
For those who drive for rideshare companies such as Uber or Lyft, Geico offers rideshare insurance. This insurance fills in the coverage gap between your personal auto insurance policy and the commercial policy offered by a ride-sharing company.
Geico also sells Mexico auto insurance if you plan to drive south of the border.
Geico offers many discounts, especially for drivers who practice safe driving habits. If you’re in the military or are part of an emergency deployment, you could receive between 15% and 25% off your policy. And, if you’re a loyal customer, you can benefit from the multi-vehicle discount or the multiple policy discount. Other auto insurance discounts include:
Nationwide sells insurance for cars, classic cars, RVs, motorcycles, ATVs, scooters, golf carts and boats. For winter enthusiasts, Nationwide sells insurance for snowmobiles.
For drivers concerned about paying a high deductible in the event of an accident, Nationwide offers a vanishing deductible. Every year you go without an accident, you can earn $100 off your deductible, up to $500 total.
Nationwide also offers accident forgiveness, which helps drivers avoid a rate increase due to an at-fault accident. While you have to pay to add this coverage to your policy, it can help offset the premium increase that typically applies after an at-fault accident.
Nationwide has two options for customers looking to reduce their car insurance bills through low mileage or good driving.
For low-mileage drivers, Nationwide offers SmartMiles, which provides the same coverage as a traditional Nationwide auto insurance policy but largely bases your premium on the actual mileage driven. Your rate consists of two components: a base rate and a variable rate (cost per mile). Since your variable rate is determined by how much you drive, your monthly rate will vary month-to-month.
Nationwide also helps customers save with its SmartRide usage-based insurance program. When you sign up you can earn up to 10%. Then, based on your driving habits, you could earn up to 40% off your auto insurance.
Nationwide offers several discounts, especially for drivers with safe driving habits. If you have a driver in high school or college, look for Nationwide’s discounts for good students.
Other discounts from Nationwide include:
Car insurance rates have been steadily rising for decades, except for a sharp dip in 2020, when auto insurance companies offered refunds and credits in order to provide financial relief for customers dealing with pandemic-related income drops and to account for the deep reduction in driving.
Over the years, spiking medical costs and increasingly expensive car repairs have conspired to continually push up what we pay for car insurance. But for the most part, consumers think that auto insurance rates are fair or have no strong feelings about them. A new survey by YouGov for Forbes Advisor found that 48% of adult Americans think that car insurance rates are “fair” or “very fair.” Another 18% are on the fence, judging rates to be neither fair or unfair.
Of the 31% who judge car insurance rates to be “unfair” or “very unfair,” half (50%) nonetheless took no action in the last 12 months to seek a solution. About one-third say they at least got an insurance quote from a different company, and 11% switched companies. A notable portion (12%) say they reduced their overall auto insurance coverage in the last 12 months.
While almost half of Americans think car insurance rates are fair, a closer look under the hood reveals that “fairness” quickly drops when people are asked about specific pricing factors that are commonly used in setting car insurance rates.
For example, 69% of survey respondents didn’t think that a driver’s credit score should be used in auto insurance rates, yet many insurers put significant weight on credit-based insurance scores when setting prices.
Insurers say they can correlate poor credit with the chances that a person will make auto insurance claims. Although insurance rates are regulated by each state’s department of insurance, states generally allow pricing factors like credit when insurers can show a connection to higher claims. Only California, Hawaii, Massachusetts and Michigan ban the use of credit in auto insurance rates.
When Washington state’s insurance commissioner put a ban on the use of credit for insurance rates earlier this year he was immediately hit with pushback from the insurance industry and a lawsuit. But the ban on credit ultimately prevailed, taking effect June 20.
Because the use and extent of credit in rates can vary considerably among insurers, a driver with poor credit could especially benefit from shopping around.
Company | Average rate increase nationally due to poor credit | |
---|---|---|
Allstate | 56% | |
Farmers | 64% | |
Geico | 43% | |
Progressive | 67% | |
State Farm | 174% | |
Many auto insurance companies give education-related discounts, rewarding drivers who have achieved a bachelor’s or master’s degree or Ph.D. But 67% of survey respondents don’t agree that education level should be a factor in car insurance rates.
Still, 21% supported the idea. Insurers might include education level in rates when they’ve drawn a connection between an advanced degree and lower claims.
While using credit or education level in auto insurance pricing was contentious, the use of occupation wasn’t as controversial: 44% didn’t believe a driver’s occupation should affect rates, but 36% thought it was OK.
Like other pricing factors that aren’t about actual driving, some insurers give discounts for certain occupations. For example, lawyers, doctors and educators may be able to score lower rates.
Usage-based auto insurance, which utilizes actual driving data in rates, could reduce reliance on non-driving price factors such as education. Using telematics, these insurance programs monitor and score actual driving such as speeding, braking and cornering.
About half (51%) of survey respondents said they’d be “very comfortable” or “somewhat comfortable” with having their driving closely monitored if it could lead to lower car insurance rates. A smaller portion (44%) had reluctance, expressing discomfort with such oversight.
So while auto insurance companies seek more precise ways to price individual “risk,” drivers may find fewer and fewer options that don’t use highly personalized measurements.
YouGov polled 2,000 U.S. adults. The survey was conducted on June 24, 2021. The survey was carried out through YouGov Direct. Data is weighted by age, gender, education level, political affiliation, and ethnicity. Results are nationally representative of adults in the United States. The margin of error is 3.0%.
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 and drivers with poor credit.
Collision repair score (25% of score): We used data provided by CRASH Network, a weekly newsletter covering the collision repair and auto insurance market segments. CRASH Network’s 2021 Insurer Report Card used grades from 1,101 collision repair professionals to gauge auto insurers on the quality of their collision claims service. Auto body shop professionals have an insider view of each company’s approach to repairs and say the better insurers don’t apply pressure to cut costs or install lower-quality repair parts. Better insurers also have processes that help speed up repair and claims processes.
Complaints (25% 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 the companies that operate in their states. Most auto insurance complaints center on claims, including unsatisfactory settlements, delays and denials.
Most states (except New Hampshire and Virginia) require liability auto insurance, to pay for damage and injuries you cause to others.
Many states also require uninsured motorist coverage. This does not pay out to other motorists. It pays for medical bills to you and your passengers if you’re hit by someone who doesn’t have auto insurance—or not enough.
And states that have a no-fault insurance system require that car owners buy personal injury protection (PIP). PIP pays your medical bills no matter who caused the accident.
The main key in 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, based on your personal factors.
Another strategy is to bundle your auto insurance with another policy, such as homeowners or renters. Buying more than one policy from the same company typically results in a decent discount.
Discounts on vehicle safety equipment, such as air bags, are easy to get. Make sure to get a bundling discount by buying from the same company if you need more than one type of insurance policy.
Good driver car insurance discounts are common. If you have a teen or young adult driver, you may be able to get a good student discount. And you may be able to get a small discount for things you would do anyway, like going paperless by receiving insurance bills and policies electronically.
I’m the Insurance Analyst for Forbes Advisor. I’ve been writing about insurance for consumers for more than 20 years. Insurance intersects with many parts of our lives, yet it’s tough to untangle, and wrong choices can make a financial mess. I’m here to help you make sense of it. I’m especially interested in how data is affecting the price you pay for all insurance types.