Top Auto Insurance Providers in 2023
State Farm, Geico, and Progressive are the top auto insurance providers by market share, but the best auto insurance company for you will depend on your age, gender, and ZIP code.
Free Auto Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
|
Written by
Daniel Walker |
|
Reviewed by
Daniel Walker
|
UPDATED: Jan 31, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jan 31, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
When it comes to selecting the right auto insurance provider, cheap rates are only one factor that should be taken into consideration. You need reliable coverage at an affordable cost from a company you can trust.
But which providers offer the best auto insurance deals? Statistically, 10 auto insurance companies control 72% of the U.S. auto insurance market. Four of these companies hold 51%.
To help you find the best auto insurance rates, we’ve gathered all the research and put it together in this comprehensive guide. We’ll take a look at auto insurance rates, financial stability, and the customer service reputations of some of these top insurers so you can choose the one that’s right for you.
The best way to compare car insurance prices is by getting quotes from the top auto insurance companies. To get started, just enter your ZIP code to compare different car insurance quotes near you.
What are the top auto insurance companies this year?
Regarding auto insurance, four companies—Allstate, Geico, Progressive, and State Farm—have dominated the industry for over a decade. In 2004, these four companies held 41% of the market share in auto insurance.
However, by 2018 this number had risen to over half. This was due to their fierce competition with other top 10 companies and their success in gaining more market share.
From 2013-2018, we can see that although State Farm continued to have the highest total direct premiums written, Geico and Progressive had closed the gap in terms of market share compared to Allstate, which only experienced a slight decrease.
You should consider these differences to determine which company will best fit you. For example, Allstate works solely with agents, whereas Geico deals directly with customers through internet-based policies and partnering with investors.
Progressive offers both agent-based and internet-based policies, and State Farm is a mutual company owned by its customers who share risks and rewards jointly. Ultimately, your individual needs will determine which auto insurance company is best for you.
Compare Insurance Providers Rates to Save Up to 75%
Secured with SHA-256 Encryption
Top Auto Insurance Providers With the Lowest Rates
Are you looking for the best auto insurance companies with the lowest rates?
If so, here are the top 10 auto insurance companies in the United States:
- State Farm
- Geico
- Progressive
- Allstate
- USAA
- Liberty Mutual
- Farmers Insurance
- Nationwide
- Travelers
- American Family
Most of these providers are available across the country, with Geico, State Farm, and USAA offering the lowest average rates in all 50 states. However, USAA is only available to military members and their immediate families. Read our USAA auto insurance review to learn more about the company.
Which insurance companies offer the best auto insurance rates?
Here’s a comparison of the top 10 U.S. auto insurers and their average monthly rates, compared to the national average for each company.
| Companies | Monthly Liability-Only Coverage Auto Insurance Rates | Monthly Full Coverage Auto Insurance Rates |
|---|---|---|
| Allstate | $162 | $318 |
| American Family | $114 | $224 |
| Farmers | $147 | $288 |
| Geico | $91 | $179 |
| Liberty Mutual | $203 | $398 |
| Nationwide | $117 | $229 |
| Progressive | $144 | $283 |
| State Farm | $120 | $235 |
| Travelers | $147 | $287 |
| USAA | $82 | $161 |
| National Average | $133 | $260 |
Geico and State Farm have the lowest rates nationally. However, depending on where you live, they may not necessarily offer the best option. Read on to learn more about what each company offers.
What factors impact your auto insurance rates?
The cost of your car insurance is based on a range of factors. Your age, gender, location, and driving history can contribute to how much you pay for coverage. Insurance companies also take into account what type of car you drive, as well as its value and safety features.
If you’re wondering why your auto insurance is so high, realize that your driving record has a major impact on the rate you pay for car insurance. Moving violations such as speeding tickets can cause your premiums to increase over time.
You’ll likely enjoy lower rates than those who have had road problems if you have a clean record with no traffic violations or at-fault accidents,
Your age is another factor that affects your auto insurance costs. Generally speaking, younger drivers tend to pay more because they are considered a greater risk to insurers. In addition, new drivers often need more experience behind the wheel and may be more likely to get into an accident. Read our guide on how age affects auto insurance rates.
Finally, where you live also affects your car insurance rates. In some cities, cars are stolen more frequently, or vandalism is more common, resulting in higher rates for everyone who lives there. Even if your driving record is spotless, living in one of these areas can cause your premiums to increase significantly.
In summary, many factors play a role in determining car insurance rates. That’s why comparing rates from various insurers is important to ensure you’re getting the best deal possible.
What are the top auto insurance providers known for?
What are the 10 best auto insurance companies known for? The answer depends on your individual needs, but here is a quick list of some of the most popular and well-known companies and their specialties:
- Geico: Low rates for young drivers
- Allstate: Comprehensive coverage and accident forgiveness
- Progressive: Affordable premiums with flexible payment options
- State Farm: Discounts on multiple policies
- USAA: Great customer service and competitive prices for military members and their families
- Liberty Mutual: Offers a wide variety of riders and discounts
- American Family: Award-winning claims processing time
- Nationwide: Customizable coverage plans to fit your budget
- Travelers: Good financial ratings from major credit bureaus
- Farmers Insurance: Variety of customizable packages for drivers with different needs
When choosing an auto insurance company, you may be tempted to pick one of the top 10 providers. However, each company has its own way of calculating rates. This is done so that each insurer can remain competitive and relevant in the market by finding its niche.
For instance, some companies are more likely to target millennials, while others focus on senior drivers. And if you’re under the age of 25, for example, it’s wise to get Geico insurance quotes since it offers lower rates for young drivers.
Be aware that location, credit score, and driving history are three more influential factors in determining car insurance rates. So, consider all of your local options before making a final decision.
What is the best auto insurance provider for drivers with poor credit?
If you have poor credit, Geico and Nationwide may be your best option when it comes to car insurance. To help you decide which company is right for you, we’ve gathered car insurance rates by credit score from the top 10 companies:
Average Monthly Credit-Based Auto Insurance Rates by Company
| Companies | Monthly Rates Based on Good Credit | Monthly Rates Based on Fair Credit | Monthly Rates Based on Bad Credit |
|---|---|---|---|
| USAA | $152 | $185 | $308 |
| State Farm | $181 | $238 | $413 |
| Geico | $203 | $249 | $355 |
| American Family | $224 | $264 | $372 |
| Nationwide | $244 | $271 | $340 |
| Progressive | $302 | $330 | $395 |
| Farmers | $306 | $325 | $405 |
| Allstate | $322 | $382 | $541 |
| Travelers | $338 | $362 | $430 |
| Liberty Mutual | $366 | $467 | $734 |
Take a closer look at each company and consider which has the lowest rates and what value it offers based on additional discounts, insurance programs, and policy options.
What are the best auto providers by region?
When it comes to shopping for the best car insurance rates, the best auto insurance companies vary from region to region.
According to J.D. Power, State Farm and USAA have the highest customer satisfaction in most parts of the country. However, regional insurers like Erie are preferred in the Central U.S. Learn more in our Erie auto insurance review.
Car insurance rates will also vary by region, which could influence which company you choose. For instance, moving to the Northeast reveals annual car insurance costs that differ by over $550 per month, depending on ZIP code and provider.
Drivers in the Southeast may see a difference of up to $1,000 between the highest and lowest rates, while the Southwest offers an even smaller playing field of four states with monthly rates between $174-$350 from most companies.
Shopping around for the best insurance rates is important no matter where you live. You should compare quotes from multiple car insurance companies to get the most bang for your buck. This will ensure you get the coverage and prices that best suit your needs.
What are the top auto insurance providers by state?
The state you live in greatly impacts your auto insurance rates because each state’s laws are different and can vary significantly regarding issues such as fault-based or no-fault-based insurance systems.
Compare rates from the top 10 providers by state below:
| State | Average by State | State Farm | Allstate | American Family | Farmers | Geico | Liberty Mutual | Nationwide | Progressive | Travelers | USAA |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Alabama | $3,566.96 | $4,798.15 | $3,311.52 | Data Not Available | $4,185.80 | $2,866.60 | $4,005.48 | $2,662.66 | $4,450.52 | $3,697.80 | $2,124.09 |
| Alaska | $3,421.51 | $2,228.12 | $3,145.31 | $4,153.07 | Data Not Available | $2,879.96 | $5,295.55 | Data Not Available | $3,062.85 | Data Not Available | $2,454.21 |
| Arizona | $3,770.97 | $4,756.25 | $4,904.10 | Data Not Available | $5,000.08 | $2,264.71 | Data Not Available | $3,496.08 | $3,577.50 | $3,084.74 | $3,084.29 |
| Arkansas | $4,124.98 | $2,789.03 | $5,150.03 | Data Not Available | $4,257.87 | $3,484.63 | Data Not Available | $3,861.79 | $5,312.09 | $5,973.33 | $2,171.06 |
| California | $3,688.93 | $4,202.28 | $4,532.96 | Data Not Available | $4,998.78 | $2,885.65 | $3,034.42 | $4,653.19 | $2,849.67 | $3,349.54 | $2,693.87 |
| Colorado | $3,876.39 | $3,270.77 | $5,537.17 | $3,733.02 | $5,290.24 | $3,091.69 | $2,797.74 | $3,739.47 | $4,231.92 | Data Not Available | $3,338.87 |
| Connecticut | $4,618.92 | $2,976.24 | $5,831.60 | Data Not Available | Data Not Available | $3,073.66 | $7,282.87 | $3,672.34 | $4,920.35 | $6,004.29 | $3,190.00 |
| Delaware | $5,986.32 | $4,466.85 | $6,316.06 | Data Not Available | Data Not Available | $3,727.29 | $18,360.02 | $4,330.21 | $4,181.83 | $4,182.36 | $2,325.98 |
| District of Columbia | $4,439.24 | $4,074.05 | $6,468.92 | Data Not Available | Data Not Available | $3,692.81 | Data Not Available | $4,848.98 | $4,970.26 | Data Not Available | $2,580.44 |
| Florida | $4,680.46 | $3,397.67 | $7,440.46 | Data Not Available | Data Not Available | $3,783.63 | $5,368.15 | $4,339.60 | $5,583.30 | Data Not Available | $2,850.41 |
| Georgia | $4,966.83 | $3,384.88 | $4,210.70 | Data Not Available | Data Not Available | $2,977.20 | $10,053.44 | $6,484.90 | $4,499.22 | Data Not Available | $3,157.46 |
| Hawaii | $2,555.64 | $1,040.28 | $2,173.49 | Data Not Available | $4,763.82 | $3,358.86 | $3,189.55 | $2,551.83 | $2,177.93 | Data Not Available | $1,189.35 |
| Idaho | $2,979.09 | $1,867.96 | $4,088.76 | $3,728.79 | $3,168.28 | $2,770.68 | $2,301.51 | $3,032.19 | Data Not Available | $3,226.29 | $1,877.61 |
| Illinois | $3,305.48 | $2,344.88 | $5,204.41 | $3,815.31 | $4,605.20 | $2,779.16 | $2,277.65 | $2,711.81 | $3,536.65 | $2,499.76 | $2,770.21 |
| Indiana | $3,414.97 | $2,408.94 | $3,978.81 | $3,679.68 | $3,437.55 | $2,261.07 | $5,781.35 | Data Not Available | $3,898.00 | $3,393.75 | $1,630.86 |
| Iowa | $2,981.28 | $2,224.51 | $2,965.86 | $3,021.81 | $2,435.72 | $2,296.16 | $4,415.28 | $2,735.44 | $2,395.50 | $5,429.38 | $1,852.57 |
| Kansas | $3,279.62 | $2,720.00 | $4,010.23 | $2,146.40 | $3,703.77 | $3,220.65 | $4,784.42 | $2,475.59 | $4,144.38 | $4,341.43 | $2,382.61 |
| Kentucky | $5,195.40 | $3,354.32 | $7,143.92 | Data Not Available | Data Not Available | $4,633.59 | $5,930.97 | $5,503.23 | $5,547.63 | $6,551.68 | $2,897.89 |
| Louisiana | $5,711.34 | $4,579.12 | $5,998.79 | Data Not Available | Data Not Available | $6,154.60 | Data Not Available | Data Not Available | $7,471.10 | Data Not Available | $4,353.12 |
| Maine | $2,953.28 | $2,198.68 | $3,675.59 | Data Not Available | $2,770.15 | $2,823.05 | $4,331.39 | Data Not Available | $3,643.59 | $2,252.97 | $1,930.79 |
| Maryland | $4,582.70 | $3,960.87 | $5,233.17 | Data Not Available | Data Not Available | $3,832.63 | $9,297.55 | $2,915.69 | $4,094.86 | Data Not Available | $2,744.14 |
| Massachusetts | $2,678.85 | $1,361.86 | $2,708.53 | Data Not Available | Data Not Available | $1,510.17 | $4,339.35 | Data Not Available | $3,835.11 | $3,537.94 | $1,458.99 |
| Michigan | $10,498.64 | $12,565.52 | $22,902.59 | Data Not Available | $8,503.60 | $6,430.11 | $20,000.04 | $6,327.38 | $5,364.55 | $8,773.97 | $3,620.00 |
| Minnesota | $4,403.25 | $2,066.99 | $4,532.01 | $3,521.29 | $3,137.45 | $3,498.54 | $13,563.61 | $2,926.49 | Data Not Available | Data Not Available | $2,861.60 |
| Mississippi | $3,664.57 | $2,980.48 | $4,942.11 | Data Not Available | Data Not Available | $4,087.21 | $4,455.94 | $2,756.53 | $4,308.85 | $3,729.32 | $2,056.13 |
| Missouri | $3,328.93 | $2,692.91 | $4,096.15 | $3,286.90 | $4,312.19 | $2,885.33 | $4,518.67 | $2,265.35 | $3,419.14 | Data Not Available | $2,525.78 |
| Montana | $3,220.84 | $2,417.74 | $4,672.10 | Data Not Available | $3,907.55 | $3,602.35 | $1,326.11 | $3,478.26 | $4,330.76 | Data Not Available | $2,031.89 |
| Nebraska | $3,283.68 | $2,438.71 | $3,198.83 | $2,215.13 | $3,997.29 | $3,837.49 | $6,241.52 | $2,603.94 | $3,758.01 | Data Not Available | $2,330.78 |
| Nevada | $4,861.70 | $5,796.34 | $5,371.62 | $5,441.18 | $5,595.56 | $3,662.09 | $6,201.55 | $3,477.14 | $4,062.57 | $5,360.41 | $3,069.07 |
| New Hampshire | $3,151.77 | $2,185.46 | $2,725.01 | Data Not Available | Data Not Available | $1,615.02 | $8,444.41 | $2,491.10 | $2,694.45 | Data Not Available | $1,906.96 |
| New Jersey | $5,515.21 | $7,527.16 | $5,713.58 | Data Not Available | $7,617.00 | $2,754.94 | $6,766.62 | Data Not Available | $3,972.72 | $4,254.49 | Data Not Available |
| New Mexico | $3,463.64 | $2,340.66 | $4,200.65 | Data Not Available | $4,315.53 | $4,458.30 | Data Not Available | $3,514.38 | $3,119.18 | Data Not Available | $2,296.77 |
| New York | $4,289.88 | $4,484.58 | $4,740.97 | Data Not Available | Data Not Available | $2,428.24 | $6,540.73 | $4,012.93 | $3,771.15 | $4,578.79 | $3,761.69 |
| North Carolina | $3,393.11 | $3,078.65 | $7,190.43 | Data Not Available | Data Not Available | $2,936.69 | $2,182.71 | $2,848.03 | $2,382.61 | $3,132.66 | Data Not Available |
| North Dakota | $4,165.84 | $2,560.53 | $4,669.31 | $3,812.40 | $3,092.49 | $2,668.24 | $12,852.83 | $2,560.35 | $3,623.06 | Data Not Available | $2,006.80 |
| Ohio | $2,709.71 | $2,507.88 | $3,197.22 | $1,515.17 | $3,423.01 | $1,867.19 | $4,429.74 | $3,300.89 | $3,436.96 | $3,135.16 | $1,478.46 |
| Oklahoma | $4,142.33 | $2,816.80 | $3,718.62 | Data Not Available | $4,142.40 | $3,437.34 | $6,874.62 | Data Not Available | $4,832.35 | Data Not Available | $3,174.15 |
| Oregon | $3,467.77 | $2,731.48 | $4,765.95 | $3,527.28 | $3,753.52 | $3,220.12 | $4,334.55 | $3,176.83 | $3,629.13 | $2,892.19 | $2,587.15 |
| Pennsylvania | $4,034.50 | $2,744.23 | $3,984.12 | Data Not Available | Data Not Available | $2,605.22 | $6,055.20 | $2,800.37 | $4,451.00 | $7,842.47 | $1,793.37 |
| Rhode Island | $5,003.36 | $2,406.51 | $4,959.45 | Data Not Available | Data Not Available | $5,602.63 | $6,184.12 | $4,409.63 | $5,231.09 | $6,909.45 | $4,323.98 |
| South Carolina | $3,781.14 | $3,071.34 | $3,903.43 | Data Not Available | $4,691.85 | $3,178.01 | Data Not Available | $3,625.49 | $4,573.08 | Data Not Available | $3,424.77 |
| South Dakota | $3,982.27 | $2,306.23 | $4,723.72 | $4,047.47 | $3,768.80 | $2,940.29 | $7,515.99 | $2,737.66 | $3,752.81 | Data Not Available | Data Not Available |
| Tennessee | $3,660.89 | $2,639.30 | $4,828.85 | Data Not Available | $3,430.07 | $3,283.42 | $6,206.69 | $3,424.96 | $3,656.91 | $2,738.52 | $2,739.28 |
| Texas | $4,043.28 | $2,879.94 | $5,485.44 | $4,848.72 | Data Not Available | $3,263.28 | Data Not Available | $3,867.55 | $4,664.69 | Data Not Available | $2,487.89 |
| Utah | $3,611.89 | $4,645.83 | $3,566.42 | $3,698.77 | $3,907.99 | $2,965.57 | $4,327.76 | $2,986.57 | $3,830.10 | Data Not Available | $2,491.10 |
| Vermont | $3,234.13 | $4,382.84 | $3,190.38 | Data Not Available | Data Not Available | $2,195.71 | $3,621.08 | $2,128.21 | $5,217.14 | Data Not Available | $1,903.55 |
| Virginia | $2,357.87 | $2,268.95 | $3,386.80 | Data Not Available | Data Not Available | $2,061.53 | Data Not Available | $2,073.00 | $2,498.58 | Data Not Available | $1,858.38 |
| Washington | $3,059.32 | $2,499.78 | $3,540.52 | $3,713.02 | $2,962.00 | $2,568.65 | $3,994.73 | $2,129.84 | $3,209.52 | Data Not Available | $2,262.16 |
| West Virginia | $2,595.36 | $2,126.32 | $3,820.68 | Data Not Available | Data Not Available | $2,120.80 | $2,924.39 | Data Not Available | Data Not Available | Data Not Available | $1,984.62 |
| Wisconsin | $3,606.06 | $2,387.53 | $4,854.41 | $1,513.27 | $3,777.49 | $3,926.20 | $6,758.85 | $5,224.99 | $3,128.91 | Data Not Available | $2,975.74 |
| Wyoming | $3,200.08 | $2,303.55 | $4,373.93 | Data Not Available | $3,069.35 | $3,496.56 | $1,989.36 | $3,187.20 | $4,401.17 | Data Not Available | $2,779.53 |
No-fault states require policyholders to turn to their insurer when involved in an accident, regardless of the responsible party. Additionally, most no-fault states require personal injury protection (PIP) insurance coverage, while this type of coverage is optional or not available at all in at-fault states.
For example, Michigan, New Jersey, and Florida are all no-fault states and require drivers to buy a certain amount of PIP insurance, which leads to higher insurance rates.
Florida offers several options, with the minimum coverage set at $10,000, while New Jersey’s PIP coverage can be as high as $250,000. Meanwhile, until recently, Michigan required policyholders to pay an unlimited amount of PIP coverage.
In comparison, Louisiana is an at-fault state with laws allowing drivers to sue insurance companies if their policyholder does not have enough coverage for damages and injuries caused by an accident.
Conversely, at-fault states require that claims be filed through the insurance company of the driver who caused the accident.
What are the best auto insurance providers by gender?
When obtaining an auto insurance quote, some states require drivers to specify a non-binary gender category.
To help you understand the average annual rates from the top 10 providers, we have created the following table, which displays the difference between male and female drivers by age.
| Companies | 18-Year-Old Female | 18-Year-Old Male | 30-Year-Old Female | 30-Year-Old Male | 65-Year-Old Female | 65-Year-Old Male |
|---|---|---|---|---|---|---|
| Allstate | $448.45 | $518.62 | $168.42 | $176.48 | 158.33 | 156.53 |
| Farmers | $597.48 | $628.61 | $160.08 | $167.16 | 136.18 | 135.62 |
| Geico | $219.55 | $253.62 | $89.87 | $86.79 | 78.16 | 78.45 |
| Liberty Mutual | $521.90 | $625.59 | $174.23 | $199.56 | 167.43 | 170.04 |
| Nationwide | $302.66 | $387.17 | $124.10 | $136.19 | 110.55 | 112.22 |
| Progressive | $590.85 | $661.74 | $130.78 | $136.05 | 109.30 | 102.84 |
| State Farm | $229.17 | $283.98 | $93.53 | $102.85 | 84.15 | 84.15 |
| Travelers | $530.19 | $739.74 | $99.18 | $107.67 | 95.53 | 96.76 |
| USAA | $180.43 | $202.79 | $74.09 | $79.42 | 57.68 | 57.39 |
The results show that many of the largest insurance companies charge between $3 and $5 more based on gender, with Liberty Mutual having a $12 difference between 30-year-old drivers.
However, State Farm stands out as charging all genders the same amount once drivers turn 40. If you are concerned that your gender could affect your rates significantly, read our State Farm auto insurance review to find more affordable rates.
What are the top auto insurance providers for discounts?
Auto insurance companies often have many different discounts that you can take advantage of to maximize your savings. It is important to understand insurance discounts to get the best possible rate on your car insurance policy.
Many companies offer discounts based on age, driving record, vehicle type, and safety features. Others offer savings to drivers with major life changes, such as getting married or graduating from college, but you can also earn discounts for the type of car you drive and its safety features or anti-theft devices.
Some discounts may only be a few percentage points, while others could give you up to 40% in savings. The top auto insurance companies also offer their highest discounts if drivers use their usage-based programs and specially designed equipment.
For example, American Family, Nationwide, and State Farm all provide higher discounts when customers use mobile apps. In addition, Geico gives its best discount for cars with airbags installed, Liberty Mutual has vehicle recovery services, and Allstate and Progressive reward customers with good driving records.
It is wise to confirm whether any special programs, such as good driver discounts or multi-policy discounts, apply to your situation. Researching these types of discounts can help lower your auto insurance premiums.
Remember that laws and discounts are subject to change. To better understand the top insurance carriers’ discounts, read our in-depth article on the top auto insurance discounts. This should help you make an informed decision when choosing one of the leading companies in the nation.
How do you choose between major and minor auto insurance providers?
When deciding between a major or regional auto insurance company, there are a few important factors to consider. First, ask yourself how you would like to conduct your business — with an agent, broker, or directly through the company. Research which companies offer car insurance brokers.
It’s also important to evaluate each company’s financial stability and customer satisfaction ratings and complaints received.
You should also determine which company will best meet your needs while providing the best discounts and rates. Lastly, consider what is most important to you when selecting an auto insurer.
If customer service is of primary importance, then a smaller firm may be right for you. On the other hand, if policy options are more valuable than personable service, then a larger provider could be the better option.
Be aware that small companies are sometimes subsidiaries of larger firms, and some specialize in specific vehicles like classic or collectible cars. Ultimately, choose the best auto insurance company for your individual needs and preferences.
Compare Insurance Providers Rates to Save Up to 75%
Secured with SHA-256 Encryption
What should you research before buying auto insurance?
Before purchasing car insurance, it is important to research your local providers to ensure that you are buying the best coverage for your needs.
Auto Insurance Coverage Options
One of the first steps in researching car insurance is to consider what types of coverage you require, including liability, collision and comprehensive insurance, and medical payments coverage:
- Liability insurance: Pays for bodily injuries and property damage you cause an accident and is legally required in most states.
- Collision insurance: Covers damage to your vehicle due to an accident.
- Comprehensive insurance: Covers non-accident-related damages such as theft or vandalism.
- Medical payments: Covers injuries sustained by you or your passengers involved in the accident.
It is important to research the various types of coverage available when shopping for car insurance.
For example, here are some other types of basic coverages you may need:
- Underinsured Motorist Coverage (UIM): If the driver responsible for an accident does not have adequate insurance, this will provide compensation for property damage and bodily injuries incurred.
- Uninsured Motorist Coverage (UM): If you are hit by someone with no auto insurance or in a hit-and-run incident, this will cover the property damage and bodily injuries you sustain.
- Personal Injury Protection (PIP): Regardless of fault, this coverage pays for bodily injury and lost wages.
It’s important to look at the terms and conditions of each policy, including deductibles, exclusions, and limits. Additionally, it would be best to research customer service ratings for the insurers you are considering.
Know that every insurance company offers different rates and coverage options, so it pays to compare prices and determine what best suits your needs. You should look at quotes from several providers since premiums can vary greatly.
By understanding what coverage you need and researching different quotes from various insurers before purchasing a policy, you will be able to find the best car insurance for your needs.
Financial Stability
Consumers evaluate an auto insurance company’s financial stability before making their choice. Analysts usually judge this by looking at the insurer’s historical performance as well as ratings from third-party entities, such as A.M. Best.
The National Association of Insurance Commissioners (NAIC) also releases a yearly report to help consumers examine the financial stability of all auto insurers.
When considering an insurer’s financial health, three key figures are Direct Premiums Written, Market Share, and Loss Ratio:
- Direct Premiums Written: Represents the total dollar amount received in premiums without any adjustments
- Market Share: Indicates how much concentration a company holds in that line of business.
- Loss Ratio: Percent reflecting how much was paid out on claims compared to what customers paid.
Consumers can better understand an insurer’s financial stability by consulting these figures, particularly the Market Share and Loss Ratio.
Experts recommend that loss ratios should stay between 60-70 % for optimal performance. Anything below 60% indicates that the company is not paying out on claims, whereas a ratio higher than 70% would suggest the company is losing money.
For more detailed information, you can also read company reviews, which often include ratings from Moody’s and Standard & Poor’s, which take a closer look at market share.
Customer Service Reviews and Claims Satisfaction
Customers want to be sure that their claims will be handled promptly and efficiently if needed. As a result, companies that quickly settle claims tend to keep customers happy and maintain a loyal customer base.
J.D. Power evaluates company customer service and claim satisfaction by assigning “Power Circle Ratings” after assessing the highest and lowest scores per survey item.
A company can receive one or more circles from J.D. Power, but only ratings of two circles or higher are publicly announced and published. The Power Circles work like a distribution curve, which puts businesses in the top 10%-20% into focus compared to those who do well but not quite as well.
Out of the top 10 providers, USAA, Allstate, Farmers, State Farm, American Family, and Geico all score higher than the national average for claims satisfaction.
The National Association of Insurance Commissioners (NAIC) also tracks official complaints against auto insurance companies. The complaints were used to calculate a complaint ratio for each company, compared to the collective national complaint ratio of 1.00.
A lower number is better than 1.00, while anything higher indicates unsatisfactory performance. It’s essential to look at all angles when researching an auto insurance provider. Reviews from Consumer Reports and the Better Business Bureau can be helpful resources for this purpose.
NAIC Market Share
The NAIC is one of the top sources of reliable insurance data and market share information. We have compiled the results from their most recent report, which details the leading companies in auto insurance.
According to the report, State Farm, Geico, and Progressive are the top three providers. These companies consistently appear among the best-rated insurers on other research lists found on the internet.
Although they may be three of the biggest names in car insurance, they may not be suitable for you.
To find out who best suits your needs and budget, input your ZIP code into our online quote tool below. That way, you can compare multiple quotes without searching a ton of data.
Top Auto Insurance Providers: The Bottom Line
Auto insurance is an important investment for every driver. It provides financial protection in case of any damages or injuries due to accidents.
Comparing quotes from multiple companies is essential when shopping around for auto insurance. This will ensure you get the best coverage and price for your situation.
When comparing quotes, pay attention to the differences among states and gender-based rates, as these can significantly affect your final premium cost.
Finally, be sure to take into account the customer service ratings and discounts offered by each provider before making a decision. Knowing which company provides the most comprehensive coverage at the lowest rate could save you significant money in the long run.
Frequently Asked Questions
What is the best auto insurance company?
The best auto insurance company depends on your individual needs. Before choosing an insurer, compare multiple quotes to ensure you get the best coverage and lowest rate available.
Does my gender affect my auto insurance rates?
In states where gender is considered a rating factor, female drivers usually receive lower rates than male drivers. However, this varies from provider to provider. Be sure to compare quotes from different companies to find the one that offers the most competitive rate for your situation.
Do I need PIP coverage?
Many no-fault states require policyholders to purchase personal injury protection (PIP) coverage. Check your state’s minimum auto insurance requirements and compare quotes from multiple providers to find the best PIP coverage for your needs.
What car insurance discounts should I look for?
Many companies offer discounts based on age, driving record, vehicle type, and safety features. Others offer savings to drivers with major life changes, such as getting married or graduating from college. You can also earn discounts for the type of car you drive and its safety features or anti-theft devices.
What types of car insurance are required?
Most states require liability insurance, which pays for bodily injuries and property damage you cause in an accident. If you lease or finance a vehicle, your lender will likely require full coverage, which includes liability, collision, and comprehensive auto insurance.
Compare Insurance Providers Rates to Save Up to 75%
Secured with SHA-256 Encryption
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
|
Written by
Daniel Walker |
|
Reviewed by
Daniel Walker
|