Please ensure Javascript is enabled for purposes of website accessibility

This device is too small

If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.

Skip to main content

Best Car Insurance Companies for 2023

Updated Nov. 25, 2022
Christy Bieber
By: Christy Bieber

Our Insurance Expert

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

When it comes to car insurance, drivers need comprehensive protection at an affordable price. And with so many insurance companies to choose from, finding the best car insurance coverage can take time.

The Ascent can help. We've researched auto insurance companies, compared prices from insurers nationwide, reviewed customer experiences, and performed in-depth research into dozens of different insurers. With a focus on price, claims handling, and customer service, we've chosen the best types of insurance for drivers in different circumstances.

Drivers from all walks of life -- from typical motorists to high-risk drivers; teens to veterans -- can find recommendations for the best car insurance companies to meet their needs.

State Farm

Logo for State Farm
Best for bundling coverageState Farm
Rating image, 5.00 out of 5 stars.
5.00 stars
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Get a Quote

Bottom Line

State Farm offers multiple opportunities for discounts, including for bundling coverage. But the best savings comes from the different programs it offers for young drivers including Steer Clear as well as a good student discount. With comprehensive coverage options and low premiums, parents and teens can rest assured they're protected in case of an accident.

Pros

  • Young adult drivers can save up to 15% on coverage
  • Discounts for good grades can provide another 25% savings for young drivers
  • High customer satisfaction rankings
  • Nationwide agent network
  • Access to array of insurances under one roof

Cons

  • A low credit score can increase premiums
  • Agent quality within its network can be inconsistent

Stand-Out Coverage Options

  • Steer Clear program offers discounts for policyholders under the age of 25
  • Optional car rental and travel expense coverage pays not just for a rental vehicle but also travel expenses to the driver's home or destination if an accident happens 50 or more miles home
  • Rideshare insurance is available

Auto-Owners

Logo for Auto-Owners
Best for bundling policiesAuto-Owners
Rating image, 4.50 out of 5 stars.
4.50 stars
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor

Bottom Line

Auto-Owners insurance offers more coverage than its name implies, but it does shine for its auto coverage, among other policy types including homeowners or renters insurance, life insurance, and business insurance. People can buy all the insurance they need from one company while earning generous premium discounts for bundled coverage. Additional discounts for those who pay in full annually or who make at least 36 months of on-time premium payments can provide even more savings for the budget-conscious buyer.

Pros

  • Bundled coverage discounts
  • High customer satisfaction
  • Roadside assistance coverage available in the U.S. and Canada

Cons

  • Policies are only available in 26 states
  • Policy must be purchased through an independent agent

Stand-Out Coverage Options

  • Gap insurance to pay off a remaining loan or lease balance if the car is totaled
  • Additional expense coverage, which pays for rental cars, food, lodging, and other incidental expenses in case of an accident far from home
  • Personal Automobile Plus package which groups 10 popular additional coverage options including cellphone replacement, lock rekeying, and more

Geico

Logo for Geico
Best for price conscious consumersGeico
Rating image, 4.50 out of 5 stars.
4.50 stars
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Get a Quote

Bottom Line

Geico is one of the most affordable insurers available, and it offers comprehensive auto insurance coverage options at premiums that beat out most competitors. Geico promises to save people 15% or more on car insurance, and assessments of policy premiums shows it lives up to its promise. Insurance is available in all 50 states, and there are additional discounts for military members, good students, federal employees, seniors, and others who belong to certain groups or organizations.

Pros

  • Nationwide coverage
  • Affordable premiums
  • High customer satisfaction
  • Efficient claims handling process
  • Great online application and account management experience

Cons

  • Limited insurance coverage beyond auto insurance
  • Fewer local agents than competitors

Stand-Out Coverage Options

  • Mechanical Breakdown Insurance, which provides coverage for repairs and is available for new or leased vehicles that are less than 15 months old and have less than 15,000 miles
  • Auto Repair Xpress® program can get motorists back on the road faster after an accident as they'll get priority repairs and streamlined claims processing
  • Rideshare insurance is available

Farm Bureau

Logo for Farm Bureau
Best for claims handlingFarm Bureau
Rating image, 4.50 out of 5 stars.
4.50 stars
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor

Bottom Line

With a claims satisfaction rate of more than 90%, Farm Bureau has proven it'll be there if something goes wrong. Farm Bureau also shines with affordable premiums and multiple ways to save, including by signing up for Driveology and earning reduced premiums by letting the insurer collect data about the motorist's driving habits. With top-notch claims handling service and replacement cost coverage for newer vehicles, policyholders have the confidence of knowing their claims will be handled swiftly and efficiently with minimal out-of-pocket losses if a crash occurs.

Pros

  • One of the highest claims satisfaction rates of any insurer
  • High overall customer satisfaction
  • Offers an array of discounts (multi-driver and savings for good students)

Cons

Stand-Out Coverage Options

  • Replacement cost coverage, which is available when a vehicle is either four or five model years old or newer (depending on the state)

USAA

Logo for USAA
Best for military members and their familiesUSAA
Rating image, 4.00 out of 5 stars.
4.00 stars
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Get a Quote

Bottom Line

USAA offers military members and their families some of the best auto insurance coverage available. Premiums are lower than most competitors, there are plentiful coverage options, and many opportunities to save further with premium discounts. Free accident forgiveness coverage after five years also means premiums won't go up if a crash happens. USAA is open only to military members, veterans, and their families. For those who qualify, it's likely their best bet for car insurance.

Pros

  • Premiums are cheaper than with most competitors
  • High customer satisfaction ratings
  • Policy discounts (for good students, for housing a car on a military base, and more)

Cons

  • No coverage available outside of current and former military members, and their families

Stand-Out Coverage Options

  • Free accident forgiveness after five years
  • Rideshare insurance is available

What is car insurance?

Car insurance is a type of insurance policy that protects against financial loss. Auto insurance pays the bills if the policyholder causes an accident. Depending what kind of coverage a person buys, it also helps pay for repairs or replacement of their own vehicle.

Here are some of the costs car insurance can cover:

  • Repairing or replacing the vehicle after a fire, theft, or other disaster
  • Medical bills if the driver is hurt in an accident
  • Lost wages if injuries from an accident stop the driver from working
  • Losses another motorist causes if they are uninsured or underinsured
  • Damage to other people's property the policyholder causes with their vehicle
  • Injuries others experience if the policyholder causes a crash
  • Rental car expenses if the vehicle is in the shop for repairs
  • Emergency roadside assistance

Motorists don't have to buy all of these types of car insurance coverage. But they should buy the best car insurance coverage to protect against losses they can't afford to pay for out of pocket.

How can I find the best price on car insurance?

To find the best car insurance rates, drivers will need to get personalized quotes from different insurers. That's because prices can vary dramatically depending on an individual motorist's circumstances.

Drivers should get multiple auto insurance quotes from at least three to five different insurers, and more if possible. There are many online websites that make it easy to get multiple quotes at once, which simplifies this process.

The fastest way to compare multiple quotes is to provide a vehicle identification number (VIN) so the car insurance company can automatically obtain important details about the vehicle.

Motorists should also be sure to look for discounts, including for safe driving or vehicle safety equipment, as well as for good grades for teens or membership in certain organizations.

How much car insurance do you need?

When selecting an auto insurance policy, drivers need to look for more than just the cheapest car insurance. They need enough coverage to ensure an accident doesn't cost thousands of dollars, which may require paying a higher monthly premium.

How much car insurance coverage a person needs depends on their situation. However, most states have certain minimum requirements. Drivers may also wish to purchase additional protection beyond the minimum coverage required under their state's auto insurance rules. Here are some different kinds of auto insurance drivers may need, or want, to buy.

Liability insurance

Liability insurance covers losses that the policyholder causes other people to experience. For example, if a driver caused a crash, injuring the victim and damaging their vehicle, liability coverage would pay for the victim's injuries and damages.

The majority of states require liability insurance coverage, both to pay for bodily injury and property damage. Under California auto insurance requirements, for example, a motorist must have:

  • $15,000 in injury liability coverage per person
  • $30,000 in injury liability coverage per accident
  • $5,000 in property damage liability coverage

Many people may want to buy more than the minimum required insurance if they want the best car insurance. If drivers don't and they cause an accident, they could be held personally liable. If a motorist gets into a collision and causes a death, they could be sued for millions of dollars. Having just $15,000 in coverage would do little to protect their assets.

Uninsured/underinsured motorist coverage

This pays for losses another driver should cover but can't because they don't have any or enough insurance. Without this, a driver who was involved in an accident with an uninsured motorist or with a driver who had no insurance could be forced to pay for medical bills and vehicle repairs out of pocket.

A few states require uninsured or underinsured motorist coverage. For example, in Connecticut, drivers must have $25,000 per person and $50,000 per accident in insured motorist coverage.

Personal injury protection (PIP)

Personal injury protection, or PIP, pays for the policyholder's medical bills and lost wages in cases of minor accidents, regardless of who is at fault for the crash.

A total of 15 states require PIP. These are called "no-fault" states. People who live in no-fault states must use their own insurance to pay for losses after minor accidents. That's true even if another driver were to blame.

New York is an example of a no-fault state. It requires drivers to buy at least $50,000 in PIP coverage when purchasing New York auto insurance.

There are also three "choice" no-fault states. There, motorists can opt to buy PIP coverage or choose a different policy often called a "full-tort" policy. A full-tort policy always allows someone to sue other drivers, even after minor collisions.

Collision insurance

Collision insurance is optional, but it is important coverage many people will want to purchase. Remember, liability insurance won't cover anything that happens to the policyholder's own car, even with the best policy. A driver could buy collision insurance to repair or replace their vehicle in the event of a crash.

Comprehensive coverage

Comprehensive coverage is also optional, but many drivers will find they need it. It pays for any losses to a vehicle that don't result from a car crash. For example, comprehensive coverage pays for windshield damage or to repair or replace a vehicle after a tree falls on it.

Getting car insurance discounts

Most insurers offer car insurance discounts that can help reduce the cost of auto insurance. Commonly available discounts include:

  • Accident-free driver discounts: These are available to drivers who have gone a certain length of time without becoming involved in a collision.
  • Discounts for driver monitoring: Motorists who agree to download an app that tracks their driving habits may be able to save.
  • Defensive driving discounts: Completing a state-approved defensive driving discount can help motorists to save.
  • Driver education discounts: Young motorists who complete driver's education can save money.
  • Driver behavior discounts: Drivers who have a clean driving history can save money, as can motorists who don't go many miles per year.
  • Good student discount: Young motorists who get good grades may be able to save. These discounts usually require at least a B average.
  • Distant student discount: This provides savings on a family's insurance policy when teen drivers are away at school.
  • Bundled coverage discount: Motorists who buy multiple types of insurance policies, such as auto and homeowners insurance, will usually qualify for discounted premiums.
  • Multi-car discounts: This savings is available for people who insure several cars with the same insurance company.
  • Continuous coverage: Drivers who maintain their insurance year after year may find they can save on premiums.
  • New-car discounts: These are available to motorists with a late model vehicle (usually one that is less than two or three years old).
  • Vehicle safety feature discounts: Airbags, anti-lock brakes, anti-theft devices, and other safety features can also result in low premiums.
  • Driver affiliation discounts: Savings are available from many insurers for motorists who are in the military, who work for certain employers, or who are members of certain groups
  • Pay-in-full discounts: It's often possible to save on insurance by paying premiums one time per year, rather than taking advantage of the option to pay quarterly or monthly.
  • Online-only discounts: Many insurers reduce costs for drivers who purchase their policy online and manage their accounts on the internet.
  • Paperless statement discounts: Drivers who sign up for paperless statements may reduce car insurance costs.

How are car insurance rates calculated?

The best car insurance companies calculate rates based on the risk of an accident. Factors that insurers consider include:

  • Which drivers are on the policy: If a motorist is buying a family policy, insurers will consider the driving record of everyone in the household.
  • Driving record: Insurers consider accident history and risk of speeding tickets.
  • Number of miles driven: A car that is driven more frequently is more likely to become involved in a crash.
  • Type of car: Vehicles more prone to accidents or theft will be more expensive to insure.
  • Vehicle safety features: If a car has features that reduce the risk of theft or the chances of a crash or serious injury, this will result in lower premiums.
  • Credit score: Drivers who have a stronger credit history will often pay less for insurance.



Best cheap auto insurance

For drivers focused primarily on getting the lowest priced premiums, here are The Ascent's picks for the best cheap car insurance.

Click here to learn more about our selections for most inexpensive car insurance.

Best insurance for veterans

The Ascent's picks for the best car insurance for military members include:

  • USAA
  • Armed Forces Insurance
  • Esurance
  • Geico

Best insurance for teens

The Ascent's picks for the best car insurance for teens include:

What to do if you can't get car insurance

Motorists must not drive without their state's required minimum insurance. Doing so could lead to criminal penalties as well as devastating financial loss if an accident occurs.

Fortunately, there are coverage options for drivers who can't buy car insurance from traditional insurers. These include:

  • State-assigned risk pools: States provide an option of last resort for drivers who can't get conventional insurance coverage. They can join the state's assigned risk pool and will be assigned to an insurance carrier that works with the state. This may also have other names, such as a Joint Underwriting Association or shared market.
  • High-risk insurers: High-risk car insurance could be the best option for motorists turned down by conventional companies. These insurers specifically work with drivers who other insurers won't cover. While they typically charge high premiums, they can often provide more coverage than a state's assigned risk pool would.

Car insurance agents can help drivers to enter the assigned risk pool or to find high-risk insurers.

A recap of the best car insurance companies

The Picks
Offer Best For Next Steps
Graphic of State Farm
State Farm
Rating image, 5.00 out of 5 stars.
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for bundling coverage
Graphic of Auto-Owners
Auto-Owners
Rating image, 4.50 out of 5 stars.
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for bundling policies
Graphic of Geico
Geico
Rating image, 4.50 out of 5 stars.
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for price conscious consumers
Graphic of Farm Bureau
Farm Bureau
Rating image, 4.50 out of 5 stars.
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for claims handling
Graphic of USAA
USAA
Rating image, 4.00 out of 5 stars.
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Great For: Best for military members and their families

FAQs

  • According to J.D. Power, the highest-ranking auto insurers and scores by 11 geographic regions are:

    • California: Wawanesa (853) (for a second consecutive year)
    • Central: Shelter (856)
    • Florida: State Farm (848)
    • Mid-Atlantic: NJM Insurance Co. (867)
    • New England: Amica Mutual (867) (for a ninth consecutive year)
    • New York: State Farm (859) (for a second consecutive year)
    • North Central: Erie Insurance (857)
    • Northwest: State Farm (844)
    • Southeast: Farm Bureau Insurance - Tennessee (883) (for a 10th consecutive year)
    • Southwest: American Family (850) (for a second consecutive year)
    • Texas: Texas Farm Bureau (850) (for a 10th consecutive year)
  • With close to 6,000 car insurance companies in the U.S., it can be daunting to find the best car insurance company. It is important to first determine your car insurance needs. Then you should shop around and compare quotes from different car insurance companies. Instead of only looking at the cost, you should look at the value and benefits you get. Other factors to consider are customer service, mobile app experience, and reputation of the company. You should also consider third-party ratings and NAIC auto insurance ratings.

  • The best car insurance companies offer extensive coverage options with affordable rates, are financially stable with a great reputation, and have top-notch customer service. They also have a high rating in customer satisfaction and an easy-to-use claims process that is quick and efficient. Many drivers also look for a robust mobile app experience. It is important to find the best car insurance company that fits your unique needs and offers personalized customer service.

  • According to The Ascent’s expert analysis, here are the best car insurance companies for 2022:

    • State Farm: Best for bundling coverage
    • Auto-Owners: Best for bundling policies
    • Geico: Best for price-conscious consumers
    • Farm Bureau: Best for claims handling
    • USAA: Best for military members and their families
  • Car insurance is required in almost all states. Drivers must purchase a mandatory minimum and maintain a certain level of insurance based on their states’ laws. Some states don’t require car insurance if drivers are able to show evidence of financial responsibility, such as a surety bond, cash deposit with the state, or a certificate of self insurance.

Our Insurance Expert