Best Car Insurance Companies for 2023

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.

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.

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.

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.

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.

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.

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

• Geico
• Nationwide
• State Farm
• The Hartford
• USAA
• Erie Auto Insurance

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

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

• USAA
• Armed Forces Insurance
• Esurance
• Geico

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

• Allstate
• Progressive
• Liberty Mutual
• State Farm
• Geico

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.