Insuring a vehicle can be costly, especially if you're a new driver, have speeding tickets or are insuring a luxury car. But a good policy can save you tens of thousands if you're in an accident or your car is stolen.
What's the best car insurance company? That depends on a variety of factors. Below, CNBC Select breaks down the top auto insurance providers in nine categories. (See our methodology for more information on how we chose the best car insurance companies.)
Best car insurance companies
- Best for availability: Geico
- Best for customer satisfaction: Erie
- Best for pay-per-mile coverage: Nationwide
- Best for liability-only insurance: Auto-Owners
- Best for bundling : State Farm
- Best for discounts: American Family
- Best for high-risk drivers: Progressive
- Best for affordability: Travelers
- Best for military members and veterans: USAA
Shop for the best car insurance quotes
Best for availability
Geico Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Terms apply.
Read our Geico Auto Insurance review.
Pros
- Lowest average rates
- Inclusive coverage options, including high-risk drivers
- Available nationwide
Cons
- High premiums for high-risk drivers
- Fewer branches for in-person services
- Doesn't offer gap insurance
Geico is our top pick for availability, with policies issuedin all 50 states and Washington, DC. In addition to having some of the lowest rates for both liability-only and comprehensive coverage, it offers many discounts — including for good driving, insuring multiple vehicles and bundling your Geico auto and homeowners policies.
Geico average annual premium for full coverage: $1,782
Best for customer satisfaction
Erie Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Erie Insurance offers auto insurance for many different situations and affordable premiums. Several different coverages allow you to customize your policy.
Terms apply.
Pros
- Affordable premiums
- Below-average NAIC complaint index
- High customer satisfaction scores from J.D. Power
- Quotes available online
Cons
- Only available in 12 states and Washington, D.C.
- Limited online and app capabilities
- Claim filing is not available online
Erie only offers auto insurance in 12 states and Washington D.C., but its low rates and dedication to customer service earned it a slot on our list: The Pennsylvania-based insurer came in first in J.D. Power's 2024 insurance shopping survey and nabbed the second-highest score for claims satisfaction. And Erie's Rate Lock® feature means your premiums won't increase so long as you keep your policy the same — even if you file a claim.
Erie average annual premium for full coverage: $1,703
Best for pay-per-mile coverage
Nationwide Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you.
Terms apply.
Pros
- Available in 47 states and the District of Columbia
- Lowest average premiums for full coverage
- Quotes available online
Cons
- High average premium for minimum coverage
- Not available in all states
- Lower than average scores from J.D. Power's customer satisfaction survey
Nationwide is a standout for its usage-based insurance program, SmartMiles, which can lower your premiums if you don't drive a lot. (A great option if you work from home.) It also scores highly for availability, with policies in every state except Alaska, Hawaii, Louisiana and Massachusetts.
Nationwide average annual premium for full coverage: $1,564
Best for liability-only insurance
Auto-Owners Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Auto-Owners offers affordable premiums with high customer satisfaction ratings. There are 12 different types of discounts available, as well as various other types of insurance besides auto.
Terms apply.
Pros
- Offers at-fault accident forgiveness as an add-on
- High customer satisfaction scores from J.D. Power
- Low NAIC complaint index score
Cons
- Only available in 26 states
- Quotes must be obtained through an agent
- Claims must be filed through an agent
Auto-Owners is an affordable option if you only want minimum coverage: A liability-only policy averages just $325 for 12 months, compared to the national average of $637. We also tapped Auto-Owners as one of the best insurers for young drivers and seniors. However, coverage is only available in 26 states.
Auto-Owners average annual premium for full coverage: $1,631
Best for bundling
State Farm Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
State farm is one of the largest auto insurers based on market share and has an excellent reputation for customer satisfaction. It offers 13 discounts, including ones for safe driving and young drivers.
Terms apply.
Read our State Farm Auto Insurance review.
Pros
- High customer satisfaction
- Largest car insurance company in the U.S.
- Accident forgiveness
Cons
- High volume of complaints
- Doesn’t offer gap insurance
- Premiums higher than average
State Farm is the largest provider by market share of both auto and homeowners insurance. That enables it to offer generous discounts on multiple policies: Combining State Farm auto with home, condo, renters or life insurance can save you up to 17%, according to the insurer. Plus, If you insure two or more vehicles with State Farm, you could save as much as 20%.
State Farm is also best-in-class for customer service, landing among the top carriers on the J.D. Power 2024 U.S. Insurance Shopping Study.
State Farm average annual premium for full coverage: $2,406
Best for discounts
American Family Auto Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
American Family offers affordable car insurance with more than a dozen discounts to further lower your premium. While its not available nationwide, American Family offers quotes online or through an agent, depending on your preference.
App available
Yes
Pros
- Low NAIC complaint index
- Offers gap coverage
- More than 15 total discounts available
- Ability to bundle home and auto insurance for a discount up to 23%
Cons
- Only available in 19 states
- Low customer review BBB rating
- Slightly higher prices than some car insurance competitors
American Family Insurance has 18 discounts that can lower your auto premiums, including for having a clean driving record, paying your premium in full and for volunteering in your community. Safe drivers can save up to 20% if you let the company track your driving habits, while combining American Family auto and home insurance can save you as much as 23%.
American Family average annual premium for full coverage: $1,895
Best for high-risk drivers
Progressive Auto Insurance
Cost
The best way to estimate your costs is to request a quote.
App available
Yes
Policy highlights
Progressive offers a number of lines of insurance to allow for bundling, and convenient tools to help you keep your coverage in your budget.
Terms apply.
Read our Progressive Auto Insurance review.
Pros
- Available in all 50 states
- Low rates for drivers with DUIs
- Offers non-owner car insurance and SR-22 filings
- Offers vanishing deductible as well as accident forgiveness
Cons
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rates going up
Progressive is one of our top choices for high-risk drivers, thanks to its lower-than-average rates for customers with speeding tickets, at-fault accidents and DUI convictions. The average rate for full coverage after a DUI is $2,549 according to Bankrate data compared to a national average of $4,399. Additionally, unlike some competitors, Progressive also offers SR-22 filing if you need your license reinstated.
Progressive average annual premium for full coverage: $2,021
Best for affordability
Travelers Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Travelers auto insurance policies are affordable and backed by the sixth largest company for car insurance by market share according to the NAIC. The company also offers a number of discounts to customers, including discounts for bundling, owning a hybrid or electric car, and good student discounts.
Pros
- Sixth largest auto insurer in the U.S. by market share
- Many discounts available
- Low average prices compared to other companies we reviewed
Cons
- Not all discounts available in every state
- Not available in all states
- Below average J.D. Power customer satisfaction score
Travelers combines affordability and availability — with policies in 42 states and Washington, D.C., and full coverage averaging 30% less than the national average. Rates for drivers with poor credit are also 30% below average.
You can take advantage of several uncommon discounts, including for homeowners, new cars and electric vehicles. Travelers also received the highest rating for financial strength from A.M. Best, a good indicator of its ability to pay out claims.
Travelers average annual premium for full coverage: $1,565
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Best for military members and veterans
USAA Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
USAA's auto insurance is available in all 50 states, Washington D.C. and some international locations. In addition to low rates and coverage options for unique circumstances, such as for active-duty members, customers have access to an intuitive mobile app.
Terms apply.
Pros
- Cheapest insurer for liability-only coverage
- Stellar customer satisfaction
- Track record of financial strength
- Available in all 50 states
Cons
- Limited to military families and veterans
- No brick-and-mortar insurance agencies
- Customer service is not available 24/7
- Safe-driver discount not available in every state
USAA only offers policies to military families and veterans, which means it's highly focused on their needs. There are discounts if you store your vehicle on-base or you're deployed and not driving. And availability in all 50 states means you won't have to shop for a new provider if your home base changes.
In addition to some of the lowest rates on the market for both comprehensive and liability-only policies, USAA enjoys high scores from J.D Power for insurance shopping and claims satisfaction.
USAA average annual premium for full coverage: $1,709
More on our top car insurance companies
Geico
Geico has been in business since 1936 and has since grown to become a major player in the auto insurance space. With affordable premiums and widespread availability, it's easy to see why.
NAIC complaint index (1 is average)
0.9, below average
J.D. Power rating
816 out of 1,000
A.M. Best rating
A++
Learn more: Geico car insurance review
Erie
Erie isn't available nationwide, but if you live in one of the 12 states where it's available, it's a great choice, thanks to a combination of reasonable rates and top-of-the-line customer service.
NAIC complaint index (1 is average)
0.81, below average
J.D. Power rating
855 out of 1,000
A.M. Best rating
A+
State Farm
State Farm is available in all states except Massachusetts and Rhode Island and it offers a wide range of insurance products, so look into bundling policies to save money.
NAIC complaint index (1 is average)
1.09, above average
J.D. Power rating
834 out of 1,000
A.M. Best rating
A++
Learn more: State Farm car insurance review
Nationwide
Nationwide is great for customization, with add-ons like roadside assistance, accident forgiveness and a vanishing deductible. It also offers many other types of insurance you can bundle with your policy to save money.
NAIC complaint index (1 is average)
0.83, below average
J.D. Power rating
808 out of 1,000
A.M. Best rating
A
Auto-Owners
Auto-Owners boasts lower premiums than much of the competition and has 12 policy discounts, including three specifically for students. The Michigan-based company also offers specialty coverages for classic cars and vehicles modified for accessibility.
NAIC complaint index (1 is average)
0.91, below average
J.D. Power rating
813 out of 1,000
A.M. Best rating
A++
American Family
American Family has been helping people stay on the road since 1927. While its auto insurance isn't offered nationwide, the vast array of discounts makes it a strong option where it's available.
NAIC complaint index (1 is average)
0.35, below average
J.D. Power rating
828 out of 1,000
A.M. Best rating
A
Progressive
Progressive is one of the nation's largest auto insurance providers, offering policies in all 50 states. It has standout features like gap insurance, three different kinds of accident forgiveness and veterinary expense coverage, which pays vet bills if your pet is injured in a covered accident.
NAIC complaint index (1 is average)
0.06, below average
J.D. Power rating
811 out of 1,000
A.M. Best rating
A+
Learn more: Progressive car insurance review
USAA
Founded more than a century ago by Army officers looking to insure their vehicles, USAA is a terrific option for service members and their families. It's a winner with rates, customer service and discounts. In fact, drivers under 25 with clean records can get 10% off if they take over their parent's USAA policy as the sole policyholder.
NAIC complaint index (1 is average)
1.35, above average
J.D. Power rating
878 out of 1,000
A.M. Best rating
A++
Learn more: USAA car insurance review
How car insurance works
Car insurance covers damage, theft and bodily injury in the event of a collision or other accident. You pay a monthly (or bi-annual) premium based on the coverage and policy type you've selected. If you need coverage, you file a claim and your insurance company will pay out damages based on various criteria.
Filing claims can lead to higher premiums, so do it cautiously. Car insurance companies offer lower premiums to drivers with clean records, as they're less likely to file claims.
The different types of car insurance coverage
Car insurance has five main types of car insurance coverage you can incorporate into your policy. Each one offers varying degrees of protection in case of a loss. At a minimum, you will need liability coverage, which protects against damage and bodily injury. Depending on the level of protection you're looking for, you might want to add additional coverage to your policy. Here's a look at some of those options:
- Liability coverage: Basic coverage that is mandatory in most states. There are two types of liability coverage, protecting a policyholder against personal injuries (bodily injury liability) and property damage (property damage liability).
- Collision coverage: Covers repairs stemming from a collision with an object rather than another vehicle.
- Comprehensive coverage: Protects your vehicle in case of damage caused by non-vehicular collision. Covered events include theft, weather-related damage and vandalism.
- Personal injury protection: Pays your medical expenses and lost income from an accident.
- Uninsured motorist coverage: Covers your vehicle against hit-and-run accidents.
Average cost of car insurance
The cost of car insurance varies considerably depending on where you live. Rates are typically higher in no-fault states like New York and Michigan, for example. Below are the average car insurance rates by state.
| State | Average annual cost for full coverage | Average annual cost for minimum coverage |
|---|---|---|
| Alabama | $2,207 | $541 |
| Alaska | $2,330 | $498 |
| Arizona | $2,515 | $795 |
| Arkansas | $2,193 | $457 |
| California | $2,692 | $653 |
| Colorado | $3,200 | $650 |
| Connecticut | $2,187 | $826 |
| Delaware | $2,636 | $998 |
| Florida | $3,950 | $1,308 |
| Georgia | $2,610 | $813 |
| Hawaii | $1,652 | $415 |
| Idaho | $1,425 | $343 |
| Illinois | $2,316 | $682 |
| Indiana | $1,639 | $424 |
| Iowa | $1,683 | $317 |
| Kansas | $2,630 | $631 |
| Kentucky | $2,558 | $771 |
| Louisiana | $3,626 | $953 |
| Maine | $1,517 | $398 |
| Maryland | $2,496 | $984 |
| Massachusetts | $1,646 | $416 |
| Michigan | $3,375 | $1,210 |
| Minnesota | $2,044 | $650 |
| Mississippi | $2,061 | $514 |
| Missouri | $2,437 | $610 |
| Montana | $2,228 | $380 |
| Nebraska | $1,994 | $516 |
| Nevada | $3,564 | $1,142 |
| New Hampshire | $1,646 | $419 |
| New Jersey | $2,563 | $1,030 |
| New Mexico | $2,216 | $523 |
| New York | $3,848 | $1,661 |
| North Carolina | $1,702 | $491 |
| North Dakota | $1,655 | $362 |
| Ohio | $1,530 | $404 |
| Oklahoma | $2,560 | $510 |
| Oregon | $1,956 | $789 |
| Pennsylvania | $2,791 | $522 |
| Rhode Island | $2,683 | $800 |
| South Carolina | $1,886 | $657 |
| South Dakota | $1,939 | $334 |
| Tennessee | $1,807 | $459 |
| Texas | $2,627 | $697 |
| Utah | $1,942 | $700 |
| Vermont | $1,359 | $311 |
| Virginia | $1,990 | $677 |
| Washington | $1,674 | $563 |
| West Virginia | $1,904 | $488 |
| Wisconsin | $1,739 | $425 |
| Wyoming | $1,581 | $270 |
| District of Columbia | $2,437 | $762 |
Source: Bankrate.com
What factors affect car insurance rates?
Several factors influence the price of car insurance, some of which are under your control and some of which aren't.
- Your coverage amount. Full coverage is more expensive than a liability-only policy. Your deductible, or the amount you're responsible for before your coverage kicks in, can also influence your premium. (Typically, the higher the deductible, the lower the premium.) Add-ons and special features, like gap insurance and roadside assistance can also add to the cost.
- Your personal infomation. You'll answer a lot of questions when shopping for car insurance, including your age, marital status and, in some states, your gender. Your ZIP code and the amount you drive will also affect the price you pay.
- Your credit history. Insurance companies in most states look at your credit history to determine your insurance score. (Credit-based insurance scores are prohibited or greatly restricted in eight states.).
- Your driving history. Have an at-fault accident, speeding ticket or DUI on your record? High-risk drivers usually pay more for insurance.
- Your car and its features. A six-figure sports car will cost more to insure than a used sedan. While replacement costs can factor into this difference, discounts for safety features can also play a part.
How to choose the right car insurance
The best way to find the right auto insurance is to shop around: Get quotes from at least three insurers, keeping the limits, coverage and deductible the same.
Choose a policy that meets your state's minimum coverage requirements. In fact, to cover yourself financially, consider coverage that is at least equal to your net worth
Look at add-ons and discounts that work for your lifestyle. You may be able to bundle your homeowners, renters or life insurance with your auto policy and save.
Finding the right auto insurance isn't a one-time deal, either: shopping for the best policy and rates every year is. a good way to ensure you're always getting the most for your money.
FAQs
How can I find the best price on car insurance?
Get a quote from three or more insurance company websites. Some aggregators will pull car insurance quotes from multiple companies when you submit a single form.
Can you get a refund on your car insurance?
Car insurance is generally paid on a monthly or bi-annual basis. If you've already paid your premium for the policy period and want to cancel it, you'll typically get a pro-rated refund.
How do car insurance companies pay out claims?
Car insurance companies pay out after investigating the claim and reviewing all related documents. Be sure to consult your policy for any limitations regarding your coverage. In case of an accident, you can file a claim with your insurance company by calling the claims department. Larger insurance companies usually allow you to file a claim quickly on their app or website and upload all the necessary documents.
Who is considered a high-risk driver?
You may be considered a high-risk driver if you have a previous at-fault accident, a history of traffic violations, a DUI or a large number of points on your license. You may also be considered a high-risk driver because of other factors, like being a new driver or having poor credit.
What is the actual cash value of my car?
If your vehicle is stolen or totaled, your insurer won't just give you what you paid for it. You'll receive a payout equaling its actual cash value (ACV) — what it's worth now with depreciation — minus your deductible. Standard gap insurance will just pay off the balance of your auto loan. Car replacement assistance, however, pays 120% of the car's ACV, whether you're making car payments or not.
What is the cheapest car insurance company?
The three major insurance companies with the lowest average premiums are USAA, Auto-Owners and Geico. However, they're not available to all drivers and your individual quote may vary depending on where you live, your driving record and other factors.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best car insurance.
Read more
Our methodology
To determine the best car insurance companies, CNBC Select analyzed dozens of U.S. insurance companies.
When narrowing down and ranking the best car insurance companies, we focused on cost, coverage, availability, ease of use and customer satisfaction, using data from the National Association of Insurance Commissioners and A.M. Best, customer satisfaction rankings averaged from 11 regions from J.D. Power's auto insurance survey and rate information from Bankrate.
The average annual premium data is based on a 40-year-old driver with a clean driving record and good credit. The driver insures a 2020 Toyota Camry, commutes five days a week and drives 12,000 miles annually, with the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
After reviewing these features, we sorted our recommendations by best for affordability, best for availability, best for pay-by-mile coverage, best for customer satisfaction, best for bundling, best for discounts, best for liability-only coverage, best for high-risk drivers and best for military members and veterans.
The premiums and policy structures advertised for car insurance companies are subject to fluctuations in accordance with the company's policies.
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