The 10 Best Car Insurance Companies (2023)

Finding a car insurance company that both fits your budget and provides solid coverage can be time-consuming, which is why it’s important to shop around to find the best one.

Check out Insurify’s ranking of the 10 best car insurance companies to get a better idea of how they stack up, and compare their advantages and disadvantages. Once you’ve browsed the list, compare policies and prices for your unique driver profile with Insurify’s car insurance comparison tool to secure the right coverage for your needs.

Compare the best car insurance companies of 2023

The table below shows Insurify’s top picks for car insurance companies in 2023.

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Best car insurance company overall: New Jersey Manufacturers

NJ Manufacturers

New Jersey Manufacturers, also known as NJM, takes the spot as the best car insurance company overall. Its low monthly rates for liability-only insurance ($63) and full-coverage insurance ($75) make it a solid option for budget-conscious drivers trying to save money amid rising car insurance costs.

NJM earns a high Insurify Quality Score of 4.5 out of 5, further establishing it as a top car insurance company. Additionally, its high customer satisfaction ratings with J.D. Power, Trustpilot, and the National Association of Insurance Commissioners (NAIC) mean drivers can expect quality customer service.

NJM pros and cons

The table below outlines common driver categories and the average monthly quotes New Jersey Manufactures offers.

Best car insurance company for customer satisfaction: State Farm

State Farm

State Farm earned high scores for customer satisfaction in J.D. Power’s 2022 Auto Insurance Study, Insurance Shopping Study for large insurers, and Auto Claims Satisfaction Study.^{[1] [2] [3]} Its mobile app also has near-perfect ratings on the Google Play and Apple App stores, signaling its strength in providing customers with positive experiences.

State Farm has middle-of-the-road rates, with averages of $175 a month for full-coverage insurance and $125 a month for liability-only coverage. It’s a solid option for drivers who value customer satisfaction over finding the cheapest rates, and it earned an Insurify Quality Score of 4.4 out of 5.

State Farm pros and cons

The table below lists average monthly quotes for a variety of driver profiles covered by State Farm.

Best car insurance for active and retired military members: USAA

USAA

USAA is known for its commitment to serving active and retired military service members. It offers top-notch customer service and a full suite of financial and insurance products, including car insurance.

Members can expect average monthly rates of $152 for full-coverage insurance and $106 for liability-only coverage. These are comparable to the national average car insurance premium of $148, making USAA a great choice for car insurance, especially if you already bank there.

USAA pros and cons

The table below lists common driver profiles and the average monthly cost that USAA offers.

Best car insurance for drivers with a speeding ticket: Erie

Erie Insurance

Erie has lower average premiums than its competitors — and this is still true for drivers with minor infractions on their record. While Erie’s average monthly premium for drivers with clean records is $132, Insurify data shows that it increases to $177 a month after a speeding ticket — a 34% increase.

Not only are these premiums still less than other insurers’ premiums for people with marks on their records, but Erie also offers various riders for drivers to customize their coverages, including windshield repair, pet injury coverage, and accident forgiveness. Its average monthly premiums are $132 for full-coverage insurance and $107 for liability-only coverage.

Erie pros and cons

Erie offers coverage for a variety of driver profiles, which are listed in the table below.

Best car insurance for discounts: American Family

American Family

Although American Family has high customer satisfaction ratings, a 4.2 out of 5 IQ Score, and a long list of discounts available on its website, it has slightly higher average rates than competing insurers at $227 a month for full coverage and $158 a month for liability-only insurance. Despite American Family’s higher rates, it’s still worth considering for car insurance, especially if you’re eligible for many of its discounts. You can get reduced premiums for switching to American Family from a competitor, setting up automatic payments, driving fewer than 7,500 miles a year, driving safely in its Pay-How-You-Drive program, and more.

American Family pros and cons

American Family tends to have higher average rates, as shown in the table below.

Best car insurance for drivers older than 25: GEICO

GEICO

Car insurance rates tend to drop after drivers turn 25 years old, when they generally have more maturity and experience behind the wheel.^[4] GEICO’s rates reflect this trend — its average premium for drivers older than 25 is $152 a month.

Additionally, GEICO has high ratings for customer satisfaction and a highly rated mobile app in the Google Play and Apple App stores for drivers who like to manage their accounts on their smartphones. Its average monthly rates are $178 for full-coverage insurance and $125 for liability-only coverage. GEICO’s average rates are comparable to its competitors and the national average.

GEICO pros and cons

This well-known insurer covers a variety of driver profiles. The average monthly quotes are listed in the table below.

Best car insurance for drivers with fair credit: Travelers

Travelers

Most states allow car insurance companies to use a credit-based insurance score to determine premiums, so a driver’s credit score can affect their rates.^[5] The lower your credit score, the higher your rates, and vice versa.

Travelers is one of the best car insurance companies for drivers with fair credit because its monthly premiums for these drivers are only 5% higher than its average full-coverage rates. However, Travelers has below-average satisfaction ratings in recent J.D. Power auto insurance studies. Its average monthly premiums are $172 for full coverage and $131 for liability-only insurance.

Travelers pros and cons

With coverage in 42 states, Travelers offers competitive rates for a variety of driver profiles.

Best car insurance for safe drivers: Nationwide

Nationwide

Nationwide offers multiple ways for safe drivers to save on their car insurance premiums: a safe driver discount for people without accidents or moving violations in the past five years, an additional discount for an accident-free record, and another through its SmartRide program.

When you sign up for the SmartRide program, Nationwide automatically gives you up to 15% off your premiums. Then, you can save even more — up to 40% — when you drive safely. Nationwide’s average premiums are $182 for full-coverage insurance and $167 for liability-only coverage.

Nationwide pros and cons

The variety of discounts Nationwide offers makes this insurer a popular choice. Average monthly Nationwide quotes are listed in the table below.

Best car insurance for families with teen drivers: Allstate

Allstate

Allstate provides parents with resources to help reduce the cost of adding a teen to their car insurance policies. Its teenSMART program, in partnership with ADEPT Driver, can teach teens defensive driving skills and earn families a discount on their car insurance premiums.

Additionally, Allstate offers discounts for drivers younger than 25 who meet its grade requirements and for drivers younger than 21 who attend school more than 100 miles away from where they garage their car. Allstate’s average monthly premiums are $212 for full-coverage insurance and $146 for liability only — this is higher than other best car insurance companies on this list, but you may see lower rates with Allstate’s impressive list of discounts.

Allstate pros and cons

Average monthly Allstate quotes are listed in the table below.

Best car insurance for drivers younger than 25: Auto-Owners

Auto-Owners

Auto-Owners average premiums for drivers younger than 25 are lower than the other best car insurance companies Insurify reviewed. Drivers in this age group have average rates of $180 a month — much lower than some other companies, which have premiums that creep into the $300 range.

Its favorable premiums for this age group may be due in part to three teen-centric discounts for being a good student, attending school at least 100 miles away from where you garage your car, and using a telematics program to monitor safe driving. Auto-Owners has average monthly rates of $109 for full-coverage insurance and $76 for liability-only coverage.

Auto-Owners pros and cons

Auto-Owners covers a variety of driver profiles. The average monthly quotes are listed in the table below.

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Other top car insurance companies to consider

Insurify identified 10 of the best car insurance companies for drivers to start their auto insurance shopping, but here are five more top insurers to consider.

Progressive

Progressive

Progressive is one of the largest insurance companies in the country, with a market share of 14.9% and an Insurify Quality Score of 4.1 out of 5.^[6] It offers many of the same coverage options and discounts as other top insurance companies, but it has average premiums slightly higher than average compared to competitors. Progressive is a good option for drivers who have special coverage needs, like for custom parts and rideshare insurance.

COUNTRY Financial

Country Financial

COUNTRY Financial offers two interesting features for drivers. First, it offers an engaged couple discount for drivers 21 and older with wedding dates in the next 12 months. Additionally, it offers new-car replacement for drivers with vehicles from the last four model years if COUNTRY Financial declares the car a total loss after an accident. COUNTRY Financial’s average premiums are much lower than its competitors, so it’s worth considering if you want potentially cheap rates.

Safeco

Safeco

Compared to other car insurance companies, Safeco seems to fall a bit short. It has higher-than-average premiums compared to other insurers on this list, and even its new-car replacement coverage has much more stringent requirements than COUNTRY Financial. However, it scores decently in customer satisfaction in J.D. Power’s studies and offers a highly rated mobile app for digital account management.

Farmers

Farmers

Farmers stands apart from the pack with its long list of discounts for various features like passive restraints, alternative fuel, and more. However, despite this long list of discounts, Farmers’ average premiums are much higher than other insurers. This insurer may be a good choice for drivers who can take advantage of its discounts or need specialty coverage, such as rideshare, custom parts, spare parts, or original manufacturer parts insurance.

Liberty Mutual

Liberty Mutual

Liberty Mutual offers a variety of additional coverage options that drivers can choose to customize their coverage. Add-ons like new-car replacement and better-car replacement insurance can add peace of mind if you don’t want to pay out of pocket for a new car after an accident. You should be aware of Liberty Mutual’s higher-than-average premiums, though, and shop around to find the best option that works for you.

How Insurify’s experts used internal proprietary data to rate the top auto insurers

Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums. The data included on this page represent averages across all driver ages, gender, credit scores, and driver profiles for Oregon drivers.

How much does car insurance cost?

The average cost of car insurance in the U.S. is $253 a month for full coverage. But your car insurance rates may vary based on your location, driving history, age, gender, vehicle, and more.^[6]

Location is one of the most important factors, as drivers in Michigan have notoriously high average car insurance rates of $463 a month due in part to high liability requirements.^[7]

Furthermore, the cost of car insurance spiked in Oregon, Maryland, and Virginia by more than 25% in 2022. Insurance rates may rise even more in 2023, so it’s important to shop around for the best car insurance company that provides the coverage you need at a price point that fits your budget.

How to find the best car insurance for you

The best car insurance for you may not be the best car insurance for another person, because factors unique to you influence your car insurance rates.^[6] Here’s how you can find the right car insurance company for you, depending on your coverage needs and budget.

Understand the different coverages

Before starting your search for car insurance, understand the different coverage types, which ones you need, and which you can exclude from your policy. Car insurance coverages include:^[8]

Bodily injury liability

This coverage is part of most states’ minimum insurance requirements and pays for the medical bills and lost wages of other people injured in an accident you cause.

Property damage liability

This type of coverage pays for damage you cause to property in an accident and is also included in most states’ car insurance requirements.

Collision

This pays for damage to your car in accidents where you collide with another object, like a tree, pole, mailbox, or another car. States generally don’t require it, but if you finance or lease your car, the lienholder may require it as part of full-coverage insurance.

Comprehensive

This covers damage to your car that isn’t related to a collision, such as from theft, fire, vandalism, and weather-related events. Like collision coverage, most states don’t require it, but your car’s lienholder or lessor may.

Guaranteed asset protection (gap) insurance

This coverage pays for the difference between an auto loan’s balance and the car’s value if the insurance company declares it a total loss. Gap insurance isn’t required, but it can be an extra layer of protection if you’re concerned you may owe more than the car is worth.

Roadside assistance

This provides financial coverage for towing, tire changes, and more when your vehicle breaks down during travel. Roadside assistance can be a helpful add-on to your policy, but many credit card issuers also provide roadside assistance or dispatch with their products, so you may not need it from a car insurance company.

Consider telematics programs

Telematics programs use GPS-enabled devices — either a phone with a mobile app installed or a device installed in your vehicle — to track your driving habits. The device captures driving information like acceleration, braking, turning, and more to determine how safely you drive.^[9] Many insurance companies use telematics programs to provide potential discounts and premium reductions based on drivers’ habits.

Using a telematics program can help lower your car insurance premiums if you have positive driving habits. But if you tend to brake hard or turn corners too quickly, then a telematics program may not be right for you.

Here are telematics programs from several insurance companies:

• Allstate Drivewise

• GEICO DriveEasy

• State Farm Drive Safe & Save

• Nationwide SmartRide

• Liberty Mutual RightTrack

• Farmers Signal

• Travelers IntelliDrive

Look for discounts

Discounts are an easy way to reduce your car insurance premiums. The more discounts an insurer advertises, the more chances you have of lowering your rates. Here are some of the most common:^[10]

• Bundling discounts are for purchasing a car insurance policy and another type of policy with the same company, like home or renters insurance.

• Good student discounts are for students with good grades. This discount typically requires submitting your transcripts or grades to the insurance company. GEICO advertises a 15% discount for good grades.

• Good driver discounts are for people with clean driving records. You typically need to have no claims or infractions in the past three or more years.

• Low-mileage discounts can help lower your car insurance premiums if you don’t drive often. For example, Auto-Owners offers a low-mileage discount for people who drive fewer than 10,000 miles a year, and American Family offers the same discount for driving 7,500 or fewer miles in a year.

Compare multiple quotes

You won’t be able to find the best car insurance company for you if you don’t compare insurers. Get quotes from at least three different insurers to compare their prices and coverage options and determine which one offers the best price.^[10] You can go one step further by using a quote-comparison platform to see many quotes based on your driving profile in one place.

Once you have your quotes, carefully check their rates, coverages, and limits to help you choose the insurer that meets your car insurance needs at a price that fits your budget.

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