List of Car Insurance Companies and Their Ratings (2023)
More than 7,000 insurance companies do business in the U.S. Here are the best ones for your personal car insurance.
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Choosing the best car insurance company can seem overwhelming with all the options available. Not every car insurance company is right for every person, either — the one that’s best for you may be different from your neighbor’s.
Insurify put together a list of car insurance companies to help you out. Whether you’re looking for the cheapest car insurance premiums or the best customer service, this list will help you quickly sort through the options to get what you need.
Quick Facts
The largest insurance company is State Farm.
NJM and USAA are tied for the best insurance company.
The insurer with the cheapest rates is COUNTRY Financial.
It may seem like you see an advertisement for a new insurance company every day. However, the list of car insurance companies that have withstood the test of time is much smaller. These companies have survived by changing their business models over time.
Liberty Mutual, for example, originally launched in 1912 to underwrite workers’ compensation insurance policies for businesses. GEICO famously started by serving government and military employees in 1936. But by 1996, Warren Buffet’s investment firm Berkshire Hathaway had purchased the company, and it now provides policies to the general public.
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The 5 best auto insurance companies
Insurify compiled a list of car insurance companies that balance lower-than-average full-coverage premiums, high Insurify Quality Scores, strong customer satisfaction ratings, and stable financial outlooks.
Insurance Company
Average Monthly Quote: Full Coverage
Insurify Quality Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
NJM
$75
4.5
USAA
$152
4.5
State Farm
$175
4.4
American Family
$227
4.3
GEICO
$178
4.3
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Insurify uses an in-house, proprietary method to rate and review the best car insurance companies. The Insurify Quality (IQ) Score uses more than 15 crucial criteria, including average premiums, customer satisfaction, discounts, third-party ratings, and more, to calculate a final score for a company.
Criteria are weighted by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings. With the IQ Score, Insurify is able to provide quantitative ratings for drivers to better compare car insurance companies and make informed decisions to meet their coverage needs.
NJM
NJM — short for New Jersey Manufacturers — got its start in 1913 selling workers’ compensation insurance policies to factories. Today, it’s received a top score from Insurify due to its ultra-affordable coverage, high customer satisfaction ratings, and the fact that it even pays dividends back to some customers — virtually unheard of in the insurance world.
The downside is that NJM personal auto insurance is currently only available in five states: Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania. It offers the standard suite of liability and full-coverage options, plus endorsements for rideshare drivers, roadside assistance, and more.
NJM offers several standard discounts as well, such as for bundling policies together and for having certain vehicle safety features. It also offers a few unique discounts, such as for older drivers who have taken certain safety courses or even for purchasing a full-coverage policy.
NJM pros and cons
Pros
Pays out dividends to some policyholders
Extremely low volume of customer complaints with the National Association of Insurance Commissioners (NAIC)
Very active with community-based teen driver safety programs
Cons
No mobile app to manage your policy
Available in only five states
Poorly rated telematics-based app
USAA
USAA consistently ranks as one of the top auto insurance companies based on its high-scoring marks in nearly every category. The big downside of this company is that you can only purchase a policy if you’re a current or former military member, or a family member of one.
This reflects the company’s original mission. Founded in 1922 by five Army officers, it was created to help serve the unique needs of military members, and that’s something it still excels at today by offering special discounts for things like storing your car on-post or even deploying. It offers the standard suite of coverages, plus extras such as a rideshare endorsement.
USAA pros and cons
Pros
Lower-than-average premiums
A++ (Superior) A.M. Best rating
Lots of military-specific discounts and services
Cons
Doesn’t offer gap coverage
Not available to the general public
Only five branch locations available
State Farm
State Farm commands more than 16% of the U.S. car insurance market, making it the largest car insurance company in the country.[1] It’s a particularly good choice if you’re looking for an overall good experience with your insurance company because J.D. Power ranked it better-than-average in most areas of the U.S. in terms of customer satisfaction.[2]
If you’re tech-savvy, State Farm is also a good choice because J.D. Power also gave its mobile app a high rating. It carries the highest-possible A.M. Best rating, an important consideration in making sure the company is financially sound and will be able to pay your claims no matter what happens.
State Farm pros and cons
Pros
Highly-rated mobile app
High ratings for overall customer satisfaction
Also offers banking and investment services to streamline your finances
Cons
Not available in Massachusetts or Rhode Island
Rates are higher than average if you have bad credit
Doesn’t offer coverage for custom aftermarket equipment
American Family
American Family started in 1927 and currently receives rave reviews from its customers, who appreciate the many ways this insurer can help them save on car insurance without sacrificing quality. It’s one of the few large insurers to offer a pay-per-mile option for low-mileage drivers in Arizona and Oregon, as well as 17 additional discount options.
American Family offers a standard set of coverage options but doesn’t have a lot of extra options you need to sort through. Unfortunately, it’s only available in 19 states, mostly located in the Midwest and West.
American Family pros and cons
Pros
Higher-than-average number of discounts for younger drivers
Diminishing Deductible program can reduce your deductible down to $0
Rated second-best for overall customer satisfaction in the Central region by J.D. Power[2]
Cons
Low mobile app satisfaction in J.D. Power’s digital experience study
Available in only 19 states
Received lower A.M. Best rating compared to top insurers
GEICO
GEICO is the third-largest auto insurance company in the U.S., with more than 43,000 employees. It receives top marks for financial stability and a low level of customer complaints, and it’s cheaper than other insurers, on average.
In addition to standard full-coverage and liability-only options, it offers a few unique coverages, such as mechanical breakdown insurance. It features 14 different discount options, with some discounts — such as for emergency military deployment — offering premium reductions of up to 25%.
GEICO pros and cons
Pros
A++ A.M. Best rating
Low number of NAIC complaints for a company of its size
Offers some unique coverage options
Cons
Doesn’t offer gap coverage
Doesn’t offer rideshare coverage
Very limited network of local agents
How Insurify rates car insurance companies
Insurify uses an in-house, proprietary method to rate and review the best car insurance companies. The Insurify Quality (IQ) Score uses more than 15 crucial criteria, including average premiums, customer satisfaction, discounts, and third-party ratings, to calculate a final score for a company.
Criteria are weighted by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings. With the IQ Score, Insurify is able to provide quantitative ratings for drivers to better compare car insurance companies and make informed decisions to meet their coverage needs.
The 5 cheapest car insurance companies
You’re required to purchase at least a minimum level of liability coverage in most states in order to legally drive. It’s a good idea to consider higher coverage levels if you have the budget for it, but you must meet your state’s liability minimums. The cheapest car insurance companies for liability-only coverage are COUNTRY Financial, NJM, and Auto-Owners, each with liability premiums of less than $100 a month.
Insurance Company
Average Monthly Quote: Liability Only
COUNTRY Financial
$60
NJM
$63
Auto-Owners
$76
USAA
$106
Erie
$107
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
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How much does car insurance cost?
Car insurance companies base their prices on many factors, so you may get car insurance quotes that differ from the average rate. Here are a few factors that car insurance companies use to price your premiums:[3]
Your car: You may pay higher rates if you drive an older vehicle with fewer safety features, if you put a lot of miles on your car, or if your car is an expensive model that would cost more to repair or replace.
Your credit score: In most states, insurance companies can use your credit score to calculate your rates and decide whether it’ll allow you to buy a policy.
Coverage amounts: Full-coverage insurancecosts more because it adds collision and comprehensive coverage to your policy. For example, State Farm and The General charge an average of $50 and $192 more per month, respectively, for full coverage than for liability-only insurance.
Demographic information: Insurers charge higher premiums for younger drivers, men, single people, and people who live in urban areas with higher rates of theft and car accidents.
How much car insurance should you have?
This is one of the trickiest questions to answer because there’s no way to definitively tell what amount of car insurance is correct. It’s a matter of weighing your risks versus the cost of the insurance.
If you’re financing your car, the answer is a bit easier: Most lenders require you to purchase a full-coverage policy since they have a financial interest in your car.[4]
A financial advisor may be able to help you determine how much car insurance you need. Nycole Freer, certified financial advisor and owner of Eden Financial, specializes in helping mothers and young professionals achieve their financial goals. She recommends that her clients purchase a full-coverage policy and max out their liability coverage to $500,000 to provide the most financial protection possible.
“You don’t want to be in a position where [you] get into an accident and are underinsured,” says Freer. “That could put you into a financial hole you don’t want to climb out of.”
If you cause an accident, insurance will only pay up to your coverage limits, and you’re responsible for the rest.[5]
How to choose a car insurance company
The list of car insurance companies seems endless, but you can quickly zero in on the best options by following a few tips:
Research reviews. Look at various review websites to get an idea of which companies people choose, how much they charge, and what their pros and cons are.
Work with a broker. An independent insurance brokerworks with multiple companies and can do the legwork for you in terms of finding the best quote with the best auto insurer.
Be clear on your insurance needs. Most people do just fine with standard car insurance options, but it’s worth thinking about your situation. Are there any features you’d really prefer in a company or any certain types of coverage options you need? This can be a quick way to narrow down the field.
Ways to save on car insurance
Car insurance can get expensive. In 2022, the average person spent more than $1,500 on car insurance, according to AAA.[6] Fortunately, you have options to lower your car insurance costs:[7]
Drive safely
Many insurers offer telematics devices or apps that record your driving and offer lower rates if you’re a safe driver. Driving safely also means you won’t need to pay a deductible, and it prevents your rates from increasing at the next renewal. Many insurers also offer safe driver discounts.
Choose a higher deductible
Higher deductibles come with smaller premiums, but be sure you can easily pay the deductible up front if you file a claim. “I wouldn’t have a deductible over $1,000 until you can afford a deductible that is higher,” says Freer.
Shop for car insurance quotes
The more companies you get a quote with before renewal time, the better your chances of finding a company that offers the same coverage for a cheaper price.
With a tied IQ Score of 4.5, both USAA and NJM rank as the best car insurance companies in the U.S. due to their affordable rates and high customer satisfaction scores.
What’s the cheapest auto insurance company?
COUNTRY Financial is the cheapest auto insurance company, with an average monthly premium of just $60 for a liability-only policy.
Can you switch insurance companies?
Yes, you can switch insurance companies. It’s good to consider if you’re getting close to the end of your current policy and if you can get a quote from a company that offers cheaper rates and better coverage.
What do you need to get a car insurance quote?
In addition to your personal information, you’ll need your car’s VIN, mileage, make, and model in order to get a rate quote. If you currently have car insurance, you can use your current declarations page as a cheat sheet for your current coverage types and amounts so you can get a quote for a comparable level of coverage.
Lindsay VanSomeren is a freelance personal finance writer living in Suquamish, WA. Her work has appeared with FICO, Credit Karma, The Balance, and more. She enjoys helping people learn how to manage their money better so they can live the life they want.
