When it comes to car insurance, folks often look for names like Geico, Progressive, and State Farm. These companies tend to top the charts for a few reasons. First off, they offer reasonable premiums, which is always a plus. Then there’s the feedback from customers, who often give them a thumbs up for their service. And let’s not forget the ratings from editors at places like WalletHub, who know a thing or two about what makes a good insurance company. Overall, the best auto insurance companies not only offer affordable coverage but also a range of options to suit different needs, along with some nice discounts to sweeten the deal.
10 Best Car Insurance Companies
GEICO
- Average annual premium: $462 per year
- WalletHub editor rating: 4.4 out of 5
- Better Business Bureau rating: A+
When it comes to car insurance, Geico often takes the cake. Their premiums are competitive, which is a big draw for many folks. Plus, they offer a wide range of coverage options to fit different needs, along with some pretty sweet discounts like ones for good drivers and safe vehicles. And the perks don’t stop there—Geico isn’t just about auto insurance; they also offer other types like boat, condo, and renters’ coverage, giving customers plenty of options to protect what matters most to them.
Progressive
- Average annual premium: $549 per year
- WalletHub editor rating: 3.9 out of 5
- Better Business Bureau rating: A+
Many folks swear by Progressive when it comes to car insurance, and it’s not hard to see why. They’re known for offering consistently low prices, which is a big win for budget-conscious drivers. Plus, their claim filing process is a breeze—you can do it online, through their mobile app, or just give them a call anytime, day or night, thanks to their 24/7 claims support line. And if you’re all about saving some cash, Progressive has you covered with discounts for things like bundling multiple policies, insuring multiple cars, and even using their Snapshot program. It’s no wonder so many people trust Progressive to protect their wheels.
State Farm
- Average annual premium: $718 per year
- WalletHub editor rating: 4.1 out of 5
- Better Business Bureau rating: A+
State Farm holds the title as the nation’s largest car insurance company, and for many drivers, that’s reason enough to consider them the top choice. Their size brings perks like extensive customer service hours, easy online quotes, and solid financial stability.
With State Farm, you’re not just limited to car insurance either. They offer a range of insurance types, so you can bundle policies for savings and keep everything under one roof. Plus, they cater to specific needs, whether you’re into sports cars or classics, or even need rideshare coverage in certain states. State Farm’s got you covered, no matter what you drive or where you’re headed.
USAA Insurance
- Average annual premium: $487 per year
- WalletHub editor rating: 3.5 out of 5
- Better Business Bureau rating: N/A
USAA stands out as an affordable option for car insurance, but it’s exclusively for military service members, veterans, and their families. Alongside the usual coverage options, USAA also provides specialized insurance for rideshare and classic cars.
However, it’s important to note that USAA’s customer service ratings aren’t as high as some of its competitors. Some folks have voiced concerns about slow communication and less-than-satisfactory claims settlements. So while USAA might save you some cash, it’s worth considering the trade-offs in service quality.
Esurance
- Average annual premium: $645 per year
- WalletHub editor rating: 3.0 out of 5
- Better Business Bureau rating: B
Esurance offers budget-friendly insurance for drivers who don’t mind purchasing a policy from a company without local agents. You can snag auto policies from Esurance in 43 states, including big ones like California, Florida, and Texas.
But here’s the flip side: while Esurance’s prices might be tempting, there are some drawbacks to consider. They’ve got about three times as many customer complaints as the average competitor, which could be a sign of potential issues down the road. So, it’s a trade-off between saving money and potentially dealing with more hassle.
Travelers Insurance
- Average annual premium: $639 per year
- WalletHub editor rating: 4.2 out of 5
- Better Business Bureau rating: A
Travelers stands out as a solid option for car insurance thanks to its wide array of coverage options and discounts. Whether you’re driving a hybrid, practicing safe driving habits, or brushing up on your skills with a driver’s education class, there are plenty of ways to save on your policy.
And it’s not just car insurance—Travelers has you covered on multiple fronts. From homeowners and renters insurance to policies for landlords and more, they offer a comprehensive range of coverage options to suit various needs. So, whether you’re protecting your wheels or your home sweet home, Travelers has got you covered.
Mercury Insurance
- Average annual premium: $604 per year
- WalletHub editor rating: 3.7 out of 5
- Better Business Bureau rating: A-
Mercury offers competitive premiums, making it an attractive choice for many. However, it’s worth noting that their policies are limited to just 11 states, including big ones like California, Florida, and Texas.
But that’s not all they offer—Mercury provides some handy add-ons to their policies, such as rental reimbursement, mechanical protection, and emergency road service. And if you’re in the market for bundling multiple policies, they’ve got you covered there too. You can snag home, renters, or condo coverage from Mercury, making it a convenient one-stop-shop for your insurance needs.
AAA Insurance
- Average annual premium: $529 per year
- WalletHub editor rating: 3.4 out of 5
- Better Business Bureau rating: A+
AAA is a go-to for drivers on a budget, offering low prices and a variety of discounts to help you save. But here’s the catch—you’ll need to be a AAA member to snag their auto insurance. Membership fees vary depending on your regional club, typically ranging from $38 to $171 per year.
Once you’re in, though, you’ll have access to more than just standard car insurance. Some regional clubs sweeten the deal with extras like gap insurance, accident forgiveness, and rental reimbursement coverage, giving you even more bang for your buck.
Allstate
- Average annual premium: $781 per year
- WalletHub editor rating: 2.9 out of 5
- Better Business Bureau rating: A+
Allstate offers competitive rates, and drivers can stretch their dollars further with options like the Drivewise program, Milewise (pay-per-mile) policies, or discounts for safe driving. Plus, they’ve earned high marks from consumer watchdog groups for their financial stability and prompt claims payouts.
But here’s a perk that really stands out: Allstate’s claim-satisfaction guarantee. As long as you use an in-network repair shop, if you’re not satisfied with your claim experience, you can score a six-month credit on your car insurance premium for the vehicle involved in the claim. It’s just one more way Allstate goes the extra mile for its customers.
Farmers Insurance
- Average annual premium: $1,044 per year
- WalletHub editor rating: 3.0 out of 5
- Better Business Bureau rating: A
Farmers may lean towards the pricier side compared to some others, but they justify it with an impressive array of coverage options, top-notch claims service, and a generous selection of discounts. Besides the standard insurance types, they also provide supplemental coverage options like new car replacement, custom equipment, and original equipment manufacturer coverage. With Farmers, you’re not just getting insurance—you’re getting peace of mind and protection tailored to your needs.
Tips for How to Get the Best Car Insurance
1. Shop around to find the best deal.
Insurance companies take several factors into account when calculating premiums, such as your age, ZIP code, and driving history. That’s why it’s wise to get quotes from at least three different insurers to find the best car insurance that suits your specific needs. And don’t forget to keep shopping around when it’s time to renew your policy. This ensures you’re always getting the best deal available.
2. Don’t ignore regional companies.
While big names like State Farm, Geico, and Progressive are the big players in the insurance game, it’s worth considering smaller, local insurers in your area. These regional companies can often offer competitive prices too. Plus, if you prefer a more personal touch and like dealing with an agent face-to-face, they can be a great option. If you’re curious about what’s available in your state, just click on the name of your state below to find a list of trustworthy insurers, big and small.
3. Remember to look for discounts.
While some car insurance discounts are applied automatically when you get a quote, it’s important not to overlook other potential savings opportunities. For example, you could reduce your premium by taking a defensive driving class or participating in your insurer’s usage-based program. By exploring these additional avenues for savings, you can ensure you’re getting the best possible deal on your car insurance.
4. Consider factors besides price.
While finding an affordable car insurance policy is crucial, it’s not the only factor to consider. Before committing to a policy, it’s wise to assess the company’s customer service track record. You can do this by checking their ratings with organizations like the Better Business Bureau or J.D. Power, a respected market research company. Additionally, user ratings on platforms like WalletHub provide insight into customer satisfaction, while WalletHub editor ratings offer a convenient comparison of how a company measures up against its competitors. By considering these factors alongside price, you can make a more informed decision when choosing a car insurance provider.
Methodology
To determine the best car insurance companies, we considered each company’s average annual premium, WalletHub editor rating, and user rating on WalletHub. Premiums were given twice the weight of the other two factors and served as a tiebreaker when needed.
The annual premiums were calculated as an average of quotes from 30 California ZIP codes. These quotes were based on coverage for a 45-year-old single man who drives 15,000 miles per year and has a clean driving record with good credit. The premiums reflect coverage limits for:
- $15,000 in bodily injury liability coverage per person
- $30,000 in bodily injury liability coverage per accident
- $5,000 in property damage liability coverage
Ask the Experts
To assist drivers in finding the best car insurance, WalletHub sought insights from a panel of experts on the following questions. Click on the links below to access their commentary and recommendations:
- Which do you believe is a stronger indicator of a reputable car insurance company: competitive rates or positive customer reviews?
- Should 24/7 live customer service be considered a prerequisite for inclusion among the top car insurance companies?
- Is it reasonable to assume that the largest 10 car insurance companies are the most suitable option for the majority of drivers?
- What guidance would you offer to individuals in the process of selecting a car insurance provider?
- How significant do you perceive the influence of television advertisements to be in the decision-making process when people are choosing their car insurance provider?
