USAA takes the top spot in our evaluation of car insurance providers, with Auto-Owners, Nationwide, State Farm, and Geico following in succession.
Key Takeaways
- USAA: A Pinnacle of Service: Beyond mere satisfaction, USAA distinguishes itself through exceptional customer care, streamlined claims resolution, and a robust suite of cost-saving incentives.
- Auto-Owners: The Consistent Performer: Demonstrating a near-flawless performance, Auto-Owners secured a strong second place, consistently excelling across all critical dimensions, most notably in providing superior customer service and efficient claims processing.
- Navigating the Price Landscape: The cost of auto insurance is a dynamic calculation, influenced by a multitude of variables. To secure optimal value, proactive comparison shopping is essential, allowing you to tailor a policy that aligns with your financial parameters.
Our Best Car Insurance Companies Ranking:
- #1 USAA »
- #2 Auto-Owners »
- #3 Nationwide »
The Best Car Insurance Companies in Detail
Let’s take a closer look at some of the top car insurance providers:
USAA
4.9
chequepay News Rating
PROS
- Reaching every corner of the nation, from coast to coast and within Washington, D.C., it holds the undisputed title of number one in customer service, claims processing, and discount programs
- it holds the undisputed title of number one in customer service, claims processing, and discount programs
CONS
- Eligibility is restricted to military personnel, veterans, and their immediate family members
USAA’s performance in our comprehensive car insurance evaluation was nothing short of stellar, establishing it as the definitive frontrunner. Its dominance wasn’t merely a headline; rather, it permeated every facet of our analysis. USAA emerged as the undisputed champion in key areas, including the critical domains of customer interaction and claims resolution, and further cemented its position as a premier choice for senior drivers and those seeking substantial savings. While achieving near-total supremacy, a slight divergence appeared in the realm of customer retention metrics. Auto-Owners marginally edged out USAA in indicators of loyalty, referral likelihood, and policy renewal intent, suggesting a subtle, albeit notable, distinction in long-term customer allegiance.”
Beyond its service accolades, the insurer demonstrably leads in affordability, consistently presenting the most competitive premiums observed across our comprehensive market scan. This cost-effectiveness wasn’t a mere statistical fluke; it manifested as a tangible advantage for diverse driver profiles, particularly those often facing inflated rates, such as young adults and individuals with prior traffic infractions. For a deeper dive into the landscape of budget-friendly coverage and a tailored understanding of how various insurers structure their pricing for specific driver demographics, consult our dedicated analysis of the most economical car insurance providers.
USAA’s exemplary performance across our evaluation benchmarks establishes it as a veritable standard-bearer within the insurance landscape. However, its exclusive membership structure presents a tangible barrier for the broader driving population. Consequently, for the vast majority of motorists, the pursuit of optimal coverage necessitates a thorough exploration of the diverse and highly competitive field of insurers represented in our comprehensive rankings
USAA car insurance discounts
- -Save more with a multi-policy discount
- Discount available for military personnel on base
- Discount for students with strong academic performance
- Discount for maintaining a clean driving history
- Discount for safe driving practices
- Discount for completing defensive driving training
- Discount for finishing a basic driver training course
- SafePilot discount for participating in a driver tracking program
- Discount for owning a newer vehicle
- Discount for having anti-theft devices installed
- Discount for deployment or vehicle storage
- Discount for reduced driving mileage
- Loyalty discount for long-term members
- Discount for insuring multiple vehicles
- MyUSAA Legacy discount for eligible members
Auto-Owners »
4.7
chequepay News Rating
PROS
- Ranked as the top company for customer loyalty in our evaluation
- Discovered some of the most competitive sample rates available for teenage drivers and senior citizens
CONS
- Only available in 26 states
Securing the runner-up position in our comprehensive car insurance assessment, Auto-Owners distinguishes itself by cultivating an exceptionally loyal customer base. It stands as the undisputed leader in fostering customer advocacy, evidenced by its top rankings in recommendation and renewal likelihood. While falling just shy of the pinnacle, yielding only to USAA, Auto-Owners consistently demonstrates near-unparalleled performance across all other evaluated dimensions, notably in the critical areas of customer interaction and claims resolution, revealing a commitment to exceeding expectations at every touchpoint.
Auto-Owners consistently presents a more economical pricing structure than the prevailing national average, a notable advantage that extends to driver segments frequently burdened with exorbitant premiums. Specifically, our analysis reveals their particularly competitive rates for both novice teenage drivers and those with DUI convictions, demonstrating a commitment to affordability even within demographics traditionally deemed high-risk by the insurance industry
Auto-Owners has strategically established its automotive insurance coverage across a carefully curated selection of states, spanning the heartland and reaching into the Southeast and Mountain regions. Their service footprint encompasses a diverse array of locales, from the plains of Nebraska to the shores of Florida, offering tailored policies to drivers within these specifically designated areas.
Auto-Owners car insurance discounts
- Discount for multiple policies
- Discount based on payment history
- Eco-friendly discount
- Discount for insuring multiple vehicles
- Discount for bundling life insurance with other policies
- Discount for paying the full premium upfront
- Discounts for safety features in vehicles
- Discount for obtaining a quote in advance
Nationwide »
4.1
chequepay News Rating
PROS
- Achieves high marks for customer loyalty, as indicated by positive survey feedback
- Pricing is below the national average across all driver categories we examined.
CONS
- The fourth-highest sample rates in our study pertain to drivers who have been charged with a DUI.
Nationwide secures a solid third position in our comprehensive car insurance evaluation, earning a commendable 4.1 out of 5. Their performance demonstrates consistent excellence, achieving third place across critical subcategories like customer service, loyalty, renewal likelihood, and recommendations. Notably, they consistently trail only the top-ranked USAA and Auto-Owners, highlighting their strong standing within the industry’s elite.
A significant majority of policyholders, 59% to be precise, reported complete contentment with the claims resolution process, indicating a high level of customer satisfaction.
Our comprehensive analysis of budget-friendly car insurance providers places Nationwide as the fourth most economical option, following closely behind USAA, Erie, and Auto-Owners.
Nationwide car insurance discounts
- Discount for multiple insurance policies
- Discount for completing defensive driving courses
- SmartRide program offering usage-based insurance savings
- Discount for installing anti-theft devices
- SmartMiles program rewarding low mileage drivers
- Discount for maintaining a safe driving record
- Discount for being accident-free
- Savings for setting up automatic payments
- Discount for students with good academic performance
What Is the Best Car Insurance Company?
While USAA’s unparalleled performance, securing the top position and excelling in pivotal areas like customer service and claims, is undeniable, its exclusive membership limits its accessibility. Auto-Owners, conversely, offers broad public access across 26 states, achieving a strong second-place ranking and demonstrating impressive performance in crucial categories.
Best for Customer Service: USAA and Auto-Owners
USAA’s reign as our top-rated auto insurer is further solidified by its leading position in customer service. While its offerings are tailored to the military community, the data reveals exceptional satisfaction among its members: 64% found contacting customer service effortless, and 60% were entirely pleased with the service received. Auto-Owners, accessible to a broader audience, secures a strong second place in this crucial category.
Auto-Owners garnered comparable praise from their policyholders, with 61% expressing complete satisfaction in both ease of contact and overall service quality. This consistent positive feedback positioned them firmly behind USAA. Nationwide and State Farm followed, securing the third and fourth spots, respectively, in this critical customer service metric.
Best for Claims Handling: USAA and Auto-Owners
USAA and Auto-Owners emerged as the clear leaders in claims processing, securing the top two positions. While USAA boasted impressive satisfaction rates, with 65% of customers completely content with claim filing and 67% with resolution, Auto-Owners demonstrated slightly lower but still respectable figures, at 44% and 61%, respectively. American Family followed in third place, while Nationwide and State Farm shared the fourth position.
Best for Customer Loyalty: Auto-Owners
Auto-Owners demonstrated unparalleled customer loyalty, achieving a remarkable 4.9 out of 5. Their policyholders exhibited strong retention and advocacy, with 64% expressing a high likelihood of renewal and 56% readily recommending the company. USAA followed closely with a 4.8, while Nationwide, State Farm, and Farmers secured the third and fourth positions, respectively, with scores of 4.2 and 4.0
Best for Seniors: USAA and Auto-Owners
Our analysis of top car insurance companies for seniors, based on feedback from those 55 and older, positioned USAA at the pinnacle, though its eligibility is restricted to the military community. Auto-Owners secured a close second, both companies offering attractive rates for this demographic. USAA led in affordability for both male and female seniors, while Auto-Owners ranked third and fourth, respectively. Erie, with the second-lowest sample rates, earned third place, followed by Geico in fourth.
Best for Discounts: USAA and Auto-Owners
USAA and Auto-Owners, our leading companies in discount offerings, demonstrated a remarkable parity in customer satisfaction. Approximately 44% of policyholders from both companies reported complete satisfaction with the available discounts. American Family followed in third place, with Allstate and State Farm sharing the fourth position
Our analysis revealed an average annual car insurance expenditure of $2,068 across the companies we evaluated. However, it’s crucial to understand that premiums are highly personalized, influenced by a multitude of factors, and thus, your actual cost may deviate significantly. The sample rates utilized in our November 2023 study serve solely as a comparative benchmark.
Companie
Average Annual Rates
Allstates
$3.374
Farmers
$3.253
American Family
$2,170
State Farm
$2,150
Progressive
$1,848
Gieco
$1,778
Nationwide
$1,621
Auto-owners
$1,619
Erie
$1,532
USAA
$1,335
State/City | Overall Average Rate |
|---|---|
Alabama | $1,354 |
Alaska | $1,294 |
Arizona | $1,626 |
Arkansas | $1,814 |
California | $1,782 |
Colorado | $1,663 |
Connecticut | $1,567 |
Delaware | $2,231 |
Florida | $2,551 |
Georgia | $1,432 |
Hawaii | $1,241 |
Idaho | $992 |
Illinois | $1,266 |
Indiana | $1,190 |
Iowa | $1,215 |
Kansas | $1,486 |
Kentucky | $2,104 |
Louisiana | $2,734 |
Maine | $949 |
Maryland | $1,468 |
Massachusetts | $1,399 |
Michigan | $1,920 |
Minnesota | $1,460 |
Mississippi | $1,505 |
Missouri | $2,055 |
Montana | $1,525 |
Nebraska | $1,569 |
Nevada | $1,913 |
New Hampshire | $1,530 |
New Jersey | $1,706 |
New Mexico | $1,530 |
New York | $1,808 |
North Carolina | $1,165 |
North Dakota | $1,300 |
Ohio | $1,083 |
Oklahoma | $1,638 |
Oregon | $1,281 |
Pennsylvania | $1,395 |
Rhode Island | $1,831 |
South Carolina | $1,813 |
South Dakota | $1,577 |
Tennessee | $1,264 |
Texas | $1,716 |
Utah | $1,407 |
Vermont | $1,053 |
Virginia | $1,280 |
Washington | $1,285 |
Washington, DC | $1,727 |
West Virginia | $1,532 |
Wisconsin | $1,145 |
Wyoming | $1,341 |
Embarking on the quest for optimal car insurance necessitates a methodical approach. Begin by familiarizing yourself with your state’s mandatory coverage and, if applicable, the stipulations of your lender or lessor. Subsequently, define your priorities: cost-effectiveness, comprehensive coverage, exceptional customer support, or a balanced blend of these elements. This guide aims to demystify car insurance and empower you to identify the ideal provider
How car insurance works
Driving legally mandates insurance in almost all states. It acts as a monetary shield against costly automotive claims, contingent on consistent premium payments. Based on your selected protection, a policy can address medical bills, vehicle repairs, property damage, legal fees, and more following a covered incident.
Here’s the process:
- Select your protection levels: While state-mandated minimum coverage is required, you may opt for additional protection. Policies typically include varied coverage types like liability, full coverage, and impact protection. Each coverage type has a distinct ceiling, chosen at policy inception. This ceiling represents the maximum payout by your insurer per claim.
- Maintain coverage with payments: Upon establishing your protection, monthly or annual payments are necessary to keep the policy active, regardless of claim submissions.
- Initiate a claim: You can file a claim with your provider to cover applicable costs linked to covered events, such as accidents, weather-related damage, collisions, or theft. The specific coverage you hold dictates what your insurance will address.
- Cover your initial cost: When claiming for repairs or medical costs, you must pay your share. This is the amount you pay out-of-pocket before your insurance takes effect. The amount varies by policy, with common options being $250, $500, or $1,000.
How to find the best car insurance company for you
Selecting the appropriate vehicle protection plan is a crucial choice, and various elements will dictate the protection that suits you. Below are strategies for identifying the optimal insurance coverage to align with your needs:
- Comprehend your state’s legal framework: Maintain awareness of the statutes and regulations governing automotive insurance within your state. Depending on your domicile, your minimum vehicle protection mandates will differ.
- Examine user and expert evaluations: Scrutinize what other clients and specialized entities are saying about insurance providers. This feedback can furnish you with a clear perspective on the provider’s client support, dependability, and claims processing.
- Personalize your protection: Ensure your insurance coverage conforms to your requirements to avert having excessive or insufficient protection.
- Adjust to life’s transformations: As your circumstances evolve, so should your insurance. New developments such as marriage or incorporating a teenage driver onto your policy may alter the insurance coverage you require. Shop around to discover the optimal insurance coverage for your evolving lifestyle.
- Lender stipulations: If you are financing a vehicle, understand what insurance your lender mandates you to uphold on your vehicle. Most lenders require you to obtain physical damage insurance coverage (full coverage and impact coverage) to safeguard their monetary interests.
How to compare quotes
Embarking on the quest for optimal car insurance necessitates a methodical approach. Begin by familiarizing yourself with your state’s mandatory coverage and, if applicable, the stipulations of your lender or lessor. Subsequently, define your priorities: cost-effectiveness, comprehensive coverage, exceptional customer support, or a balanced blend of these elements. This guide aims to demystify car insurance and empower you to identify the ideal provider
types of car insurance
How can I find the best price on car insurance?
To effectively manage insurance costs, the III advises prospective policyholders to solicit quotes from a minimum of three distinct insurers. A critical aspect of this process is ensuring uniformity in coverage type and limits across all quotes, facilitating a precise and meaningful comparison of available options.
How has the best car insurance?
USAA and Auto-Owners lead our insurance company rankings, achieving overall scores of 4.9 and 4.7, respectively. USAA offers the most economical premiums, exceeding 35% savings compared to the national average. Auto-Owners also provides significant savings, with rates 22% below the national average. However, given USAA’s exclusive membership to the military community, Auto-Owners, operating in 26 states, may present the most viable choice for a broader range of drivers. Nationwide secures the third position, followed by State Farm and Geico in fourth and fifth place, respectively.
what is the cheapest car insurance
Our investigation into budget-friendly car insurance revealed USAA as the leader in affordability, boasting an average annual premium of $1,335—a significant $733 below the national average. However, access to USAA’s policies is restricted to the military community. For those outside this demographic, Erie emerges as a strong contender, offering an average rate of $1,532, $536 less than the national average. Erie provides coverage in 12 states and Washington, D.C. Auto-Owners and Nationwide also demonstrate competitive pricing within our findings.