Learn more about the 7 best car insurance companies in America

  If you own a car, you must have car insurance. Automobile insurance is required by law in most states in the United States. It protects you and others who use your car and can help financially in the event of an accident. There are many different types of car insurance, so it's important to find the right policy for you and your car.


Learn more about the 7 best car insurance companies in America


What is car insurance?

A car insurance policy is a contract between you and the insurance company that protects you from financial loss in the event of an accident or theft. In exchange for paying a premium, the insurance company agrees to pay for your damages as described in the policy.

What is the most basic insurance for a car?

In general, you need the following six basic car insurance policies:

  1. Bodily injury liability insurance.
  2. Liability coverage for property damage.
  3. Medical payments or personal injury coverage (PIP).
  4. Comprehensive coverage.
  5. Collision coverage. 
  6. Uninsured/underinsured motorist coverage.

The most common types of car insurance.

Automobile insurers typically offer several basic types of coverage, as well as optional riders that can enhance your protection. The most common types of standard and optional insurance are:

  1. Liability for bodily injury
  2. Liability for property damage
  3. Uninsured and underinsured motorist coverage
  4. Collision
  5. Comprehensive insurance
  6. Property damage coverage for uninsured motorists (UMPD)
  7. Medical benefits insurance (MPC)
  8. Personal injury protection (PIP)
  9. Insurance gap
  10. Replacement for new car
  11. Roadside assistance insurance
  12. Rental car insurance

Ranking of actual costs by state

The percentage difference shown is the difference between each state's average premium and the average annual cost of full coverage automobile insurance of $1771. True cost rank is based on the average total percentage of income spent on car insurance, not average premiums. The higher the rank, the higher the true cost of car insurance.

State

Rank of true cost

Average annual full insurance premium

Percent difference from national average

Alabama

42

$1,760

0.57%

Alaska

20

$1,686

-0.40%

Arizona

32

$1,743

0.08%

Arkansas

43

$1,806

0.83%

California

31

$2,190

0.00%

Colorado

30

$2,019

-0.03%

Connecticut

12

$1,533

-0.69%

Delaware

35

$1,963

0.18%

Florida

50

$2,762

1.85%

Georgia

40

$1,985

0.48%

Hawaii

2

$1,206

-1.16%

Idaho

9

$1,065

-0.89%

Illinois

19

$1,548

-0.41%

Indiana

16

$1,242

-0.59%

Iowa

14

$1,254

-0.63%

Kansas

34

$1,802

0.18%

Kentucky

46

$1,954

0.92%

Louisiana

51

$2,864

2.69%

Maine

3

$876

-1.13%

Maryland

18

$1,931

-0.46%

Massachusetts

4

$1,296

-1.12%

Michigan

48

$2,345

1.18%

Minnesota

22

$1,692

-0.37%

Mississippi

45

$1,701

0.89%

Missouri

38

$1,861

0.42%

Montana

41

$1,795

0.51%

Nebraska

26

$1,538

-0.21%

Nevada

47

$2,426

1.17%

New Hampshire

6

$1,182

-1.10%

New Jersey

21

$1,891

-0.40%

New Mexico

33

$1,489

0.15%

New York

49

$2,996

1.30%

North Carolina

24

$1,392

-0.33%

North Dakota

13

$1,225

-0.66%

Ohio

15

$1,200

-0.63%

Oklahoma

44

$1,902

0.86%

Oregon

17

$1,371

-0.58%

Pennsylvania

37

$2,002

0.40%

Rhode Island

27

$1,847

-0.08%

South Carolina

29

$1,464

-0.06%

South Dakota

28

$1,542

-0.08%

Tennessee

25

$1,383

-0.23%

Texas

36

$1,868

0.21%

Utah

10

$1,449

-0.72%

Vermont

7

$1,001

-1.09%

Virginia

5

$1,343

-1.11%

Washington

8

$1,316

-0.97%

West Virginia

39

$1,528

0.46%

Wisconsin

11

$1,25

-0.70%

Wyoming

23

$1,515

-0.34%



Learn more about the 7 best car insurance companies in America


1. USAA

USAA is the best insurance company in our ratings. According to our 2022 survey, USAA customers are the most satisfied and most likely to renew their policies and recommend USAA to other drivers. USAA also has the lowest rates in our survey, beating the national average by 35%.

USAA's insurance products, including auto, homeowners, and renters policies, are only available to military members. Therefore, not all drivers are eligible for coverage from this insurer.

2. State Farm

State Farm is No. 2 in our rating and has above-average scores in all of our sub-ratings, including claims handling and customer loyalty. State Farm also scores well in our 2022 rating of the cheapest auto insurers. Average premiums for drivers with less than stellar driving records were the lowest in our rating for those unable to get a policy from USAA.

3. Farmers

Farmers ranked No. 1 in our rating for claims handling and No. 2 for customer service. Farmers also ranked 2nd for customer loyalty. Farmers didn't fare as well for renewal likelihood, where its score of 4.0 was below the category average of 4.2.

4. nationwide

 

Nationwide has moved up two spots since our 2021 analysis and is now ranked No. 3. Nationwide has the second-highest scores in the customer loyalty and likelihood to recommend subratings and above-average scores in each of the other subcategories. Nationwide also has below-average rates for some riders, particularly those with a good driving record or poor credit rating.

5. Geico

 

Geico ranks third in this year's rankings, with consistently average scores in categories such as customer service, claims processing and customer loyalty. The company stands out most for its premiums, which earn it 2nd place in our ranking of the cheapest auto insurance companies in 2022. Its rates are only just behind the top-ranked USAA for teenage and older drivers, as well as for drivers with poor credit ratings.

 

6. allstate

 

Allstate moved up three spots this year, from 9th to 6th. Allstate is slightly below average in most of our sub-scores, but that didn't stop it from coming in 4th in our "Most Likely to Recommend" category. Compared to the other insurers in our analysis, Allstate's rates are among the highest, but some drivers, such as those with a speeding violation, might find Allstate's rates to be reasonably competitive.

7. travelers

 

Travelers also moved up two spots this year and is now ranked No. 6. Travelers' customer service is worse than that of seven other insurers in our analysis, but the company ranks first in our claims handling subcategory and third in the category most likely to renew. Travelers also receives an above-average rating for policy renewals and offers premiums that are generally lower than the national average.

 

8. progressive

 

Progressive ranks 8th in our analysis. Overall, customers are satisfied with the ease of signing a policy, but Progressive ranks last in the "best customer retention" category and also scores below average in all other subcategories of our survey. Progressive customers also say they're less likely to renew their policy or recommend the insurer to other drivers. However, individuals with a DUI may be able to find savings with Progressive. Rates for these drivers are among the lowest in our survey.

 

9. AAA

 

AAA is new to our ranking of the best auto insurers and is tied with Progressive for 8th place. Its scores are below average in every category we analyzed. However, it ranks 6th in the Most Likely to be Renewed subcategory, beating out Allstate, Farmers, Progressive and American Family. AAA also has the highest average premiums in our study, but drivers considering AAA should get a quote to determine if their individual rate is more competitive.

 

10. American Family 

 

American Family dropped four spots this year, ranking 10th in our analysis, and has the lowest scores in most subcategories, although American Family does slightly better than Progressive in the " Best Customer Loyalty" category. Despite the low score, American Family offers favorable rates for some drivers, particularly teen drivers, drivers with poor credit, and drivers with an accident or DUI on their record.

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