Best car insurance companies of May 2024 (2024)

Nationwide is the best car insurance company of 2024. It has a wide range of coverages, some of the lowest rates and fewer complaints to state insurance departments, compared to many other insurers in our analysis.

Travelers and USAA also receive 5 stars in our analysis of the best car insurance companies. Erie, Geico and Progressive earn between 4 and 4.5 stars and are also good car insurance companies to consider.

The best car insurance companies of 2024

• Nationwide: Best car insurance.
• USAA: Best car insurance for military.
• Travelers: Best car insurance for new car owners.
• Erie: Best car insurance for new drivers.
• Geico: Best car insurance for bad credit.
• Progressive: Best car insurance for DUI.

Top-rated car insurance companies of 2024

Why it’s the best

Nationwide is the best car insurance company overall, among car insurance providers we analyzed. It also claims the top spot in our best car insurance for teens and best car insurance for seniors ratings.

Nationwide has the lowest average rate for drivers with poor credit and parents adding a teen (16 to 19) to their car insurance policy. These two demographics often see high car insurance premiums. Good drivers and drivers with speeding tickets are also likely to find low rates with Nationwide.

In addition to some of the best car insurance deals for most drivers, Nationwide also has a low level of customer complaints to state insurance departments and offers a variety of coverage options and features, including usage-based insurance, accident forgiveness and gap insurance. It does not offer rideshare insurance, meaning it’s not the best option if you drive for a rideshare service, such as Lyft or Uber.

See our full Nationwide car insurance review.

Average rates

Why it’s the best

USAA offers some of the best auto insurance rates among the car insurance companies we evaluated. Its rates are particularly competitive for good drivers and those with an accident or speeding ticket on their record. Even drivers with a DUI or poor credit history will likely find competitive rates with USAA.

While most drivers can unlock lower rates with this insurer, only USAA members are eligible for coverage. USAA was founded to support the military community, and its auto insurance and financial products are available only to active military members, veterans and their families.

See our full USAA car insurance review.

Average rates

Why it’s the best

Travelers offers excellent car insurance for new car owners. It has the cheapest gap insurance rates among the car insurance companies we evaluated. If your car is totaled and the market value is less than the balance on your auto loan, this type of coverage can help bridge the gap. It may even be required as part of a lender or lessor agreement.

Travelers also offers new car replacement coverage that lasts five years. In comparison, many other insurers limit the coverage to two or three years — another reason it’s the best insurance for car owners who recently upgraded their ride. As a bonus, Travelers offers discounts for new vehicles (less than three years old) and hybrid/electric vehicles.

Travelers also have lower-than-average rates for most drivers and the third lowest rates in our analysis for drivers ages 18 to 25 who purchase their own policy, as opposed to joining a parent’s policy.

See our full Travelers car insurance review.

Average rates

Why it’s the best

Erie has the lowest car insurance rates for parents adding a 16-year-old driver to their policy, making it the best car insurance for new drivers. The insurer also has the highest CRASH Network grade (A-) among companies we analyzed, which reflects the efficiency and reliability of an insurer’s collision repairs claims process. And, Erie took the No. 2 spot in the most recent J.D. Power U.S. Auto Claims Satisfaction Study, the highest performing car insurance provided among those we analyzed in our rating.

In addition to low rates for new and young drivers and a strong claims process, Erie also has competitive rates for drivers with an accident, DUI or speeding ticket on their record. However, Erie does not offer usage-based car insurance. Some drivers, especially those with a clean record or poor credit, may find cheaper rates elsewhere.

See our full Erie car insurance review.

Average rates

Why it’s the best

If you have bad credit, get a quote from Geico. Next to USAA and Nationwide, it has the lowest rates for drivers with bad credit, on average. It also has competitive rates for good drivers and senior drivers and below-average rates for most other types of drivers, except those with a DUI.

Geico offers coverage in all 50 states and provides most major types of car insurance drivers expect, but some coverage options and features are missing. Namely, Geico doesn’t offer rideshare insurance, gap insurance, new car replacement and vanishing deductibles.

See our full Geico car insurance review.

Average rates

Why it’s the best

A DUI on your record will result in a sharp rate increase when you renew coverage or purchase a new policy. Progressive’s average rate after a DUI ($2,307) is significantly lower than the national average of $3,363, making it the best car insurance after a DUI. Progressive’s rates for other types of drivers are generally below average. However, if you have a speeding ticket or accident causing property damage on your record, you’ll likely see higher rates with Progressive compared to other insurers in our analysis.

Progressive car insurance is available in all 50 states and it offers a slew of features and coverage options, such as rideshare insurance and gap insurance. It doesn’t offer new car replacement coverage, however.

See our full Progressive car insurance review.

Average rates

What is the best car insurance company overall?

The best auto insurance company overall is Nationwide, based on our analysis of car insurance rates, coverage options and consumer complaints.

Travelers and USAA also get 5 stars and earn top spots in our ratings of the cheapest car insurance, best car insurance for teens and best car insurance for seniors.

If you’re looking for top-rated car insurance companies, it’s important to note that USAA auto insurance is only available to members of the military, veterans and their eligible family members.

To find the best insurance companies for your policy needs, shop around and compare car insurance quotes.

The best car insurance based on your needs

The best car insurance policy for you depends on several factors, including your coverage needs, policy preferences and expectations, driving record and age.

• Best full coverage car insurance
• Best liability-only car insurance
• Best low-cost car insurance
• Best home and auto bundles
• Best car insurance after a DUI
• Best car insurance for seniors
• Best car insurance for teens
• Best car insurance for new drivers
• Best car insurance for claims experience

Best full coverage car insurance: Nationwide

Nationwide has the best full coverage car insurance. It has the highest score in our rating and the second-lowest average cost among insurers we analyzed. USAA and Travelers also receive 5-star ratings for offering the best full coverage auto insurance.

Best liability car insurance: Erie

USAA and Erie offer the most affordable liability-only car insurance among the insurers to make our list of best car insurance providers.

If rates are the driving force in your search for the best car insurance policy for liability-only coverage, consider Erie. Its average rate is $36 a month.

If you’re a member of the military community, get a quote with USAA. Its average rates are lower than Erie’s at $31 per month.

Best liability-only car insurance companies

Best low-cost car insurance: Nationwide

Nationwide has the cheapest car insurance for the general public among the top insurers in our analysis. Good drivers pay an average of $1,436 a year, or $120 per month. That’s 33% less than the national average of $2,026.

If you’re eligible for USAA coverage, you may be able to secure an even lower rate. The average cost of a USAA full-coverage policy for a good driver is $1,364 a year, or $114 per month.

Both insurers also have the lowest overall average annual rates, when factoring in rates for all driver profiles.

Best home and auto insurance bundle: State Farm

If you’re looking for the biggest discount, State Farm is a good option when it comes to bundling your auto and home insurance policies. It offers the most savings for a home and auto bundle, with up to 23% off on your premiums.

However, if you’re looking for the best bundle with one of our top-rated car insurance companies, consider Nationwide. Its bundling discount is a little lower at 15% off, but it also has lower rates for both car and homeowners insurance, when compared to State Farm.

^{* Average cost of car insurance and homeowners insurance represents the average cost before bundling discounts.}

Best car insurance for seniors: Nationwide

Nationwide has the best car insurance for drivers over 65, according to our best car insurance for seniors rating. It has the cheapest rates for senior drivers, with an average rate of $1,402 per year, or about $117 per month.

_{Car insurance rates reflect the average rates for men and women between ages 65 and 85.}

Best car insurance for teens: Nationwide

Nationwide has the best car insurance for teens, for parents looking to add a 16- to 19-year-old to their policy. It has the lowest rates among the insurers we analyzed — $2,819 per year or $235 per month.

Parents in the military community looking for affordable car insurance rates when adding a teen to your policy, consider USAA, which has car insurance for teens with annual rates as low as $3,025 per year, or $252 per month.

If you’re a teen shopping for your own car insurance policy, consider Erie. It has the lowest average rate of $2,921 per year, or $243 per month.

Best car insurance rates for teens on a parent policy

Best car insurance rates for teens on own policy

Did you know? Teen drivers are 4 times more likely to get in an accident than older drivers

Best car insurance for DUI: Progressive

A DUI will raise your rates, but if you’re shopping for the best cheap car insurance after a DUI, get quotes from Progressive. Progressive has the cheapest average rates after a DUI at $2,307 per year, or $192 per month.

Best car insurance for new drivers: Erie

If you’re getting ready to insure a freshly-minted, 16-year-old driver, get a quote from Erie. Not only does Erie have competitive rates for drivers in this age group, it also has the best collision repair scores and the highest J.D. Power U.S. Auto Claims Satisfaction Survey scores among the insurers in our best car insurance rating.

If Erie car insurance is not available where you live, Nationwide offers the cheapest car insurance for new drivers, on average.

Best car insurance for claims experience: Erie

The last thing you want to worry about after an accident is whether or not your insurer will properly handle the claim. According to the most recent CRASH Network Insurer’s Report Card, Erie has the best claims process among the insurers we evaluated.

The CRASH Network surveys more than 1,000 collision professionals to learn about how different auto insurance companies handle the claims process. Insurers receive a grade of A+ to F based on their performance in key areas, such as the claims handling process, quality of repairs, payments and customer satisfaction.

Erie got the best CRASH Network score out of our best auto insurance companies, and it’s also worth noting that Erie received the second-highest score in the most recent J.D. Power U.S. Auto Claims Satisfaction Study.

5 ways to find the best car insurance company for you

If you’re looking for the best auto insurance company for you, these steps can help:

1. Determine your basic coverage needs by checking state car insurance requirements. If you finance or lease your vehicle, also check the lender or lessor agreement, as it likely requires comprehensive and collision coverage, and potentially gap insurance.
2. Customize your car insurance policy with any additional coverages or features you may need or want, such as new car replacement coverage, rideshare coverage or roadside assistance. Also consider any situational needs, such as SR-22 filing after a DUI.
3. Evaluate benefits and discounts offered by each insurer, such as access to online or in-app policy management, home and auto bundling discounts, or other circ*mstantial discounts, like a good student discount.
4. Compare car insurance quotes from at least three car insurance companies, ensuring you’re comparing car insurance quotes for the same type and amount of coverage.
5. Consider car insurance company reviews. The cheapest car insurance isn’t always the best. Read expert car insurance reviews online and get feedback from friends, family or coworkers about their car insurance to help you determine the best insurer for your needs.

How much does car insurance cost?

The average annual car insurance rate for good drivers is $2,026, or about $169 per month according to our analysis. Other drivers, such as those with a moving violation on their record or teens and seniors, may pay more.

Average cost of car insurance per month

^{USAA car insurance is only available to members of the military, veterans and their families.}

Factors that impact the cost of car insurance

To get the best auto insurance rates, it’s helpful to understand what factors insurers use to determine your premium. Here are several variables that will determine how much you pay for auto insurance.

• Auto insurance deductible amount you choose, when applicable.
• Coverage limits you choose.
• Types of auto insurance you include in your policy, including optional coverages.
• Your age.
• Your car insurance claims history.
• Your car insurance history.
• Your credit-based insurance score (except in California, Hawaii, Massachusetts and Michigan).
• Your gender (except in California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania).
• Your location.
• Your vehicle.

^{Full coverage car insurance rates are based on liability coverage of 100/300/100 ($100,000 in bodily injury liability per person, $300,000 per accident and $100,000 in property damage liability), uninsured motorist coverage and collision and comprehensive insurance with a $500 deductible.}

How to save money on car insurance

Here are some things you can do to save money on car insurance:

• Ask about discounts. Insurers offer car insurance discounts like good driver discounts and bundling home and auto insurance.
• Drive safely. Drivers with a good record and no traffic violations tend to see lower rates.
• Go claims free. Your may get cheaper car insurance rates if you go claims-free for a certain number of years.
• Keep your credit score up. In some states, insurers factor in your credit score when determining how much you’ll pay. The better your credit score, the cheaper your car insurance may be.
• Choose a higher deductible. If you raise your deductible you’ll see lower rates, but your claims payouts will be smaller.
• Shop around. Get and compare car insurance quotes. Do this regularly to make sure you’re getting the best vehicle insurance rates for your needs.
• Consider usage-based car insurance (UBI), especially if you drive infrequently and have strong, safe driving habits. Insurers that offer these programs leverage a device plug-in or app to collect telematics data to determine your rate: speed, mileage, hard braking, acceleration and more. However, take note that some insurers will raise rates with evidence of unsafe driving habits.

Types of car insurance

Most states require motorists to purchase liability car insurance, but depending on where you live and whether you finance your vehicles, you may be required to purchase other types of car insurance. Here are the most common types of car insurance to consider.

Liability car insurance

Liability car insurance covers costs incurred by other drivers and their passengers if you’re at fault for an accident, as well as your legal defense and any judgments or settlements if you are sued. It is broken down into two parts:

• Bodily injury (BI) liability covers the cost of medical care and related expenses incurred by the other driver, their passengers or a pedestrian injured in an accident you caused. It can also cover your legal expenses if you’re sued after an accident.
• Property damage (PD) liability covers the cost to repair or replace another individual's property, such as their vehicle, that was damaged after an accident you caused.

Some level of liability insurance is required in every state except New Hampshire and Virginia. Even drivers in those states may find they still need coverage in certain situations.

Uninsured motorist/underinsured motorist insurance

Uninsured motorist (UM) insurance covers you and your passengers if you’re injured in an accident caused by an uninsured driver or if you are the victim of a hit-and-run. In some states, uninsured motorist insurance may cover the cost to repair or replace your vehicle if it was damaged in an accident caused by an uninsured driver.

Underinsured motorist (UIM) insurance offers similar coverage if you’re in an accident with a driver who doesn’t carry enough insurance to cover accident-related costs.

UM coverage is required in some states, but many insurance experts highly recommend adding it to your auto insurance policy even if it is not required in your state.

Collision car insurance

Collision insurance pays to repair or replace your vehicle if it was damaged after “colliding” with an object, such as a vehicle, fence or tree. It can also provide coverage if you are involved in a hit-and-run or a roll-over accident.

There are no states that require collision coverage, but your lender or lessor may require it if you finance your car. It is typically bundled with comprehensive car insurance.

Comprehensive car insurance

Comprehensive car insurance coverage reimburses you for losses from theft, as well as damage caused by an event other than a crash. This includes damage from hail, flooding, fire, vandalism, theft, collision with an animal or falling objects, such as rocks or tree limbs. Generally, it covers damage caused by an incident that you could not have prepared for or prevented.

Like collision coverage, comprehensive car insurance isn’t required at the state level but is often necessary if you finance your vehicle.

Your coverage needs to change over time. Find out when it makes sense to drop collision or comprehensive coverage.

Personal injury protection

Personal injury protection (PIP) will cover accident-related medical bills for you, your passengers and family members in your household, regardless of who is at fault for the accident. It can also cover lost wages and the cost of everyday services, like childcare, if an accident leaves you or your passengers unable to complete the task.

PIP is usually required in “no-fault” or “choice no-fault” states and unavailable in others.

Medical payments coverage

Medical payments coverage, commonly called MedPay, covers accident-related medical bills for you and your passengers, regardless of who is at fault. This can include the cost of doctor visits, ambulance services, X-rays, surgery and funeral fees.

MedPay, which is required in some states, is similar to PIP, but coverage is limited to medical expenses. It will not cover lost wages or replacement services.

Gap insurance

If you finance or lease a vehicle and it’s totaled in an accident (or stolen), gap insurance covers the difference between the market value of your vehicle and the actual balance on your auto loan. Though there are no laws that require you carry gap insurance, your lender or leasing company may require it.

How much car insurance do I need?

How much car insurance you need will depend on:

• The minimum amount of car insurance required by your state. This information should be available on your state’s Department of Motor Vehicles or Registry of Motor Vehicles. You can also check out our guide to car insurance needs and requirements.
• Coverage requirements that are part of a finance or lease agreement. If you lease or finance your vehicle, your lender or lessor will likely require you to carry full coverage car insurance (which includes liability, collision and comprehensive coverage) up to a specified limit.
• Enough coverage to cover your assets. If you don’t have enough car insurance, you can end up paying out of pocket for damages. Depending on where you live, you also may face legal ramifications if you’re at fault for an accident but don’t carry enough car insurance.

Related: How does car insurance work?

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Editor’s Note:This article contains updated information from previously published stories:

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