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Best car insurance companies for August 2022

Updated Aug 10, 2022
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Summary: Best car insurance companies

To determine which auto insurance is best, we used our proprietary Bankrate Score research method. This analysis takes into account three main categories of factors:

  1. Average rates and third party scores
  2. Online and digital policy management
  3. State availability and eligibility requirements

We chose these metrics specifically to develop a well-rounded review. Our methodology uniquely helps you get a robust view of each carrier, rather than just focusing on the price. Our extensive research revealed that these 11 insurers are some of the best car insurance companies available:

Company Average annual full coverage premium Best for Bankrate Score
USAA $1,209 Best overall car insurance company 5.0/5.0
Clearcover* N/A Best for digital presence 5.0/5.0
Geico $1,297 Best for driving incidents 4.7/5.0
State Farm $1,397 Best overall car insurance company 4.7/5.0
Travelers $1,447 Best for personalized coverage 4.7/5.0
Erie $1,321 Best for robust coverage 4.6/5.0
Auto-Owners $1,305 Best for discounts 4.5/5.0
Amica $1,495 Best for claims satisfaction 4.5/5.0
Nationwide $1,383 Best for coverage on a budget 4.4/5.0
Progressive $1,561 Best for digital policy management 4.4/5.0
Allstate $2,438 Best for high-value cars 4.0/5.0

*Overall standing affected by limited data availability.

Best car insurance company overall

JD Power:
909 /1,000
AM best:
A ++
Avg. annual premium for minimum coverage:
$ 354
Avg annual premium for full coverage:
$ 1209

Why this company made our list: With the highest possible Bankrate Score, USAA easily makes our list of best insurance companies for nationwide availability and top tier customer service. Although only available to active-duty military, veterans and their eligible family members, USAA is a top scorer in J.D. Power customer satisfaction surveys, has impeccable financial strength as rated by AM Best, S&P and Moody’s, and still manages to provide some of the lowest-priced auto insurance quotes in the industry.

Why USAA is best overall for car insurance: USAA earns top marks from all major third-party rating agencies for customer service and financial strength. Coupled with having the lowest average full and minimum coverage premiums on our list, USAA is a powerhouse. Customers have access to multiple coverage options, rewards and discounts, including unique circumstances like deployment for active-duty members. While not all drivers qualify for coverage from USAA, the company is a standout for millions of military families across the country.

Best car insurance company for digital presence

JD Power:
N/A
AM best:
A -
Avg. annual premium for minimum coverage:
N/A
Avg annual premium for full coverage:
N/A

Why this company made our list: Clearcover’s technology-driven car insurance is reinventing the insurance landscape, making it a clear contender for any driver seeking the best modern auto insurance experience compared to other car insurance companies. The insurtech company’s digital approach allows it to sell highly affordable policies and compete with traditional auto insurers.

Why Clearcover is best for digital presence: Although only currently available to drivers in 20 states, Clearcover is disrupting the auto insurance market by putting technology in the spotlight. The carrier uses artificial intelligence-based digital tools to its advantage, revamping how car insurance is quoted, purchased and serviced. Clearcover’s highly-rated mobile app puts control over managing policies directly in users’ hands. The streamlined approach enables Clearcover to pay most auto claims in less than a week, with some even being eligible for same-day processing, which is much faster than industry standards.

Best car insurance company for driving incidents

JD Power:
881 /1,000
AM best:
A ++
Avg. annual premium for minimum coverage:
$ 354
Avg annual premium for full coverage:
$ 1297

Why this company made our list: Geico’s long history as a trusted, household-name auto insurer is reflected in its high Bankrate Score and is one of the reasons we included it as a top company. Coverage is available for virtually every type of driver, making its car insurance coverage accessible even for consumers with blemished driving histories.

Why Geico is best for driving incidents: Geico is one of the few top auto insurance companies that will write policies for drivers even after high-risk incidents, such as DUI convictions. While high-risk policies are generally more expensive, a high-risk driver may also have a harder time finding coverage, especially from major car insurance companies. Geico is an easily-accessible option for most people.

Best car insurance company overall

JD Power:
892 /1,000
AM best:
A ++
Avg. annual premium for minimum coverage:
$ 456
Avg annual premium for full coverage:
$ 1397

Why this company made our list: As the largest national auto insurer based on market share, State Farm's reach and reputation highlight the carrier as one of the best auto insurance companies for drivers in most states. Its extensive local agent network showcases its customer-first approach to providing a variety of personal and commercial insurance products to consumers.

Why State Farm is best overall for car insurance: State Farm company boasts over 19,000 licensed insurance professionals, available in communities across the U.S., who can offer guidance to those who value expert insight when discussing their policy. Digital management options allow for an on-the-go approach, including a highly-rated mobile app where you can file auto claims and contact your agent.

Best car insurance company for personalized coverage

JD Power:
871 /1,000
AM best:
A ++
Avg. annual premium for minimum coverage:
$ 477
Avg annual premium for full coverage:
$ 1447

Why this company made our list: Travelers is a trusted insurer with over 150 years in the auto insurance industry. Its strong independent agent network, numerous endorsement options, robust savings opportunities and proven financial track record make it a worthwhile option for drivers nationwide.

Why Travelers is best for personalized coverage: Travelers’ isn’t the cheapest carrier on our list, but that could be because the carrier offers so many ways to customize your coverage to your specific needs. Options like new car replacement, accident forgiveness, rideshare coverage and gap coverage will add more premium to your policy but will also give you financial protection for a broader range of incidents. Travelers’ claims satisfaction is not as highly ranked by customers compared to other companies Bankrate analyzed, which may be worth considering before you purchase a policy.

Best car insurance company for robust coverage

JD Power:
901 /1,000
AM best:
A +
Avg. annual premium for minimum coverage:
$ 476
Avg annual premium for full coverage:
$ 1321

Why this company made our list: We included Erie on our list of the best auto insurance companies because this regional insurer is generous with optional coverage types in its policies and scores competitively across all third-party agencies reviewed in our research. Erie also offers discount advantages and competitive rates for young drivers who normally see the highest rates of all driver age groups. Erie’s high Bankrate Score contributes to its position on our list of best auto insurance companies for 2022, although coverage is not available nationally.

Why Erie is best for robust coverage: Erie automatically includes several coverage types and features in its full coverage policies that many competitors only offer as optional add-ons. Drivers can benefit from included rideshare insurance, accident forgiveness and Erie’s Rate Lock feature, which could help keep your premiums consistent over time. While only available in 12 states, the company provides robust coverage and a strong claims experience for drivers in its service areas.

Best car insurance company for discounts

JD Power:
878 /1,000
AM best:
A ++
Avg. annual premium for minimum coverage:
$ 325
Avg annual premium for full coverage:
$ 1305

Why this company made our list: Auto-Owners is another carrier with a strong reputation for providing excellent auto coverage and earned the second-highest J.D. Power claims satisfaction rates of any company on our list of best auto insurance companies. Its wide range of coverage and discount options are available to drivers in 26 states through a distribution network of independent agents.

Why Auto-Owners is best for discounts: Auto-Owners offers an impressive menu of 12 discounts, which many drivers are likely eligible to receive. Drivers could save by getting a quote ahead of their current policy’s expiration, or by opting for paperless billing and payment options. The company provides three types of student discounts, making it a great option for parents of teens or young drivers who have their own policy to consider.

Best car insurance company for claims satisfaction

JD Power:
895 /1,000
AM best:
A +
Avg. annual premium for minimum coverage:
$ 444
Avg annual premium for full coverage:
$ 1495

Why this company made our list: Amica’s exceptional claims service and customer-centric business model make it a standout choice, based on Bankrate’s analysis, for drivers seeking the best auto insurance company.

Why Amica is best for claims satisfaction: Amica ranks as the second-highest scoring carrier for claims satisfaction out of the top auto insurers surveyed by J.D. Power, earning 32 points above the industry average. The company’s online claim center allows customers to easily report a claim, upload supporting documents and track the claim’s process with a few simple clicks. Its customer representatives are available to support policyholders 24/7.

Best car insurance company for coverage on a budget

JD Power:
876 /1,000
AM best:
A +
Avg. annual premium for minimum coverage:
$ 549
Avg annual premium for full coverage:
$ 1383

Why this company made our list: Nationwide’s options to tailor coverage based on personal needs in addition to its low average premium solidify it as a top auto insurance company for 2022, based on Bankrate’s research. With near-nationwide availability and a website full of useful insurance information, Nationwide makes it easy to customize a policy to your needs.

Why Nationwide is best for coverage on a budget: Nationwide’s average annual premium is well below the national average. Additionally, the carrier’s SmartRide and SmartMiles telematics programs can help you either earn a discount based on your safe driving habits or provide a flexible premium based on your vehicle usage, respectively. Optional coverage is not as plentiful as some other auto insurers on our list, but personalized options offer valuable control over your financial protection.

Best car insurance company for digital policy management

JD Power:
862 /1,000
AM best:
A +
Avg. annual premium for minimum coverage:
$ 542
Avg annual premium for full coverage:
$ 1561

Why this company made our list: Progressive’s handy rate tools and positive customer satisfaction help secure it as one of our best auto insurance selections. Consumers can find options to save based on their own budget and driving habits with a Progressive policy anywhere in the U.S., backed by a financially strong company that earns high ratings from third-party agencies.

Why Progressive is best for digital policy management: Progressive provides several ways for drivers to save time and money by managing their policy online, such as its Snapshot app, which is a usage-based telematics program that monitors driving and offers discounts for safe driving. Even when first deciding what is the right policy for you, you can use its online Name Your Price tool to personalize your buying experience and review coverage options based on your budget. The Progressive mobile app offers instant access to review coverage, ID cards, bill payment and claims submissions.

Best car insurance company for high-value cars

JD Power:
870 /1,000
AM best:
A +
Avg. annual premium for minimum coverage:
$ 558
Avg annual premium for full coverage:
$ 2438

Why this company made our list: As the fourth-largest auto insurer based on market share, Allstate has a long list of valuable coverage options that make it a standout option for many drivers, but especially for those with unique vehicles. Allstate’s rewards program adds additional benefits, allowing drivers to earn points toward hotels, gift cards and other great perks.

Why Allstate is best for high-value cars: Allstate is one of the few insurers that offer coverage for custom equipment. The company’s full coverage policies have a higher average cost compared to other carriers on Bankrate’s list, but drivers who have invested money into modifying their vehicles with the best sound equipment likely need more extensive coverage, which Allstate provides. Classic and antique car collectors can opt for Allstate’s classic car insurance so the vehicle’s higher intrinsic value is accounted for in case of costly damage.

How much does car insurance cost?

On average, full coverage costs $1,771 per year and minimum coverage costs $545 per year in the United States. A “full coverage” policy is one that includes both collision coverage and comprehensive coverage, while “minimum coverage” means a policy with just a state’s minimum required coverage types and limits. Average rates can be helpful, but it’s important to know that rates vary based on a number of personal rating factors, so you’ll likely have a different premium.

Company Average annual full coverage premium Average monthly full coverage premium
Allstate $2,438 $203
American Family $1,627 $136
Amica $1,495 $125
Auto-Owners $1,305 $109
Erie $1,321 $110
Farmers $1,524 $127
Geico $1,297 $108
Mercury $1,483 $124
Nationwide $1,383 $115
Progressive $1,561 $130
State Farm $1,397 $116
The Hartford $2,002 $167
Travelers $1,447 $121
USAA $1,209 $101

*Rates are based on average 40-year-old male and female rates, who are good drivers

How driving affects your car insurance costs

Because insurance prices are based on risk, having accidents, tickets, lapses in coverage or other incidents on your driving record usually means you'll pay a higher rate. The table below illustrates the average full coverage rates for various driving incidents.

Drivers with... Average annual full coverage premium
A lapse in coverage $1,949
One speeding ticket $2,138
One at-fault accident $2,521
One DUI conviction $3,421
Poor credit $3,002

Guide to shopping for the best car insurance rates

Understand the different types of car insurance

One of the first steps to finding the best auto insurance for you is to understand your needs, and that starts with knowing how car insurance works. There are several different types of car insurance coverage. Understanding the main types of car insurance coverage could help you decide which options are right for you.

  • Bodily injury liability coverage pays for the injuries you cause to others in an at-fault accident.
  • Property damage liability coverage pays for the damage you cause to another’s vehicle or other property (like a fence, pole or building) in an at-fault accident.
  • Uninsured and underinsured motorist coverage pay for injury and damage caused by a driver who either lacks sufficient coverage or any coverage at all.
  • Personal injury protection (PIP), also known as no-fault insurance and offered only in certain states, pays for medical expenses you and your passengers incur following an accident, regardless of fault. It also accounts for non-medical expenses incurred as a result of an accident, such as lost wages or the cost of childcare. PIP is typically required in no-fault states.
  • Medical payments coverage is similar to PIP insurance coverage but includes only payments for medical expenses. It is required in some states and optional in others.
  • Comprehensive coverage pays for damage to your car caused by non-collision losses like fire, theft, vandalism and storm damage. Comprehensive also pays for damages caused by hitting an animal and cracked windshields.
  • Collision coverage pays for damages to your vehicle caused by a collision. If you collide with another car, tree, pole, building or pedestrian, your collision coverage is the part of the policy that will pay for the damage to your vehicle.

However, there are more types of car insurance coverage available to you that may be worth discussing with your insurer. Additionally, each state has its own car insurance laws, and each driver has a unique situation. Talking with a licensed agent can help you determine the best auto insurance coverage types and limits for your needs.

Know what factors affect your car insurance cost

In addition to the coverage types and levels you choose, other factors will significantly influence your final insurance cost. For many drivers, the premium is a major factor in choosing the best auto insurance companies. Insurers base car insurance rates on a perceived level of risk, which means that the following factors (and more) can impact your premium:

  • Driving record: If you have a history of at-fault accidents, tickets or DUI convictions, you’ll likely pay more for coverage.
  • Age and driving experience: Younger drivers tend to have less experience on the road, which means they have a higher accident frequency, leading to higher rates based on insurers’ risk assessments. Hawaii and Massachusetts ban the use of age as a rating factor.
  • State and city: Different states have different insurance laws, accident statistics, crime rates and costs of living. Even your city and ZIP code (in most states) can influence how much you pay.
  • Coverage types and levels: Choosing fewer coverage types and lower limits will generally mean a lower premium, but it also means less financial protection and higher out-of-pocket costs if you have an accident.
  • Vehicle make and model: Each make and model of vehicle has unique features which impact the likelihood of accidents, the severity of accidents and the cost to repair the vehicle itself. Because of this, each vehicle will cost a different amount to insure.
  • Credit-based insurance score: In most states, elements of your credit history are used to determine how likely you are to file a claim. Drivers with lower credit scores generally pay higher premiums.
  • Insurance lapse history: Because most states require drivers to have at least minimum levels of coverage, lapses in insurance can result in higher premiums when you take out a policy again.

Learn how to find the best rates on car insurance

Although you can’t control some of the factors that are used to determine your car insurance rate, there are a few things you can do to help secure a competitive rate:

  1. Shop around: Car insurance companies use unique rating algorithms to determine your premium, so you’ll get a different rate with each carrier.
  2. Utilize discounts: You may find a lower rate if you get a quote from a company that offers several discounts you can apply to your policy.
  3. Participate in a telematics program: Telematics discounts are programs that track your driving habits. If you are a safe driver, you could save on your premium.
  4. Keep a clean driving record: At-fault accidents and tickets are signs that you may engage in risky driving behaviors and can significantly increase your rates.
  5. Consider your vehicle: While not the most practical step for everyone, you could consider shopping for a different vehicle if you need to lower your rates drastically.
  6. Set realistic expectations: For example, if you have a DUI conviction on your record, your version of a competitive premium is likely to be higher than someone with a clean driving record.

Best auto insurance companies by state

Knowing the average cost of car insurance in your state could help you know if you are paying too much or too little and might help you find the best auto insurance rates. Keep in mind that rates vary by more factors than just location. While these average rates can be used as a guide, your premium will vary based on your unique set of circumstances.

State Average annual cost for full coverage insurance Average annual cost for full coverage insurance
Alabama $1,760 $147
Alaska $1,770 $148
Arizona $1,743 $145
Arkansas $1,806 $151
California $2,190 $183
Colorado $2,019 $168
Connecticut $1,533 $128
Delaware $1,963 $164
Florida $2,762 $230
Georgia $2,009 $167
Hawaii $1,206 $101
Idaho $1,065 $89
Illinois $1,548 $129
Indiana $1,242 $104
Iowa $1,254 $105
Kansas $1,802 $150
Kentucky $1,954 $163
Louisiana $2,864 $239
Maine $876 $73
Maryland $1,931 $161
Massachusetts $1,296 $108
Michigan $2,345 $195
Minnesota $1,692 $141
Mississippi $1,701 $142
Missouri $1,893 $158
Montana $1,795 $150
Nebraska $1,538 $128
Nevada $2,426 $202
New Hampshire $1,182 $99
New Jersey $1,891 $158
New Mexico $1,489 $124
New York $2,996 $250
North Carolina $1,392 $116
North Dakota $1,225 $102
Ohio $1,200 $100
Oklahoma $1,902 $159
Oregon $1,371 $114
Pennsylvania $2,002 $167
Rhode Island $1,847 $154
South Carolina $1,464 $122
South Dakota $1,542 $129
Tennessee $1,383 $115
Texas $1,868 $156
Utah $1,449 $121
Vermont $1,000 $83
Virginia $1,347 $112
Washington $1,313 $109
Washington, D.C. $1,948 $162
West Virginia $1,527 $127
Wisconsin $1,249 $104
Wyoming $1,510 $126
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Survey: Majority of drivers worry they can’t afford their deductible

Certain car insurance coverage types have a deductible, which is the amount you will pay out of pocket if you file a claim. The most common deductibles are for comprehensive and collision coverage, which pays for damages to your vehicle. Bankrate's 2020 survey found that many younger respondents don’t fully understand how deductibles work and are worried they cannot afford their deductible in case of a claim.

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Key survey insights
  • Almost 40% of Gen Zers (ages 18-23) and over 20% of Younger Millennials (ages 24-30) said they don’t know what an insurance deductible is.
  • Fewer than 30% of Gen Z and Younger Millennials respondents knew their deductible amount.
  • Many drivers choose a comprehensive and collision deductible of $500 or $1,000.
  • Over 50% of people from various generational breakouts (ages 18-55) said they are worried they wouldn’t be able to cover the all-in costs if they were to file a claim.
  • If you would struggle to afford to pay your deductibles, that can be a good sign that you need to choose a lower option, even though it can mean slightly higher premiums.

With all of this in mind, here are some steps you can take to reassess your car insurance coverage to help determine if you need comprehensive and collision coverage, and if so, at what deductibles:

  1. Refresh your knowledge. Before adding collision and comprehensive coverage to your car insurance, know what they are and how they work.
  2. Consider your circumstances. While collision and comprehensive aren't required by law, your lender may require you to purchase them if you make payments on your vehicle. If you own your vehicle, consider its age and current market value, how often you drive, your area's crime risk and whether you could pay the cost to repair or replace your vehicle after an accident when deciding if you should carry these coverage types on your policy.
  3. Choose a deductible amount. Choose a deductible amount. When choosing a deductible, pick an amount you could reasonably pay out of pocket and keep your car insurance premium affordable. Typical deductible amounts are $250, $500 and $1,000. The higher your deductible, the lower your policy premium, although you won’t know the full impact until you request a quote.

Frequently asked questions about shopping for car insurance

Our methodology

To provide an easy-to-use shopping and comparison tool for consumers, we calculated a Bankrate Score out of 5.0 total points. The higher a company’s Bankrate Score, the more competitively that company ranked in each scoring category. Our picks highlight auto insurers that:

  • Generate a 4.0 or higher Bankrate Score
  • Earn a J.D. Power claims satisfaction score within 20 points of the industry average or higher in the 2021 U.S. Auto Claims Satisfaction Study
  • Carry an “Excellent” or “Superior” financial strength rating from AM Best
  • Have a strong digital presence with a consumer-friendly mobile app or digital policy management features
  • Are deemed by Bankrate to be the best in a particular market category
Rates methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

J.D. Power scores

J.D. Power is a global market research company that has decades of experience within the automotive, financial and health industries, among others. It conducts annual surveys on customer satisfaction across these sectors to help provide insight into the qualities that matter most between consumers and businesses. Its auto insurance studies take into account customer satisfaction across several categories that impact consumers, including customer service, claims processing, policy offerings and premiums, which make its scores a useful qualitative tool in assessing auto insurers.

Bankrate Score

Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially sound company with a history of positive customer support and claims-paying ability. In our evaluation, third-party ratings from J.D. Power, AM Best, Standard & Poor’s, National Association of Insurance Commissioners and Moodys had a significant impact on the companies’ Bankrate Scores.

Our top picks for “best for” reflect a combination of Bankrate Scores and availability to drivers around the country, in addition to the specific qualities associated with each company.

*Scores reflect the company’s performance in states available.

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Written by
Cate Deventer
Insurance Writer & Editor
Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent.
Edited by Managing Editor
Reviewed by Director of corporate communications, Insurance Information Institute