Best car insurance companies for July 2025

The best car insurance companies in 2025

There is a lot to consider when choosing the best car insurance company. Aside from affordability, you should think about coverage types, discounts, customer service, digital tools, added perks and other factors specific to your coverage needs and preferences. To help you choose the best carrier, Bankrate's insurance editorial team considered these metrics plus carrier availability and compiled this information into our proprietary Bankrate Scores to narrow down a list of the top 10 car insurance companies. We've highlighted standout features from each company to help you decide which insurer might be right for you.

Amica

Progressive

Geico

Safeco

Auto-Owners

State Farm

USAA

Liberty Mutual

Travelers

Nationwide

While we stand by our picks for the top car insurance companies on a national level, it is important to know that the best insurers will vary by state. To determine the best auto insurance company in your state, you’ll want to look at more than just each carrier’s average cost of car insurance. 

Although average price is important, third-party customer satisfaction scores can vary widely between regions. This means that one company might shine in one part of the country but not fare as well in another. To help you find the best car insurance in your state, Bankrate conducted extensive research into the car insurance markets in all 50 states and Washington, D.C. and evaluated the largest carriers by market share using our proprietary Bankrate Score method. 

Car insurance rates by state

To assist our readers no matter where they live, we’ve created the interactive map below of car insurance rates by state. With an understanding of the average rates in your state, you can get a better idea of what’s considered a normal price range for your policy.

Car insurance industry trends: Premium increases slow down, but don’t decline

Full coverage car insurance premiums average $2,677 per year in July 2025, and while rate increases have slowed, don't anticipate a rate reduction any time soon. 

Car insurance premiums and auto industry costs are closely intertwined. When the cost of materials and technology related to building cars increases, the cost to repair and replace the vehicle when damaged in an accident increases, causing car insurance rates to rise for policyholders. According to Bankrate’s analysis of Bureau of Labor Statistics data, the cost of motor vehicle repairs was 48.7 percent higher in September 2024 than in February 2020.

High levels of vehicle theft also contributed to the increase in car insurance costs in recent years. In 2024, more than 850,000 vehicles were stolen across the United States, contributing to over $8 billion in losses for vehicle owners. Due to this increased risk, insurers often raise comprehensive coverage costs to account for the higher likelihood of theft-related claims.

Auto insurance industry trends to keep an eye on in 2025

However, the spike in post-pandemic car crash fatalities has started to decline. Since insurance companies were approved for significant rate increases over the past few years, many carriers may be near rate adequacy. This means that 2025 may usher in a time of rate stabilization, but there are no guarantees. The insurance industry is composed of several moving parts, and a sudden increase in risk or loss in any of the following situations could destabilize the market yet again:

• Increases in third-party litigation
• Increases in social inflation
• Continued increases in the cost of vehicle parts and labor
• Continued increases in the cost of medical care
• Rise in extreme weather and vehicle theft claims

Bankrate will continue to stay on top of the latest insurance news and industry trends to help you navigate this constantly changing environment. 

What are the different types of car insurance?

One of the first steps to finding the best auto insurance for you is to understand your needs. That starts with learning about the key coverage options available and how these options work together to provide financial protection. 

• Bodily injury liability coverage helps pay for injuries incurred by the other driver and their passengers in an at-fault accident. Almost all states in the U.S. require you to carry bodily injury and property damage liability insurance in order to drive legally.
• Property damage liability coverage helps pay for repairs to the other driver's car or any property you damage in an accident that you are found to have caused. This may include stationary objects such as fences or lampposts.
• Uninsured and underinsured motorist coverage helps pay for your injuries (and, in some states, your property damage) if it was 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 only available 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. 
• 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 is for a broad range of non-collision-related damage. This can include vehicle theft, fire, weather damage and more. Comprehensive coverage can also help if you hit an animal. 
• Collision coverage helps cover damage to your vehicle if you’re involved in a collision, whether you hit another vehicle, a stationary object or a pedestrian. 

While the main types of car insurance coverage are listed above, every carrier is different and may offer unique or specialized coverage options. For instance, if you purchase a brand-new vehicle, you may be interested in new car replacement coverage. Or, if the roads near you are full of potholes that could pop your tire, roadside assistance might be worth looking into.  Speaking with your agent and reviewing your options online can help you find coverage tailored to your needs. 

Minimum vs. full coverage car insurance

Minimum and full coverage insurance are terms commonly used to describe an auto insurance policy. Understanding the vast distinction between the two is paramount when searching for the right levels of financial protection. 

Minimal coverage refers to a bare-bones policy that carries only the state-mandated insurance limits. Typically, this includes only bodily injury and property damage liability at the lowest limits allowed, but depending on state coverage requirements can also include other coverage types, such as personal injury protection. This option covers damage to others up to the policy limit but does not pay for damage to your vehicle if you are at fault for an accident, which is one reason it is usually the cheapest available option.

A policy with liability limits higher than the state requires but without physical damage coverage, would be considered a liability-only policy instead of a minimal coverage policy.

Full coverage insurance includes liability coverage plus comprehensive and collision coverage. The limit of liability can range from state minimums up to the highest option available by the insurance provider, but the key difference is that a full coverage policy provides financial protection for your vehicle whether you are at fault for an accident, a victim of theft or vandalism or experience weather damage. 

Since there isn't an industry-standard definition of full coverage, some insurance providers may add roadside assistance, gap insurance and rental reimbursement to your policy if you request full coverage, so work closely with your agent and read your paperwork carefully to avoid paying for more coverage than you need. 

Should you get minimum or full coverage car insurance? 

The right coverage amount for you will strike a balance between how much you can reasonably afford for your policy and how much financial risk you’re willing to assume. If you're mostly concerned with getting a cheap premium, then a minimum coverage car insurance policy might work best for you: it meets your state’s legal insurance requirements and almost always costs less than full coverage. Plus, minimum coverage could be the best insurance for older cars or ones near the end of their driveable years. However, with minimum coverage, you could wind up with significantly higher out-of-pocket costs after an accident. This kind of car insurance only helps pay for the damage you cause in an accident. If you’re at fault for an accident and there’s damage done to your vehicle, you would be left footing the bill on your own.

A full coverage car insurance policy will increase your premium, but it comes with broader protection for your vehicle and finances. Vehicle repairs and medical expenses after an accident can get expensive fast, and purchasing more car insurance coverage can act as a valuable financial safety net. Bankrate found that only 44 percent of U.S. adults are able to spend $1,000 or more from their emergency savings. With that in mind, many insurance experts suggest opting for full coverage or at least purchasing higher liability limits than the state minimums.

How much does car insurance cost?

Proprietary data from Quadrant Information Services indicate that the national average cost of car insurance currently sits at $2,677 per year for a full coverage policy and $807 for minimum coverage. However, these figures are just a baseline. Using Bankrate’s car insurance calculator can give you a general idea of what your car insurance budget should be. But keep in mind that car insurance is highly individualized, and rates vary based on numerous personal factors.

Location is just one of those factors. In general, states that pose higher risks for filing claims (whether that is due to elevated levels of vehicle theft, extreme weather, traffic congestion, poor highway infrastructure or something else) will likely see higher average car insurance rates. 

Driving incidents can also affect the total cost of your car insurance. Drivers with speeding tickets could see their premiums cost more compared to drivers with clean records. Your state’s laws and your age, gender and credit history can also determine how much you pay for car insurance. For a more specific overview, you might want to research the average insurance cost in your state.

Frequently asked questions