Best car insurance companies for August 2022

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:

*Overall standing affected by limited data availability.

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.

*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.

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.

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.

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.