Skip to Main Content

Best car insurance companies for February 2024

Geico, Amica and Progressive are among the best car insurance companies in 2024, according to Bankrate’s research.

Updated Feb 08, 2024
Powered by Coverage.com (NPN: 19966249)

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

COMPARE CAR INSURANCE RATES

Answer a few questions and compare custom auto insurance rates today.

Location-Icon
Explore offers from trusted carriers
+ MORE

The best car insurance companies in 2024

The best car insurance companies offer rates, coverage options, discounts, third-party scores and digital tools that fit your individual needs. Our research revealed that these 10 insurers are some of the best car insurance companies available. We’ve highlighted each company’s standout feature to help you decide which insurer fits your specific needs. Your car insurance needs are unique to your situation, so understanding those needs when comparing auto insurance companies can be an important step to finding the best rates and coverage.

Insurance company Best for
Bankrate Score
Info
Best overall
4.6
Rating: 4.6 stars out of 5
Best overall
4.4
Rating: 4.4 stars out of 5
Best for digital policy management
4.4
Rating: 4.4 stars out of 5
Best for added perks
4.3
Rating: 4.3 stars out of 5
Best for discounts
4.3
Rating: 4.3 stars out of 5
Best for local agencies
4.3
Rating: 4.3 stars out of 5
Best for personalized coverage
4.2
Rating: 4.2 stars out of 5
Best for military-focused coverage
4.2
Rating: 4.2 stars out of 5
NJM
Best for coverage on a budget
4.0
Rating: 4 stars out of 5
Best for bundling numerous discounts
3.8
Rating: 3.8 stars out of 5
Best for local agencies
4.3
Rating: 4.3 stars out of 5
Best for personalized coverage
4.2
Rating: 4.2 stars out of 5
Best for military-focused coverage
4.2
Rating: 4.2 stars out of 5
NJM
Best for coverage on a budget
4.0
Rating: 4 stars out of 5
Best for bundling numerous discounts
3.8
Rating: 3.8 stars out of 5
Powered by Coverage.com (NPN: 19966249)
Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Amica

Awards

Best auto insurance company overall (tie)

4.6

Rating: 4.6 stars out of 5

Avg. full coverage premium

$211/mo

Avg. full coverage premium

$2,530/yr

Customer satisfaction

903/1,000

Geico

Awards

Best auto insurance company overall (tie)

4.4

Rating: 4.4 stars out of 5

Avg. full coverage premium

$145/mo

Avg. full coverage premium

$1,735/yr

Customer satisfaction

874/1,000

Progressive

Awards

Best car insurance company for high-risk drivers

4.4

Rating: 4.4 stars out of 5

Avg. full coverage premium

$170/mo

Avg. full coverage premium

$2,044/yr

Customer satisfaction

861/1,000

Safeco

Best for added perks

4.3

Rating: 4.3 stars out of 5

Avg. full coverage premium

Not available

Avg. full coverage premium

Not available

Customer satisfaction

865/1,000

Auto-Owners

Awards

Best budget auto insurance company (tie)

4.3

Rating: 4.3 stars out of 5

Avg. full coverage premium

$137/mo

Avg. full coverage premium

$1,646/yr

Customer satisfaction

865/1,000

State Farm

Best for local agents

4.3

Rating: 4.3 stars out of 5

Avg. full coverage premium

$187/mo

Avg. full coverage premium

$2,248/yr

Customer satisfaction

882/1,000

Travelers

Best for personalized coverage

4.2

Rating: 4.2 stars out of 5

Avg. full coverage premium

$147/mo

Avg. full coverage premium

$1,761/yr

Customer satisfaction

854/1,000

USAA

Best for military-focused coverage

4.2

Rating: 4.2 stars out of 5

Avg. full coverage premium

$140/mo

Avg. full coverage premium

$1,683/yr

Customer satisfaction

890/1,000

NJM

Best for coverage on a budget

4

Rating: 4 stars out of 5

Avg. full coverage premium

$113/mo

Avg. full coverage premium

$1,358/yr

Customer satisfaction

896/1,000

Liberty Mutual

Best for bundling numerous products

3.8

Rating: 3.8 stars out of 5

Avg. full coverage premium

Not available

Avg. full coverage premium

Not available

Customer satisfaction

870/1,000

How Bankrate picked the best auto insurance companies

We used our car insurance expertise and extensive data to assess the insurance industry's landscape and provide an easy-to-use shopping and comparison tool for consumers. Along with reviewing each company’s coverage options, discount opportunities, digital features and third-party scores, we obtained up-to-date average rate information for both full and minimum coverage from Quadrant Information Services. We combined this information into 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 3.5 or higher Bankrate Score
  • Earn a J.D. Power claims satisfaction score within 20 points of the industry average or higher in the 2023 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’s insurance review to be the best in a particular market category
Bankrate logo

Why you can trust Bankrate

Read our full methodology

To help you find the best car insurance company, Bankrate’s insurance editorial team reviewed some of the largest insurers by market share. We based our picks on a well-rounded analysis of several metrics related to each company. Our review also highlights standout discounts to help drivers understand how to optimize their insurance rates. Keep in mind, though, that discount amounts and eligibility requirements vary based on state regulations, driver profiles and the company you choose.

46

years of industry expertise

122

carriers reviewed

20.7K

ZIP codes examined

1.2M

quotes analyzed

What is the best car insurance company?

Awards

Best auto insurance company overall (tie)

Geico

Geico

Learn more in our Bankrate review
Highlights Long list of discounts Robust digital tools Available nationwide

Why they won

Geico falls just four points behind Amica on J.D. Power’s Digital Experience Study for Service and allows policyholders several self-service options online, via the app and over the phone. For policyholders needing flexibility, Geico has nationwide availability and offers policies to a wide range of drivers, from those in preferred tier groups to drivers with more challenging driving histories. Along with standard discounts, Geico has more unique savings opportunities than most other carriers. 

Top features

  • Vast unique discount options
  • Offers SR-22 filings
  • Easy to navigate self-service options
Awards

Best auto insurance company overall (tie)

Amica

Amica

Learn more in our Bankrate review
Highlights Near-nationwide availability Unique dividend policies High J.D. Power auto claims satisfaction score

Why they won

With the highest Bankrate Score out of all the car insurance companies we reviewed and top ranking in both the J.D. Power 2023 U.S. Auto Claims Satisfaction Study and 2023 U.S. Insurance Digital Experience Study for Service, Amica may be a great choice for drivers who value top-notch customer service. Additionally, Amica tends to have lower average premiums for full coverage policies and is available in every state except Hawaii. You can learn more about Amica by calling 1-800-242-6422 or visiting www.amica.com.

Top features

  • Consistently lower-than-average customer complaints filed on the National Association of Insurance Commissioners (NAIC) Complaint Index
  • Customizable policy options and various discounts
  • Low average premiums for full coverage policies

The best auto insurance companies by state

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 could vary by state. To determine the best auto insurance company in your state, you’ll likely 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. 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. Our research might help you find the best car insurance in your state. 

Car insurance rates by state

To assist our readers no matter where they live, we’ve created the interactive map below. This information can give you a holistic view of car insurance rates per state and may provide a benchmark for you to use to determine how competitive your current premium is. 

Caret DownCaret Up
Avg. annual full coverage premium
$2,207
Avg. annual min. coverage premium
$541
Avg. annual full coverage premium
$2,330
Avg. annual min. coverage premium
$498
Avg. annual full coverage premium
$2,515
Avg. annual min. coverage premium
$795
Avg. annual full coverage premium
$2,193
Avg. annual min. coverage premium
$457
Avg. annual full coverage premium
$2,692
Avg. annual min. coverage premium
$653
Avg. annual full coverage premium
$3,200
Avg. annual min. coverage premium
$650
Avg. annual full coverage premium
$2,187
Avg. annual min. coverage premium
$826
Avg. annual full coverage premium
$2,636
Avg. annual min. coverage premium
$998
Avg. annual full coverage premium
$3,950
Avg. annual min. coverage premium
$1,308
Avg. annual full coverage premium
$2,610
Avg. annual min. coverage premium
$813
Avg. annual full coverage premium
$1,652
Avg. annual min. coverage premium
$415
Avg. annual full coverage premium
$1,425
Avg. annual min. coverage premium
$343
Avg. annual full coverage premium
$2,316
Avg. annual min. coverage premium
$682
Avg. annual full coverage premium
$1,639
Avg. annual min. coverage premium
$424
Avg. annual full coverage premium
$1,683
Avg. annual min. coverage premium
$317
Avg. annual full coverage premium
$2,630
Avg. annual min. coverage premium
$631
Avg. annual full coverage premium
$2,558
Avg. annual min. coverage premium
$771
Avg. annual full coverage premium
$3,626
Avg. annual min. coverage premium
$953
Avg. annual full coverage premium
$1,517
Avg. annual min. coverage premium
$398
Avg. annual full coverage premium
$2,496
Avg. annual min. coverage premium
$984
Avg. annual full coverage premium
$1,646
Avg. annual min. coverage premium
$416
Avg. annual full coverage premium
$3,375
Avg. annual min. coverage premium
$1,210
Avg. annual full coverage premium
$2,044
Avg. annual min. coverage premium
$650
Avg. annual full coverage premium
$2,061
Avg. annual min. coverage premium
$514
Avg. annual full coverage premium
$2,437
Avg. annual min. coverage premium
$610
Avg. annual full coverage premium
$2,228
Avg. annual min. coverage premium
$380
Avg. annual full coverage premium
$1,994
Avg. annual min. coverage premium
$516
Avg. annual full coverage premium
$3,564
Avg. annual min. coverage premium
$1,142
Avg. annual full coverage premium
$1,646
Avg. annual min. coverage premium
$419
Avg. annual full coverage premium
$2,563
Avg. annual min. coverage premium
$1,030
Avg. annual full coverage premium
$2,216
Avg. annual min. coverage premium
$523
Avg. annual full coverage premium
$3,848
Avg. annual min. coverage premium
$1,661
Avg. annual full coverage premium
$1,702
Avg. annual min. coverage premium
$491
Avg. annual full coverage premium
$1,655
Avg. annual min. coverage premium
$362
Avg. annual full coverage premium
$1,530
Avg. annual min. coverage premium
$404
Avg. annual full coverage premium
$2,560
Avg. annual min. coverage premium
$510
Avg. annual full coverage premium
$1,956
Avg. annual min. coverage premium
$789
Avg. annual full coverage premium
$2,791
Avg. annual min. coverage premium
$522
Avg. annual full coverage premium
$2,683
Avg. annual min. coverage premium
$800
Avg. annual full coverage premium
$1,886
Avg. annual min. coverage premium
$657
Avg. annual full coverage premium
$1,939
Avg. annual min. coverage premium
$334
Avg. annual full coverage premium
$1,807
Avg. annual min. coverage premium
$459
Avg. annual full coverage premium
$2,627
Avg. annual min. coverage premium
$697
Avg. annual full coverage premium
$1,942
Avg. annual min. coverage premium
$700
Avg. annual full coverage premium
$1,359
Avg. annual min. coverage premium
$311
Avg. annual full coverage premium
$1,990
Avg. annual min. coverage premium
$677
Avg. annual full coverage premium
$1,674
Avg. annual min. coverage premium
$563
Avg. annual full coverage premium
$1,904
Avg. annual min. coverage premium
$488
Avg. annual full coverage premium
$1,739
Avg. annual min. coverage premium
$425
Avg. annual full coverage premium
$1,581
Avg. annual min. coverage premium
$270
Avg. annual full coverage premium
$2,437
Avg. annual min. coverage premium
$762
Avg. annual full coverage premium
$1,652
Avg. annual min. coverage premium
$415
Avg. annual full coverage premium
$1,425
Avg. annual min. coverage premium
$343
Avg. annual full coverage premium
$2,316
Avg. annual min. coverage premium
$682
Avg. annual full coverage premium
$1,639
Avg. annual min. coverage premium
$424
Avg. annual full coverage premium
$1,683
Avg. annual min. coverage premium
$317
Avg. annual full coverage premium
$2,630
Avg. annual min. coverage premium
$631
Avg. annual full coverage premium
$2,558
Avg. annual min. coverage premium
$771
Avg. annual full coverage premium
$3,626
Avg. annual min. coverage premium
$953
Avg. annual full coverage premium
$1,517
Avg. annual min. coverage premium
$398
Avg. annual full coverage premium
$2,496
Avg. annual min. coverage premium
$984
Avg. annual full coverage premium
$1,646
Avg. annual min. coverage premium
$416
Avg. annual full coverage premium
$3,375
Avg. annual min. coverage premium
$1,210
Avg. annual full coverage premium
$2,044
Avg. annual min. coverage premium
$650
Avg. annual full coverage premium
$2,061
Avg. annual min. coverage premium
$514
Avg. annual full coverage premium
$2,437
Avg. annual min. coverage premium
$610
Avg. annual full coverage premium
$2,228
Avg. annual min. coverage premium
$380
Avg. annual full coverage premium
$1,994
Avg. annual min. coverage premium
$516
Avg. annual full coverage premium
$3,564
Avg. annual min. coverage premium
$1,142
Avg. annual full coverage premium
$1,646
Avg. annual min. coverage premium
$419
Avg. annual full coverage premium
$2,563
Avg. annual min. coverage premium
$1,030
Avg. annual full coverage premium
$2,216
Avg. annual min. coverage premium
$523
Avg. annual full coverage premium
$3,848
Avg. annual min. coverage premium
$1,661
Avg. annual full coverage premium
$1,702
Avg. annual min. coverage premium
$491
Avg. annual full coverage premium
$1,655
Avg. annual min. coverage premium
$362
Avg. annual full coverage premium
$1,530
Avg. annual min. coverage premium
$404
Avg. annual full coverage premium
$2,560
Avg. annual min. coverage premium
$510
Avg. annual full coverage premium
$1,956
Avg. annual min. coverage premium
$789
Avg. annual full coverage premium
$2,791
Avg. annual min. coverage premium
$522
Avg. annual full coverage premium
$2,683
Avg. annual min. coverage premium
$800
Avg. annual full coverage premium
$1,886
Avg. annual min. coverage premium
$657
Avg. annual full coverage premium
$1,939
Avg. annual min. coverage premium
$334
Avg. annual full coverage premium
$1,807
Avg. annual min. coverage premium
$459
Avg. annual full coverage premium
$2,627
Avg. annual min. coverage premium
$697
Avg. annual full coverage premium
$1,942
Avg. annual min. coverage premium
$700
Avg. annual full coverage premium
$1,359
Avg. annual min. coverage premium
$311
Avg. annual full coverage premium
$1,990
Avg. annual min. coverage premium
$677
Avg. annual full coverage premium
$1,674
Avg. annual min. coverage premium
$563
Avg. annual full coverage premium
$1,904
Avg. annual min. coverage premium
$488
Avg. annual full coverage premium
$1,739
Avg. annual min. coverage premium
$425
Avg. annual full coverage premium
$1,581
Avg. annual min. coverage premium
$270
Avg. annual full coverage premium
$2,437
Avg. annual min. coverage premium
$762
Average auto insurance premiums based on a 40-year-old driver with a clean driving record and good credit.

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 can help pay for costs related to the other party’s injuries if you are found at fault for an accident. Most states mandate that you carry a certain amount of bodily injury liability per person and per accident. 
  • Property damage liability coverage helps pay for damage you cause to someone else’s vehicle or property if you are found at fault for an accident. Property may include fences, poles, buildings and more.
  • Uninsured and underinsured motorist coverage 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. 

Car insurance basics

What factors impact the cost of car insurance?

The coverage you choose is not the only thing that influences the cost of your policy. Insurance providers use unique underwriting algorithms to determine how much of a risk you are to insure and the likelihood that you will file a claim. Not all carriers weigh each factor the same, and they may not be able to take certain factors into account depending on your state’s laws.  

  • Driving record: If you have a history of at-fault accidents, tickets or DUI convictions, you may find fewer companies to choose from since high-risk drivers are not eligible for coverage from every carrier.
  • Age and driving experience: Younger drivers have less experience on the road, leading to a higher accident frequency. This can often lead to higher car insurance rates. Unless you’re in Hawaii or Massachusetts, which ban age as a rating factor, the best company for drivers insuring young drivers may be ones that offer student or telematics discounts to offset premium increases.
  • State and city: States have different insurance laws, accident statistics, crime rates and living costs. Because of this, insurance companies may not be available in certain states or even in some cities or ZIP codes.
  • Vehicle make and model: If you drive a well-selling vehicle with easy-to-source replacement parts, your insurer may lower your rate. Driving a vehicle that comes equipped with safety features may also help you save on insurance. 
  • Credit-based insurance score: Unless you live in California, Hawaii, Massachusetts or Michigan, your credit history will factor into your insurance premium. Drivers with poor credit generally pay more, while drivers with good or excellent credit tend to pay less. 
  • Insurance lapse history: If you’ve allowed your car insurance coverage to lapse, your insurer may charge more for your policy. A lapse in coverage could signal that you are a higher-risk driver and therefore more likely to file a costly claim. 
Bankrate's image file
LEARN MORE ABOUT

Factors that impact your cost of car insurance

Knowing the factors that impact your cost of car insurance may help when comparing auto insurance quotes and reviewing policy renewals.

Arrow Right

How much does car insurance cost?

Proprietary data from Quadrant Information Services indicate that the national average cost of car insurance currently sits at $2,545 per year for a full coverage policy and $741 for minimum coverage. However, these figures are just a baseline. 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 costing 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.

Insurance company Annual full coverage premium Monthly full coverage premium
$1,735
$145
$2,530
$211
$1,683
$140
$1,646
$137
$2,248
$187
$2,044
$170
NJM
$1,358
$113
$1,761
$147
Powered by Coverage.com (NPN: 19966249)
Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Insurance company Annual min coverage premium Monthly min coverage premium
$464
$39
$647
$54
$435
$36
$377
$31
$668
$56
$592
$49
NJM
$631
$53
$522
$43
Powered by Coverage.com (NPN: 19966249)
Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Bankrate's image file
LEARN MORE ABOUT

How to save on car insurance

Knowing the factors that impact your cost of car insurance may help when comparing auto insurance quotes and reviewing policy renewals.

Arrow Right

How to find the best rates on car insurance

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

  • Shop around: Car insurance companies use unique rating algorithms to determine your premium, so you’ll get a different rate with each carrier. You may wind up paying a lower premium if you take a little extra time to compare auto insurance companies. 
  • Shop early: Shopping up to a month ahead of your renewal date can be helpful, as it allows you time to gather quotes and make a decision. Most companies require at least a month’s down payment, so make sure you account for that in your budget.
  • Utilize discounts: Most carriers, from the top auto insurance companies to local agencies, offer their customers a selection of discounts. Exact offerings and eligibility will vary among providers.
  • Participate in a telematics program: A telematics device tracks your driving habits. If you drive safely and obey traffic laws, your insurer might reward you with a discount. 
  • 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.
  • 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.
  • Set realistic expectations: Not all drivers will be able to score an amazing deal on their insurance. For example, if you have a DUI conviction on your record, data show that average rates for a full coverage policy can be up to 86 percent more.

Types of car insurance discounts

When navigating the world of insurance, being aware of discount opportunities can help you find the best auto insurance and significantly reduce your overall premium. When comparing auto insurance companies, keep in mind that not every discount is available in every state and eligibility requirements change depending on your provider. 

Here are some of the best car insurance discounts to ask your insurance agent about:

Some insurance providers offer discounts and premium reductions for policyholders associated with qualifying clubs, employers or professions.
Eco-friendly cars may earn a discount with some providers.
The less you drive the lower the risk is of being in a car accident. Many insurance companies have discounts for carpooling and farm use, which are low mileage behaviors and offer lower rates to drivers with low annual mileage.
Car and home insurance bundles are just one kind of multi-line discount. Some providers offer savings for bundling auto policies with other insurance products like boat, RV and renters insurance.
Policyholders who opt for digital documents over paper mail may receive a discount.
Policyholders who can pay their insurance premiums in full at the time of sale and renewal may receive a discount and save money by avoiding the service fees included in each billing cycle.
Along with being placed in a preferred risk group, drivers who stay incident-free may qualify for extra savings.
There are several discount options geared toward teen drivers with many carriers, such as a good student discount or driver training discount.

Car insurance industry trends: Premium increases likely to continue

Between 2023 and 2024, the cost of car insurance increased. Bankrate’s proprietary rate data indicates that the average cost of full coverage car insurance rose from $2,014 per year in January 2023 to $2,545 per year in February, 2024 . This is 26 percent more, and rates are expected to continue rising into 2024. Insurance rates are reactionary — claims get more expensive, and companies increase premiums in response. 

As premiums continue to rise, it’s important to understand how car insurance costs are affected. The cost of car parts has increased over the past few years due to ongoing shortages and shipping delays. Along with higher labor costs, this makes the overall cost of claims higher. Paired with poor post-pandemic driving habits, the result is higher car insurance premiums for policyholders. Finding the best coverage for your needs and budget is crucial. Ensuring you have proper coverage could help reduce the financial risk of being underinsured. Bankrate’s editorial team continues to monitor the insurance industry and speak to industry experts.

Bankrate talked to three experts in the car insurance industry to get their takes on the current environment.

Our industry experts weigh in


Director of corporate communications, Insurance Information Institute

“Car insurance rates are expected to continue to increase in 2024 due to more costly repairs, driven by parts shortages and higher costs of labor, as well as low inventories of vehicles, which generates higher costs of replacing totaled cars. From 2020 through 2023, replacement costs increased an average of 45 percent cumulatively, whereas inflation for the overall U.S. economy increased 15 percent within the same timeframe. Triple-I forecasts the U.S. personal auto insurance industry to post a substantial underwriting loss in 2023 with a 110.5 combined ratio, meaning auto insurers are paying out more than $1.10 for every dollar collected in premium. This is a slight improvement over the industry’s 112.2 combined ratio in 2022. A key factor in determining underwriting profit is accident severity. Since the pandemic began in 2020, loss costs for accidents have been outpacing premiums charged, resulting in many insurers raising rates multiple times to offset losses. We are starting to see premiums catching up with loss costs. Unless replacement cost begins to decrease materially — which is not currently forecast — we expect the personal auto insurance line to remain at an underwriting loss through 2025."

Adam Pichon

Vice president and general manager of U.S. personal lines insurance for LexisNexis

“Liability claim severity has been rising significantly over the last 10 years or so. Medical costs have been rising very quickly for a long time. So the question is, is your coverage going to be sufficient?”

Senior wealth advisor at Versant Capital Management

“Inflation has impacted the auto insurance industry similarly to many other industries. Over the last few years we’ve seen a sharp rise in the cost of premiums for auto insurance driven in part by inflation, specifically higher labor costs for repairs and higher replacement costs for vehicles as well as component parts when repairs are needed.”

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze the latest rates in February, 2024 for ZIP codes and carriers in all 50 states and Washington, D.C. Rates include the most recent approved rate changes filed by insurance companies that affect our profile. These revised rates are then weighted based on the population density in each geographic region so that policyholders can see the impact rates have in their areas. 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 2022 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.

Clock Wait
46
years of industry expertise
Search
122
carriers reviewed
Location
20.7K
ZIP codes examined
Dollar Coin
1.2M
quotes analyzed
Bankrate Scores methodology

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlight where they fall short.

  • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, February, 2024 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
  • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
  • Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Savings

Compare rates and save on auto insurance today!

ZIP code
Close X
Written by
Shannon Martin
Writer, Insurance

Shannon Martin is a licensed insurance agent and Bankrate analyst with over 15 years of experience in the industry. She enjoys helping others navigate the insurance world by cutting through complex jargon and empowering readers to make strong financial decisions independently.

Edited by Editor, Insurance
Reviewed by Director of corporate communications, Insurance Information Institute