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Best car insurance companies for June 2023

Bankrate’s proprietary research method revealed that Geico, Amica and USAA are among the best car insurance companies in 2023.

Updated Jun 07, 2023
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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.

The best car insurance companies in June 2023

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 and shopping around can be an important step when looking for the best car insurance.

Geico
Rating: 4.4 stars out of 5
4.4
Bankrate Score
Info
Average monthly premium
$113
Average annual premium
$1,353
What it may be best for
Best overall
Amica
Rating: 4.4 stars out of 5
4.4
Bankrate Score
Info
Average monthly premium
$122
Average annual premium
$1,467
What it may be best for
Best overall
USAA
Rating: 4.3 stars out of 5
4.3
Bankrate Score
Info
Average monthly premium
$113
Average annual premium
$1,361
What it may be best for
Best for military-focused coverage
Safeco
Rating: 4.3 stars out of 5
4.3
Bankrate Score
Info
Average monthly premium
N/A
Average annual premium
N/A
What it may be best for
Best for added perks
Auto-Owners
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly premium
$113
Average annual premium
$1,361
What it may be best for
Best for discounts
State Farm
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly premium
$123
Average annual premium
$1,480
What it may be best for
Best for local agencies
Progressive
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly premium
$137
Average annual premium
$1,642
What it may be best for
Best for digital policy management
NJM
Rating: 4.1 stars out of 5
4.1
Bankrate Score
Info
Average monthly premium
$102
Average annual premium
$1,229
What it may be best for
Best for coverage on a budget
Liberty Mutual
Rating: 4.1 stars out of 5
4.1
Bankrate Score
Info
Average monthly premium
N/A
Average annual premium
N/A
What it may be best for
Best for bundling numerous discounts
Travelers
Rating: 4 stars out of 5
4.0
Bankrate Score
Info
Average monthly premium
$129
Average annual premium
$1,551
What it may be best for
Best for personalized coverage
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.

Geico
Rating: 4.4 stars out of 5
4.4
Bankrate Score
Info
Average monthly premium
$31
Average annual premium
$373
What it may be best for
Best overall
Amica
Rating: 4.4 stars out of 5
4.4
Bankrate Score
Info
Average monthly premium
$36
Average annual premium
$429
What it may be best for
Best overall
USAA
Rating: 4.3 stars out of 5
4.3
Bankrate Score
Info
Average monthly premium
$31
Average annual premium
$371
What it may be best for
Best for military-focused coverage
Safeco
Rating: 4.3 stars out of 5
4.3
Bankrate Score
Info
Average monthly premium
N/A
Average annual premium
N/A
What it may be best for
Best for added perks
Auto-Owners
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly premium
$27
Average annual premium
$325
What it may be best for
Best for discounts
State Farm
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly premium
$39
Average annual premium
$464
What it may be best for
Best for local agencies
Progressive
Rating: 4.2 stars out of 5
4.2
Bankrate Score
Info
Average monthly premium
$46
Average annual premium
$553
What it may be best for
Best for digital policy management
NJM
Rating: 4.1 stars out of 5
4.1
Bankrate Score
Info
Average monthly premium
$30
Average annual premium
$357
What it may be best for
Best for coverage on a budget
Liberty Mutual
Rating: 4.1 stars out of 5
4.1
Bankrate Score
Info
Average monthly premium
N/A
Average annual premium
N/A
What it may be best for
Best for bundling numerous discounts
Travelers
Rating: 4 stars out of 5
4.0
Bankrate Score
Info
Average monthly premium
$41
Average annual premium
$495
What it may be best for
Best for personalized coverage
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.

How Bankrate picked the best auto insurance companies

We used our car insurance expertise and extensive data to assess the insurance industry's landscape to provide an easy-to-use shopping and comparison tool for consumers. Along with reviewing each company’s coverage options, discounts, digital features and third-party scores, we used Quadrant Information Services to obtain up-to-date average rate information for both full and minimum coverage. 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 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 2022 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
Clock Wait
46
years of industry expertise
Search
122
carriers reviewed
Location
20.7K
ZIP codes examined
Dollar Coin
1.2M
quotes analyzed

What is the best car insurance company?

Geico

Best overall

Rating: 4.4 stars out of 5
4.4 Bankrate Score
JD Power: 874 AM Best: A++

Average annual premium

$ 1,353 for full coverage
Geico Review Get a personalized quote

Why this company made our list: Geico’s long history as a trusted, household-name auto insurer is reflected in its high Bankrate Score. Coverage is available for virtually every type of driver, making its car insurance coverage generally accessible, even for consumers with blemished driving histories. Geico’s winning combination of metrics helped it tie for the Best Auto Insurance Company Overall in our 2023 Bankrate Awards. The insurer also won in the Best Budget Auto Insurance Company category.

Why Geico is best overall: Geico’s low average premiums, combined with its long list of discounts, make it an attractive option, especially as inflation squeezes household budgets and car insurance costs continue to rise. Geico also offers strong digital tools and above-average claims satisfaction from J.D. Power.

Amica

Best overall

Rating: 4.4 stars out of 5
4.4 Bankrate Score
JD Power: 903 AM Best: A+

Average annual premium

$ 1,467 for full coverage
Amica Review

Why this company made our list: Amica’s exceptional claims service and customer-centric business model make it a standout choice for drivers seeking the best auto insurance company, based on Bankrate’s analysis. In fact, Amica tied with Geico for the Best Auto Insurance Company Overall in the 2023 Bankrate Awards. You can learn more about Amica at www.amica.com or by calling 1-800-242-6422.

Why Amica is best overall: Amica earned the highest official ranking in the latest J.D. Power claims satisfaction study. Customer representatives are also available to support policyholders 24/7. Amica also offers a robust array of coverage options and discounts to help you personalize your policy.

USAA

USAA logo

Best for military-focused coverage

Rating: 4.3 stars out of 5
4.3 Bankrate Score
JD Power: 890 AM Best: A++

Average annual premium

$ 1,361 for full coverage
USAA Review Get a personalized quote

Why this company made our list: USAA is a top scorer in J.D. Power customer satisfaction surveys (although it doesn’t qualify for official ranking due to its eligibility requirements), has impeccable ratings with several financial strength rating institutions and provides some of the lowest-priced auto insurance quotes in the industry, on average. However, USAA is only available to active-duty military, veterans and their eligible family members. Still, our analysis shows that this company could be the best for military-focused benefits, including a discount of up to 60 percent for military members who put their vehicle in storage while deployed. 

Why USAA is best for military-focused coverage: USAA earns top marks from all major third-party rating agencies for customer service and financial strength. Coupled with having a lower-than-average full coverage premium, USAA is a powerhouse. Customers can access multiple coverage options, benefits 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.

Safeco

Best for added perks

Rating: 4.3 stars out of 5
4.3 Bankrate Score
JD Power: 865 AM Best: A

Average annual premium

N/A for full coverage
Safeco Review Get a personalized quote

Why this company made our list: Our real-world agency experience has taught us that the best car insurance company offers more than just the cheapest rates. Instead, some drivers may want to consider the overall value their company can provide. Although average rates aren’t available for Safeco, the company offers numerous perks that may pique your interest. From its extensive list of unique add-on coverage options to the fact that it is sold by knowledgeable local agents, you may want to consider Safeco if you value additional perks in your car insurance policy.

Why Safeco is best for added perks: Of the companies we studied, Safeco offers an above-average value to consumers with options like its Claims Free Cash Back program, which could pay you back a portion of your premium if you are claims-free for six months. The company also offers a Guaranteed Repair Network for auto claims in most states. If you get your vehicle repaired at a Safeco-approved shop after a covered loss, your repairs will be guaranteed for as long as you own the vehicle.

Auto-Owners

Best for discounts

Rating: 4.2 stars out of 5
4.2 Bankrate Score
JD Power: 865 AM Best: A++

Average annual premium

$ 1,361 for full coverage
Auto-Owners Review Get a personalized quote

Why this company made our list: Our current macroeconomic climate of record-high inflation might make it tough for drivers across the country to fit car insurance into their budgets. Depending on where you live, Auto-Owners might be able to help. This carrier has a strong reputation for providing excellent auto coverage at a competitive price. 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.

State Farm

Best for local agents

Rating: 4.2 stars out of 5
4.2 Bankrate Score
JD Power: 882 AM Best: A++

Average annual premium

$ 1,480 for full coverage
State Farm Review Get a personalized quote

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 consumers with various personal and commercial insurance products. We chose State Farm as the Best Auto Insurance Company for High-Risk Drivers in the 2023 Bankrate Awards.

Why State Farm is best for local agents: State Farm 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 mobile app where you can file auto claims and contact your agent.

Progressive

Best for digital policy management

Rating: 4.2 stars out of 5
4.2 Bankrate Score
JD Power: 861 AM Best: A+

Average annual premium

$ 1,642 for full coverage
Progressive Review Get a personalized quote

Why this company made our list: Members of our editorial team have sold car insurance to drivers nationwide, and we’ve found that one of the most challenging things shoppers face is understanding their coverage options, especially those new to insurance. Progressive’s digital tools might help break that barrier.  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 generally 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, a usage-based telematics program that monitors driving and offers discounts for safe driving. When deciding 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.

NJM

Best for coverage on a budget

Rating: 4.1 stars out of 5
4.1 Bankrate Score
JD Power: 896 AM Best: A+

Average annual premium

$ 1,229 for full coverage
NJM Review Get a personalized quote

Why this company made our list: Although it’s only available in five states (Connecticut, Maryland, New Jersey, Ohio and Pennsylvania), New Jersey Manufacturers (also called NJM) is an impressive insurer. In fact, a regional insurer might even be a boon to some drivers since, hypothetically, agents who specialize in a region should be more familiar with the needs of the drivers they serve. The company earned the second-highest official ranking for claims satisfaction from J.D. Power, offers low average rates and has local agents available for its customers.

Why NJM is best for coverage on a budget: According to our analysis of proprietary rate data from analytics company Quadrant Information Services, NJM’s average rates tend to be much lower than the national average. Additionally, the company offers an impressive list of discounts, many of which are tailored to the individual states it serves. NJM even offers a discount for full coverage car insurance policies, which means you may get more coverage for a lower price than you would elsewhere.

Liberty Mutual

Best for bundling numerous products

Rating: 4.1 stars out of 5
4.1 Bankrate Score
JD Power: Not rated AM Best: A

Average annual premium

N/A for full coverage
Liberty Mutual Review Get a personalized quote

Why this company made our list: Our licensed team members have sold a wide range of products from home, renters and umbrella insurance, so we know the ability to bundle can be a convenient, budget-friendly benefit. Liberty Mutual offers plenty of lines of insurance and boasts a savings of up to $950 per year if you bundle your home and auto. Average rates aren’t available, though, so you may want to request a quote to find out if the company is within your budget.

Why Liberty Mutual is best for bundling numerous products: Liberty Mutual offers a long list of insurance products, including auto, home, umbrella, life, pet, small business and identity theft. If you like to keep your insurance products in one place for ease of management, Liberty Mutual might be a good fit.

Travelers

Best for personalized coverage

Rating: 4 stars out of 5
4 Bankrate Score
JD Power: 854 AM Best: A++

Average annual premium

$ 1,551 for full coverage
Travelers Review Get a personalized quote

Why this company made our list: Travelers has over 150 years of experience 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 offers many ways to personalize coverage to specific needs. Options like new car replacement, accident forgiveness, rideshare coverage and gap coverage may increase premiums but also provide increased financial protection for a broader range of incidents. Customers do not rank Travelers’ claims satisfaction as highly when compared to other companies Bankrate analyzed, which may be worth considering.

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 by 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. 

Compare the best car insurance companies by state

To assist our readers no matter where they live, we’ve created the interactive map below. Click your state to see how average rates in your state or metro area vary compared to the national average and based on different life events, such as adding a teen to your car insurance policy or causing an accident. Simply click the blue arrows to see more average rates in your area based on life events that could affect your premium. This information can give you a holistic view of how much car insurance averages in your state or metro area and may provide a benchmark for you to use to determine how competitive your current premium is. 

The average annual full and minimum coverage auto insurance premium based on a 40-year-old driver with a clean driving record and good credit.

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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.

Finding the best auto insurance company for you

Knowing the best auto insurance companies nationally and in your state can be a good starting point as you start to shop for coverage, but how do you actually find the best company for you? Every driver has unique needs, and the best car insurance companies overall or the best in a given state may still not be the best option for your situation. Your specific situation could dictate the company, coverage types, discounts and policy features that you need. Understanding your needs is the first step in finding the best car insurance company for you. 

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 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 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 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.

While the primary types of car insurance coverage are listed above, every insurance company is different and may have unique coverage options. Speaking with your agent or reviewing coverage options online may help you find coverage more tailored to your policy needs. For example, if you are purchasing a new vehicle, you may want to buy new car replacement coverage to replace the car with another new model in the event it is totaled. Do you frequently drive on dirt roads or highways? If so, looking into zero deductible windshield replacement coverage — also known as full glass — may be a smart move. 

What factors impact the cost of car insurance?

Other factors exist that significantly influence your car insurance company options. Each insurance company has underwriting metrics that affect your eligibility and rate. 

  • 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: 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, insurers may not insure certain vehicle types.
  • Credit-based insurance score: In most states, elements of your credit history are used to determine how likely you are to file a claim, which can affect your rate and eligibility with certain companies. 
  • Insurance lapse history: Because most states require drivers to have at least minimum levels of coverage, insurance lapses can result in higher premiums when you take out a policy again. You may also be considered a higher risk and have fewer options when shopping for car insurance companies.

Learn 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:
  1. Shop around: Car insurance companies use unique rating algorithms to determine your premium, so you’ll get a different rate with each carrier. Shopping early — up to a month prior to 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.
  2. Utilize discounts: Telematics discounts are programs that track your driving habits. If you demonstrate safe driving, you may save on your premium.
  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.

What customer satisfaction metrics should you consider?

It may not be as obvious as price or coverage options, but customer satisfaction is just as important as those other metrics when you shop for car insurance. After all, you want to make sure your company is there for you when you need it most — when you file a claim. Third-party rating agencies, which maintain neutrality, provide a basis for understanding a company’s overall level of service, number of complaints and financial strength ratings. These metrics help you gain a deeper view of a carrier’s performance and can help you choose a company based on more than just a quoted rate. This helps ensure you find a carrier that meets all of your needs. To determine a company’s level of service, consider taking these steps:
 
  • Look at J.D. Power scores: J.D. Power is a data analytics company that conducts several annual reviews of the car insurance industry, ranging from customer and claims satisfaction to digital tool satisfaction. J.D. Power is a trusted name in the industry, and its ratings — particularly those that apply specifically to your region — could help you choose a carrier based on customer satisfaction.
  • Consider NAIC Complaint Index: The NAIC keeps a record of customer complaints filed about insurance companies and compiles them into a Complaint Index. A 1.00 Index is the baseline number of complaints expected in a given year. A rating below 1.00 indicates fewer complaints than average, and conversely, a rating above 1.00 indicates more complaints than average. 
  • Review AM Best financial strength ratings: AM Best rates the historical financial strength of various companies, specializing in the insurance industry. A financial strength rating gives you an idea of a company’s past ability to pay claims. A higher financial strength rating may indicate that a company has historically been financially stable.
  • Talk with current policyholders: If you know someone who has their car insurance with a company you are considering, ask them about their experience. You can ask about general service, billing and payment service, and claims service to get a sense of what it’s like to be insured with that company.

Car insurance industry trends

Inflation has been a headline news story for months, and with good reason. In a Bankrate survey from September 2022, 55 percent of Americans said that their income hasn’t been able to keep up with the increased cost of household expenses, including insurance premiums. Bankrate’s proprietary rate data indicates that the average cost of full coverage car insurance rose from $1,771 per year in 2022 to $2,014 per year in 2023. This is a 14 percent increase, and rates are expected to continue rising throughout 2023. Insurance rates are reactionary — claims get more expensive, and companies increase premiums in response. This means that, even if inflation cools, we’ll likely feel the effects of higher rates for a while. 

As premiums continue to rise, it’s important to understand how car insurance costs are affected. If you are facing a premium increase upon your next policy renewal, shopping for a new car insurance company may be worth considering. But the price isn’t everything. As vehicle repairs and medical care costs increase, finding the best coverage for your needs is also 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.

Our industry experts weigh in 

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

Caret Down

Adam Pichon

Vice President and General Manager of U.S. Personal Lines Insurance for LexisNexis

When asked about the risk of policyholders being underinsured due to inflation, Adam Pichon states: “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?”

But many other costs are increasing along with car insurance rates. Bankrate wanted to know if increasing coverage limits to combat inflation could affect car insurance rates. Pichon says: “The prices will vary for every insurance company. You could get 10 times more coverage, but it won’t be 10 times the price.”

Adam pichon

Mark Friedlander

Director of Corporate Communications at the Insurance Information Institute

While inflation is increasing car insurance costs, other factors also drive up prices. Mark Friedlander shed light on this:  “To remain viable in 2023, auto insurers will have to set premiums at levels appropriate to the risks they cover. Auto premium rates reflect a range of factors related to [the] vehicle, policyholder, location, and vehicle use and how these factors contribute to the insurer’s loss experience.”
 
Bankrate predicts that rates are likely to continue to rise throughout 2023. Friedlander agrees, saying: “We anticipate average U.S. auto rate increases will run in the high single digits in 2023, with several states incurring double-digit increases. As we saw in 2022, multiple increases could be implemented in some states.”
Mark Friedlander

Jon Schnautz

Assistant Vice President of State Affairs for National Association of Mutual Insurance Companies

We wanted to know if there was an end in sight to higher car insurance rates. Jon Schnautz says: “Unfortunately, leading economists do not anticipate supply chain stabilization until after 2023. Additionally, many of the costs driving auto insurance rates stem from the realities drivers face on the roads, which are both behavioral in nature and constantly fluctuate.”
 

We also asked what could be done to stop inflation’s effects on car insurance. Schnautz notes: “There is no single solution to the inflationary challenges facing auto insurers. While efforts at tort reform and keeping medical costs in check will help, auto insurers are ultimately subject to many of the same inflationary pressures as other businesses with limited ability to affect meaningful changes to economic reality. However, there are still steps legislators and regulators [might] take to help soften inflationary blows — auto insurers continue to support policies that embrace matching rate to risk, enhance road safety, and consumers’ right to repair their vehicles as they see fit."

Jon Schnautz

Frequently asked questions about best car insurance companies

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for 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 2021 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. 
 

Additional car insurance ratings methodologies

Written by
Carol Pope
Insurance Writer

Carol Pope is an insurance writer for Bankrate and prior to joining the team, she spent 12 years as an auto insurance agent. During this time, she sold, serviced and underwrote auto insurance for people across the country. She also has experience selling supplement coverage such as umbrella insurance.

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