Best car insurance companies for May 2022

How to compare the best car insurance companies

When reviewing multiple auto insurance companies, using an apples-to-apples comparison can be helpful. Knowing how to find companies that could meet your needs and how to compare those companies can be an important skill to have. While an average annual premium estimate may be a good initial indicator of how a company will stack up against others, it doesn’t provide the full story. Quotes should ideally include the same coverage levels and types, with the same personal details and vehicle information given to each company. Depending on your preferences, you may also want to review trusted third-party ratings for an additional assessment of a company’s performance, such as J.D. Power customer satisfaction ratings, the National Association of Insurance Commissioners (NAIC) consumer complaint index and financial strength grades from multiple credit rating agencies. This information can be found online, or an insurance agent can help you obtain this type of information about the auto insurers you are interested in.

How Bankrate picked the best auto insurance companies for 2022

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. 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

Compare car insurance companies in May 2022

Summary: best car insurance companies

*Overall standing affected by limited data availability

How much does car insurance usually cost?

When answering the common question “how much is car insurance,” it’s important to know that rates are highly dependent on the personal rating factors and vehicle information drivers provide when submitting for a quote. Nationally, full coverage policies average $1,771 per year. “Full coverage” refers to a policy that includes liability, collision coverage and comprehensive coverage. Minimum coverage, which refers to a state’s minimum requirements, costs an average of $545 per year.

In addition to the coverage types and levels you choose, other factors will significantly influence your final insurance cost. 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 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 accidents are more likely and rates are usually higher than average. Hawaii and Massachusetts ban the use of age as a rating factor.
• State and city: Different states have different insurance laws, different accident statistics and different 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, your credit tier is 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.

How much is car insurance with driving incidents?

The table below shows the average rate for drivers with several different scenarios. Compared to the national average rate, you can see that different factors affect premiums differently.

Why location matters when choosing car insurance

Auto insurance rates are based on several factors, and your city, state and ZIP code are among the most impactful. If you recently moved, it may be a good idea to compare companies to ensure that your car insurance provider is still the best fit for your needs. This is especially true if you have moved across state lines, as auto insurance is not standardized across the country.

Adding a comprehensive review of your auto insurance coverage as part of your moving checklist is a good way to remember this important step. To view Bankrate’s picks for the best car insurance in your state, select it from the table below.

What you need to know about car insurance

What is car insurance and how does it work?

Auto insurance is a form of financial protection that covers a variety of vehicle incidents that could affect you, your vehicle, or others and their vehicle.While most states require a specific minimum amount or type of coverage to be purchased, industry experts typically recommend having more robust financial protection to protect your finances in the event of a costly loss.

Auto policies will cover certain incidents of injury, damage or liability. Coverage limits can be set to satisfy your preferred level of financial protection, though not all coverage types will apply in all states or for all policies. In addition, deductibles are specific to certain coverage types. Because a higher deductible means you are willing to pay more if you file a claim, selecting a higher deductible can lower your premium cost.

More than a dozen rating variables unique to each driver go into determining how much you pay for auto insurance. As each carrier uses different rating factors and weights when underwriting policies, comparing quotes from multiple insurers is often essential in finding the most affordable rate.

While your exact level of coverage will depend on the policy you choose, filing a claim could potentially offer you a payout for loss caused by an uninsured motorist, weather event, occurrence of theft or vandalism, or a multitude of other damaging events. Similarly, if you are involved in an accident with another driver and they are at fault, their auto insurance could help cover your medical expenses and property damage (depending upon the state).

What are the different types of car insurance coverage?

Most auto insurance companies offer similar types of coverage, although variations do exist, especially with endorsements, or “add-ons.” Some companies might offer gap coverage as an option, for example, while another company doesn’t. Below are the types of car insurance coverage that most companies offer:

Almost always required by law

In most states, drivers are legally required to carry at least certain minimum limits of these coverage types

• Bodily injury liability coverage pays for the injuries that 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.

Sometimes required by law

• Uninsured and underinsured motorist coverage pay for injury and damage caused by a driver who either lacks sufficient coverage or lacks any coverage at all. The Insurance Research Council’s latest study indicated one in eight U.S. drivers was uninsured in 2019.
• 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.

Required if you have a loan or lease
If you finance or lease your car, your financial institution will likely require that you have a “full coverage” policy, which includes the following coverage types and adds coverage for damage to your vehicle:

• Collision coverage pays for damages to your vehicle caused by a collision. If you collide with another car, a tree, a pole, a building or a pedestrian, your collision coverage is the part of the policy that will pay for the damage to your vehicle.
• Comprehensive coverage pays for damage to your car caused by non-collision losses like theft, vandalism and storm damage. Comprehensive also pays for damages caused by hitting an animal and cracked windshields. According to the Triple-I, approximately 80% of drivers carry this optional coverage.

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 coverage types and limits for your needs.

What are the different types of car insurance discounts?

Finally, most major auto insurers offer the following car insurance discounts that might help you lower your premium:

• Multi-policy, sometimes called multi-line or bundling, could earn you a discount on each policy you insure with the same company. This discount is common for insuring both a home and auto policy but is also sometimes offered for having other policies as well, like renters insurance, pet insurance or life insurance..
• Multi-car discount could save you money if you insure more than one vehicle on the same policy.
• Claims-free is commonly offered if you do not have any losses on your driving record for three to five years.
• Good student discount is usually available for full-time students under the age of 25 who have a certain grade point average or letter-grade average.
• Telematics programs are becoming more common with many car insurance companies. These usage-based insurance programs track your driving patterns with a mobile app or plug-in device. The safer you drive, the more you might save.

Keep in mind that insurance regulations vary by state. This means that some coverage types and discounts may not be available where you live.

Frequently asked questions