Best car insurance companies for December 2023

The best car insurance companies in 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 when comparing auto insurance companies can be an important step to finding the best rates and coverage.

Geico

Amica

USAA

Safeco

Auto-Owners

State Farm

Progressive

NJM

Liberty Mutual

Travelers

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 how much car insurance averages in your state and may provide a benchmark for you to use to determine how competitive your current premium is. 

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. 

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. 

How much does car insurance cost?

Proprietary data from Quadrant Information Services indicate that the national average cost of car insurance currently sits at $2,014 per year for a full coverage policy and $622 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. Our data show that drivers in Florida pay an average of $3,183 per year for full coverage, while drivers in Maine pay just $941 for the same coverage. Driving incidents can also affect the total cost of your car insurance. Drivers with speeding tickets could see their premiums costing 21 percent 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.

Car insurance industry trends

Between 2022 and 2023, the cost of car insurance increased. Bankrate’s proprietary rate data indicate that the average cost of full coverage car insurance rose from $1,771 per year to $2,014 per year. This is 14 percent more, 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 while car crashes have decreased in 2023, 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. 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 the amount of car crashes drastically increasing between 2020 and 2022, 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.

Frequently asked questions