Best car insurance in Washington, D.C. for April 2024

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 highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average 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 and home 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.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.

When reviewing options for Washington, D.C. car insurance, the first step is often to become familiar with the required minimum liability limits and decide if they are enough to provide adequate coverage for you. Although some drivers may choose minimum coverage as a cost-saving measure, many insurance experts recommend purchasing higher coverage limits if your budget allows for it to ensure a broader level of financial protection for you and your vehicle.

The Insurance Information Institute found that the average U.S. bodily injury claim totaled $24,211 in 2022. Since car accidents may result in tens of thousands of dollars (or more) in damage, carrying minimum limits could increase your risk of a hefty out-of-pocket expense if you’re at fault and the damage exceeds the liability limits you have on your policy.

If you are financing or leasing your vehicle, your lienholder will almost certainly require you to carry comprehensive and collision insurance, otherwise known as full coverage. You will often also have a cap on your deductible amount for comprehensive and collision and may have to carry more liability insurance than the state’s minimum requirements. These rules are in place to protect the financing institution’s investment in the vehicle, which they technically own until you pay off the loan or buy out the lease.

If you want the best car insurance in Washington, D.C., you may want to consider what optional coverage types (if any) you’d like to include on your auto policy. Although availability and eligibility may vary among companies, some popular coverage options include:

• Gap insurance: If your insurance company deems your vehicle a total loss as the result of a covered incident, gap insurance is intended to help pay off the balance of your loan if you owe more than what the vehicle is worth. This may occur as a result of an accident or non-recoverable theft.
• Roadside assistance: If you break down and need a tow, lock yourself out of your car or need assistance changing a flat tire, emergency roadside assistance coverage may be able to help.
• Rental reimbursement: Rental reimbursement coverage may help pay or reimburse you for your rental car while your vehicle is repaired due to a covered claim.
• New vehicle replacement: This endorsement may be useful if you have a car that is fairly new. Normally your insurer will pay you the depreciated value of your car if it's totaled in an accident, but with this add-on, you would receive enough to purchase a new car of the same make and model.

The average cost of full coverage car insurance in Washington, D.C. is $2,488 annually. For minimum coverage, the average rate is $796 per year. However, your exact rate may come in above or below these averages depending on your individual circumstances. It can be worth your time to ask for quotes from a number of carriers writing policies in the District, so you can be sure you are getting the best price for your policy.

The cheapest car insurance for D.C. residents will be different from driver to driver. Broadly speaking, USAA, Progressive and Erie offer some of the lowest average annual rates. However, several factors go into determining an individual’s premium. Your insurer will take your driving history into account, for example, as well as your credit rating, age, ZIP code and more. For this reason, experts recommend that you ask for quotes from several companies since you are likely to get a different rate from each.

Yes, auto insurance in Washington, D.C. is mandatory. To legally drive in Washington, D.C., you have to maintain a minimum level of liability coverage, including bodily injury, property damage and uninsured motorist coverage. Driving without insurance in Washington, D.C. could result in fines, license suspensions and even compulsory SR-22 insurance.

Car insurance in Washington, D.C. can be expensive for several reasons. Insurers set their rates based partly on location, and areas where there are more accidents — such as crowded urban areas — may mean higher rates. Insurers will also look at theft rates. If you live in an area where car theft and vandalism are more common, you’ll likely pay more. Lastly, the cost of living in Washington, D.C. is relatively high, which may drive up the cost of car repairs and replacement and, therefore, the cost of insurance.