Best car insurance in Washington, D.C. for 2023

Best car insurance companies in Washington, D.C.

According to rate data provided by Quadrant Information Services, the average cost for a full coverage auto policy in Washington, D.C., is $2,072 per year. A minimum coverage policy averages $607 per year. Many of the best carriers on our list offer average rates below the city average, making them some of the cheapest car insurance companies in Washington, D.C.

We understand that price isn't the only factor for many drivers choosing an insurance company, so we assessed a wide variety of factors when choosing the top car insurance carriers in Washington, D.C. These included customer service rankings from J.D. Power and financial strength ratings from AM Best, as well as coverage options, discounts and digital tools. All these factors were analyzed to assign each company a Bankrate Score on a 5-point scale. The companies that came out on top included Geico, USAA, Progressive, State Farm and Erie.

How Bankrate chose the best car insurance companies in Washington, D.C.

To find the best car insurance companies in Washington, D.C., Bankrate first looked to proprietary rate data provided by Quadrant Information Services. We then studied other metrics such as customer satisfaction scores from J.D. Power, AM Best financial strength ratings, mobile accessibility, discounts offered and NAIC complaint indexes. Using this information, we issued each company a Bankrate Score ranging from 0.0 to 5.0. We hope you can use the information in this guide and our Bankrate Scores to evaluate carriers efficiently and find the best option for your auto insurance needs.

How much is car insurance in Washington, D.C.?

The average annual cost of full coverage car insurance in the U.S. is $2,014, while Washington, D.C., drivers pay an average of $2,072 annually for the same coverage. Minimum coverage is slightly cheaper, on average, in Washington, D.C., at $607 per year compared to the national average of $622 per year. This higher average full coverage rate in Washington, D.C., may be attributed, in part, to the region's high population density, which may lead to higher rates of accidents, theft and vandalism. 

Full coverage car insurance rates in Washington, D.C., are also higher than those in some surrounding areas. For instance, the average annual full coverage rate in Maryland is $1,971. In Virginia, the price difference is much more dramatic with a yearly full coverage premium of $1,439. Washington, D.C., is unique in that it is essentially one large metropolitan area, so the entire region sees the higher average rates we typically associate with big cities in other states.

How to find the best car insurance in D.C.

The best auto insurance company in Washington, D.C., is likely different for everyone. However, some simple approaches may be used to help judge which insurer offers the best coverage for you and your unique situation.

Consider minimum insurance requirements in Washington, D.C.

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 (Triple-I) found that the average U.S. bodily injury claim totaled $22,734 in 2021. 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 damages exceed the liability limits you have on your policy.

Consider lender requirements

If you are financing or leasing your vehicle, your lienholder will almost certainly require you to carry comprehensive and collision, otherwise known as full coverage. You will often also have a cap on your deductible amount for comprehensive and collision.

In addition to comprehensive and collision, those leasing their vehicles will generally have to carry liability insurance, possibly at a rate that is higher than the city's minimum requirements. 

Your lender is considered an additional interest when you are financing or leasing, meaning they have a financial interest in the well-being of your car. In other words, your lender technically owns your vehicle until you have paid off your loan (or throughout the duration of your lease, if applicable). As such, your lender likely wants to ensure that their investment is financially protected, and they typically do this by requiring certain types and levels of coverage.

Consider your individual needs

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 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 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. 

Frequently asked questions