There are many car insurance companies in the United States but not all of them are the same. The best car insurance companies offer their customers more than just coverage at a reasonable price. They provide a customer-first experience, including a hassle-free way to manage policies and make payments. We've compiled a list of some of the best car insurance companies in the United States.
To come up with this list, we evaluated large auto insurance companies based on average rates for a variety of drivers, available coverage features, and complaint levels. Customer complaint data, consumer experience and financial strength of these insurance companies were also considered based on the latest data obtained from the National Association of Insurance Commissioners.
Based on the above factors, we have put together this article to guide you to choose the best insurance company for your car in 2023.
1. Geico
Government Employees Insurance Company (GEICO) is an American private auto insurance company headquartered in Chevy Chase, Maryland. It is the second largest auto insurance company in the United States, after State Farm. Geico has very competitive car insurance rates for many types of drivers, making it worth looking into if you want cheap car insurance. The low level of auto insurance complaints is another reason to consider Geico.
Geico is an excellent choice if you're looking to strike a balance between quality service and affordability. The company has relatively low customer complaint rates and reasonable insurance rates. However, it does offer new-car replacement coverage, allowing those with new models to be fully compensated for a brand-new car after an accident.
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2. State Farm
State Farm is another large, affordable insurance company with an excellent reputation for customer service. Like Geico, it has a lower complaint rate and may be a cheaper option depending on where you live. State Farm does not offer new car replacement coverage, so it may not be the best option for those with brand-new cars.
State Farm's customer satisfaction ratings are better than average, but the cost of insurance is higher than average. The company offers discounts to drivers in some states for owning multiple cars, being a good driver, and taking a defensive driving course. They rely on exclusive agents to sell insurance and only these agents can sell State Farm insurance.
3. Car Club Group
The Auto Club Group is the second largest club out of AAA's 25 clubs. It's a good choice for many drivers and offers auto insurance in 14 states and Puerto Rico. Customers can also take advantage of roadside assistance, along with car loans and car purchasing services. Auto Club insurance provides the best combination of high satisfaction and low complaints.
The Auto Club Group has rideshare insurance and original equipment manufacturer coverage. Before you can get coverage, you'll need to become a member of AAA. However, perks and discounts may make joining worth it. The company also has an app where you can manage both your car insurance policy and AAA membership.
4. USAA
USAA insurance products, including auto, homeowners, and renters policies, are only available to members of the military community. It especially caters to young active duty service members and those who work for Uber or Lyft. USAA offers a wide range of benefits such as roadside assistance, rental car reimbursement, and accident forgiveness.
USAA is one of the best auto insurance companies in the United States with low customer complaint rates, affordable insurance rates, and a satisfying customer experience. It has very reasonable rates for motorists with many types of driving records, making it a good company for different driver profiles. Note that you must be a military member, veteran, or military family member to be eligible for USAA insurance.
5. Allstate
Allstate Insurance Company is a national leader in providing many types of insurance including auto, home, life, motorcycle, renters, and off-road insurance. The company offers a wide range of discounts for being a safe driver, home and car pooling, anti-theft, and other security features. Ask your Allstate agent about all the discounts available and how much you can save by covering them.
Allstate has one of the highest rates in the United States but may offer a competitive rate for some drivers. The company has a proven track record of low auto insurance complaints to state insurance departments. If you purchase new car replacement coverage with an insurance company like Allstate, the payout on your claim will match a brand-new car.
6. At the national level
Nationwide is one of the top insurance companies in the United States and has a slogan called “On Your Side” that influences how car insurance claims are handled. The company recommends an annual checkup to ensure policyholders understand their benefits and coverage. Nationwide offers financial services, commercial lines and personal lines in all 50 states. It has contributed more than $430 million to nonprofit organizations since 2000.
7. Mutual freedom
Liberty Mutual is one of the largest insurance companies in the United States with operations in 17 countries. The company has eight coverages that are rarely or only occasionally offered by other companies. These include new vehicle replacement, accident forgiveness, gap insurance, diminishing deductible, original equipment manufacturer (OEM) coverage, and auto death benefit coverage. Furthermore, Liberty Mutual offers all the common coverages offered by other insurance companies, such as roadside assistance and rental car reimbursement.
With Liberty Mutual, damaged parts are replaced with OEM parts, meaning you get the highest quality repairs. The company also sells property, casualty, health and life insurance policies.
It may also interest you to know that Liberty doesn't have the cheapest rates or the highest customer service.
8. American family
American Family is one of the largest insurance companies in the United States and the largest insurer by market share in Wisconsin. The company has driving monitoring apps, allowing good drivers to get discounts. Savings can go toward insuring multiple vehicles, completing a defensive driving course, and having a student away at school.
American Family offers a range of discounts to drivers in some states, including for loyalty, completion of a defensive driving course, and for out-of-school students.
American Family Insurance products include universal term and whole life insurance; Personal and commercial auto, comprehensive, and home insurance; Motorcycle, boat, motor home, snowmobile, and car insurance; Farmer and Rancher Liability Insurance. The company also offers a reward system for insureds titled “Dreamkeep Rewards”, which provides small to large rewards for completing various online tasks.
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9. Erie
Erie is one of the best auto insurance companies in the United States and offers generous coverage and competitive rates. The company's high bank rate scores contribute to its position as one of the best in the country. The company provides strong coverage and strong claims experience. Drivers may benefit from adding rideshare insurance, accident forgiveness, and rate locking.
Erie has highly rated customer service and below average coverage rates for drivers and teens.
10. Progressive insurance
Progressive Insurance is one of the best auto insurance companies in the United States and offers customizable auto and home insurance coverage. In addition, this company also has easy-to-use online tools and resources for customers as well as strong customer service for customers.
Progressive offers middle-of-the-road auto insurance rates for drivers with clean driving records when compared to top competitors. Progressive auto insurance is cheaper than Allstate and Farmers on average, but more expensive than Geico and State Farm when it comes to good drivers.
Even great drivers will find that rates vary greatly between insurance companies, so shopping around can pay off.
