Best Car Insurance Companies…
Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft.
In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.
An insurance premium is the amount of money an individual or business pays for an insurance policy.
Insurance premiums are paid for policies that cover healthcare, auto, home, and life insurance. Once earned, the premium is income for the insurance company.
Auto insurance provides coverage for:
- Property – such as damage to or theft of your car.
- Liability – your legal responsibility to others for bodily injury or property damage.
- Medical – the cost of treating injuries, rehabilitation, and funeral expenses.
Basic personal auto insurance is mandated by most U.S. states, and laws vary.
Auto insurance coverages are priced individually (a la carte) to let you customize coverage amounts to suit your exact needs and budget.
Policies are generally issued for six-month or one-year timeframes and are renewable.
The insurance company sends a notice when it’s time to renew the policy and pay your premium.
We’ve taken the guesswork out of finding the best car insurance companies by analyzing important factors that will affect your customer experience.
The Top 10 Best Car Insurance Companies are:
- Accident-free Anti-theft system
- Defensive driving Good student Military
- New vehicle Multi-policy Multi-vehicle
Geico sells insurance for cars, motorcycles and classic cars. For those who enjoy a little more adventure, Geico also sells insurance for RVs, ATVs and boats.
Optional coverage types for auto insurance includes emergency road service, rental reimbursement and mechanical breakdown insurance.
If you’re concerned about a rate increase after an accident, Geico offers accident forgiveness insurance, which you can pay to add to your policy or earn by maintaining a clean driving record. Geico will waive the first at-fault accident caused by an eligible driver listed on your policy.
Geico Car Insurance Discounts
Geico offers many discounts, especially for drivers who practice safe driving habits. If you’re in the military or are part of an emergency deployment, you could receive between 15% and 25% off your policy. And, if you’re a loyal customer, you can benefit from the multi-vehicle discount or the multiple policy discount. Other auto insurance discounts include:
- Vehicle equipment discounts: Does your car have some of the latest safety features such as side airbags or full front-seat airbags, anti-lock brakes or an anti-theft system? If so, you could save up to 40% off the medical payments or personal injury protection portion of your policy.
- Discounts for driving history and habits: If you have a good driving record and are accident-free for five years you can receive up to 26% off most coverages. Also, if you and your passengers wear seat belts, you can save up to 15% off the medical payments or personal injury protection portion of your policy.
- Driving course discounts: If you complete a defensive driving course, you can save on your premium.
- Drivers education discount: If you have a young driver on your policy who completes a driver’s education course, you may be eligible for discounts on most of your coverage types.
- Good student discount: For drivers who are between age 16 and 24 and enrolled in school full-time, you might be able to receive a discount if they get a B average or better.
- Federal employee discount: Whether you’re an active or retired federal employee, you can receive up to 8% off of your auto insurance premium.
- Membership and employee discounts: Geico has partnered with more than 500 alumni associations, fraternities and sororities, and professional organizations to offer discounts to its members.
- Military discount: For those who are on active duty, retired from the military, or a member of the National Guard or Reserves, you might be eligible for a discount of up to 15% on your total car insurance premium.
- Multi-vehicle discount: You can save when you insure two or more vehicles with Geico.
- Multi-policy discount: You can save when you bundle your auto insurance with other types of insurance you buy through Geico, such as homeowners, condo, renters or mobile home insurance. While Geico itself does not underwrite these other insurance types, they are available through the Geico agency.
- Accident-free Automatic payment
- Defensive driving Good Student Multi-policy Paperless Safe driver
- Continuous insurance Good student
- Homeownership Hybrid/electric vehicle Multi-car Multi-policy Safe driver
Travelers Car Insurance Discounts
Travelers offer many possible discounts. If you enjoy getting ahead of your bills, look for EFT and pay-in-full discounts. Travelers’ car insurance discounts include:
- Multi-policy discount: If you bundle your auto insurance with other types of insurance (like homeowners insurance) you can save up to 13% on your auto insurance policy.
- Multi-car discount: This is a discount for customers who have multiple cars on one auto insurance policy.
- Homeownership discount: Do you own a home or condo? If so, you can save up to 5% off your auto insurance.
- Safe driver discount: For drivers with no accidents, violations or major comprehensive claims for the past three years, you could save up to 10%, or up to 23% for the past five years.
- Continuous insurance discount: Drivers who have no gaps in auto insurance coverage could save up to 15%.
- Hybrid or electric vehicle discount: Ask about this if you own or lease a hybrid or electric car.
- New car discount: You could save up to 10% for owning a newer model car that’s three years old or less.
- ETF, paid in full and good payer discounts: You could receive discounts up to 15% for setting up automatic payments, paying in full or always paying on time.
- Early quote discount: If you get a Travelers auto insurance quote before your current policy with another company expires, you could save between 3% and 10%.
- Good student discount: Do you have a high school or college student on your policy who maintains a “B” average or better? If so, you could qualify for an 8% insurance discount.
- Student away from home discount: If you have a college student on your policy who goes to school at least 100 miles away and won’t be driving your cars, you could save up to 7%.
- Driver training discount: In an effort to encourage young drivers to work on their driving skills, Travelers offers up to 8% off if your young driver takes a qualified training course.
- Annual mileage Bundling Defensive driving
- Driver training Family Multi-vehicle Safe driver
USAA insurance products, including auto, homeowners, and renters policies, are only available to members of the military community. As such, not all drivers will be eligible for coverage through this insurer.
USAA sells insurance for cars, motorcycles, ATVs, motorhomes, boats and classic cars. And, for those who fly to their destinations, aviation insurance. Optional coverage types include roadside assistance and rental reimbursement.
Current and former U.S. military members, and spouses and children of U.S. military members are eligible for USAA insurance.
For drivers concerned about a rate increase after they cause an accident, USAA offers accident forgiveness insurance. If you remain accident-free for five years, your premium won’t go up after one at-fault accident.
USAA Auto Insurance Discounts
If you’ve had USAA auto insurance for a few years, you can benefit from “length of membership savings.” And if you add auto insurance to a USAA homeowners or renters insurance policy, you could save up to 10%. Other USAA car insurance discounts include:
- Safe driver discount: Do you have a clean driving record for the past five years? If so, you could save money.
- Defensive driver discount: This is a discount for taking an approved course to improve your driving skills.
- Driver training discount: Are you younger than age 21? Drivers under 21 can take a basic driving course and save money on their USAA auto insurance policies.
- Good student discount: Ask about this discount if your high school or college-age child maintains good grades.
- New vehicle discount: For cars that are three years old or newer, you can qualify for this discount.
- Multi-vehicle discount: Look for this price break if you have two or more vehicles on a policy.
- Annual mileage: Based on the number of miles you drive per year, you may qualify for a discount.
- Vehicle storage: When you store your vehicle, you can save up to 60% on your auto insurance. This is especially useful for military members on deployment.
- Family discount: If your parents have USAA insurance, you can save on your premium.
- Military installation discount: When you garage your car on the base you could save up to 15% on comprehensive coverage.
- Length of membership savings: Look for this discount if you maintain coverage with USAA for several years.
- Good student Multi-car Multi-policy
- Pay in full Safety features
- Student away at school Teen driver monitoring
Auto-Owners sells vehicle insurance for cars, ATVs and off-road vehicles, motorcycles, trailers, and boats.
For those who enjoy exploring the nation in a motorhome, Auto-Owners sells motorhome and RV coverage.
Optional add-ons include roadside assistance coverage, additional expense coverage, and lease or loan gap coverage.
If you choose to purchase the Personal Automobile Plus Package from Auto-Owners, you’ll receive 10 other coverage add-ons including identity theft protection, re-keying locks and cell phone replacement.
Auto-Owners also sell “diminished value” coverage. With this coverage, you receive compensation if you’re in an accident and the damage depreciates the value of the vehicle even after it’s repaired.
Auto-Owners Car Insurance Discounts
- Multi-policy discount: If you have other policies (such as a home insurance policy) with Auto-Owners, you can qualify for a discount on your auto policy.
- Payment history discount: You can receive a discount if you paid your policy on time for the last 36 months.
- Green discount: You’ll be eligible for this discount if you go paperless and pay your bill online.
- Life multi-policy discount: You can receive this discount if you bundle a qualified life insurance policy with your auto policy.
- Paid-in-full discount: You’ll be eligible for this discount if you pay your annual premium in full and on time.
- Advance quote discount: This discount is for new customers who request a quote before the effective date of their policy.
- Multi-car policies: You can get a discount if you insure two or more cars under the same policy.
- Safety features discounts: If you have safety features installed in your car like airbags or anti-lock brakes, you could qualify for a discount.
- Good student discount: You may be eligible for up to a 20% discount if your high school or college-age driver maintains at least a “B” average.
- Student away at school discount: If your student is attending a school at least 100 miles from home and without a vehicle, you may qualify for a discount.
- Teen driver monitoring discount: Ask about this if your car has a permanently installed GPS
- Accident-free Defensive driving course Good driver
- Good student Multi-vehicle Student away at school
State Farm is currently the largest auto and home insurer in the U.S. It sells vehicle insurance for cars, motorcycles, RVs, off-road vehicles and boats. For those who have antique and classic cars, State Farm provides coverage for vintage vehicles.
State Farm Auto Insurance Discounts
Whether you’re a safe driver or have multiple vehicles under one policy, you might be able to save on State Farm auto insurance rates.
- Safe driver discount: Whether you maintain an accident-free driving record or educate yourself on best driving practices, you could receive a discount. For example, if you take a defensive driving course or have gone three years without a moving violation or at-fault accident, you could be eligible for a discount.
- Accident-free discount: If you drive three consecutive years without an accident, you may qualify for a discount.
- Good student discount: Do you have a full-time student on your policy who has a B average or better? If so, you could save up to 25%. And the discount can stay with your student ever after graduation (until they reach age 25).
- Student away at school discount: If a driver in your household is under age 25 and moves away to school, you could qualify for a discount.
- Safe vehicle discounts: For drivers who have newer vehicles with the latest safety features, State Farm offers insurance rewards. For example, if your vehicle was made in 1994 or after (depending on the make and model of the car), you could save up to 40% on medical-related coverage.
- Anti-theft discount: You could get a discount if your car has an alarm or other type of anti-theft device.
- Multi-vehicle discount: Look for this if two or more cars in your household are insured by State Farm.
- Multi-policy discount: You can save by bundling other types of insurance with your auto insurance, such as homeowners, renters, condo or life insurance.
- Loyal customer discounts. Customers who insure more than one vehicle or have other insurance types could land a loyalty discount. For example, drivers who insure at least two vehicles on the same policy could save as much as 20%, and drivers who bundle home, condo or life insurance with an auto insurance policy could save up to 17%.
- Defensive driving course discount: If you complete an approved defensive driving class, you could earn a discount around 10% to 15%.
- Driver training discount: Ask about this if your young driver (under age 21) completes a driver training course.
- Anti-theft Multi-policy
- New car Pay in full
- Responsible payer Safe driving club
Allstate sells vehicle insurance for cars, motorcycles, classic cars and boats. For those that enjoy the outdoors and adventure, Allstate also offers coverage for ATVs and RVs.
Optional coverage that can be added to an Allstate policy include roadside assistance, rental reimbursement and sound system insurance. Allstate also offers add-on coverage of gap insurance, new car replacement and diminishing deductible.
Allstate Auto Insurance Discounts
- Early signing discount: If you sign up for your policy seven or more days before the start date, you could receive a discount.
- Responsible payer discount: You can qualify for a reduction if you haven’t received a cancellation notice within the past year.
- Multiple policy discount: You’re eligible if you have more than one Allstate policy, such as auto and homeowners insurance.
- New car discount: If you’re the first owner of a current model year car or one year prior, you can receive this discount.
- Anti-lock brake discount: Driving a car with anti-lock brakes can save you money on your auto insurance.
- Anti-theft discount: The discount may be applied if you have an anti-theft device in your car.
- Allstate eSmart discount: Save by signing up for an ePolicy and going paperless.
- FullPay discount: Receive a discount when you pay your annual premium in full.
- EZ plan pay discount: Receive a discount by setting up an automatic payment plan.
- Safe driving club discount: Your driving may qualify you for the safe driving club and earn you a discount.
- Annual payment Multi-car
- Multi-policy Reduced usage
- Safe driving Young driver.
Erie’s vehicle insurance is available for cars, motorcycles, recreational vehicles, classic cars and boats. You can also purchase insurance for snowmobiles, RVs, ATVs and golf carts. Optional add-ons include:
- Roadside service
- Transportation expenses and rental car coverage
- Lease loan protection
- Ridesharing coverage
For drivers who recently purchased a new car, Erie sells new car protection. With this coverage, your car will be replaced with the latest model if it’s deemed a total loss due to an accident covered by your policy. Erie also offers “better car protection” that pays to replace your vehicle with a car two years newer.
Erie Auto Insurance Discounts
- Safe driving discount: This is for safe drivers with a clean driving record.
- Car safety equipment discount: You can get a discount if your car has safety features like factory-installed airbags, passive restraint, or anti-theft devices.
- Multi-car discount: Drivers who insure two or more vehicles under the same policy may be eligible for this discount.
- Multi-policy discount: Look for this if you bundle other insurance types (like homeowners insurance) with your Erie auto insurance.
- Reduced usage discount: If you don’t use your car for at least 90 consecutive days during your policy period, you could be eligible for this discount.
- Young driver discount: Do you have a driver who is under age 21, unmarried and lives with you? If so, you could save on your auto insurance policy.
- Annual payment plan: Look for savings if you pay your annual auto premium in one lump sum.
- College credit: If your college driver is away at school without access to your car, you may be eligible for a discount.
- Continuous insurance
- Good student Homeowner Multi-car Multi-policy
- Pay in full Teen driver
Progressive customers also report being less likely to renew their policy or recommend the insurer to other drivers.
However, persons with a DUI may be able to unlock savings with Progressive. Its rates for those drivers are among the lowest in our study.
- Liability – bodily injury and property damage
- Medical payments
Alternative fuel Bundling Distant Student Good student Multi-car Pay in full Safe driver
Factors Affecting The Cost of Car Insurance
- Your driving record
- Your age and years of driving experience
- Where you live
- Car insurance coverage selections
- Deductible amount
- Vehicle model
- Your car insurance histories, such as whether you’ve had continuous coverage or lapses
- Your credit-based insurance score
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