Top 10 Car Insurance Companies for April 2022
The best auto insurance companies on the market don’t just offer great coverage and reasonable payouts. They also have a simple claims process, easy-to-use technology, and a great customer service experience.
Choosing the best car insurance company for you can be intimidating. That’s why we at the Home Media review team have done the legal work for you, selecting the top 10 auto insurance companies in the industry. In this article, we’ll review each company’s reputation, availability, coverage options, discounts, and customer experience, while detailing the top five auto insurance providers.
The best car insurance companies on the market
After we thoroughly researched the auto insurance market, 10 companies emerged from the competition as the best auto insurance providers. When rating these insurance companies, our team took into account state availability, breadth of coverage, pricing, and satisfaction scores from experts like J.D. Energy.
We also considered A.M. Best’s financial strength ratings and complaint volume as reported by the National Association of Insurance Commissioners (NAIC). Each insurance company is rated on a 10-point scale. We’ll take a closer look at our top five picks for the best car insurance companies below.
|1- USAA||9.5||Low Rates for Military|
|2- Geico||9.2||Editor’s Choice|
|3- State Farm||9.2||Most Popular Provider|
|4- Progressive||9.2||Low Rates for High-Risk Drivers|
|5- Travelers||9.1||Most Coverage Options|
|6- Erie Insurance||9.0|
|7- Liberty Mutual||8.8|
|8- Auto-Owners Insurance||8.8|
|9- Farmers Insurance||8.7|
Our picks for the best car insurance
Our top five picks for the best auto insurance are USAA, Geico, State Farm, Progressive and Travelers.
- USAA: Low Rates for Military
Average cost: $
Number of discounts: 12
Usage-based insurance: SafePilotTM in 37 states
USAA is our number one choice for the best auto insurance in the country. Regularly tops J.D.’s auto insurance studies. Strength as one of the best service providers in terms of customer satisfaction and value. The company is known for its high customer ratings and reasonable coverage options, including accident overlooks. However, it has strict eligibility requirements and not everyone qualifies for coverage.
USAA auto insurance is only available to military members, veterans, and their families, which greatly restricts who can purchase coverage. If you qualify for a USAA insurance policy, it is one of the best options out there. In addition to standard types of auto insurance, USAA offers the following optional coverages:
- Roadside assistance
- Rental car reimbursement
- Accident forgiveness
- Glass coverage
- Guaranteed asset protection
- Car replacement assistance (CRA)
- Rideshare insurance
USAA has an A++ financial strength rating from AM Best and an A+ rating from the Better Business Bureau (BBB). The auto insurer accounted for 6.01% of the market share in 2021, according to NAIC. Although not the largest auto insurance company, USAA is still respectably financially strong. In 2021, the company recorded $15.73 billion in premiums for private passenger car insurance.
While USAA doesn’t have many physical locations, policyholders are still impressed with the company’s customer service. USAA received the highest rating in the J.D. Power 2021 US auto insurance is available in all regions of the US, although it is not qualified due to its eligibility criteria. And in a January 2022 auto insurance survey, nearly 65% of 107 respondents with coverage through USAA said they were very satisfied with USAA insurance, the highest of any provider.
USAA is also known for being affordable. It offers the cheapest auto insurance on average compared to any other provider we have seen. Our price estimates show that good drivers pay around $1013 per year on average for comprehensive auto insurance with USAA. The company also offers discounts based on driver safety, multiple policies, safety features like airbags, and more.
- Geico: Editor’s Choice
Average cost: $$
Number of discounts: 16
Usage-based insurance: DriveEasy in 26 states
If you do not qualify for USAA insurance coverage, Geico is worth considering as a better option for you. The company offers reliable service, a wide range of coverage, and affordable car insurance rates, based on our estimated rates.
In addition to the standard coverage options, Geico offers useful add-ons such as:
- Emergency roadside assistance
- Rental car reimbursement
- Mechanical breakdown insurance (MBI)
- Rideshare insurance
Geico has been rated A++ (Excellent) by AM Best, which means the company has the financial backing to pay customers’ insurance claims. A larger auto insurance company like Geico comes with more financial stability compared to a smaller local company.
Geico also has a good reputation for customer service. According to a study by J.D. Power Auto Insurance, Geico performed better than average in the California, Central and New England regions. The survey asked customers about their satisfaction with claims, billing, price, policy and more. Additionally, our January 2022 insurance survey of 1,000 participants found that nearly 12% chose Geico as their insurance provider.
In terms of cost, Geico’s prices are some of the most affordable we’ve seen. Our price estimates say drivers pay about $1,350 a year on average for comprehensive Geico car insurance. These rate estimates apply to individuals age 35 and older with good credit and driving histories. Our ratings put Geico in the top three for affordability compared to other national service providers.
Plus, the insurance company offers several ways to save money, including a nice driver discount (up to 26% off), a nice student discount (up to 15% off), and a multi-car discount (up to 15% off). 25% discount). ).
- State Farm: Most Popular Provider
Average cost: $$
Number of discounts: 13
Usage-based insurance: Drive Safe & SaveTM (not available in California, Massachusetts, and Rhode Island)
State Farm is another good option when it comes to finding the best auto insurance in the industry. Our January 2022 insurance survey found that the insurance company was the most popular provider out of 1,000 respondents, with 13% saying they had purchased insurance coverage from State Farm. In addition to standard types of coverage, State Farm offers:
- Emergency Road Service Coverage
- Covering car rental and travel expenses
- Rideshare driver coverage
Our cost estimates show that good drivers pay an average of about $1,339 per year for comprehensive insurance with State Farm. This ranks State Farm among the most expensive service providers in the country.
As the nation’s largest auto insurer, State Farm is no stranger to claiming satisfaction—the company has been awarded an A++ rating by AM Best. According to NAIC, State Farm held 15.93% of the auto insurance market share in 2021. State Farm also had fewer complaints than the industry average in 2020, although customer opinions differ about BBB.
We chose State Farm as one of the best auto insurance companies in the country in part because of safe driving and the use-based discounts it offers to young drivers. There are two types of discount programs available through mobile apps:
- Drive Safe & Save: State Farm tracks and rewards safe driving habits with the Drive Safe & Save mobile app. By reducing driving behaviors such as rapid acceleration, hard braking and acceleration, drivers can get up to 30% off their premiums. This program is not available in California, Massachusetts, or Rhode Island.
- Steer Clear®: Teens and new drivers can receive training courses, tutoring, driving practices and certification from the program to encourage good driving habits. After successful completion of the program, drivers receive a discount on car insurance premiums.
- Other State Farm auto insurance discounts include those for good grades, safe driving, defensive driving, vehicle safety features, and driving course completion. The company does not offer a military discount.
- Progressive: Low Rates for High-Risk Drivers
Average cost: $$
Number of discounts: 13
Usage-based insurance: Snapshot® (not available in California or North Carolina)
If you are under 21, an elderly driver, or have a DUI/DWI, Applying may be the best auto insurance option for you. We found that Progressive tends to be one of the cheapest nationwide providers of high-risk drivers other than the USAA. Our pricing estimates also show that cautious drivers pay an average of about $1,397 per year for comprehensive insurance coverage with Progressive, which puts it behind Geico and State Farm in affordability.
In addition to the standard types of auto insurance coverage, Progressive offers:
- Roadside Assistance
- Car rental payment
- Pay off the loan/rent
- Value of assigned parts and equipment
- Rideshare coverage
While Progressive has mixed customer service reviews, it scored above average in about half of the areas in J.D. Energy. The 2022 auto insurance survey found that 74% of progressive policyholders are satisfied with their coverage. Progressive also offers strong financial stability, with an A+ rating from AM Best. The company also recorded more than $35 billion in premiums in 2021, according to NAIC.
Our team reached out to Progressive for comment on the negative review findings, but did not receive a response.
Progressive offers discounts on auto insurance as well as some tools to help you lower your rates. Using a mobile app that tracks and records your driving habits, Progressive’s Snapshot® program rewards safe driving behavior with premium discounts. On average, drivers who use Snapshot save $146 on their policies, according to Progressive. However, this program is not available in California or North Carolina.
Drivers interested in progressive policies should also check out the Name Your Price® tool. The insurance company will customize a variety of coverage options based on your auto insurance budget.
- Travelers: Most Coverage Options
Average cost: $$
Number of discounts: 12
Usage-based insurance: IntelliDrive® (available in 40 states)
Travelers can be a good car insurance option for drivers who want additional coverage options. In addition to the standard types of insurance, the insurance company offers the following:
- Car loan/rent gap insurance
- Car rental coverage
- Roadside Assistance
- Replacement for a new car
- Forgiveness for accidents
- Rideshare coverage
- Insurance for non-owners
- full insurance
Travelers are rated AM Best A++ for financial stability and ability to pay insurance claims. However, the insurance company’s customer service gets mixed reviews. In the book J.D. Strengths, the travelers scored lower than the segment average in nearly every area except New York.
Our team reached out to Travelers for comment on the results of their negative reviews, but did not receive a response.
According to our research, traveler insurance is slightly cheaper than the national average, with an average cost of $1,617 per year for a full coverage policy. The auto insurance company offers a number of discounts, including savings for homeowners, good students, and drivers who remain accident-free.
What are the types of car insurance?
Most auto insurance companies offer six standard types of auto insurance. Depending on your state’s minimum requirements, some types of auto insurance policies are required. However, it is usually a good idea to buy comprehensive coverage rather than just the minimum government coverage.
Auto Liability Insurance – Bodily Injury Liability (BI) insurance covers drivers and other passengers if you are at fault in a collision, and Property Damage Liability (PD) covers cars or other property if you are at fault in a collision.
- Collision Insurance – Collision coverage protects your vehicle no matter who is at fault.
- Comprehensive Insurance: Comprehensive coverage pays compensation for damages to your vehicle due to environmental factors, theft or vandalism.
- Medical Payments (MedPay): MedPay covers medical expenses for you and your passengers after a collision.
- Personal Injury Protection (PIP): PIP covers medical bills, lost wages, and death benefits for you and your passengers, regardless of fault.
- Uninsured/Uninsured Driver Cover (UIM/UM): This type of coverage protects you if you have a car accident with an uninsured or uninsured motorist.
An auto insurance survey in January 2022 found that 67% of 1,000 respondents had purchased full coverage insurance, which includes a combination of liability, collision and comprehensive coverage.
How much does car insurance cost?
According to our estimated rates, 35-year-old drivers with clean driving records and good credit pay an average of $1,000 to $2,500 per year for comprehensive insurance. Car insurance rates depend on many factors, including your age, location, credit score, driving history, and vehicle type.
Here are 11 popular insurance providers and their average monthly and yearly costs based on our pricing estimates:
|Car Insurance Provider||Average Monthly Cost Estimate||Average Annual Cost Estimate|
How car insurance costs differ according to a driving profile ?
Several factors affect how much you pay for auto insurance coverage, which is why every auto insurance company allocates quotes to each driver. For example, accidentally getting into an accident can add about $912 to your annual rate on average, while having a bad credit card or DUI can add on average about $1,456.
Cost of auto insurance by state
While costs vary based on your driving profile, your auto insurance quote may be higher or lower depending on where you live. Based on our price estimates, Michigan, New York, and Louisiana tend to be the most expensive states for auto insurance, while Ohio, Wisconsin, and Maine are generally the cheapest.
What affects the cost of car insurance?
The cost of car insurance is affected by many factors, some of which are under the driver’s control and some of which are not. Understanding what you can control can help ensure that you get the best insurance rate.
Here are the most common factors that affect auto insurance costs:
- Location – Drivers in larger urban areas often experience higher car insurance rates. Insurance companies take into account the increased potential for collision due to the increase in traffic and vehicles per person in cities.
- Age: Drivers under the age of 25 and older drivers receive high insurance premiums, as these types of drivers are considered high risk. New drivers, regardless of their age, will also have higher car insurance costs.
- Driving Record – If you have a faulty accident, moving violation, or DUI/DUI on your record, your auto insurance policy will cost more.
- Credit Rating – A high credit rating from insurers indicates that the driver is trustworthy and financially responsible, and therefore your auto insurance policy will be less expensive. Having a low credit score can increase your rates (except in California, Hawaii, Massachusetts, and Michigan).
- Type of car: Drivers who own expensive sports cars often pay more for better auto insurance because repairs are more expensive after an accident.
- Deductible: A lower discount leads to a higher premium.
How to find the best car insurance rates ?
Getting the most expensive auto insurance quotes can be tricky, especially with the amount of information drivers need to know about policies. We’ve put five key steps below that explain how to find the best auto insurance rates for your budget.
- Get quotes for car insurance
It is always a good idea to compare car insurance quotes between companies. Depending on your driver profile and the other factors we mentioned above, the cost of car insurance can vary widely.
Some insurance providers offer reasonable rates for older drivers, while others offer cheap car insurance for new drivers or teens. Before setting a price, contact several car insurance companies. You can compare rates online on your own or work with an independent insurance agent to compare policies.
- Look for discounts
Companies offer a wide range of car insurance discounts, so look for discounts that apply to your situation. For example, some providers offer better student discounts, while others offer discounts for military and professional affiliations. Major providers offer other insurance products, such as homeowners, renters, and life insurance, so you can often find discounts on bundled policies as well.
- Choose a higher discount
While it may seem a burden at first, a higher deductible can significantly reduce auto insurance costs. Ask your insurance provider what discount options are available for your coverage policy and see how each affects your premium. However, keep in mind that you will need to be able to pay the deducted amounts in the event of a claim.
- Keep your credit in check
Pay all bills on time and see if there are additional ways to improve your credit score. Paying your bills in full and keeping your credit balances low will also help boost your credit score.
- Try Remote Insurance
Remote insurance programs offer discounts based on your driving habits. If you have a short trip and practice good driving habits, you can save money with Pay Per Mile Insurance or the Safe Driving Program.
Consumer experience with auto insurance companies
In January 2022, our team of experts surveyed 1,000 people who had purchased car insurance coverage. Most participants used one of the auto insurance companies in this article, while some used other providers.
Shopping for the best auto insurance coverage
According to the survey, 28% of policyholders purchase auto insurance coverage for periods of more than one year. Another 26% said they buy auto insurance coverage every six months, while 25% said they buy only once a year.
We found that most policyholders purchased auto insurance in the following ways:
- Use the 30% online price comparison tool
- 24% received quotes online through individual companies
- 21% contact auto insurance companies directly
- 16% use a broker or independent insurance agency to find coverage
Rising prices from auto insurance companies
In our survey, we asked participants if they had ever experienced a fare increase without an apparent cause, such as an accident or ticket. More than 40% of the 1,000 respondents reported experiencing a rate increase at some point.
File a claim with your insurance company
Our survey found that 25% of policyholders settled their insurance claims within two weeks. This was followed by 24% who said their claims had been dealt with within two to four weeks, while 14% said it had taken more than four weeks.
What is the best insurance company for you?
The best car insurance companies can vary depending on your needs and driver profile. We recommend Geico as our Editor’s Choice provider for most drivers based on its affordability, strong financial position, and positive customer service ratings.
It is always a good idea to compare insurance companies. Get free auto insurance quotes when you shop to find the best coverage and rate for your situation.
Frequently Asked Questions: Best Car Insurance
Based on our research, USAA, Geico, State Farm, and Progressive and Travelers are the most trusted auto insurance companies in the industry. Each is rated highly in our research for reputation, cost, coverage, and customer experience.
Minimum government liability coverage is the cheapest form of auto insurance. This is because you will pay the absolute minimum required to drive in the state in which you live.
Our pricing estimates show that USAA tends to be the cheapest car insurance company for many drivers. Married drivers who are 35 years old with good credit and a clean driving record pay an average of about $1,013 annually for comprehensive coverage with USAA. Erie insurance is also very affordable, with prices averaging $1,113 per year.
We rate USAA as the best auto insurance for its combination of affordable prices, a wide range of coverage options, and strong industry ratings. The insurance company received the highest score in every area in J.D. Energy.
Based on our research, we’ve found that USAA, Geico, State Farm, Progressive, and Traveler offer good auto insurance coverage for drivers. These providers top our list of the best auto insurance companies based on reputation, availability, coverage, cost, and customer experience.
If your car insurance claim is approved by your carrier, you will receive a payment for the amount of the loss as determined by the carrier. Depending on your insurance claim, you may be paid directly or your insurance company may send you directly to the repair shop to cover any repairs.
Because consumers trust us to provide factual and accurate information, we’ve created a comprehensive rating system to craft our ratings for the best auto insurance companies. We collect data on dozens of auto insurance providers to rate companies according to a wide range of rating factors. The end result was an overall rating for each provider, with the insurance companies with the most points coming first on the list.
Here are the factors our ratings take into account:
- Cost (30% of the total points): Estimates of the car insurance rate resulting from the quadruple information services and discount opportunities have been taken into account.
- Coverage (30% of total points) – Companies that offer a variety of insurance coverage options are more likely to meet the needs of consumers.
- Reputation (15% of total points) – Our research team has taken into account market share, reviews from industry experts and years of work when awarding this degree.
- Availability (10% of total points): Auto insurers with the highest statewide availability and few eligibility requirements scored the highest in this category.
- Customer Experience (15% of total score) – This score is based on the volume of complaints reported by NAIC and customer satisfaction ratings reported by J.D. Energy. We also take into account the responsiveness and friendliness of each insurance company’s customer service team based on our own buyer analysis.