The Definitive Guide to The Best Car Insurance Companies in the United States

The 10 best car insurance companies in the United States hold a commanding 77% market share, totaling over $213.1 billion in direct premiums—a 14.5% rise from the previous year, per NAIC data. Despite a few major players, these giants offer diverse products and services. Vehicle Accident Injury ranks these insurers, presenting coverage details and customer experiences. Below are the leading U.S. car insurance providers by market share.

10 Best Car Insurance Companies in the United States

Stay protected with the best car insurance companies in the United States. Discover the perfect coverage for your vehicle today.

1. State Farm

• Market share: 16.8%
• Direct premiums written: $46.7 billion
• Shopping experience rating: 877 out of a 1,000-point scale
• Claims satisfaction rating: 882 out of a 1,000-point scale
• Financial strength: A++
• States covered: All 50 states

State Farm, the largest U.S. car insurance company with nearly 17% market share, surpasses competitors by over $8 billion in direct written premiums. With a nationwide network of 19,200+ local agents, it offers accessible coverage across the country, except in Massachusetts and Rhode Island. State Farm is renowned for providing rates below the industry average, catering to all demographics, including seniors, teens, and those with accident or speeding records.

Their discounts, like Drive Safe & Save (up to 30% savings) and Steer Clear (20% savings for new drivers under 25 with a clean record), make coverage more affordable. State Farm excels in customer experience with a user-friendly website and mobile app for quotes, premium payments, and claims. On average, U.S. car insurance costs $1,730 annually for full coverage and $635 for minimum coverage.

Pros:

1. Extensive network of exclusive local agents
2. Exceptional financial stability
3. The Steer Clear program aids young drivers’ savings
4. Drive Safe & Save telematics program available
5. Above-average J.D. Power satisfaction rating for claims

Cons:

• Limited 24/7 customer support
• Above-average NAIC Complaint Index
• “Earned” accident forgiveness, not purchasable
• Policies last six months, allowing potential biannual rate hikes

2. Progressive

• Market share: 14%
• Direct premiums written: $38.9 billion
• Shopping experience rating: 853
• Customer satisfaction rating: 861
• Financial strength: A+
• States covered: All 50 states

Progressive holds just over 14% of the market share, closely trailing State Farm. It offers nationwide coverage and diverse policy options, making it an excellent choice for various drivers, including those with DUI convictions requiring SR-22 or FR-44 filings.

Progressive’s rates are budget-friendly, with full coverage 22% below the national average and minimum coverage 13% cheaper. Their digital tools, like Name Your Price and AutoQuote Explorer, simplify coverage selection. The Snapshot telematics program can lead to savings based on driving habits.

Progressive’s average full-coverage cost is nearly 7% lower than the national average of $1,730 per year or $144 per month. Discounts include continuous insurance, multi-car, homeowner, good student, and paperless options. With a substantial market capitalization, Progressive ranks among the largest and best insurance companies in the United States.

Pros:

1. Robust online resources
2. Diverse vehicle coverage choices
3. Abundant discount prospects
4. Potential for high-risk driver solutions
5. Accessible SR-22 filings

Cons:

• Limited extra coverage options
• Regional variations in customer satisfaction
• Discrepancies in rates between online and agency quotes
• Snapshot telematics may increase rates for less-safe drivers

3. GEICO

• Market share: 13.8%
• Direct premiums written: $38.1 billion
• Shopping experience rating: 857
• Claims satisfaction rating: 874
• Financial strength: A++
• States covered: All 50 states

GEICO offers competitive rates for various drivers, including those with blemished records or poor credit. While it’s cost-effective for many, it tends to be pricier for DUI offenders. Policyholders benefit from extras like accident forgiveness and a usage-based program. The user-friendly website and mobile app enhance customer convenience.

GEICO serves all 50 states but lacks extensive local agent coverage. With average rates 24% below the national average, it provides discounts for features like airbags, good students, safe drivers, new cars, and federal employees, making it a cost-effective choice for many.

Pros:

1. Possible for high-risk drivers
2. Strong mobile app and digital tools
3. Provides various discounts
4. Below-average rates for many drivers
5. DriveEasy telematics program available

Cons:

• Regional variability in customer service
• Fewer coverage choices compared to rivals
• Fewer local agents
• Limited additional products
• Third-party underwriting for extra products

4. Allstate

• Market share: 10.8%
• Direct premiums written: $29.6 billion
• Shopping experience rating: 853
• Claims satisfaction rating: 889
• Financial strength: A++

Allstate, ranking fourth among the largest and best car insurance companies in the United States with a 10.69% market share, offers a range of coverage options. It boasts a strong J.D. Power claims satisfaction rating and provides a claims satisfaction guarantee, covering up to six months of premium costs if you’re dissatisfied with the claims process.

Allstate offers standard car insurance types and add-ons like new car replacements, accident forgiveness, and guaranteed asset protection (gap insurance). They have two usage-based programs: Drivewise, which rewards safe driving through an app, and Milewise, which offers a pay-per-mile option.

While rates are about 21% above the national average, discounts like multi-policy and good student can help lower costs.

Pros:

1. Earn rewards and savings for safe driving via Drivewise
2. Receive a Safe Driving Bonus every six accident-free months
3. Enjoy discounts for new vehicles and young drivers

Cons:

• Drivewise program availability limited by state
• Premiums fluctuate based on online or local agent purchase

5. USAA

• Market share: 5.9%
• Direct premiums written: $16.4 billion
• Shopping experience rating: 874
• Claims satisfaction rating: 890
• Financial strength: A++
• States covered: All 50 states

USAA, with strict eligibility for active-duty military, veterans, and eligible family members, excels in J.D. Power’s customer and claims satisfaction studies. According to Moody’s, S&P, and AM Best, it offers impressive financial strength.

Notably, USAA grants military-focused benefits, such as a 60% deployment-related discount. Their competitive rates cater to various drivers, while a range of discounts further reduces premiums. USAA provides standard coverages, including extras like accident forgiveness and car replacement assistance.

Their average prices are 39% lower than the national full-coverage auto insurance average, making them an excellent choice, and they’re also a top employer in the insurance industry.

Pros:

1. Impressive J.D. Power customer service ratings
2. Exceptional AM Best financial stability assessment
3. Affordable rates
4. Tailored military coverage choices
5. Features SafePilot telematics program

Cons:

• Membership eligibility limitations
• Limited policy customization
• Digital and phone-only access for policies and claims
• SafePilot availability varies by state
• Lack of 24/7 customer service
• Below-average J.D. Power digital shopping score

6. Liberty Mutual

• Market share: 4.9%
• Direct premiums written: $13.7 billion
• Shopping experience rating: 865
• Claims satisfaction rating: 870
• Financial strength: A
• States covered: All 50 states

Liberty Mutual is a convenient choice for bundling multiple policies, potentially saving up to $950 annually. They provide car insurance savings for good students, students living away from home, and multi-vehicle discounts, which can be advantageous for families with young drivers. Moreover, Liberty Mutual’s RightTrack® telematics initiative offers extra savings of up to 30% for safe driving habits.

To get a quote tailored to your needs, contact a Liberty Mutual agent, as national average rates aren’t available. Consolidating your insurance with Liberty Mutual can streamline management.

Pros:

1. Wide range of insurance offerings
2. Robust digital resources
3. Accessible local offices
4. Abundance of discount options
5. Comprehensive endorsement selection

Cons:

• Below-par 2022 J.D. Power claims satisfaction rating
• Weak J.D. Power digital service ratings
• Low J.D. Power customer satisfaction scores in many areas
• Above-average private passenger NAIC Complaint Index
• Absence of 24/7 customer assistance

7. Farmers

• Market share: 4.6%
• Direct premiums written: $12.6 billion
• Shopping experience rating: 846
• Claims satisfaction rating: 882
• Financial strength: A

Auto insurance firms offer a range of discounts to encourage safe driving, academic achievement, and multiple-vehicle coverage. Having more discounts means more potential savings. Farmers Insurance leads with 23 discounts, offering opportunities to save through paperless billing, bundling, and timely premium payments.

While Farmers has more discount options, their national average annual rates for minimum and full-coverage plans are notably higher than industry norms, at $881 and $2,140, respectively.

Pros:

1. Provides a variety of 23 discount options
2. Maintains a lower-than-average number of NAIC complaints
3. Allows bundling coverage with other products for added savings

Cons:

• Note that not all discount options apply in every state
• The premium for maximum coverage exceeds the national average.

8. Travelers

• Market share: 2.1%
• Direct premiums written: $5.8 billion
• Shopping experience rating: 848
• Customer satisfaction rating: 854
• Financial strength: A++
• States covered: states and Washington D.C.

With over 150 years of experience, Travelers is a reliable choice for auto insurance. Their strong network of independent agents, customizable coverage options, and various endorsements, including gap coverage, rental coverage, and more, offer drivers nationwide flexibility.

The average cost for minimum coverage is $730 per year, slightly above the national average, while full-coverage policies are a bit cheaper at $1,669 per year.

Pros:

1. Extensive national agent network
2. Attractive discount offerings
3. Diverse policy choices
4. Outstanding AM Best financial strength rating
5. Lower private passenger NAIC Complaint Index

Cons:

• 2022 J.D. Power claims satisfaction score below average
• Ridesharing coverage in Colorado and Illinois only
• Subpar J.D. Power digital shopping and service scores
• Available in 42 states and Washington, D.C. exclusively
• Above-average overall NAIC complaint index

9. American Family

• Market share: 2.1%
• Direct premiums written: $5.8 billion
• Shopping experience rating: 867
• Claims satisfaction rating: 874
• Financial strength: A

American Family stands out with above-average claims satisfaction and a diverse product lineup, including OEM coverage, rideshare insurance, and more. Their KnowYourDrive program offers discounts for safe drivers, making them one of the best car insurance companies in the United States.

However, this insurer operates in just 19 states and tends to have higher rates, with a $685/year minimum coverage premium and $1,537/year for full coverage, still below the national average.

Pros:

1. Fewer customer grievances than anticipated for a corporation of its magnitude.
2. A plethora of coverage options available.
3. Extensive array of cost reductions.

Cons:

• Unavailable in every state.

10. Nationwide

• Market share: 2%
• Direct premiums written: $5.5 billion
• Shopping experience rating: 861
• Claims satisfaction rating: 868
• Financial strength: A+
• States covered: 46

Nationwide boasts extensive car insurance coverage in 46 states plus D.C., excluding only Alaska, Hawaii, Louisiana, and Massachusetts. As the tenth-largest insurer, it offers standard coverage options, along with discounts for multi-policy holders, safe drivers, and good students. Nationwide also provides usage-based insurance options: SmartRide and SmartMiles.

Their annual averages for minimum and full coverage policies are $613 and $1,281, respectively, below national rates.

Pros:

1. Fewer than anticipated grievances reported to state authorities.
2. Extensive range of choices for customers seeking multiple-product solutions.
3. Valuable perks for dedicated clients like minor accident forgiveness, pet injury protection, and car key replacement.

Cons:

• Unavailable in all states for auto insurance policies.

FAQ:

The Bottom Line

The best car insurance companies in the United States offer dependable choices with quality telematics plans and coverage enhancements. Due to variations in cost, customer contentment, and discount options, we suggest comparing quotes to locate the ideal policy for your requirements.