10 best auto insurance companies (2021 review)

Compare the 10 best auto insurance providers and their scores in different categories.

See our top six car insurance recommendations and their pros and cons.

Read our tips for finding the best car insurance for you.

Finding the best car insurance can be a long and frustrating process. Every company claims to provide the best services at the lowest prices. But who actually provides the best auto insurance on the market?

To help you answer that question, we have done extensive research on the top 32 auto insurance companies in the industry to see how they compare. We’ve narrowed our selection down to the 10 best choices for car insurance. Our scoring is based on factors such as availability, customer service, affordability, coverage, industry standing, and online experience.

Keep reading to see a breakdown of our top choices, and use the form below to get free, personalized car insurance quotes.

Who has the best car insurance plans? We compared 10 providers and listed our top six, based on different factors.

Best Car Insurance

Superlative

Overall Score (%)

Coverage Score (%)

Affordability Score (%)

GEICO

Best Overall

96

95

95

USAA

Best for Military Families

96

95

95

State Farm

Best for Student Drivers

95

95

90

Progressive

Best for High-Risk Drivers

95

95

90

AAA

Best Membership Perks

92

90

90

Liberty Mutual

Best for New Drivers

91

95

85

The Hartford

—

91

95

90

Allstate

—

90

90

80

Nationwide

—

89

95

85

Root Auto

—

89

85

95

GEICO: Best Overall

USAA: Best for Military Families

State Farm: Best for Student Drivers

Progressive: Best for High-Risk Drivers

AAA: Best Membership Perks

Liberty Mutual: Best for New Drivers

How to Find the Best Car Insurance

1. Shop around and compare rates from many auto insurance companies.

2. Understand the factors that affect your insurance rates.

3. Always ask about possible discounts.

4. Set the right deductible.

5. Regularly check your credit score, as a low score may impact your premium.

6. Consider skipping comprehensive and collision coverage for an older car.

GEICO: Best Overall

We chose GEICO as our top pick because of its high scores across all categories and availability to most drivers. With low premiums and a long list of discounts, GEICO is an excellent choice for anyone on a tight budget. Car insurance coverage options from GEICO are well suited for young drivers, military members, and those who prioritize safe driving habits. Those looking for high liability coverage limits should also consider a policy with GEICO.

GEICO makes it easy to sign up by offering all of its services online, whether you are applying for a car insurance policy or going through the claims process. Based on our research, GEICO is one of the best car insurance providers on the market.

GEICO discount opportunities include:

Military discount

Safe driver discount

Multi-policy discount

New vehicle discount

Multi-vehicle discount

Safety device discount

Good student discount

Anti-theft device discount

Defensive driving discount

Federal employee discount

Driver’s education discount

Emergency deployment discount

Years in Business: 85 years (since 1936)

Market Share: 13.78 percent, based on the 2019 National Association of Insurance Commissioners (NAIC) report

Availability: All 50 states

GEICO Pros

GEICO Cons

Often the most affordable car insurer

A++ financial strength rating from AM Best

Good rates for teens/students and those involved in at-fault accidents

Highest-rated mobile app

Does not offer guaranteed asset protection (GAP) insurance

Average customer service

USAA: Best for Military Families

USAA enjoys an outstanding reputation and for good reason. In the J.D. Power 2020 U.S. Auto Claims Satisfaction Study

SM

and U.S. Auto Insurance Study

SM, the company had the highest scores. From AM Best, it received the highest possible rating of “Superior,” indicating financial stability and thereby making it one of the best car insurance companies available today.

While USAA tied for the highest overall rating in our industry review, the provider comes with a limitation. To be insured through USAA, you must have either served in the U.S. military or be the spouse or child of someone who has USAA membership.

USAA offers the following discounts:

Family discount

Military discount

Safe driver discount

Multi-policy discount

New vehicle discount

Multi-vehicle discount

Good student discount

Driver training discount

Vehicle storage discount

Annual mileage discount

Defensive driving discount

Military installation discount

Years in Business: 99 years (since 1922)

Market Share: 6.01 percent

Availability: All 50 states, but limited to military members and families

USAA Pros

USAA Cons

Highest score in J.D. Power’s 2020 Auto Claims Satisfaction Study

A++ financial strength rating from AM Best

Suited for individuals traveling or living abroad

Instant service through website or app

Excellent claims service

Limited to U.S. military members (enlisted, active, honorably separated, or retired), candidates in commissioning programs, and spouses and children of USAA members with an auto or home policy

Does not offer GAP insurance, interior vehicle coverage, or new car replacement coverage

State Farm: Best for Student Drivers

State Farm is the largest auto insurance company in the U.S., accounting for just over 16 percent of the market in 2019, according to the NAIC. The insurer has what is arguably the best financial strength among the auto insurance companies on this list. However, what most people associate with State Farm is not its size or financial strength, but rather its customer service agents. If you apply for State Farm insurance, you will be assigned a local insurance agent, with whom you’ll work closely to customize policies or file a claim.

If you don’t want to work with an agent in person, you can visit State Farm’s website or use one of State Farm’s four apps, including the State Farm App, Drive Safe & SaveTM, Steer Clear®, and the State Farm Pocket Estimator. Steer Clear is a safe driving program that is a great way for drivers under the age of 25 to save money, making State Farm the best car insurance option for college and high school students.

State Farm policyholders can take advantage of the following discounts:

Anti-theft discount

Multiple line discount

Good driving discount

Accident-free discount

Multiple auto discount

Vehicle safety discount

Good student discount

Driver training discount

Passive restraint discount

Defensive driving discount

Student away at school discount

Years in Business: 99 years (since 1922)

Market Share: 16.14 percent

Availability: 48 states (excludes Massachusetts and Rhode Island)

State Farm Pros

State Farm Cons

Largest auto insurer in the U.S., currently servicing over 83 million policies

Dedicated insurance agents

A++ financial strength rating from AM Best

Multiple car insurance apps

Wide range of discounts

Average customer service and claim handling ratings

Mixed reviews

Does not offer accident forgiveness

Progressive: Best for High-Risk Drivers

Everyone knows Flo, the fictional salesperson from Progressive, but did you know Progressive has a history of being a step ahead of competitors, including being the first to allow people to purchase insurance plans online in the 1990s?

Since then, Progressive has only improved its online experience by adding features such as the Name Your Price

®

tool that allows you to start with your desired payment and view the best car insurance plans based on your budget.

Progressive also sets itself apart by being more affordable for drivers who have a DUI/DWI on record. While many auto insurance companies double or even triple payments, Progressive merely increases the premium an average of six percent.

While it may be the best choice for drivers with a history, it should be noted that the average Progressive customer pays about $1,500 to $2,000 per year, which is more than the national average.

Progressive discount offers include:

Multi-car discount

Pay in full discount

Sign online discount

Teen driver discount

M

Good driver discount

Homeowner discount

Online quote discount

Good student discount

Distant student discount

Paperless billing discount

Automatic payments discount

Continuous coverage discount

Years in Business: 84 years (since 1937)

Market Share: 12.25 percent

Availability: All 50 states

Progressive Pros

Progressive Cons

A+ financial strength rating from AM Best

More affordable for drivers who have a DUI/DWI

Offers free pet injury coverage

Great online comparison tools

Good range of discounts available

Customers pay more than the national average

Average J.D. Power scores for customer service

AAA: Best Membership Perks

Most of us associate AAA with roadside assistance, but the company offers much more – including car insurance. AAA stands out because of its unrivaled benefits to its members, including discounts on insurance, automotive, bicycle, and locksmith services, as well as select retailers, dining outlets, rental cars, and more.

While the company has over 60 million members, note that its services are regionally focused and therefore not available in all zip codes. Another thing to keep in mind is even though the company offers a wide range of discounts, you have to be a member of AAA, which requires you to pay an annual fee, to qualify for insurance and other benefits. If you do qualify, AAA is one of the best car insurance options in the industry.

Discount offers from AAA vary by region, but common AAA discount opportunities include:

Loyalty discount

New car discount

Pay-in-full discount

Safe driver discount

Homeowner’s discount

Multiple policy discount

Safety features discount

Multiple vehicle discount

Paperless billing discount

Professional association discount

Years in Business: 119 years (since 1902)

Market Share: 0.81 percent

Availability: All 50 states, though coverage is regionally focused

AAA Pros

AAA Cons

A financial strength rating from AM Best

Good range of discounts available, especially for members

Local expertise

Need to be a member to be eligible for insurance

Not available for all zip codes

No rideshare coverage

Liberty Mutual: Best for New Drivers

Liberty Mutual is one of the best car insurance companies in the U.S. and also sells property and casualty, health, and life insurance policies. Though the company started over 100 years ago in the U.S., it has a large international presence and now operates in 17 countries.

We recommend this auto insurance company particularly for new drivers, as it has the highest new driver discount out of our compared brands. Other auto insurance discounts include an online purchase discount, a bundling discount when also purchasing home insurance, and up to 30-percent off for drivers with a good record.

As with most car insurance companies, rates depend on your geographic location. This is especially true for Liberty Mutual’s car insurance rates, so make sure to get an accurate quote.

Liberty Mutual discount offers include:

Military discount

Multi-car discount

Multi-policy discount

Homeowner discount

Accident-free discount

Violation-free discount

Early shopper discount

Good student discount

Safety features discount

Paperless policy discount

Anti-theft device discount

Online purchase discount

Automatic payment discount

Hybrid/electric vehicle discount

Student-away-at-school discount

Years in Business: 109 years (since 1912)

Market Share: 4.62 percent

Availability: All 50 states

Liberty Mutual Pros

Liberty Mutual Cons

A financial strength rating from

AM Best

Active in 17 countries

High discounts, especially for young drivers

Special teacher coverage

Claims process ranks below average in customer satisfaction

Higher premiums

You never know when you will need it: we provide six tips below to help you find the best car insurance.

How to Find the Best Car Insurance

As you call around and get auto insurance quotes from providers, consider these tips to help find the best car insurance for you.

1. Shop around and compare rates from many auto insurance companies.

Be aware that no single insurer is the lowest-priced option for everyone, and the best car insurance for you might be different than the best provider for someone else. Your premium is dependent on several factors, which is why the cheapest car insurance company for one driver in one location can be the most expensive option for another driver in a different state. Because of this, the best way to find cheap car insurance is to get car insurance quotes from different providers to compare their prices.

You can get a head start by filling out the form at the top of the page.

2. Understand the factors that affect your insurance rates.

As mentioned above, several factors determine your auto insurance rates, so make sure you know what those factors are. The most common include:

Your credit score

Your driving history

Your zip code or state

Years of driving experience

Your age and marital status

The year, make, and model of your car

The number of miles you drive each month

How many cars are part of your auto insurance policy

3. Always ask about possible discounts.

Many insurance companies will offer discounts, so make sure to find out what discounts are available to you to find the best car insurance. Common discounts include those for:

New drivers

Federal employees

Drivers with multiple cars on the same policy

Full-time students with a good academic record

Military personnel, veterans, and family members

Drivers who have taken driver’s ed or defensive driving courses

Drivers who have homeowners or renters insurance with their car insurance provider

Drivers who pay their annual premium in one payment or choose automatic payments

Drivers with clean driving records, remaining accident-free for a certain number of years

Drivers with insured vehicles possessing air bags, anti-lock brakes, anti-theft systems, or daytime running lights

4. Set the right deductible.

If you have several years of driving experience and a good driving record, you could consider paying a higher deductible, which would lower your premium. The downside is you risk paying more out of pocket in the event of an accident, which is why we only recommend this gamble for more established drivers. But if you do consider it worth the risk, it could lead to savings of hundreds of dollars a year.

5. Regularly check your credit score, as a low score may impact your premium.

Unless you live in California, Hawaii, or Massachusetts, your credit score is used to calculate your premium. A Federal Trade Commission study conducted in 2007 found that credit scores can be used as a predictor of risk for automobile policies. The study found that, as the credit score decreases, the number of insurance claims consumers file increases, as well as the cost of those individual claims. Because of this, car insurance companies charge higher-risk drivers higher premiums and lower-risk drivers lower premiums. While this correlation is not always 100-percent accurate, this standard is still used by insurance companies today.

It can take time to build credit, but if your credit score has improved since you first purchased your policy, you may want to shop around and see if you can find a lower rate.

6. Consider skipping comprehensive and collision coverage for an older car.

Collision coverage is intended to pay for repairs to your car if it is damaged by another car or an object, such as a fence.

Comprehensive coverage pays for repairs for damages caused by things such as weather, animal collisions, floods, fire, vandalism, and car theft.

While maintaining full coverage auto insurance that includes collision and comprehensive policies is beneficial, the maximum payout for either of these policies is limited by the value of the car. Because of this, if your car is older or has a lot of miles and therefore has a lower market value, it may not make sense to pay for both of these coverages.

Drivers are required to maintain a bodily injury liability and property damage liability insurance in most states. Some states also require drivers to purchase personal injury protection, medical payments insurance, and/or uninsured/underinsured motorist coverage. Comprehensive and collision coverage is not required by law in any state.

To start comparing offers and find the best car insurance for you, please fill out the form below.