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The best car insurance companies of 2020

Fact-checked with HomeInsurance.com

Article Highlights

Insurance companies rates, ratings and coverage options fluctuate each year. Evaluating the changes, price increases and savings programs that today’s best auto insurance companies have to offer, we have compiled the best car insurance companies of 2020 based on the results of our research. 

We compared top carrier car insurance ratings from several respected industry leaders, such as J.D. Power for customer satisfaction and AM Best for evaluating financial strength. We also considered the average cost of auto insurance for each provider, in addition to factors such as coverage and discount options, as well as technology resources for today’s generation of policyholders.

Based on this research, our top picks for best auto insurance providers in 2020 are provided below.

Best car insurance companies

  1. USAA – Best for military families
  2. State Farm – Best mobile tools
  3. GEICO – Best for affordability
  4. Progressive – Best coverage options
  5. Farmers – Best for hybrid/electric cars
  6. Allstate – Best for local agents
  7. Erie – Best for young drivers
  8. Amica – Best inclusive coverage
  9. Nationwide – Best for drivers with lower credit
  10. Travelers – Best for accident coverage

CompanyAverage annual rate J.D. Power claims satisfaction rating AM Best Standout quality
USAA$1,4845/5A++ (Superior)Best for military families
Customer service 
Claims satisfaction
State Farm$1,6813/5A++ (Superior)Best for local agents
Bundling Personalized service
GEICO$1,2603/5A++ (Superior)Best prices 
Financial ratings
Widespread coverage
Progressive$1,9103/5A+ (Superior)Best coverage options
Online tools
Customized coverage
Farmers$1,5403/5A- (Excellent)Best for hybrid/electric cars
Coverage add-ons
Claims process
Allstate$1,8963/5A+ (Superior)Best customer service
Accessibility
Local service
Erie$1,1413/5A+ (Superior)Best for young drivers
Affordable coverage
Additional protections
Amica$1,4495/5A+ (Superior)Best customer service
Inclusive coverage
Comprehensive coverage
Nationwide$1,5333/5A+ (Superior)Best for poor credit
Mobile tools
Local agents
Travelers$1,7693/5A++ (Superior)Best for replacement coverage
Online tools
Customizable coverage

USAA: Best for military families

USAA is one of the best providers for customer service and satisfaction. Year after year, USAA collects the highest rankings from the industry’s most coveted experts — a perfect score from J.D. Power for claims satisfaction and another from AM Best for financial stability. Unfortunately, you do have to be a member of a military household or have a military relative in your direct family in order to qualify for coverage. 

Standout coverage options

USAA offers multi-faceted coverage options including the following:

  • Extended Benefits Coverage
  • Roadside Assistance
  • Rental Reimbursement
  • Accident Forgiveness

Discounts

USAA also has no shortage of discounts, with special savings programs for its military policyholders. Here are a few unique discounts offered by USAA:

  • Annual mileage
  • Vehicle storage
  • Family discount, up to 10%
  • Loyalty discount, up to 15%
  • Military installation, up to 15%

Customer satisfaction

USAA is one of the only providers with a perfect score from J.D. Power for claims satisfaction. While USAA holds a 5 out of 5 score, most providers do not make it past an average 3-rating. It also receives perfect scores from AM Best with an A++ (Superior) rating for efficient claims processing and excellent financial stability.

Factors that impact USAA’s rates

USAA offers rates that are a little bit cheaper than the national average of $1,555 per year. However, you can expect prices to go up significantly if you have an accident or have poor credit, and even a speeding ticket could cost you a few hundred dollars more.

Average annual rate (full coverage) Compared to national average rate (in dollar amount difference) After one accident After one speeding ticket With poor credit
$1,484-$71$2,006$1,735$2,284

Mobile experience

USAA keeps things easy with its mobile app, which is designed to work with both your insurance and bank accounts. You can report claims and receive roadside assistance right in the app. You also have the choice of fingerprint, voice or face recognition, in addition to an in-app assistant that can either help with your questions or forward you to a representative.

State Farm: Best mobile tools

State Farm is one of the largest providers by market share, offering access to over 19,000 agents across the country for a more personalized touch. With all of the ways to get support instantly, there’s generally less delay in claims filing and processing. 24/7 roadside assistance is also offered, which you can access through the State Farm app.

Standout coverage options

State Farm offers all of the basic coverage options for auto insurance, plus excellent coverage for emergency road service and rideshare drivers:

  • Car Rental and Travel Expenses Coverage
  • Emergency Road Service Coverage
  • Rideshare Driver Coverage

Discounts

State Farm gives you plenty of opportunity for extra earnings with its multitude of discounts. These are a few noteworthy or unique discounts offered by State Farm:

  • Drive Safe & Save™
  • Steer Clear®, up to 15%
  • Good Student Rewards, up to 25%
  • Bundle up to 17%
  • Vehicle Safety Discount
  • Passive Restraint Discount
  • Anti-Theft Discount
  • Multiple Auto Discount, up to 20%

Customer satisfaction

State Farm shares average J.D. Power rates with most of its competitors, coming in with 3 out of 5 Power Circles for claims satisfaction. However, it receives top ratings from AM Best for financial stability. This also indicates excellent processing and short turnaround times for filed claims.

Factors that impact State Farm rates

With State Farm, you will get rates that fall slightly above the national average. You can expect your rates to go up with a ticket or an accident, but the most significant increase is seen with having poor credit.

Average annual rate (full coverage) Compared to national average rate (in dollar amount difference) After one accident After one speeding ticket With poor credit
$1681+$126$2,090$1,951$2,816

Mobile experience

State Farm offers excellent digital tools for your account management. You have the choice of either an online claim or you can use the mobile app to check your claim status or make a payment on the go.  

GEICO: Best for affordability

Competitive rates, discounts, numerous tools and 24/7 support: GEICO offers it all. GEICO has more discounts than most providers, and offers multi-faceted coverage that protects for nearly every possible situation. 

Standout coverage options

GEICO’s full suite of insurance options to choose from includes the following standouts:

  • Property Damage liability
  • Emergency Road Service
  • Rental Reimbursement
  • Mechanical Breakdown Insurance

Discounts

With GEICO, you’ll have plenty of chances to earn extra discounts for significant savings on your car insurance policy:

  • Air Bag, up to 40%
  • Anti-lock brakes, 5%
  • Anti-theft system, 25%
  • Daytime Running Lights, 1%
  • New Vehicle Discount, 15%
  • Good Driver, 26% (Five Years Accident-Free)
  • Seat Belt Use, 15% (Medical or PIP Portion)
  • Good Student, 15%
  • Emergency Deployment, 25%
  • Federal Employee (Eagle), 8%
  • Membership & Employee
  • Military, 15%
  • Multi-Vehicle, 25%

Customer satisfaction

GEICO has fairly average ratings for customer satisfaction from J.D. Power, but you will find excellent ratings for financial stability from AM Best. This reflects an efficient claims process and strong financials.

Factors that impact GEICO’s rates

GEICO falls significantly lower than the national average, saving you nearly $300 in just one year, on average. If you have a speeding ticket on your record, it won’t be as consequential as if you have poor credit. With GEICO, an accident will increase your rates the most.

Average annual rate (full coverage) Compared to national average rate (in dollar amount difference) After one accident After one speeding ticket With poor credit
$1,260-$295$1,978$1,646$1,803

Mobile experience

GEICO’s mobile tools are also outstanding, with round-the-clock coverage for every detail of your policy, from easy claims filing to your very own Virtual Assistant. It’s insurance made for the Digital Age, with simple bill pay, digital cards and roadside assistance.

Progressive: Best coverage options

Progressive specializes in unique protections like PIP, loan/lease payoff and even free coverage for your pets. The discounts are abundant — among the most we’ve seen. This comes in handy, given the company’s higher-than-average rates.

Standout coverage options

Progressive offers some of the most extensive coverage you will find for auto insurance including a few unique coverages:

  • Free coverage for pet injuries
  • Roadside assistance
  • Loan/lease payoff
  • Rental car reimbursement
  • Custom parts and equipment value
  • Rideshare coverage
  • Deductible savings bank

Discounts

For as many insurance options it has, Progressive has even more discounts to help with extra savings. A few signature discounts include:

  • Continuous insurance
  • Snapshot
  • Teen driver
  • Good student
  • Distant student
  • Name Your Price® tool
  • Small accident forgiveness
  • Large accident forgiveness

Customer satisfaction

Progressive delivers average marks for customer satisfaction from J.D. Power. While its AM Best ratings aren’t the very highest, it’s reflective of impressive financial stability.

Factors that impact Progressive’s rates

Progressive does not have the cheapest rates on average. In fact, average premiums run in excess of $355 more than the national average. If you have a speeding ticket on your record, you could pay more than $2,700 for coverage. 

Average annual rate (full coverage) Compared to national average rate (in dollar amount difference) After one accident After one speeding ticket With poor credit
$1,910+$355$2,246$2,704$2,594

Mobile experience

The customer support experience with Progressive is one of the most accessible, with 24/7 support available via phone, online, app or chat support. This is in addition to available claims center and roadside assistance. However, at this time, you are not able to control your renters and homeowners insurance policies via the app.

Farmers: Best for hybrid/electric cars

Farmers is a surprising, modern-day solution for insurance technology, offering special programs to benefit your hybrid or electric car. Coverage options are extensive and comprehensive, but you won’t find much room for discounts. 

Standout coverage options

Farmers gives fantastic options for your auto insurance coverage including these, which are less common among providers:

  • Towing and roadside service
  • Rental Car Reimbursement
  • Rideshare
  • Loss of Use
  • Guaranteed Value™
  • Customized Equipment
  • Personal Umbrella
  • Glass Deductible Buyback
  • Full Windshield and Glass Coverage
  • Spare Parts Coverage
  • Original Equipment Manufacturer (OEM)
  • New Car Replacement Coverage
  • Accident Forgiveness

Discounts

Farmers lists limited discounts for its auto insurance policies:

  • Older car discount
  • Safe driver
  • Multi-policy
  • High deductible

Customer satisfaction

J.D. Power gives Farmers average rates for customer satisfaction. However, the ratings for financial stability are about two tiers lower than the highest A++ rating that some other providers offer.

Factors that impact Farmers’ rates

Farmers is right on par with the national averages, but you will definitely see higher rates if you have an accident or speeding ticket on your record. If you have poor credit, you could pay up to $2,400 or more.

Average annual rate (full coverage) Compared to national average rate (in dollar amount difference) After one accident After one speeding ticket With poor credit
$1,540-$15$2,129$2,031$2,407

Mobile experience

Farmers has emerged with a newly redesigned app that integrates with Apple Wallet and Siri. You can request roadside assistance and report a claim for help on the go. The app also lets you manage your policy with basic payment processing and a built-in quoting tool. 

Allstate: Best for local agents

Allstate has an enormous network of nationwide agents to provide you with local service. Quotes are also available online for easier access, and the company provides a variety of options for coverage and discounts.

Standout coverage options

Allstate offers some unique types of coverage, including sound system insurance. Here are other unique coverages you can include in your policy:

  • Sound system insurance
  • Roadside coverage
  • Personal umbrella policy
  • Rental reimbursement coverage

Discounts

Allstate’s discounts offer multiple discounts to help you save money on your insurance, including a handful just based on your premium payment:

  • New car
  • Smart student
  • Anti-lock
  • Anti-theft
  • Early Signing Discount
  • Responsible payer discount
  • EZ pay plan discount
  • Allstate eSmart® discount
  • FullPay® discount
  • Safe driving club

Customer satisfaction

Allstate shares the average J.D. Power ranking that most providers receive. However, it earned top ratings from AM Best for reliability and financial stability.

Factors that impact Allstate’s rates

Allstate is notably more expensive than the average insurance policy, costing more $340 over the national average. Rates get a little more costly if you have a speeding ticket, but increase the most if you have an accident or poor credit on your record.

Average annual rate (full coverage) Compared to national average rate (in dollar amount difference) After one accident After one speeding ticket With poor credit
$1,896+$341$2,684 $2,130$2,744

Mobile experience

Allstate covers all its bases when it comes to customer support. You can work with an agent in-person at your local office, call the national line for support. Additionally, you can choose from online or mobile app support — which allows you to file a claim or request roadside assistance.

Erie: Best for young drivers

With accident forgiveness and affordable rate savings programs, Erie is great for those newer drivers who don’t yet have the experience — or the track record — to qualify for more standard insurer requirements.

Standout coverage options

Erie adds a bunch of extras for your vehicle coverage, as well as special coverage for your pets, too:

  • Pet coverage
  • Roadside & Rentals bundle
  • Personal item coverage
  • Auto glass repair
  • Glass Repair or Full Window Glass
  • Locksmith services
  • ERIE Auto Plus®

Discounts

Erie offers unique discounts, some of which are designed specifically to help newer drivers:

  • ERIE Rate Lock®
  • Multi-policy discounts, up to 25%
  • First Accident Forgiveness
  • Diminishing Deductible option
  • Vehicle storage
  • Safety savings
  • Payment perks
  • Youthful Driver Discount, up to 20 percent
  • College credit

Customer satisfaction

J.D. Power gives Erie the standard 3 out of 5 rating for customer satisfaction. However, Erie’s AM Best ratings reflect excellent financial stability and fast and efficient claims processing.

Factors that impact Erie’s rates

Erie is one of the cheapest auto insurers by average rates, coming in at more than $400 less than the national average. Speeding tickets effectively increase this average, as will an accident on record, but you’ll see the highest rate if you have poor credit.

Average annual rate (full coverage) Compared to national average rate (in dollar amount difference)After one accidentAfter one speeding ticket With poor credit
$1,141-$414$1,488$1,270$2,190

Mobile experience

Erie’s mobile experience is somewhat limited; you have the option to work directly with an agent, or you can call the 24/7 hotline for insurance inquiries. However, you do not currently have the option for online claims or mobile app support.

Amica: Best inclusive coverage

Amica is our front-runner for the most inclusive coverage options, in addition to excellent discounts for affordable coverage. It also boasts higher ratings among insurance providers — a standout along with USAA. 

Standout coverage options

Amica gives you tons of flexibility for auto coverage, with less-common options such as roadside assistance and rental support.

  • Roadside Assistance
  • Glass Coverage
  • Rental Reimbursement
  • Rental Car Coverage

Discounts

With Amica’s discounts, you could potentially see a significant amount off your total policy cost, especially for vehicle and driver safety:

  • Loyalty
  • Multi-line, up to 30%
  • Claim-free
  • Multiple auto, up to 25%
  • Legacy (Family)
  • AutoPay
  • E-discount
  • Anti-theft
  • Electronic stability
  • Passive restraint
  • Forward-collision warning
  • Adaptive headlight
  • Defensive driver training
  • Good student

Customer satisfaction

Like USAA, Amica is the only other provider to receive perfect ratings from J.D. Power for customer claims satisfaction — a rare occurrence among insurance providers. You also can depend on efficient claims processing and financial stability, thanks to strong ratings from AM Best.

Factors that impact Amica’s rates

Amica is a bit cheaper than the national average, as long as you don’t have poor credit or an accident on your record.

Average annual rate (full coverage) Compared to national average rate (in dollar amount difference)After one accidentAfter one speeding ticket With poor credit
$1,449-$106$2,202$1,759$2,295

Mobile experience

Amica offers great accessibility with an effective mobile app. It allows you to file claims, pay bills and access ID cards on the go. Roadside assistance can also be accessed from within the app, or online.

Nationwide: Best for drivers with lower credit

Nationwide delivers comprehensive coverage options with built-in discount programs to help save you money. The Vanishing Deductible, rental coverage, roadside assistance and gap coverage are features less common with other providers and unique to Nationwide.

Standout coverage options

Here are a few of Nationwide’s unique options for auto coverage:

  • Towing and labor coverage
  • Rental car expense
  • Gap coverage
  • Accident Forgiveness®
  • Roadside Assistance
  • Vanishing Deductible®, up to $500
  • Total loss deductible waiver

Discounts

Nationwide’s discounts also afford plenty of unique opportunities to save:

  • SmartRide
  • SmartMiles
  • Accident free
  • Good student
  • Defensive driving
  • Anti-theft
  • Safe Driver
  • Easy Pay sign-up
  • Affinity member
  • SmartRide®
  • Paperless
  • On Your Side® Review

Customer satisfaction

Nationwide has average customer satisfaction ratings, on par with most other providers, but AM Best delivers high ratings for financial stability. 

Factors that impact Nationwide’s rates

With Nationwide, you will see rates that are about the same as the national average. These rates will increase with a speeding ticket and poor credit, but an accident will cost you the most. 

Average annual rate (full coverage) Compared to national average rate (in dollar amount difference) After one accident After one speeding ticket With poor credit
$1,533-$22$2,239$1,877$1,916

Mobile experience

Local availability is one of Nationwide’s biggest advantages. Contacting a local agent is recommended for filing a claim, but you can also call the hotline or use the exclusive online customer portal to file claims or receive additional support. 

Travelers: Best for accident coverage

Travelers is a top choice for auto insurance, offering unique coverage options for accident protection. Diverse discounts help mitigate the cost of insurance as well. While it does not have an app at this time, policyholders have online access in the meantime, via the Travelers website.

Standout coverage options

Travelers coverage options cater to accident protection, such as PIP and gap insurance for a loan or lease, among others:

  • Loan/Lease Gap Insurance
  • Rental Coverage
  • Roadside Assistance
  • New Car Replacement
  • Accident Forgiveness
  • Ride Sharing
  • Umbrella Insurance

Discounts

To go with multiple coverage options, Travelers offers a healthy selection of discounts that can significantly reduce your rate:

  • Multi-Policy Discount, up to 13% 
  • MultiCar Discount, up to 8%
  • Home Ownership Discount, up to 5% 
  • Safe Driver Discount, up to 23%
  • Continuous Insurance Discount, up to 15%
  • Hybrid/Electric Vehicle Discount
  • New Car Discount, up to 10% 
  • EFT, Paid in Full and Good Payer Discounts, up to 15% 
  • Early Quote Discount, up to 10%
  • Good Student Discount, 8%
  • Student Away at School Discount, 7% 
  • Driver Training Discount, up to 8% 

Customer satisfaction

Travelers received top marks for its financial stability and claim handling from AM Best. The claim satisfaction rating from J.D. Power for Travelers is in line with industry average.

Factors that impact Travelers’ rates

Coming in at about $200 more than the national average, Travelers isn’t the most competitive rate among providers, but it’s also not the highest average rates. You’ll pay more for having an accident or a ticket on your record, but poor credit has the most impact on rates with Travelers.

Average annual rate (full coverage)Compared to national average rate (in dollar amount difference) After one accident After one speeding ticket With poor credit
$1,769+$214$2,099$2,011$2,308

Mobile experience

Travelers does not yet have an app, but it is reportedly coming soon. In the meantime, the MyTravelers® client portal allows you to self-service your account. Online, you can pay your bill and access cards, as well as file claims and chat live with customer support reps.

How to find the best car insurance for you 

Car insurance is an enormously personal experience, customized specifically to each driver, based on distinct factors. To find the best auto insurance rates for you, these are some things to keep in mind:

  • Check with your state — Each state has a minimum amount of insurance that is required for drivers. It’s important to find out what minimum coverage is required for your state so you can ensure your policy is compliant.
  • Shop multiple vendors — It’s not just the price that can vary between insurance providers; coverage varies significantly as well. Comparison-shopping between providers ensures you get the best rate for the coverage you need.
  • Analyze pricing factors — There are many factors that make up the pricing of your proposal. Give consideration to things like deductibles, exclusions and limits that can all affect your coverage and premium.
  • Understand what you need — Car insurance can be a complex topic to understand, so we created an in-depth auto insurance guide to help you understand what you need out of your policy.

Other car insurance companies to consider

Depending on where you live and what kind of car insurance you need, these popular providers could also be a good fit for you. 

ProviderAverage premiumBest for:
AAA$1,948Top financial ratings
American Family$1,218Affordability
Auto-Owners$1,308Auto-focused provider
MetLife$1,923Excellent coverage
The Hanover$2,492Extra perks
The Hartford$1,572Great for bundling

How we chose the best car insurance companies

To find the best auto insurance companies, we considered many factors that represent an insurance company. Specifically, we researched and analyzed these details:

  • Coverage options
  • Pricing
  • Customer reviews
  • Rankings
  • Support options
  • Opportunities for bundling

We analyze thousands of real customer reviews and look to the experts for guidance. 

J.D. Power has long served as an industry leader when it comes to ranking customer satisfaction and customer service among insurance providers. The Better Business Bureau (BBB) and the National Association of Insurance Commissioners (NAIC) also provide detailed reporting on insurance providers. AM Best is a great provider to learn more about a company’s financial stability through a letter-based rating system.

Methodology

Coverage Utilizes Quadrant Information Services to analyze quoted rates from thousands of zip codes across all 50 states, using the top 15 carriers by premiums written by state. Quoted rates are based around the profiles of a 30 year male and female with a clean driving record, good credit and the following full coverage details:

  • $100k bodily injury liability per person
  • $300k bodily injury liability coverage per crash
  • $100k property damage liability coverage per crash
  • $500 collision coverage deductible
  • $500 comprehensive coverage deductible

Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting 5 days a week and driving 12,000 miles per year.

Full coverage rates were utilized to determine average rates after an at-fault accident, with one speeding ticket and for drivers with poor credit. 

An accident was defined as an at-fault accident with $3k in property damage. A speeding incident was defined as speeding 16-20 MPH over the limit. Poor credit is defined as scores between 524-577, and good credit is defined as scores between 769-794.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only – your own quotes may be different.

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