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The best car insurance companies of 2021

Fact-checked with HomeInsurance.com

    Article Highlights

    With so many insurance companies out in the market today, how can you know the best one to choose? In addition to a saturated insurance market, company 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 can be a burden for busy individuals. 

    For this reason, Coverage compiled the best car insurance companies of 2021 (based on key data points) to give our readers a starting place for comparison-shopping.

    We compared top car insurance carrier 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, as well as coverage and discount options, and technology resources for today’s generation of policyholders.. 

    Based on our research, the top picks for best auto insurance providers in 2021 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 rateJ.D. Power claims satisfaction ratingAM BestStandout 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

    If you’re trying to save a bit extra on your insurance premium, USAA offers an extensive list of discounts, with special savings programs for military members. From the more common New Vehicle, Good Student, and Defensive Driving Course discounts to the more unique discounts, policyholders will be able to find something that applies to you.

    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 accidentAfter one speeding ticketWith 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 opportunities to save with its multitude of discounts. From safe driver to safe vehicle and good student discounts, there’s no shortage of savings to go around. 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 accidentAfter one speeding ticketWith 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

    In addition to GEICO’s reputation for affordability, you’ll have plenty of options to earn extra discounts for significant savings on your car insurance policy. GEICO offers discounts that apply to all ZIP codes, and extra discounts specific to your ZIP code, which you can find out more about by entering your ZIP code online.  

    Some of the discounts that GEICO offers include:  

    • 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 accidentAfter one speeding ticketWith 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. These include loyalty-based auto discounts, driver-based auto discounts, discounts for how you quote and buy, and discounts tools for additional savings. In particular, several discounts may be useful to teen drivers or those in college.

    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 accidentAfter one speeding ticketWith 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 gives an extensive list of coverage options, however, the discounts for its auto insurance policies are quite limited. Depending on what state you live in, discounts will vary. A few of the discounts that Farmers offers are: 

    • 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 accidentAfter one speeding ticketWith 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 offers a multitude of discounts to help you save money on your insurance, including a handful just based on how you set up and pay your premium. You can also bundle your auto insurance with home or renters to apply Allstate’s multiple policy discount. 

    Some of Allstate’s featured discounts include:

    • 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 accidentAfter one speeding ticketWith 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

    In addition to Erie’s Rate Lock service, which ensures your rate will stay the same until you change your insurance premium, Erie offers unique discounts which will help you save even more.  Some of the discounts designed specifically to help newer drivers. 

    Erie discounts include:

    • 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 ticketWith 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. Amica offers policy-, vehicle- and driver-specific discounts, making it possible for you to find one or more discounts that will apply to you. 

    Amica’s featured discounts include:

    • 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 ticketWith 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 offers a range of auto insurance discounts, providing plenty of unique opportunities to save. With the multi-policy discount, Nationwide indicates you may be able to save an average of $646 just by bundling your auto and home or renters insurance. 

    Other Nationwide discounts include: 

    • 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 accidentAfter one speeding ticketWith 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 compliment multiple coverage options, Travelers offers a healthy selection of discounts that can significantly reduce your rate. These include home ownership, loyalty, good payer, new car and even hybrid/electric car discounts, among others.

    Traveler’s featured discounts include: 

    • 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 accidentAfter one speeding ticketWith 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.

    The best car insurance company in your state

    Each state has different laws and requirements when it comes to auto insurance. Car insurance premiums also vary depending on the state you reside in. When determining your quote, insurance companies also take into account various factors such as your age, driving history, vehicle make and model, number of claims and credit score (in most states). 

    The best way to find the cheapest insurance company is to research the list of auto insurance companies with the lowest premiums for the coverage you need, then call your local agent to compare.  To make it easier for you, we have compiled a list of the cheapest insurance companies in each state based on the average annual full coverage rate. 

    StateProviderFull coverage rate
    AlabamaGEICO$1,060
    AlaskaUSAA$1,149
    ArizonaTravelers$1,467
    ArkansasFarmers$1,380
    CaliforniaMercury$1,546
    ColoradoGEICO$1,079
    ConnecticutGEICO$1,129
    DelawareUSAA$1,167
    District of ColumbiaErie$1,886
    FloridaState Farm$2,179
    GeorgiaAuto Owners$1,385
    HawaiiUSAA$1,061
    IdahoUSAA$786
    IllinoisAmerican Family$1,141
    IndianaErie$880
    IowaGEICO$806
    KansasUSAA$1,234
    KentuckyUSAA$1,502
    LouisianaGEICO$1,824
    MaineGEICO$529
    MarylandErie$1,760
    MassachusettsGEICO$1,179
    MichiganPioneer State$2,005
    MinnesotaAmerican Family$1,243
    MississippiUSAA$1,255
    MissouriUSAA$1,315
    MontanaUSAA$987
    NebraskaNationwide$1,111
    NevadaGEICO$1,142
    New HampshireUSAA$737
    New JerseyProgressive$1,220
    New MexicoCentral$1,400
    New YorkAllstate$1,997
    North CarolinaState Farm$1,295
    North DakotaUSAA$754
    OhioAuto Owners$832
    OklahomaGEICO$1,049
    OregonGEICO$1,079
    PennsylvaniaUSAA$855
    Rhode IslandTravelers$1,481
    South CarolinaAuto-owners$1,392
    South DakotaUSAA$1,064
    TennesseeGrange$920
    TexasGEICO$1,393
    UtahGEICO$847
    VermontUSAA$785
    VirginiaProgressive$911
    WashingtonPEMCO$1,080
    West VirginiaErie$1,112
    WisconsinGEICO$676
    WyomingState Farm$1,140

    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 different 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. 

    States also vary in terms of average insurance premiums. For example, although GEICO offers the cheapest full coverage rates in Alabama, that may not be the case in other states. 

    To find the best rate in your area, call a local agent to discuss what your expected premium would be, and what discount options are available as well. Because some providers offer state-specific discounts, using an online quote tool that is based on your ZIP code can be helpful to understand your options.

    Shop multiple vendors 

    Each car insurance company is unique in its offerings. 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. 

    Researching various vendors and getting quotes based on your location to compare will help you find the best insurance premium for the coverage you need. You can use this guide to create a list of your top insurance companies to target.

    Analyze pricing factors 

    Many factors affect your premium, and are highly specific to each driver. Your age, driving history, vehicle make and model, gender, credit score, occupation, ZIP code and marital status can significantly impact what you’ll pay for insurance. You will also have to 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 with all of the elements involved. Refer to our in-depth auto insurance guide to better understand what you need out of your policy and what coverages are right for you.

    The biggest factors you’ll need to understand prior to selecting a provider are your state requirements, your personal details, the cheapest insurance companies in your area, and potential discounts offered; all of which are discussed further in our guide.

    Alternatives to car insurance

    What happens if you can’t afford car insurance right now or you feel that car insurance doesn’t fit in with your current needs? The good news is that some states offer alternatives to buying auto insurance. You can make a deposit with the state or become “self-insured.” 

    Certain states have “financial responsibility” laws, which means that in the event of an at-fault accident, you have a way to compensate others aside from traditional car insurance. Alternatives to car insurance include either placing a deposit or bond with the state and “self-insuring.” Self-insuring is usually for rental companies or if you own more than 25 vehicles. 

    Most people aren’t aware of the alternatives to car insurance. However, if you have the means to compensate out-of-pocket for any fines against you from your vehicles, then this is something to consider if you live in states that offer this option. To become self-insured, you’ll need to check with your state DMV if it’s possible in your state and how to obtain the certificate. 

    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 and the District of Columbia, using the top 15 carriers by premiums written by state. Quoted rates are based around the profiles of a 30-year-old male and female with clean driving records, 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.

    FAQs

    What factors should I consider when searching for a car insurance company?

    The primary considerations when you are searching for the best car insurance company are your state laws, minimum requirements, the average cost of insurance in your state and the best insurance companies in your state. 

    How can I get a better premium?

    To get the best premium, determine what your coverage needs are, see if any discounts apply to you, and compare rates with multiple providers.

    Are there alternatives to car insurance?

    Most people aren’t aware of the alternatives to car insurance. However, if you have the means to compensate out-of-pocket for any fines against you from your vehicles, then paying a bond to your state or becoming self-insured are options to consider. To become self-insured, you’ll need to check with your local DMV to determine if this is a legal option in your state, and how to get the required self-insured certificate.

    How can I find the best car insurance for me?

    The best way to find the best car insurance for you is to check with your state, shop multiple vendors, analyze pricing factors, and determine what aspects of insurance are most important to you. If you find yourself stuck with a provider you don’t like, you can also switch providers any time, depending on their policies, or once your policy is up for renewal.

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