The Best Car Insurance Companies in 2023

You probably heard the company’s slogan, “15 minutes could save you 15% or more on car insurance.” Based on our research, this claim is true in almost every US state, meaning GEICO really does offer cheap car insurance quotes.

It’s the company’s market strategy that enables GEICO to offer such competitive prices. Instead of contracting a vast network of agents, GEICO sells its products primarily online and employs agents only when necessary.

Given GEICO’s business model, it’s not surprising that its online tools are as good as it gets. The company’s website is intuitive, and the quote tool will help you find the right coverage in no time. Furthermore, GEICO’s mobile app is neatly organized and highly rated on Google Play and in the App Store.

Besides some of the best car insurance rates and online tools available, GEICO can be also proud of its financial strength. The company’s A. M. Best rating is “A++,” the highest possible. Furthermore, GEICO is one of the principal subsidiaries of Berkshire Hathaway, which took fourth place in the 2019 US Fortune 500 list.

On top of that, GEICO offers a variety of discounts (15 total) and some exciting optional coverages. However, there’s one notable exception: GEICO does not provide GAP insurance.

Additionally, like every big car insurance company, GEICO scores only average in the customer service department. The company gets three stars in J.D. Power’s studies in both shopping and claims handling satisfaction. However, GEICO does rank a bit higher in this department than Progressive, which is its main competitor.

Overall, we like what GEICO has to offer, and we would put it near the top of our shortlist.

If you want the absolute best prices, Progressive should be your top pick. Based on our car insurance comparison, it was the cheapest option in almost every state. Regional insurers or Erie or GEICO only occasionally beat it.

Additionally, Progressive specializes in high-risk drivers, meaning it won’t overcharge that demographic the way so many companies do.

However, you’ll have to make a small compromise if you opt for Progressive. Its customer service ratings in J.D. Power’s claims and shopping satisfaction studies are three out of five stars.

Progressive’s NAIC ratio inspires slightly more confidence. It’s 0.75, which means that the company receives 25% fewer complaints compared to an average company of its size. However, if superior customer service is your cup of tea, there are better car insurance companies out there.

Progressive’s A. M. Best rating is also a strong “A+.” This indicates that there are no reasons for concern that the company will look for loopholes when the time to pay a claim comes.

Perhaps the most significant advantage of Progressive, besides its dirt-cheap policies, is that it brings all the bells and whistles of a major insurer. This includes a top-notch website and mobile app, plus a variety of discounts and optional coverages. Progressive’s website even offers a convenient Name Your Price® tool. You just list how much you’d like to pay, and the program will compose a policy for you.

When looking for the best auto insurance, keep in mind that no insurer is perfect. While Progressive may not be the champion of customer service, its low rates provide a mighty compensation.

USAA has it all. Affordable policies, outstanding customer service, a variety of discounts and optional coverages, polished online tools, and even the highest possible financial strength. On top of that, the company offers financial services, and it’s available nationwide.

So you might be wondering why it’s not the best auto insurance company on our list. The answer lies in its availability.  Only former and current US military members and their close families have access to USAA’s products. However, if you qualify, USAA should be near the top of your shortlist.

State Farm is the biggest insurer in the US by market share, but are its products as good as they are popular? The answer is mostly yes.

To start with the company’s website, it’s as polished and neatly organized as they come. You can use it for all the basics, like getting a quote or exploring discounts and optional coverages. You can even rely on State Farm to deliver banking and investment services. Combining all services under one roof can reduce the overall price substantially.

Speaking of prices, we should say that, if you’re looking for the best car insurance rates, State Farm is probably not for you. The company was usually among the more expensive options in our research. However, that’s mitigated by a significant number of discounts, usually about 14, but the actual number depends on the state.

Additionally, State Farm’s financial strength is the highest possible — its A. M. Best rating is “A++” or “Superior.” You can even count on State Farm to deliver some less common features, like coverage for classic cars.

When it comes to insurance company ratings in customer service, State Farm usually gets average results. For instance, in J.D. Power’s rankings, it scores three stars in shopping and claims handling satisfaction. Nonetheless, this plagues all large insurance companies.

Overall, State Farm may not be the best, but with its wide range of products, it’ll appeal to many.

If you’re a customer who prefers to pay bills and manage your insurance policy from the convenience of your home, Liberty Mutual demands your attention. While most companies offer online car insurance tools, Liberty Mutual’s are among the slickest around.

On top of that, the company offers multiple discounts and some optional coverages, including rare finds such as better car replacement.

Liberty Mutual also has stable financial operations, which its A. M. Best rating of “A,” or “Excellent,” confirms.

However, the company typically gets lower than average customer service scores. Furthermore, if you’re looking for a cheap car insurance quote, you’ll be better off with a company like GEICO, Erie, or Farmers.

That’s why we would advise even tech-savvy customers to check a few more insurers before settling with Liberty Mutual.

Are you looking for an insurer that really stands out from the competition? Then Allstate might be the one for you. Its Claim Satisfaction Guarantee warrants that you’ll get fully reimbursed if you’re unsatisfied with how your claim was handled. And the best news is that this feature comes free with each Allstate policy.

Besides this outstanding feature, there are other reasons to consider Allstate. To begin with, it’s among the top auto insurance companies in the US in terms of market share. This means that Allstate’s website and mobile app are excellent, as well as the company’s financial strength (an “A+” A. M. Best rating)

Furthermore, Allstate offers a decent number of discounts, optional coverages, and some intriguing awards for safe drivers. Finally, you can count on the company’s vast network of agents to help you find the perfect coverage.

However, besides these clear advantages, Allstate falters where it matters the most. The company receives mediocre customer service ratings, and its prices are above average.

Nonetheless, the Claim Satisfaction Guarantee somewhat compensates for the weaker customer satisfaction scores, and that’s why we still consider Allstate a good car insurance option. And if you’re a younger customer, check Esurance, Allstate’s daughter company. It offers terrific online tools.

Unlike the previous three companies, Ameriprise is not a clear-cut leader in customer service. Its NAIC ratio is 1.32, which is considerably higher than the average for a company of its size. Nonetheless, Ameriprise achieved outstanding results in J.D. Power’s regional rankings in California, where it writes the majority of its policies.

Since we trust J.D. Power’s rankings, we decided to place Ameriprise among the top car insurance companies in customer service.

When it comes to prices, Ameriprise ranks among the more affordable insurers, though it isn’t as cheap as the top dogs, Progressive and GEICO.

The company also offers a decent number of discounts and optional coverages and some unique benefits. For example, if you buy its insurance through Costco, you’ll become eligible for additional rebates and perks, such as free roadside assistance.

You can add Ameriprise’s financial strength to the list of its advantages. The Ameriprise’s A. M. Best rating is “A+,” or “Excellent.” While not as good as GEICO, State Farm, or Auto-Owners, the regular customer has no reason for concern.

The only notable downside of Ameriprise is that it offers its products in only 32 states. However, if it’s available in your region, we would advise checking Ameriprise when you compare car insurance quotes.

While not the outright champion in customer service, Farmers still belongs in the upper echelon. The company scored well in J.D. Power’s 2019 claims satisfaction and shopping studies. Furthermore, its NAIC ratio is 0.75, indicating that the company gets 25% fewer complaints than average.

Sprinkle that excellent result with generally affordable car insurance, and you’ve got a company that’ll appeal to many customers.

Additionally, Farmers offers a solid number of discounts and optional coverages, not to mention its excellent Farmers Rewards Visa program. If you buy Farmers’ products using this card, you’ll earn points that you can later redeem for gift cards, travel vouchers, or selected merchandise.

Finally, Famers scores well in the financial strength department too. The company’s A. M. Best rating is “A,” or “Excellent,” the third-best possible. Add in its jocular commercials with J.K. Simmons and the Sesame Street characters, and we would surely agree that Farmers is worth checking out.

Travelers is another insurer that’ll appeal to many customers. For starters, while not in the league of Progressive and GEICO, its car insurance prices are still below average.

Additionally, the company offers the leading benefits for new car owners. Its Premier New Car replacement guarantees that your vehicle will be replaced with a new one that’s the same make and model if it gets totaled in the first five years of ownership. The majority of the competition provides this coverage for only one to three years.

Furthermore, Travelers offers a 10% discount to new car owners, on top of its already affordable rates. And if your new car is electric or a hybrid, you can save even more.

Even if you didn’t purchase a vehicle recently, the company’s 17 total discounts will help you obtain cheap car insurance. Travelers also have a vast network of highly skilled agents who will help you get the most out of your policy. Nonetheless, we should note that the company doesn’t offer as many optional coverages as some competitors.

Furthermore, its customer service scores are average, but such is the case for any affordable insurer besides Erie and Amica.

Finally, Travelers’ A. M. Best rating is “A++,” the highest rating possible. This puts it in the same bracket as major players like GEICO and State Farm in terms of financial strength.

Overall, Travelers is a terrific choice for new car owners, and it’s a quote-worthy company for all other customers.

Mercury completes our list of companies with the best auto insurance rates. However, unlike previous entries on this list, we cannot fully recommend this insurer.

That’s because its customer service is substandard. Mercury received only two stars in J.D. Power’s claims processing satisfaction survey on a national level, coming second from the bottom. On top of that, Mercury ranked below average in the California region, where the company writes most of its policies. While these results are improvement compared to 2018, Mercury is still far behind the competition in this department.

There are some additional, albeit minor, drawbacks of selecting Mercury. To begin with, the company doesn’t offer as many optional coverages and discounts as the best insurance companies. Additionally, if you want to bundle policies, Mercury’s homeowner’s packages can be on the expensive side. 

However, it’s not all so bleak for this Californian insurer. Mercury’s A. M. Best rating is “A+,” the second-best result.

Furthermore, the company provides Mercury Mechanical Protection, which can come in quite handy. It’s essentially an extended warranty for new vehicle owners. And it’s much cheaper than what most manufacturers offer.

Nonetheless, we recommend waiting for Mercury to improve its customer service ratings. Cheap? Yes. Cheerful? Not quite.

The AAA Auto Club was founded in 1902, and it’s one of the oldest insurance providers in the US. AAA has many entities that operate separately in different states while maintaining a close collaboration.

To buy AAA’s insurance, you need a club membership, but an online quote is available without it. The benefits of its membership alone put AAA among some notably good car insurance companies. These include free roadside assistance, discounts at many restaurants and hotels, and travel discounts, among others. Various membership plans are available, with prices starting at $56 a year.

When it comes to prices, AAA ranks as slightly more affordable than average. It’s a similar story with AAA’s customer service. It scored three out of five stars in J.D. Power’s claims and shopping satisfaction studies. However, its NAIC ratio is only 0.55. That’s far better than the average company of its size and superior to many prominent US insurers (the lower the score, the better)

You can add an intuitive website and mobile app to the list of AAA’s benefits. You can use them to get free car insurance quotes, download proof of insurance, or make a payment.

Nonetheless, AAA has a few downsides. The financial strength and optional coverages vary depending on the exact location of the club. Furthermore, if you want to bundle insurance policies, you should know that AAA’s homeowners’ policies tend to be expensive.

This makes AAA a mixed bag. Nevertheless, if you like the benefits that a AAA membership offers, it’s definitely worth a shot.

Nationwide is among the auto insurance companies that offer an impressive number of discounts. The total number is 17, but the exact amount varies by state. Overall, only Amica and American Family offer one discount more.

Perhaps the most interesting are Nationwide’s family discounts. If multiple family members are covered with Nationwide, they’ll all share the discounts. This is an excellent way to lower the premium for young and inexperienced drivers.

Besides significant premium reductions, Nationwide has a few other aces up its sleeve. For starters, the company’s online tools are slick and user-friendly. Additionally, Nationwide offers excellent options for safe drivers and new car owners. Finally, Nationwide’s A. M. Best rating is “A+,” the second-highest possible. This confirms Nationwide has a firm ability to cover your claims expenses.

However, while the company offers various discounts, the cheapest auto insurance won’t be found here. Based on our quote comparisons, Nationwide’s policies are priced slightly above the average.

Furthermore, Nationwide scored a mediocre three out of five stars in J.D. Power’s claims handling satisfaction. The company performed even worse in a similar shopping satisfaction ranking, where it took last place with only two stars.

That’s why we won’t give a universal recommendation to Nationwide, but if you can profit significantly from its discounts, it’s worth a shot.