Best Car Insurance Companies – Car insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.
Car insurance provides coverage for:
- Property – such as damage to or theft of your car
- Liability – your legal responsibility to others for bodily injury or property damage
- Medical – the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses
Basic personal auto insurance is mandated by most U.S. states, and laws vary. Car insurance coverage are priced individually to let you customise coverage amounts to suit your exact needs and budget.
Policies are generally issued for six-month or one-year time frames and are renewable. The insurance company sends a notice when it’s time to renew the policy and pay your premium.
List of the Best Car insurance Companies of 2022
Geico
Geico has very competitive car insurance rates for many types of drivers, which makes it worth a look if you want cheap auto insurance. Its low level of auto insurance complaints are another reason to consider Geico.
Average annual rate for good drivers
$1,182
Average annual rate for drivers with a speeding ticket
$1,579
Complaint level
Low
Nationwide
Nationwide offers decent car insurance rates for some types of drivers and many helpful add-on coverages. The level of complaints against it for auto insurance is very low, making it a company to check out if you’re shopping for auto insurance. Notably, Nationwide offers both a usage-based insurance program and a pay-per-mile option for drivers who want to potentially lower their rates based on actual driving.
Average annual rate for good drivers
$1,540
Average annual rate for drivers with a speeding ticket
$1,970
Complaint level
Very low
Travelers
Travelers has decent rates overall for many types of drivers. The company also has many optional offerings that can give you better insurance protection, making it a good choice to look at when comparison shopping.
Average annual rate for good drivers
$1,435
Average annual rate for drivers with a speeding ticket
$1,828
Complaint level
Very Low
USAA
USAA has pretty affordable rates for motorists with many types of driving records, making it a good company for various driver profiles. Note that you must be a military member, veteran or military family member to be eligible for USAA insurance.
Average annual rate for good drivers
$1,141
Average annual rate for drivers with a speeding ticket
$1,381
Complaint level
OK
State Farm
State Farm’s highly competitive car insurance rates and low complaint level make it worth checking out.
Average annual rate for good drivers
$1,402
Average annual rate for drivers with a speeding ticket
$1,607
Complaint level
Low
Allstate
Allstate offers a superior selection of coverage options, from accident forgiveness to disappearing deductibles. It also has a track record for low auto insurance complaints to state insurance departments, which helps offset rates that are usually higher than its top competitors.
Average annual rate for good drivers
$2,022
Average annual rate for drivers with a speeding ticket
$2,301
Erie Insurance
Erie has good coverage offerings and a top score for its collision repair claims processes. These advantages offset Erie’s car insurance rates, which are a mixed bag depending on your driving record.
Average annual rate for good drivers
$1,419
Average annual rate for drivers with a speeding ticket
$1,600
Complaint level
Higher than the industry average
How Much Is Car Insurance?
Here’s a look at car insurance rates based on averages nationwide among the largest insurance companies.
How Can I Find the Best Price on Car Insurance?
Once you decide how much car insurance you need, it’s time to start shopping for a policy. Rates often vary widely among companies for the exact same coverage, so it’s smart to compare car insurance quotes from multiple insurers. For example, in California, rates for a good driver range from $1,668 to $3,940 a range of about $2,270 for the exact same driver.
If you don’t shop around you won’t know if your rates are on the high end. You can find free quotes online or by working with an auto insurance agent. Independent insurance agents can provide quotes from multiple companies.
Insurance quotes are always free.
What Types of Car Insurance Discounts Should I Look For?
Ask about car insurance discounts when you’re getting car insurance quotes. You can typically knock down your car insurance costs with discounts for:
- By bundling multiple insurance policies from the same company, such as auto and home insurance.
- Insuring more than one vehicle with the same company.
- Qualifying for a good driver discount.
- If you have a student on the policy, getting a discount if they’re a good student
- If you have a college student on the policy, snagging a discount if they’re away at school without a car (usually must be at least 100 miles away).
- Taking a defensive driving class if you are age 55 or older.
- Paying your car insurance bill in full for the term rather than monthly.
What Types of Car Insurance Are Required?
Here are types of car insurance that are generally required by states.
Liability insurance: Required in most states. Car liability insurance pays for injuries and property damage you cause to others. A good rule of thumb is to buy enough liability insurance to cover what can be taken from you in a lawsuit.
Uninsured motorist coverage (UM): Mandatory in some states and optional in others. Uninsured motorists insurance pays for you and your passengers’ medical bills and other expenses if someone crashes into you and they don’t have any liability insurance. A related coverage, underinsured motorist coverage, helps with you and your passengers’ medical bills when a driver with insufficient coverage causes an accident resulting in injuries.
Collision and comprehensive insurance: Required if you have a car loan or lease. These are two separate coverage types often sold together. Collision and comprehensive insurance pay for your vehicle repair bills due to problems such as car accidents, car theft, fires, floods, severe weather, falling objects, vandalism and collisions with animals.
Personal injury protection: Required in some states. Some states use a no-fault car insurance system. In these states you’ll make smaller injury claims on your own auto insurance no matter who was to blame. These claims fall under personal injury protection, which is required in no-fault states and available in some others.
Factors That Impact the Cost of Car Insurance
Your car insurance cost will vary depending on several factors that include:
- Your driving record
- Your age and driving experience
- Where you live
- Coverage selections
- Deductible amount (if you buy collision and comprehensive coverage)
- Vehicle model
- Your car insurance history
