Best Car Insurance Companies

State Farm is our pick for best overall car insurance company

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If you’re shopping for car insurance, there is no shortage of insurers available. While there are many different auto insurance providers, not all companies will offer the coverage you need at a price you can afford. With so many options, it is important to find one that aligns with your budget and your coverage needs. 

To help you narrow down your choices, we’ve evaluated several top insurance providers. Based on our in-depth, expert analysis, these are the best car insurance companies for 2022.

Best Car Insurance Companies of October 2022

Best Overall : State Farm

Investopedia's Rating
4.7

State Farm

 State Farm

  • Price: $2,089 per year
  • Purchasing Options: Local agent, phone, online 
  • Available Discounts: 13
Why We Chose It

State Farm is our overall best pick because it offers affordable and comprehensive nationwide coverage. This provider also has strong customer satisfaction and financial ratings.

Pros and Cons
Pros
  • Huge local agent network

  • Financially strong

Cons
  • Not available in Massachusetts or Rhode Island

  • Does not offer gap insurance coverage

Overview

State Farm is our top choice for the best overall car insurance company due to its wide availability, array of coverage options, generous discounts, and financial strength. State Farm policies are available in 48 states and the District of Columbia, and it offers a wide range of products, including car, motorcycle, boat, ATV, and RV insurance. Twenty-four-hour roadside assistance is also available.

State Farm offers the following types of auto insurance coverage:

  • Collision coverage
  • Comprehensive coverage
  • Liability coverage
  • Car rental and travel expenses coverage
  • Uninsured motor vehicle coverage
  • Medical payments coverage
  • Emergency roadside assistance
  • Rideshare driver coverage

Over a dozen discounts are available to State Farm policyholders. Drivers who switch to State Farm can save $1,127 on average when they bundle home and auto policies. State Farm also offers a Drive Safe & Save program, allowing policyholders to save up to 30% on premiums for driving safely. And through its Steer Clear program, you can save up to 15% off your policy if you’re under 25 years old and do not have any at-fault accidents or moving violations. 

If you’re interested in comparing policies from different insurers, State Farm offers online car insurance quotes, but you can also work directly with one of its 19,000 local agents to get a quote. Once you’ve found a policy that meets your needs, you can work with a State Farm agent to get coverage. The mobile app will help from there, allowing you to file and track claims as well as make payments.

State Farm is highly rated for financial strength by AM Best and customer satisfaction by J.D. Power. It also received fewer-than-average customer complaints about its passenger vehicle coverage, according to the National Association of Insurance Commissioners (NAIC). 

Read our full State Farm auto insurance review.

Best Cheap Car Insurance and Best for Drivers Under 25 : Erie

Investopedia's Rating
4.2

Erie Insurance

 Erie Insurance

  • Price: $1,621 per year
  • Purchasing Options: Online, phone, local agent
  • Available Discounts: 8
Why We Chose It

When you want affordable car insurance, Erie offers low rates, even to younger drivers under age 25.

Pros and Cons
Pros
  • Easy-to-navigate website

  • Extended insurance coverage

  • Several options for customer support

Cons
  • Does not allow online claims

  • Restricted service area

Overview

Erie is our top choice for cheap coverage and for drivers under 25 due to its relatively low premiums and multiple discounts for young drivers. It’s an established insurance company with over 20 field offices and more than 13,000 independent agents. However, its service area is limited; coverage is only available in Washington, D.C., and 12 states, including Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin.

Erie offers several types of car insurance:

  • Comprehensive
  • Collision
  • Bodily injury liability
  • Property damage liability
  • Uninsured or underinsured motorist coverage
  • Roadside assistance
  • Rental car expense coverage
  • New car protection
  • Motorcycle insurance
  • Pet insurance
  • Rideshare insurance

Policyholders can also add Erie Rate Lock and Erie Auto Plus, which provide exclusive perks like a waived or diminishing deductible, transportation expense reimbursement, and increased policy limits. 

To help policyholders save, Erie offers eight car insurance discounts, including multi-policy discounts and discounts for payments made in full upfront. It’s easy for young drivers to save with Erie, as it offers special discounts if you’re unmarried and live with your parents, if you have parents that are Erie customers, or when you complete an approved driver training course. 

While Erie does not have online chat or a suite of mobile tools, it offers 24/7 customer service available to help at any time, plus convenient online payments and claims filing. Quotes can be started online and finalized by one of the more than 13,000 agents available. 

Erie is among the top insurers for customer satisfaction on J.D. Power’s annual U.S. Auto Insurance Study, and it has a high AM Best rating, indicating financial stability. Erie has also received a lower-than-average amount of customer complaints, according to NAIC data.

Read our full Erie auto insurance review.

Best for Drivers with a DUI : Sentry

Investopedia's Rating
2.3

Sentry

Sentry

  • Price: $4,392 per year
  • Purchasing Options: Local agent
  • Available Discounts: 6
Why We Chose It

If you are a driver with a DUI or another serious offense on your record, Sentry can be an excellent choice, thanks to a largely forgiving acceptance policy.

Pros and Cons
Pros
  • 24/7 customer service

  • Financially sound

Cons
  • No online quotes

  • Limited number of discounts

  • High premiums

Overview

Sentry is our top pick for insurers offering coverage for drivers with a DUI. Founded in 1904 by members of the Wisconsin Retail Hardware Association, Sentry is an established insurance company that also specializes in business auto insurance for companies.

Personal auto insurance is handled via its partner arm, Dairyland Insurance. Dairyland offers both standard and specialty coverage for cars and motorcycles. And for drivers who require proof of insurance but have a DUI on their record, SR-22 insurance is available.

Dairyland offers multiple discounts to eligible policyholders. Several popular discounts include options like savings when you purchase an advance quote or make frequent payments. There are also discounts if you insure multiple vehicles, own your own home, or successfully complete a defensive driving course.

For added convenience, you can start the quote process online or contact an agent. You can also use online tools to make payments or pay your bill each month. Support is available 24/7 for existing customers.

Sentry’s low loss ratio and high AM Best score signal strong financial stability. However, it is not rated by J.D. Power, and it logs an average number of customer complaints, according to NAIC data.  

Read our full Sentry auto insurance review.

Best for High-Risk Drivers : New Jersey Manufacturers Group

Investopedia's Rating
4.5

New Jersey Manufacturers Insurance

New Jersey Manufacturers Insurance

  • Price: $1,694 per year
  • Purchasing Options: Phone, local agent
  • Available Discounts: 12
Why We Chose It

New Jersey Manufacturers (NJM) Group may not be as well-known, but it can be a great choice for high-risk drivers. It offers gap insurance, new car replacement coverage, and multiple discounts to help you save. 

Pros and Cons
Pros
  • Excellent customer satisfaction

  • Online quotes available

  • Strong financial ratings

Cons
  • Only available in five states

  • Must call to purchase car insurance policies

Overview

Established in 1913, NJM has made a name for itself by supporting safe driving. The East Coast-based company is available in just five states, including Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania, so if you live on the West Coast, you are out of luck.  

New Jersey Manufacturers Group offers several types of car insurance coverage:

  • Liability coverage
  • Medical expenses
  • Underinsured and uninsured motorist coverage
  • Collision
  • Comprehensive
  • Classic and collector car
  • Motorcycle and ATV
  • Boat and personal watercraft

NJM can help high-risk drivers with several types of car insurance coverage. For those with a new car, you can take advantage of NJM’s gap insurance which can cover the balance between what you owe and the total cost of damages. This insurer also offers new car replacement coverage if you total your car. 

There are also 12 total insurance discounts to help you save money, including safe driver, electronic payment, good student, and full coverage discounts. If you bundle your home and auto insurance with NJM, you could also receive extra savings. However, if you opt to take advantage of roadside assistance, it will cost you an additional fee every time you need to use the service. 

You can easily get a quote from NJM online without having to contact an agent, but you will need to call or work with an agent in order to purchase a policy. After your policy is active, you can log in to make payments and adjust your profile.

NJM has the distinction of holding the highest score for customer satisfaction by J.D. Power in the Mid-Atlantic area with very few complaints logged by the NAIC. It also receives strong financial scores, making it a company rated for all-around exceptional service.

Read our full NJM auto insurance review.

Best for Multiple Vehicles and Best for Bundling with Home or Other Policies : Progressive

Investopedia's Rating
4.3

Progressive
  • Price: $2,430 per year
  • Purchasing Options: Online, phone
  • Available Discounts: 13
Why We Chose It

Progressive offers opportunities to save on your premiums if you bundle coverage. Whether you are insuring multiple cars or your home and vehicle, there is a discount for having multiple policies.

Pros and Cons
Pros
  • 24/7 customer support

  • Few customer complaints

  • Multiple insurance discounts

Cons
  • Additional coverage can be pricey

  • May have higher premiums

Overview

With a wide array of coverage and several discounts, Progressive can help you save money when insuring multiple vehicles or policies. It has been a leading insurer since its creation in 1937, and it insures drivers in all 50 states and Washington, D.C.

Progressive offers several types of car insurance:

  • Liability coverage
  • Comprehensive 
  • Collision
  • Uninsured and underinsured motorist coverage
  • Roadside assistance
  • Medical payments
  • Gap coverage
  • Rental car reimbursement
  • Custom parts and equipment value insurance
  • Rideshare coverage

To help policyholders save money, Progressive offers a total of 13 auto insurance discounts, such as continuous insurance, teen driver, and student discounts. If you are a homeowner, you could save on your car insurance policy even if your home is not insured by Progressive. 

Progressive also offers its Snapshot Program, which allows you to pay for insurance based on how much you drive, so you don’t buy more coverage than you need. You simply drive as usual and then receive a customized rate the following year based on your personal driving habits. You can even use the Name Your Price tool to customize your auto insurance coverage based on your budget. 

Progressive delivers strong customer satisfaction based on high scores from J.D. Power and the National Association of Insurance Commissioners. It is also financially strong based on its loss ratio and top scores from AM Best. 

Read our full Progressive auto insurance review

Best for Military Families : USAA

Investopedia's Rating
4.5

USAA

 USAA

  • Price: $1,471 per year
  • Purchasing Options: Online, phone, agent
  • Available Discounts: 12
Why We Chose It

United States Automobile Association (USAA) offers car insurance coverage for military members and their qualifying family members. Eligible policyholders can take advantage of a dozen special discounts.

Pros and Cons
Pros
  • Exceptional customer support

  • Military-specific resources

  • Wide array of financial services

Cons
  • Only services military families

  • Several customer complaints

  • Must be a member to get insurance coverage

Overview

United States Automobile Association (USAA) is an established insurer founded in 1922, and it’s our top pick for military members. Its car insurance policies are available in all 50 states. Unlike the others on our list, USAA is a car insurance company that only services members of the armed forces and their families. To join USAA  and get coverage, you must either be an active or retired member of the military or a qualifying family member. 

USAA offers these types of coverage:

  • Comprehensive
  • Collision
  • Liability
  • Uninsured and underinsured
  • Roadside assistance
  • Rental reimbursement
  • Rideshare insurance

Gap coverage is another form of coverage that is available on an optional basis. If you are leasing a vehicle, gap coverage can cover the balance between what you owe and the total value of the car. 

In addition to several coverage options, there are 12 car insurance discounts available. USAA offers discounts for safe driving, good students, low mileage, and successfully completing a defensive driving course. However, there are also military-specific discounts unique to this provider, including extra savings when you store your car on a military base, legacy discounts for those families with multiple policies, and generous vehicle storage discounts.  

USAA offers convenient online quotes, and you also have the option to call or contact an agent for help getting a policy. Online tools are also excellent with available online chat, claims processing, and payment processing.

USAA consistently receives high customer satisfaction ratings from J.D. Power. It also has a high AM Best rating, which indicates financial strength, and it’s received a lower-than-average number of customer complaints based on NAIC data. 

Read our full USAA auto insurance review.

Best for Discounts : Allstate

Investopedia's Rating
4.1

Allstate

Allstate

  • Price: $2,641
  • Purchasing Options: Online, phone, local agent
  • Available Discounts: 14
Why We Chose It

Allstate offers 14 discounts for policyholders, which is a large number compared to what many of its competitors offer. 

Pros and Cons
Pros
  • Unique coverage options

  • Varied roadside support

  • Wide array of discounts

Cons
  • Customer satisfaction lacking

  • 6-month terms

  • Roadside assistance costs extra

Overview

With 14 different discounts, Allstate is our pick for the best discounts for car insurance in 2022. This insurer has been around since 1931, and it provides car insurance coverage in all 50 states and Washington, D.C.

Allstate offers several types of insurance coverage:

  • Collision
  • Comprehensive
  • Liability
  • Medical payments
  • Uninsured and underinsured motorist
  • Personal injury protection
  • Custom equipment
  • Personal umbrella 
  • Rental reimbursement
  • Classic car insurance
  • Mexico car insurance
  • Gap insurance

You will have to pay more to add roadside assistance to your policy, but there are two types that you can choose from—either basic protection for local driving or a higher level of coverage. 

To save money, you have the option of choosing a six-month term instead of the traditional annual policy. Allstate has its signature Drivewise Program that can save drivers up to 40% off their normal premiums with safe driving through telematics-based usage. You can also save money when you have a new car, receive good grades in school, or maintain multiple policies with Allstate. Your vehicle can also save you money with anti-lock and anti-theft discounts, plus there are several payment-related discounts when you renew your policy early, pay in advance, or enroll in paperless statements. 

Allstate was not ranked among the top insurers for customer satisfaction in J.D. Power’s recent U.S. Auto Insurance Study. However, it does score well with AM Best, which signals strong financial stability, and NAIC data shows a lower-than-average number of customer complaints. 

Read our full Allstate auto insurance review.

Best for Safe Drivers : Auto-Owners

Investopedia's Rating
4.3

Auto Owners

Auto Owners

  • Price: $1,785 per year
  • Purchasing Options: Local agent
  • Available Discounts: 13
Why We Chose It

Auto-Owners offers multiple safe-driving discounts to help lower the cost of those insurance premiums. 

Pros and Cons
Pros
  • Excellent financial strength

  • Exclusive savings programs

  • Several discounts

Cons
  • No online quotes

  • Restricted service area

  • Limited support options

Overview

If you are a safe driver, Auto-Owners has multiple discounts to help you save money, including exclusive programs like its telematics-based discount. This provider was established in 1916, and it only offers coverage in 26 states. Still, if you live within its service area, it offers insurance for a variety of different vehicles, such as motorcycle, RV, boat, trailer, and ATV insurance. You can also bundle your homeowners, life, flood, and pet insurance from Auto-Owners.

Several types of car insurance are available:

  • Collision
  • Comprehensive
  • Liability
  • Uninsured and underinsured motorist
  • Medical payments
  • Personal injury protection
  • Additional expenses
  • Rental car coverage
  • Purchase Price Guarantee
  • Gap coverage
  • Diminished value

Auto-Owners offers 13 discounts to lower the cost of your car insurance, including green discounts, student discounts, safety feature discounts, and savings for enrolling in a telematics-based driving program. It also provides a Personal Price Guarantee and a Personal Automobile Plus Package, which bundles several of Auto-Owners’ top services into one convenient and affordable package. 

Auto-Owners has received AM Best’s highest financial rating for nearly 50 years in a row, but its customer service leaves some room for improvement with no online chat support option to help in a pinch. You also must work with an agent to receive a quote and purchase a policy.

Read our full Auto-Owners auto insurance review.

Final Verdict

Many auto insurance companies out there may offer the coverage you need. However, they may not offer the cheapest price or the best coverage, which is why it is important to shop and compare your options. 

Based on our expert analysis, we chose State Farm as the overall best car insurance company for 2022. However, if you are looking for something in particular for your auto insurance, there are several other great options to consider.

Compare the Best Car Insurance Companies

 Company Price Purchasing Options Available Discounts Other Available Coverage
State Farm
Best Overall
$2,089 Local agent, phone, online 13 Home, renters, life, health, pet, disability, liability, small business
Erie Insurance
Best Cheap Car Insurance and Best for Drivers Under 25
$1,621 Online, phone, local agent 8 Motorcycle, RV, marine, renters, flood, personal valuables, life, umbrella, business, identity theft
Sentry
Best with a DUI
$4,392 Local agent 6 Commercial auto insurance, dealership auto coverage, motor carrier coverage, physical damage insurance, non-trucking liability insurance
New Jersey Manufacturers (NJM) Group
Best for High-Risk Drivers
$1,694 Phone, local agent 12 Liability, comprehensive, collision, underinsured/uninsured, medical expenses, classic and collector car, motorcycle and ATV, boat and personal watercraft
Progressive
Best for Multiple Vehicles and Best for Bundling with Home and Other Policies
$2,430 Online, phone 13 AT/RV, marine, classic car, golf cart, flood, homeowners, mobile home, renters, travel, umbrella, pet, wedding, personal
USAA
Best for Military Families
$1,471 Online, phone, agent 12 Motorcycle, ATV/RV, classic car, marine, aviation, renters, landlord, umbrella, flood, farm, mobile phone, life, health, business
Allstate
Best for Discounts
$2,641 Online, phone, local agent 16 Homeowners, renters, motorcycle, marine, classic car, RV/ATV, business, life, pet, identity theft, tuition
Auto-Owners
Best for Safe Drivers
$1,785 Local agent 13 Bodily injury liability, collision, comprehensive, property damage liability, medical payments, uninsured/underinsured motorist coverage

Guide for Choosing the Best Car Insurance Companies

Should You Purchase Car Insurance?

Car insurance can help protect you if you are in a collision with another vehicle or object. Any damages your vehicle sustains will be your responsibility unless you have insurance to cover your losses. Certain types of auto insurance can also cover legal fees and medical bills for yourself, your passengers, and the other vehicle’s passengers. 

Most U.S. states require that drivers meet minimum car insurance requirements in order to legally operate a vehicle. 

How to Compare Car Insurance Companies

It’s important to consider several factors to find the best auto insurance for your needs.

  • Pricing: If you have a specific budget in mind for car insurance, compare quotes from multiple providers so you can find coverage that aligns with your budget.  
  • Discounts: Many auto insurance companies offer several ways to save, such as discounts for safe drivers, college students, or military members. 
  • Coverage types: Most insurance companies cover the basic comprehensive and collision coverage, but there are also other, specialized coverages that may not be so commonly found, such as electric or classic car insurance.
  • Policy limit: Each type of coverage comes with a maximum limit that shows exactly how much of your losses will be covered by your insurance company. Some companies may offer more coverage than others, which becomes important when you drive a luxury or classic car.
  • Company ratings: Certain industry ratings can help determine what kind of experience you’ll have with an insurer. Consider ratings like J.D. Power for customer satisfaction and AM Best for financial stability. 
  • Availability: Before you buy a policy, you need to be sure that the insurance company you choose will actually service your area. Some companies like Sentry are only available in a handful of states.  

Selecting a Car Insurance Company

Investopedia offers a convenient online shopping tool for car insurance that allows you to easily compare coverage and pricing from multiple car insurance providers. Once you select the right car insurance company for you, you can move forward with an official quote from the provider. These are often available either online, by phone, or directly through an insurance agent. After purchasing a policy, you can typically manage your account and pay your premiums online or by working directly with your insurance agent. 

Frequently Asked Questions

How Does Car Insurance Work?

An auto insurance policy protects you against personal and financial liability if you’re involved in a car accident. It can also protect from natural types of damages, such as losses due to a flood or fire.

What Does Car Insurance Cover?

Car insurance covers damage to your vehicle, as well as other vehicles or property if you’re involved in an accident. It can also cover medical bills should there be any injuries and any legal fees that may arise after a collision.

What Are the Different Types of Car Insurance?

There are several types of car insurance, including collision coverage for accidents and comprehensive coverage for natural acts, like hurricanes or hail. Other popular types of auto insurance coverage include medical payments coverage and uninsured or underinsured motorist coverage to protect you against drivers with no car insurance. Available coverages can vary from provider to provider, so be sure to consider your specific needs before beginning your search.

What Factors Affect the Cost of Car Insurance?

Insurers use several factors to price your auto insurance premiums, including your age, gender, credit score, and driving history. Certain drivers, such as students, seniors, or military members, may be eligible for extra savings that can help lower the cost of car insurance.

Methodology

Our team evaluated 25 insurance companies and collected thousands of data points before selecting our top choices. We weighed eight criteria and gave a higher weight to those with a more significant impact to potential customers. 

The top picks were selected based on factors like median annual premium (weighted 25%), fairness in pricing methodology (weighted 15%), and regional availability (weighted 15%). We also took into account other features that are important to buyers including complaint scores, consumer satisfaction reports from J.D. Power and Consumer Reports, and company loss ratios.

For further information about our selection criteria and process, our complete methodology is available.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
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  2. AMBest. "State Farm Mutual Automobile Insurance Company."

  3. NAIC. "Consumer." 

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  6. Dairyland Insurance. "SR22 Insurance and How It Works."

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  8. NAIC. "CIS Refined Results."

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  10. AM Best. "New Jersey Manufacturers Insurance Company." 

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  13. AM Best. "Progressive Casualty Insurance Company."  

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  19. AM Best. "Affirms Ratings of Auto-Owners Insurance Co and Most Subs."