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  2. Car Insurance

8 Best Car Insurance Companies of 2024

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Best for Customizable Premiums
Easily Compare Quotes In One PlaceBest for Essential Worker and First Responder DiscountsBest for Flexible Policies
Progressive Logo
Insurify Logo
Farmers Logo
Nationwide Logo
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Discounts

Bundling, multiple vehicles, installing anti-theft devices, automatic and paperless statements, loyalty rewards, teen driver discounts

Bundling, multiple vehicles, safe driver, anti-theft, low mileage, vehicle safety, homeowner, student, senior, hybrid/electric vehicle, group savings, newly marries, fully/automatic payment

Bundling, good student and students away from home, automatic, paperless, on-time payments, shared family car, anti-theft, anti-lock brake and passive restraint systems, hybrid/ electric vehicles, military members and essential service professionals

Bundling, vehicle safety and anti-theft devices, automatic and paperless billing, safe driver rewards, defensive driving course completion, good student driver (ages 16-24)

Tools

Mobile app, Name Your Price tool, car insurance calculator, Snapshot tool

Mobile app

Mobile app

Mobile app, SmartMiles, Smart Ride

Availability

All 50 states

All 50 states

All 50 states

47 states (Not Alaska, Louisiana or Massachusetts)

Best for Customizable Premiums
Progressive
Our Partner
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Discounts

Bundling, multiple vehicles, installing anti-theft devices, automatic and paperless statements, loyalty rewards, teen driver discounts

Tools

Mobile app, Name Your Price tool, car insurance calculator, Snapshot tool

Availability

All 50 states

Easily Compare Quotes In One Place
Insurify
Our Partner
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Discounts

Bundling, multiple vehicles, safe driver, anti-theft, low mileage, vehicle safety, homeowner, student, senior, hybrid/electric vehicle, group savings, newly marries, fully/automatic payment

Tools

Mobile app

Availability

All 50 states

Best for Essential Worker and First Responder Discounts
Farmers
Our Partner
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Discounts

Bundling, good student and students away from home, automatic, paperless, on-time payments, shared family car, anti-theft, anti-lock brake and passive restraint systems, hybrid/ electric vehicles, military members and essential service professionals

Tools

Mobile app

Availability

All 50 states

Best for Flexible Policies
Nationwide
Our Partner
View Rates
Discounts

Bundling, vehicle safety and anti-theft devices, automatic and paperless billing, safe driver rewards, defensive driving course completion, good student driver (ages 16-24)

Tools

Mobile app, SmartMiles, Smart Ride

Availability

47 states (Not Alaska, Louisiana or Massachusetts)

We vetted 23 companies to ensure that the insurers on our list offer the five main types of auto insurance coverage needed by Americans: collision, comprehensive, personal injury protection, liability and uninsured/underinsured motorists coverage. Amica Mutual lands in the top spot for the best car insurance of 2024, but all eight companies on the list offer drivers a slew of benefits.

In our research, we also identified and weighted a multitude of discounts — ranging from paperless billing to multi-car policy discounts — to help you offset monthly premiums. So if you’re shopping for a new policy, Money’s top picks for the best auto insurance companies will help you secure the coverage you need at a price that’s right for you.

Read on to learn about the eight best auto insurance companies for 2024, where we break down each insurer’s policies, provisions and perks to help you secure affordable protection.

Summary

Our Top Picks for Best Car Insurance Companies for 2024

Why Trust Us?

Our writing and editing team independently evaluate car insurance companies and policies to ensure the accuracy and reliability of our information. For a more comprehensive view into our methodology, click here.

  • 13 insurers reviewed
  • 4 factors considered
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Best Car Insurance Companies Reviews

Pros
  • Free airbag replacement (after it deploys)
  • Lock replacement if your keys are stolen
  • $1,000 for bail bonds/wage reimbursement if required to appear in court
  • Offers non-binary option for gender
Cons
  • No rideshare insurance
  • Not all features are available nationwide
  • Coverage not available in Hawaii
HIGHLIGHTS
A.M. BEST RATING
A+
J.D. POWER RATING
Above average (909/1,000)
NAIC Complaint Index
Below average (0.54)

Why we chose it: Amica Mutual made our list for its Platinum Choice Auto policy, which lets drivers earn Advantage Points rewards and save significantly on their deductible.

Amica Platinum Choice Auto policy is a ready-made package that includes all the basic coverage most people need, in addition to unique perks such as identity fraud monitoring.

It also offers $0 out-of-pocket glass replacement, up to $5,000 in rental car coverage and an Advantage Points program where drivers can earn points to reduce their deductibles or keep rates from increasing after a claim.

Amica breaks down its coverage into two categories: the things you need to have and those that are nice to have.

Amica’s auto insurance policies include:

  • MedPay — additional coverage for medical bills and funeral expenses
  • Collision — covers accident-related damage
  • Comprehensive collision — covers damage caused by theft, fire or other natural disasters
  • Guaranteed asset protection (GAP) — covers the “gap” between what you owe and the depreciated value of your car if it were to be totaled
  • Credit monitoring service — offered by very few companies, this can help you keep track of your credit score and alert you to any potential identity theft

As for customer satisfaction, Amica had the highest score in the New England region for 10 years in a row in J.D. Power's Auto Insurance Customer Satisfaction study and finished 2023 ranked second just three points below GEICO. Amica also has an average National Association of Insurance Commissioners (NAIC) complaint ratio (rate increases and delays in claims handling are recurring issues) and received a B in the 2023 CRASH report card, where mechanics rate insurers based on how they handle policies and make payments.

Amica car insurance discounts

Bundling policies and insuring multiple vehicles
Paperless payments, up-front premium payments and AutoPay
Good driver: being claim-free for three years and taking a defensive driving course
Young drivers: for completing a training program, students with good grades and full-time students away at school
Having anti-theft devices, passive restraint or electronic stability features
Loyalty discounts after two years of being insured
Legacy discounts for drivers under 30 whose parents have been insured with Amica for at least five years

Amica car insurance tools

Mobile app: track claims, request roadside assistance, pay bills
Car Connection tool for comparing prices on new and used cars
Pros
  • Premium discount for signing up for drive-monitoring program
  • Name Your Price tool for searching premiums within a budget
  • Compare quotes with Progressive's comparison tool
  • Loyalty Reward program
Cons
  • Phone and online quotes may vary
  • Discounts vary and are not available in all states
HIGHLIGHTS
A.M. BEST RATING
A+
JD POWER RATING
Below average (870/1,000)
NAIC Complaint Index
Below average (0.81)

Why we chose it: We picked Progressive as the best car insurance for customizable premiums because its Name Your Price tool allows drivers to pick coverage that fits within their budgets.

What sets Progressive apart from other auto insurance companies is the customization it offers customers. With the Name Your Price tool, customers are able to establish a budget and Progressive creates a policy to match it. From there, policyholders can pick and choose coverage limits and deductibles.

For example, you can increase the deductible for collision coverage and save on your premium; however, note that if you're in an accident, you'll have to pay a higher amount before the insurance kicks in.

Among the notable add-ons Progressive offers is GAP coverage. For an extra $14 a month, this coverage pays up to 25% of the difference between the value of the vehicle and what you owe. Another valuable add-on is the custom equipment coverage that you can use to repair any accessories meant to aid mobility, a GPS system or any other customization you’ve done to the vehicle.

Progressive also covers some things that few other insurers do. One is rideshare coverage, which covers you if you work for any type of rideshare service (Uber, Lyft or food delivery services like DoorDash), whether you do it as a full-time job or as a side hustle. Additionally, Progressive’s collision policy covers medical care for any injuries your pet sustains during an accident.

In terms of savings, Progressive's telematics Snapshot program uses driving data such as acceleration, braking and distance while providing drivers a discount for safe driving behavior. It also gives customers the option of joining its deductible savings bank. This program puts $50 into savings every six months that go by without a claim or driving violation until it reaches your deductible limit. Then, if you file a claim your deductible will already be paid for.

Read full review

Progressive car insurance discounts

Bundling auto insurance policy with home, renters or life insurance
Insuring multiple vehicles
Choosing automatic and paperless payments
Maintaining continuous coverage with Progressive
Teen driver discounts: full-time students with good grades and students away from home

Progressive car insurance tools

Find coverage options within your budget with the Name Your Price tool
Car insurance calculator based on your state and personal details
Get personalized rates with Snapshot, a usage-based insurance program (not available in California or North Carolina)
Mobile app: view your driving status, see recent trips and learn ways to improve your driving
Pros
  • Available in most states
  • Save money with Drive Safe & Save and Steer Clear programs
  • Travel expenses coverage
Cons
  • Drive Safe & Save program not available in CA, MA or RI
  • Excludes certain Ford and Lincoln models
HIGHLIGHTS
A.M. BEST RATING
A++
JD POWER RATING
Above average (891/1,000)
NAIC Complaint Index
Below average

Why we chose it: We chose State Farm as the best car insurance for young drivers because it rewards teenage student drivers with a GPA of 3.0 or higher with up to 25% in savings.

Teen drivers are the most expensive to insure, but State Farm stands out from other insurers by offering teen drivers steep discounts that can offset the high premiums. With the Good Student Discount policyholders can save up to 25% if their teen driver keeps a GPA of 3.0 or higher until they turn 25. Drivers under 21 can also get a discount for taking a driver’s ed course.

Additionally, the “Student Away at School” discount helps customers save by only covering the student while at home on vacation and holidays.

State Farm is well known for its network of close to 19,000 agents across all 50 states. This makes it ideal for people who prefer more personalized service, and who prefer to have a dedicated agent they can go to with questions. It also ranked fifth-highest among all car insurers nationwide in the J.D. Power U.S. Auto Claims Satisfaction Survey.

As for its policies, State Farm offers rental cars and travel expenses coverage for when you're in an accident 50+ miles from home. Others cover road assistance if your car breaks down (e.g., you get a flat tire, need a jumpstart, or lock your keys inside the car), whereas State Farm’s travel expenses coverage extends its roadside assistance if you're in an accident that's covered by your comprehensive and collision insurance. This pays up to $500 per loss for expenses like hotel and food, as well as a rental car while your car is in the shop.

One of State Farm’s notable discounts is the Drive Safe and Save telematics program which monitors your speed, braking and other driving factors and provides feedback on these. State Farm gives you a discount just for enrolling and once you start using the app you can get up to 30% discount for safe driving habits.

State Farm car insurance discounts

Bundling with renters, homeowner’s or life insurance policies
Insuring multiple vehicles
Drive Safe & Save telematics program rewards you for good driving habits
Defensive driving courses (in select states)
Vehicle safety features (seatbelt, airbags on older vehicles)

State Farm car insurance tools

Mobile app: pay bills, file claims, request roadside assistance, view ID cards and link your bank account
Make car reservations through Enterprise or Hertz
Directory of reliable auto repair shops
Pros
  • Guaranteed Value coverage pays out an "agreed value" if your car is totaled
  • Has multiple discount categories available
  • Discount for alternative-fuel vehicles (first insurer to offer this)
Cons
  • Discount eligibility and percentages vary depending on your place of residence
  • Does not offer GAP insurance
HIGHLIGHTS
A.M. BEST RATING
A-
JD POWER RATING
Above average (878/1,000)
NAIC Complaint Index
Below average (0.75)

Why we chose it: Farmers is our pick as the best car insurance for essential workers because of its array of discounts aimed specifically at teachers, healthcare workers and other first responders.

Although Farmer’s doesn’t offer the cheapest rates, it offsets these by offering policies and discounts that not many other insurers offer. One example is the company’s Affinity discount, which gives healthcare professionals, members of certain organizations as well as active, reserve or honorably discharged military personnel a discount of up to 5% on their auto policies.

Other notable discounts include:

  • The Senior Driver discount for people over 55 (or 65, depending on the state) who take a state-approved safe driver training. This is valuable because senior drivers, like teen drivers, pay higher premiums because they’re seen as riskier to insure.
  • The Good Student discount for students with a 3.0 or better GPA, those on the dean’s list, honor roll, in the top 20% of their class or who score in the top 20% on standardized tests.
  • The Shared Family Car discount (not available in CA), is available to single drivers up to age 20 in a household where there are more active drivers than vehicles. Vehicles defined as Storage use are excluded from the vehicle count in the application of this discount.

For classic car enthusiasts, Farmers offers classic and collector car insurance. With this coverage, you can protect your collectible at the car show down the road or even while abroad. Policyholders can pair this with spare parts coverage and get up to $750 for spare part repair or replacement, at no extra cost.

A drawback to Farmers is its slightly higher-than-average rates; however, its unique offerings make it a great option for those who are willing to spend a bit more for custom coverage.

Farmers car insurance discounts

Bundling insurance policies and insuring multiple vehicles
Student discounts for good grades and being away from home
Automatic, paperless and on-time payments
Shared family car (not available in California)
Anti-theft, anti-lock brake and passive restraint systems
Hybrid/electric vehicles or those powered by other alternative fuels (only in California)
Discounts for military members and other essential service professionals

Farmers car insurance tools

Mobile app: chat with an agent, request roadside assistance, get a quote
Specialty insurance options like motorcycle and boat insurance
Pros
  • Get discounts with the SmartRide safe driving app
  • Pay based on how many miles you drive
  • $500 cash bonus with the purchase/lease of a qualified new vehicle
Cons
  • SmartRide and SmartMiles discount availability vary per state and coverage
  • Accident forgiveness not available in all states
  • Not available in Alaska, Hawaii, Louisiana or Massachusetts
HIGHLIGHTS
A.M. BEST RATING
A+
J.D. Power Score
Below average (875/1,000)
NAIC Complaint Index
Above average (1.1)

Why we chose it: We chose Nationwide as the best for flexible policies because it offers a free yearly policy evaluation where drivers can review their coverage, ask questions, make changes and apply for discounts.

Nationwide offers a variety of standard and optional coverage to choose from. To help drivers choose the right coverage year after year, Nationwide provides the On Your Side Review, a yearly evaluation where customers can bring up questions about their policy and evaluate whether the discounts and benefits still work for them.

Nationwide offers two programs that can help you save based on your driving habits. SmartRide is a telematics program that tracks your driving (miles driven, idle time, night driving acceleration and braking) and gives you feedback to improve your driving. You get 10% off by signing up and can save up to 40% based on how safely you drive. The other program is SmartMiles which charges a base rate of $60 and a variable rate of $0.07 per mile driven every month.

Nationwide also offers the Vanishing Deductible. This discount rewards you with $100 off your deductible for each accident-free year, up to $500. So, let’s say you’ve been with Nationwide for four years without incident. If you do have an accident in your fifth year you'd pay a $100 deductible and you’ll continue earning a yearly reward of $100 the next year.

Nationwide’s NAIC Complaint Index score of 1.1 was just above the median score of 1; however, its ranking on J.D. Power’s U.S. Auto Claims Satisfaction Study was below average.

Nationwide car insurance discounts

Save an average of $646 when bundling auto and home insurance
Vehicle safety and anti-theft devices
Automatic and paperless billing
Safe driver rewards for customers who go five years without major violations or at-fault accidents
Complete a defensive driving course
Good student discounts for drivers aged 16 to 24 who maintain a minimum B average

Nationwide car insurance tools

Mobile app: manage insurance policies, make payments, file and track claims and request roadside assistance
SmartMiles, a pay-per-mile car insurance program for low-mileage drivers
SmartRide, a usage-based car insurance program for safe drivers
Pros
  • Pay bills or request roadside assistance with the mobile app
  • Coverage calculator
  • Discounts available to federal and military employees, seniors and students
Cons
  • Accident forgiveness not available in CA, CT and MA
  • Does not offer GAP insurance
HIGHLIGHTS
A.M. Rating
A++
J.D. Power Rating
Below average (871/1,000)
NAIC Complaint Index
Below average (0.75)

Why we chose it: GEICO's mobile app not only lets you access digital insurance cards and file claims, but it also connects to CARFAX which gives you access to your vehicle’s history and check for recalls.

GEICO’s gecko mascot is often the first thing that comes to mind when you think of the insurance company. But when it comes to service, the company stands out for offering a completely digital experience, which is ideal for those who would rather go online than call customer service.

With GEICO's mobile app, policyholders can request roadside assistance, upload photos to get damage estimates as well as submit and manage their claims. It can also serve as a type of “agent in your pocket” that answers insurance-related questions and helps you stay on top of your car's history, sending you alerts about recalls or when it's time for maintenance.

GEICO offers all the standard types of coverage, such as bodily injury liability, collision, comprehensive, uninsured/underinsured motorist and medical coverage. Its site offers a breakdown of these along with information on limits, premiums and deductibles to help customers create a policy that fits their needs and budget.

It also offers a slew of discounts to help customers get lower rates. These are divided into four areas: vehicle equipment, driving history and habits, driver affiliation and customer loyalty. For example, their anti-theft system discount can save members up to 23% and a driver who has gone accident-free for 5 years can save up to 22%.

GEICO also offers notable discounts for the military — one for being an active or retired member and one in case of emergency deployment. These can save policyholders 15% and 25%, respectively. Of all the companies on our list, GEICO is one of only two that offer such discounts for military personnel.

As for third-party ratings, GEICO scored above average in most regions surveyed by J.D. Power’s 2023 U.S. Auto Claims Customer Satisfaction Study.

GEICO car insurance discounts

Equipment discounts for new cars, airbags, anti-lock brakes, anti-theft systems and others
Being accident-free for five years
Using a seatbelt, taking defensive driving or driver's education courses and being a good student
Affiliation discounts for military members and federal employees
Insuring multiple vehicles and having multiple policies
Senior driver discounts for drivers over 50

GEICO car insurance tools

Mobile app: access ID cards, pay bills and request roadside assistance or customer support 24/7
DriveEasy telematics program rewards safe driving behavior
Car insurance coverage calculator
Pros
  • Drivewise driving insights and discounts for safe driving
  • Safe Driving Bonus every six months drivers are accident-free
  • Discounts for new cars and teen drivers
Cons
  • Drivewise program not available in every state
  • Online and local agent premiums may vary
HIGHLIGHTS
A.M. Best Rating
A+
J.D. Power Rating
Above average (882/1,000)
NAIC Complaint Index
Below average (0.62)

Why we chose it: We chose Allstate as the best auto insurance for usage-based programs due to its Drivewise telematics feature, which helps drivers save by tracking their driving, offering feedback and rewarding them for being safe on the road.

Nowadays, the best auto insurance companies offer telematics and our top pick from among them is Allstate Drivewise. This telematics system provides feedback on your driving behavior and rewards you for safe driving. Customers get 10% off just for signing up and can save up to 40% with all the combined discounts when renewing.

One of Drivewise’s most notable safety features is crash detection. As the name implies, it detects when you are in an accident — whether you’re the driver or passenger — and sends you a notification offering to contact roadside assistance or 911.

Allstate also stands out when it comes to bundling discounts. Customers can get 10% off auto insurance and 25% off homeowners when they get both policies. In contrast with other providers, Allstate’s home insurance policies include flood protection, making bundling a very attractive alternative.

Additionally, unlike many competitors, Allstate offers coverage in Mexico for either your own vehicle or a rental while you travel. This makes them a great option for customers in Texas and other border states.

Allstate car insurance discounts

Vehicle equipment discounts for new cars, anti-lock brakes and anti-theft devices
Multiple policies
Safe driving
Signing your policy seven days before effective date
Not missing any payments for a year
Discount for students with good grades, those who study away from home and complete a driver's education program
Automatic payments, full payments and paperless billing

Allstate car insurance tools

Mobile app: access ID cards, pay bills, report claims, request roadside assistance and accident support
Drivewise, a usage-based insurance program
Milewise, a pay-per-mile car insurance program
Bumper-to-Bumper Basics, a tool for selecting the right coverage limits and deductible
Pros
  • Highest overall customer satisfaction rating of the companies we reviewed
  • Family discount for members whose parents were customers of USAA
  • Available in all 50 states and Washington, D.C.
Cons
  • Only available to active and retired members of the military and their families
  • Offers fewer specialty coverages compared to other car insurance providers
HIGHLIGHTS
A.M. Best Rating
A++
J.D. Power Rating
Above average (900/1,000)
NAIC Complaint Index
Below average (0.98)

Why we chose it: Our pick for the best car insurance company for members of the military, their families and veterans is USAA because it caters specifically to these groups and has one of the highest customer satisfaction ratings of all the companies we reviewed.

In J.D. Power's 2023 U.S. Auto Claims Satisfaction Study, USAA scored the second-highest nationwide, with only Amica Mutual scoring higher. (Note that USAA did not earn a rank because, according to J.D. Power, it doesn’t meet the study award criteria.)

Like other companies, USAA offers a variety of discounts with some unique features. These include a car storage discount for those members who store their vehicles at a military installation. In this case, customers get up to 60% off their policy and could save up to 15% on comprehensive coverage for storing their car in a military base or installation. It also offers a low-mileage discount that both stateside and deployed members can benefit from.

Another area where USAA shines is its Safepilot telematics program. By enrolling, members get an automatic 10% discount and then stand to earn up to 30% off for safe driving. However, note that Safepilot works through an app, and the latest reviews for these show a pattern of complaints describing the last update as “buggy” and frustrating to use.

Although well known for customer service, recent reviews logged with the Better Business Bureau point to a possible slump. Customers complained about problems with the claims process and inconsistent customer support.

Although USAA is one of the best providers available for military members, their families and veterans, we recommend you make sure that USAA's other insurance policies are a good fit as well, for there may be other providers that offer a better bundle.

Read full review

USAA car insurance discounts

Safe driver discount for being accident-free for more than five years
Defensive driving discount for taking an approved course
Driver training discount for completing a basic driver training course
Good student discount for teenage drivers with good grades
New vehicle discount for a car that’s less than three years old
Multi-vehicle discount
Vehicle storage discount
Family discount
Military installation discount
Automatic payments

USAA car insurance tools

Mobile app: manage policy, get car insurance quotes, get auto ID cards and transfer funds
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Other Car Insurance Companies We Considered

Erie

Pros
  • Rated second-highest by J.D. Power
  • Ability to lock in rates until you change covered drivers, covered car or home address
Cons
  • It only operates in IL, IN, KY, MD, NY, NC, OH, PA, TN, VA, WV, WI and DC

Why Erie didn’t make the cut: This provider only operates in 12 states and the District of Columbia, excluding major population centers like New York.

Erie was ranked second-highest in J.D. Power’s 2023 2023 U.S. Auto Claims Satisfaction Study and received an A+ rating from A.M. Best.

The Rate Lock feature helps Erie stand out among the rest. This unique feature freezes policyholders' insurance premiums year after year — even after filing a claim. We found no other provider that offers this feature.

When it comes to discounts, Erie offers similar ones to others on our list — notable among these are diminishing deductibles, first accident forgiveness and vehicle storage.

Liberty Mutual

Pros
  • Save up to 30% on your policy for safe driving with RightTrack app
  • Get a discount for your hybrid or electric vehicle
  • Get a better price when you purchase your policy online
Cons
  • The highest NAIC complaint ratio out of all insurers on our list
  • Below average J.D. Power rating
  • Accident forgiveness not available in CA

Why Liberty Mutual didn’t make the cut: Liberty Mutual didn’t make our main list because it has the highest NAIC complaint ratio from the companies we evaluated. At 3.34, its ratio is over three times higher than the second highest insurer we’ve listed. Liberty Mutual also scored below average on the J.D. Power 2023 U.S. Auto Claims satisfaction survey.

Like many other companies, Liberty Mutual offers medical expense payments, uninsured motorists, personal injury protection, liability coverage, collision and comprehensive coverage. It also offers riders such as roadside assistance, GAP coverage and rental reimbursement.

Some unique features include coverage for teachers who store valuable supplies in their cars and its lack of caps on the discounts you can accrue. It also provides a coverage calculator on its site, which you can use to determine the level of protection you want.

Read full review

Travelers

Pros
  • Features two accident forgiveness plans
  • Intellidrive program can reduce rates by as much as 20%
  • Optional premier program combines new car replacement coverage, loan/lease GAP coverage and a glass deductible
Cons
  • Below average J.D. Power rating
  • Rideshare coverage only available in CO and IL
  • Not available in AL, HI, LA, MI, ND, SD, WV or WY

Why Travelers didn’t make the cut: Travelers didn't make our best auto insurance list because it doesn’t offer policies in Alaska, Hawaii, Louisiana, Michigan, South Dakota, North Dakota, West Virginia or Wyoming. It also scored below average on the J.D. Power 2023 U.S. Auto Claims satisfaction survey.

Travelers can give you a quote in five minutes or less, and you don’t even have to provide a driver’s license number. If you request your car insurance quote while you’re still insured with another company, you might receive a discount of up to 10% once you sign up.

Travelers’ coverage options include liability, collision, comprehensive, personal injury protection and medical expenses. It also offers additional coverage options like loan/lease GAP coverage, rental reimbursement, accident forgiveness, new car replacement and roadside assistance. Note that it only offers rideshare coverage for Uber or Lyft drivers in Colorado and Illinois.

Travelers didn't make our list because it doesn’t offer car insurance in Alaska, Hawaii, Louisiana, Michigan, South Dakota, North Dakota, West Virginia or Wyoming.

QuoteWizard

Pros
  • Compare online quotes from multiple top insurance providers at the same time
  • Users can compare other types of policies such as home, renters and life insurance
Cons
  • Doesn't offer quotes, the website redirects you to lender websites
  • May share information you provide with lenders and other third parties

Why Quote Wizard didn’t make the cut: QuoteWizard didn't make our list because it’s a marketplace, not an insurance provider, therefore its quotes do not reflect the price customers will end up paying.

If you’d like to compare car insurance quotes from different companies, the QuoteWizard marketplace is a great option. Its site makes it fairly easy to compare quotes and types of coverage from the major companies, saving you the time it would take to contact each individual provider.

Do note that the quotes provided are estimates as there are many factors that affect your premium and average rates, including your vehicle make and model, location and, of course, the type of coverage you want. You’ll also have to check local and state laws to make sure your policy meets the minimum liability requirements.

QuoteWizard didn't make our list because it’s a marketplace, not an insurance provider, therefore its quotes do not reflect the price customers will end up paying.

Spark Auto Insurance

Pros
  • Partners with other auto insurance companies
  • Requires you to enter personal information before connecting you with its provider network
Cons
  • Allows drivers to compare coverage from comparing multiple companies
  • Coverage varies by provider

Why Spark Auto Insurance didn’t make the cut: When we tried to get quotes for a hypothetical customer it yielded just one result.

Spark Auto Insurance is an online marketplace where customers can compare quotes and coverage from some of the best insurance companies in the market such as Progressive, State Farm, Liberty Mutual, Travelers and Allstate.

This network of providers offers standard and optional coverage options, such as bodily injury liability, damage liability, collision, comprehensive, personal injury, medical payments and underinsured motorist, among others.

To get a quote, users need to input basic information such as their address, vehicle make and model and marital status. Spark then shows one or more results from providers that offer a policy to match their particular profile.

Car Insurance Guide

In this section, you’ll learn what auto insurance covers, common coverage options, how much you can expect to pay and how to keep your premiums low.

Plus, we’ll share some eye-opening car accident statistics that drive home why car insurance is mandatory in almost every state.

How to get car insurance

Whether you’re getting car insurance for the first time or because your current insurance term is ending, it’s a good idea to review the steps to buying car insurance. While the exact process may vary depending on the insurance company you select, here’s what you can expect.

  • Gather Information: Gather your personal and vehicle information. Common items you’ll need include your driver's license, vehicle registration and a copy of your existing insurance declaration page if the vehicle is already insured.
  • Get quotes: Since insurance rates can vary drastically, we recommend you get quotes from at least 3-5 insurers.
  • Compare your options: As you’re comparing premiums, be sure to look at the type of coverage and limits. It’s important to compare apples to apples.
  • Read customer reviews: Reviews from current and previous customers can help you when deciding between multiple insurers.
  • Buy your new car insurance policy (and cancel your old one): The final step is to buy your new car insurance policy. You don’t want to cancel your old policy until you have your new one in place, otherwise you can have a lapse in coverage.

Is car insurance mandatory?

Auto insurance is regulated at the state level, so your policy’s minimum liability limits will depend on local laws. Except for New Hampshire and Virginia, all other states require drivers to buy car insurance or pay some sort of fee if uninsured.

How does car insurance work?

Auto insurance helps you cover losses stemming from theft, collision, natural disasters and liability involving your vehicle. In simple terms, you pay a premium to an insurer, and it pays for losses as stipulated in your policy.

Liability policies don’t require you to pay a deductible, but other coverages typically do. Your deductible is how much you must pay out of pocket before the insurer covers the rest. These can range from $250 all the way to $2,000. Policies with higher deductibles will cost less than those with lower deductibles because you’ll assume more of the cost of repair or replacement in the event of an incident.

Types of car insurance coverage

There are seven standard types of auto insurance coverage:

  • Liability insurance includes property damage and bodily injury liability. It only covers damages that you cause others in an at-fault accident.
  • Uninsured/underinsured motorist coverage covers medical bills and repairs if you’re in an accident caused by another driver with little or no insurance. It can also cover the cost of damages that result from a hit-and-run.
  • Comprehensive coverage pays for repairs if your vehicle is damaged by something other than another vehicle (including hail, fire, floods, theft and vandalism).
  • Collision coverage covers repair costs to your vehicle if you're involved in an at-fault accident.
  • Full coverage car insurance is a term referring to having comprehensive and collision policies along with the state minimum.
  • Medical payments coverage pays for medical expenses if you or your passengers are injured in an accident.
  • Personal injury protection (PIP), also known as no-fault insurance, covers medical bills, loss of wages and funeral costs for you or your passengers if you're in an accident, regardless of who is at fault.
  • Guaranteed asset protection (GAP), pays the difference between how much you owe on your vehicle and how much your insurance will pay out if your vehicle is totaled or stolen.

In addition to these, optional insurance riders can give you additional coverage such as roadside assistance, glass replacement and rental reimbursement at an extra cost.

How much is car insurance?

Car insurance costs vary greatly based on a wide range of factors. In fact, the NAIC explicitly mentions that state-to-state comparisons are difficult to make because of the high degree of variability in insurance requirements and other factors.

According to multiple third-party sources, the average cost of car insurance is around $2,000 annually; however, state minimum coverage averages around $600 annually. The best way to see how much you’ll pay is to get quotes from several auto insurance companies.

How to lower your car insurance premium

There are things you can do to lower the cost of your car insurance. You may already know about bundling and discounts, but there are other things you can do to help offset the high cost of insurance. (And, if you’re interested in switching insurers to get a lower price, take a look at Money’s guide on how to change car insurance.)

Bundle insurance policies

On average, bundling can save you 8% on your combined premiums. Consider one of our best homeowners insurance or renters insurance providers if you're looking to bundle auto and home.

Increase your deductible

The deductible is the portion of damages you’ll have to pay out of pocket before your insurance company pays the rest. Increasing your deductible can make your payment more affordable. However, you want to ensure that you can afford to pay it out of pocket in case you’re in an accident.

Review your policy regularly

Reassessing your current policy annually before renewal, or whenever you make life changes that affect who is driving your car, can ensure you’re getting the type and level of car insurance coverage you need and can afford.

Apply for discounts

Companies offer discounts to policyholders who maintain a clean driving record (e.g., no speeding tickets, DUI, etc.) and drive vehicles with good safety features.

Although discounts vary from one lender to the next, common ones include safe driver, multi-vehicle and multi-policy.

Reduce coverage

You can reduce your annual premium by dropping collision or comprehensive coverage on vehicles that don’t have a lease or loan.

Consider usage-based insurance

Usage-based insurance (UBI) policies take into account your current driving habits to determine your premium.

These may measure how fast you drive, how quickly you turn and how abruptly you break. Depending on your driving habits, you could earn a discount on your policy.

Shop for rates

Shopping around and comparing quotes from at least three different insurance providers can help you get the cheapest rate, without sacrificing important coverage. Using a car insurance comparison tool can help match you with a provider that offers the best car insurance policy for your vehicle.

Besides average rates, consider available discounts, coverage limits and deductible options when shopping for car insurance coverage. If you don’t know where to start, an independent insurance agent or broker could help you narrow down your options.

If you want to read more about savings opportunities with online insurers, read our guide to the best cheap car insurance companies.

Latest News on Car Insurance

Car Insurance FAQs

What is liability car insurance?

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Liability car insurance covers drivers in the event of an at-fault accident and includes bodily injury liability and property damage coverage. In most states, this type of insurance is a requirement.

Bodily injury liability protects drivers if they're at fault for an accident by covering the medical expenses of the other driver or their passengers.

Property damage liability, on the other hand, protects at-fault drivers by covering the cost of the other person's property repairs.

How much is car insurance a month?

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Car insurance premiums will vary greatly depending on the driver, vehicle and state. In order to find the most accurate premium, you want to get quotes from different insurance companies.

According to multiple third-party sources, the national average cost of car insurance is around $2,000 annually, while state minimum coverage averages around $600 annually. States like Michigan and Florida have some of the highest rates in the country, while others like Maine and Ohio offer the lowest.

What is comprehensive car insurance?

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Comprehensive auto insurance covers damage to your car that results from something other than a collision. This can include theft, damage from a natural disaster or vandalism.

How much car insurance do I need?

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You need to at least meet your state's minimum insurance requirements. Beyond that, if you have a lease or loan on your vehicle your lender will require you to have collision and comprehensive coverage.

If you want any additional coverage, it's up to you to decide how much you should add to your policy.

How much is car insurance for a 16-year-old?

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As insurance premiums depend on various factors, it's hard to get reliable data on car insurance rates for 16-year-old drivers. What we can say for sure is that premiums for this age group are higher than most.

Since younger drivers have less experience and are statistically more likely to get into accidents, insurers will charge them higher premiums to account for high risk.

How We Chose the Best Car Insurance Companies

As part of our research methodology, we compared and vetted 23 insurers. We then narrowed down our list based on the following factors.

  • Financial stability: An insurance company’s financial stability can be gauged by its AM Best financial strength rating. We chose insurers with an A rating or better.
  • Discounts: Auto insurance policies that cover anything beyond basic liability can be costly. We picked companies that offered plenty of bundling options and generous discounts.
  • Technology: Most of the companies on our list use automation to provide auto insurance quotes in a matter of minutes and allow customers to file claims 24/7. Car insurance companies that allow policyholders to file car insurance claims via apps ranked higher on our list.

Summary of Money’s Best Car Insurance for 2024