We’ve taken guesswork out of finding the best car insurance companies by analyzing important factors that will affect your customer experience.
We evaluated large auto insurance companies based on average rates
for a variety of drivers, coverage features available, levels of
complaints, grades for collision claims from auto body repair
professionals and how understandable the insurers’ websites are. See our
top picks below.
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The Best Car Insurance Companies
Whether you’re looking to switch insurers or this is your first time picking out a policy, our picks for best auto insurance companies offer all the coverage you need.
The companies on our list all offer the five main types of coverage: collision, comprehensive, personal injury protection, liability, and uninsured/underinsured motorists coverage.
They also have a slew of discounts to help offset the cost of your monthly premium. You can lower your rate by choosing paperless billing, insuring multiple cars, taking safe driving courses and staying with the same company, among others.
We prepared a comprehensive breakdown of each company’s policies, provisions and perks to help you on the road to solid and affordable protection.
So, hop in as we review the eight best auto insurance companies for October 2022.
Our Top Picks for Best Car Insurance Companies of October 2022
- Amica Mutual - Best Car Insurance Package
- Progressive - Best for Customizable Premiums
- State Farm - Best for Young Drivers
- Farmers - Best for Essential Worker and First Responder Discounts
- Nationwide - Best for Flexible Policies
- GEICO - Best Mobile App
- Allstate - Best Usage-Based Insurance Program
- USAA - Best for Military Members
Best Car Insurance Companies Reviews
How we ranked the top auto insurers
NerdWallet’s editorial team considered pricing, discounts, complaint data from the National Association of Insurance Commissioners and more to determine the best car insurance companies. Our “ease of use” category includes factors such as website transparency and how easy it is to file a claim. As we continue to evaluate more insurance providers and receive fresh market data, this list of best auto insurance companies is likely to change.
Best car insurance companies: Pros and cons
Learn more about our top auto insurance companies by reading our brief summaries below. For more details, check out our comprehensive reviews.
American Family: Best overall
Auto-Owners: Best for few customer complaints
Amica: Best for discounts
Progressive: Best large insurer for pet owners
State Farm: Best large insurer for customer satisfaction
Travelers: Best for ease of use
Auto Club Group: Best insurance that requires a membership
How Much Does Car Insurance Cost?
Car insurance shoppers often put the most importance on price. Here are average annual and monthly costs for good drivers.
Car Insurance Cost by Driving Profile
Here’s a look at car insurance rates based on averages nationwide among the largest insurance companies.
Car Insurance Costs by Age
Young, inexperienced drivers will pay the most for auto insurance. Around age 25 car insurance rates will start to steadily decline. Rates start to creep back up once you hit your 70s.
Here are annual rates based on national averages from some of the largest car insurance companies.
Why Do People Shop for New Car Insurance?
Shopping around for car insurance can result in savings, but many car owners renew their policies each year without checking prices from other insurance companies.
A March 2022 Forbes Advisor survey of 2,000 drivers asked what would motivate them to shop for a new car insurance policy. More than half said any of these three reasons would get them to shop around:
- A bad experience with a car insurance claim (55%)
- Looking for a better price (54%)
- Current company doesn’t have the coverage types I want (52%)
Older drivers (ages 58 to 76) chose price as the No. 1 reason to shop around, while bad claims experiences and coverage types were tops for younger drivers (ages 18 to 25).
Factors That Impact the Cost of Car Insurance
Your car insurance cost will vary depending on several factors that typically include:
- Your driving record
- Your age and years of driving experience
- Where you live
- Car insurance coverage selections
- Deductible amount (if you buy collision and comprehensive coverage)
- Vehicle model
- Your car insurance history, such as whether you’ve had continuous coverage or lapses
- Your credit-based insurance score (use of credit in calculating car insurance costs is banned in California, Hawaii, Massachusetts and Michigan)
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 (Wawanesa) to $3,940 (The Hartford)—a range of
about $2,270 for the exact same driver.
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 motorist 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.
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