When it comes to car insurance, drivers need comprehensive protection at an affordable price. And with so many insurance companies to choose from, finding the best car insurance coverage can take time.
The Ascent can help. We’ve researched auto insurance companies, compared prices from insurers nationwide, reviewed customer experiences, and performed in-depth research into dozens of different insurers. With a focus on price, claims handling, and customer service, we’ve chosen the best types of insurance for drivers in different circumstances.
Drivers from all walks of life — from typical motorists to high-risk drivers; teens to veterans — can find recommendations for the best car insurance companies to meet their needs.
The best car insurance companies for 2022
State Farm: Best for bundling coverage
Auto-Owners: Best for bundling policies
Geico: Best for price conscious consumers
Farm Bureau: Best for claims handling
USAA: Best for military members and their families
Bottom Line
State Farm offers multiple opportunities for discounts, including for bundling coverage. But the best savings comes from the different programs it offers for young drivers including Steer Clear as well as a good student discount. With comprehensive coverage options and low premiums, parents and teens can rest assured they’re protected in case of an accident.
Pros
Young adult drivers can save up to 15% on coverage
Discounts for good grades can provide another 25% savings for young drivers
High customer satisfaction rankings
Nationwide agent network
Access to array of insurances under one roof
Cons
A low credit score can increase premiums
Agent quality within its network can be inconsistent
Stand-Out Coverage Options
Steer Clear program offers discounts for policyholders under the age of 25
Optional car rental and travel expense coverage pays not just for a rental vehicle but also travel expenses to the driver’s home or destination if an accident happens 50 or more miles home
Rideshare insurance is available
Read our State Farm review
Auto-Owners
Bottom Line
Auto-Owners insurance offers more coverage than its name implies, but it does shine for its auto coverage, among other policy types including homeowners or renters insurance, life insurance, and business insurance. People can buy all the insurance they need from one company while earning generous premium discounts for bundled coverage. Additional discounts for those who pay in full annually or who make at least 36 months of on-time premium payments can provide even more savings for the budget-conscious buyer.
Pros
Bundled coverage discounts
High customer satisfaction
Roadside assistance coverage available in the U.S. and Canada
Cons
Policies are only available in 26 states
Policy must be purchased through an independent agent
Stand-Out Coverage Options
Gap insurance to pay off a remaining loan or lease balance if the car is totaled
Additional expense coverage, which pays for rental cars, food, lodging, and other incidental expenses in case of an accident far from home
Personal Automobile Plus package which groups 10 popular additional coverage options including cellphone replacement, lock rekeying, and more
Read our Auto-Owners review
Geico
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BEST FOR PRICE CONSCIOUS CONSUMERS
Geico
Rating image, 4.50 out of 5 stars.
4.50 stars
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.Get a Quote
Bottom Line
Geico is one of the most affordable insurers available, and it offers comprehensive auto insurance coverage options at premiums that beat out most competitors. Geico promises to save people 15% or more on car insurance, and assessments of policy premiums shows it lives up to its promise. Insurance is available in all 50 states, and there are additional discounts for military members, good students, federal employees, seniors, and others who belong to certain groups or organizations.
Pros
Nationwide coverage
Affordable premiums
High customer satisfaction
Efficient claims handling process
Great online application and account management experience
Cons
Limited insurance coverage beyond auto insurance
Fewer local agents than competitors
Stand-Out Coverage Options
Mechanical Breakdown Insurance, which provides coverage for repairs and is available for new or leased vehicles that are less than 15 months old and have less than 15,000 miles
Auto Repair Xpress® program can get motorists back on the road faster after an accident as they’ll get priority repairs and streamlined claims processing
Rideshare insurance is available
Read our Geico review
Farm Bureau
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BEST FOR CLAIMS HANDLING
Farm Bureau
Rating image, 4.50 out of 5 stars.
4.50 stars
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Read Review
Bottom Line
With a claims satisfaction rate of more than 90%, Farm Bureau has proven it’ll be there if something goes wrong. Farm Bureau also shines with affordable premiums and multiple ways to save, including by signing up for Driveology and earning reduced premiums by letting the insurer collect data about the motorist’s driving habits. With top-notch claims handling service and replacement cost coverage for newer vehicles, policyholders have the confidence of knowing their claims will be handled swiftly and efficiently with minimal out-of-pocket losses if a crash occurs.
Pros
One of the highest claims satisfaction rates of any insurer
High overall customer satisfaction
Offers an array of discounts (multi-driver and savings for good students)
Cons
Policyholders need to be a member of the bureau in their state
Farm Bureau insurance is not available in all states
Stand-Out Coverage Options
Replacement cost coverage, which is available when a vehicle is either four or five model years old or newer (depending on the state)
Read our Farm Bureau review
USAA
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BEST FOR MILITARY MEMBERS AND THEIR FAMILIES
USAA
Rating image, 4.00 out of 5 stars.
4.00 stars
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.Get a Quote
Bottom Line
USAA offers military members and their families some of the best auto insurance coverage available. Premiums are lower than most competitors, there are plentiful coverage options, and many opportunities to save further with premium discounts. Free accident forgiveness coverage after five years also means premiums won’t go up if a crash happens. USAA is open only to military members, veterans, and their families. For those who qualify, it’s likely their best bet for car insurance.
Pros
Premiums are cheaper than with most competitors
High customer satisfaction ratings
Policy discounts (for good students, for housing a car on a military base, and more)
Cons
No coverage available outside of current and former military members, and their families
Stand-Out Coverage Options
Free accident forgiveness after five years
Rideshare insurance is available
Read our USAA review
What is car insurance?
Car insurance is a type of insurance policy that protects against financial loss. Auto insurance pays the bills if the policyholder causes an accident. Depending what kind of coverage a person buys, it also helps pay for repairs or replacement of their own vehicle.
Here are some of the costs car insurance can cover:
Repairing or replacing the vehicle after a fire, theft, or other disaster
Medical bills if the driver is hurt in an accident
Lost wages if injuries from an accident stop the driver from working
Losses another motorist causes if they are uninsured or underinsured
Damage to other people’s property the policyholder causes with their vehicle
Injuries others experience if the policyholder causes a crash
Rental car expenses if the vehicle is in the shop for repairs
Emergency roadside assistance
Motorists don’t have to buy all of these types of car insurance coverage. But they should buy the best car insurance coverage to protect against losses they can’t afford to pay for out of pocket.
How can I find the best price on car insurance?
To find the best car insurance rates, drivers will need to get personalized quotes from different insurers. That’s because prices can vary dramatically depending on an individual motorist’s circumstances.
Drivers should get multiple auto insurance quotes from at least three to five different insurers, and more if possible. There are many online websites that make it easy to get multiple quotes at once, which simplifies this process.
The fastest way to compare multiple quotes is to provide a vehicle identification number (VIN) so the car insurance company can automatically obtain important details about the vehicle.
Motorists should also be sure to look for discounts, including for safe driving or vehicle safety equipment, as well as for good grades for teens or membership in certain organizations.
How much car insurance do you need?
When selecting an auto insurance policy, drivers need to look for more than just the cheapest car insurance. They need enough coverage to ensure an accident doesn’t cost thousands of dollars, which may require paying a higher monthly premium.
How much car insurance coverage a person needs depends on their situation. However, most states have certain minimum requirements. Drivers may also wish to purchase additional protection beyond the minimum coverage required under their state’s auto insurance rules. Here are some different kinds of auto insurance drivers may need, or want, to buy.
Liability insurance
Liability insurance covers losses that the policyholder causes other people to experience. For example, if a driver caused a crash, injuring the victim and damaging their vehicle, liability coverage would pay for the victim’s injuries and damages.
The majority of states require liability insurance coverage, both to pay for bodily injury and property damage. Under California auto insurance requirements, for example, a motorist must have:
$15,000 in injury liability coverage per person
$30,000 in injury liability coverage per accident
$5,000 in property damage liability coverage
Many people may want to buy more than the minimum required insurance if they want the best car insurance. If drivers don’t and they cause an accident, they could be held personally liable. If a motorist gets into a collision and causes a death, they could be sued for millions of dollars. Having just $15,000 in coverage would do little to protect their assets.
Uninsured/underinsured motorist coverage
This pays for losses another driver should cover but can’t because they don’t have any or enough insurance. Without this, a driver who was involved in an accident with an uninsured motorist or with a driver who had no insurance could be forced to pay for medical bills and vehicle repairs out of pocket.
A few states require uninsured or underinsured motorist coverage. For example, in Connecticut, drivers must have $25,000 per person and $50,000 per accident in insured motorist coverage.
Personal injury protection (PIP)
Personal injury protection, or PIP, pays for the policyholder’s medical bills and lost wages in cases of minor accidents, regardless of who is at fault for the crash.
A total of 15 states require PIP. These are called “no-fault” states. People who live in no-fault states must use their own insurance to pay for losses after minor accidents. That’s true even if another driver were to blame.
New York is an example of a no-fault state. It requires drivers to buy at least $50,000 in PIP coverage when purchasing New York auto insurance.
There are also three “choice” no-fault states. There, motorists can opt to buy PIP coverage or choose a different policy often called a “full-tort” policy. A full-tort policy always allows someone to sue other drivers, even after minor collisions.
Collision insurance
Collision insurance is optional, but it is important coverage many people will want to purchase. Remember, liability insurance won’t cover anything that happens to the policyholder’s own car, even with the best policy. A driver could buy collision insurance to repair or replace their vehicle in the event of a crash.
Comprehensive coverage
Comprehensive coverage is also optional, but many drivers will find they need it. It pays for any losses to a vehicle that don’t result from a car crash. For example, comprehensive coverage pays for windshield damage or to repair or replace a vehicle after a tree falls on it.
Getting car insurance discounts
Most insurers offer car insurance discounts that can help reduce the cost of auto insurance. Commonly available discounts include:
Accident-free driver discounts: These are available to drivers who have gone a certain length of time without becoming involved in a collision.
Discounts for driver monitoring: Motorists who agree to download an app that tracks their driving habits may be able to save.
Defensive driving discounts: Completing a state-approved defensive driving discount can help motorists to save.
Driver education discounts: Young motorists who complete driver’s education can save money.
Driver behavior discounts: Drivers who have a clean driving history can save money, as can motorists who don’t go many miles per year.
Good student discount: Young motorists who get good grades may be able to save. These discounts usually require at least a B average.
Distant student discount: This provides savings on a family’s insurance policy when teen drivers are away at school.
Bundled coverage discount: Motorists who buy multiple types of insurance policies, such as auto and homeowners insurance, will usually qualify for discounted premiums.
Multi-car discounts: This savings is available for people who insure several cars with the same insurance company.
Continuous coverage: Drivers who maintain their insurance year after year may find they can save on premiums.
New-car discounts: These are available to motorists with a late model vehicle (usually one that is less than two or three years old).
Vehicle safety feature discounts: Airbags, anti-lock brakes, anti-theft devices, and other safety features can also result in low premiums.
Driver affiliation discounts: Savings are available from many insurers for motorists who are in the military, who work for certain employers, or who are members of certain groups
Pay-in-full discounts: It’s often possible to save on insurance by paying premiums one time per year, rather than taking advantage of the option to pay quarterly or monthly.
Online-only discounts: Many insurers reduce costs for drivers who purchase their policy online and manage their accounts on the internet.
Paperless statement discounts: Drivers who sign up for paperless statements may reduce car insurance costs.
How are car insurance rates calculated?
The best car insurance companies calculate rates based on the risk of an accident. Factors that insurers consider include:
Which drivers are on the policy: If a motorist is buying a family policy, insurers will consider the driving record of everyone in the household.
Driving record: Insurers consider accident history and risk of speeding tickets.
Number of miles driven: A car that is driven more frequently is more likely to become involved in a crash.
Type of car: Vehicles more prone to accidents or theft will be more expensive to insure.
Vehicle safety features: If a car has features that reduce the risk of theft or the chances of a crash or serious injury, this will result in lower premiums.
Credit score: Drivers who have a stronger credit history will often pay less for insurance.
Best cheap auto insurance
For drivers focused primarily on getting the lowest priced premiums, here are The Ascent’s picks for the best cheap car insurance.
Geico
Nationwide
State Farm
The Hartford
USAA
Erie Auto Insurance
Click here to learn more about our selections for most inexpensive car insurance.
Best insurance for veterans
The Ascent’s picks for the best car insurance for military members include:
USAA
Armed Forces Insurance
Esurance
Geico
Best insurance for teens
The Ascent’s picks for the best car insurance for teens include:
Allstate
Progressive
Liberty Mutual
State Farm
Geico
What to do if you can’t get car insurance
Motorists must not drive without their state’s required minimum insurance. Doing so could lead to criminal penalties as well as devastating financial loss if an accident occurs.
Fortunately, there are coverage options for drivers who can’t buy car insurance from traditional insurers. These include:
State-assigned risk pools: States provide an option of last resort for drivers who can’t get conventional insurance coverage. They can join the state’s assigned risk pool and will be assigned to an insurance carrier that works with the state. This may also have other names, such as a Joint Underwriting Association or shared market.
High-risk insurers: High-risk car insurance could be the best option for motorists turned down by conventional companies. These insurers specifically work with drivers who other insurers won’t cover. While they typically charge high premiums, they can often provide more coverage than a state’s assigned risk pool would.
Car insurance agents can help drivers to enter the assigned risk pool or to find high-risk insurers.
