10 Best Car Insurance Companies in 2024 (Top Providers Ranked)

Progressive, USAA, and Farmers are the best car insurance companies providing affordable coverage options starting at $40/month. It's challenging to find the best car insurance companies that fit your needs. We'll rank the top providers, detailing their strengths, unique features, and customer satisfaction.

You’ll also learn how to compare quotes effectively and discover how to buy car insurance while understanding the key factors influencing your premiums.

Company	Rank	Bundling Discount	A.M. Best	Best For	Jump to Pros/Cons
	#1	10%	A+	Competitive Rates	Progressive
	#2	10%	A++	Military Benefits	USAA
	#3	20%	A	Customizable Coverage	Farmers
	#4	13%	A++	Broad Coverage	Travelers
	#5	17%	B	Reliable Service	State Farm
	#6	20%	A+	Financial Stability	Nationwide
	#7	25%	A	Comprehensive Options	Liberty Mutual
	#8	25%	A+	Strong Reputation	Allstate
	#9	25%	A++	Affordable Pricing	Geico
	#10	25%	A	Customer Satisfaction	American Family

Whether you’re a first-time buyer or looking to switch, this resource will empower you to make informed decisions for affordable and reliable coverage. Enter your ZIP code above into our free comparison tool to see how much car insurance costs in your area.

What You Should Know

• Discover the leading companies ranked, highlighting their strengths and customer satisfaction
• Learn how to compare quotes effectively to find the best rates tailored to your needs
• Understand the key factors influencing your car insurance premiums for smarter purchasing decisions

#1 – Progressive: Top Overall Pick

Pros

• Competitive Rates Leader: Offers some of the lowest full coverage rates, ideal for budget-conscious drivers.
• Wide Range of Discounts: In our Progressive car insurance reviewthey have discounts for multi-policy, safe driver, and more.
• Deductible Savings Bank: This program reduces your collision and comprehensive deductibles for every claim-free policy period.

Cons

• Average Customer Satisfaction: While competitive in pricing, customer satisfaction ratings are not as high as some competitors.
• Complex Policy Structure: Progressive's car insurance policies are complex for some customers to navigate and understand.

#2 – USAA: Best for Military Benefits

Pros

• Military-Focused Benefits: USAA's car insurance is tailored for military members, veterans, and their families.
• Vehicle Storage Discount: USAA offers significant premium reductions for stored vehicles. (Learn More: USAA car insurance review)
• Military Installation Benefit: USAA offers discounts for vehicles garaged on military bases.

Cons

• Limited Eligibility: USAA's car insurance is exclusively available to military members, veterans, and their families.
• Limited Add-on Options: Compared to some competitors, USAA offers fewer add-on coverages for car insurance.

#3 – Farmers: Best for Customizable Coverage

Pros

• Customizable Coverage Champion: Farmers excels in offering highly customizable car insurance policies.
• New Car Pledge: As mentioned in our Farmers car insurance review they replace totaled cars under two years old with new cars.
• OEM Parts Guarantee: For newer vehicles, Farmers guarantees the use of original equipment manufacturer parts in repairs.

Cons

• Limited Availability of Some Features: Certain attractive car insurance features, may not be available in all states.
• Complex Quote Process: Farmers' customization options can lead to a longer, more involved quote process.

#4 – Travelers: Best for Broad Coverage

Pros

• Broad Coverage: Travelers unique add-ons like premier new car replacement and accident forgiveness.
• Affinity Group Discounts: Offer special car insurance discounts to their members, leading to significant savings.
• Green Car Discount: Owners of hybrid and electric vehicles can enjoy reduced rates on their car insurance.

Cons

• Limited Rideshare Coverage: Unlike some competitors, Travelers' options for rideshare drivers are limited.
• Less Competitive Short-Term Options: Travelers may not provide the most favorable terms for temporary insurance needs.

#5 – State Farm:Best for Reliable Servicer

Pros

• Reliable Service Leader: State Farm is known for its dependable customer service and extensive agent network.
• Accident Forgiveness Option: Their Accident forgiveness can prevent premium increases. (Read More: State Farm car insurance review)
• Multiple Discount Opportunities: State Farm offers various discounts, including multi-policy, safe driver, and student discounts.

Cons

• Complexity in Claims Process: Some customers have reported challenges in navigating the claims process.
• Potential for Rate Increases: Some customers have experienced significant rate hikes after claims.

#6 – Nationwide: Best for Financial Stability

Pros

• Financial Stability Champion: Nationwide's A+ rating from A.M. Best showcases its strong financial position.
• Gap Insurance Available: Nationwide offers gap insurance, providing valuable protection for car owners with auto loans.
• Pet Injury Coverage: Included in collision coverage, this unique offering provides protection for pets injured in car accidents.

Cons

• Limited Local Agent Availability: As mentioned in our Nationwide car insurance review they have a smaller network of local agents.
• Mixed Customer Service Reviews: Others report difficulties and delays in the claims process for car insurance.

#7 – Liberty Mutual: Best for Comprehensive Options

Pros

• Comprehensive Options: Liberty Mutual excels in offering a wide range of car insurance coverages and add-ons.
• Teacher's Auto Insurance: Specialized car insurance for educators. Learn more in our car insurance review of Liberty Mutual.
• 24-Hour Roadside Assistance: Liberty Mutual offers round-the-clock support for stranded motorists.

Cons

• Complex Policy Structure: The wide range of coverage and add-ons can make Liberty Mutual's car insurance policies complex.
• Strict Underwriting: It may be challenging for some drivers to qualify for their best car insurance rates or coverage options.

#8 – Allstate: Best for Strong Reputation

Pros

• Strong Reputation: Allstate has built a reputation for reliability for diverse driver needs.
• Your Choice Auto Package: Allows policyholders to customize their car insurance. (Read More: Allstate Car Insurance Review)
• Deductible Rewards: Allstate rewards policyholders with a check for every six months of accident-free driving.

Cons

• Complex Discount Structure: While Allstate offers numerous discounts, understanding and qualifying for them can be difficult.
• Limited Online Capabilities: Allstate's digital tools for policy management and claims may not be as advanced.

#9 – Geico: Best for Affordable Pricing

Pros

• Affordable Pricing Champion: Geico offers some of the most competitive car insurance pricing in the industry.
• User-Friendly Mobile App: Geico's mobile app provides easy access to policy information, digital ID cards, and claims filing.
• Mechanical Breakdown Insurance: Provides coverage for repairs beyond the factory warranty for new or nearly new vehicles.

Cons

• No Gap Insurance: Geico doesn't offer gap insurance, which could be a significant drawback for customers financing new vehicles.
• Limited Bundling Options: Geico's range of insurance products is more limited than some competitors.

#10 – American Family: Best for Customer Satisfaction

Pros

• Customer Satisfaction Leader: American Family consistently ranking high in J.D. Power studies for claims satisfaction.
• Teen Safe Driver Program: This innovative program provides tools and incentives for teen drivers to improve their skills.
• Generous Bundling Discount: Offers generous discounts. Learn more in our review of American Family car insurance.

Cons

• Limited Availability: They are not available in all states, which can be frustrating for those who move to unsupported areas.
• Mixed Reviews on Claims Process: Some report frustrations with the car insurance claims process.

Minimum vs. Full Coverage: Top Car Insurance Comparisons

Auto insurance rates vary tremendously based on a wide array of factors. For this reason, it’s difficult to pinpoint the exact rates you can expect to pay if you’re shopping for car insurance.

Here are the monthly rates for car insurance from big companies. They show how much it costs for just the basic coverage and for full coverage.

Insurance Company	Minimum Coverage	Full Coverage
Allstate	$65	$140
American Family	$57	$125
Farmers	$60	$130
Geico	$42	$112
Liberty Mutual	$70	$150
Nationwide	$55	$120
Progressive	$45	$115
State Farm	$47	$117
Travelers	$58	$133
USAA	$40	$110

Our analysis — based on several million insurance quotes from 37 companies across the country — determines that the best way to receive the cheapest car insurance rates is to shop around and field multiple quotes.

To find the most affordable rates, you have to know which companies have a reputation for providing the cheapest rates. Again, insurance rates can vary depending on a lot of factors, such as:

• Location: The area you live in dramatically affects your insurance rates, especially if your neighborhood is in a high-crime zone.
• Driving History: Can your insurance company trust that they won’t pay out a claim every few months? Your driving history will play a role in the rates you receive.
• Credit Score: While you may not be denied outright due to your credit score, it can have an impact on your rates.

Things like where you live, how safely you drive, and your credit score can really affect how much your car insurance cost per month. If you learn about these things, you can make smart choices to help lower your insurance costs.

Best Insurance Company Overall: Progressive

Progressive ranks as the top car insurance company, celebrated for its competitive rates and robust bundling discount of 10%. With an A+ rating from A.M. Best, it demonstrates financial stability and reliability.

Progressive excels in providing a range of coverage options tailored to diverse needs, making it ideal for both basic and comprehensive coverage seekers. Its minimum coverage cost of $45 and average full coverage rate of $115 position it as one of the most affordable options on the market.

What truly sets Progressive apart is its innovative tools, such as the "Name Your Price" tool, which allows customers to find coverage that fits their budget. Additionally, the company also offers a telematics program which you can learn more in our Progressive Snapshot review.

Progressive's customer service is consistently rated highly, ensuring that clients receive support when needed. These factors combine to make Progressive the best overall insurance company, delivering both value and satisfaction.

Best Choice for Good Driver: USAA

USAA consistently ranks as one of the cheapest car insurance providers for good drivers, primarily focusing on military members and their families.

As a member-owned organization, USAA offers lower rates tailored to its clientele. Good drivers can receive a 25% discount for maintaining a clean driving record, significantly higher than the national average.

USAA rewards safe driving with various discounts, such as the SafePilot program, which offers up to 30% off for tracking driving behavior via a mobile app. Overall, USAA’s focus on rewarding good driving makes it a standout choice for affordable car insurance.

Best Choice for Flexible Coverage Options: Farmers

Farmers is best known for its comprehensive coverage and excellent customer service. Offering a wide range of policies, including rideshare coverage and accident forgiveness, Farmers ranks above average in customer satisfaction with a score of 852 out of 1,000, according to J.D. Power.

Farmers excels in customizable coverage with extensive add-ons like accident forgiveness, new car replacement, and coverage for customized equipment. Flexible options such as roadside assistance and rental car reimbursement allow drivers to select precise coverage needs.

With robust policy options, responsive service, and an 85% customer satisfaction rate for claims handling, Farmers is the top choice for personalized insurance solutions.

Factors that Can Influence Your Auto Insurance Rates

When you find yourself in the process of applying for affordable car insurance, it's crucial to remain aware of the various factors that could potentially increase your insurance premiums.

• Age: Younger drivers are considered high-risk and often face higher premiums, while seniors may pay less due to experience.
• Gender: Men generally pay higher premiums as they are statistically more likely to get into accidents than women.
• Marital Status: Married couples may receive discounts, as insurers view them as more responsible drivers.
• Credit Score: A good credit score can lead to lower rates, as it indicates responsibility and reduces the likelihood of claims.
• Driving History & Location: A clean driving record can earn discounts, while a history of claims or living in high-crime areas typically results in higher premiums.

The good news is there are many ways for drivers to save on auto insurance. For example, you could choose a policy with a higher deductible. Doing so could lower your overall premium costs.

You could also consider dropping certain coverages, such as collision or comprehensive coverage if you drive an older vehicle.

The best way to get the cheapest car insurance rates is to compare quotes from a variety of different insurers. By doing so, you’ll be able to find the insurer that offers the best rates for your particular situation.

How Age Affects Car Insurance Rates

Car insurance rates vary by age for a number of reasons. Typically, younger drivers are considered to be a higher risk than older drivers. This is because younger drivers are more likely to get into accidents than older drivers. As such, insurers charge higher premiums for younger drivers in order to offset this risk.

In addition, seniors typically have more years of driving experience than younger drivers. This experience can help to offset the increased risk that comes with age. (Read More: Best Car Insurance Companies that Decrease Rates After You Turn 21)

It's important to point out that other factors can affect your premium despite your age. Your driving history, the type of vehicle you drive, and where you live are just some of the other things that can affect your quotes. In some cases, these factors can have a bigger impact on your premium than your age.

Cheapest Insurance Companies by State

There are a number of reasons that insurance rates can vary from state to state. One reason is the amount of regulation that each state has in place for the insurance industry. States with more regulations tend to have higher insurance rates, because insurers have to comply with those regulations, which can add to their costs.

Another reason that insurance rates can differ from state to state is the amount of competition in the market. States with more insurers competing for business tend to have lower rates, because the companies are trying to attract customers by offering lower prices.

If a state has a high level of risk, such as from natural disasters or crime, then insurers will charge higher rates to cover that risk. (Read More: Best Car Insurance for High-Risk Drivers)

State Farm and Geico offer low rates in much of the United States, but you should compare auto insurance rates by ZIP code to find the most accurate quotes where you live.

Cheapest Insurance Companies by City

Auto insurance rates will vary depending on the city you live in. Again, crime rate, regulations, and competition can affect local insurance rates.

Considerations to Make Before Buying Car Insurance

When you make the decision to buy from an auto insurance company, there are a few considerations to keep in mind. For example, what kind of car insurance are you looking for? What are the minimum car insurance requirements in your state? Let's go over all the important terms you're bound to encounter when shopping for cheap car insurance policies:

• Bodily Injury Liability: This type of liability coverage applies to injuries that you cause to another person while operating your vehicle. It will help pay for their medical bills, lost wages, and other damages.
• Property Damage Liability: This coverage helps pay for damage you cause to someone else's property with your vehicle. That includes damage to their car, but also things like fences, buildings, or mailboxes.
• Collision and Comprehensive Coverage: These are optional types of coverage, but they can help pay to repair or replace your car if it's damaged in an accident. Collision coverage covers damage from accidents, and comprehensive coverage covers damage from things like weather events, theft, or vandalism.
• Personal injury Protection (PIP): This is sometimes called "no-fault" coverage, and it can help pay your medical bills and lost wages if you're injured in a car accident, regardless of who caused the accident.
• Collision and Comprehensive Coverage: These are optional types of coverage, but they can help pay to repair or replace your car if it's damaged in an accident. Collision coverage covers damage from accidents, and comprehensive coverage covers damage from things like weather events, theft, or vandalism.

You should also consider your deductible. This is the amount you have to pay out-of-pocket before your insurance company steps in to pay the rest. A higher deductible means a lower premium, but it also means more risk for you.

How to Find the Cheapest Car Insurance Coverage

If you're wondering what kind of car insurance you really need, there are some things you should consider first, like the insurance company, policy, features, and price.

You can't afford to put your hopes in a single insurance company. Here are some valuable tips to follow to lead you to the most affordable outcome for yourself.

Don't Ignore Local Insurance Companies

You might be familiar with the big, national insurance companies that constantly advertise on television. However, you shouldn't discount the local insurers in your search for affordable rates. In fact, some of these smaller insurers may have much lower rates than their larger counterparts.

Local insurers can offer cheaper rates because they don't have to spend as much money on advertising. They also tend to be more focused on providing excellent customer service, which can save you money in the long run.

Shop Around for the Best Rates

Even if you're loyal to a particular insurance company, it's still important to shop around for the best rates. Insurance companies are always competing for new customers, so they're constantly offering new discounts and deals.

If you don't take the time to shop around, you could be missing out on some great savings. It's also a good idea to compare rates at least once a year to make sure you're still getting the best deal.

Ask About Insurance Discounts

When you're speaking with an insurance agent, be sure to ask about any discounts that might be available. There are often discounts for things like having a clean driving record or being a safe driver. Below is a table detailing various discounts offered by top insurance companies, which can help you save on your premiums.

Some insurers also offer discounts for things like installing anti-theft devices in your vehicle. If you're not sure what discounts are available, don't be afraid to ask. Your agent should be able to give you a list of all the discounts that might apply to you.

Consider Raising Your Deductible

If you're willing to raise your deductible, you could save a significant amount of money on your car insurance rates. Of course, this means that you'll have to pay more out of pocket if you do have an accident.

If you're a safe driver, raising your deductible can be a great way to save money. Just be sure that you have enough money set aside to cover the deductible if you do need to make a claim.

Improve Your Credit Score

One thing that you might not know is that your credit score can affect your car insurance rates. Insurers often use credit scores to determine how likely customers are to file claims.

If you have a good credit score, you're more likely to get a lower rate. So, if you're looking to save money on your car insurance, it's a good idea to work on improving your credit score.

Avoid Comprehensive and Collision Coverage on Older Vehicles

If you have an older vehicle, you might not need to carry comprehensive and collision coverage. These types of coverage can be expensive, and they might not be worth the cost if your car isn't worth very much.

Talk to your agent about whether or not you need these types of coverage for your vehicle. You might be able to save a significant amount of money by dropping them from your policy.

Finding the Best Car Insurance: Top Choices and Local Options

In most states, Progressive and Farmers are among the cheapest car insurance companies to shop with. If you’re in the military, you’ll find the best military car insurance with USAA, known for its exceptional service and discounts for military members. However, don’t overlook local insurance companies.

Small insurers that operate in your area can offer competitive rates because they typically spend less on national advertising. For instance, Progressive excels in providing affordable rates for drivers with varying needs, while Farmers is praised for its customizable coverage options and robust customer service.

If you want to find the cheapest car insurance near you, enter your ZIP code below. You can compare auto insurance quotes from multiple local companies to see which can offer the best price on the policy you need.

More car insurance information

If you’re interested in additional car insurance information, check out our car insurance blog. Additionally, you can use our tool that allows you to compare select car insurance companies side by side to see how they stack up against one another.