Best Auto Insurance Companies in 2024

One of the best auto insurance companies for cheap auto insurance is Geico, with full coverage auto insurance rates at $135 per month. State Farm is the best auto insurance company for high-risk drivers, with average auto insurance rates of $96 per month after a ticket and $102 per month after an accident.

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Melanie Musson

Published Insurance Expert

Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific car insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. She also specializes in sustai...

Published Insurance Expert

Brandon Frady

Licensed Insurance Agent

Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...

Licensed Insurance Agent

UPDATED: Mar 9, 2024

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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

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A Concise Overview

  • The best auto insurance companies by market share are Geico and State Farm
  • Nationwide is the best auto insurance company for usage-based insurance, offering up to 40% off with Nationwide SmartRide
  • The best auto insurance company for you will depend on your age, gender, driving history, and state-mandated coverage requirements

The best auto insurance depends on the kind of driver you are and what coverage you need. The most popular insurance companies are Geico and State Farm, but you might find better coverage with a local insurer. 

Comparing the best auto insurance companies head-to-head will give you an idea of what auto insurance costs near you. Most insurance companies reward safe drivers with cheap auto insurance, while others cater to high-risk drivers who are traditionally charged more for insurance. 

You’ll find the best auto insurance company near you by comparing multiple businesses based on your needs as a driver. This guide compares the best auto insurance companies by rates, driver profile, policy type, customer satisfaction, and more so you can find the right insurer.

Auto Insurance Costs from the Best Auto Insurance Companies

If you’re looking for the best auto insurance companies near you, first find out how much the average driver pays for coverage in your area. 

The national average for full coverage auto insurance is around $200 monthly, but you can save money when buying liability insurance, which costs closer to $80.

Many companies have rates lower than this, especially for safe drivers. You’ll pay more if you have any accidents or claims on your record. Monthly rates will also vary based on the kind of car you drive. 

It’s best to get quotes from at least three local companies to find out which has the cheapest price. The sections below compare the best auto insurance companies in the United States by cost, demographic, and policy options to give you a better idea of where to shop.

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The 10 Best Auto Insurance Companies in the U.S.

The top auto insurance companies by market share are Geico and State Farm. These companies are the most popular and rival one another when it comes to having the lowest rates in most states.

Use the table below to compare rates from the top 10 auto insurance companies in the U.S.

Monthly Minimum vs. Full Coverage Rates for the Top 10 Auto Insurance Companies

Insurance CompanyAverage Minimum Coverage RatesAverage Full Coverage Rates
American Family$49$116
Liberty Mutual$64$177
State Farm$34$91
National Average$45$123

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State Farm and Geico typically have the cheapest insurance, but other popular auto insurers are Nationwide, Progressive, and Travelers. Learn more about the best auto insurance companies below.

Read more: Cheap Auto Insurance Companies

Geico: Best Auto Insurance Rates

Geico is the number one auto insurer in the U.S. because of its historically low rates. It sells the cheapest liability-only and full coverage auto insurance, with monthly rates around $52 and $135, respectively.

Geico consistently offers the cheapest coverage to most demographics, including young drivers. Read our Geico auto insurance review to learn more about the company.

Geico: Best Auto Insurance Company for Teen Drivers

Teens have little experience behind the wheel and end up paying the highest rates. On average, young drivers pay over $500 for monthly coverage. Geico offers insurance at half that price. 

Eighteen-year-olds can buy cheap auto insurance from Geico for around $240 monthly, and 16-year-old drivers pay closer to $300. 

Teen auto insurance rates will vary by region. Use our guide to buy cheap auto insurance for teens, and always compare Geico quotes with the best insurance companies near you to find the lowest price on coverage.

State Farm: Best Auto Insurance Company for High-Risk Drivers

Geico might offer the lowest rates overall, but State Farm won’t increase your rates nearly as much after an accident or speeding ticket. You can learn more about the company in our State Farm auto insurance review.

Average State Farm insurance rates are only $96 after a ticket and closer to $102 per month after your first accident. This is around $30 less than Geico for the same infractions.

Auto insurance rates after a DUI are also cheaper with State Farm (around $112 monthly), although multiple offenses on your record will raise your rates exorbitantly. 

Allstate: Best Auto Insurance Company for Customer Satisfaction

Allstate insurance company has the highest customer satisfaction, despite charging $30 more per month than the national average and nearly twice that of State Farm or Geico. Use our guide to compare Allstate vs. State Farm auto insurance rates.

It ranked in the best insurance companies for claims satisfaction in the J.D. Power Auto Insurance Study and also scores above average in most regions for overall satisfaction.

According to the National Association of Insurance Commissioners (NAIC), Allstate receives half the number of complaints than other top auto insurance companies. However, it has nearly double the complaints regarding home insurance.

Root: Best Auto Insurance Company for Low-Mileage Drivers

Root is a pay-per-mile auto insurance company that determines monthly rates based on driver habits and travel distance. Only drivers who are on the road for less than 10,000 miles a year will have a chance to qualify for coverage, but it’s an excellent choice for those who don’t drive often. 

Root auto insurance is only available in 34 states but plans to expand, most recently entering Florida and Alabama. If Root isn’t available where you live, ask your company about low-mileage auto insurance discounts to get better rates.

Root: Best Auto Insurance With Poor Credit

Many insurance companies assume drivers with poor credit are more likely to file a claim and charge them higher rates. On the other hand, our Root auto insurance review finds that the company will remove credit scores completely from its underwriting by 2025.

If you drive too often to qualify for usage-based insurance, read our guide to find affordable no-credit-check auto insurance from the cheapest companies near you. 

USAA: Best Auto Insurance Company for Military Members

USAA sells insurance policies exclusively to U.S. military members and their families. It offers the lowest auto insurance rates in the country, with the highest customer satisfaction when it comes to claims handling and policy options. 

USAA auto insurance rates are cheaper than those from other companies with military discounts. Read our guides to compare Allstate vs. USAA auto insurance and State Farm vs. USAA auto insurance to see where you can buy cheap coverage.

Progressive: Best Auto Insurance Company for Rideshare Drivers

Delivery drivers who work for companies like Uber, Lyft, and DoorDash need a special kind of rideshare auto insurance. While most rideshare companies offer some liability coverage, drivers are responsible for covering their own injuries and repairs after an accident while at work.

Progressive might not be the cheapest auto insurance company that accepts rideshare drivers, but it offers the most thorough coverage compared to other insurers. (For more information, read our “Cheap Auto Insurance Companies That Accept Rideshare“).

Rideshare coverage applies during all stages of pickup and delivery. Personal policy add-ons also apply, including roadside assistance. Progressive will even pay the difference between your policy deductible and your rideshare insurance deductible. Read our Progressive auto insurance review to learn more.

Farmers: Best Auto Insurance Discounts

Farmers has the longest online list of auto insurance discounts — up to 23%. It offers some of the most common, including multi-car, good student, and bundling discounts, but also more unique savings for long-term policyholders and electric vehicle (EV) drivers.

It’s one of the few companies that offers a LoJack discount, and drivers can save up to 30% with its usage-based insurance program. Read our Farmers Signal review to learn more.

However, while it boasts the most savings online, local companies may offer similar discounts, if not more, than Farmers. Always compare multiple companies and ask for a complete list of auto insurance discounts before buying a policy with any one insurer.

Nationwide: Best Usage-Based Auto Insurance

Like pay-per-mile auto insurance, usage-based insurance (UBI) tracks driving habits to determine rates. But UBI tracks more than just mileage, and you might see your rates go up if you speed, brake too hard, or drive at night. 

Nationwide is our pick for best UBI because it does not raise rates for risky driving behavior or track phone usage while driving. It also has one of the shortest monitoring periods, between four and six months. After this time, drivers can lock in their discount for the life of the policy.

Drivers save the most money with Nationwide SmartRide, which offers the biggest potential discount — 40%. Our Nationwide SmartRide review discusses these savings in detail.

Best Auto Insurance Companies by State

Now that you know which are the best auto insurance companies by policy and driver, start looking at which companies sell coverage where you live. 

Your state plays a big role in how much auto insurance companies charge you. State laws mandate how much insurance you need, and insurers consider an area’s traffic and population size, as well as thefts and accidents when determining rates. 

The table below shows how auto insurance rates vary by state.

Average Monthly Full Coverage Car Insurance Rates by State
StatesAverage Monthly Full Coverage Rates
District of Columbia$138
New Hampshire$91
New Jersey$146
New Mexico$109
New York$144
North Carolina$91
North Dakota$133
Rhode Island$152
South Carolina$122
South Dakota$115
West Virginia$121

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Read more:

Geico, State Farm, and Travelers sell the cheapest insurance on average in most states, but your rates will vary greatly based on ZIP code. Use our free comparison tool below to get more accurate quotes based on which are the best auto insurance companies near you.

Best Auto Insurance Company Ratings

When you’ve found a few affordable local insurers, compare company rates for customer satisfaction and financial strength. You want to know that an insurer can respond to your claims quickly and pay fair settlements. Look at third-party rating companies like A.M. Best, NAIC, and J.D. Power for financial rankings, customer reviews, and complaints.

Scroll through this table for a cursory look at the most common company ratings for the top insurance companies in the country:

Best Auto Insurance Company Ratings

Auto Insurance CompanyA.M. Best RatingNAIC Complaint RatioJ.D. Power Claim Satisfaction Ranking (out of 1,000)
American FamilyA.43874
Liberty MutualA.96870
State FarmA++.69882

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A.M. Best measures a company’s financial strength. Companies with ratings of B or higher are less risky and more likely to pay out on claims. The top ten auto insurance companies in the U.S. all earned an A or higher, with Geico, State Farm, Travelers, and USAA earning the highest rating possible — A++.

The NAIC considers the number of complaints a company receives vs. the number of policyholders, then compares it to other companies of the same size. A score of 1.00 is average. Nationwide, American Family and Allstate receive the least complaints, but Allstate performs better in J.D. Power’s review.

J.D. Power ranks national insurers on customer satisfaction every year. The annual claims satisfaction study sets an industry average based on the companies’ performances that year. Allstate, Farmers, State Farm, American Family, and Geico all have higher-than-average customer satisfaction. 

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Shopping for a New Car Insurance Company

Drivers shop for new insurance for many reasons. The top two reasons for switching auto insurance companies are finding cheaper rates and better customer service after a claim. 

You will want to shop for new auto insurance if:

  • Your credit score went up or down.
  • You add or remove a driver.
  • You want different coverage.
  • You buy a new car.
  • You’re driving less.
  • You move to another state.
  • You recently filed a claim or were in an accident.

More than half of policyholders leave an insurer after finding cheaper quotes online, especially after filing a claim or experiencing a lifestyle change, such as moving or adding a young driver.  You will want to shop around for new insurance every few months to see if your rates are higher than what another company can provide.

Read more: Cheap Auto Insurance Companies That Beat Quotes

Factors Affecting Auto Insurance Rates

Many personal variables impact auto insurance rates. Common factors most companies consider are your:

  • Age and gender
  • Vehicle make and model
  • Driving history
  • Claims history
  • ZIP code
  • Deductibles and policy limits
  • Credit score

The factors with the biggest impact are age and gender, followed by driving history. The table below compares rates across these demographics to showcase how rates vary by company.

Average Monthly Full Coverage Auto Insurance Rates by Driving Record
Insurance CompanyRates with a DUIRates with an AccidentRates with a TicketRates with a Clean Record
Liberty Mutual$325$236$217$177
The Hartford$167$165$136$133
American Family$177$166$131$116
State Farm$124$107$102$91

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Read more: AARP Auto Insurance Program from The Hartford Review: Should you buy in

While they consider the same variables, companies weigh each differently. For example, it’s illegal to use credit scores for insurance in Hawaii, Massachusetts, and California, so you might see different rates than above if you live in these states.

This is why shopping around and comparing multiple companies is important to guarantee that you aren’t overpaying for coverage.

Auto Insurance Requirements

Minimum liability insurance is required in most states. However, if you live in Virginia or New Hampshire, you can opt out of mandatory coverage by proving you have the financial capacity to cover losses.

In general, the minimum auto insurance required by state is:

  • Bodily injury liability insurance: Covers medical bills and funeral costs of anyone you injure or kill in an at-fault accident.
  • Property damage liability insurance: Covers repair and replacement costs of vehicles and other property you damage in an at-fault accident. 

States list the liability limits drivers must carry as three numbers, such as 30/60/25. This refers to the minimum amount of bodily injury coverage per person, per accident, and for property damage, you must have to drive legally.

Types of Auto Insurance Required

Along with liability coverage, states with no-fault insurance will require one or more of the following policies:

  • Uninsured/underinsured motorist (UM/UIM) coverage: Covers your damage and injuries if you’re involved in an accident with an uninsured/underinsured or hit-and-run driver.
  • Personal injury protection (PIP) insurance: Covers medical bills, rehabilitation costs, lost wages, and homecare services if you’re injured in an accident or collision.
  • Medical payments coverage (MedPay): Covers medical bills and hospital stays if you’re injured in an accident or collision. 

State laws will also mandate minimum limits for these policies as well. However, if this coverage isn’t required in your state, it might not be available at all. Check out our expert guide to the most common types of auto insurance to learn more about what auto insurance you need.  

Other Types of Auto Insurance You Need

State insurance laws require some types of coverage, but the terms of your auto loan or lease agreement may require additional insurance, such as:

  • Full coverage auto insurance: Full coverage refers to a policy with collision insurance to cover accidents with other vehicles and comprehensive insurance coverage to pay for other types of damages, like thefts, fires, and weather-related incidents.
  • Gap insurance: This insurance add-on covers the difference you still owe on a lease or auto loan if the vehicle is totaled in an accident or covered event.
  • New car replacement coverage: Some companies will replace your new car with a brand-new or similar model if it’s totaled in an accident or covered event.

You might need to carry some or all of these policies until the lease ends or you pay off your vehicle.

Determining how much auto insurance coverage you need also depends on the kind of car you have and who’s driving it. For example, policyholders with new or teen drivers may want to add roadside assistance and accident forgiveness, and high-risk drivers might need SR-22 insurance to get behind the wheel.

Use this list of optional types of auto insurance to decide what kind of policies you need:

  • Accident forgiveness: Prevents your rates from going up after your first accident. Some companies will automatically apply this add-on if you remain accident-free for at least three years or more.
  • Mechanical breakdown insurance (MBI): Covers repairs not typically covered by traditional insurance, such as engine failures and battery replacements.
  • Non-owner auto insurance: Provides liability coverage for drivers who don’t own a vehicle but borrow or rent cars often.
  • Pay-per-mile auto insurance: Tracks a driver’s monthly mileage through a mobile app, in-car dongle device, or with pictures of the odometer to determine rates.
  • Rental reimbursement: Covers the cost of a rental car or rideshare services while your vehicle is repaired after a covered event.
  • Roadside assistance: Provides towing and locksmith services, gas delivery, tire changes, and more, and some companies will cover up to one hour of on-site repairs.
  • SR-22 insurance: Proof of coverage required for high-risk drivers with revoked or suspended licenses.
  • Usage-based insurance: Tracks drivers’ habits, including speeding, mileage, and time of driving, to determine rates or offer a discount.
  • Vanishing deductibles: Deductible amounts shrink and eventually disappear for every year that you remain accident-free, but limitations vary by company. 

Your rates will fluctuate depending on what type of auto insurance you choose, so compare policies carefully, and don’t hesitate to ask an agent for more information if you’re looking for specific coverage.

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Comparing the Best Auto Insurance Companies

Geico and State Farm are the best auto insurance companies for rates, but you might consider shopping with Farmers if you want more discounts or Nationwide if you want usage-based insurance.

But now that you know which are the best auto insurance companies for most drivers, it’s time to compare them to local insurers near you. Use our free comparison tool below to get auto insurance quotes from the nearest companies.

The best auto insurance companies for most drivers might not be the best for you based on your age, driving record, or location. Our expert tips on how to lower your auto insurance rates are:

  • Always shop around.
  • Ask about discounts.
  • Compare deductibles and policy options.

You’ll get the best auto insurance rates when you compare at least three companies or more. Just enter your ZIP code below to get started.

Frequently Asked Questions

What auto insurance discounts do I need?

The most common auto insurance discounts to ask for are airbags, anti-lock brakes, and any anti-theft devices you have installed on your car. Young drivers can also ask for good student discounts if they are currently enrolled in school and maintain a B average.

What type of insurance is best for my car?

Most states require liability insurance to pay for damages you cause in an at-fault accident. Depending on your state laws, you may also have to carry PIP and UIM insurance as part of the minimum requirements. You will also need to carry full coverage if you’re leasing or financing a vehicle.

Are there any other top auto insurance companies worth considering?

While the companies mentioned earlier are often regarded as top auto insurance providers, there are several other reputable companies worth considering, such as:

  • Nationwide
  • Liberty Mutual
  • Farmers Insurance
  • Travelers
  • American Family Insurance

How can I determine the best auto insurance company near me?

To determine the best auto insurance company for you, consider factors such as coverage options, customer service reputation, financial stability, pricing, discounts offered, and available features like mobile apps or online account management. It’s also helpful to read customer reviews, compare quotes, and seek recommendations from trusted sources.

Can I rely solely on rankings to find the best auto insurance company?

Rankings can provide a helpful starting point, but they should not be the sole determining factor. Personal preferences, coverage needs, and individual circumstances vary, so it’s important to consider multiple factors and gather information specific to your situation before choosing an auto insurance company.

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