The best car insurance companies in America
car insurance
Auto insurance companies offer their customers more than just the coverage they want at a reasonable price, they provide a customer-centric experience, from quotes to claim, plus a hassle-free way to manage policies and make payments.
We looked at pricing and discounts, ease of ordering, location transparency, complaint data from the National Association of Insurance Commissioners, and more to determine the best auto insurers.
The best car insurance companies in America
The following companies received 4.5 or 5 stars out of 5 in NerdWallet's analysis of the best car insurance companies in the United States:
Amica 5/5
NJM 5/5
Shelter 5/5
Texas Farm Bureau Insurance 5 /5
Allstate 4.5/5
American Family 4.5 /5
Auto-Owners 4.5 /5
Chubb 4.5/5
Erie 4.5/5
Farmers 4.5 /5
Geico 4.5/5
The Hanover 4.5 /5
Liberty Mutual 4.5/5
Progressive 4.5/5
Safety 4.5/5
State Farm 4.5/5
Travelers 4.5 /5
USAA 4.5/5
Note: *USA is only available to military personnel, veterans, and their families.
** Not all insurance companies are available in all states.
Finding the Best Car Insurance Company for You
Rates and discounts were part of every insurance company's score, but we know cost is the number one factor for many auto insurance shoppers. Because pricing depends on personal factors including your age, location, vehicle history, credit, and gender (in most cases), it's important to consider auto insurance quotes.
If price is the most important factor in your search, car insurance price comparison can help you find the cheapest price. However, your shopping experience will also shed light on the company's customer service standards.
To find the best car insurance companies:
Visit your state insurance commissioner's website to find complaints and other information about companies in your area.
Ask your agent or customer service representative to make sure you get the coverage you need.
Think of smaller auto insurance companies, as they offer far lower rates than big competitors in many locations.
If you have infractions or violations, be sure to look for insurance three and five years after the accident, as the additional fees can drop significantly.
And in case you want to take a look at the rates, go to your state below and compare average rates from the three cheapest car insurance companies in several categories where you live.
A larger company may not necessarily mean a better customer experience. Smaller local insurers such as NJM and Erie are making the cuts, while some of the largest in the US (including Nationwide) are not on our list.
Amica
Rating: 5/5
Amica Insurance sells auto insurance in 49 states. In the 2020 J.D. Power Studies, Amica ranked first for overall satisfaction in the New England region, and eighth among 12 mid-size insurers for insurance shopping satisfaction.
JD Power Amica also ranked second in overall satisfaction of auto claims in 2020.
Ranked third out of 14 Mid-Atlantic insurers in the 2020 US Auto Insurance Satisfaction Study, which measures overall customer satisfaction.
You can get all of NJM's standard auto coverages, along with extras, including new car replacement coverage for cars with less than 15,000 miles of mileage, and pet coverage, which pays vet bills if they are injured in a covered car accident.
You can also add gap insurance to help pay off your car loan if your car is stolen or totaled.
Car insurance companies in America Shelter
Rating: 5/5
Shelter Insurance sells insurance policies in 15 states: Arkansas, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Nevada, Ohio, Oklahoma and Tennessee.
Shelter ranked third among 14 insurers in the Central Region, in JD Power's 2020 US Auto Insurance Satisfaction Study.
If you have to go through the claims process, you may not see an increase in your rates. Customers who choose certain upgrades can earn "advantage points" for good driving, policy renewal, and referring other drivers. These points can be used to maintain your current rate after an accident.
Amica also offers free glass repair, free lock replacement, and free airbag repair.
NJM
Rating: 5/5
Despite its name, New Jersey Manufacturers Insurance is not limited to one state. The company offers auto insurance for drivers in Connecticut, New Jersey and Pennsylvania.
NJM also scores highly in J.D. Power's studies of customer satisfaction:
Ranked #1 in the 2020 Motor Claims Satisfaction Study, the most recent study available.
A new Shelter policy includes new car replacement insurance, which will pay for a new car if your car's mileage is less than 15,000 miles in its first year.
Several discounts are available, including for drivers who are at least 48 years old and who hold another eligible Shelter policy.
Texas Farm Bureau Insurance
Rating: 5/5
Texas Farm Bureau Insurance operates in one state, and purchasing coverage requires membership in the Farm Bureau, which typically costs $35 to $50 a year. This gives you access to the cheapest car insurance in Texas.
Texas Farm Bureau Insurance ranked the Best Auto Insurance Company in Texas in the 2020 JD Power US Auto Insurance Satisfaction Study.
Texas Farm Bureau Insurance gives students a discount on good grades, gives homeowners a discount on collections, and gives anyone a discount to be able to engrave a vehicle identification number (or VIN) on the windshield of a car to deter theft.
Allstate car insurance companies in America
Rating: 5/5
Allstate operates in all 50 states and in Washington, DC. Ranked 4th out of 8 large insurers for customer satisfaction with insurance purchases, and 1st for overall satisfaction in Florida, in the 2020 J.D. Power Studies
It was also ranked No. 8 out of 24 companies with average customer satisfaction scores in 2020.
Allstate offers discounts to drivers in some states who use the company's remote program, a system that tracks how safe driving is. You can get discounts for being a diligent student, driving a new car, and not using paper. Allstate also gives you a deductible if you enroll in the optional deductible reward program, which reduces your out-of-pocket expenses when you have an accident.
American family car insurance companies
Rating: 4.5/5
American Family Insurance operates in 19 states, primarily throughout the Midwest and the Pacific Northwest.
It ranked third among dozens of medium-sized insurance companies in terms of satisfaction with the insurance shopping experience, and ranked first in terms of overall satisfaction in the southwest region, in the 2020 customer satisfaction studies conducted by JD Power.
American Family is ranked No. 17 out of 24 companies in terms of auto insurance claim satisfaction in 2020.
It offers a range of driver discounts in some states, including for loyalty and defensive driving course completion and for out-of-school students.
The company also has driving monitoring apps, allowing good drivers to get discounts.
Auto insurance companies in America Auto-Owners
Rating: 4.5/5
Auto-Owners Insurance is available in 26 states.
This company was ranked fifth among 12 medium-sized insurers for customer satisfaction with insurance shopping, and the first in terms of overall satisfaction in the central region, in J.D. Power's 2020 studies.
Auto-Owners ranked 3rd out of 24 companies in terms of customer claim satisfaction in 2020.
Drivers in some states can get discounts for multiple car insurances, pay premiums on time for 3 years and get a life insurance policy with the company. Auto-Owners also has an app to track your driving. Good drivers can get a discount for avoiding hard brakes and sharp turns, among other safe behaviours.
Chubb
Rating: 4.5/5
Chubb Insurance specializes in high-end coverage for affluent families. The company has offices in 35 states and in Washington, DC.
Chubb is not trying to be the cheapest car insurance company, it is trying to be a car insurance company with a touch of luxury.
Paying off rent comes with a whopping $15,000. The coverage will pay for the cost of repairing your vehicle with original parts made by the manufacturer. And you can even get additional high liability limits of up to $10 million.
Car insurance companies in America
Rating: 4.5/5
Erie Insurance offers auto insurance to buyers in 12 states: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and Wisconsin, plus Washington, DC.
Erie has received strong ratings in J.D. Power's Customer Satisfaction Studies, coming in second out of dozens of midsize auto insurers in the 2020 US Insurance Shopping Study, which measures satisfaction with the auto insurance shopping experience.
It was also ranked second among 14 companies in the Mid-Atlantic region, second among 17 insurers in the Southeast region, and third among 20 companies in the North Central region in the 2020 US Auto Insurance Satisfaction Study. And seventh out of 23 companies Nationwide Auto Claims Satisfaction Study 2020.
When you buy Erie insurance, you can lock in your rates until you change drivers, covered cars, or your home address. Erie offers new car protection for cars less than 24 months old, and rental reimbursement coverage comes standard with comprehensive coverage in most states. Accident tolerance is available after 3 years with the company.
Farmers
Rating: 4.5/5
Farmers Insurance ranks seventh in the list of the largest auto insurance companies in the United States
In the 2020 US Insurance Shopping Study conducted by J.D. Power, Farmers ranked sixth among eight large insurers in terms of customer satisfaction with their insurance shopping experience. It was also ranked 10th out of 24 companies for customer satisfaction with the claims process in 2020.
You can get discounts for grouping multiple policies, for being a diligent student, or for being a member of some professional groups.
Geico
Rating: 4.5/5
NerdWallet rating
Geico is one of the most popular auto insurance companies in the United States, and operates its auto insurance business in all 50 states and Washington DC.
Ranked first among large insurers for insurance shopping experience, and first for overall satisfaction in the North Central, Northwest, and Southwest regions, in JD Power's 2020 Customer Satisfaction Studies.
Ranked 11th out of 24 companies in terms of satisfaction with the claims process in 2020.
Geico stacks discounts, giving drivers in some states a few dollars for everything from clean driving records to good grades. Federal employees also get discounts, as do veterans, military, and reservists.
As for coverage, you get all the basics plus mechanical failure coverage, which helps pay for repairs to newer cars with low mileage.
Rating: 4.5
If you are looking for an auto insurance policy with built-in add-ons, you may want to consider The Hanover. This company offers both home and auto insurance in 27 states and Washington, DC. It has received fewer auto insurance complaints than expected, and has a variety of coverage options.
Hanover offers the usual coverages for auto insurance, but they also have customizable packages that include extra perks. These packages come in two tiers and different price points. Extras include key replacement coverage if you lose your keys, child car seat replacement for up to $300, and coverage that pays for a rental car if you are unable to drive your own car.
Car insurance companies in America Liberty Mutual
Rating: 4.5/5
Liberty Mutual is one of the largest insurance companies in the country, boasting an extensive list of coverages and discounts.
It is the only company that offers both gap insurance and new car replacement coverage among the top 6 new insurers, and it pays the cost of a new car if its mileage in the first year is less than 15,000 miles. The company also provides a unique benefit for teachers, where they can get free auto insurance such as collision and personal property insurance and protection against loss from vandalism in some states.
Liberty Mutual was ranked 5th out of 8 large insurers in terms of customer satisfaction with insurance purchases in the 2020 J.D. Power study. It also ranked 14th out of 24 in terms of customer claims satisfaction in 2020.
Liberty Mutual offers more discounts compared to large insurance companies, other than American Family. For example, drivers can save by paying their bill online, driving a hybrid or electric car, and owning a home.
Progressive
Rating: 4.5/5
Progressive Insurance operates in all 50 states and in Washington DC, so you can get it no matter where you live.
The company was ranked seventh out of eight large insurers in terms of customer satisfaction with the insurance shopping experience, in the JD Power's 2020 US Insurance Shopping Study.
It was also ranked 21st out of 24 companies for customer satisfaction with the claims process in 2020.
Progressive has different features and options depending on your situation. More interesting additions include Pet Injury Protection, which is included with collision coverage, and a deductible "Savings Bank," which lowers the discount amount by $50 per claim-free policy period to at least $0.
Safety
Rating: 4.5/5
Safety insurance is only available in Maine, Massachusetts and New Hampshire, and has very strong customer service.
The company receives fewer consumer complaints to government regulators than would be expected for an insurance company of its size.
You can customize your car insurance with the 'Safety Shield' package which may include comprehensive glass coverage, collision deductible waiver, emergency road travel expenses and other extras, depending on where you live.
In Massachusetts, optional insurance may include accident waiver or coverage for a pet in the car with you. You can also add gap insurance to pay off a loan or lease if your car is beyond repair, in all three states.
Safety offers a variety of ways to save, including discounts for bundling multiple policies, getting policies delivered electronically, or having a student with good scores on the policy.
State Farm
Rating: 4.5/5
As the largest personal auto insurance company in the country, State Farm covers all 50 states and Washington, DC.
This company was ranked third among eight large insurers for customer satisfaction with insurance purchases, and first for overall satisfaction in New York and the Mid-Atlantic region, in J.D. Power's 2020 studies.
It was also ranked sixth out of 24 companies with average customer satisfaction scores in 2020.
State Farm offers driver discounts in some states for having multiple cars, for being good drivers, and for being hard-working students. They have a safe driving app that you can download to your phone or through OnStar. And you can get a discount by following the rules and driving wisely.
Car insurance companies in America Travelers
Rating: 4.5/5
Travelers Insurance operates in 42 states and Washington, DC.
It ranked eighth among eight large insurers in terms of customer satisfaction with insurance purchases, and it was ranked 19th out of 24 in terms of customer satisfaction in 2020, in the JD Power 2020 study.
This company offers potential discounts in some states for using the company's remote program, a system that tracks your driving.
Optional plans offer amnesty for one accident and one minor offense every 36 months, so your prices don't go up after an accident.
USAA
Rating: 4.5/5
Although USAA sells insurance in all 50 states and Washington DC, it is only available to military, veterans, and their families. For these eligible clients, USAA often offers cheap rates.
This company consistently scores highly in JD Power's studies of claims and overall customer satisfaction.
They offer many discounts, including some for military drivers. For example, you can get a discount for keeping your car in a garage on a military base. You can also get more general discounts in some states for taking defensive driving courses, earning good grades, and securing a new car.
Conclusion:
Best Car Insurance Companies Based on Financial Strength, Customer Complaints, and Other Consumer Friendly Factors:
Amica
NJM
Shelter
Texas Farm Bureau Insurance
methodology
Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, website transparency, and affordability. Customer satisfaction surveys are also taken into consideration.
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