Discover the Top-Ranked Car Insurance Companies for 2024: Your Ultimate Guide to Finding the Best Coverage
Discover the Top-Ranked Car Insurance Companies for 2024: Your Ultimate Guide to Finding the Best Coverage
How we found the best auto insurance
Our editorial team considered pricing, discounts, complaint data from the National Association of Insurance Commissioners and more to determine the best car insurance companies. As we continue to evaluate more insurance companies and receive fresh market data, this collection of best auto insurance companies is likely to change.
Here are the categories we evaluated each car insurance company on, plus the weights we placed on each:
Financial strength (30%). The best auto insurers are financially stable. Financial strength ratings indicate an insurer's ability to pay future claims. This category is based on assessments from independent agencies like AM Best, Moody's and Fitch.
Consumer complaints (30%). The best car insurance companies have a low number of customer complaints relative to their size and are able to keep their customers happy. This category is based on complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners.
Ease of use (20%). The best auto insurers provide the information people need to make a purchase without any surprises along the way. This category is based on how easy it is to get quotes, file and track claims, learn about coverage and payment options, plus mobile app ratings.
Affordability (20%). The best auto insurance companies offer multiple ways to get a lower price, and this category is based on how many discounts a company offers.
8 best car insurance companies
Here’s our list of the best auto insurance companies for each category, plus their average rates and what makes them the best.
Best company overall: Travelers
Travelers
Why it’s the best:
Travelers tops our list as the company with the best overall score in 2024 out of the insurers we ranked. Because our auto insurance ratings reward companies for customer-first features and practices, this category represents an overall solid choice for drivers seeking a well-rounded insurance company.
You can get all the standard auto coverage options from Travelers, along with extras like new car replacement coverage and gap insurance, both of which are useful if you drive a relatively new vehicle. Travelers also offers a host of car insurance discounts.
| Driving record | Full coverage | Minimum coverage |
|---|---|---|
Good driver | $1,681 | $520 |
Driver with an at-fault accident | $2,376 | $686 |
Driver with a recent DUI | $2,950 | $884 |
Driver with a recent speeding ticket | $2,227 | $660 |
Best for your budget: NJM
NJM
Why it’s the best:
New Jersey Manufacturers Insurance, or NJM, is the best car insurance company when it comes to your wallet. According to our analysis, NJM’s average rate for full coverage insurance is $119 per month, the lowest out of our list of the best car insurance companies.
However, NJM auto insurance is only available in Connecticut, Maryland, New Jersey, Ohio and Pennsylvania. Drivers in other states may be able to find low rates with Auto-Owners or Travelers. These companies were runners-up in having the cheapest full coverage insurance among our list of best insurance companies.
NJM average annual rates for a 35-year-old driver with good credit
| Driving record | Full coverage | Minimum coverage |
|---|---|---|
Good driver | $1,424 | $615 |
Driver with an at-fault accident | $1,545 | $672 |
Driver with a recent DUI | $1,870 | $824 |
Driver with a recent speeding ticket | $1,870 | $824 |
Best for accident forgiveness: Geico
Geico
Why it’s the best:
Geico offers two potential ways to get accident forgiveness so your rates won’t increase and you won’t lose your good driver discount after a crash. You can earn it for free by remaining an accident-free Geico customer for five years, or you can pay for it. Accident forgiveness can be used for any eligible driver on your policy, but it isn’t available in California, Connecticut and Massachusetts.
Geico average annual rates for a 35-year-old driver with good credit
| Driving record | Full coverage | Minimum coverage |
|---|---|---|
Good driver | $1,846 | $491 |
Driver with an at-fault accident | $3,112 | $825 |
Driver with a recent DUI | $4,420 | $1,113 |
Driver with a recent speeding ticket | $2,341 | $619 |
Best for having few customer complaints: American Family
American Family
Why it’s the best:
American Family received far fewer customer complaints for auto insurance than similar-size companies and received the fewest complaints out of the insurers on our 2024 best companies list. The company spotlights its Facebook customer reviews on its main website. It also encourages customers to voice concerns and opinions through multiple customer support channels, including over the phone, email and site feedback.
American Family average annual rates for a 35-year-old driver with good credit
| Driving record | Full coverage | Minimum coverage |
|---|---|---|
Good driver | $1,791 | $687 |
Driver with an at-fault accident | $2,642 | $1,018 |
Driver with a recent DUI | $2,433 | $889 |
Driver with a recent speeding ticket | $2,167 | $832 |
Best for financial strength: Auto-Owners
Auto-Owners
Why it’s the best:
A company’s financial strength is one of the most important factors to consider when choosing an insurer, since it indicates a company’s ability to pay a claim. For this category, We leaned on AM Best’s financial strength rating, which measures an insurer’s ability to meet its policy and contract commitments. Auto-Owners exhibits a strong financial backing and ability to pay insurance claims.
Geico, State Farm, Travelers and USAA tied Auto-Owners for financial strength.
Auto-Owners average annual rates for a 35-year-old driver with good credit
| Driving record | Full coverage | Minimum coverage |
|---|---|---|
Good driver | $1,477 | $374 |
Driver with an at-fault accident | $2,018 | $519 |
Driver with a recent DUI | $3,014 | $867 |
Driver with a recent speeding ticket | $1,968 | $524 |
Best for discounts: Amica
Amica
Why it’s the best:
If you’re looking to save on your auto policy, Amica may be worth a look. The company offers more discounts than most other insurers, including discounts for owning a home, insuring more than one vehicle, taking a defensive driving course and setting up automatic payments. Just keep in mind that the company with the most discounts will not necessarily be the cheapest.
American Family tied with Amica for the number of discounts drivers may qualify for.
Amica average annual rates for a 35-year-old driver with good credit
Best for customer satisfaction: State Farm
State Farm
Why it’s the best:
The largest personal auto insurance company in the country, State Farm ranked No. 1 among eight large insurers in J.D. Power's 2023 U.S. Insurance Shopping Study
State Farm average annual rates for a 35-year-old driver with good credit
| Driving record | Full coverage | Minimum coverage |
|---|---|---|
Good driver | $1,976 | $471 |
Driver with an at-fault accident | $2,488 | $615 |
Driver with a recent DUI | $2,940 | $800 |
Driver with a recent speeding ticket | $2,237 | $553 |
Best for military members: USAA
USAA
Why it’s the best:
USAA is the top auto insurance company for military members. Only available to active military, veterans and their families, the company has relatively low insurance rates and provides other financial solutions for qualifying customers, such as banking and investment products. USAA has high customer satisfaction ratings and offers a discount for storing your car on a military base.
USAA average annual rates for a 35-year-old driver with good credit
| Driving record | Full coverage | Minimum coverage |
|---|---|---|
Good driver | $1,432 | $362 |
Driver with an at-fault accident | $2,041 | $533 |
Driver with a recent DUI | $2,621 | $670 |
Driver with a recent speeding ticket | $1,699 | $432 |
How to find the best car insurance for you
While our best car insurance company winners can serve as a jumping off point in your quest for the best policy, everyone’s needs and circumstances are different.
Here are some tips to find the best insurance company that’s right for you:
Shop around. Price is a key consideration for many people, especially with car insurance rates on the rise. Pricing is based on many factors like your age, location, vehicle and driving history. Because every insurance company weighs these factors differently, it’s best to shop around for car insurance quotes to find the cheapest option.
Check for complaints. Most people don’t deal with their insurance company until they need to file a claim.
Check your coverage. Ask your agent or a customer service representative if you’re getting the coverage you need so that you’re not under or over-insured.
Consider smaller insurance companies. Small car insurance companies offer prices well below those of large competitors in many locations, and can often provide a better customer experience, too.
Shop strategically. If you’ve gotten a speeding ticket, DUI or other violation recently, be sure to shop three to five years after the incident, when surcharges can drop significantly.
Different types of car insurance
As you shop for the best car insurance, familiarize yourself with the different car insurance coverage types so you’ll know what to include in your coverage.
Use our tool below for a breakdown of common insurance coverage types and what each pays for:
Should you get minimum or full coverage car insurance?
If all you care about is getting the lowest price, consider minimum coverage car insurance. Minimum coverage is the least amount of insurance needed to drive legally in your state.
But it's typically not enough to cover damage from a major accident, and you could end up paying out of pocket for any damage you cause once your insurance pays out. Minimum coverage also won’t pay for damage you cause to your own car.
For greater financial protection, go with full coverage insurance. There’s no standard definition of full coverage car insurance, but it typically includes your state’s minimum requirements, plus comprehensive and collision insurance. Full coverage costs more than minimum coverage, but the peace of mind may be worth the extra money. If you’re financing or leasing your car, you probably already have full coverage insurance.
Why is car insurance so expensive?
You’ve probably noticed car insurance keeps getting more and more expensive. The cost of car insurance increased 22% in March 2024 compared to the year prior, according to data from the U.S. Bureau of Labor Statistics
.
While this rise in prices is largely due to inflation and other economic factors, your own rates will fluctuate based on many things, including:
The insurance company you choose. The insurer you go with is often the single most important factor in determining the price you pay for car insurance. Every insurer has their own method for determining rates, so don’t be surprised if you get different car insurance quotes from different companies.
Your age. Insurers charge higher prices for teenagers and drivers in their 20s. That’s because young drivers tend to be less experienced behind the wheel, and therefore more likely to get in an accident. Rates get lower once you hit your thirties, and generally creep back up when you reach your 70s.
Where you live. If you live in an area that has lots of extreme weather, high crime rates or busy roadways, you can expect to pay more for car insurance than if you live in a quiet, temperate part of the country.
Your driving history. Having an at-fault accident or driving violation on record — like a speeding ticket or DUI — can wreak havoc on your car insurance premiums. Sometimes, even an accident that wasn’t your fault can cause rates to go up. Depending on the incident, you may find your rates to go back to normal after two to five years.
The car you drive. Typically, the more expensive your car, the more expensive your car insurance. That’s because your insurance company will have to shell out more money to fix your car if you wreck it. Insurers also consider how likely your car is to be stolen or get into an accident.
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