Best Car Insurance Companies of May 2022

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Most people probably wouldn’t describe shopping for car insurance as exciting or enjoyable. So it may be tempting to buy a policy from the first insurance you come across.

Car insurance companies all offer fairly similar products. But the cost of auto insurance varies significantly across providers, since each company has its own method for evaluating your personal circumstances, such as the type of car you drive, your age, and your driving history. There are dozens of factors that determine your rate; some are in your control and some are not. That’s why it’s important to do your research and compare your options when choosing the best car insurance company for your needs.

Once you have an idea of ​​what your premium might be from a few different companies, then you can look at the aspects that set certain car insurance companies apart from others, like auto coverage add-ons or customer satisfaction ratings.

To help you get started, we’ve outlined a few of our favorite car insurance companies for a broad range of drivers, whether you’re looking for a cheaper premium, discounts for safe driving, or an insurance company with high satisfaction rates. Accessibility, auto claims satisfaction, price, and the company’s financial health are all key factors we consider in our recommendations.

While no single car insurance company will be the best for every person, we think these are the ones to consider when in the market for car insurance.

Before You Start

To determine our picks for the best car insurance companies, we started with a list of 25 of the largest car insurance companies by premiums collected, based on data from the National Association of Insurance Commissioners. From there, we applied a series of filters to narrow the field across key categories like cost, availability, and customer satisfaction.

For starters, all our top picks must be universally available to all consumers in at least 40 states. Our top picks all offer at least five discount programs, which are a key way in which premiums can become more affordable for people. To gauge affordability, we looked at Bankrate’s average annual premium across these carriers and eliminated any with an average yearly cost of more than $1,500 for full coverage. (Bankrate, like NextAdvisor, is owned by Red Ventures.) Next, we looked at J.D. Power’s 2020 U.S. Auto Insurance Claims Satisfaction Study, and ruling out any companies that scored below 850 on a 1,000-point scale (the industry average was 872).

Finally, we looked at each insurance company’s A.M. Best rating, which evaluates a company’s financial standing. Financial solidity matters for insurance companies because their customers depend on them to pay their claims if they’re in an accident or experience an insured loss. In other words, an insurance company that has the wherewithal to stay in business is more dependable long term. We rule out any company that doesn’t have A.M. Best’s rating of A+ or higher. We also eliminated any companies that are involved in any active fraud investigations.

Our Picks for the Best Car Insurance Companies

• GEICO
• Amica
• Nationwide
• Travelers
• State Farm
• Company Overview

GEICO

GEICO, the second-largest car insurance in the country, insures nearly 30 million vehicles, according to its website. Its availability in all 50 states and Washington, D.C. makes it easily accessible for consumers quality.

A subsidiary of the Berkshire Hathaway conglomerate owned by investor Warren Buffett, it offers all the standard car insurance coverages for some of the lowest rates — plus discounts. Because Geico has a lengthy list of car insurance discounts, there’s a good chance you can find one that applies to you.

Average annual premium for full coverage: $1,405

Why we recommend it: Although it ranks slightly below average for claims satisfaction in the 2020 J.D. Power U.S. Auto Insurance Claims Satisfaction Study, we think GEICO’s vast accessibility and good tech support offer a lot of value. Its robust website and app let you manage your policy, get quotes, and file claims from anywhere. There’s 24/7 customer service available online and through a call center. About 97% of GEICO’s policyholders were satisfied with the service they received, according to a 2020 study by Alan Newman Research, a market research company.

GEICO Coverage Types Available

• Liability coverage
• Collision and comprehensive
• Personal injury protection
• Uninsured and underinsured motorist coverage
• Emergency road service
• Rental compensation
• Mechanical breakdown insurance
• Rideshare insurance

GEICO Discounts

• Vehicle equipment discounts
• Discounts for driving history and habits
• Driver’s education discount
• Customer loyalty discounts
• Good student discount
• Federal employee discount
• Membership and employee discounts
• Military discount

Amica

Amica, founded in 1907, calls itself the nation’s oldest mutual insurance of vehicles. But its long history isn’t the reason why this company is worth a look. It offers a generous menu of auto insurance policies with some attractive built-in perks that are difficult to find at other companies, including no deductible for the repair or replacement of a deployed airbag and $1,000 for bail bonds. It also offers higher-than-usual coverage limits. For example, many auto policies stop at a maximum of $300,000 or $500,000 per accident for liability coverage, but Amica offers over $1 million in additional liability coverage for unexpected and expensive events. You don’t definitely need that much coverage, but having it can work to your benefit if you’re ever caught in a major claim or lawsuit.

Average annual premium for full coverage: $1,378

Why we recommend it: Amica stands out for its claims satisfaction, ranking among the best in the 2020 J.D. Power U.S. Auto Insurance Claims Satisfaction Study. It also has the cheapest average annual premium of insurances on this list. This budget-friendly company doesn’t offer the most unique discounts, but it offers many standard discounts for customers — like savings for bundling policies or for having more than one car on the policy.

Amica Coverage Types Available

• Liability coverage
• Comprehensive and collision coverage
• Personal injury protection and medical payments
• Uninsured and underinsured motorist coverage
• Gap insurance
• Full glass coverage
• Towing and labor coverage
• Rental car and travel expense reimbursement
• Accident forgiveness/good driving rewards coverage