Best Auto Insurance: Is It Worth The Hype?

When it comes to auto insurance, there are a lot of options to choose from. The best auto insurance company for you will depend on your driving record, state, and other individual factors. Here are some of the best auto insurance companies in 2024:

- Nationwide

- USAA

- Travelers

- Erie

- Progressive

- Geico

- Westfield

- Auto-Owners

Best for military members and veterans: USAA

USAA is the best auto insurance for military members and veterans. It is available to service members, veterans, and their families in all 50 states and Washington, D.C. The company offers low rates and discounts for those who are deployed or store their vehicle on a base. USAA also stands out for its low average rates across a variety of policies and consistently receives top marks for customer service.

USAA is the only major insurance company that caters exclusively to former and current service members and their families, including:

• Those currently enlisted in the Air Force, Army, Coast Guard, Marines, Navy, National Guard, and Reserves.
• Retired or honorably discharged military members.
• Cadets and midshipmen.
• Family, including widows, widowers, and unremarried former spouses who had USAA insurance while married, as well as children whose parents have or had USAA insurance.

USAA also offers pay-as-you-drive car insurance, which is a good fit for those who don't drive much. In addition, USAA offers a 10% legacy discount if your parents were USAA members.

USAA has the cheapest car insurance for veterans and their families on average, according to NerdWallet's January 2024 analysis. However, rates can vary depending on location, credit history, and car make and model. Therefore, it is always a good idea to compare car insurance rates to find the cheapest company for your specific needs.

Best for affordability: Travelers

Travelers is one of the most enduring and well-known names in insurance. It is one of the largest insurance providers in the nation and is available in most states. If you're looking to work with an agent and buy multiple products from one provider, Travelers might be a good fit.

Travelers offers a broad range of coverage options and discounts to help you customize your car insurance policy. It has decent rates overall for a variety of drivers, including those with speeding tickets or who have caused an accident. It also has many options for additional coverage, making it a good choice to consider when comparison shopping.

Travelers offers full-coverage insurance for $195 per month and liability insurance for $90 per month, on average. While its rates tend to be higher than those of its competitors, you can still find cheap car insurance if you take advantage of discounts, compare rates, and choose the right policy for your unique situation.

Travelers offers several discounts, such as a multi-policy discount, a good student discount for young drivers, and an electric vehicle discount.

Drivers can save up to 30% through Intellidrive, Travelers’ optional telematics program.

Best for bundling: State Farm

State Farm is a great choice for bundling your insurance policies. Bundling your insurance policies can provide you with simplicity and savings. You will have one agent for all your policies, one bill to pay, and you will save money.

State Farm offers a wide range of insurance policies, including auto, home, condo, renters, and life insurance. By bundling your auto and home insurance policies with State Farm, you can save up to $1,273 per year. Similarly, bundling your auto and renters insurance policies can save you up to $704 per year. State Farm also offers a multiple automobile discount, where you can save up to 20% if you have two or more vehicles in your household insured by State Farm.

State Farm is a trusted and reliable insurance company with a strong reputation. They have been in business for over 100 years and are known for their excellent customer service. They can help you find the right coverage options, limits, and deductibles to meet your needs and provide you with a Personal Price Plan™.

In addition to the financial savings, bundling your insurance with State Farm can also simplify your life. You will only have to deal with one agent and one company, and you can easily manage your policies through their online account or mobile app.

Overall, State Farm is an excellent choice for bundling your insurance policies, offering significant savings, convenience, and a wide range of coverage options.

Best for discounts: American Family

American Family Insurance offers a wide range of discounts for its customers. From savings for switching to discounts that reward safe habits, there are many ways to save on your insurance with American Family.

Bundling Discounts

Customers who bundle their auto policy with their home policy can save up to 23% on their auto insurance. Additionally, customers who bundle their auto and renters insurance can save up to 5% on both policies.

Safe Driving Discounts

American Family Insurance offers a variety of discounts that reward good driving habits and safety. These include:

• Safe Driving Discounts: Drivers without accidents, violations, or claims may be eligible for reduced rates.
• Low Mileage Discount: Customers who drive less than 7,500 miles per year can qualify for additional savings.
• Pay-How-You-Drive Safe Driving Program: Enrolling in this program can save you 10% on your insurance.
• Young Driver Discounts: American Family offers discounts for families with teen drivers or young adults purchasing insurance on their own, including good student discounts.

Payment Discounts

American Family Insurance also provides various payment discounts, including:

• Full Pay Discount: Paying your bill in full at the time of purchase can result in a one-time premium-reducing discount.
• Automatic Funds Transfer Discount: Enrolling in automatic payments through your checking or savings account can qualify you for a discount.
• Paperless Billing Discount: Signing up for paperless billing can help you save on monthly billing fees.

Best for high-risk drivers: Progressive

Progressive is one of the best auto insurance companies for high-risk drivers. It was one of the first companies to offer insurance to high-risk drivers in the 1950s and continues to offer competitive rates to drivers with DUIs and severe speeding tickets. Progressive also offers accident forgiveness and a telematics program that monitors your driving in exchange for a lower premium.

Progressive's SR-22 form, which is required for high-risk drivers in most states, is filed automatically as soon as your policy is effective. This is a significant advantage for high-risk drivers, who may struggle to find an insurance company that will cover them.

Progressive's rates for high-risk drivers are below average. Its sample rate for a driver with a DUI is about $600 lower per year than the national average. Progressive also offers a wide selection of coverage options, including uninsured motorist coverage, personal injury protection, and rental car reimbursement.

Progressive has an A+ (Superior) financial strength rating from AM Best, indicating that it has a strong ability to meet its insurance obligations.

In terms of customer satisfaction, Progressive ranks highly in some surveys and about average in others. It has a highly-rated mobile app and offers online quotes. However, its customer service ratings are only average, and its Snapshot telematics program has been known to raise rates for some drivers.

Overall, Progressive is a good choice for high-risk drivers due to its competitive rates, wide range of coverage options, and automatic SR-22 filing.

Frequently asked questions