Best-Rated Auto Insurance Companies

The best auto insurance companies in 2024 include:

- USAA

- Auto-Owners

- Nationwide

- State Farm

- Geico

- American Family

- Liberty Mutual

- Progressive

- Country Financial

- Erie Insurance

- Travelers

The best auto insurance company for you will depend on your driving record, state and other individual factors.

Discounts

Driver History Discounts

Insurance companies reward safe drivers with lower premiums and discounts. A "good driver" is generally defined as someone who has not had any accidents or traffic violations in the past three to five years. Geico, for example, offers up to 26% in potential savings if you haven't had any accidents in five years. Defensive driving courses can also help you qualify for this discount.

Affiliation Discounts

Your job, school, or membership in certain organisations may qualify you for a discount. For instance, Geico offers up to 15% off for military personnel, while Farmers, Geico, and Travelers grant special discounts to alumni from certain universities and members of Greek life.

Vehicle-Related Features Discounts

Insurance companies may offer discounts for vehicles with safety features like anti-lock brakes, airbags, and daytime running lights. Additionally, cars that are less than three years old may qualify for a new car discount. Anti-theft devices can also help you save on insurance, with discounts of up to 5% to 25% off your comprehensive coverage.

Personal Traits Discounts

Full-time students who maintain good grades (typically a B average or higher) may qualify for a student discount. Homeowners may also be eligible for a discount, even if they don't buy homeowners insurance from their auto insurer.

Customer Loyalty Discounts

Insurers often reward loyal customers with discounts for renewing their policies or insuring multiple vehicles or policies (e.g., bundling home and auto insurance) with the same company. However, it's important to compare rates from different companies, as loyalty discounts may not always result in the lowest premium.

Policy-Related Discounts

Insurance companies may offer discounts for automatic payments, early shopping (getting a quote before your current policy expires), and paying your policy in full. Going paperless by opting for electronic statements and billing can also help you save.

Customer service

USAA, for example, is only available to military members, veterans, and their families. Despite this, it has been praised for its customer service, with 64% of policyholders surveyed describing themselves as "completely satisfied" with the ease of contacting the company. Auto-Owners, which is available to the general public, is second for customer service, with 61% of customers satisfied with how easy it was to get in touch with customer service and 61% happy with the service they received.

Nationwide was rated third for customer service, with 59% of respondents indicating they were "completely satisfied" with how their claim was resolved. State Farm, which is the largest auto insurer in the country, was rated fourth for customer service.

Erie Insurance, which is only available in 12 states and Washington, D.C., has been praised for its low rates and dedication to customer service. It came first in J.D. Power's 2024 insurance shopping survey and second for claims satisfaction.

American Family Insurance, which is only available in 19 states, has been criticised for its low customer review BBB rating. However, it does offer quotes online or through an agent.

Overall, when it comes to customer service, USAA and Auto-Owners are the top-rated companies.

Claims satisfaction

Erie

Erie is rated as the top auto insurer in Insure.com's Best Car Insurance Companies ranking for 2024, with 4.67 stars out of 5. Erie also ranked as the top choice in six categories, including best for the cheapest rates, best for customer satisfaction, best for ease of service, and most trustworthy. Erie's customers gave high ratings for their satisfaction with the company's claims handling.

Auto-Owners

Auto-Owners is ranked second in Insure.com's survey, with 4.65 stars out of 5. Auto-Owners received high ratings for its affordable monthly premiums and trustworthiness. Customers also rated it as one of the top companies for young drivers and teens. Auto-Owners has received multiple accolades and is ranked highly for financial stability by AM Best.

Travelers

Travelers is ranked third in Insure.com's survey, with 4.62 stars out of 5. The company was rated third-best for auto/home policy bundling, and 90% of customers said they would renew their policies. Travelers also offers a broad range of coverage options and discounts to meet customers' needs.

Nationwide

Nationwide is ranked fourth in Insure.com's survey, with 4.33 stars out of 5. The company offers affordable premiums and various policy options, making it a good choice for one-stop insurance shopping. Nationwide also received positive feedback from customers regarding claims handling, with 59% indicating they were completely satisfied with how their claim was resolved.

State Farm

State Farm is ranked sixth in Insure.com's survey, with 4.27 stars out of 5. State Farm customers report high satisfaction with the company's claims handling and ease of service. State Farm also has a high customer satisfaction rating and is likely to be recommended by its customers to others.

Geico

Geico is ranked seventh in Insure.com's survey, with 4.20 stars out of 5. Geico customers gave high ratings for the company's claims handling and digital experience. Geico also has a high renewal rate of 91% and an AM Best financial strength rating of A++.

Progressive

Progressive is ranked eighth in Insure.com's survey, with 4.14 stars out of 5. Progressive received high marks for its experience and discounts. The company was also rated as one of the top companies for drivers with tickets.

American Family

American Family is ranked ninth in Insure.com's survey, with 4.01 stars out of 5. The company was rated highly for customer satisfaction, policy offerings, and trustworthiness. 91% of American Family's customers said they would recommend the company to others.

Amica

Amica is ranked tenth in Insure.com's survey, with 3.93 stars out of 5. The company was rated highly for its policy offerings, and 92% of customers said they would recommend Amica to others. Amica also has a low level of customer complaints, according to NAIC data.

Coverage options

• Liability Coverage: This includes bodily injury liability, which covers the medical expenses of others resulting from an accident where you are at fault, and property damage liability, which covers damage to someone else's property caused by an accident where you are at fault.
• Medical Payments Coverage: This covers medical and funeral expenses for you, your family members, or passengers, regardless of who is at fault in the accident.
• Personal Injury Protection (PIP): PIP is similar to medical payments coverage but offers additional benefits and is offered in some states.
• Uninsured/Underinsured Motorist Coverage: This covers injuries and property damage caused by a driver with little or no insurance.
• Collision Coverage: This covers damage to your car when it collides with another vehicle or object or is hit by another vehicle.
• Comprehensive Coverage: This covers damage to your car from events such as theft, vandalism, fire, flood, or other covered losses.
• Emergency Road Service: This provides assistance in case of a breakdown while on the road.
• Rental Reimbursement: This covers the cost of a rental car if your vehicle is being repaired due to a covered accident.
• Mechanical Breakdown Insurance: This is an extended warranty that covers repairs to your vehicle during regular use.
• Accident Forgiveness: This prevents your insurance premium from increasing after an accident.
• Gap Insurance: This covers the difference between the actual cash value of your vehicle and the amount you owe on a loan or lease if your car is totaled.
• New Car Replacement: This provides a completely new car to replace your old one in case of a total loss.
• Rideshare Insurance: This covers damages when using your vehicle for ridesharing services.
• Original Parts Replacement: This ensures that only original manufacturer parts are used in repairs.
• Pet Coverage: This covers veterinary bills for your pet if they are injured in an accident while riding in your car.
• Valuables Protection: This covers repair or replacement costs for valuable items damaged in an accident.
• Usage-Based Insurance: This allows you to receive discounts on your premium based on your driving habits, such as safe driving or low mileage.

Cost

The cost of car insurance varies depending on a range of factors, including age, location, vehicle, driving history, and coverage selection.

According to U.S. News, the average cost of car insurance is $2,068 per year, based on their analysis of rates from large car insurance companies. However, it's important to note that car insurance premiums are highly individualized, so the actual cost for an individual may differ significantly from the average.

• Location: Factors such as traffic congestion, crime rates, and accident likelihood can impact insurance rates.
• Age and driving experience: Older and more experienced drivers tend to have lower insurance premiums since insurers believe they are less likely to be involved in accidents.
• Gender: In some states, insurance companies use gender to calculate premiums, with men typically paying higher rates than women due to perceived riskier driving behaviour.
• Vehicle type: The make, model, and year of a car can affect insurance rates, with factors such as safety features and repair costs being taken into consideration.
• Driving record: Maintaining a clean driving record can result in lower insurance premiums, while accidents, traffic violations, and claims can lead to higher rates.
• Coverage selection: Opting for higher-level coverage options, such as comprehensive, collision, medical payments, rental car reimbursement, or gap insurance, will generally result in higher insurance costs.

It's worth noting that there are ways to save on car insurance, such as taking advantage of discounts offered by insurers, shopping around for the best rates, and comparing quotes from multiple insurers.

Frequently asked questions