Orlando Harmon
Auto insurance rates have been on the rise, with premiums increasing by 51% in the last three years. This has been driven by a number of factors, including the rising cost of car repairs and replacements, an increase in accidents, and a higher number of weather-related claims. As a result, many consumers are looking to switch insurance companies to find a better deal.
Some of the best auto insurance companies in 2024, according to NerdWallet, are Travelers, Auto-Owners, USAA, American Family, State Farm, NJM, Amica, and Geico. These companies were rated highly for their financial strength, low number of customer complaints, and generous coverage and discounts.
However, it's important to note that the best auto insurance company for you may depend on your specific needs and circumstances. Factors such as your age, location, vehicle, and driving history can all impact your insurance rates. Additionally, smaller insurance companies may offer more competitive rates and better customer service than larger companies. Therefore, it's always a good idea to shop around and compare quotes from multiple insurers before making a decision.
| Characteristics | Values |
|---|---|
| Best car insurance company overall | Travelers |
| Best for affordability | Geico |
| Best for having few customer complaints | American Family |
| Best for financial strength | Auto-Owners |
| Best for customer satisfaction | State Farm |
| Best for military members | USAA |
What You'll Learn
Auto insurance companies with the best customer satisfaction
State Farm: State Farm is the largest personal auto insurance company in the country. It ranked No. 1 among eight large insurers in J.D. Power's 2023 U.S. Insurance Shopping Study. The same year, it ranked No. 5 out of 24 companies in J.D. Power’s U.S. Auto Claims Satisfaction Study. It also ranked first for overall satisfaction in the Southwest. State Farm offers numerous discounts and extras including travel expense coverage.
USAA: USAA is available only to the military, veterans and their families. It offers a discount of up to 60% if you store your car while you’re deployed and up to 15% for drivers who garage their cars on a base. It has high customer satisfaction ratings and offers a discount for storing your car on a military base.
Erie: Erie has excellent grades from repair specialists over the past four years, which means body shops find its claims handling practices help ensure quality repairs. It has a low level of complaints and offers gap insurance and new car replacement coverage.
Auto-Owners: Auto-Owners has consistently had lower complaints than the industry average over the past three years. It has a strong financial backing and ability to pay insurance claims. It offers gap insurance, accident forgiveness and a diminishing deductible.
American Family: American Family received the lowest number of customer complaints relative to its size among NerdWallet’s top-rated auto insurance companies. It offers a long list of insurance discounts and encourages customers to voice concerns and opinions through multiple customer support channels.
Geico: Geico has remained consistent with low complaint levels over the past three years. It has a 5-star rating from Forbes Advisor for its digital experience. It offers accident forgiveness, non-owner policies and SR-22 filings.
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Auto insurance companies with the best financial strength
- Auto-Owners: Auto-Owners exhibits a strong financial backing and ability to pay insurance claims. It has superior financial strength and is available in 26 states.
- Geico: Geico has strong financial strength and is available across the nation.
- State Farm: State Farm has superior financial strength and is the largest personal auto insurance company in the country.
- USAA: USAA has impressive financial strength ratings from Moody's, AM Best and S&P. It is available in all 50 states.
- Amica: Amica has exceptional claims service and is available in all states except Hawaii.
- Progressive: Progressive is the second-largest auto insurance company in the country and is available in all 50 states.
- Travelers: Travelers has over 150 years of experience and superior financial strength. It is available in 42 states and Washington, D.C.
- Safeco: Safeco has a lower AM Best rating compared to other major carriers but is still a good option. It is available in all states except Alaska, Delaware and Hawaii.
- Nationwide: Nationwide has a low NAIC complaint index and is available in all states except Alaska, Hawaii and Louisiana.
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Auto insurance companies with the best coverage options
- Nationwide: Nationwide has a combination of excellent rates and many helpful add-on coverage offerings. Its car insurance rates are competitive across the board for various driving records and ages. It also has low complaints about its auto insurance.
- USAA: USAA offers low-cost car insurance for motorists with all types of driving records and varying ages. You must be a military member, veteran, or military family member to be eligible for USAA auto insurance.
- Travelers: This company 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.
- Erie: Erie has terrific car insurance rates for drivers who have caused an accident as well as budget-friendly rates for most other driver profiles. It also has a top score for its collision repair claims processes and its low level of complaints.
- Progressive: Progressive offers the cheapest rates for drivers with a DUI among the companies analysed. It also has a low level of complaints.
- Geico: Geico has relatively cheap insurance for drivers with poor credit, whose rates are typically pretty high. It is also competitively priced for many other types of drivers and for parents adding a teen driver to policies.
- Westfield: Westfield has various family discounts, including a discount for teen drivers and adult children obtaining their own policies. It also has a very low level of complaints.
- Auto-Owners: Auto-Owners has plentiful options for new car owners. It also has a low level of complaints against it for auto insurance.
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Auto insurance companies with the best affordability
Auto insurance is a necessity, but it doesn't have to break the bank. Here are some of the auto insurance companies with the best affordability:
Geico
Geico is a popular choice for drivers seeking affordable rates. They offer a wide range of discounts, including good driving, multi-vehicle, and bundling discounts. Their average rate for full coverage is $1,303 per year, making them an excellent option for those looking to save money on their auto insurance.
Travelers
Travelers is another great option for budget-minded drivers. They offer a variety of discounts, such as bundling, hybrid or electric car ownership, and good student discounts. Their rates are nearly half the national average, making them a cost-effective choice.
Dairyland
Dairyland specializes in insuring high-risk drivers and offers competitive rates for those with poor credit. They provide non-owner coverage and SR-22 certificates, as well as limited Mexico coverage on all California policies.
Nationwide
Nationwide offers a pay-per-mile insurance program called SmartMiles, which can save low-mileage drivers an average of $320 per year. They also have competitive rates for full coverage and offer a variety of discounts, including safe driving and multi-policy discounts.
Auto-Owners
Auto-Owners is a great option for those seeking liability-only insurance, as they offer affordable premiums and high customer satisfaction ratings. They provide a range of discounts, including accident forgiveness and useful add-ons like gap insurance.
These companies offer excellent affordability and can help you save money on your auto insurance. Be sure to compare rates and discounts to find the best option for your needs.
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Auto insurance companies with the fewest customer complaints
When it comes to auto insurance companies with the fewest customer complaints, American Family, Erie, and Auto-Owners are among the top-rated companies.
American Family
American Family offers a wide range of coverage, including rideshare and gap insurance, but is not available in all states. It has a long list of insurance discounts and receives fewer consumer complaints than expected for a company of its size.
Erie
Erie Insurance offers terrific car insurance rates for drivers who have caused an accident and budget-friendly rates for most other driver profiles. It has excellent grades from repair specialists over the past four years, meaning body shops find its claims handling practices help ensure quality repairs. Erie's auto insurance complaint level has been below the industry average.
Auto-Owners
Auto-Owners Insurance offers new-vehicle owners exceptional coverage options, including gap insurance and accident forgiveness. It has a low level of complaints against it for auto insurance and has superior financial strength. However, it is only available in 26 states and does not offer online quotes.
Other auto insurance companies with low customer complaints include:
- Nationwide
- USAA
- Travelers
- Progressive
- Geico
- Westfield
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Frequently asked questions
State Farm is the best for customer satisfaction. It ranked No. 1 among eight large insurers in J.D. Power's 2023 U.S. Insurance Shopping Study.
USAA is the best auto insurance company for military members. It offers insurance to active military, veterans, and their families only.
Auto-Owners is the best for financial strength. It exhibits a strong financial backing and ability to pay insurance claims.
American Family received the lowest number of customer complaints relative to its size among NerdWallet’s top-rated auto insurance companies.
Geico is the best for your budget. According to NerdWallet's analysis, Geico's average rate for full-coverage insurance is $1,303 per year, the lowest out of our list of the best car insurance companies.
