The best car insurance companies protect your family and your assets at a price you can afford. But not all car insurance companies offer the same standout features and discounts.
When shopping for auto insurance, consumers should compare the best providers based on their rates, their customer service rankings, their customer reviews, and their overall claims process. Using these factors, we compared the best car insurance companies of 2022 and used our analysis to write the guide below.
Read on to learn about the most reputable providers in this space, what they have to offer, and their pros and cons.
Best Car Insurance Companies of 2022
- Best Overall: State Farm
- Best for Accident Forgiveness: Travelers
- Best for Multiple Policies: Progressive
- Best Agent Experience: Farmers
- Best for Discounts: Allstate
- Best for Rideshare Drivers: GEICO
- Best Add-On Features: Erie Insurance
- Best for Customizable Policies: Liberty Mutual
- Best Digital Experience: Esurance
- Best Option for Military: USAA
Best Overall: State Farm
Why We Chose It: We chose State Farm as the best car insurance company nationwide due to their strong ratings for financial strength, their customer service rankings, and their seamless online claims process.
Pros:
- Get a quote and manage claims online
- State Farm mobile app available
- Rideshare coverage available in most states
- Drive Safe and Steer Clear discount programs available in most states
- Multiple discount programs
- Above average rating for auto claims satisfaction (J.D. Power 2020)
Cons:
- Rideshare coverage not available in every state
State Farm was originally founded in 1922, and they have grown since then to become a major provider of auto insurance, homeowners insurance, banking products, and investments. They also boast an A++ rating for financial strength from A.M. Best, which is the highest rating possible. Further, State Farm scored well above average in 6 of the eleven regions studied in J.D. Power's 2020 U.S. Auto Insurance Satisfaction Study.
In terms of their auto insurance offerings, State Farm is known for their many discounts, including their Drive Safe & Save program and their Steer Clear program. Discounts are also available for teen drivers or bundling multiple policies.
State Farm also goes out of its way to make the auto insurance shopping experience a breeze, as well as claims. They do this by offering a robust online platform and their own mobile app, although you can also reach out to your personal agent for help.
Who They're Best For: State Farm is a good option for consumers who want highly rated auto insurance from a reputable provider, as well as those who can qualify for multiple policy discounts.
Visit State Farm’s website to learn more.
Best for Accident Forgiveness: Travelers
Why We Chose It: Travelers offers two different accident forgiveness programs for their auto insurance customers. These programs are offered when you purchase one of their Responsible Driver plans.
Pros:
- Multiple accident forgiveness plans available
- Discounts available for hybrid and electric vehicles, teen drivers, multiple policies, and more
- Easy online quote process and digital process for claims
- Strong financial ratings
Cons:
- Rideshare coverage only available in two states (Colorado and Illinois)
- Below average ratings for customer satisfaction nationwide (J.D. Power, 2020)
Travelers was originally founded in 1864, so they have a long history of offering various types of insurance and financial products. In terms of its financial strength, Travelers currently boasts an A+ rating from A.M. Best.
While customer service satisfaction may not be as good as some other companies, Travelers does have some compelling advantages, including multiple accident forgiveness programs. Both of their Responsible Driver auto insurance plans will let you skip your deductible (once requirements are met) if you're at fault for an accident.
Travelers also offers myriad discounts that can help you save money on auto insurance, ranging from teen driver discounts to discounts for bundling multiple policies or having a hybrid or electric vehicle. Their IntelliDrive Program even lets you score discounted rates when you install a device in your car that monitors your driving habits.
Who They're Best For: Travelers is best for people who want to use accident forgiveness programs that let them skip their deductible after requirements are met.
Visit Travelers website to learn more.
Best for Multiple Policies: Progressive
Why We Chose It: Progressive offers some of the biggest discounts for signing up and bundling multiple policies. In fact, they say their average auto insurance customer saves $700 when they make the switch.
Pros:
- Superior discounts for bundling multiple policies
- Compare prices among multiple providers in one place
- SnapShot program offers personalized rates
Cons:
- Some discounts are not available in every state
- Below average ratings for customer satisfaction in most regions (J.D. Power, 2020)
Progressive was originally founded as an auto insurance company in 1937, and they have not strayed far from their roots since then. Currently, the company offers auto insurance as well as products like homeowners insurance, renter's insurance, motorcycle insurance, and life insurance. While Progressive did not receive the best rankings for customer satisfaction in J.D. Power's 2020 U.S. Auto Insurance Satisfaction Study, they do have an A+ rating for financial strength from A.M. Best.
We like the sweeping discounts Progressive offers for people who bundle their policies. They also offer a range of discounts that can help you save even more, including loyalty discounts, safe driver discounts, good student discounts, homeowner discounts, and more.
Interestingly, Progressive lets you apply for a quote and compare pricing among multiple insurance providers in one place. Their Name Your Price tool also lets you enter the amount you want to pay and get matched with a policy that suits your needs.
Who They're Best For: Progressive is best for consumers who want to save big when they bundle policies and sign up for discount programs.
Visit Progressive's website to learn more.
Best Agent Experience: Farmers
Why We Chose It: Farmers Insurance earned the top rating from Kiplingers for their auto and homeowners insurance customer service. While you can get a free quote online, Farmers makes it possible to work with an agent who understands your insurance needs and works on your behalf.
Pros:
- Work with a local agent for a personalized experience
- Easy online quote process
- Rideshare coverage available
- Multiple discounts available for safe driving, having multiple policies, and more
- Accident forgiveness available
- Above average ratings for claims satisfaction (J.D. Power, 2020)
Cons:
- Not available in every state
Farmers Insurance has been around since 1928, and they have become a major provider of auto insurance as well as homeowners insurance, motorcycle insurance, business insurance, umbrella insurance, and other financial products. The company currently reports an A rating for financial strength from A.M. Best, and they also claimed the top rating from Kiplingers for their auto and homeowners insurance customer service prowess.
We like the fact that Farmers focuses on its agent experience, as well as the personalized customer service you can only get when you work with someone in person. However, you can still get a free quote online, and multiple discounts are available for policy bundling, being a safe driver, and more. You can even access accident forgiveness once every three years, which lets you skip your deductible and avoid rising premiums when you're at fault in an accident.
Who They're Best For: Farmers Insurance is an ideal option for people who want to work with a local agent who understands their insurance needs and goals.
Visit Farmers’s website to learn more.
Best for Discounts: Allstate
Why We Chose It: Allstate is a highly rated insurance company that also offers more discounts than many competitors on their auto policies.
Pros:
- Safe Driving bonus available
- Multiple discounts for being a good driver, having special equipment, being a responsible payer and more
- Excellent digital quoting and claims process
- Allstate mobile app available
- Save more with Allstate DriveWise program
- Above average ratings for claims satisfaction (J.D. Power, 2020)
Cons:
- Below average ratings for customer satisfaction in most regions (J.D. Power, 2020)
Founded in 1931, Allstate has been offering quality insurance products like auto insurance and homeowners insurance for almost 100 years. The company currently boasts an A+ rating for financial strength from A.M. Best, although their customer service satisfaction scores fell short across most regions in J.D. Power's 2020 U.S. Auto Insurance Satisfaction Study.
We chose Allstate for our ranking due to the many chances they give you to save on premiums, from their dynamic Allstate DriveWise program to discounts for safe driving, bundling multiple policies, paying on time or being a good student. Allstate even offers discounts for having an anti-theft device or anti-lock brakes.
With Allstate, you can even qualify for a Safe Driving bonus when you go six months without an accident.
Who They're Best For: Consider Allstate if you want to access as many auto insurance discounts as you possibly can.
Visit Allstate’s website to learn more.
Best for Rideshare Drivers: GEICO
Why We Chose It: GEICO offers a one-policy solution for drivers who work for Uber, Lyft or both. Their policies for rideshare drivers replace your personal auto insurance policy, and coverage remains in effect whether your app is on or off.
Pros:
- Rideshare coverage available for Uber and Lyft
- Easy online quote process and claims
- Second largest auto insurer in the U.S.
- Above average ratings for customer satisfaction in every region (J.D. Power 2020)
Cons:
- No gap insurance available
While the GEICO gecko has only been featured in their popular commercials since 2000, the company itself has been in operation since 1936. GEICO has become incredibly reputable since then, even boasting the best possible rating of A++ for its financial strength from A.M. Best.
While GEICO could be the best auto insurance provider for any driver, their rideshare policies truly stand out. GEICO does not offer a rideshare add-on, but instead, they offer rideshare policies that replace your personal insurance and provide quality coverage when you are driving for Uber or Lyft or just for yourself.
GEICO also offers a range of discounts that can help you save, whether you have specific equipment on your car or you're a good student, a good driver, or a Federal employee. You can also get discounts for bundling multiple auto insurance policies or different types of insurance.
Who They're Best For: GEICO offers specific coverage for Uber and Lyft drivers that protects them every time they get behind the wheel.
Visit GEICO’s website to learn more.
Best Add-On Features: Erie Insurance
Why We Chose It: Erie offers an array of ways to customize your policy with extra coverage available for pets, personal items, auto glass repair, and more.
Pros:
- Multiple ways to customize your policy with add-ons
- Rate Lock feature lets you avoid rate increases
- Erie Auto Plus coverage offers added benefits
- Highly rated customer service
- Above average ratings for claims satisfaction (J.D. Power, 2020)
Cons:
- Only available in 12 states ( and Washington D.C.
Although Erie Insurance auto coverage is not available nationwide, this company is worth checking out if you live in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin or Washington D.C. Not only has this provider been around since 1925, but they have an A+ rating for financial strength from A.M. Best. Despite their smaller footprint, Erie is also the 13th largest auto insurer in the United States.
We chose them for our ranking based on their excellent add-on coverage, which you can use to customize your policy. For example, their Erie Auto Plus coverage option comes with a diminishing deductible, increased coverage limits, reimbursement for transportation if your vehicle is totaled, a death benefit, and even a waived deductible in some cases.
Who They're Best For: Erie Insurance is worth considering if you live in a coverage area and you want the chance to customize your coverage.
Visit Erie’s website to learn more.
Best for Customizable Policies: Liberty Mutual
Why We Chose It: Liberty Mutual lets customers customize their policies so they're only paying for the coverage they need.
Pros:
- Easy online quote process and claims
- Customize your coverage to suit your needs and budget
- Multiple discounts available for safe driving, good grades, and more
Cons:
- Below average ratings for customer service satisfaction in most regions (J.D. Power, 2020)
Customers have relied on Liberty Mutual for their insurance needs since the company was founded in 1912, and for good reason. Not only do they offer a range of insurance products, but their "only pay for what you need" philosophy makes them a good option for people who want to customize their coverage. Liberty Mutual also has an A rating for financial strength from A.M. Best, which is the third highest possible rating available.
Liberty Mutual offers an easy quote process that lets you compare coverage options and pricing online. You can tailor your coverage options, deductibles and more to your needs and budget, and multiple discounts are available. For example, you can score discounts for going paperless, carrying multiple policies, having advanced safety features on your car, and more.
Who They're Best For: Liberty Mutual is best for consumers who only want to pay for the exact coverage they need and nothing more.
Visit Liberty Mutual’s website to learn more.
Best Digital Experience: Esurance
Why We Chose It: Esurance, which is owned by Allstate, offers a digital auto insurance experience with easy online quotes and online claims.
Pros:
- Seamless online experience for quotes and claims
- Owned by highly-rated Allstate Insurance
- Mobile app lets you monitor your policy and claims on the go
- Many discounts available for safe drivers, multiple policies, and more
Cons:
- Allstate plans to phase out the Esurance brand in the near future
- Not available in Alaska, Delaware, Hawaii, Montana, New Hampshire, Vermont, and Wyoming
Esurance was only founded in 1999, but it is owned by Allstate Insurance. This means the company relies on the Allstate name and financial stability, which is proven with an A+ rating for financial strength from A.M. Best.
Esurance focuses on offering a digital experience for existing and potential customers, including a robust website and its own mobile app. You can customize your policy with an array of add-ons, and discounts are available for safe drivers, multiple policies, and more. Esurance claims people who switch save an average of $462.
Who They're Best For: Esurance is best for people who want a digital insurance experience with the backing of a major insurance carrier.
Visit Esurance’s website to learn more
Best Option for Military: USAA
Why We Chose It: USAA offers superior customer service and excellent auto insurance coverage for military members, veterans, and their eligible family members.
Pros:
- Multiple discounts available
- Payment flexibility
- Superior ratings for customer satisfaction in every region (J.D. Power, 2020)
Cons:
- Must be a military member, a veteran or an eligible family member to join USAA
Although USAA auto insurance is only available to people with military affiliation who join USAA, this provider has been offering auto coverage since 1922. Their customer service satisfaction ratings also blow all other auto insurance companies out of the water. In J.D. Power's 2020 U.S. Auto Insurance Satisfaction Study, USAA earned more points than any other company in every region profiled. USAA also has the highest possible rating of A++ from A.M. Best for its financial strength.
Those who are eligible can use USAA to shop for the best auto insurance coverage money can buy, and many walk away with average savings of $725 when they make the switch. Plenty of discounts are also offered for safe driving, advanced safety features, and customer loyalty. Their payment flexibility can even let you begin your policy without an upfront payment.
Who They're Best For: USAA is best for eligible military members, veterans, and their families who want highly-rated auto insurance coverage for the best possible price.
Visit USAA’s website to learn more
How We Chose the Best Auto Insurance Companies
To find the best auto insurance companies of 2022, we compared customer service satisfaction rankings from J.D. Power as well as first hand customer reviews. We also looked at financial strength ratings from A.M. Best and company longevity in the auto insurance space. Ultimately, we chose the 10 companies for our ranking based on their overall score for customer service, customization, reviews, and financial stability.
Frequently Asked Questions (FAQ)
Who is the best auto insurance company?
The best auto insurance company depends on your needs and goals, as well as the type of coverage you want. We suggest shopping around among the best car insurance companies to compare coverage options, pricing, deductibles and more.
Which insurance company is best at paying claims?
Accordion to J.D. Power NJM Insurance Co. ranks highest in overall customer satisfaction when comparing auto insurance companies in terms of their claims satisfaction. This independent ranking gave the top five spots to NJM Insurance Co., Amica Mutual, Auto-Owners Insurance, The Hartford, and MetLife.
What discounts should I look for?
To save money on auto insurance, look for discounts for safe driving, good grades, having special safety equipment, or bundling multiple policies. Other discounts may be available, so make sure to check available discounts with each provider you're considering.
What types of car insurance are required?
Liability coverage is required in most U.S. states, so make sure to check for minimum coverage requirements in your state of residence. Most basic policies include the following types of car insurance coverage: bodily injury liability, personal injury protection, property damage liability, collision, comprehensive coverage, and uninsured/underinsured motorist coverage.
How do I choose the best car insurance?
Start by comparing the auto insurance providers on this page, then use our free quote tool to compare pricing across at least three different providers. While you'll want affordable monthly premiums first and foremost, you should also compare auto insurance companies based on their financial stability, claims process, and availability of agents or online tools.
How much should I be paying for car insurance?
The cost of auto insurance varies widely based on your age, how often you drive, where you live, the type of car you have, and plenty of other factors. Make sure to shop around and compare auto insurance rates so you don't overpay for your policy.
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About Holly Johnson
Holly D. Johnson is a nationally recognized expert and award-winning insurance writer who covers life insurance, health insurance, and various other insurance-related topics for corporations and well-known magazines with millions of readers. Johnson also covers personal finance, credit, credit cards, and loyalty programs for a variety of publications including CNN Underscored, Bankrate, CreditCards.com and Forbes Advisor.
The author is also the founder of Club Thrifty and the co-author of "Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love." She and her husband Greg live in Central Indiana with their two daughters where they enjoy a debt-free lifestyle and travel up to 20 weeks of the year.