By some estimates, there are over 500 companies selling car insurance in the U.S. However, the majority of car insurance is sold by a few big players. In fact, the top eight companies make up almost 73% of the market. While it’s always a good idea to check with smaller providers, it’s also worth considering the big brands. Here are our reviews of the eight largest car insurance companies in the U.S. in 2024.
Best Car Insurance Companies Compared 2024
Note: Monthly premium data is from recent studies by USNews.com and WalletHub.
Our Recommendations for the Best Car Insurance Company
Best for Cheap Insurance (non-military): Liberty Mutual
Outside of USAA, which is available only to select consumers, Liberty Mutual offers the cheapest car insurance in our review. The company also offers a variety of discounts to help lower the cost even more, including those for having a violation-free record, multiple Liberty Mutual policies, being a homeowner, being a member of the U.S. military, being a good student, and buying a policy online. Liberty Mutual also offers RightTrack, a usage-based insurance (UBI) program that advertises savings of up to 30%. The company ranked 11th in J.D. Power’s customer satisfaction survey.
Best for Younger Drivers: State Farm
State Farm is the largest auto insurance company in the U.S. and offers a wide range of car insurance discounts. These include discounts for having multiple policies, being accident-free, completing defensive driving courses, and having certain vehicle safety features. State Farm also offers a usage-based insurance program called Drive Safe and Save, which offers a potential 30% discount for safe driving practices. Additionally, the company has the Steer Clear program, designed for drivers under the age of 25, to help them develop safe driving habits and earn additional discounts.
Best for Online Shopping Experience: Progressive
Progressive was one of the first insurance companies to offer online policy quotes and sales. It continues to offer tools to make buying insurance online easy, including Name Your Price, which helps you see the best possible combination of coverages based on your budget. Progressive also pioneered usage-based insurance (UBI) with its Snapshot program, offering substantial discounts for safe driving. The company ranked 16th in J.D. Power’s customer satisfaction survey.
Best for Discounts: GEICO
GEICO offers a wide range of discounts, including those for being a good driver, a good student, having multiple policies, insuring multiple vehicles, and having certain vehicle safety features. The company also offers discounts for military members and various professional and academic affiliations. GEICO ranked 9th in J.D. Power’s customer satisfaction survey, and according to the National Association of Insurance Commissioners (NAIC), it received fewer customer complaints than average.
Best for Low-Mileage Drivers: Allstate
Allstate, despite being the most expensive insurer in our review, offers a wide range of discounts to help customers save money. The company ranks fifth in J.D. Power’s customer satisfaction study and has fewer customer complaints than average, according to the NAIC. Allstate is particularly suitable for low-mileage drivers, offering programs such as Drivewise and Milewise to track mileage and adjust premiums accordingly.
Best for U.S. Military and Their Families: USAA
USAA insurance is exclusively for members of the U.S. military and their families. It offers many discounts and features similar to those of other insurers, but with additional savings and support for those serving our country. USAA is known for its outstanding customer service and satisfaction, consistently ranking at the top in J.D. Power’s customer satisfaction surveys.
Best for Newer Cars: Farmers
Farmers, while the second-most expensive insurer in our review, offers unique features such as new car replacement coverage and a UBI program called Signal. The company ranks in the top half of J.D. Power’s customer satisfaction survey and provides peace of mind for owners of newer vehicles.
Best for Hybrid/EV Drivers: Travelers
Travelers is the eighth-largest car insurance company in the U.S. and offers competitive rates for insuring electric vehicles (EVs) and hybrids. In addition, Travelers provides numerous discounts, including those for multiple policies, insuring multiple cars, continuous insurance, and getting a quote well in advance. It’s an excellent choice for those with hybrid or electric vehicles.
Methodology
We reviewed the top eight car insurance companies in the U.S. based on data published by the NAIC. Our evaluation incorporated reputable third-party ratings and rankings, including J.D. Power, Crash Network, NAIC’s consumer complaint index, and A.M. Best. We also examined each company’s website to gather information on discounts, UBI, and other programs. Based on our research, we assigned companies to several “best of” categories.
How to Select the Best Car Insurance Company
Choosing the right car insurance company can be challenging, given the multitude of options. Here are some tips to help you make an informed decision:
Look at Third-Party Reviews and Rankings
Consult third-party sources such as J.D. Power, A.M. Best, Demotech, Crash Network, and NAIC for reviews and rankings of car insurance companies. These insights can provide valuable information about customer service, claims satisfaction, and financial strength.
Ask for Recommendations
Seek recommendations from trusted individuals, such as family, friends, co-workers, and neighbors. Their firsthand experiences can offer valuable insights into different insurance companies.
Get Quotes from Multiple Companies
To ensure you get the best premium for the coverage you need, obtain quotes from at least three or four different car insurance companies. Prices can vary significantly, and this step can help you find the most affordable option.
Talk to an Independent Insurance Agent
Consider consulting an independent insurance agent who represents multiple companies. These professionals can assist in finding the right policy at a price that fits your budget. Their expertise and access to various insurers make the process easier for you.
Remember, making an informed choice is crucial when selecting car insurance. By relying on independent rankings, third-party reviews, and quotes from different companies, you can ensure you find the best fit for your unique needs.
Frequently Asked Questions (FAQs)
Q: What are the different types of car insurance?
A: Car insurance policies consist of various coverages, including liability coverage, personal injury protection (PIP), comprehensive coverage, and collision coverage. Each coverage serves a specific purpose, such as covering injuries, damage to your vehicle, or damage to other vehicles in an accident.
Q: What factors affect car insurance premiums?
A: Car insurance premiums are influenced by factors such as age, gender, driving record, location, and the year, make, and model of your car. Additionally, each insurance company has its own pricing strategy based on their underwriting criteria and risk assessment.
Q: What are the car insurance industry trends?
A: Car insurance costs have been on the rise in recent years due to increased costs of auto parts and repair labor. It is essential to be a savvy consumer by regularly shopping for insurance, exploring discounts, and considering usage-based insurance (UBI) programs, especially if you are a safe driver.
Q: What is usage-based insurance (UBI)?
A: Usage-based insurance (UBI) utilizes telematics technology to monitor specific driving behaviors, such as mileage, speed, and time of day. Insurers use this data to offer potential discounts based on safe driving habits.
Q: How long do I have to report an accident to my insurance company?
A: Time limits for reporting accidents vary by insurance company. It is best to check your policy contract or contact your insurance agent to understand the specific deadlines for filing a claim.
Q: How does an insurance company value a car?
A: Insurance companies typically determine the value of a car based on its actual cash value (ACV). ACV represents the depreciated value of the vehicle, reflecting what it would cost to replace or repair the car in the current market.
Remember, car insurance is a crucial aspect of protecting yourself and your vehicle. Take the time to research and compare different companies to find the best coverage and value for your needs.
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