Auto insurance consumers are on the hunt for the best car insurance company in the U.S., and the trend of increasing car insurance rates from 2022 is expected to continue in 2023.
If you’re looking for a list of the best car insurance companies, CarInsurance.com’s top 10 list will help you determine which auto insurance company best suits your needs. For some, the price may be the biggest consideration for car insurance, while for others, it may be customer satisfaction or claims satisfaction.
What are the 10 best auto insurance companies in 2023?
Insure.com, in the fall of 2022, surveyed more than 1,500 people about insurance and gathered and analyzed the companies’ rate data, AM Best grades and National Association of Insurance Commissioners (NAIC) complaint scores to select the nation’s best insurance companies.
Insure.com, which is CarInsurance.com’s sister site, provided the survey results and CarInsurance.com editors weighed in on the results, which are below.
USAA is excluded because it only provides services to members of the military community. Liberty Mutual and Safeco were omitted because they don’t offer policy pricing information, which was part of the overall score. Some other familiar names also didn’t make the cut because those companies didn’t generate enough survey responses.
Here are the top 10 auto insurance companies for 2023.
- State Farm: 4.6 stars (out of 5)
- Geico: 4.1 stars (out of 5)
- Auto-Owners: 3.8 stars (out of 5)
- Travelers: 3.7 stars (out of 5)
- Nationwide: 3.5 stars (out of 5)
- Erie: 3.2 stars (out of 5)
- Progressive: 3.1 stars (out of 5)
- American Family: 2.7 stars (out of 5)
- Allstate: 2.7 stars (out of 5)
- Farmers: 2.0 stars (out of 5)
The CarInsurance.com editorial team bases its reporting on data it commissioned Quadrant Information Services to gather on average auto insurance rates for more than 34K ZIP codes across the United States.
Typically, averages are based on rates for a single, 40-year-old male, with no violations who commutes 12 miles to work each day and has a full-coverage policy with limits of 100/300/100 and a $500 deductible for collision and comprehensive coverage.
Best auto insurance companies in specific categories
Here are the best companies for specific situations and needs. This list includes the companies we evaluated beyond the top 10 – like USAA and The Hartford – which were excluded from the overall rankings.
- Best for cheapest rates: Nationwide
- Best for customer satisfaction: Erie and Travelers
- Best for ease of service: Liberty Mutual
- Best for policy offerings: Erie
- Best for claims handling: Nationwide
- Best website/online experience: Nationwide
- Best discounts: The Hartford
- Best military discounts: USAA
- Best for young drivers and teens: American Family
- Best for college students: Travelers
- Best for senior drivers: The Hartford
- Best for drivers with tickets: Progressive
- Best for high-risk drivers: Allstate
- Best for auto and home bundling: Safeco
- Most likely to be recommended to others: Travelers and Erie
- Most trustworthy: State Farm
- Best for renewals: Erie
Top 10 auto insurance companies for 2023
To determine the top 10 auto insurance companies, editors compiled survey results and then ranked the companies based on the survey, third-party data and rate information. In some instances, we did not have an insurer’s rate information and could not rank it, so Liberty Mutual, Safeco and USAA are not included below.
USAA is only available to members of the military community, and Liberty Mutual and Safeco don’t publish their insurance rate information.
State Farm is the largest national auto insurance company in the U.S. State Farm scores well in various categories, including average premium, discounts, customer satisfaction and trustworthiness. Beyond auto, you can insure your home, apartment, boat, motorcycle and small business with State Farm.
Geico is available nationwide and ranked highly for its affordable rates, customer satisfaction, ease of service and renewals. Geico’s mobile app allows users to access insurance ID cards, pay their premiums, contact roadside assistance and submit photos of a car after an accident.
Auto-Owners customers praised the company for its affordable monthly premiums, and survey respondents were very likely to renew their policies with the company. Auto-Owners is only available in 26 states, but it offers many coverages, including auto, home/condo, renters, motorcycle, motorhome and RV, boat and trailer insurance.
Travelers has been in the insurance business for 150 years and is one of the biggest insurance companies in the country, with coverage in all 50 states. Travelers’ customers are highly satisfied and are likely to recommend the company to others.
Nationwide is available across the U.S. except for Alaska, Hawaii, Louisiana and Massachusetts. Nationwide allows drivers to customize their policies, and its telematics program lets drivers earn discounts based on their safe driving habits, as well as standard discounts. The company offers coverage for RVs, ATVs, golf carts, snowmobiles, boats, motorcycles and scooters.
Erie sells insurance in Washington, D.C., and 12 states, it gets excellent reviews for customer satisfaction and policy offerings. It offers various car insurance coverages, including ATVs, boats, classic cars and golf carts.
Progressive is ranked highly for customer satisfaction and discounts, although its average annual premiums cost more than many competitors. Progressive’s coverage is available in all states, and the company offers business auto insurance and policies for collector cars, motorcycles, RVs and boats.
American Family offers a variety of insurance products and sells coverage in 19 states via a network of agents. American Family was ranked highly for customer satisfaction and auto and home bundling. American Family sells a full range of insurance products to insure motorcycles, RVs, boats, ATVs and snowmobiles.
Allstate was rated highly for its ease of service and expansive policy offerings. Its customers have high renewal rates, but it was more expensive than most competitors. Allstate offers insurance across the U.S. and protects around 16 million households with auto, life, renters, condo and property insurance.
Farmers rounded out the top 10 for great discounts and home/auto policy bundles. It offers insurance coverage through most of the U.S. and acquired MetLife’s home and auto business in 2021. Farmers offers home, renters, condo, and auto insurance as well as pet insurance, umbrella insurance and financial products.
How to find the best car insurance company
Each consumer’s needs are different, so it pays to shop around to find the best car insurance company.
Factors that car insurance companies consider when setting rates that are specific to you:
- Make and model of your cars
- Number of drivers in your household
- Ages and driving experience of the drivers in your household
- Driving records of the drivers in your household
- Types of coverages, limits and deductibles you choose
- Claims history
- The location where vehicles are parked each night
Understanding your priorities for car insurance, such as customer service, and putting that together with average prices, gives you a place to start your comparison-shopping journey.
Understanding what coverage you need is also an important part of the puzzle. Make sure your needs are taken care of by getting the type of insurance coverage you need from a provider within your budget.
When reviewing the best car insurance companies, you’re in the driver’s seat. Researching how others were treated can help you feel more confident when you do pick the best car insurance company for you.
And remember, what fits your needs best today may change in a year or even six months, so continue to shop around at renewal time or when you have a major life event, such as getting married. The insurance that works for you today may not work for you tomorrow if your circumstances change.
Getting the best car insurance for you
Buying as much car insurance as you can afford is the safest way to ensure you have sufficient coverage that won’t leave you financially at risk.
Minimum coverage insurance policies are rarely recommended. That’s because even a minor accident can cause damage that exceeds that of minimum coverage insurance policies, leaving you to pay the difference.
If your goal is getting the best cheap car insurance rather than just the state-required minimum required coverage when shopping for an auto insurance policy, make sure you take the following precautions.
Buy enough property damage liability and bodily injury liability coverage
You personally are responsible for the costs of injuries and damage you do to others. Liability insurance covers that to a point. A homeowner needs at least $100,000 in bodily injury liability coverage if he or she injures another driver.
And you should buy enough property damage liability insurance to replace the car you hit – at least $50,000. Liability coverage is required to drive legally in most states. Bodily injury liability and property damage liability limits vary by state.
Consider additional coverages
- Uninsured and underinsured motorist bodily injury coverage can protect you in the case of a collision with an uninsured driver.
- Gap insurance is a good option if you owe more on a loan than the car is worth.
- Towing and labor might be a waste on a newer car with a warranty and road service plan, but roadside assistance may be a lifesaver if you have an older car.
- Rental car reimbursement might be handy if your family has only one car but unnecessary if you have a spare car to use if yours is out of commission.
Final thoughts on the best car insurance
Ultimately, the best car insurance company for you is the one that meets your needs for price, customer service, user experience and discounts.
Resources & Methodology
Insure.com, which is CarInsurance.com’s sister site in the fall of 2022 surveyed more than 1,500 insurance consumers (1,080 people with auto insurance). Online market research company Slice MR conducted the survey.
Respondents were asked to name their auto insurer and grade it in the following categories – customer satisfaction, ease of service and policy offerings. The percentage of respondents who said they were satisfied or very satisfied with their insurer is presented in the results.
Respondents ranked their insurer’s top three attributes out of more than a dozen presented – including claims satisfaction, digital experience, discounts, military discounts, best for young drivers and teens, best for college students, best for senior drivers, best for drivers with a ticket, best for high-risk drivers and best for auto/home bundling.
For a number one choice, five points were given; for a second choice, three points; and for a third choice, a single point. The total points for each choice – first, second and third – were then divided by the number of each company’s customers who responded to that survey question to create a percentage. Those percentages are presented in the results as survey scores.
Respondents were then asked if they would recommend their auto insurer to someone else and whether they would renew with their company. The percentage who said yes is presented in the results.
Finally, respondents were given the statement “I trust my insurance company” and asked if they strongly agreed, agreed, disagreed or strongly disagreed with it. The percentage of those who said they agreed or strongly agreed is presented in the results.
The editors compiled the survey results and then selected – based on the number of survey responses – the top companies for further evaluation.
They then collected National Association of Insurance Commissioners’ complaint data, which ranks a company by the number of customer complaints it receives, and A.M. Best data, which measures financial strength.
They also collected insurance rate data from Quadrant Information Services.
With the help of Prof. David Marlett, Ph.D., Managing Director of the Brantley Risk and Insurance Center at Appalachian State University, the editors created a rating system to determine which insurance companies were best in each sector.
For auto insurers, we took the following and gave each a weight.
- Survey: 40% of the total score (10% customer satisfaction, 10% recommended, 10% renewal rate and 10% claims handling)
- Annual premium: 20% of total score
- AM Best: 25% of total score
- NAIC: 15% of total score
- Each insurer was awarded from 1 to 5 stars. No insurer in our star ranking received less than 1 star and 5 stars was the most any insurer could receive.