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| Company | Price | Purchasing Options | Available Discounts | Other Available Coverage |
|---|---|---|---|---|
| State Farm Best Overall | $2,089 | Local agent, phone, online | 10 | Home, renters, life, health, pet, disability, liability, small business |
| Erie Insurance Best Cheap Car Insurance and Best for Drivers Under 25 | $1,621 | Online, phone, local agent | 8 | Motorcycle, RV, marine, renters, flood, personal valuables, life, umbrella, business, identity theft |
| Sentry Best with a DUI | $4,392 | Local agent | 7 | Commercial auto insurance, dealership auto coverage, motor carrier coverage, physical damage insurance, non-trucking liability insurance |
| New Jersey Manufacturers (NJM) Group Best for High-Risk Drivers | $1,694 | Phone, local agent | 12 | Liability, comprehensive, collision, underinsured/uninsured, medical expenses, classic and collector car, motorcycle and ATV, boat and personal watercraft |
| Progressive Best for Multiple Vehicles and Best for Bundling with Home and Other Policies | $2,430 | Online, phone | 13 | AT/RV, marine, classic car, golf cart, flood, homeowners, mobile home, renters, travel, umbrella, pet, wedding, personal |
| USAA Best for Military Families | $1,471 | Online, phone, agent | 10 | Motorcycle, ATV/RV, classic car, marine, aviation, renters, landlord, umbrella, flood, farm, mobile phone, life, health, business |
| Allstate Best for Discounts | $2,641 | Online, phone, local agent | 14 | Homeowners, renters, motorcycle, marine, classic car, RV/ATV, business, life, pet, identity theft, tuition |
| Auto-Owners Best for Safe Drivers | $1,785 | Local agent | 13 | Bodily injury liability, collision, comprehensive, property damage liability, medical payments, uninsured/underinsured motorist coverage |
Guide for Choosing the Best Car Insurance Companies
Types of Car Insurance
The first step in figuring out the right insurance policy for you is understanding what type of auto insurance you need. A car insurance policy is typically a bundle of several types of coverage. Here are the most common kinds.
Liability Insurance
Almost every state requires liability insurance, which covers other people for damage from an accident when you’re deemed at fault. There are two types of liability insurance:
Bodily injury liability (BI): This pays for someone else’s medical expenses and lost wages if you injure them in an accident you cause. State law may determine the minimum amount you’re required to have. For example, California requires $15,000 of coverage per person, $30,000 per accident. In Texas, those minimums are doubled: $30,000 per person and $60,000 per accident.
Progressive. «Car Insurance Requirements by State.»
Property damage liability: This covers the cost of repairing or replacing the other driver’s car or property, such as a fence. Property damage liability coverage is required in all states, including New Hampshire, which doesn’t require car insurance but does require this coverage if you do buy car insurance.55
Medical Payments (MedPay) or Personal Injury Protection Insurance (PIP)
Medical payments coverage pays for medical expenses if you or anyone in your car are injured in an accident, no matter whose fault it is. It also covers any pedestrians you may injure and it covers you if you’re a passenger in another car or are hurt by a vehicle when you’re walking, riding a bike, or on public transportation. It is supplemental to your health insurance and is optional in most states.
Personal injury protection, also known as no-fault insurance, is similar in that it also covers you and your passengers for injuries, regardless of who’s at fault in an accident. But PIP often has higher coverage limits and insures a wider range of issues, such as psychiatric and rehabilitative care, plus lost wages, which MedPay does not. PIP is mandatory in 12 states—Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah—plus Puerto Rico, according to the Insurance Information Institute.56
Collision Coverage
Collision coverage pays for damage to your own vehicle or property in a collision with another vehicle or a stationary object, such as a tree or fence. This applies to accidents that are deemed your fault. Your state may not require it, but a lender may if you’re taking out a loan for your vehicle.
Comprehensive Coverage
Comprehensive insurance pays for loss, theft, or damage from a cause other than a collision with another car, such as a fire, hail, or theft. Your state or lender may require this coverage.
Underinsured/Uninsured Motorist Coverage
Underinsured motorist coverage can pay for your medical bills or vehicle repairs if you’re in an accident where the driver who’s at fault doesn’t have enough insurance. Uninsured motorist coverage applies if the other driver doesn’t have any insurance. Requirements for these coverages vary by state.
How to Compare Car Insurance Companies
It’s important to consider several factors to find the best car insurance for your needs.
- Pricing: If you have a specific budget for car insurance, compare quotes from multiple providers to find coverage that aligns with your budget—but be sure you’re comparing apples-to-apples where coverage is concerned.
- Discounts: Most auto insurance companies offer various discounts for safe drivers, college students, or military members.
- Coverage types: Most insurance companies cover the basic comprehensive and collision coverage, but other, specialized coverages may not be so commonly found, such as electric or classic car insurance.
- Policy limit: Each type of coverage comes with a maximum limit that shows exactly how much of your losses will be covered by your insurance company. Some companies may offer more coverage than others, which becomes important when you drive a luxury or classic car.
- Company ratings: Certain industry ratings can help determine what kind of experience you’ll have with an insurer. Consider auto insurance ratings like J.D. Power for customer satisfaction and AM Best for financial stability.
- Your credit history: In some states, insurers can change your rate depending on whether you have poor credit history. Drivers with poor credit may need to shop around a bit more compared to someone with good credit.
- Availability: Before you buy a policy, you need to be sure that the insurance company you choose will service your area. Some companies like Sentry are only available in a handful of states.
How Much Does Car Insurance Cost?
According to The Zebra, the average cost of car insurance nationwide is $880 for a six-month policy, or $147 a month. But your costs will vary significantly based on your location, age, vehicle, driving record, and the amount of coverage you choose.
Car Insurance Rates by State
Most states have minimum liability insurance requirements at the least. The table below shows the average six-month premiums for minimum liability coverage, as well as full coverage, defined by 50/100/50 liability limits, plus collision and comprehensive coverage with $500 deductibles each.
| Average 6-Month Premium by State – Minimum Liability Coverage vs. Full Coverage | ||
|---|---|---|
| State | State Min. Liability | Full Coverage |
| Alabama | $272 | $886 |
| Alaska | $243 | $925 |
| Arizona | $306 | $876 |
| Arkansas | $310 | $1,059 |
| California | $305 | $966 |
| Colorado | $282 | $1,090 |
| Connecticut | $451 | $981 |
| Delaware | $460 | $1,059 |
| Florida | $413 | $1,462 |
| Georgia | $370 | $991 |
| Hawaii | $231 | $704 |
| Idaho | $183 | $599 |
| Illinois | $257 | $758 |
| Indiana | $203 | $633 |
| Iowa | $136 | $679 |
| Kansas | $239 | $895 |
| Kentucky | $461 | $1,284 |
| Louisiana | $463 | $1,351 |
| Maine | $211 | $620 |
| Maryland | $457 | $1,009 |
| Massachusetts | $230 | $709 |
| Michigan | $452 | $1,088 |
| Minnesota | $296 | $853 |
| Mississippi | $271 | $907 |
| Missouri | $298 | $959 |
| Montana | $184 | $899 |
| Nebraska | $198 | $909 |
| Nevada | $426 | $1,114 |
| New Hampshire | $208 | $641 |
| New Jersey | $473 | $1,022 |
| New Mexico | $224 | $814 |
| New York | $491 | $1,086 |
| North Carolina | $229 | $574 |
| North Dakota | $198 | $778 |
| Ohio | $192 | $590 |
| Oklahoma | $232 | $949 |
| Oregon | $353 | $755 |
| Pennsylvania | $252 | $889 |
| Rhode Island | $466 | $1,164 |
| South Carolina | $367 | $1,012 |
| South Dakota | $133 | $804 |
| Tennessee | $225 | $759 |
| Texas | $366 | $993 |
| Utah | $329 | $809 |
| Vermont | $166 | $592 |
| Virginia | $299 | $757 |
| Washington | $395 | $910 |
| Washington, D.C. | $400 | $1,106 |
| West Virginia | $260 | $855 |
| Wisconsin | $199 | $691 |
| Wyoming | $156 | $794 |
Car Insurance Rates by Age
Your age can have a major impact on the price of your car insurance. Teens in particular pay a premium because data shows that younger drivers are on average riskier. Rates go down as you get older, until you’re in your 60s and 70s, when they start rising again. To get cheaper insurance at any age, it’s very important to shop around and get quotes from at least three companies.
| Average 6-Month and 1-Month Premiums by Age Group | ||
|---|---|---|
| Age Group | Avg. 6 Month Premium | Avg. Monthly Premium |
| 16-19 | $2,670 | $445 |
| 20s | $1,142 | $190 |
| 30s | $872 | $145 |
| 40s | $834 | $139 |
| 50s | $777 | $130 |
| 60s | $785 | $131 |
| 70s | $903 | $151 |
How to Find the Best Price on Car Insurance
There are several steps you can take to save on car insurance and find the cheapest policy for you.
1. Shop around: This is the most important step. Get quotes from several insurance companies and choose the one that gives you the lowest price for the most coverage.
2. Think how much liability coverage you need: Your state may have minimum liability limits. But also consider the value of your home, savings, and other assets. Your liability limits should be at least as much as their value. Otherwise, the assets may be at risk if you cause an accident whose damages exceed your coverage limits.
3. Choose a higher deductible: You may be able to lower your monthly premium but increasing your deductible. But keep in mind that a high deductible will require you to pay more later if you need to make a claim.
4. Skip comprehensive and collision coverage: If you’re not required to have these coverages by a lender, you may be able to get away without them—especially if you have an older car. Compare your car’s book value to the deductible and premiums for comprehensive and collision. Kelley Blue Book and Edmunds are two sites that can help you determine your car’s book value.
5. Ask about car insurance discounts: Some insurers offer discounts for bundling multiple kinds of policies (such as homeowners or renters), putting other family members on the policy, having a clean driving record, owning certain safety and antitheft equipment, or being a good student. You may also get a discount for paying your annual premium all at once or enrolling in electronic billing.
6. Consider usage-based insurance: Black-box insurance, also known as pa-as-you-go insurance, uses a telematics device installed in your car that tracks your mileage, when you drive, and how well you drive. Allstate’s Drivewise is one such program. Allstate says Drivewise can only lower your premium. The company will not raise your premium based on your driving behavior.
Car Insurance News
U.S. drivers seem resigned to higher car insurance premiums. Prices went up in 2023, helping drive increases in the Consumer Price Index, a key measure of inflation. In the first half of the year, consumers reacted by shopping around and switching insurers more than usual. But by the fourth quarter of 2023, shopping and switching rates were both falling, despite the fact that premiums were rising even faster in that quarter.
Frequently Asked Questions
How Does Car Insurance Work?
An auto insurance policy protects you against personal and financial costs if you’re involved in a car accident. It can also pay for damage to your car stemming from natural causes, such as a flood or fire.
What Is a Car Insurance Premium?
A car insurance premium is the amount you pay for your policy. You usually pay this either every month, every six months, or annually. Premiums are determined by a number of factors, including your location, age, driving record, vehicle, coverage, deductible, and your credit record.
Should You Purchase Car Insurance?
Most U.S. states require that drivers meet minimum car insurance requirements to legally operate a vehicle. Car insurance can help protect you if you collide with another vehicle or object. Any damages your vehicle sustains will be your responsibility unless you have insurance to cover your losses. Certain types of auto insurance can also cover legal fees and medical bills for yourself, your passengers, and the other vehicle’s passengers.
What Does Car Insurance Cover?
Basic car insurance covers damage to other vehicles or property if you’re responsible for an accident. It can also cover injury-related medical bills and legal fees arising after a collision. You can choose to add more coverage to protect your own car from accidents where you’re at fault, or from a hit-and-run driver. Further optional coverage could help pay for your accident-related medical bills or bills of your passengers.
What Factors Affect the Cost of Car Insurance?
Insurers use several factors to price your auto insurance premiums, including age, gender, and credit score. Insurers will look up your driving record using your driver’s license number to determine whether you’re a risk-taking driver. During the car insurance quote process, you’ll provide your vehicle identification number (VIN), as your auto’s age, accident history, and safety features can influence costs, too. Certain drivers, such as students, seniors, or military members, may be eligible for extra savings that can help lower the cost of car insurance.
What Insurance Is Best for Adults With Teen Drivers?
According to our research, State Farm is the best car insurance company for teens because it offers a broad array of coverage and a couple of good discount options. Its Steer Clear program offers a discount if you’re under 25 and don’t have any moving violations or at-fault accidents on your record. And its Drive Safe & Save program allows you to save up to 30% on your premiums for driving safely.
That said, we found that Progressive has the cheapest insurance for an adult policy with a teen added.
What is the Largest Auto Insurer in the U.S.?
The largest auto insurer in the U.S. is State Farm. According to Investopedia research on the biggest insurance companies, State Farm offers the largest dollar amount of property and casualty insurance policies in the U.S.
Companies We Reviewed
We researched and reviewed 25 companies to find the best eight companies you see above on this list. Below are the companies we researched. Those that didn’t make our list may have had higher prices, lower customer experience ratings, or less nationwide availability.
USAA, Erie, Country Insurance, Auto-Owners, Southern Farm Bureau, State Farm, New Jersey Manufacturers Insurance, Geico, American Family, Nationwide, Progressive, The Hartford (AARP), Travelers, Shelter, Alfa, Allstate, Farmers, Kemper, Auto Club Group (AAA) Michigan, Amica, CSAA Insurance Group (AAA), Mercury, Sentry, Automobile Club Group, The Hanover.
Methodology
Our team evaluated 25 insurance companies and collected thousands of data points before selecting our top choices. We weighed eight criteria and gave a higher weight to those with a more significant impact on potential customers.
The factors we most heavily considered when scoring insurers include median annual premium (weighted 25%), fairness in pricing methodology (weighted 15%), and regional availability (weighted 15%). We also took into account other features that are important to buyers including complaint scores, consumer satisfaction reports from J.D. Power and Consumer Reports, and company loss ratios.
For further information about our selection criteria and process, see our complete methodology.
