Best car insurance companies of April 2024
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Updated 3:27 a.m. UTC April 1, 2024
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The best car insurance company of 2024 is Nationwide. It has a wide range of coverages, some of the lowest rates and fewer complaints to state insurance departments, compared to many other insurers in our analysis.
Travelers and USAA also receive 5 stars in our analysis of the best car insurance companies. Erie, Geico and Progressive earn between 4 and 4.5 stars and are also good car insurance companies to consider.
The best car insurance companies of 2024
| BEST CAR INSURANCE | CAR INSURANCE COMPANY* |
|---|---|
*In some cases, USAA has the best car insurance for certain driver profiles, but its coverage is limited to the military community. As such, insurers available to the general public were prioritized for the above table.
Why trust our car insurance experts
Our team of car insurance experts brings to the table decades of experience in the auto insurance industry, both as editors and consumers. We approach our car insurance analysis the way we would for ourselves or our family members, focusing on the factors that matter the most: rates, coverage and features available, customer complaints and the collision repair process.
We use a data-driven methodology to evaluate hundreds of insurance products, analyze thousands of data points and rate each insurer to help you find the best car insurance product for your situation. Advertisers never influence our editorial content.
You can read more about our methodology below.
- 260 companies analyzed.
- 347 rates reviewed.
- 5 levels of fact-checking.
Top-rated car insurance companies of 2024
Why it’s the best
Nationwide is the best car insurance company overall, among car insurance providers we analyzed.
It also claims the top spot in our best car insurance for teens and best car insurance for seniors ratings.
Nationwide has the lowest average rate drivers with poor credit and parents adding a teen (16 to 19) to their car insurance policy, two demographics that often see high car insurance premiums. Good drivers and drivers with a speeding ticket are also likely to find low rates with Nationwide.
In addition to some of the best car insurance deals for most drivers, Nationwide also has a low level of customer complaints to state insurance departments and offers a variety of coverage options and features, including usage-based insurance, accident forgiveness and gap insurance. It does not offer rideshare insurance, meaning it’s not the best option if you drive for a rideshare service, such as Lyft or Uber.
See our full Nationwide car insurance review
Average rates
| DRIVER PROFILE | AVERAGE ANNUAL CAR INSURANCE RATE |
|---|---|
Good driver
| $1,436
|
After an accident with injury
| $2,337
|
After an accident with property damage
| $2,298
|
After a DUI
| $3,083
|
After a speeding ticket
| $1,878
|
Young driver (18 to 25)
| $2,881
|
Senior driver
| $1,402
|
Parents adding a teen driver
| $2,819
|
Poor credit
| $2,051
|
After a gap in coverage
| $1,972
|
Why it’s the best
USAA offers some of the best auto insurance rates among the car insurance companies we evaluated. Its rates are particularly competitive for good drivers as well as those who have an accident or speeding ticket on their record. Even drivers with a DUI or poor credit history are likely to find competitive rates with USAA.
While most drivers can unlock lower rates with this insurer, only USAA members are eligible for coverage. USAA was founded specifically to support the military community, and its auto insurance and financial products are available only to active military members, veterans and their families.
See our full USAA car insurance review
Average rates
| DRIVER PROFILE | AVERAGE ANNUAL CAR INSURANCE RATE |
|---|---|
Good driver
| $1,364
|
After an accident with injury
| $1,958
|
After an accident with property damage
| $2,021
|
After a DUI
| $2,604
|
After a speeding ticket
| $1,661
|
Parents adding a teen driver
| $3,025
|
Young driver (18 to 25)
| $2,368
|
Senior driver
| $1,455
|
Poor credit
| $2,450
|
After a gap in coverage
| $1,556
|
Why it’s the best
Travelers offers excellent car insurance for new car owners. It has the cheapest gap insurance rates among the car insurance companies we evaluated. If your car is totaled and the market value is less than the balance on your auto loan, this type of coverage can help bridge the gap. It may even be required as part of a lender or lessor agreement.
Travelers also offers new car replacement coverage that lasts five years, while many other insurers limit the coverage to two or three years — another reason it’s the best insurance for car owners who recently upgraded their ride. As an added bonus, Travelers offers discounts for new vehicles (less than three years old) and hybrid/electric vehicles
Travelers also has lower-than-average rates for most drivers and the third lowest rates in our analysis for drivers ages 18 to 25 who are purchasing their own policy, as opposed to joining a parent’s policy.
See our full Travelers car insurance review
Average rates
| DRIVER PROFILE | AVERAGE ANNUAL CAR INSURANCE RATE |
|---|---|
Good driver
| $1,521
|
After an accident with injury
| $2,293
|
After an accident with property damage
| $2,215
|
After a DUI
| $2,610
|
After a speeding ticket
| $2,062
|
Young driver (18 to 25)
| $2,638
|
Senior driver
| $1,668
|
Parents adding a teen driver
| $3,963
|
Poor credit
| $2,699
|
After a gap in coverage
| $1,772
|
Why it’s the best
Erie has the lowest car insurance rates for parents adding a 16-year-old driver to their policy, making it the best car insurance for new drivers. The insurer also has the highest CRASH Network grade (A-) among companies we analyzed, which reflects the efficiency and reliability of an insurer’s collision repairs claims process. And, Erie took the No. 2 spot in the most recent J.D. Power U.S. Auto Claims Satisfaction Study, the highest performing car insurance provided among those we analyzed in our rating.
In addition to low rates for new and young drivers and a strong claims process, Erie also has competitive rates for drivers with an accident, DUI or speeding ticket on their record. However, Erie does not offer usage-based car insurance. Some drivers, especially those with a clean record or poor credit, may find cheaper rates elsewhere.
See our full Erie car insurance review
Average rates
| DRIVER PROFILE | AVERAGE ANNUAL CAR INSURANCE RATE |
|---|---|
Good driver
| $1,642
|
After an accident with injury
| $2,224
|
After an accident with property damage
| $2,125
|
After a DUI
| $2,665
|
After a speeding ticket
| $1,899
|
Young driver (18 to 25)
| $2,575
|
Senior driver
| $1,831
|
Parents adding a teen driver
| $3,215
|
Poor credit
| $3,701
|
After a gap in coverage
| $1,796
|
Why it’s the best
Geico has low rates for drivers with bad credit. It also has competitive rates for good drivers and senior drivers and below-average rates for most other types of drivers, except those with a DUI.
Geico offers coverage in all 50 states and provides most major types of car insurance drivers expect, but some coverage options and features are missing. Namely, Geico doesn’t offer rideshare insurance, gap insurance, new car replacement and vanishing deductibles.
See our full Geico car insurance review
Average rates
| DRIVER PROFILE | AVERAGE ANNUAL CAR INSURANCE RATE |
|---|---|
Good driver
| $1,597
|
After an accident with injury
| $2,748
|
After an accident with property damage
| $2,718
|
After a DUI
| $3,723
|
After a speeding ticket
| $2,150
|
Young driver (18 to 25)
| $2,781
|
Senior driver
| $1,793
|
Parents adding a teen driver
| $3,866
|
Poor credit
| $2,482
|
After a gap in coverage
| $2,029
|
Why it’s the best
Progressive’s average rate after a DUI ($2,307) is significantly lower than the national average of $3,363. Progressive’s rates for other types of drivers are generally below average, though you’ll likely see higher rates with Progressive than some other insurers if you have a speeding ticket or accident causing property damage on your record.
Progressive car insurance is available in all 50 states and it offers a slew of features and coverage options, such as rideshare insurance and gap insurance. It doesn’t offer new car replacement coverage, however.
See our full Progressive car insurance review
Average rates
| DRIVER PROFILE | AVERAGE ANNUAL CAR INSURANCE RATE |
|---|---|
Good driver
| $1,826
|
After an accident with injury
| $2,770
|
After an accident with property damage
| $2,818
|
After a DUI
| $2,307
|
After a speeding ticket
| $2,350
|
Young driver (18 to 25)
| $3,704
|
Senior driver
| $1,937
|
Parents adding a teen driver
| $3,864
|
Poor credit
| $3,221
|
After a gap in coverage
| $2,008
|
What is the best car insurance company overall?
The best auto insurance company overall is Nationwide, based on our analysis of car insurance rates, coverage options and consumer complaints.
Travelers and USAA also get 5 stars and earn top spots in our ratings of the cheapest car insurance, best car insurance for teens and best car insurance for seniors.
If you’re looking for top-rated car insurance companies, it’s important to note that USAA auto insurance is only available to members of the military, veterans and their eligible family members.
To find the best insurance companies for your policy needs, shop around and compare car insurance quotes.
Methodology
Our car insurance experts evaluated the best car insurance providers in the nation by analyzing several key metrics: cost, coverage options and features, consumer complaints and collision repair scores.
Each car insurance company was eligible for up to 100 points, based on its performance in the following key categories:
The best car insurance based on your needs
The best car insurance policy for you depends on several factors, including your coverage needs, policy preferences and expectations, driving record and age.
- Best full coverage car insurance
- Best liability-only car insurance
- Best low-cost car insurance
- Best home and auto bundles
- Best car insurance after a DUI
- Best car insurance for seniors
- Best car insurance for teens
- Best car insurance for new drivers
- Best car insurance for claims experience
Best full coverage car insurance: Nationwide
Nationwide has the best full coverage car insurance. It has the highest score in our rating and the second-lowest average cost among insurers we analyzed. USAA and Travelers also receive 5-star ratings for offering the best full coverage auto insurance.
| CAR INSURANCE COMPANY | AVERAGE ANNUAL CAR INSURANCE COST | AVERAGE MONTHLY CAR INSURANCE COST |
|---|---|---|
$1,436
| $120
| |
$1,364
| $114
| |
$1,521
| $127
| |
$1,642
| $137
| |
$1,826
| $152
| |
$1,597
| $133
|
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Best liability car insurance: Erie
USAA and Erie offer the most affordable liability-only car insurance among the insurers to make our list of best car insurance providers.
If rates are the driving force in your search for the best car insurance policy for liability-only coverage, consider Erie. Its average rate is $36 a month.
If you’re a member of the military community, get a quote with USAA. Its average rates are lower than Erie’s at $31 per month.
Best liability-only car insurance companies
| CAR INSURANCE COMPANY | BEST LIABILITY CAR INSURANCE RATING | AVERAGE ANNUAL CAR INSURANCE COST | AVERAGE MONTHLY CAR INSURANCE COST |
|---|---|---|---|
5.0 stars
| $437
| $36
| |
5.0 stars
| $373
| $31
| |
4.5 stars
| $445
| $37
| |
Westfield
| 4.5 stars
| $481
| $40
|
4.5 stars
| $481
| $40
| |
4.0 stars
| $640
| $53
| |
4.0 stars
| $656
| $55
|
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Best low-cost car insurance: Nationwide
Nationwide has the cheapest car insurance for the general public among the top insurers in our analysis. Good drivers pay an average of $1,436 a year, or $120 per month. That’s 33% less than the national average of $2,026.
If you’re eligible for USAA coverage, you may be able to secure an even lower rate. The average cost of a USAA full-coverage policy for a good driver is $1,364 a year, or $114 per month.
Both insurers also have the lowest overall average annual rates, when factoring in rates for all driver profiles.
| CAR INSURANCE COMPANY | ANNUAL CAR INSURANCE RATE FOR GOOD DRIVERS | MONTHLY CAR INSURANCE RATE |
|---|---|---|
$1,364
| $114
| |
$1,436
| $120
| |
$1,521
| $127
| |
$1,597
| $133
| |
$1,642
| $137
|
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Best home and auto insurance bundle: State Farm
If you’re looking for the biggest discount, State Farm is a good option when it comes to bundling your auto and home insurance policies. It offers the most savings for a home and auto bundle, with up to 23% off on your premiums.
However, if you’re looking for the best bundle with one of our top-rated car insurance companies, consider Nationwide. Its bundling discount is a little lower at 15% off, but it also has lower rates for both car and homeowners insurance, when compared to State Farm.
| CAR INSURANCE COMPANY | AVERAGE BUNDLING DISCOUNT | AVERAGE CAR INSURANCE RATE FOR GOOD DRIVERS* | AVERAGE ANNUAL HOME INSURANCE COST FOR $350,000 IN DWELLING COVERAGE* |
|---|---|---|---|
23%
| $2,025
| $1,298
| |
15%
| $1,436
| $1,157
| |
10%
| $1,855
| $1,525
| |
7%
| $1,826
| $729
| |
6%
| $1,364
| $1,270
|
* Average cost of car insurance and homeowners insurance represents the average cost before bundling discounts.
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Best car insurance for seniors: Nationwide
Nationwide has the best car insurance for drivers over 65, according to our best car insurance for seniors rating. It has the cheapest rates for senior drivers, with an average rate of $1,402 per year, or about $117 per month.
| CAR INSURANCE COMPANY | bEST CAR INSURANCE FOR SENIORS RATING | AVERAGE ANNUAL CAR INSURANCE RATE | AVERAGE MONTHLY CAR INSURANCE RATE |
|---|---|---|---|
5.0 stars
| $1,402
| $117
| |
5.0 stars
| $1,455
| $121
| |
5.0 stars
| $1,668
| $139
| |
4.5 stars
| $1,831
| $153
| |
4.5 stars
| $1,813
| $151
| |
4.0 stars
| $1,793
| $149
| |
4.0 stars
| $1,937
| $161
|
Car insurance rates reflect the average rates for men and women between ages 65 and 85.
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Best car insurance for teens: Nationwide
Nationwide has the best car insurance for teens, for parents looking to add a 16- to 19-year-old to their policy. It has the lowest rates among the insurers we analyzed — $2,819 per year or $235 per month.
Parents in the military community looking for affordable car insurance rates when adding a teen to your policy, consider USAA, which has car insurance for teens with annual rates as low as $3,025 per year, or $252 per month.
If you’re a teen shopping for your own car insurance policy, consider Erie. It has the lowest average rate of $2,921 per year, or $243 per month.
Best car insurance rates for teens on a parent policy
| CAR INSURANCE COMPANY | BEST TEEN CAR INSURANCE RATING | ANNUAL CAR INSURANCE RATE | MONTHLY CAR INSURANCE RATE |
|---|---|---|---|
5.0 stars
| $2,819
| $235
| |
5.0 stars
| $3,215
| $268
| |
4.5 stars
| $3,025
| $252
| |
4.0 stars
| $3,963
| $330
| |
Westfield
| 4.0 stars
| $4,248
| $354
|
Best car insurance rates for teens on own policy
| CAR INSURANCE COMPANY | ANNUAL CAR INSURANCE RATE | MONTHLY CAR INSURANCE RATE |
|---|---|---|
$2,921
| $243
| |
$3,418
| $285
| |
$3,746
| $312
| |
$3,834
| $320
| |
$3,942
| $329
| |
$4,005
| $334
| |
Westfield
| $4,330
| $361
|
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Did you know? Teen drivers are 4 times more likely to get in an accident than older drivers
Best car insurance for DUI: Progressive
A DUI will raise your rates, but if you’re shopping for the best cheap car insurance after a DUI, get quotes from Progressive. Progressive has the cheapest average rates after a DUI at $2,307 per year, or $192 per month.
| CAR INSURANCE COMPANY | ANNUAL CAR INSURANCE RATE | MONTHLY CAR INSURANCE RATE |
|---|---|---|
$2,307
| $192
| |
$2,604
| $217
| |
$2,610
| $218
| |
$2,665
| $222
|
Best car insurance for new drivers: Erie
If you’re getting ready to insure a freshly-minted, 16-year-old driver, get a quote from Erie. Not only does Erie have competitive rates for drivers in this age group, it also has the best collision repair scores and the highest J.D. Power U.S. Auto Claims Satisfaction Survey scores among the insurers in our best car insurance rating.
If Erie car insurance is not available where you live, Nationwide offers the cheapest car insurance for new drivers, on average.
| CAR INSURANCE COMPANY | ANNUAL COST TO ADD A 16-yEAR-OLD DRIVER | MONTHLY COST TO ADD A 16-YEAR-OLD DRIVER |
|---|---|---|
$893
| $74
| |
$1,606
| $134
| |
$2,466
| $206
| |
$2,728
| $227
|
Best car insurance for claims experience: Erie
The last thing you want to worry about after an accident is whether or not your insurer will properly handle the claim. According to the most recent CRASH Network Insurer’s Report Card, Erie has the best claims process among the insurers we evaluated.
The CRASH Network surveys more than 1,000 collision professionals to learn about how different auto insurance companies handle the claims process. Insurers receive a grade of A+ to F based on their performance in key areas, such as the claims handling process, quality of repairs, payments and customer satisfaction.
Erie got the best CRASH Network score out of our best auto insurance companies, and it’s also worth noting that Erie received the second-highest score in the most recent J.D. Power U.S. Auto Claims Satisfaction Study.
| CAR INSURANCE COMPANY | 2024 CRASH NETWORK SCORE |
|---|---|
A-
| |
B
| |
Westfield
| B
|
C
| |
C
| |
C
| |
C-
| |
C-
| |
C-
| |
D+
| |
D+
|
5 ways to find the best car insurance company for you
If you’re looking for the best auto insurance company for you, these steps can help:
- Determine your basic coverage needs by checking state car insurance requirements. If you finance or lease your vehicle, also check the lender or lessor agreement, as it likely requires comprehensive and collision coverage, and potentially gap insurance.
- Customize your car insurance policy with any additional coverages or features you may need or want, such as new car replacement coverage, rideshare coverage or roadside assistance. Also consider any situational needs, such as SR-22 filing after a DUI.
- Evaluate benefits and discounts offered by each insurer, such as access to online or in-app policy management, home and auto bundling discounts, or other circumstantial discounts, like a good student discount.
- Compare car insurance quotes from at least three car insurance companies, ensuring you’re comparing car insurance quotes for the same type and amount of coverage.
- Consider car insurance company reviews. The cheapest car insurance isn’t always the best. Read expert car insurance reviews online and get feedback from friends, family or coworkers about their car insurance to help you determine the best insurer for your needs.
How much does car insurance cost?
The average annual car insurance rate for good drivers is $2,026, or about $169 per month according to our analysis. Other drivers, such as those with a moving violation on their record or teens and seniors, may pay more.
Average cost of car insurance per month
| DRIVER TYPE | NATIONAL AVERAGE | CHEAPEST CAR INSURANCE |
|---|---|---|
Good driver
| $169
| USAA: $114
|
After an accident with injury
| $251
| USAA: $163
|
After an accident with property damage
| $250
| USAA: $168
|
$280
| Progressive: $192
| |
After a speeding ticket
| $211
| USAA: $138
|
Poor credit
| $321
| Nationwide: $171
|
Parent adding a teen driver
| $364
| Nationwide: $235
|
Young driver (18 to 25)
| $309
| USAA: $197
|
$179
| Nationwide: $117
| |
After a gap in coverage
| $197
| USAA: $130
|
USAA car insurance is only available to members of the military, veterans and their families.
Factors that impact the cost of car insurance
To get the best auto insurance rates, it’s helpful to understand what factors insurers use to determine your premium. Here are several variables that will determine how much you pay for auto insurance.
- Auto insurance deductible amount you choose, when applicable.
- Coverage limits you choose.
- Types of auto insurance you include in your policy, including optional coverages.
- Your age.
- Your car insurance claims history.
- Your car insurance history.
- Your credit-based insurance score (except in California, Hawaii, Massachusetts and Michigan).
- Your gender (except in California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania).
- Your location.
- Your vehicle.
Full coverage car insurance rates are based on liability coverage of 100/300/100 ($100,000 in bodily injury liability per person, $300,000 per accident and $100,000 in property damage liability), uninsured motorist coverage and collision and comprehensive insurance with a $500 deductible.
How to save money on car insurance
Here are some things you can do to save money on car insurance:
- Ask about discounts. Insurers offer car insurance discounts like good driver discounts and bundling home and auto insurance.
- Drive safely. Drivers with a good record and no traffic violations tend to see lower rates.
- Go claims free. Your may get cheaper car insurance rates if you go claims-free for a certain number of years.
- Keep your credit score up. In some states, insurers factor in your credit score when determining how much you’ll pay. The better your credit score, the cheaper your car insurance may be.
- Choose a higher deductible. If you raise your deductible you’ll see lower rates, but your claims payouts will be smaller.
- Shop around. Get and compare car insurance quotes. Do this regularly to make sure you’re getting the best vehicle insurance rates for your needs.
- Consider usage-based car insurance (UBI), especially if you drive infrequently and have strong, safe driving habits. Insurers that offer these programs leverage a device plug-in or app to collect telematics data to determine your rate: speed, mileage, hard braking, acceleration and more. However, take note that some insurers will raise rates with evidence of unsafe driving habits.
Types of car insurance
Most states require motorists to purchase liability car insurance, but depending on where you live and whether you finance your vehicles, you may be required to purchase other types of car insurance. Here are the most common types of car insurance to consider.
| TYPE OF CAR INSURANCE | EXPLANATION OF COVERAGE | REQUIRED? |
|---|---|---|
Covers costs incurred by other drivers and their passengers if you’re at fault for an accident. Includes:
| Required in most states
| |
Uninsured/underinsured motorist insurance
| Uninsured motorist (UM) insurance typically covers
Underinsured motorist (UIM) insurance offers similar coverage if the at-fault driver doesn’t carry enough insurance to cover accident-related costs
| Required in some states
|
Pays to repair or replace your vehicle if it was damaged after “colliding” with an object, such as a vehicle, fence or tree. It can also provide coverage if you are involved in a hit-and-run or a roll-over accident
| No state requirements, but typically required if you finance or lease your vehicle
| |
Covers you if your vehicle is damaged by an event other than a crash, such as hail, flooding, fire, vandalism, theft, collision with an animal or falling objects, such as rocks or tree limbs
Reimburses you for losses associated with vehicle theft
| No state requirements, but typically required if you finance or lease your vehicle
| |
Covers accident-related medical bills for you, your passengers and family members in your household, regardless of who is at fault for the accident
It can also cover lost wages and the cost of everyday services, like childcare, if an accident leaves you or your passengers unable to complete the task
| Usually required in “no-fault” or “choice no-fault” states
| |
Medical payments coverage (MedPay)
| Covers accident-related medical bills for you and your passengers, regardless of who is at fault. This can include the cost of doctor visits, ambulance services, X-rays, surgery and funeral fees
| Required in some states
|
Covers the difference between the market value of your vehicle and the actual balance on your auto loan, if you finance your vehicle
| You may be required to purchase gap insurance if you finance or lease your vehicle
|
How much car insurance do I need?
How much car insurance you need will depend on:
- The minimum amount of car insurance required by your state. This information should be available on your state’s Department of Motor Vehicles or Registry of Motor Vehicles. You can also check out our guide to car insurance needs and requirements.
- Coverage requirements that are part of a finance or lease agreement. If you lease or finance your vehicle, your lender or lessor will likely require you to carry full coverage car insurance (which includes liability, collision and comprehensive coverage) up to a specified limit.
- Enough coverage to cover your assets. If you don’t have enough car insurance, you can end up paying out of pocket for damages. Depending on where you live, you also may face legal ramifications if you’re at fault for an accident but don’t carry enough car insurance.
Related: How does car insurance work?
Best car insurance FAQs
The top auto insurance companies in our rating are:
These top-rated auto insurance companies each have a 5-star rating according to our car insurance reviews, which are based on our expert analysis of rates, features, coverage options and consumer complaints.
Keep in mind that there are other good car insurance companies that may be better suited to meet your coverage needs.
- If you’re shopping for the best car insurance for teens, Nationwide or Erie may be your best options.
- If you’re shopping for the best cheap car insurance, Nationwide, USAA and Travelers are worth considering.
USAA offers the cheapest auto insurance rates for most driver types and age groups. However, USAA is only available for military members and their families. If you don’t qualify for USAA, Nationwide and Travelers also have low average rates for most driver groups.
You can find the best price on car insurance by comparing car insurance quotes from multiple insurance companies. In most cases, you’ll need to carry liability car insurance, but depending on other factors, such as state laws and lender requirements, you may need to carry additional coverage. A good auto insurance policy for you is one that meets each of those needs.
Other ways to find the best car insurance rates include bundling your car insurance with your homeowners insurance or renters insurance and asking about other discounts for which you or other drivers on your policy may be eligible.
Nationwide is the best car insurance company overall. It offers highly competitive rates for most drivers, a variety of features and coverage options and has a low level of customer complaints.
As you shop for car insurance make it a point to compare quotes, policy features and discounts as well as auto insurance company reviews.
Consider looking for the following car insurance discounts to save:
- Anti-theft equipment discounts.
- Defensive driving class discounts.
- Good driver discounts.
- Good student discounts for young drivers.
- Loyalty discounts.
- Multi-policy or bundling discounts.
- Multi-vehicle discounts.
- New car discounts.
- Payment-based discounts, such as paid-in-full or automatic payment.
- Safety equipment discounts, such as those for anti-lock brakes and airbags.
Yes, if your car is stolen and you still owe on your car loan, gap insurance covers the difference between your loan balance and the value of your vehicle.
Car insurance is a contract between you and an insurer that provides financial protection if you’re involved in an accident or another covered incident. In exchange for a premium or regular policy payment, your insurer will cover financial losses associated with a covered accident or incident.
Depending on the type of coverage you have, auto insurance can help cover accident-related expenses such as:
- Injuries to another driver, their passengers and pedestrians involved in an accident.
- Injuries to you and your passengers.
- Legal expenses if you’re sued after an accident.
- Repairing or replacing another driver’s vehicle if you’re at fault for an accident.
- Repairing or replacing your vehicle if it was damaged, totaled or stolen.
Nearly every state requires you to have a certain amount of bodily injury and property damage liability insurance. Additional coverages may be required depending on what state you live in and if you finance your car.
For example, in Illinois you’re required to carry uninsured motorist coverage in addition to liability coverage. In Kentucky you’re required to add personal injury protection (PIP).
No state requires you to purchase collision or comprehensive coverage, but if you have a loan on your car, your lender may require it.
More fatal crashes happen in summer than any other time of year. Between 2020 and 2021, more than 30% of all fatal crashes happened between June and August.
We found that the percentage of fatal crashes that happen in summertime is higher in colder, northern states and lower in warmer, southern ones. For example, 41% of all fatal crashes in Vermont happen in summertime compared to 23% in Florida.
A car insurance premium is how much you pay your insurer for coverage for a set period of time, often six or 12 months.
The amount of your car insurance premium is based on factors such as your age, driving record, credit score (in most states), location and discount eligibility. It can also change over time. For instance, if you’re at fault for an accident or get a speeding ticket, you may see a higher premium when you renew your policy.
A car insurance deductible is the amount of money an insurer “deducts” from a claims payout for certain types of claims, namely collision and comprehensive insurance, personal injury protection and uninsured motorist coverage claims.
When you purchase car insurance, you choose your deductible — options typically include $250, $500, $1,000 and $2,000. The higher your deductible, the lower your car insurance rates. Lower deductibles lead to higher insurance rates because the insurer takes on more of the financial risk associated with a claim.
Say for instance a tree falls on your car causing $5,000 worth of damages and you file a comprehensive claim for repairs. If you have a $500 deductible, your insurer will issue you a claim payout of $4,500. If you have a $2,000 deductible, your insurer will issue a $3,000 payment.
USAA has the best car insurance rates. On average, a USAA driver with a clean driving record pays around $1,364 per year for coverage, or $662 below the national average of $2,026 per year. However, USAA coverage is limited to military community members and their eligible family members.
If you’re not eligible for coverage through USAA, consider Nationwide. Good drivers pay an average of $1,436 for coverage through Nationwide, $590 less than the national average.
Before you purchase a policy, get several quotes to make sure you’re getting the best car insurance rates for your driver profile. The table below provides rates from the best cheap car insurance companies to help you get started.
Consumers shopping for car insurance in 2024 can expect higher prices, according to Mark Friedlander of the Insurance Information Institute (Triple-I).
“Car insurance rates are expected to continue to increase in 2024 due to costlier repairs, driven by parts shortages and higher costs of labor, as well as low inventories of vehicles, which generates higher costs of replacing totaled cars,” Friedlander said.
One of the best ways to navigate increasing rates is to get multiple quotes from the best auto insurance providers. Then compare car insurance quotes, coverage features and benefits and car insurance reviews to find the car insurance companies best suited for your needs.
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Editor’s Note: This article contains updated information from previously published stories:
- Coronavirus auto insurance refunds: Here's what you need to know
- GM to offer OnStar auto insurance, promising lower rates the safer you drive
- Coronavirus relief: Allstate, USAA extend customer refunds for insurance policies through June
- Auto insurance rates climb as number of cars, distractions rise
- Drivers in these states could see the biggest discount on car insurance if they switched
- Car insurers don’t care if you drive well; tips on saving
- Do red car owners pay more for car insurance?
- Survey: Louisiana car insurance costs most, Maine least
- Honda kills the Clarity Electric vehicle as sedan sales continue to struggle
- Cellphone use causes over 1 in 4 car accidents
- If you hate auto insurance, you’ll love driverless cars
- These are the 10 most (and least) reliable cars of 2020, according to Consumer Reports
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
