Finding a great insurance company can save you money and frustration. We evaluated insurers to find the best car insurance companies based on rates, coverage features available, complaints and their collision claims processes.
The Best Car Insurance Companies
- American Family – Best for Low Level of Complaints
- Auto-Owners – Best Cost for Drivers Who Have Caused an Accident
- Nationwide – Good for Usage-based or Mileage-based Insurance
- USAA – Best for Military Members & Veterans
- Geico – Best Overall Car Insurance Rates
- Travelers – Best Price for Gap Insurance
- Westfield – Best Family Discounts
- Erie – Best Grade from Collision Repair Professionals
- Progressive – Best Price for Drivers With a DUI
- State Farm – Best Renewal Discount
What Is the Best Car Insurance Company?
Our analysis finds that American Family, Auto-Owners, Nationwide and USAA are the best car insurance companies overall, with 5 stars in our ratings. USAA auto insurance is available only to military members, veterans and their immediate family members.
The best car insurance companies for you will depend on your driving record, state and other individual factors. Shopping around to compare car insurance quotes will reveal the companies that can give you the best price for your situation.
Best for Low Car Insurance Rates: Geico
Geico comes in with the lowest rates nationwide that are available to the general public when we look at average rates across a variety of driving records and driver ages. (USAA is cheaper but membership is limited to car owners with a military connection.)
Drivers who have poor credit should compare quotes from Geico because of its competitive rates. Getting quotes is worthwhile if you have poor credit because many auto insurance companies charge much higher rates based solely on poor credit
Best for Low Complaints: American Family and Travelers
Complaints against a company are a reflection of customer service. Most complaints about car insurance companies revolve around problems with claims. American Family and Travelers have very low levels of auto insurance complaints, based on verified complaints made to state insurance departments around the country.
Best for Collision Repair: Erie
Erie receives the highest grade from collision repair professionals among the companies we analyzed, with a B+. Collision repair professionals get an inside look at which insurers try to cut corners and which ones have the smoothest claims processes.
Best for Drivers With a Speeding Ticket: Geico and Westfield
Drivers who have gotten a speeding ticket can expect it to affect rates for three to five years, depending on your insurance company and state. Geico and Westfield have the lowest rates for these drivers, among companies open to the general public. Westfield is a regional insurer that sells auto insurance in 10 states, mainly in the Midwest.
USAA also has low rates for military members and veterans who have a speeding ticket on their records.
Best for Drivers Who Caused an Accident: Auto-Owners
A “chargeable” accident can stay on your record and affect your car insurance rates for three to five years, depending on your state laws and/or car insurance company. Auto-Owners has the best average rates for drivers stuck in this spot, based on the companies we analyzed.
The severity of the accident, meaning the dollar cost of property damage and/or injuries, can affect the amount of your surcharge. Ask your auto insurance agent how long the surcharge will affect your car insurance rates.
Best for Drivers With a DUI: Progressive
You can’t avoid higher rates after a DUI, but Progressive offers the most competitive pricing for drivers in this situation, based on nationwide averages among the companies we analyzed.
Car insurance companies will usually pull your motor vehicle report when you’re getting a new quote or when your policy is coming up for renewal. This is their chance to adjust rates based on your recent history of problems, and a DUI conviction will be a costly insurance problem.
Best for Military Members: USAA
With its consistently good rates and variety of coverage options, USAA remains the best car insurance option for military members year after year. While the level of complaints about USAA auto insurance has been rising over the past couple of years, its current complaint level is about average for the industry.
Car Insurance by State
| State | Average annual cost for full coverage |
|---|---|
| Alabama | $1,809 |
| Alaska | $2,323 |
| Arizona | $1,696 |
| Arkansas | $2,061 |
| California | $2,462 |
| Colorado | $2,489 |
| Connecticut | $1,730 |
| Delaware | $2,462 |
| Florida | $4,326 |
| Georgia | $2,181 |
| Hawaii | $1,633 |
| Idaho | $1,021 |
| Illinois | $2,345 |
| Indiana | $1,454 |
| Iowa | $1,238 |
| Kansas | $1,693 |
| Kentucky | $1,979 |
| Louisiana | $3,629 |
| Maine | $1,216 |
| Maryland | $3,349 |
| Massachusetts | $2,333 |
| Michigan | $2,995 |
| Minnesota | $2,360 |
| Mississippi | $1,704 |
| Missouri | $2,323 |
| Montana | $1,770 |
| Nebraska | $1,538 |
| Nevada | $3,342 |
| New Hampshire | $1,411 |
| New Jersey | $2,240 |
| New Mexico | $2,104 |
| New York | $4,769 |
| North Carolina | $1,307 |
| North Dakota | $1,319 |
| Ohio | $1,112 |
| Oklahoma | $2,291 |
| Oregon | $1,459 |
| Pennsylvania | $3,600 |
| Rhode Island | $2,715 |
| South Carolina | $2,387 |
| South Dakota | $1,821 |
| Tennessee | $1,720 |
| Texas | $2,938 |
| Utah | $1,955 |
| Vermont | $1,037 |
| Virginia | $1,486 |
| Washington | $1,829 |
| West Virginia | $1,688 |
| Wisconsin | $1,905 |
| Wyoming | $1,341 |
| Source: Quadrant Information Services. 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 $500 deductible. | |
What Is Car Insurance?
Car insurance is a contract between you and the insurance company that provides you with specific coverage in exchange for your premium payments. Your car insurance policy is the contract that outlines what you can make claims for.
The best car insurance policies cover your liability (meaning damage and injuries you cause to others), damage to your own vehicle, and car accident injuries to you and your passengers.
If you fail to pay your car insurance bill, coverage lapses and any claims you make can be denied.
How Can I Find the Best Price on Car Insurance?
Knowing the factors that affect car insurance rates, such as your credit, can help you identify ways to save. Here are the easiest ways to find cheap car insurance.
Shop Around
To find the best price on car insurance, compare car insurance quotes from at least three companies for the same level of coverage. Because rates can vary wildly among companies, shopping around is the best way to get the biggest potential savings.
Choose a Higher Deductible
If you have collision and comprehensive coverage, choosing a higher car insurance deductible is another reliable method for lowering your insurance bill. (There is no deductible for liability insurance.)
Ask About Discounts
Many car insurance discounts will be automatically applied to your bill, such as “pay in full” discounts. But sometimes your insurance company won’t know you’re eligible for a discount, so it’s good to ask. For example, if you have a high school or college-age driver who gets good grades, ask about a good student discount.
How Much Does Car Insurance Cost?
Car insurance costs an average of $2,067 a year, based on Forbes Advisor’s analysis of rates from large car insurance companies. That’s $172 per month, on average.
| Coverage | Average annual car insurance cost for good drivers | Average monthly car insurance cost for good drivers |
|---|---|---|
| USAA | $1,412 | $118 |
| Auto-Owners | $1,628 | $136 |
| Geico | $1,716 | $143 |
| Westfield | $1,759 | $147 |
| Travelers | $1,852 | $154 |
| State Farm | $1,959 | $163 |
| Nationwide | $2,041 | $170 |
| Erie | $2,144 | $179 |
| Progressive | $2,157 | $180 |
| American Family | $2,176 | $181 |
| Farmers | $2,381 | $198 |
| Safe Auto | $2,647 | $221 |
| Allstate | $3,000 | $250 |
| Rates are based on a female driver, age 45, insuring a Toyota RAV4 with 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) and collision and comprehensive insurance with a $500 deductible. | ||
Factors That Impact the Cost of Car Insurance
Your car insurance cost will vary depending on several factors that typically include:
- Your driving record
- Your age and years of driving experience
- Where you live
- Car insurance coverage selections
- Deductible amount (if you buy collision and comprehensive coverage)
- Vehicle model
- Your car insurance history, such as whether you’ve had continuous coverage or lapses
- Your credit-based insurance score
What Types of Car Insurance Are Required?
Liability insurance is required in almost all states and is one of the main types of car insurance. Liability insurance pays for injuries and property damage you accidentally cause to others in an auto accident.
Uninsured motorist insurance is another type of car insurance that’s required in many states. If an uninsured motorist crashes into you, this coverage will pay you and your passengers’ medical bills. Although in states with a “no-fault” car insurance system, you’ll use your own personal injury protection (PIP) for the medical expenses of you and your passengers, no matter who was to blame for the accident.
Collision and comprehensive insurance is likely required for your car loan if you financed your vehicles. Even if you don’t have a car loan it’s smart to have these types of car insurance, especially on newer vehicles. Collision insurance covers car accidents with other vehicles or objects, such as a building or pole, and pays regardless of fault. Comprehensive auto insurance covers car theft, fires, damage from severe weather, floods, hail, falling objects, vandalism and striking an animal.
Overview of Car Accidents in the U.S.
Fatal car accidents are on the rise nationwide. In 2021, more than 39,500 fatal car crashes occurred on U.S. roads, a 10% increase from 2020. In some states, dangerous driving tends to be more common, putting you at greater risk when you get behind the wheel. But what state has the worst drivers?
To find out, Forbes Advisor compared all 50 states and Washington, D.C., across six key metrics. Our analysis identifies which states have the worst drivers and provides insight on the types of dangerous driving behavior in each state.
Key Takeaways
- Texas tops the list of worst drivers by state, while Washington, D.C., is home to the best drivers in the nation.
- Five of the top 10 states with the worst drivers are in the South, including Texas, Louisiana, Oklahoma, Kentucky and South Carolina.
- Seven of the top 10 states with the best drivers are in the East Coast area, including Washington, D.C., Vermont, Massachusetts, Connecticut, New Hampshire, New York and Rhode Island.
- Montana is home to the most drunk drivers involved in fatal car accidents (19.01 per 100,000 licensed drivers) and New Mexico reports the highest number of fatal car accidents involving a distracted driver (9.54 accidents per 100,000 licensed drivers).
Top 5 States With the Worst Drivers
1. Texas
Texas’ score: 100 out of 100
- Texas ranks second worst in the nation for two of the metrics we considered: fatal car accidents involving a drowsy driver (1.35 accidents per 100,000 licensed drivers) and fatal car accidents involving a driver who was driving the wrong way on a one-way street or on the wrong side of the road (1.53 accidents per 100,000 licensed drivers).
- Texas also reports the third highest number of drunk drivers involved in fatal crashes (17.24 per 100,000 licensed drivers).
- Texas has the ninth highest number of fatal car accidents involving a distracted driver (1.92 accidents per 100,000 licensed drivers).
2. Louisiana
Louisiana’s score: 89.32 out of 100
- Louisiana has the third highest number of fatal car accidents involving a distracted driver (3.74 accidents per 100,000 licensed drivers) and the eighth highest number of drunk drivers involved in fatal crashes (13.44 per 100,000 licensed drivers).
- Louisiana reports the 10th highest number of fatal car accidents involving a drowsy driver (0.9 accidents per 100,000 licensed drivers).
3. Kansas
Kansas’ score: 84.79 out of 100
- Kansas has the second highest number of fatal car accidents involving a distracted driver (4.46 accidents per 100,000 licensed drivers).
- The state has the third highest number of fatal car accidents involving a driver who disobeyed traffic signs, traffic signals or a traffic officer (1.47 accidents per 100,000 licensed drivers).
- Kansas is the fourth worst state for fatal car accidents involving a drowsy driver (1.28 accidents per 100,000 licensed drivers) and fifth worst for fatal car accidents involving a driver who was driving the wrong way on a one-way street or on the wrong side of the road (1.42 accidents per 100,000 licensed drivers).
4. Oklahoma
Oklahoma’s score: 80.53 out of 100
- Oklahoma has the seventh highest number of fatal car accidents involving a distracted driver (2.02 accidents per 100,000 licensed drivers).
- Oklahoma reports the eighth highest number of fatal car accidents involving a driver who failed to obey traffic signs or a traffic officer (1.27 accidents per 100,000 licensed drivers).
- The state is the ninth worst for drunk drivers involved in fatal crashes (13.02 drunk drivers were involved in a fatal collision per 100,000 licensed drivers).
5. Kentucky
Kentucky’s score: 78.96 out of 100
- Kentucky has the fourth highest number of fatal car accidents involving a distracted driver (3.37 accidents per 100,000 licensed drivers).
- Kentucky reports the eighth highest number of fatal car accidents involving a drowsy driver (0.93 accidents per 100,000 licensed drivers).
- The state also has the ninth highest number of fatal car accidents involving a driver who was driving the wrong way on a one-way street or on the wrong side of the road (0.74 accidents per 100,000 licensed drivers).
To identify the best car insurance companies we evaluated each company based on its average rates for a variety of drivers, the coverage options offered, complaints against the company and collision repair grades from auto body professionals.
Auto insurance rates (50% of score): We used data from Quadrant Information Services to find average rates from each company for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit, drivers caught without insurance, adding a teen driver, senior drivers and young drivers.
Unless otherwise noted, rates are based on a 40-year-old female driver with a Toyota RAV4 and coverage of:
- $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
- Uninsured motorist coverage of 100/300.
- Collision and comprehensive insurance with a $500 deductible.
Car insurance coverage options (25% of score): Any auto insurance company can provide the basics of liability insurance, collision and comprehensive coverage and other standard offerings. But it’s also important to have access to additional coverage types that can provide greater protection or cost savings. In this category we gave points to companies that offer accident forgiveness, new car replacement, vanishing deductibles, usage-based or pay-per-mile insurance and SR-22s.
Complaints (20% of score): We used complaint data from the National Association of Insurance Commissioners. Each state’s department of insurance is in charge of logging and monitoring complaints against the companies that operate in their states. Most auto insurance complaints center on claims, including unsatisfactory settlements, delays and denials. The industry complaint average is 1.00, so companies with a ratio below 1.00 have lower levels of complaints.
Collision repair (5% of score): We incorporated grades of insurance companies from collision repair professionals. We used data provided by CRASH Network, a weekly newsletter covering the collision repair and auto insurance market segments. CRASH Network’s Insurer Report Card used grades from more than 1,100 collision repair professionals to gauge auto insurers on the quality of their collision claims service.
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