Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Dec 10, 2020

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Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

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Car Insurance Comparison Chart
Company NameYear FoundedA.M. Best RatingsMarket Share
Allstate1931A+9%
American Family1927A2%
Farmers1928A4%
GEICO1936A++13%
Liberty Mutual1912A5%
Nationwide1925A+3%
Progressive1937A+11%
State Farm1922A++17%
Travelers1853A++2%
USAA1922A++6%
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Compare car insurance companies with our car insurance comparison chart, which shows the best auto insurance companies and their market shares.

The side-by-side comparison statistics demonstrate each company’s status as a top provider in the United States. But there’s more to it than that.

Read through our guide to learn more about car insurance comparisons and how you can use the tools in our guide to help you save money on car insurance.

Enter your ZIP code into our FREE online tool above to compare car insurance companies’ rates in your area. Continue reading to see the list of car insurance companies in the U.S. and learn more about them.

What is the cheapest car insurance company?

We’ve conducted some research and found sample car insurance rates from the nation’s top insurance companies.

Average Annual Car Insurance Rates of the Top Ten Car Insurance Companies
CompanyAverage Annual Car Insurance Rates
USAA$2,537
GEICO$3,214
State Farm$3,260
American Family$3,443
Nationwide$3,450
Progressive$4,036
Farmers$4,194
Travelers$4,435
Allstate$4,888
Liberty Mutual$6,073
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Based on our research, USAA car insurance has the cheapest car insurance rates. However, only military service members and their immediate families are eligible to receive USAA insurance policies.

The two other cheapest car insurance companies are GEICO and State Farm.

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What are the 10 best insurance companies?

The top 10 best insurance companies are:

  • Allstate
  • American Family
  • Farmers
  • GEICO
  • Liberty Mutual
  • Nationwide
  • Progressive
  • State Farm
  • Travelers
  • USAA

The average annual rates are different from state to state. Each state has its own unique coverage limits, population density, and risks. Car insurance companies will issue different rates based on these factors.

What is the best rated car insurance company?

It’s not in the top 10 car insurance companies, but Amica Mutual has been rated as the best company overall.

You’ve seen the A.M. Best ratings of each company. It’s really difficult to tell which company is best since they’re all rated as excellent. The best company depends on your needs.

Car insurance is a competitive market, and the only way to know which company is best for you is to read reviews, look at ratings, and compare prices. Read on to learn more before you decide.

How are car insurance companies ranked?

Several organizations rank and rate insurance companies, and all of that data should be considered when making your car insurance choice.

Customer ratings will tell you how a company treats its customers. Financial ratings concern the stability of the company and its ability to pay claims.

When choosing a car insurance company, you should consider all types of ratings before making a final decision.

A financially secure company, for example, doesn’t necessarily have the best customer service.

Read on to learn more about some of the things you should consider when looking at insurance companies’ rankings.

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Car Insurance Company Customer Rankings

You can find customer rankings of car insurance companies in a variety of different places:

  • Your first stop should be your state’s Department of Insurance. An insurance company’s rating in one state can be very different from its rating in another state. Focus on ratings for your state and then check neighboring states if the results are too close for you to decide based on this information.
  • J.D. Power and Associates is an excellent source for finding insurance company ratings. The information that J.D. Power provides is entirely based on consumer ratings and nothing more.
  • In addition to these professional ranking sources, you can look for websites that offer reviews and rankings, like Consumer Reports. Choose independent sites that aren’t affiliated with any car insurance companies.
  • You can also find forums and such that don’t necessarily rank insurance companies but simply discuss customers’ personal experiences and give those with questions a place to ask them without getting the “company line” that they would receive if they called an insurance company directly.

When you use the Department of Insurance to look up a company, you’ll see a rating based on complaints. These complaints will usually be listed per 1,000 customers. For example, you might see 20 complaints per 1,000 customers.

When using these sites, keep in mind that irate customers are more likely to leave comments online than satisfied customers.

You can find rankings based on any aspect that you find essential, such as cost, claims processing speed, customer service, and customer satisfaction.

J. D. Power conducts an annual claims study and ranks companies based on those results.

You can find sites that offer in-depth reviews about insurance companies based on personal experience or in-depth research to give an accurate review of each company.

Remember, when you visit an opinion-based site, such as a forum, the users are often compelled to write because they are passionate about the subject. This does not always lead to the most objective information.

Have you been typing “car insurance companies near me” into a search engine? Use our FREE comparison tool instead. Enter your ZIP code to find affordable car insurance in your area.

Car Insurance Company Financial Rankings

Another way that insurance companies are ranked is by their financial stability. This ranking is not based on how well a company does with customer service issues or how quickly it pays a claim or any other factors.

Instead, this type of ranking is based solely on an insurance company’s ability to pay insurance claims.

Organizations like A.M. Best and Standard & Poor’s focus on this aspect.

In addition to ranking a company based on its ability to pay claims, these organizations will also offer a projection of future stability based on past and current performance.

These organizations are not funded by insurance companies. They will give an honest assessment of a company’s financial ability to pay.

You can access the information from either of these organizations online. However, you will have to search for the insurance company you want to research — neither organization offers a ranked list.

Getting the Best Car Insurance

Getting the best insurance should start with a car insurance quote. If you start by getting a quote, your research will go more smoothly.

For example, Progressive gets excellent consumer ratings, but they may not necessarily have the most affordable car insurance available.

You will want to choose a high-ranking company, but you don’t want to pay a fortune for your coverage.

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Finding the Best Companies for Car Insurance

Find the best car insurance for you by visiting third-party review sites, looking at financial ratings, and comparing car insurance quotes from multiple companies.

  • There is no single best car insurance company; the right company for you will depend on personal factors.
  • Finding the best car insurance company for you requires research.
  • Customer service and financial stability are important factors when choosing a provider.

Everyone has their own preferences, which are unlikely to change without good reason.

The fact is, car insurance is a very personal thing for most people.

It’s not uncommon for an individual driver to stick with the same car insurance company throughout their life, especially if they’ve never had any difficulties with them.

What should I be looking for in a car insurance company?

Determining which car insurance companies are the best requires a serious evaluation of your needs and desires.

For example, every insurance provider licensed to do business in your state will provide the legally required minimum coverage at a price comparable to its competitors.

But you must ask yourself whether or not you require more coverage than simply the state minimums. If you do, you’ll find that this is where most price differences begin to show up.

In terms of coverage, you should be looking for a company that will cover your needs at a price you can afford.

What about customer service?

Next to coverage and the bottom-line price, one other important factor to consider is customer service.

Hopefully, you never need to make a car insurance claim, but customer service turns out to be everything if you do.

After the stress of an accident, the last thing you need is to call your insurance company and be put on hold for an hour.

Look for a company you can trust to be attentive to your needs in a timely manner with a friendly, courteous, and caring attitude.

A good place to investigate customer service is through online car insurance company rating sites such as Moody’s or Weiss Ratings.

Many of these sites rate companies according to several criteria, including customer satisfaction.

Just be careful of comparison websites that get their information from user forums or other similar resources.

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Most Reputable Companies for Car Insurance

Three of the most reputable car insurance companies in the United States are GEICO, Nationwide, and Liberty Mutual. Compare car insurance companies’ quotes to reduce your bill by up to 20%.

  • GEICO provides insurance in all 50 states, and the company has been around for more than 70 years.
  • Nationwide started out offering car insurance to Ohio farmers and ranchers in 1926, and has since grown to offer insurance nationwide to drivers of all professions.
  • Liberty Mutual began as a workers’ compensation insurance company in 1912.

When looking for car insurance, it’s best to shop around for the best rates and coverage. You can request price quotes from several companies using an online insurance quote comparison website.

Going with the absolute cheapest car insurance quote isn’t always the best idea. You also want to make sure that the car insurance company is reputable.

Here are 10 of the most reputable insurance companies based on customer ratings and data from the Insurance Information Institute. Companies are listed in no particular order.

GEICO Car Insurance

GEICO provides insurance in all 50 states, and the company has been around for more than 70 years. GEICO ranks very high in the categories of response and repair, benefits and discounts, policy flexibility, customer service, and claims timeliness.

GEICO offers several discounts to its policyholders, including good driver, good student, anti-theft device, multiple-vehicle, multiple-line, loyalty, and advanced safety features car insurance discounts.

GEICO is one of the most affordable insurance companies because it operates through a non-agent model, which reduces overhead costs.

Progressive Car Insurance

Progressive has been a leader in the industry for more than 70 years. The company consistently receives top marks for its response, repair, and timeliness for customer service and claims.

Progressive policyholders can receive discounts such as good student, corporate affiliate, loyalty, advanced safety features, low-mileage, multiple-vehicle, anti-theft device, full payment, and automatic payment discounts.

Progressive stands out because of its concierge level of claims service and its immediate response vehicles, which report to the scene of an accident to help you with your claim.

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Esurance Car Insurance

Esurance does not have the 70 years of experience that some other car insurance companies have. However, the company has quickly made a name for itself in the industry since it was launched in December 1994.

Aside from its hassle-free policy-purchasing process and expedited claims processing, the company is known for its environmental initiatives.

Esurance consciously limits its paper consumption and takes steps to mitigate the effects of carbon dioxide pollution.

Nationwide Car Insurance

Nationwide started out offering car insurance to Ohio farmers and ranchers in 1926, and has since grown to offer insurance nationwide to drivers of all professions.

The company receives top marks for customer service and claims timeliness. Also, it stands out for its 100% guarantee on repairs for the life of the policyholder’s car.

Policyholders can take advantage of many discounts, including anti-theft devices, advanced safety features, loyalty, good driver, good student, multiple-line, multiple-vehicle, and corporate affiliate discounts.

State Farm Car Insurance

State Farm is another insurance company that started out by offering car insurance to a limited pool of farmer policyholders in 1922.

The company expanded its offerings to policyholders of all sorts and has become a large and reputable company.

The company consistently receives good marks in response and repair, customer service and claims timeliness, policy flexibility, benefits, and discounts.

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Liberty Mutual Car Insurance

Liberty Mutual began as a workers’ compensation insurance company in 1912 before branching out to offer car insurance in 1914.

The company is well known for its policy features, including cracked windshield repair and Total Liberty Care Facilities, which quickly take care of repairs.

While Liberty Mutual receives high marks for its policy offerings, its customer service is lacking.

Allstate Car Insurance

Allstate was founded in 1931 and was the first car insurance company to offer policies by direct mail. The company also provided policies through the Sears catalog.

Allstate rates well among companies for its policy flexibility. The company’s timeliness for customer service and claims misses the mark sometimes.

Allstate stands out among insurance providers by offering deductible discounts for each year that the policyholder goes without accidents. There are a lot of benefits to choosing Allstate car insurance.

USAA Car Insurance

United Services Automobile Association (USAA) started out in 1922 by offering car insurance to U.S. Army officers. At the time, this group had difficulty finding car insurance because they were viewed as high risk.

Today, USAA offers insurance policies to all Armed Forces members and those who served in the U.S. Armed Forces honorably.

The policies are also available to their immediate families. USAA stands out because of its extensive discounts and benefits. Read the list of USAA discounts to find out which ones you would qualify for.

Farmers Car Insurance

Farmers Insurance was founded in 1928 to offer lower insurance premiums to farmers and ranchers. The company has since expanded its customer base. It has become the third most popular provider of private passenger car insurance in the United States.

Today, the company is known for its accident-free good driver car discount, customized policies, and the Farmers fast quote service.

AAA Car Insurance

The American Automobile Association (AAA) is a top-rated not-for-profit organization that offers a wide range of services, including car insurance.

The insurance is not comprehensive, but it does provide savings by providing members with services such as towing and roadside assistance on its primary car insurance policies.

Aside from the excellent roadside assistance and AAA-approved automobile repair facilities, membership offers many additional benefits such as discounts for travel and retail. For a better understanding of how AAA works, read our AAA car insurance review.

There are many reputable car insurance companies and policies to choose from. The only way to find the policy that’s best for you is to do some price shopping.

Places to Compare Cheap Car Insurance Companies

Choosing the right car insurance provider is not easy. Customers need to consider the company’s reputation, financial strength, location, services, and prices.

  • When choosing an insurance provider, make sure you check out a variety of factors.
  • Comparing several companies will help you to find the best deal on insurance coverage.
  • Remember that price is not the only factor to consider when choosing an insurance policy.

Each company uses a different formula to assign risk and calculate your rates.

Insurance plans and premiums may also vary by state.

Average Insurance Rates by State

As mentioned above, the state in which you live can affect your rates. Check out the chart below to see average car insurance rates by state.

Average Monthly Car Insurance Rates by State
StateAverage Monthly Car Insurance Rates
Alabama$56.50
Alaska$80.17
Arizona$77.17
Arkansas$57.75
California$70.42
Colorado$68.92
Connecticut$82.58
Delaware$85.67
Washington D.C.$98.50
Florida$88.58
Georgia$65.33
Hawaii$70.25
Idaho$48.58
Illinois$61.92
Indiana$54.75
Iowa$46.25
Kansas$49.17
Kentucky$62.50
Louisiana$89.67
Maine$53.67
Maryland$78.75
Massachusetts$92.75
Michigan$77.58
Minnesota$65.92
Mississippi
$62.08
Missouri$57.08
Montana
$57.08
Nebraska$51.75
Nevada
$81.92
New Hampshire$66.00
New Jersey
$98.67
New Mexico$60.58
New York
$93.50
North Carolina$50.17
North Dakota$46.17
Ohio$55.75
Oklahoma$56.50
Oregon$61.42
Pennsylvania$70.75
Rhode Island$88.25
South Carolina$62.75
South Dakota$47.08
Tennessee$54.92
Texas$70.42
Utah$58.83
Vermont$58.25
Virginia$58.17
Washington$70.00
Wisconsin$51.25
Wyoming
$53.25
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As you can see, rates can differ greatly depending on where you live.

Compare Car Insurance Companies Online

There are hundreds of insurance companies to choose from. The key to comparison shopping is to identify your individual needs.

What types of car insurance coverage do you need? How much insurance can you afford to buy?

Know that some cars are more expensive to insure than others. If you have a sports vehicle, you’ll pay more for coverage than drivers with standard cars.

Insurance rates may also differ from one company to the next.

Many drivers are surprised to find out that some car insurance carriers offer similar policies at rates that vary drastically.

Make sure you look for a car insurance company that sells competitively priced policies featuring extensive coverage.

Open your favorite browser and search for a reputable insurance website. Many sites allow drivers to do a car insurance quotes comparison from local and national companies.

Factors to Consider When Choosing a Car Insurance Provider

If you find a car insurance policy that fits your needs and budget, contact the company you’re interested in.

Ask the agent relevant questions related to products and services.

  • Who are the company’s top clients?
  • How long has it been in business?
  • Does it offer online support?
  • Are claims handled on time?

Check the company’s industry ratings and financial strength, customer service, billing and payment options, technical help, email support, and rates.

Keep reading to learn about comparison shopping.

Why should I compare car insurance?

There are many reasons why you should compare car insurance. Purchasing insurance for all vehicles in your household is important and required in most states.

  • Compare the prices, financial stability, and reputation of any potential providers.
  • Most companies offer similar discounts, but some do not offer any.
  • High-risk drivers will probably have to do more research to obtain a good deal on insurance.
  • Take your time when comparing companies to make sure you get the best deal possible.

Many insurance providers compete to have your business, which is why it can be tough to choose a provider.

Not all car insurance companies are created equal, and not all of them provide the same products.

For you to end up with a quality company that will fulfill all of your insurance needs, you should take the time and energy to look more closely at a few and compare key points.

Car Insurance Rates Comparison

The rate quote is one of the best ways that drivers compare policies. Car insurance can be a big expense every year or month, depending on how often you pay your policy.

Finding the cheapest policy is the goal of many drivers, and saving money is the main reason to compare rates.

You can compare rate quotes in several ways. If you have time and prefer face-to-face interaction, making an appointment at a few local insurance offices may be the way to go. This is especially true if you have a limited understanding of insurance and how it works.

When you visit different agents, you’ll sit down with them and evaluate your insurance needs. This includes determining the best coverage for the vehicle you drive, how many people you’re insuring, and what deductible you can afford.

After collecting the necessary information, the agent can run it through the system and come up with a quote. The majority of offices will do this at no charge to you. After you visit a few offices, you can choose one based on policy price alone.

A quicker way to get free instant quotes is through the internet.

You can visit each company’s website separately, or you can go to one site that provides quotes for multiple insurance companies. The latter method is the most suitable, as you only have to enter all the pertinent information once.

How Car Insurance Rates are Determined

Rates may vary a bit between each insurance company. Ultimately your premium will be based on information provided by you about your vehicle and your driving history.

For example, those with a DUI on their record could pay thousands more annually than those with a clean driving record. Even if you have one accident on your record, it could cause your rates to increase exponentially. 

Suppose your driving record is less than stellar and/or you drive a fast luxury vehicle. In that case, you can spend hours trying to find a low insurance rate without success. Visit the Insurance Information Institute for more details on how policy rate is determined.

Other factors that can affect your insurance rates include your age, credit score, your marital status, and location.

For example, teen drivers can expect to pay much more in rates than their adult counterparts. Male drivers usually pay more, however, many states have made it illegal for car insurance companies to factor gender into their rates.

Married couples usually pay less than single or divorced individuals. Additionally, car insurance rates for homeowners are lower than than they are for renters, on average.

Although policy price may be a significant factor in choosing an insurance company, other things are important to compare as well. You may decide that paying a bit more for a policy with a higher quality company is worth it.

Find out how much car insurance is worth in your area with our FREE online quote tool. Enter your ZIP code to start comparing car insurance companies in your area.

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High-Risk Drivers

One group of drivers that may have to do a more thorough search for car insurance is high-risk drivers.

Suppose you’re going through the usual channels to find an insurance policy. You have a terrible driving record and/or have had your license suspended. In that case, there’s a good chance that many insurance companies will choose not to insure you.

Because having car insurance is required for most drivers, you will eventually find a policy, but you may have to get creative. Some insurance companies cater specifically to drivers that are considered high risk.

The best way to find and compare these companies is to do a general search online for high-risk car insurance.

When you’re comparing insurance policies for high-risk drivers, prepare to see very high rates. The only way these companies can offer you a policy is by asking you to pay a much higher premium so that their risk is diminished.

If these high-risk or non-standard companies choose not to insure you, contact your state insurance department to see what your state government offers.

Compare Car Insurance Companies: The Bottom Line

The main reason you want to compare different aspects of car insurance is that each company can vary greatly. A good company for your friend may not be a good fit for you.

It will take you a little more time to check into the companies, but fortunately, the internet makes it more accessible.

Most of the information you need is right at your fingertips and can be found at all times of the day. Taking the time to do your research will ultimately save you from frustrations in the future.

If you choose a company and find that it’s not meeting your insurance needs, don’t hesitate to do another comparison search.

There’s nothing wrong with switching car insurance companies, as long as you don’t have a coverage gap. Find the right provider, and after you sign the policy, your new agent can cancel your other one.

We can help you compare car insurance quotes. The best way to find reliable car insurance companies is to enter your ZIP code in our FREE car insurance comparison tool below.

Frequently Asked Questions: Compare Car Insurance Companies

Let’s answer a few frequently asked questions that are popular on car insurance comparison charts. These answers can also help you with choosing a car insurance company that’s best for you.

#1 – What are the 10 best insurance companies?

The 10 best insurance companies are Allstate, American Family, Farmers, GEICO, Liberty Mutual, Nationwide, Progressive, State Farm, Travelers, and USAA.

#2 – What is the best-rated car insurance company?

Although it’s not in the top 10 companies, Amica Mutual has been named the best-rated car insurance company by J.D. Power.

#3 – What are the worst insurance companies?

According to Consumer Reports, the worst-rated companies on its database are Esurance, Liberty Mutual, and Nationwide.

#4 – What company has the cheapest car insurance for seniors?

That would depend on what state you live in and car insurance discounts available to the senior driver. According to our research, Allstate and GEICO are the best car insurance companies for seniors.

#5 – Which type of car insurance is the cheapest?

Liability coverage is the cheapest type of insurance coverage.