Money Research Collective’s editorial team solely created this content. Opinions are their own, but compensation and in-depth research determine where and how companies may appear. Many featured companies advertise with us. How we make money.
8 Best Car Insurance Companies
By James F. Trumm MONEY RESEARCH COLLECTIVE
Bundling, paperless, up-front payments, AutoPay, good driving, young drivers, having anti-theft devices, loyalty and legacy discounts
Mobile app, Car Connection tool
Bundling, multiple vehicles, installing anti-theft devices, automatic and paperless statements, loyalty rewards, teen driver discounts
Mobile app, Name Your Price tool, car insurance calculator, Snapshot tool
Bundling, multiple vehicles, Drive Safe & Save telematics program, defensive driving course completion, vehicle safety features
Mobile App
Bundling, good student and students away from home, automatic, paperless, on-time payments, shared family car, anti-theft, anti-lock brake and passive restraint systems, hybrid/ electric vehicles, military members and essential service professionals
Mobile App
Bundling, vehicle safety and anti-theft devices, automatic and paperless billing, safe driver rewards, defensive driving course completion, good student driver (ages 16-24)
Mobile app, SmartMiles, Smart Ride
When you’re involved in a car accident, your safety and health – and that of your family – should be the only thing on your mind. It’s not the time to worry about the ins and outs of your car insurance. That’s why it’s so important to do some research before an accident occurs, and put as much work into finding the best car insurance as you would to find the best vehicle itself.
Unfortunately, that isn’t always easy. A number of factors, including your age, zip code, driving record, and even bad credit can make the task of finding an affordable policy daunting. That’s why we sifted through an array of offerings from car insurers to find the best auto insurance companies of 2022.
Our Picks for the Best Car Insurance Companies
- Amica Mutual – Best for Low Premiums
- Progressive – Best for Customizable Premiums
- State Farm – Best for Young Drivers
- Farmers – Best Discount Availability
- Nationwide – Best for Altering Existing Policies
- GEICO – Best Mobile App
- Allstate – Best Usage-Based Insurance Program
- USAA – Best for Military Members
Best for Low Premiums: Amica Mutual
Why we chose it: Unlike most of its competitors, Amica Mutual is affordable for all driver demographics, including teens. Their rates consistently come in below the national average. The provider also offers more than 15 types of discounts, which can help lower your rate even further, which helps to make them one of the cheapest car insurance companies out there.
- 15+ discounts for drivers
- Option to reduce or eliminate your deductible
- Some policy types aren't available in Alaska or Hawaii
- Few local or physical offices
Amica’s premiums are below the national average, even if you’ve gotten a speeding ticket, or have a teen driver on your policy. They offer all the essential auto insurance options you’d expect, such as collision, medical payments, and comprehensive coverage. But Amica also offers additional coverage, including gap, full glass, roadside assistance, and rental reimbursement. The company also features an accident forgiveness plan.
Amica has discounts for drivers who use autopay, bundle their policies, are good students, are accident-free, and own vehicles with certain safety features.
Their Platinum Choice Auto package is a premium product that includes new car replacement coverage, glass replacement without a deductible, rental car insurance coverage with no daily limit, and perks such as credit monitoring. Drivers can also earn Advantage Points with Amica’s Good Driving Rewards coverage and use them to reduce or even eliminate their deductible.
Best for Customizable Premiums: Progressive
Why we chose it: Progressive’s innovative “Name Your Price” tool was the first of its kind in the industry. This unique insurance product enables drivers to customize an auto insurance policy for their budget. Progressive also offers 13 driver discounts.
Progressive stands out among competitors for its unique Name Your Price tool. While other auto insurance companies tell customers how much they’ll have to spend to get the types of coverage they want, Progressive flips the script and allows customers to tell the company what they can afford to pay and then shows how much coverage that will buy.
Progressive customers can save money even more with discounts for teen drivers, good students, multi-policy, and homeowners. Customers who chose to receive their policies and billing statements via email will also pay less (though this discount is not available in California).
Good drivers are rewarded by Progressive’s Snapshot program. The free service collects (via a smartphone app) information on your driving habits, including your speed, how much you drive, and when you drive. Progressive then uses the data to adjust your insurance rates down when you renew if your driving merits that. (However, unlike some such programs, your rates can also increase if the data gathered by the app suggests you’re a poor driver.)
Best for Young Drivers: State Farm
Why we chose it: State Farm offers one of the most generous good student discounts in the industry – up to 25%. The company’s Steer Clear program rewards safe drivers under 25 with discounts of up to 15%. Finally, its Drive Safe & Save app can save young drivers up to 30%.
When it comes to insuring students, no other company compares. State Farm offers a good student discount of up to 25%, which can last until the driver turns 25 – even if they’ve already graduated from college.
If the student is under 25, they can also participate in the Steer Clear program, which uses an educational app to reward safe drivers with a discount of up to 15%. This app requires users to complete five training modules that consist of videos, driving scenarios, and quizzes. Participants must also complete five hours of driving in at least 10 trips. Drivers are awarded a certificate of completion in-app when they’ve successfully finished the program, which qualifies them for the discount.
Safe drivers can also benefit from State Farm’s usage-based program called Drive Safe & Save. It calculates discounts based on your mileage and safe driving measurements such as smooth acceleration and braking. You’ll get up to a 30% discount once State Farm has analyzed your driving behavior – as long as you drive safely.
Best Discount Availability: Farmers
Why we chose it: Farmers offers an unusually long list of 23 different discounts for customers – from those for veterans and essential workers to students and electric car owners.
Farmers offers more discounts than any other insurer we reviewed. Their discounts benefit drivers who bundle their insurance, have more than one car, have a clean driving record, own a home, drive a hybrid or electric vehicle, and own a vehicle with advanced safety options.
Farmers also offers Signal, a program that uses an app to track your driving habits. Just downloading the app gets you a 5% discount on your policy. Each time you renew your policy, the discount can increase by 15% or more, depending on a safe driving score that’s computed by the app. Within the app, drivers can also activate CrashAssist, a feature that uses your cell phone’s sensors to detect possible car crashes and alert emergency services.
Best for Altering Existing Policies: Nationwide
Why we chose it: With Nationwide’s unique “On Your Side” annual review, customers can be sure they’re always getting the best price and have the opportunity to alter their policy if needed.
Every year, and after major life events, Nationwide allows customers to review their auto insurance policy to determine whether or not it is eligible for new discounts. This enables Nationwide customers to modify their policies in order to get lower prices, as well as enhanced coverage.
With the Vanishing Deductible program, your deductible is reduced by $100 every year you remain accident-free (up to $500). Thanks to SmartRide, safe drivers can earn further discounts of up to 40% for good driving behavior as monitored by an app.
Nationwide also recently introduced Work From Home Insurance. This innovative option combines auto coverage with identity theft and home or renters policies. As you probably guessed, it’s designed for drivers who work remotely and are driving much less.
SmartMiles can also save you money if you’re driving less. This pay-per-mile program charges a base rate plus a variable premium based on how many miles you drove during the previous month. Unfortunately, it’s only available in certain states.
Best Mobile App: Geico
Why we chose it: GEICO has an intuitive mobile app that allows users to access digital insurance cards, connect with a virtual assistant, request roadside assistance and file claims. It even connects to CARFAX.
GEICO’s free mobile app is unparalleled. It allows easy access to your digital ID cards, and also adds them to your Apple Wallet. You can also request roadside assistance, use the Easy Photo Estimate feature to submit photos of vehicle damage, get repair estimates and check out your car’s history on CARFAX.
GEICO’s long list of car insurance discounts means there’s probably one out there that will benefit you. They offer discounts for owning a newer vehicle, having certain safety equipment, getting good grades, and for being a member of the U.S. military, a federal employee, or a homeowner.
GEICO’s Drive Easy Program further rewards safe drivers. It uses a phone app to track habits such as speeding, hard braking, or using your phone while driving. Assuming you’re not doing any of those things, you’ll be rewarded.
Best Usage-Based Insurance Program: Allstate
Why we chose it: Allstate’s Milewise program allows customers to save who drive infrequently. This is a significant benefit to the many people who are driving less in today’s work-from-home environment.
Aside from popular features such as accident forgiveness and Deductible Rewards, Allstate offers two programs to help customers save: Milewise and Drivewise, both of which monitor your driving using telematics.
Drivewise rewards policyholders with discounts of up to 40% based on driving info collected through Allstate’s device. Milewise charges drivers a base rate plus a per-mile rate. The base rate will be calculated by taking into account your driver profile and driving record. The per-mile rate is usually a few cents per mile. Unfortunately, this option is currently available in only 13 states.
Best for Military Members: USAA
Why we chose it: This insurance is only available to members of the military, their immediate family members, and veterans. It offers some of the lowest national rates, making it a great option for those who qualify.
USAA is the go-to insurance option for active military members, their families and veterans. In addition to their affordable rates and high customer satisfaction ratings, USAA offers accident forgiveness, rideshare insurance and car replacement assistance.
USAA offers additional discounts to safe drivers (up to 30%) through their SafePilot app that tracks driving behaviors – and doesn’t raise your rates if your driving is found to be unsafe. (But SafePilot is unavailable in a number of states, including New York and California.) If you’re storing an insured car while deployed or garaging a vehicle on a military base, you can receive further discounts of up to 60%.
How We Found The Best Car Insurance Companies
We considered a total of 23 insurers to find the best car insurance companies of 2022. All of these companies were included on the NAIC’s 2020 Property/Casualty Market Share report for Private Passenger Auto. They also made the cut for J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study. To narrow down the list, we only looked at companies with minimal private passenger policy complaints reported by the National Association of Insurance Commissioners (NAIC).
Other variables we considered in our methodology included:
- Financial stability. An insurer needs to have superior financial strength ratings to ensure that they can reliably pay out your claims.
- Discounts. Companies with ample discounts tailored to your unique situation can help you get the coverage you need without going over your budget.
- Technology. Companies with telematics programs and those who allow policyholders to file car insurance claims via apps got the best rating with us. Many of those listed above also use automation to provide car insurance quotes and process claims 24/7.
- Customer experience. Dealing with insurance companies is frequently a stressful event. To try to minimize that, we carefully reviewed customer satisfaction rankings as reported on J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study.
Summary of the Best Car Insurance Companies
- Amica Mutual – Best for Low Premiums
- Progressive – Best for Customizable Premiums
- State Farm – Best for Young Drivers
- Farmers – Best Discount Availability
- Nationwide – Best for Altering Existing Policies
- GEICO – Best Mobile App
- Allstate – Best Usage-Based Insurance Program
- USAA – Best for Military Members
