Best 5+ Car Insurance in USA You Need To Know

The top 7 car insurance companies in the U.S. dominate 77% of the market, featuring well-known giants like State Farm, Geico, Progressive, Allstate, and USAA. Our MarketWatch Guides Team, using data from the National Association of Insurance Commissioners (NAIC), has analyzed these companies based on market share, coverage plans, costs, and customer satisfaction. This guide aims to help you identify the best auto insurance provider for your needs.

Key Takeaways

  • State Farm is America’s leading car insurance company.
  • Major insurers provide financial stability and diverse coverage options.
  • Comparing quotes from different providers is key to finding affordable car insurance rates.

Top 5+ Largest Auto Insurance Companies

Based on 2022 NAIC data, the 5+ leading car insurance companies in the U.S. cover 77% of the market. Here, we’ve listed the market shares of these major providers, accompanied by scores our editorial team derived from in-depth research.

Car Insurance ProviderNational Market ShareOverall Rating Out of 10.0*
1. State Farm16.84%9.3
2. Geico14.05%9.1
3. Progressive13.76%8.7
4. Allstate10.69%8.3
5. USAA5.92%9.2
6. Liberty Mutual4.95%9
7. Farmers Insurance4.55%8.4
8. Travelers2.11%9
9. American Family Insurance2.11%8.5
10. Nationwide1.99%8.7

Our Guides Auto Team established the ratings, and you can find details on our scoring approach at the article’s end. Additionally, many of these companies provide other insurances like home, renters, and life. By bundling car insurance with these other products, you might be able to enjoy savings.

Largest Car Insurance Companies: A Closer Look

The 5+ leading car insurance companies in the U.S. account for over 75% of direct premiums in the auto insurance sector. Below, we’ve outlined the market shares of these major providers, along with their average costs for both full and minimum coverage.

Largest Car Insurance Companies: A Closer Look

#1 State Farm: Editor’s Choice

  • Better Business Bureau (BBB) rating: A+
  • AM Best financial strength rating: A++
  • J.D. Power 2022 claims satisfaction score: 882 out of 1,000
  • Headquarters: Bloomington, Illinois

State Farm stands as the leading car insurance provider in the nation, holding 16.8% of the auto policy market. Renowned for its excellent customer service, the company’s reputation is reinforced by industry studies and numerous positive reviews. Although State Farm operates in all 50 states, they’ve ceased offering new policies in Massachusetts and Rhode Island.

Coverage

State Farm offers standard car insurance coverages like liability and comprehensive insurance. They also provide additional options, including roadside assistance, rental car reimbursement, and rideshare insurance. Moreover, for those interested in a usage-based savings scheme, State Farm presents its “Drive Safe & Save™” program. This app-based system determines rates by monitoring driving behaviors such as acceleration, braking intensity, driving times, speeding, and phone usage.

Cost

Data from Quadrant Information Services reveals that the average U.S. car insurance cost is $1,730 annually or $144 monthly for full coverage, and $635 yearly or $53 monthly for minimum coverage. These figures are based on a 35-year-old driver with a spotless driving record and a solid credit history, unless noted differently. Here’s a breakdown of the average prices for a State Farm insurance policy:

Coverage TypeState Farm Average Costs
Minimum coverage$543 per year or $45 per month
Full coverage$1,481 per year or $123 per month

#2 Geico: Affordable for Most Drivers

  • BBB rating: A+
  • AM Best financial strength rating: A++
  • J.D. Power 2022 claims satisfaction score: 874 out of 1,000
  • Headquarters: Chevy Chase, Maryland

According to the NAIC, Geico ranks as the second-leading car insurance provider in the U.S., holding 14.05% of the auto insurance market. Sporting a robust AM Best financial strength rating and a slightly above-average satisfaction score for claims, Geico stands out as a dependable and cost-effective choice for auto insurance.

Coverage

Geico provides typical car insurance options and additional features such as roadside assistance, rental car reimbursement, and mechanical breakdown coverage. Additionally, their “DriveEasy” program, available in most states, encourages safe driving by monitoring habits and offering related discounts.

Cost

Here are the national average prices for Geico’s minimum and full-coverage auto insurance policies:

Coverage TypeGeico Average Costs
Minimum coverage$468 per year or $39 per month
Full coverage$1,308 per year or $109 per month

#3 Progressive: Low Rates for High-Risk Drivers

  • BBB rating: A+
  • AM Best financial strength rating: A+
  • J.D. Power 2022 claims satisfaction score: 861 out of 1,000
  • Headquarters: Mayfield Village, Ohio

Progressive, ranking as the nation’s third-largest car insurance provider, holds 13.76% of all policies sold. Its commendable BBB rating and robust AM Best financial strength highlight its reliability in fulfilling insurance commitments. Yet, in the J.D. Power 2022 U.S. Auto Claims Satisfaction Study℠, Progressive’s score was below average, marking the lowest among the top five car insurance firms.

Coverage

Progressive provides a broad range of coverage options, including standard collision insurance and unique add-ons like loan/lease payoff and a deductible savings bank. Additionally, they offer a program called Snapshot®, which actively monitors and rewards safe driving habits, allowing drivers to earn further savings on their auto insurance.

Cost

On average, across the nation, Progressive’s rates for minimum and full-coverage insurance are outlined below:

Coverage TypeProgressive Average Costs
Minimum coverage$687 per year or $57 per month
Full coverage$1,611 per year or $134 per month

#4 Allstate

  • BBB rating: A+
  • AM Best financial strength rating: A+
  • J.D. Power 2022 claims satisfaction score: 889 out of 1,000
  • Headquarters: Northbrook, Illinois

Allstate ranks fourth among the top car insurance providers, holding a 10.69% market share. They offer a diverse range of coverage options and boast a solid J.D. Power claims satisfaction rating. Furthermore, every Allstate policy comes with a claims satisfaction guarantee, ensuring that if drivers aren’t pleased with the claims process, they can receive up to six months of premium reimbursements.

Coverage

Allstate provides the six essential car insurance types, complemented by extra coverages like new car replacement, accident forgiveness, and gap insurance. They also introduce two unique usage-based insurance programs: Drivewise® and Milewise®. Drivewise uses a mobile app to monitor driving habits, offering discounts for responsible driving, while Milewise operates on a pay-per-mile basis, combining a daily base rate with charges for additional miles driven.

Cost

You can find Allstate’s average rates for both full and minimum coverage car insurance in the table below.

Coverage TypeAllstate Average Costs
Minimum coverage$725 per year or $60 per month
Full coverage$2,088 per year or $174 per month

#5 USAA: Low Rates for Military

  • BBB rating: Not rated 
  • AM Best financial strength rating: A++
  • J.D. Power 2022 claims satisfaction score: 890 out of 1,000
  • Headquarters: San Antonio, Texas

USAA holds the position as the fifth-largest car insurance provider, capturing 5.92% of the market. They stand out for their affordable rates, robust financial health, and consistent high marks in J.D. Power customer surveys. Yet, it’s essential to note that only military members, veterans, and their immediate families can access USAA’s auto insurance offerings.

Coverage

USAA offers not only the standard car insurance options but also unique add-ons. These include features like accident forgiveness, car replacement support, rideshare coverage, and insurance for classic cars. They also have a telematics app named SafePilot™, which monitors driving habits and can potentially give users discounts of up to 30%.

Cost

Average costs for car insurance policies purchased from USAA are as follows:

Coverage TypeUSAA Average Costs
Minimum coverage$333 per year or $28 per month
Full coverage$1,054 per year or $88 per month

#6 Liberty Mutual: Good Programs for Young Drivers

  • BBB rating: A+
  • AM Best financial strength rating: A
  • J.D. Power 2022 claims satisfaction score: 870 out of 1,000
  • Headquarters: Boston, Massachusetts

Liberty Mutual ranks as the U.S.’s sixth-largest car insurance provider. They provide a range of discounts, especially beneficial for families with young drivers, such as good student and multi-car discounts. Additionally, their RightTrack® program monitors driving habits, offering drivers the chance to earn up to 30% off for safe driving.

Cost

To get a tailored quote from Liberty Mutual, it’s essential to contact them directly with details about your driving profile and insurance preferences. Unfortunately, our team couldn’t obtain a national average for both minimum and full-coverage policies from this provider.

#7 Farmers Insurance

  • BBB rating: A
  • AM Best financial strength rating: A
  • J.D. Power 2022 claims satisfaction score: 882 out of 1,000
  • Headquarters: Woodland Hills, California

Coverage

Ranked as the seventh-largest auto insurer in the U.S., Farmers Insurance presents distinctive options like customized equipment coverage and rideshare insurance, among others. They also have the Signal® app, which adjusts your premiums based on your driving behaviors.

Cost

On average, a minimum-coverage car insurance policy with Farmers costs $881 annually, and a full-coverage plan stands at $2,140 per year. Notably, these rates from Farmers Insurance are considerably above the usual prices for similar policies.

#8 Travelers: Most Coverage Options

  • BBB rating: A
  • AM Best financial strength rating: A++
  • J.D. Power 2022 claims satisfaction score: 854 out of 1,000
  • Headquarters: New York City

Coverage

Ranked as the 8th-largest car insurance company, Travelers stands out for offering the most coverage options. They provide unique add-ons such as loan/lease gap insurance, accident forgiveness, and named non-owner coverage. Additionally, like other top insurers, Travelers introduces a telematics savings program named IntelliDrive®.

Cost

Travelers’ minimum-coverage insurance typically costs $730 annually, which is above the national average. However, their full-coverage policy, priced at $1,669 per year, is slightly more affordable than the average.

How To Find the Best Car Insurance

To find the best car insurance, start by identifying your coverage needs. Use our recommended insurance companies list and these steps to guide you:

How To Find the Best Car Insurance
  • Determine Your Needs: Decide the types of car insurance coverage essential for you. Shopping for the exact coverage from various companies ensures meaningful comparisons. Only buy what’s necessary to keep costs low.
  • Shop Around: Compare prices from multiple insurers. Since each company has a unique way of assessing factors like age, driving experience, and vehicle type, this will show you the best price for your situation.
  • Think Beyond Big Names: Don’t just consider national brands. Sometimes, smaller regional companies, like Westfield, offer competitive rates or more discounts.
  • Purchase Confidently: Once you’ve evaluated coverage options and costs, buy your car insurance policy with confidence.
  • Re-evaluate Periodically: Insurance needs change over time. Review your policy regularly, especially after significant life changes like moving or buying a new car, to ensure you still have the best deal.

In essence, car insurance requires ongoing attention. What was ideal a few years back might not be the best fit now. Regularly revisiting your choices ensures you always have the right coverage at the right price.

How To Find the Best Price on Car Insurance

Understanding factors like your credit that influence car insurance rates can lead to potential savings. Here are straightforward strategies to secure affordable car insurance:

  • Comparison Shopping: Get quotes from at least three different companies for identical coverage levels. Given the significant rate differences between insurers, this is a key step for maximizing savings.
  • Opt for a Larger Deductible: By selecting a higher deductible for your collision and comprehensive coverage, you can effectively reduce your premium. Remember, liability insurance doesn’t carry a deductible.
  • Inquire About Discounts: While some discounts, like “pay in full” offers, may automatically apply, others might not. Always ask your insurer about available discounts. For instance, if you have a student with excellent grades, check if there’s a “good student” discount.

Types of Car Insurance

Types of Car Insurance

Liability Car Insurance

Liability car insurance is crucial as it covers the costs of damages you inflict on others, encompassing both property damage and injuries. This also includes covering lost wages and others’ pain due to accidents you’re responsible for. If you face a lawsuit for an accident you’ve caused, this insurance supports your legal defense and handles any settlements, but only up to your coverage limits. Thus, having ample coverage is vital. Remember, any damages exceeding your coverage fall on your shoulders. However, this insurance doesn’t cater to your personal injuries or damages.

Collision Car Insurance

Collision insurance covers damages to your vehicle regardless of the accident’s cause, whether someone hits you or you collide with an object. While you can claim damages through the at-fault party’s liability insurance, sometimes it’s more straightforward to use your own collision coverage instead of navigating another person’s insurer.

Comprehensive Car Insurance

Comprehensive insurance is crucial as it covers car damages not addressed by collision insurance, such as hail damage, fallen tree branches, fires, and flooding. Additionally, it compensates you if your car gets stolen. Typically, collision and comprehensive coverages are bundled together and aren’t usually sold separately.

Full Coverage Car Insurance

Full coverage car insurance refers to a policy that encompasses liability, collision, and comprehensive insurance. It provides a solid insurance foundation, covering a broad range of scenarios, even though other beneficial coverages can also be added.

Gap Car Insurance

Gap insurance is valuable for those with substantial car loans or leases. If your car gets totaled or stolen, this insurance covers the gap between your vehicle’s current value and what you still owe on the loan or lease. Essentially, if your car’s value drops below the loan balance, gap insurance steps in to cover the difference.

What Types of Car Insurance Are Required?

Most states mandate liability insurance, which covers injuries and property damage you unintentionally inflict on others during a car accident. 

Another essential coverage, uninsured motorist insurance, kicks in when an uninsured driver hits you, covering your medical expenses. However, in “no-fault” states, your own personal injury protection (PIP) covers your medical bills, irrespective of who caused the accident. For those with financed cars, collision and comprehensive insurance are often prerequisites. 

Even without a car loan, these coverages are wise choices, especially for newer cars. Collision insurance pays for damages from accidents with vehicles or structures, regardless of fault. 

On the other hand, comprehensive insurance safeguards against theft, fires, severe weather damages, and incidents like hitting an animal. 

Car Insurance Companies In US: FAQs

What are the 10 largest car insurance companies?

State Farm leads the list of the ten largest car insurance companies, followed by Geico, Progressive, Allstate, and USAA. Rounding out the list are Liberty Mutual, Farmers Insurance, Nationwide, American Family Insurance, and Travelers.

Which company has the best car insurance?

According to Forbes Advisor’s study, American Family, Auto-Owners, Nationwide, and USAA rank as the top car insurance providers. Our assessment took into account costs for diverse drivers, coverage options, customer complaints, and collision repair.

Remember, every driver’s requirements differ. Consider our analysis as a starting point to find the insurance company that aligns best with your individual needs.

How can I find the best price on car insurance?

To find the best deal, it’s essential to obtain quotes from various car insurance companies. By comparing, you can determine which ones offer the most competitive rates. Additionally, bundling your auto insurance with another policy like homeowners or renters insurance can lead to significant savings, as many companies offer discounts for multiple policies.

What car insurance discounts should I look for?

It’s straightforward to obtain discounts for vehicle safety features like airbags. If you need multiple insurance policies, consider purchasing from the same company to avail a bundling discount. Many companies offer good driver discounts, and if you have a teen or young adult driver, inquire about the good student discount. Additionally, simple actions like opting for paperless billing can also lead to added savings.

Is car insurance getting more expensive?

Auto insurance costs have been on the rise, with September 2023 seeing a 1.3% increase compared to August 2023, as reported by the Bureau of Labor Statistics (BLS). The BLS regularly monitors the average prices of goods and services, including car insurance.

From September 2022 to September 2023, there was a significant 18.9% surge in car insurance costs, marking one of the steepest hikes among all expenses the BLS tracks. And this trend doesn’t seem to be letting up. Since January 2022, car insurance costs have risen every single month, resulting in 21 straight months of price hikes.

This consistent climb in auto insurance rates stems from insurers facing higher claims costs. In turn, they transfer these additional expenses to their customers through elevated rates. Factors like more expensive car parts, labor, and medical bills are driving up these claims costs.

Our Methodology 

We prioritize delivering reliable and objective information, which led us to design a detailed rating system for ranking the top car insurance companies. By gathering data on numerous auto insurers, we assessed them on various key criteria, resulting in a comprehensive rating for each.

Here’s what influenced our rankings:

  • Cost: We considered both auto insurance rate estimates provided by Quadrant Information Services and potential discount opportunities.
  • Coverage: Insurers offering a diverse range of coverage options were more likely to cater to consumers’ varied needs.
  • Reputation and Experience: We evaluated insurers based on market share, expertise ratings, and their duration in the industry.
  • Availability: Companies that operate across more states and have minimal eligibility criteria secured higher scores.
  • Customer Experience: We factored in complaint volumes from the National Association of Insurance Commissioners (NAIC) and satisfaction ratings from J.D. Power. Additionally, our personal shopping analysis gave insights into the responsiveness and efficiency of each insurer’s customer service.

Through this method, we ensure a comprehensive and user-friendly guide to the best insurance providers.

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