The 6 Best Car Insurance Companies (2022)

The 6 Best Car Insurance Companies (2022)

The 6 Best Car Insurance Companies (2022), Find the Best Companies in Your State, The best car insurance company for your situation will depend on your location. A great way to save money on car insurance is to compare quotes from multiple insurance companies in your area.

Best overall car insurance company: State Farm

State Farm

The good

  • Rates are 41% cheaper than national average
  • Top customer service scores from our editors and JD Power

The bad

  • May require an agent to finalize policies
  • High rates for drivers with DUI or poor credit

When shopping for car insurance, two of the most important factors to consider are price and customer service.

State Farm offers very affordable rates and ranks as one of the best car insurance companies for general customer service and for claim satisfaction.

If you have to make a car insurance claim, you can expect some extra costs and headaches, and you will want a company that guarantees a smooth claims process. The company received above-average scores from J.D. Power for overall customer satisfaction, shopping experience and claims satisfaction.

State Farm receives fewer customer complaints than its competitors according to the National Association of Insurance Commissioners (NAIC) complaint index. In addition, our editors awarded State Farm four and a half out of five stars — a rating that encompasses customer satisfaction scores, value and coverage options.

Insurer
Editor’s rating
J.D. Power claims rating
State Farm
862
Geico
833
Nationwide
814
Progressive
830
Allstate
825
USAA*
884

*USAA is only available to military members, veterans and their families.

Find the Best Cheap Auto Insurance in Your Area

Currently insured?

State Farm also received the highest financial stability rating from AM Best — A++. That means that the company has a superior ability to pay out claims, even in difficult economic times.

With State Farm, drivers don’t have to pay more for excellent customer service. It is one of the most affordable large insurance companies in our sample. A full coverage policy costs $1,310, 41% less than the national average.

As with all insurers, rates can vary widely depending on the driver. Shoppers looking for strong customer service should get a quote with State Farm and balance the pros and cons against other providers.

  • ValuePenguin editor’s rating: 4.5/5
  • AM Best financial strength rating: A++ (Superior)
  • J.D. Power overall customer satisfaction rating: 862

Alternate best car insurance company for customer service: Farm Bureau

Drivers should not always compare major national insurance companies. Local insurers can often provide an equal or better customer service experience due to more personalized one-on-one attention.

The state insurance affiliates of the American Farm Bureau Federation are usually a great choice for shoppers seeking excellent customer service. Farm Bureau Insurance affiliates often rank among the best companies for any given state based on our editor’s rating and J.D. Power customer satisfaction scores.

Best car insurance company for affordable coverage: Erie

Erie

The good

  • Cheap rates for minimum and full coverage policies
  • Excellent customer service

The bad

  • Service is limited to 12 states and the District of Columbia

The price you pay for auto insurance is important. With many insurers offering similar levels of customer service and types of coverage, rates should definitely factor into your decision. If you’re shopping for the cheapest possible car insurance, we found that Erie has the most affordable rates on average.

Erie offers the best rates across multiple coverage levels, making it one of the best insurance companies for drivers looking to save money.

Type of policy
Erie average annual premium
National average annual premium
Minimum coverage $503 $875
Full coverage $1,379 $2,208

Drivers looking for a minimum coverage policy — one that only meets the insurance minimums required by their state — get the most savings with Erie on average. Its policies, adjusted for the minimum requirements in each state, are 38% cheaper than the national average.

Full coverage insurance is also very affordable from Erie. The company charges $1,379 per year, which is 43% cheaper than the national average.

Unfortunately, Erie Insurance is only available in 12 states and DC . Customers looking for cheap insurance outside these states should consider alternate recommendations.

  • ValuePenguin editor’s rating: 4.5/5
  • AM Best financial strength rating: A+ (Superior)
  • J.D. Power overall claims satisfaction rating: 880

Alternate best car insurance companies for affordable minimum coverage: Farm Bureau Insurance, American Family and State Farm

Given how restricted Erie Insurance is in availability, individuals looking for cheap car insurance could also consider Farm Bureau Insurance, American Family and State Farm. All three rank among the most affordable for both minimum and full coverage policies.

Farm Bureau Insurance is available wherever an affiliate of the American Farm Bureau Federation does business, while State Farm is offered in most states.

Company
Minimum coverage
Full coverage
Farm Bureau $472 $1,576
State Farm $532 $1,310
American Family $634 $1,755
National average $875 $2,208

Best car insurance company for good or young drivers: Root

Root
The good
  • Cheap rates for high-risk drivers & teens
  • Big discounts for safe drivers

The bad

  • Available in 31 states
  • 85% more NAIC customer complaints than competitors

Drivers are usually rewarded for having an excellent driving record, but individuals in high-risk demographics may find that their insurance rates are still extremely high. For example, drivers in their teens and early 20s pay more for car insurance than most other drivers, even if they’re exceptionally safe on the road.

Root is relatively unique because its car insurance rate calculations are almost entirely based on measuring driving behavior, not your demographics.

Drivers who perform well based on select driving behaviors, such as braking habits and speed, can get big savings with Root compared to a traditional insurer.

Since young drivers are statistically more likely to get in an accident, the demographic as a whole faces high car insurance rates. Root lets you prove you’re a safer driver than your peers.

However, there are some risks and downsides associated with Root.

  • Poor customer service: According to the National Association of Insurance Commissioners (NAIC), it receives more customer complaints than competitors.
  • Limited coverage options: Its policies come with fewer optional add-ons, like gap insurance and rideshare insurance, than policies through other insurers.
  • ValuePenguin editor’s rating: 3.5/5
  • AM Best financial strength rating: N/A
  • J.D. Power overall claims satisfaction rating: N/A

Alternate best car insurance company for young drivers: State Farm

If you’re a young driver, then you may not want an insurer tracking your driving habits. In that case, you should look for an insurer that tends to have low rates for young drivers.

The cheapest widely available insurer for young drivers is State Farm.

On average, Erie is the cheapest insurer for drivers aged 18 to 25. However, Erie has limited availability across the country.

Young drivers looking for affordable rates should always get auto insurance quotes from multiple insurers.

Best car insurance company for drivers with an accident history: Farm Bureau

Farm Bureau
The good
  • Cheap rates for drivers with an accident
  • Top satisfaction scores from our editors and J.D Power

The bad

  • Average $50 annual fee per year to become a Farm Bureau member

If you have a recent accident in your driving history, insurers are going to charge you higher rates. However, they won’t all penalize you to the same degree.

Farm Bureau raises rates by 34% when drivers have an at-fault accident in their recent history — 6% less than average.

Using rates pulled from all over the country, we found that Farm Bureau only increases prices by $534 per year for a full coverage policy after an accident. Below we list the insurers with the smallest and largest rate changes.

Company
Clean record
One accident
Percentage increase
State Farm $1,310 $1,628 24%
Farm Bureau Insurance $1,576 $2,110 34%
Allstate $2,349 $3,610 54%
Geico $1,917 $3,166 65%

Rate change is after an at-fault accident causing $2,000 in property damage.

  • ValuePenguin editor’s rating: 4.5/5
  • AM Best financial strength rating: A (Excellent)
  • J.D. Power overall customer satisfaction rating: 856

Best car insurance company for drivers with bad credit: Nationwide

Nationwide
The good
  • Cheap rates for drivers with poor credit
  • Good customer support ratings

The bad

  • Higher than average rates for most other customers
  • Auto & home bundles not available in every state

Unless the practice is banned in your state, your credit score can have a major impact on the price of your auto insurance policy. Every insurer calculates its own credit-based insurance score and uses it to adjust its base rates. In many cases, drivers with poor credit pay twice as much for car insurance as individuals with an excellent credit score.

Among major insurers, Nationwide penalizes drivers the least for having a below-average credit score when compared to rates for drivers with an excellent credit score.

Nationwide only increases rates by 52% when a driver goes from having a very good credit score to a poor credit score.

Category
Company
Annual rate with poor credit
Annual rate with very good credit
Difference
Insurers that penalize poor credit the least Nationwide $2,698 $1,772 52%
Farmers $3,650 $2,182 67%
Allstate $3,431 $2,016 70%
Insurers that penalize poor credit the most State Farm $2,859 $874 227%
Erie $2,846 $1,051 171%
Travelers $3,208 $1,511 112%
  • ValuePenguin editor’s rating: 4/5
  • AM Best financial strength rating: A+ (Superior)
  • J.D. Power overall customer satisfaction rating: 814

Best car insurance company for military members and veterans: USAA

USAA

The good

  • Cheapest insurer in most states
  • Highly rated customer service

The bad

  • Only military members and their families are eligible
  • Lengthy online quote process

Year after year, USAA combines the best of both worlds: It’s one of the most affordable auto insurance companies and has one of the best customer service reputations in the industry.

If you’re an active-duty military member or veteran who is eligible, USAA should be one of the first insurers you get quotes from, given its low rates and quality service.

According to the National Association of Insurance Commissioners (NAIC), USAA receives fewer complaints from policyholders than its competitors. The company also holds the highest J.D. Power claims satisfaction score.

Beyond its service and rates, USAA also offers discounts that cater to the lifestyles of service members. If your vehicle is garaged on a military base, you can get a discount of 15% on the cost of comprehensive insurance. The company also has a vehicle storage discount that can save policyholders up to 60% off their premium if their vehicle is stored in a secure location while not used, meaning deployed policyholders can get coverage at a discount.

  • ValuePenguin editor’s rating: 4.5/5
  • AM Best financial strength rating: A++ (Superior)
  • J.D. Power overall customer satisfaction rating: 884

Top Rated Car Insurance Companies

The key to finding the best car insurance is to comparison shop and research multiple insurers. Besides our top rated insurance picks, you have dozens of other companies to choose from that offer affordable rates and great customer support.

admin

Leave a Reply

Your email address will not be published.