The best car insurance usually means searching for a reasonable policy, but you must be aware of the quality of the service you will receive. The best firm is there for you in the event of need.
Car insurance is an extra layer of financial security that will help safeguard your financial assets from damage resulting from accidents. Car insurance is crucial for your financial health overall, and therefore finding the best firm for your needs is essential. To aid you in finding the right company, Bankrate analyzed average quoted rates sourced by Quadrant Information Services for many insurance companies. We also looked at discounts, options for coverage, digital resources, third-party customer satisfaction, and ratings on financial strength as we searched for the top car insurance companies.
The Best Car Insurance for 2022
1. USAA
What is the reason? USAA is the best overall choice for auto insurance
With the most impressive Bankrate Score of all auto insurance companies Bankrate has analyzed, USAA quickly makes our list of top insurance providers for their nationwide accessibility and superior customer service. It is not available for current or former military personnel and their family members. USAA is a top-scoring company in JD Power’s customer satisfaction surveys. Has a solid financial standing as assessed by AM Best, S&P, and Moody’s and continues to provide the cheapest auto insurance quotes available.
USAA gets top marks from the major rating agencies that are third parties for its customer service and financial robustness. Along with the lowest total insurance premium in the list of top insurers, consumers have access to numerous choices in terms of coverage, rewards, discounts, and specific circumstances like deployment for active-duty members. Although not all drivers are eligible for coverage from USAA however, the organization is an absolute favorite for thousands of families with military members across the nation.
Pros
- Outstanding customer care scores, as well as Ratings of financial strength
- Low average rates
- Options for military-specific coverage
Cons
- Only available to active duty military members, veterans, and immediate family members.
- A plethora of specific coverage options is known as compared to other carriers.
2. Clearcover
Why Clearcover is best for digital presence
Clearcover’s innovative technology-driven car insurance revolutionizes the insurance industry. It makes it a strong choice for anyone looking for the most advanced auto insurance experience compared to other insurance companies for cars. Clearcover’s approach to digital insurance permits it to offer highly affordable insurance policies.
Pros
- Cutting-edge technology
- Fast insurance quotes and rapid claim processing
Cons
- Only accessible only in the 20 US states.
- Limited data regarding customer satisfaction
Although it is only accessible to drivers from twenty states at present, Clearcover has begun to disrupt the insurance industry for automobiles by putting technology under the spotlight. Clearcover uses artificial intelligence-powered digital tools to its advantage, redefining how insurance quotes are made, purchased, and maintained. Clearcover’s highly rated mobile app places control over policies in the users’ control. The simple approach allows Clearcover to pay the majority of auto claims within less than a week, while some claims are capable of processing the same day.
3. Geico
Best for driving incidents
Geico’s history of being a reputable, household-name insurance provider is evident in its impressive Bankrate Score, one of the main reasons we chose Geico as a top business. The coverage is available to virtually any type of driver, which makes its insurance coverage accessible to those with poor driving records.
Pros
- Usually available to drivers at high risk
- Digitally acclaimed application along with mobile applications
- An array of discount offers
Cons
- Scores for customer service differ according to region
- Fewer coverage options
- Local agents are less local in number as compared to other insurance firms
Geico is among the few auto insurance providers that offer policies to drivers after high-risk events like DUI convictions. Although high-risk policies tend to be higher, the risky driver might also have difficulty finding coverage, particularly with big car insurance firms. Geico is a surprisingly accessible choice for the majority of people.
4. State Farm
Best overall coverage for automobile insurance
The largest national auto insurance company based on market share, the reach of State Farm, and standing in the market place it is among the top auto insurance companies that offer coverage to drivers across the nation in all states. The extensive network of local agents is a testament to its commitment to providing a range of commercial and personal insurance products for consumers.
Pros
- Extensive agent network in local areas
- Excellent financial strength
Cons
- It might not be accessible for high-risk drivers.
- Higher-than-average index score compliant following an index score that is compliant with the National Association of Insurance Commissioners (NAIC)
State Farm company boasts over 19,000 insured insurance professionals accessible in all communities in the US who can guide those who appreciate an expert opinion in discussing their insurance policy. Digital management solutions allow mobile access, including a highly rated app for mobile use that lets you submit auto claims and contact your agent.
5. Travelers
Best for personalized coverage
Travelers is a reputable insurance company with more than 150 years of experience in the insurance business for autos. Its robust network of independent agents and numerous options for endorsements, a wealth of savings options, and a track record of financial performance are a good choice for all drivers across the country.
Pros
- Independent agents available
- Competitive discounts
- Numerous options for policies
Cons
- Less than the average satisfaction score
Average insurance premiums for full coverage are slightly higher than the national average; however, this could be because the insurer offers so many ways to tailor your coverage according to your requirements. Options like replacement of your car as well as rideshare coverage, forgiveness for accidents, and gap insurance will make more money on your insurance policy. Still, they also offer financial protection against more diverse incidents. The customers do not receive a high rate of customer satisfaction with claims for travelers compared to other firms Bankrate has studied, and this could be worth considering before deciding whether to take out an insurance policy.
6. Erie
Best choice for robust coverage
We have included Erie in our top 10 list of the top auto insurance firms since this local insurer offers a wide range of various coverage options in its policies and rates highly compared to all other third-party companies we examined in our study. Erie also provides discount benefits and competitive rates for young drivers, who typically have the highest rates across all age groups. Erie’s impressive Bankrate Score contributes to its ranking in our top list of auto insurance companies in 2022. However, coverage isn’t offered nationwide.
Pros
- Rate Lock could allow for a steady increase in premiums.
- Highly-rated customer support
Cons
- Coverage is only available within 12 states
- Below-average rating for customer satisfaction with online insurance.
Erie offers a variety of kinds of coverage and features within its comprehensive coverage policies, which other insurers only offer as additional features. While it’s only accessible in twelve states, the firm offers extensive coverage and excellent claims service for drivers in service areas. Drivers can benefit from ridership insurance and accident forgiveness, and the Rate Lock feature to ensure that your rates remain consistent throughout the years.
7. Auto-Owners
Best for discounts
Auto-Owners is a different company with a good reputation for providing outstanding auto coverage. They also have two of the highest JD Power reports satisfaction ratings of any company in our list of top auto insurance providers. A wide variety of discount and coverage options are available to drivers from 26 states.
Pros
- High claims satisfaction among customers
- Low average premium
- Broad choice of options for coverage
Cons
- It is only available to 26 states
- No online quoting
Auto-Owners has an impressive selection of discounts that most drivers are eligible to get. The company offers three kinds of discounts for students, making it an excellent choice for parents of teens and young drivers with their insurance policy to take into consideration. Drivers can save money by obtaining an estimate before the expiration date of their current insurance policy or opting for the option of paperless billing and payment.
8. Amica
Best for claims satisfaction
According to Bankrate’s analysis, Amica’s outstanding claims service and customer-centric business model make it an exceptional choice for those looking for the most reliable auto insurance firm.
Pros
- Highly-rated customer support
- Unique dividend policies that can be incorporated into the HTML0 are accessible
- Low average rates
Cons
- There is no ridesharing coverage is offered
- Not available in Hawaii
Amica is ranked as the second-highest scorer in satisfaction with claims out of the top auto insurers studied by JD Power, with a score of 32 points higher than the industry-wide average. The claim center online lets customers quickly file claims, upload documents, and monitor the claim’s progress with just the click of a button. Customer service representatives are on hand to help policyholders at all times.
9. Nationwide
Best choice for coverage, even on a tight budget?
According to Bankrate’s analysis, Nationwide’s flexibility to tailor its coverage depending on individual requirements and its low cost of premiums solidifies it as the top auto insurance company in 2022. With a near-universal range and a site full of valuable insurance information, Customers are bound to get the information they require to tailor their Nationwide policy to meet their specific requirements.
Pros
- Two of the driving programs that are based on the user interface could provide highly customized rates
- Available in most states
Cons
- Service scores for customers differ according to region
- Few add-ons available
Security. The average annual cost for Nationwide is the second-lowest one on our list, just below USAA. But, Nationwide does not limit coverage only to those with a military affiliation, which means it’s an option to save money if you aren’t eligible for USAA. Furthermore, the company’s SmartRide and SmartMiles programs for telematics could aid you in earning discounts based on your good driving habits or provide the option of a flexible rate based on your usage of the vehicle. Coverage options for optional coverage aren’t like other insurers for autos that we have reviewed; however, personalization options give you protection for your finances.
10. Progressive
Best for digital policy management
Consumers have options to save money according to their preferences and budget with the Progressive policy in any part of the US. Progressive’s rate tools are easy to use, and a high level of customer satisfaction makes it one of the top automobile insurance choices. A financially solid firm supports it rated highly by third-party insurance agencies.
Pros
- Strong digital tools
- Unique points-based rewards program
- Two of the driving programs that are based on use can be used to help tailor rates
Cons
- Higher-than-average rates
- Scores of customer satisfaction vary depending on the region.
Progressive provides a range of options for motorists to save time and money by regulating their policies online, including its Snapshot application. This telematics application monitors driving and offers discounts to ensure safe driving. The Progressive mobile app gives immediate access to look over insurance coverage, ID card bills, and claims submissions. When you decide which insurance policy is suitable to suit your needs, you may use the Name Your Price tool to personalize your purchasing experience and look over policies that fit your budget.
11. Allstate
Best for high-value cars
The fourth-largest insurance company in terms of the market’s share of the business, Allstate has a comprehensive selection of insurance options, making it a top choice for all drivers, particularly those who own unique vehicles. The rewards program at Allstate provides additional benefits that allow drivers to earn points for hotels and gift cards, and other perks.
Pros
- Custom or classic car coverage
- Unique points-based rewards program
- Two of the driving programs that are based on use could allow you to adjust rates
Cons
- Higher-than-average rates
- Scores on customer satisfaction differ depending on the region.
Allstate is among the few insurers to offer coverage for custom-built equipment. Allstate’s policies that cover a whole range offer a more affordable cost when compared with other insurers listed by Bankrate; however, people who have put their funds into upgrading their vehicles equipped with top-quality audio equipment are likely to require more extensive insurance Allstate offers. Collectors of antique and classic cars can choose the insurance for classic cars provided by Allstate so that the car’s more excellent intrinsic value is covered in a costly loss.
What is the average price the cost of car insurance typically?
In answering the commonly asked”what is the cost of car insurance? ” how much does car insurance cost?” it is essential to understand that rates depend heavily on the individual ratings factors and information about the vehicle that drivers submit when seeking an estimate. In the United States, whole coverage policies are $1,771 annually. “Full coverage” is a term used to describe an approach that includes collision, liability coverage, and comprehensive coverage. Minimal coverage is the state’s minimum requirement and costs $545 annually.
Risk. Alongside the type of coverage and levels you choose to purchase, other aspects will significantly impact the final cost of insurance. Insurance companies base rates for car insurance on the perceived risk level. This means that the following variables (and many more) could affect your insurance premium:
- Driver’s record you have a driving record that you’ve got an egregious history of tickets, accidents, and DUI verdicts, then you’ll probably have to pay more for insurance.
- Experience and age: Younger Drivers are more likely to be less experienced in the roadway, meaning crashes are possible. Rates tend to be higher than the average. Hawaii and Massachusetts do not allow making age a determining factor.
- City and state State and city: Different states have different insurance laws, accident figures, and living costs. The city you live in and the ZIP code (in most states) will affect the amount you have to pay.
- Types of coverage and limits: Selecting fewer types of coverage and lower limits may result in a lower cost; however, it can also mean more inadequate financial protection and more expenses out of pocket if you suffer accidents.
- Model and make of vehicle each model and make of car comes with unique characteristics that affect the probability of being involved in accidents. They also affect the seriousness of accidents and the cost of fixing the vehicle. Each vehicle will be priced at a different amount to ensure.
- Scores based on credit: in many states, the credit score will determine the likelihood you will be able to make claims. Drivers with lower credit scores typically have higher insurance premiums.
- History of insurance lapse: Since most states require drivers to carry a minimum level of insurance coverage, insurance loss can lead to more expensive premiums if you purchase another policy.
What is the cost of car insurance for driving accidents?
The table below illustrates the average cost for drivers in various scenarios. Compared to the average national rate, you will see that multiple factors impact insurance costs differently.
The importance of location when it comes to choosing the right car insurance
Various factors determine car insurance rates, and your state, city, and ZIP code can be among the most important. Suppose you have recently relocated from one location to another. In that case, it’s an excellent idea to look at different businesses to ensure that the insurance provider you have chosen is still the most suitable for your requirements. This is especially important if you’ve relocated across state lines as the insurance industry isn’t standardized across the nation.
Reviewing in-depth the coverage of your auto insurance in your checklist for moving is a great way to keep this crucial step in mind. For Bankrate’s recommendations for the top car insurance policies in your state, choose the one below from the table.
Cost of insurance for cars by the state
| State | Annual annual cost for full coverage insurance | Average annual cost for minimum coverage insurance |
|---|---|---|
| Alabama | $1,760 | $443 |
| Alaska | $1,770 | $417 |
| Arizona | $1,743 | $579 |
| Arkansas | $1,806 | $437 |
| California | $2,190 | $619 |
| Colorado | $2,019 | $495 |
| Connecticut | $1,533 | $646 |
| Delaware | $1,963 | $747 |
| Florida | $2,762 | $997 |
| Georgia | $1,985 | $630 |
| Hawaii | $1,206 | $338 |
| Idaho | $1,065 | $271 |
| Illinois | $1,548 | $477 |
| Indiana | $1,242 | $329 |
| Iowa | $1,254 | $227 |
| Kansas | $1,802 | $419 |
| Kentucky | $1,954 | $658 |
| Louisiana | $2,864 | $807 |
| Maine | $8,876 | $227 |
| Maryland | $1,931 | $836 |
| Massachusetts | $1,296 | $446 |
| Michigan | $2,345 | $946 |
| Minnesota | $1,692 | $600 |
| Mississippi | $1,701 | $450 |
| Missouri | $1,861 | $504 |
| Montana | $1,795 | $310 |
| Nebraska | $1,538 | $367 |
| Nevada | $2,426 | $846 |
| New Hampshire | $1,182 | $324 |
| New Jersey | $1,891 | $855 |
| New Mexico | $1,489 | $347 |
| New York | $2,996 | $1,339 |
| North Carolina | $1,392 | $431 |
| North Dakota | $1,225 | $268 |
| Ohio | $1,200 | $336 |
| Oklahoma | $1,902 | $408 |
| Oregon | $1,371 | $625 |
| Pennsylvania | $2,002 | $441 |
| Rhode Island | $1,847 | $569 |
| South Carolina | $1,464 | $518 |
| South Dakota | $1,542 | $274 |
| Tennessee | $1,383 | $372 |
| Texas | $1,868 | $551 |
| Utah | $1,449 | $544 |
| Vermont | $1,000 | $242 |
| Virginia | $1,340 | $475 |
| Washington | $1,313 | $482 |
| Washington, D.C. | $1,948 | $613 |
| West Virginia | $1,527 | $472 |
| Wisconsin | $1,249 | $364 |
| Wyoming | $1,510 | $262 |
Frequently Asked Questions (FAQs)
Is car insurance required?
Car insurance is mandatory. Drivers have to carry the minimum amount required for insurance for their vehicle in every state other than New Hampshire and Virginia. Every state has its own rules for car insurance, which means the minimum amounts differ from state to state. The minimum limits in the state tend to be very low and offer only a tiny amount of protection. However, it’s important to remember that even though minimum limits are what you need to be able to drive legally but you’ll need to include collision and comprehensive coverage when you’re a holder of the option of a lease or loan on the vehicle you own. In addition, many insurance companies advise you to purchase higher liability limits to provide more financial security.
Does an accident affect the price of insurance for cars?
In general, the more incidents that you record and the more you have on your record, the higher your insurance premium generally will be. Car insurance companies typically employ a Comprehensive Loss Underwriting Exchange (CLUE) report and a Motor Vehicle Report (MVR) to establish the rates. The announcements contain information about the previous accidents you have had, any traffic violations, the status of your license and claims history, and other relevant information about your driving record. Some insurance companies offer the option of accident forgiveness in exchange for an endorsement. If you’re with an incident, the car insurance provider might “forgive” the incident instead of increasing your rate. Forgiveness for accidents does not transfer to other insurers. Therefore, the incident can impact your rates if you move insurers.
Which company has the lowest cost for car insurance?
According to our study, Auto-Owners, USAA, and Geico are among the lowest-cost car insurance providers in 2022. The rates are according to a range of the underlying rating metrics, and therefore the most affordable company to you might not be included in this list. One of the most effective ways to determine which company has the lowest cost is to search for quotes and shop around.
Do you need car insurance?
finding the most suitable insurance for your vehicle is essential to establishing financial peace of mind for yourself and your family. Although state regulations differ, it’s almost always better to choose a suitable level of insurance to protect your assets and money. John Colletti, an adjunct business professor at North Central College, recommends starting to learn the crucial role that auto insurance provides financial security when you can drive. “As families talk about a child’s registration for a driver education, include a presentation on the importance of monetary factors and key concepts to increase children’s financial literacy,” Colletti says. This will help children understand the idea of owning a vehicle and other aspects that affect your financial well-being.
What insurance for cars should I purchase?
The amount of insurance coverage you purchase is a personal decision based on various factors. Your financial health and risk tolerance, the kinds and amount of assets you want to safeguard, and your driving statistics like your record of accidents and the type of vehicle you drive all affect your choice. One method to determine how much insurance best suits your needs is to talk to a licensed insurance professional when you get estimates.
