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By Gabriel Sánchez Vissepó and Ana Reina
Updated: March 15, 2022 1:26 PM ET | Originally published: March 14, 2022
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Best Car Insurance Package
Best for Customizable PremiumsBest for Young DriversBest for Discount AvailabilityBest for Altering Existing Policies
Amica ProgressiveState FarmFarmersNationwide
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Bundling, paperless, up-front payments, AutoPay, good driving, young drivers, having anti-theft devices, loyalty and legacy discounts

Bundling, multiple vehicles, installing anti-theft devices, automatic and paperless statements, loyalty rewards, teen driver discounts

Bundling, multiple vehicles, Drive Safe & Save telematics program, defensive driving course completion, vehicle safety features

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

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, Car Connection tool

Mobile app, Name Your Price tool, car insurance calculator, Snapshot tool

Mobile App

Mobile App

Mobile app, SmartMiles, Smart Ride

Best Car Insurance Package
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Bundling, paperless, up-front payments, AutoPay, good driving, young drivers, having anti-theft devices, loyalty and legacy discounts


Mobile app, Car Connection tool

Best for Customizable Premiums
Our Partner
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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

Best for Young Drivers
State Farm
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Bundling, multiple vehicles, Drive Safe & Save telematics program, defensive driving course completion, vehicle safety features


Mobile App

Best for Discount Availability
Our Partner
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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

Best for Altering Existing Policies
Our Partner
See an Estimate

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

Car insurance is not just the law in most states; it’s a necessary financial safety net in case of an accident. We’ve broken down the most important information, including the many factors that affect your premiums, to make choosing the best car insurance easier than ever.

Our top picks and runners-up for the best car insurance companies can help you choose the best car insurance coverage for your vehicle.

Our Top Picks for Best Car Insurance Companies of March 2022

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Best Car Insurance Companies Reviews

Why we chose it: We chose Amica Mutual as the auto insurance company with the best coverage package for its Platinum Choice Auto, where drivers can earn Advantage Points rewards and save considerably on their deductible.

  • No-cost airbag replacement after it deploys
  • Lock replacement in the event of stolen keys
  • $1,000 for bail bonds and wage reimbursement if you're required to appear in court
  • No rideshare insurance
  • Not all features are available nationwide
  • Coverage is not available in Hawaii
Highest Overall (895/1,000)
NAIC Complaint Index
Above median (1.28)

Amica features one of the most robust car insurance packages, Platinum Choice Auto. This package includes Advantage Points, a program where policyholders earn rewards for good driving, renewing policies and referring others. Advantage Points can also reduce or even eliminate your deductible.

Amica's Platinum Choice also includes credit monitoring, a $5,000 rental coverage maximum and new car replacement if your totaled car is under a year old and has fewer than 15,000 miles.

Beyond Platinum Choice Auto, Amica offers extensive coverage options with which to customize your auto insurance policy, including gap coverage and glass repair without a deductible.

Amica's basic coverage options include personal injury protection, property damage, bodily injury liability and uninsured/underinsured motorists. Other policy options include auto loan/lease gap protection, comprehensive and collision coverage, roadside assistance and rental reimbursement.

Amica car insurance discounts

  • Bundling policies and insuring multiple vehicles
  • Paperless payments, up-front premium payments and AutoPay
  • Good driving habits: being claim-free for three years and taking a defensive driving course
  • Young drivers: for completing a training program, students with good grades and full-time students away at school
  • Having anti-theft devices, passive restraint or electronic stability features
  • Loyalty discounts after two years of being insured
  • Legacy discounts for drivers under 30 whose parents have been insured with Amica for at least five years

Amica car insurance tools

  • Mobile app: track claims, request roadside assistance, pay bills
  • Car Connection tool for comparing prices on new and used cars

Why we chose it: We chose Progressive as the best car insurance company for customizable premiums because of its personalized Name Your Price tool, which allows drivers to shop for coverage within their budget.

  • Personalized car insurance rates with Snapshot
  • Pick your premium with the Name Your Price tool
  • Compare quotes with Progressive's comparison tool
  • Loyalty Reward program
  • Pricing may vary depending on how you buy, whether online or over the phone with an insurance agent
  • Discounts vary and are not available in all states
Below average (862/1,000)
NAIC Complaint Index
Below median (0.90)

Progressive offers the most control when it comes to how much you want to pay for your auto insurance policy. It does this through its well-known Name Your Price tool, which neatly reverses the usual method of getting an insurance quote. You only need to provide some basic information (address, vehicle make and model, owned or leased) and say how much you can spend, and Progressive will show you policy options within your budget.

Coverage options with Progressive include liability, comprehensive, medical expenses, collision and uninsured/underinsured motorist coverage. You can also add roadside assistance, gap, rental car reimbursement, custom parts and rideshare coverage.

Progressive car insurance discounts

  • Combine your auto insurance policy with home, renters or life insurance
  • Insure multiple vehicles
  • Vehicle safety features such as anti-theft alarms
  • Automatic and paperless payments
  • Loyalty rewards by maintaining continuous coverage with Progressive
  • Teen driver discounts: full-time students with good grades and students away from home

Progressive car insurance tools

  • Get coverage options within your budget with the Name Your Price tool
  • Car insurance calculator based on your state and personal details
  • Get personalized rates with Snapshot, a usage-based insurance program (not available in California or North Carolina)
  • Mobile app: view your driving status, recent trips and ways to improve your driving

Why we chose it: We chose State Farm as the best car insurance company for young drivers because it offers up to 25% savings for teenage student drivers with a GPA of 3.0 or higher.

  • Offers rideshare insurance in most states
  • Save money with Drive Safe & Save and Steer Clear programs
  • Travel expenses coverage
  • Drive Safe & Save program not available in CA, MA or RI
Above average (892-1,000)
NAIC Complaint Index
Below median (0.70)

State Farm offers great savings for teenage drivers with discounts such as good student, student away at school, driver training (up to 20%) and savings based on good driving habits with the Steer Clear safe driving discount.

State Farm’s travel expenses coverage pays for meals, transportation (home or to your destination) and lodging if your vehicle is disabled 50+ miles from your home in an accident covered by your comprehensive or collision insurance. A return trip to pick up your car is also covered.

Additional coverage options from State Farm include liability, uninsured/underinsured motorist, medical payments, roadside assistance and rideshare (if you use your car for Uber or Lyft).

State Farm car insurance discounts

  • Bundling with renters, homeowner’s or life insurance policies
  • Insuring multiple vehicles
  • Drive Safe & Save telematics program rewards you for good driving habits
  • Steer Clear program allows drivers under 25 years of age to save up to 15% if they don’t have any at-fault accidents or moving violations in the past 3 years
  • Defensive driving courses (in select states)
  • Vehicle safety features (seatbelt, airbags on older vehicles)

State Farm car insurance tools

  • Mobile app: pay bills, file claims, request roadside assistance, view ID cards and link your bank account to send money
  • Make car reservations through Enterprise or Hertz or find a reliable auto repair shop

Why we chose it: We chose Farmers as the best car insurance company for discount availability for its multiple discount categories, such as reduced premiums for essential workers and veterans, active duty service members and honorably discharged military members.

  • Guaranteed Value coverage pays out an "agreed value" if your car is totaled
  • Multiple discount categories
  • First major insurer to offer a discount for alternative-fuel vehicles
  • Discount eligibility and percentage varies depending on your place of residence
  • Does not offer gap insurance to provide the total replacement cost of a new car
Above average (893/1,000)
NAIC Complaint Index
Below median (0.52)

Farmers offers a broad range of insurance products and ways to save on car insurance premiums. While the company does not provide a more extensive selection of car insurance discounts than other insurers, it does offer two car insurance discounts not all providers carry. For starters, essential workers — doctors, nurses, firefighters, teachers and police officers — are eligible for a premium reduction, a benefit few insurers provide.

Farmers also provides multiple car and home insurance discounts for veterans, active duty service members, and honorably discharged military members.

Farmers standard coverage options include liability, property damage, collision, comprehensive coverage, uninsured/underinsured motorist, medical payments and personal injury protection. Additional coverage types include rideshare, loss of use, rental reimbursement and roadside assistance. Owners and collectors of classic vehicles will also appreciate Farmers' coverage of up to $750 on spare parts.

Farmers car insurance discounts

  • Bundling insurance policies and insuring multiple vehicles
  • Student discounts for good grades and studying away from home
  • Automatic, paperless and on-time payments
  • Shared family car (not available in California)
  • Anti-theft, anti-lock brake and passive restraint systems
  • Hybrid/electric vehicles or those powered by other alternative fuels (only in California)
  • Discounts for military members and other essential service professionals

Farmers car insurance tools

  • Mobile app: chat with an agent, request roadside assistance, get a quote
  • Specialty insurance options like motorcycle and boat insurance

Why we chose it: We chose Nationwide as the best car insurance company for altering existing policies because of On Your Side Review, which lets drivers review their policy to ask questions, make changes and apply for discounts.

  • Get discounts with the SmartRide safe driving app
  • Pay based on how many miles you drive
  • Get up to a $500 cash bonus with the purchase or lease of a qualified new car or vehicle
  • SmartRide and SmartMiles discount availability vary per state and coverage selected
  • Accident forgiveness is not available in all states
J.D. Power Score
Above average (876/1,000)
NAIC Complaint Index
Below median (0.61)

Nationwide offers its policyholders a free annual car insurance assessment called On Your Side Review. While any insurer allows you to review your policy at any time, this scheduled checkup encourages customers to clear up any questions regarding their policy and benefits, make changes to their coverage in line with current and future needs, and apply available discounts.

The insurer offers standard coverage options such as collision and comprehensive insurance, gap insurance, uninsured motorist, bodily injury liability, roadside assistance and policies designed specifically for young drivers and classic car owners.

Its list of discounts is a bit more limited than those of other companies, but you can lower your monthly premiums by bundling insurance policies, setting up direct payments, driving fewer miles and staying accident-free.

Nationwide car insurance discounts

  • Save up to $646 when bundling auto and home insurance
  • Vehicle safety and anti-theft devices
  • Automatic and paperless billing
  • Safe driver rewards for customers who go five years without major violations or at-fault accidents
  • Complete a defensive driving course
  • Good student discounts for drivers aged 16 to 24

Nationwide car insurance tools

  • Mobile app: manage insurance policies, make payments, file and track claims and request roadside assistance
  • SmartMiles, a pay-per-mile car insurance program for low-mileage drivers
  • SmartRide, a usage-based car insurance program for safe drivers

Why we chose it: We chose GEICO as the best car insurance company with a comprehensive mobile app. Besides offering the usual (ability to access digital insurance cards, request roadside assistance and file claims), GEICO’s app also connects to CARFAX, allowing you to see your vehicle’s service history, create a maintenance schedule and check for open recalls, among others.

  • Pay bills or request roadside assistance with the Mobile app
  • Coverage calculator
  • Discounts available to federal and military employees, seniors and students
  • Accident Forgiveness not available in CA, CT and MA
  • Does not offer gap insurance
A.M. Rating
J.D. Power Rating
Below average (881/1,000)
NAIC Complaint Index
Above median (1.32)

Though GEICO has a reputation for being one of the most affordable car insurance providers in the nation, the company stands out with its easy-to-use mobile experience.

GEICO’s mobile app—which has an excellent 4.8 out of 5 rating with almost three million reviews in Apple’s App Store—allows customers to access their digital insurance cards, request roadside assistance, submit photos of their cars for damage estimates, and connect with a virtual assistant to answer car insurance-related questions, among other features.

As for coverage options, GEICO offers medical payments, personal injury protection, uninsured/underinsured motorist, collision and comprehensive coverage. Add-ons include roadside assistance, rental reimbursement and mechanical breakdown insurance products. The latter can cover repairs after your new car warranty expires. GEICO is also one of only two companies on our list with a dedicated discount for military members.

GEICO car insurance discounts

  • Equipment discounts for new cars, airbags, anti-lock brakes, anti-theft systems and others
  • Being accident-free for five years
  • Using a seatbelt, taking defensive driving or driver's education courses and being a good student
  • Affiliation discounts for military members and federal employees
  • Insuring multiple vehicles and having multiple policies
  • Senior driver discounts for drivers over 50

GEICO car insurance tools

  • Mobile app: access ID cards, pay bills and request roadside assistance or customer support 24/7
  • DriveEasy telematics program rewards safe driving behavior
  • Car insurance coverage calculator

Why we chose it: We chose Allstate as the car insurance company with the best usage-based insurance programs. While Drivewise allows policyholders to save by driving safely, Milewise allows them to save by driving short distances or infrequently.

  • Get driving insights and discounts for safe driving with Drivewise
  • Safe Driving Bonus for every 6 months you're accident-free
  • Get discounts for new cars and teen drivers
  • Drivewise program not available in every state
  • Premiums vary depending on whether you buy online or through a local agent
A.M. Best Rating
J.D. Power Rating
Above average (807/1,000)
NAIC Complaint Index
Above median (0.88)

Allstate's telematics program, Drivewise, offers policyholders a chance to get cashback every six months by driving safely, plus an additional reward for signing up. Allstate also offers Milewise, a pay-per-mile insurance option that could help infrequent drivers and those who only travel short distances save from 20% to 70% on premiums.

Allstate has high social media responsiveness on platforms like Twitter, replying directly to users on weekends. Additionally, its website provides easy-to-use tools to help customers understand their policy and determine how much coverage they need.

Coverage options with Allstate include collision, comprehensive, liability and medical payments, uninsured motorist, sound systems, roadside assistance, personal injury protection, rental reimbursement and extended umbrella coverage.

Allstate car insurance discounts

  • Vehicle equipment discounts for new cars, anti-lock brakes and anti-theft devices
  • Multiple policies
  • Safe driving
  • Signing your policy seven days before it becomes effective
  • Not missing any payments for a year
  • Discount for students with good grades, those who study away from home and complete a driver's education program
  • Automatic payments, full payments and paperless billing

Allstate car insurance tools

  • Mobile app: access ID cards, pay bills, report claims, request roadside assistance and accident support
  • Drivewise, a usage-based insurance program
  • Milewise, a pay-per-mile car insurance program
  • Bumper-to-Bumper Basics, a tool for selecting the right coverage limits and deductible

Why we chose it: We chose USAA as the best car insurance company for military families and veterans. Besides offering coverage specifically to this group, USAA also has some of the best customer satisfaction ratings, according to J.D. Power's most recent Auto Insurance Claims Satisfaction Study.

A.M. Best Rating
J.D. Power Rating
Highest Overall (909/1,000)
NAIC Complaint Index
Above median (0.98)
  • The highest overall customer satisfaction rating out of the companies we reviewed
  • Below median rating (0.0) for NAIC customer complaints
  • Available in all 50 states, including Washington, D.C.
  • Not available to civilians
  • Offers fewer specialty coverages compared to other car insurance providers

Although USAA is only available for active military, veterans and their families, it is ranked highly for providing top-notch customer service to its members. It also has a very low rate of complaints, according to the NAIC Complaint Index.

Active service members can benefit from a vehicle storage discount of up to 60% while on deployment and up to 15% on comprehensive coverage when garaging their vehicles on base.

Coverage options with USAA include liability coverage, comprehensive and collision insurance, car replacement assistance coverage, accident forgiveness, rental reimbursement, towing and labor and rideshare gap protection.

USAA car insurance discounts

  • Safe driver discount for maintaining a good record for more than five years
  • Defensive driving discount for taking an approved course
  • Driver training discount for completing a basic driver training course
  • Good student for teenage drivers with good grades
  • New vehicle discount for a car that’s not over 3 years old
  • Multi-vehicle discount
  • Vehicle storage discount
  • Family discount
  • Length of membership savings
  • Military installation discount
  • Automatic payments

USAA car insurance tools

  • Mobile app: manage policy, get car insurance quotes, get auto ID cards and transfer funds
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Other companies we considered

We evaluated insurance companies based on their financial strength, discounts, technology and customer experience. The following insurers were close runners-up.


  • Above-average customer satisfaction rating with J.D. Power
  • Ability to lock-in rates until you change covered drivers, covered car or home address
  • It only operates in IL, IN, KY, MD, NY, NC, OH, PA, TN, VA, WV, WI and DC

Erie ranked above average in J.D. Power’s 2021 Auto Claims Satisfaction Study, making it one of the top-performing companies in customer service. Erie stands out, however, with its unique ERIE Rate Lock feature — which freezes your car insurance premium year after year, including after filing a claim.

Discounts with Erie insurance include a multi-policy discount, bundling home and auto, safe driving, paying annually upfront, first accident forgiveness, diminishing deductible option, vehicle storage, safety savings, paying a lump sum annually, and youthful drivers and college student discounts.

Liberty Mutual

  • Save up to 30% on your policy for safe driving with the RightTrack app
  • Get a discount on your hybrid or electric vehicle
  • Get a better price when you purchase your policy online
  • Highest NAIC complaint ratio out of all insurers on our list
  • Accident forgiveness not available in CA

Like other insurers, Liberty Mutual offers various discounts. Unlike others, however, it doesn’t limit the number of discounts you may be eligible for, a feature that could considerably reduce your premium. The company’s website also has a coverage calculator that can help you determine the right level of protection for your vehicle.

Discounts available with Liberty Mutual include: bundling policies, multiple cars, homeownership, military, good student, student-away-at school, paying-in-full, going paperless, driving safely and more.

Liberty Mutual’s coverage options start with the basics: medical expense payments, uninsured motorist, personal injury protection, liability coverage, collision and comprehensive. Other available coverage options are roadside assistance, gap coverage, rental reimbursement and insurance for teachers who store valuable supplies in their cars.


  • Features two accident forgiveness plans
  • Intellidrive program can reduce rates by as much as 20%
  • Optional Premier New Car Replacement combines new car replacement, loan/lease gap coverage and a glass deductible
  • High NAIC Complaint Index compared to other insurers
  • Rideshare coverage only available in CO and IL
  • Coverage, discounts and deductibles not available in all states

Travelers can give you a quote in five minutes or less; you don’t even have to provide a driver’s license number. If you request your car insurance quote while you’re still insured with another company, you’ll receive a discount of up to 10%.

Policyholders must connect with an insurance representative or independent agent to learn more about Travelers insurance products. Should you have to report an accident, the insurer has over 12,000 claims professionals nationwide available 24/7.

Travelers' coverage options include liability, collision, comprehensive, personal injury protection and medical expenses. It also offers additional coverage options like loan/lease gap coverage, rental reimbursement, accident forgiveness, new car replacement and roadside assistance. Rideshare coverage for Uber or Lyft drivers is only available in Colorado and Illinois.


  • One-stop shop to compare various top insurance providers at the same time
  • Users can compare other types of policies such as home, renters and life insurance
  • Doesn't offer quotes, the website redirects you to lender websites
  • May share information you provide with lenders and other third parties

QuoteWizard is a great place to compare car insurance quotes from different providers without doing all the legwork. As a marketplace, it allows prospective customers to compare auto insurance quotes and double-check coverage details before committing to one insurer.

Keep in mind that average car insurance rates as advertised by QuoteWizard will vary depending on the coverage options you select. You will also need to verify whether your coverage limits comply with the minimum liability requirements in your state, as the site does not offer this information.

Spark Auto Insurance

  • Nationwide provider network
  • Partners with other auto insurance companies
  • Allows drivers to compare coverage from comparing multiple companies
  • Requires you to enter personal information before connecting you with its provider network
  • Not rated by A.M. Best or J.D. Power

Spark Auto Insurance is an online marketplace designed to connect potential customers to an extensive network of insurance providers.

This network of providers offers standard and optional coverage options, such as bodily injury liability, damage liability, collision, comprehensive, personal injury, medical payments and underinsured motorist, among others.

Spark Auto Insurance works with reputable insurance companies like Liberty Mutual, Travelers and Safeco. As a marketplace, the company will allow you to compare various insurance providers and help you save with numbers that fit your particular situation.

Car Insurance Guide

In this section, we go over what auto insurance covers, the types of coverages most companies offer, how much auto insurance can cost and the factors that influence those costs. We also include a step-by-step guide on buying car insurance and explain why car insurance is worth your money.

Table of Contents

How does car insurance work?

Auto insurance is a form of financial protection against theft, collision and liability. In simple terms, you pay premiums to an insurer, and it pays for any losses as stipulated in your policy, which generally includes only damage to the vehicles and injury to the persons involved.

For example, if your car is broken into and your laptop is stolen, the insurer pays for replacing the window and any other damage done to the car, but not the computer. For that, you would need homeowners or renters insurance.

Auto insurance is regulated at the state level, so your policy’s minimum liability limits will depend on local laws. Except for New Hampshire and Virginia, all other states require drivers to buy car insurance or pay some sort of fee if uninsured.

Types of car insurance coverage

There are six standard components of car insurance coverage:

  1. Liability insurance includes property damage and bodily injury liability; the latter covers medical expenses to others stemming from an at-fault accident.
  2. Uninsured/underinsured motorist coverage covers medical bills and repairs if you’re in an accident caused by another driver with little or no insurance.
  3. Comprehensive coverage covers repairs if your vehicle is damaged by something other than another vehicle (including hail, fire, floods, theft and vandalism).
  4. Collision coverage covers repair costs to your vehicle if you're involved in a car accident that is deemed to be your fault.
  5. Medical payments coverage covers medical expenses if you or your passengers are injured in an accident.
  6. Personal injury protection (PIP), also known as no-fault insurance, covers medical bills, loss of wages and funeral costs for you or your passengers if you're in an accident, regardless of who is at fault.

Consider optional insurance riders if you need additional coverage such as roadside assistance, glass replacement and rental reimbursement.

How much is car insurance?

Car insurance was $1,190 on average in 2018 according to The National Association of Insurance Commissioners (NAIC)’s2017-2018 Auto Insurance Database Report. However, this can vary greatly depending on a wide range of considerations. In fact, the NAIC explicitly mentions that state-to-state comparisons are difficult to make because of the high degree of variance on insurance requirements and other factors.

While your driving record and the type of car you drive influence your premium, there are other factors that affect what you pay for car insurance. Broadly speaking, the higher the risk for an insurer, the higher the premium will be.

Common factors that increase coverage:

  • Car usage: if you don’t drive often, there are fewer chances you’ll be involved in an accident. The opposite is also true; the more you drive, the more likely the insurance company has to pay out a claim, which leads to higher premiums.
  • Place of residence: where you live influences your car insurance premium. Generally, urban areas have higher vehicle theft and vandalism rates compared to rural neighborhoods, which means a higher risk for the insurer leading to higher premiums.
  • Age: inexperienced drivers under the age of 25 usually pay higher premiums because insurers value driving experience as a primary factor in avoiding collisions. Teen drivers, for example, are considered a high-risk segment.
  • Gender: statistically speaking, women are involved in fewer car accidents than men, resulting in lower premiums.

What drives up car insurance premiums?

Your car insurance costs will depend on the following:

  • Marital status: married drivers are considered safer and more financially stable than single drivers.
  • Commute: longer commutes increase your risk of being in an accident.
  • Homeowner status: homeowners are considered more financially stable than renters.
  • Owning luxury or sports vehicles: these cars cost more to repair, have higher vehicle theft rates and lots of horsepower, which increases risk in the event of a collision.
  • Accidents or tickets: these can run up your payments for three years or longer, on top of legal costs and fees. The worse the offense, the higher the increase.
  • Insurance coverage: your coverage limit and deductible can drive up the cost of your premium.
  • Credit score: many insurers use credit-based insurance scores to price policies. Statistical data reveals that drivers with poor credit are more likely to file insurance claims. Drivers with good credit, however, are likely to receive better premium rates because of the probability of timely payments and safer driving.

How to lower your car insurance premium

Bundle insurance policies

On average, bundling can save you 8% on your combined premiums. Consider one of our best homeowners insurance providers if you're looking to bundle auto and home.

Increase your deductible

The deductible is the amount you will pay out of pocket on a claim before the insurance company pays the rest. Increasing your deductible can reduce your premium payments. This may be a worthwhile gamble, especially for infrequent drivers.

Review your policy regularly

Reassessing your current policy annually before renewal, or whenever you make life changes that affect who is driving your car, can ensure you’re getting the type and level of coverage you need and can afford.

Apply for discounts

Companies offer discounts to policyholders that maintain a clean driving record and drive vehicles with good safety features.

Although discounts vary from one lender to the next, they often include:

  • Bundling policies with the same company
  • Insuring multiple vehicles
  • Taking a drivers education course
  • Automatic and paperless payments
  • A higher deductible
  • Maintaining continuous coverage
  • Safe driving
  • Student driver with good grades
  • Low annual mileage
  • Students away at college
  • Vehicle safety features

Reduce coverage on old cars

You can reduce your premium by dropping collision or comprehensive coverage on vehicles older than 10 years. Similarly, you might consider dropping collision coverage on cars you don't use or have in storage.

Consider usage-based insurance

Usage-based insurance options take your actual driving history to calculate your premium.

Pay-per-mile insurance can help infrequent or short-distance drivers save 20% to 40%. Pay-how-you-drive insurance could help good drivers save up to 40%, plus a discount for signing up.

Usage-based insurance options that measure how fast you drive, how quickly you turn and how abruptly you break could end up costing you more if you don't drive safely.

UBI could also be an option for those looking to buy car insurance with bad credit.

Shop for rates

Shopping around and comparing price quotes from at least three different insurance providers can help you get the lowest possible car insurance rate. Using a car insurance comparison tool can help match you with a provider that offers the best car insurance policy for your vehicle.

You can get rate quotes directly from insurance companies online or over the phone. Some state insurance commissioners also provide information on average car insurance prices in your state.

Besides average rates, consider available discounts, coverage limits and deductible options when shopping for coverage. If you don’t know where to start, an independent insurance agent or broker could help you narrow down your choices.

If you want to read more about savings opportunities with online insurers, read our guide on the best cheap car insurance companies.

Finally, check out our article on how to lower your car insurance premiums for more ways to save on auto policies.

How to get car insurance

You need your driver's license and vehicle registration to purchase car insurance. You will also need a copy of your existing insurance declaration page if the vehicle is already insured.

Here are some additional tips on how to buy car insurance:

  • Shop around for the best annual premium.
  • You don't want to be underinsured. Some minimum coverage requirements tend to be low and may not cover you sufficiently in the event of a serious accident.
  • Look for policy discounts and other ways to save.
  • Decide on a deductible.
  • Taking a driving course can help if you have a DUI on your record.

Is car insurance worth it?

Car insurance is mandatory in all states with the exception of Virginia and New Hampshire, so most auto owners don’t have much of a choice in whether to insure their vehicle.

Since it's mandatory, driving while uninsured is considered a misdemeanor and will result in a fine of anything between $50 to $1,500 depending on the state. It can also result in jail time of up to five years in some states. Given that the average car insurance premium is $1,190, it’s easy to see how it’s definitely worth it.

Latest news in car insurance

According to recent data, 82% of new car buyers in January paid above sticker price due to vehicle shortages and increased consumer demand.

If you’re looking to buy a car this year, Money’s guide on how to buy a car in 2022 has the best strategies to help you score the best price for the car you want.

In more recent news, a new law in Washington state will ban the use of credit scores to set car and home insurance rates. Insurance companies argue that this ban could result in higher premiums for drivers.

Meanwhile, experts say the recent increase in road fatalities on U.S. roads will mean higher car insurance rates for drivers this year.

Car Insurance FAQ
How does car insurance work?

Car insurance is designed to cover vehicle repair costs and medical expenses for you and your passengers after an accident.

Some car insurance coverage options also pay for expenses related to injuries or property damage caused to others or provide additional protection if you're in an accident caused by someone who doesn't have insurance or has insufficient coverage.

What does full coverage car insurance cover?
Full coverage auto insurance refers to a combination of liability, collision and comprehensive coverages. These coverage options financially protect drivers from damages to their vehicle, injuries to passengers, and any damages to other cars and their occupants.
What is liability car insurance?

Liability car insurance covers drivers in the event of an at-fault accident. In most states, this type of coverage is a requirement. Liability insurance comprises of bodily injury liability coverage and property damage liability coverage. Bodily injury liability protects drivers if they're at fault for an accident by covering the other driver's medical expenses or their passengers. Property damage liability, on the other hand, protects at-fault drivers by covering the cost of the other person's property repairs.

Bodily injury liability protects drivers if they're at fault for an accident by covering the medical expenses of the other driver or their passengers.

Property damage liability, on the other hand, protects at-fault drivers by covering the cost of the other person's property repairs.

How to lower car insurance costs

There is no one set way to lower your car insurance premiums, but there are a variety of suggestions you can try to get the lowest monthly rate. The main way to get a better price for your car insurance is to shop across insurers and compare multiple quotes. In addition, asking friends and family for feedback on insurers that worked for them can be useful.

Most national insurers also offer discounts for bundling your auto policy with your homeowners or renters insurance, completing a defensive driving course, and installing anti-theft devices in your car. If you're a safe driver or don't drive often, a usage-based insurance program could also help you save. Finally, you can also lower your monthly premium by increasing your deductible and improving your credit score.

What is the best car insurance?

The best car insurance company for you will be the one that best fits your needs and budget.

That being said, Money's top pick for the best coverage package is Amica Mutual, which also features the highest overall customer satisfaction awarded with J.D. Power.

We also consider Progressive to have the best offerings for customizable premiums and Farmers to have the best discount availability.

What is comprehensive car insurance?

Although comprehensive auto insurance sounds like it provides coverage for everything, the truth is the name can be misleading and is often confused with "full coverage." Comprehensive coverage includes damage to your car not caused by another vehicle, such as theft, damage from fire, hail or vandalism.

The best car insurance companies provide what's called "full coverage," which refers to the combination of collision and comprehensive coverage. Although these two policies are optional, cars with both policies are considered "fully insured."

How We Chose the Best Car Insurance Companies

To find the best auto insurance companies in the nation, we vetted a total of 23 insurers featured on the NAIC’s 2020 Property/Casualty Market Share report for Private Passenger Auto as well as J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study.

Since car insurance is regulated at a state level and most insurance providers offer the same coverage types across the board, we only considered companies with few complaints against their private passenger policies as reported by the National Association of Insurance Commissioners (NAIC). We also prioritized nationwide auto insurers with superior financial strength ratings, ample discounts, technology integration through telematics programs and above-average customer satisfaction scores from J.D. Power.

  • Financial stability - When an insurer goes bankrupt, it typically sells its existing policies to other insurance companies. Make sure your car insurer is financially stable enough to pay out your claims when you need it.
  • Discounts - Auto insurance policies beyond basic liability can be costly. Discounts could help you get the coverage you need without breaking the bank.
  • Technology - Most of the companies on our list use automation to provide auto insurance quotes in a matter of minutes and have a 24/7 claims process. Car insurance companies that allow policyholders to file car insurance claims via apps ranked higher on our list.
  • Customer experience - Filing a claim can be a hassle. To help you minimize stressful situations, we carefully considered companies based on customer satisfaction ratings as reported on J.D. Power's 2021 U.S. Auto Claims Satisfaction Study.

Summary of Money’s Best Car Insurance of March 2022