The best car insurance companies on the market

The best auto insurance companies on the market not only offer good coverage and affordable payments. They also have a simple claims process, easy-to-use technology and an excellent customer service experience.

Choosing the best car insurance provider for you can be intimidating. That's why we on the Home Media review team have done the hard work for you, narrowing down the top 5 auto insurance companies in the industry. In this article, we'll review the company's reputation, availability, coverage options, discounts, and customer experience, going into detail about the five best auto insurance providers.

The best car insurance companies on the market

After we thoroughly researched the auto insurance market, 5 companies stood out among the competition as the best car insurance providers. When ranking these insurers, we consider state availability, breadth of coverage, prices and satisfaction scores from experts like J.D. Power.

We also take into account the financial strength rating and volume of AM Best complaints as reported by the National Association of Insurance Commissioners (NAIC).  We'll take a closer look at our top five picks for the best car insurance companies below.

1 Geico
2 USAA
3 Progressive
4 State Farm
5 Liberty Mutual

Our picks for the best car insurance

Our top five picks for the best auto insurance are Geico, USAA, Progressive, State Farm, and Liberty Mutual.

 

Geico: Editor’s Choice

Average cost: $$
Number of discounts: 16
Usage-based insurance: DriveEasy in 26 states

Geico is our first choice for the best car insurance in the country. The company offers leading services, a wide selection of coverage and cheap car insurance rates, in accordance with our estimated rates.

In addition to standard coverage options, Geico offers useful add-ons such as:

1. Emergency roadside assistance
2. Lease replacement
3. Mechanical damage insurance (MBI)
4. Rideshare insurance

Geico receives an A++ (Superior) rating from AM Best, which means the company has the financial support to pay customer insurance claims. Larger auto insurance companies like Geico come with greater financial stability compared to smaller local companies.

Geico also has a strong customer service reputation. According to the J.D. Power 2021 U.S. Auto Insurance StudySM, Geico performed better than average in california and central and New England counties. The study surveyed customers about their satisfaction with claims, billing, pricing, policies, and more. In addition, our January 2022 insurance survey surveying 1,000 respondents found nearly 12% chose Geico as their insurance provider.

Regarding cost, Geico prices are some of the most affordable we've ever seen. Our fare estimates show that drivers pay an average of about $1,350 per year for full coverage car insurance from Geico. This estimated rate applies to 35-year-olds with good credit and driving records. Our estimates place Geico in the top three companies for affordability compared to other national providers.

In addition, insurance companies offer a number of ways to save money, including good driver discounts (up to 26% off), good student discounts (up to 15% off) and multi-vehicle discounts (discounts up to 25%).

2 USAA: Low Rates for Military

Average cost: $
Number of discounts: 12
Usage-based insurance: SafePilotTM in 38 states

USAA regularly tops J.D. Power's auto insurance studies as one of the best auto insurance providers in terms of customer satisfaction and value. The company is renowned for its high customer ratings and affordable coverage options, including accident forgiveness. However, it is not No. 1 on our list due to its strict eligibility requirements.

 

USAA auto insurance is only available to military members, veterans and their families, which severely limits who can buy coverage. If you qualify for an USAA insurance policy, it is one of the best options available. Beyond the standard type of auto insurance, USAA offers the following optional coverage:

1. Roadside help
2. Car rental replacement
3. Accident forgiveness
4. Glass coverage
5. Guaranteed asset protection (GAP insurance)
6. Car replacement assistance (CRA)
7. Rideshare insurance

USAA receives an A++ financial strength rating from AM Best and A+ from the Better Business Bureau (BBB). The auto insurer will account for 6.32% of the market share by 2020, according to NAIC. Although it is not the largest auto insurance company, USAA still has reputable financial strength. By 2020, the company writes $15.77 billion in personal passenger car insurance premiums.

While USAA doesn't have many physical locations, policyholders are still impressed with the company's customer service. USAA scored highest in the J.D. Power Auto Insurance Study 2021 in any U.S. territory, although it was not ranked due to its eligibility criteria. And in our January 2022 auto insurance survey, nearly 65% of the 1,000 respondents surveyed stated that they were very satisfied with USAA insurance, the highest of any provider.

USAA is also known for its affordability. It offers the cheapest car insurance on average compared to other providers we researched. Our estimated rates show good drivers pay about $1,013 per year for full coverage car insurance with USAA. The company also offers discounts based on driver safety, vehicle safety, some safety policies and features such as airbags and more.

3 Progressive: Low Rates for High-Risk Drivers

Average cost: $$
Number of discounts: 13

Usage-based insurance: Snapshot® (not available in California or North Carolina)

If you are under the age of 21, are an elderly driver or have received a DUI/DWI, Progressive may be the best car insurance option for you. We found that Progressive tends to be one of the cheapest national providers for high-risk drivers other than USAA. Our fare estimates also show safe drivers pay about $1,397 a year for full coverage insurance with Progressive, which puts it just behind Geico and State Farm for affordability.

Aside from the standard types of car insurance, Progressive offers:

1. Roadside help
2. Car rental replacement
3. Loan/rental results
4. Spare parts and special equipment value
5. Rideshare coverage

While Progressive has mixed customer service reviews - it scores above average in half the regions in the J.D. Power Satisfaction Study. Our 2022 auto insurance survey found 74% of Progressive policyholders are satisfied with the coverage. Furthermore, Progressive offers strong financial stability with an A+ rating from AM Best. The company also wrote more than $33 billion in premiums by 2020, according to NAIC.

Their team contacted Progressive for comment on its negative review score but received no response.

Progressives offer car insurance discounts as well as some tools to help lower your rates. Using a mobile app that tracks and records your driving habits, the Progressive Snapshot® program rewards safe driving behavior at a premium discount. On average, drivers who use Snapshot save $146 on their policies, according to Progressive. However, the program is not available in California or North Carolina.

Drivers interested in Progressive policies should also look into your Pricing® Name tool. The insurance company will adjust the various coverage options based on your auto insurance budget.

4 State Farm: Most Popular Provider

Average cost: $$

Number of discounts: 13

Usage-based insurance: Drive Safe & SaveTM (not available in CA, MA and RI)

State Farm is another powerful option when it comes to finding the best auto insurance in the industry. Our January 2022 insurance survey found that insurers were the most popular provider among the 1,000 respondents surveyed, with 13% stating that they bought State Farm insurance.

 

Beyond the standard coverage types, State Farm offers:

1. Emergency road service coverage
2. Coverage of car rental and travel expenses
3. Rideshare driver coverage

Our cost estimates show good drivers pay about $1,339 per year for full coverage insurance with State Farm. This places State Farm among the most affordable national providers.

As the largest auto insurance company in the country, State Farm is no stranger to claim satisfaction – the company has an A++ rating from AM Best. According to NAIC, State Farm accounts for 16.19% of the auto insurance market share by 2020. State Farm also has fewer complaints than the industry average in 2020, although customer reviews of the BBB are mixed.

We chose State Farm as one of the best auto insurance companies in the country in part because of the usage-based and safe driving discounts it offers young drivers. There are two discount programs available through the mobile app:

Drive Safe &Save: State Farm tracks and rewards safe driving habits through the Drive Safe &Save mobile app. By reducing driving behaviors such as fast acceleration, hard braking and speeding, drivers can earn up to 30% of their premium. The program is not available in California, Massachusetts or Rhode Island.

 

Steer Clear®: New teens and drivers can receive course training, mentoring, driving practices and program certification to encourage good driving habits. Upon successful completion of the program, drivers get a discount on their car insurance premiums.

Other State Farm auto insurance discounts include for good grades, safe driving, defensive driving, vehicle safety features and completion of driving courses. The company does not offer military discounts.

5 Liberty Mutual: Good Programs for Young Drivers

Average cost: $$
Number of discounts: 17
Usage-based insurance: RightTrack® in 42 states

Liberty Mutual can be a good car insurance option for families with young or teen drivers. Insurance companies offer competitive prices and discounts, many of which are specifically for young drivers.

There are several additional coverage options in addition to standard types of insurance, including:

1. 24-hour roadside assistance
2. Car rental replacement
3. Replacement of a new car
4. Better car replacement
5. Liberty Mutual Fund® Deductible
6. Replacement of original parts
7. Protection of assets secured by car rental
8.  

Liberty Mutual has an AM Best A rating for financial stability and its ability to pay insurance claims. The insurance company's customer service, however, has mixed reviews of Trustpilot and BBB. Some customers reported problems with communication, while others reviewed the company's claims process positively. In our 2022 insurance survey, 73% of respondents who reported liberty mutual insurance purchases were satisfied with the provider.

Our team contacted Liberty Mutual to comment on this negative review and found that the provider said it always strives to respond to customer complaints and is willing to work with customers to resolve any issues.

Liberty Mutual sering menjadi pilihan yang terjangkau bagi pemegang polis dengan pengemudi remaja. Namun, itu mungkin bukan pilihan termurah untuk jenis driver lain. Perusahaan asuransi mobil menawarkan sejumlah diskon, termasuk penghematan untuk pemilik rumah, militer, siswa yang baik dan pengemudi yang tetap bebas kecelakaan.