Best car insurance companies for 2024 (2024)

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Updated Mar 15, 2024

Geico, Amica and Progressive are among the best car insurance companies in 2024, according to Bankrate’s research.

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The best car insurance company will be different for each person. Every driver will have their own preferences when it comes to their car insurance company, and some insurers will be better able to meet those preferences than others. For instance, some drivers may prefer to choose an insurer with a robust network of agents around the country, while others may prefer to manage their policy online or through an app. Budget, location, discounts and other factors can also help narrow down which insurance provider best suits your needs. Price can be one of the first factors that comes to mind when looking for the best car insurance company, but cheaper doesn't always mean better. The goal is to find an insurance company that fits your budget and balances coverage, customer service and other needs that matter most to you.

Based on our research, the best car insurance companies are:

• Amica and Geico: Best overall
• Progressive: Best for high-risk drivers
• Safeco: Best for added perks
• Auto-Owners: Best budget company
• Travelers: Best for personalized coverage
• State Farm: Best for local agents
• USAA: Best for military-focused coverage
• New Jersey Manufacturers (NJM): Best for coverage on a budget
• Liberty Mutual: Best for bundling numerous products

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Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

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Best for added perks

Best for local agents

Best for personalized coverage

Best for military-focused coverage

Best for coverage on a budget

Best for bundling numerous products

How Bankrate picked the best auto insurance companies

We used our car insurance expertise and extensive data to assess the insurance industry's landscape and provide an easy-to-use shopping and comparison tool for consumers. Along with reviewing each company’s coverage options, discount opportunities, digital features and third-party scores, we obtained up-to-date average rate information for both full and minimum coverage from Quadrant Information Services. We combined this information into a Bankrate Score out of 5.0 total points. The higher a company’s Bankrate Score, the more competitively that company ranked in each scoring category. Our picks highlight auto insurers that:

• Generate a 3.5 or higher Bankrate Score
• Earn a J.D. Power claims satisfaction score within 20 points of the industry average or higher in the 2023 U.S. Auto Claims Satisfaction Study
• Carry an “Excellent” or “Superior” financial strength rating from AM Best
• Have a strong digital presence with a consumer-friendly mobile app or digital policy management features
• Are deemed by Bankrate’s insurance review to be the best in a particular market category

While we stand by our picks for the top car insurance companies on a national level, it is important to know that the best insurers will vary by state. To determine the best auto insurance company in your state, you’ll want to look at more than just each carrier’s average cost of car insurance.

Although average price is important, third-party customer satisfaction scores can vary widely between regions. This means that one company might shine in one part of the country but not fare as well in another. To help you find the best car insurance in your state, Bankrate conducted extensive research into the car insurance markets in all 50 states and Washington, D.C. and evaluated the largest carriers by market share using our proprietary Bankrate Score method.

Car insurance rates by state

To assist our readers no matter where they live, we’ve created the interactive map below of car insurance rates by state. With a gist of what car insurance costs in your state, you can better understand what’s considered a normal price range for your policy.

Average auto insurance premiums based on a 40-year-old driver with a clean driving record and good credit.

Auto insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

• Bodily injury liability coverage can help pay for costs related to the other party’s injuries if you are found at fault for an accident. Most states mandate that you carry a certain amount of bodily injury liability per person and per accident.
• Property damage liability coverage helps pay for damage you cause to someone else’s vehicle or property if you are found at fault for an accident. Property may include fences, poles, buildings and more.
• Uninsured and underinsured motorist coverage pay for your injuries (and, in some states, your property damage) if it was caused by a driver who either lacks sufficient coverage or any coverage at all.
• Personal injury protection (PIP), also known as no-fault insurance and only available in certain states, pays for medical expenses you and your passengers incur following an accident, regardless of fault. It also accounts for non-medical expenses incurred as a result of an accident, such as lost wages or the cost of childcare.
• Medical payments coverage is similar to PIP insurance coverage but includes only payments for medical expenses. It is required in some states and optional in others.
• Comprehensive coverage is for a broad range of non-collision-related damage. This can include vehicle theft, fire, weather damage and more. Comprehensive coverage can also help if you hit an animal.
• Collision coverage helps cover damage to your vehicle if you’re involved in a collision, whether you hit another vehicle, a stationary object or a pedestrian.

While the main types of car insurance coverage are listed above, every carrier is different and may offer unique or specialized coverage options. For instance, if you purchase a brand-new vehicle, you may be interested in new car replacement coverage. Or, if the roads near you are full of potholes that could pop your tire, roadside assistance might be worth looking into. Speaking with your agent and reviewing your options online can help you find coverage tailored to your needs.

Minimum vs. full coverage car insurance

Minimum and full coverage insurance are terms commonly used to describe an auto insurance policy. Understanding the vast distinction between the two is paramount when searching for the right levels of financial protection.

Minimal coverage refers to a bare-bones policy that carries only the state-mandated insurance limits. Typically, this includes only bodily injury and property damage liability at the lowest limits allowed, but depending on state coverage requirements can also include other coverage types, such as personal injury protection. This option covers damage to others up to the policy limit but does not pay for damage to your vehicle if you are at fault for an accident, which is one reason it is usually the cheapest available option.

A policy with liability limits higher than the state requires but without physical damage coverage, would be considered a liability-only policy instead of a minimal coverage policy.

Full coverage insurance includes liability coverage plus comprehensive and collision coverage. The limit of liability can range from state minimums up to the highest option available by the insurance provider, but the key difference is that a full coverage policy provides financial protection for your vehicle whether you are at fault for an accident, a victim of theft or vandalism, or experience weather damage.

Since there isn't an industry-standard definition of full coverage, some insurance providers may add roadside assistance, gap insurance and rental reimbursem*nt to your policy if you request full coverage, so work closely with your agent and read your paperwork carefully to avoid paying for more coverage than you need.

Should you get minimum or full coverage car insurance?

The right coverage amount for you will strike a balance between how much you can reasonably afford for your policy and how much financial risk you’re willing to assume. If you're mostly concerned with getting a cheap premium, then a minimum coverage car insurance policy might work best for you: it meets your state’s legal insurance requirements and almost always costs less than full coverage. Plus, minimum coverage could be the best insurance for older cars or ones near the end of their driveable years. However, with minimum coverage, you could wind up with significantly higher out-of-pocket costs after an accident. This kind of car insurance only helps pay for the damage you cause in an accident. If you’re at fault for an accident and there’s damage done to your vehicle, you would be left footing the bill on your own.

A full coverage car insurance policy will increase your premium, but it comes with broader protection for your vehicle and finances. Vehicle repairs and medical expenses after an accident can get expensive fast, and purchasing more car insurance coverage can act as a valuable financial safety net. Bankrate found that only 44 percent of U.S. adults are able to spend $1,000 or more from their emergency savings. With that in mind, many insurance experts suggest opting for full coverage or at least purchasing higher liability limits than the state minimums.

Car insurance basics

The coverage you choose is not the only thing that influences the cost of your policy. Insurance providers use unique underwriting algorithms to determine how much of a risk you are to insure and the likelihood that you will file a claim. Not all carriers weigh each factor the same, and they may not be able to take certain factors into account depending on your state’s laws.

• Driving record: If you have a history of at-fault accidents, tickets or DUI convictions, you may find fewer companies to choose from since high-risk drivers are not eligible for coverage from every carrier.
• Age and driving experience: Younger drivers have less experience on the road, leading to a higher accident frequency. This can often lead to higher car insurance rates. Unless you’re in Hawaii or Massachusetts, which ban age as a rating factor, the best company for drivers insuring young drivers may be ones that offer student or telematics discounts to offset premium increases.
• State and city: States have different insurance laws, accident statistics, crime rates and living costs. Because of this, insurance companies may not be available in certain states or even in some cities or ZIP codes.
• Vehicle make and model: The best insurance for cars with easy-to-source replacement parts may be cheaper than ones for more high-end vehicles. Driving a vehicle that comes equipped with safety features may also help you save on insurance.
• Credit-based insurance score: Unless you live in California, Hawaii, Massachusetts or Michigan, your credit history will factor into your insurance premium. Drivers with poor credit generally pay more, while drivers with good or excellent credit tend to pay less.
• Insurance lapse history: If you’ve allowed your car insurance coverage to lapse, your insurer may charge more for your policy. A lapse in coverage could signal that you are a higher-risk driver and therefore more likely to file a costly claim.

How much does car insurance cost?

Proprietary data from Quadrant Information Services indicate that the national average cost of car insurance currently sits at $2,545 per year for a full coverage policy and $741 for minimum coverage. However, these figures are just a baseline. Car insurance is highly individualized, and rates vary based on numerous personal factors.

Location is just one of those factors. In general, states that pose higher risks for filing claims (whether that is due to elevated levels of vehicle theft, extreme weather, traffic congestion, poor highway infrastructure or something else) will likely see higher average car insurance rates.

Driving incidents can also affect the total cost of your car insurance. Drivers with speeding tickets could see their premiums costing more compared to drivers with clean records. Your state’s laws and your age, gender and credit history can also determine how much you pay for car insurance. For a more specific overview, you might want to research the average insurance cost in your state.

Why is car insurance so expensive?

There’s no single answer for the cost of car insurance. Inflation does factor into it, but it’s not the only thing making car insurance more expensive. For the past several years, insurance companies have been facing high loss ratios, meaning they are paying out more money in claims than they intake in premiums. To stay in the green, insurance companies are all but forced to raise rates — even for drivers without claims or coverage changes.

High levels of vehicle theft have also made car insurance more expensive in recent years. 2022 saw one million vehicle thefts, the highest recorded number since 2008. Because the risk of vehicle theft is higher than usual, insurers usually raise comprehensive coverage costs to account for it. Repair costs are another element; as vehicles become more high-tech, they also become more expensive to fix after an accident. By the end of 2022, the average cost of vehicle repairs was up 12 percent.

How to find the best rates on car insurance

Although you can’t control some of the factors that are used to determine the cost of your car insurance, there are a few things you can do to help secure a competitive rate:

• Shop around: Car insurance companies use unique rating algorithms to determine your premium, so you’ll get a different rate with each carrier. You may wind up paying a lower premium if you take a little extra time to compare auto insurance companies.
• Shop early: Shopping up to a month ahead of your renewal date can be helpful, as it allows you time to gather quotes and make a decision. Most companies require at least a month’s down payment, so make sure you account for that in your budget.
• Utilize discounts: Most carriers, from the top auto insurance companies to local agencies, offer their customers a selection of discounts. Exact offerings and eligibility will vary among providers.
• Participate in a telematics program: A telematics device tracks your driving habits. If you drive safely and obey traffic laws, your insurer might reward you with a discount.
• Keep a clean driving record: At-fault accidents and tickets are signs that you may engage in risky driving behaviors and can significantly increase your rates.
• Consider your vehicle: While not the most practical step for everyone, you could consider shopping for a different vehicle if you need to lower your rates drastically.
• Set realistic expectations: Not all drivers will be able to score an amazing deal on their insurance. For example, if you have a DUI conviction on your record, data show that average rates for a full coverage policy can be up to 86 percent more.

Types of car insurance discounts

When navigating the world of insurance, being aware of discount opportunities can help you find the best auto insurance and significantly reduce your overall premium. When comparing auto insurance companies, keep in mind that not every discount is available in every state and eligibility requirements change depending on your provider.

Here are some of the best car insurance discounts to ask your insurance agent about:

Between 2023 and 2024, the cost of car insurance increased. Bankrate’s proprietary rate data indicates that the average cost of full coverage car insurance rose from $2,014 per year in January 2023 to $2,545 per year in February 2024. This is 26 percent more, and rates are expected to continue rising into 2024. Insurance rates are reactionary — claims get more expensive, and companies increase premiums in response.

As premiums continue to rise, it’s important to understand how car insurance costs are affected. The cost of car parts has increased over the past few years due to ongoing shortages and shipping delays. Along with higher labor costs, this makes the overall cost of claims higher. Paired with poor post-pandemic driving habits, the result is higher car insurance premiums for policyholders. Finding the best coverage for your needs and budget is crucial. Ensuring you have proper coverage could help reduce the financial risk of being underinsured. Bankrate’s editorial team continues to monitor the insurance industry and speak to industry experts.

Bankrate talked to three experts in the car insurance industry to get their takes on the current environment.

Our industry experts weigh in

Mark Friedlander

Director of corporate communications, Insurance Information Institute

“Car insurance rates are expected to continue to increase in 2024 due to more costly repairs, driven by parts shortages and higher costs of labor, as well as low inventories of vehicles, which generates higher costs of replacing totaled cars. From 2020 through 2023, replacement costs increased an average of 45 percent cumulatively, whereas inflation for the overall U.S. economy increased 15 percent within the same timeframe. Triple-I forecasts the U.S. personal auto insurance industry to post a substantial underwriting loss in 2023 with a 110.5 combined ratio, meaning auto insurers are paying out more than $1.10 for every dollar collected in premium. This is a slight improvement over the industry’s 112.2 combined ratio in 2022. A key factor in determining underwriting profit is accident severity. Since the pandemic began in 2020, loss costs for accidents have been outpacing premiums charged, resulting in many insurers raising rates multiple times to offset losses. We are starting to see premiums catching up with loss costs. Unless replacement cost begins to decrease materially — which is not currently forecast — we expect the personal auto insurance line to remain at an underwriting loss through 2025."

Bankrate utilizes Quadrant Information Services to analyze the latest rates in February 2024 for ZIP codes and carriers in all 50 states and Washington, D.C. Rates include the most recent approved rate changes filed by insurance companies that affect our profile. These revised rates are then weighted based on the population density in each geographic region so that policyholders can see the impact rates have in their areas. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Bankrate Scores methodology