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Best car insurance companies for January 2023

 Bankrate’s proprietary research method revealed that USAA, Clearcover and Geico are among the best car insurance companies in 2023. 

The best car insurance companies in January 2023

The best car insurance companies offer competitive rates that fit your budget, extensive coverage options, discounts to help you save, high third-party customer satisfaction and financial strength scores, and strong digital tools. Our extensive research revealed that these 10 insurers are some of the best car insurance companies available. We’ve highlighted each company’s standout feature to help you decide which insurer fits your specific needs. For example, if you’re looking for a long list of discounts, you may want to get a quote from Auto-Owners, but if you prefer to manage your policy digitally, Progressive could be the better option. Your car insurance needs are unique to your situation, so understanding what you want from an insurer and shopping around can be an important step when looking for the best car insurance.

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Best Car Insurance Companies for 2023

The Best Car Insurance Companies for 2023
To help you shop for car insurance, MoneyGeek ranked the best car insurance companies on several factors, including J.D. Power customer satisfaction ratings, financial stability ratings from AM Best and affordability. Using these metrics, MoneyGeek found that of the big insurers available to most shoppers, the best car insurance companies are GEICO and State Farm. GEICO received the highest marks in our scoring system for 24 out of 50 states, while State Farm ranked as the top company in 10 states.

Those just looking for the most affordable option can compare this list to our rankings of the cheapest car insurance companies.

Best car insurance for full coverage: State Farm

State Farm has the best full coverage car insurance rates in most states. It also ranks as one of the most reliable companies for customer service and claim satisfaction.

With State Farm, drivers don't have to pay more for excellent customer service. It is one of the most affordable large insurance companies. A full coverage policy from State Farm costs around $99 per month — 33% less than the national average.

If you're involved in an accident, a company with a smooth claims process will help you get back on the road quickly with minimal out-of-pocket costs.

State Farm consistently receives above-average customer satisfaction scores from J.D. Power and the NAIC.

Although State Farm is known for having great support, the online quote process is not the most convenient. You might need to call an agent to finish signing up for a policy.

Best liability-only car insurance: Erie

Erie offers some of the best car insurance rates for minimum and full coverage.

Drivers looking for a minimum coverage policy — one that only meets the insurance minimums required by their state — can get significant savings with Erie. Minimum coverage car insurance policies from Erie cost around $39 per month, which is 33% cheaper than the national average.

Average monthly car insurance quotes

Full coverage insurance is also very affordable from Erie. The company charges $101 per month, which is 32% cheaper than the national average.

Unfortunately, Erie Insurance is only available in 12 states and Washington, D.C. That means most drivers can't buy a policy from Erie. Drivers that can't get car insurance from Erie should consider State Farm.

If you can get coverage from Erie, you can rest assured that you'll be taken care of if you're in an accident or need to make changes to your policy. Erie has a reputation for excellent customer service. It earned the second-highest score on J.D. Power's claims satisfaction survey.

Best-rated car insurance company: Amica

Amica is the best-rated widely available car insurance company when it comes to customer service.

Choosing a company with a reputation for great service is just as important as finding the cheapest rate. If you're ever in a car crash, you'll want your insurance company to make the claims process easy so you can get back to normal quickly.

Amica earned one of the highest scores on J.D. Power's claims satisfaction survey, which means drivers are happy with its claims process. In addition, it only receives around two-thirds as many complaints as other insurance companies of a similar size, according to the NAIC.

Amica's great service comes at a price though. A full coverage policy from Amica costs around $208 per month, which is 41% more expensive than the national average. Although the company offers lots of discounts, most drivers can probably find cheaper coverage elsewhere.

Best for families with teen drivers: Auto-Owners

Auto-Owners has the best car insurance rates for parents adding a teen driver to their policy.

Since young drivers are more likely to get in an accident, teen drivers generally pay high car insurance rates. Parents that add a teenager to a policy will find the cheapest quotes at Auto-Owners.

Full coverage from Auto-Owners costs around $153 per month for a 50-year-old and an 18-year-old on the same policy. That's $118 less per month than average.

Auto-Owners also has affordable rates for young drivers who buy an individual policy. Minimum coverage from Auto-Owners costs $121 per month for an 18-year-old driver, on average. That's 34% cheaper than the national average.

Monthly quotes for an 18-year-old driver

Auto-Owners offers several discounts for teen drivers to save money on car insurance. Young drivers can earn a good student discount of up to 20% by maintaining a "B" average or better.

Drivers can expect a great customer service experience with Auto-Owners. This can be particularly useful for teen drivers, who are more likely to get in an accident and might need extra help from an agent who can walk them through the claims process. The company receives fewer complaints than competitors of a similar size, according to the NAIC.

Best car insurance for new drivers: Allstate

New drivers can find the best minimum coverage car insurance rates from Allstate.

New drivers tend to pay more for car insurance. Their lack of experience behind the wheel means they're more likely to make a mistake and cause an accident. This makes them more expensive to insure.

New drivers under age 25 pay around $100 per month for a minimum coverage policy from Allstate. That's $89 per month cheaper than average. Allstate has the cheapest minimum coverage rates for new drivers over 25, too. At $34 per month, coverage from Allstate is $41 less per month than average for these drivers.

Allstate also offers lots of discounts that new drivers can easily qualify for. For example, Allstate offers discounts for making automatic payments or signing up for its usage-based program, which tracks your driving habits and helps you save more as you get more driving experience.

However, new drivers who get in an accident may not have the best experience with Allstate. Although Allstate receives fewer NAIC complaints than similar insurance companies, Allstate scores below average on J.D. Power's claims satisfaction survey.

Best car insurance for drivers with accidents or tickets: Farm Bureau

Farm Bureau raises full coverage rates by only 32% when drivers have a single at-fault accident. The average rate increase is 49%.

If you've caused a car crash recently, insurance companies are going to charge you higher rates. However, they won't all penalize you to the same degree.

Other companies increase rates by an average of 49% after an at-fault accident, or an extra $72 per month. With Farm Bureau, you can expect an average rate increase of only $43 per month.

Monthly full coverage car insurance quotes with an accident

While Farm Bureau is an affordable company in most states, you will need to join your local Farm Bureau group to buy a policy. While membership is open to anyone, not just farmers, you'll typically have to pay a fee of around $50 per year.

Best car insurance company for drivers with bad credit: Geico

Geico has the best car insurance quotes for drivers with poor credit scores, at $212 per month for full coverage.

Your credit score can have a major impact on the price of your auto insurance in most states. Drivers with poor credit pay an average of 72% more for car insurance than people with a good credit score.

Drivers with a poor credit score will only pay 51% higher car insurance rates with Geico.

Monthly full coverage car insurance rates based on credit score

Geico has affordable rates for drivers with poor credit, but it might not be the cheapest company if you have a good credit score. Companies like State Farm, Erie and Auto-Owners tend to have cheaper rates for drivers with good credit, and they have better customer support.

Best usage-based car insurance: Nationwide

Nationwide offers the best usage-based car insurance for people who don't drive much or have good driving habits.

Drivers get a 10% discount when they sign up for the Nationwide SmartRide program. You'll use an app or plug-in telematics device to monitor your driving habits for four to six months, and then you can earn a permanent discount of up to 40%.

One major benefit of SmartRide is that your rates can't go up if you get a bad driving score, unlike with some other usage-based programs.

That makes SmartRide ideal not just for safe drivers but also for people who want help improving their driving abilities.

People that don't drive often can also save with Nationwide SmartMiles, which is the company's pay-per-mile program. With SmartMiles, you pay a monthly base rate plus a per-mile rate, so you're rewarded with lower rates for driving less.

However, Nationwide's rates are on the expensive side for drivers that don't qualify for discounts or aren't comfortable having their driving tracked. At $164 per month, full coverage insurance from Nationwide is 11% more expensive than the national average.

Best car insurance coverage options: Travelers

Travelers offers lots of extra coverage options that you can purchase that you won't find with every company, including gap insurance, rideshare coverage and new car replacement.

That's why drivers that need more coverage than a basic car insurance policy provides should consider Travelers.

Best car insurance for military members and veterans: USAA

USAA has some of the best rates and quality service if you're a military member, veteran or family member.

A full coverage policy from USAA costs $91 per month, on average. That's 39% cheaper than the national average.

USAA is one of the top-ranked companies for customer support. According to the NAIC, USAA consistently receives fewer complaints from drivers than its competitors. USAA also holds the highest J.D. Power claims satisfaction score nearly every year.

USAA offers discounts that cater to the lifestyles of military drivers. If your vehicle is garaged on a military base, you can get a discount of 15% on the cost of comprehensive insurance. You can also get a vehicle storage discount that can save you up to 60% on car insurance if your vehicle is stored in a secure location while you're deployed.

Unfortunately, you'll need to qualify for USAA membership to get a car insurance policy. Membership is limited to current and former military members and certain family members.

Compare the best car insurance companies by state

The best car insurance company for you will depend on where you live. A great way to save money on car insurance is to compare quotes from multiple insurance companies in your area.

List of the top-rated car insurance companies

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

How to find the best car insurance for you

The best car insurance company should have the best coverage and support you can afford.

  • Combines reliable customer service and affordable prices, making it the best value.
  • Has all the coverageyou want. Some drivers just need the basics, while others need extra coverage like gap insurance or rideshare protection.
  • Is local to you and available in your state. The best insurance company for you may only operate locally, so it may not be a big name you've seen in ads.
  • Is financially stable so your claim will be paid out and you can get your car repaired quickly.

How to find the best car insurance company for affordable rates

If you could get the same car insurance coverage for a cheaper price with a different insurer, wouldn't you do it? You may be surprised by how often this could apply to you.

Get quotes from multiple companies to find the best deal for you

Every car insurance company calculates rates differently for a given driver. You could get a cheaper insurance policy with the same quality of service.

For example, nearly all companies charge higher rates if you have a recent accident or driving incident. But not all companies penalize you to the same extent. Someone with an accident history is treated differently by each company based on that company's risk calculation for that particular driver.

Each car insurance company will also have unique calculations for the type of car you drive, where you live, your credit history and a variety of other factors. That's why you should compare quotes from multiple companies, especially if your driving record recently changed.

Ask for car insurance discounts to help you save even more

In addition, you may qualify for car insurance discounts that could affect which company is the cheapest for you. Make sure your final quote has all the discounts you qualify for. Compare rates between companies after you've applied all available discounts.

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