The 10 Best Car Insurance Companies (2025)
State Farm is the best overall car insurance company. It has good customer support, an easy claims process, and cheap rates that average $134 per month.
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Top 10 best car insurance companies
Company | Catagory |
Rating
|
|---|---|---|
| State Farm | Best overall | |
| NJM | Best local company l | |
| Erie | Best for low rates | |
| Shelter | Best | |
| Farm Bureau | Best for local agents |
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What is the best car insurance right now?
- State Farm is the best car insurance for most people because it's high-quality and cheap, at an average of $134 per month for full coverage.
- Other top companies include NJM, Erie, Shelter and Farm Bureau which all cost less than $171 per month for a typical driver, on average.
- Based on where you live a smaller company may have the best car insurance in your state
-
Best overall: State Farm
- Best local company: NJM
- Best for low rates: Erie
- Best extra coverage: Shelter
- Best for local agents: Farm Bureau
- Best for teen drivers: Auto-Owners
- Best mobile app: American Family
- Best discounts: Nationwide
- Best customer service: Amica|
- Best for military: USAA
Best car insurance overall: State Farm
-
Editor's rating:
- Full coverage: $134/mo
- Read the full State Farm review
State Farm has the best car insurance for most drivers because it's cheap, reliable, and easy to use.
Cost
Policy experience
Coverage
Affordability by type of driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
State Farm has cheap rates for drivers with a clean record, a ticket, or a recent crash.
Drivers with poor credit should choose Farm Bureau, which is much cheaper than State Farm.
Cost
Affordability by type of driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
State Farm has cheap rates for drivers with a clean record, a ticket, or a recent crash.
Drivers with poor credit should choose Farm Bureau, which is much cheaper than State Farm.
Policy experience
Is it easy to use? | ||
|---|---|---|
| Customer service | ||
| Claims satisfaction | ||
| Few complaints | ||
After an accident, State Farm's smooth claims process can help you get back on the road quickly.
Customers say they're happy with their policies, and the company is easy to deal with.
Coverage
Coverage details and options | ||
|---|---|---|
| Extra options | ||
| Good for bundling | ||
| Can buy online | ||
State Farm is one of the best companies for bundling because it's great for both car and home insurance.
If you want more coverage extras to customize your policy, choose Shelter instead of State Farm.
Best regional car insurance company: NJM
-
Editor's rating:
- Full coverage: $156/mo
- Read the full NJM review
NJM has excellent service, affordable rates, and polices that give you coverage extras for free.
Cost
Policy experience
Coverage
Affordability by type of driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
A full coverage policy from NJM costs around $156 per month for a good driver, which is $19 per month less than average.
NJM is also cheap if you've had an accident, have poor credit, or have a DUI. But rates are about average after a ticket.
Cost
Affordability by type of driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
A full coverage policy from NJM costs around $156 per month for a good driver, which is $19 per month less than average.
NJM is also cheap if you've had an accident, have poor credit, or have a DUI. But rates are about average after a ticket.
Policy experience
Is it easy to use? | ||
|---|---|---|
| Customer service | ||
| Claims satisfaction | ||
| Few complaints | ||
NJM has some of the best customer service in the industry. NJM gets 87% fewer complaints than average, for a similar sized company.
It's also the best company in the country for an easy claims process, according to J.D. Power. That means you can expect NJM to make your life easier after an accident.
Coverage
Coverage details and options | ||
|---|---|---|
| Extra options | ||
| Good for bundling | ||
| Can buy online | ||
A full coverage policy from NJM automatically includes extras that most companies charge extra for.
Full coverage from NJM comes with new car replacement and rental car reimbursement after an accident. It also helps pay your pet's medical bills if they're in the car during a crash.
Best company for cheap insurance: Erie
-
Editor's rating:
- Full coverage: $115/mo
Erie has the best rates of car insurance if you live in the Southeast, Midwest or East Coast.
Cost
Policy experience
Coverage
Affordability by type of driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
Erie has cheap rates for all types of drivers we looked at. Full coverage from Erie costs around $115 per month for a good driver. That's $60 per month cheaper than average.
And if you want a basic policy, minimum coverage from Erie costs an average of $43 per month, which is $26 per month cheaper than average.
Cost
Affordability by type of driver | |
|---|---|
| Good driver | |
| After a ticket | |
| Poor credit | |
Erie has cheap rates for all types of drivers we looked at. Full coverage from Erie costs around $115 per month for a good driver. That's $60 per month cheaper than average.
And if you want a basic policy, minimum coverage from Erie costs an average of $43 per month, which is $26 per month cheaper than average.
Policy experience
Is it easy to use? | ||
|---|---|---|
| Customer service | ||
| Claims satisfaction | ||
| Few complaints | ||
Erie's customer reviews are mixed. The company earns top scores from customers for how claims are handled and the overall policy experience.
The downside is that its auto division receives more formal complaints than average. So not all customers are happy with Erie.
Coverage
Coverage details and options | ||
|---|---|---|
| Extra options | ||
| Good for bundling | ||
| Can buy online | ||
Erie offers lots of ways to upgrade your coverage. You can add extra protection like gap insurance, new car replacement and windshield coverage for an additional fee.
Erie has good home and renter's insurance, so it's a great choice for bundling. But there are few online tools so you'll need to buy and manage your policies through an agent.
Best car insurance coverage: Shelter
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Best if you want a local agent: Farm Bureau
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Best company for families with teens: Auto-Owners
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Best for managing your car insurance online: American Family
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Best auto insurance discounts: Nationwide
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Best-rated customer service: Amica
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Best insurance for military members and veterans: USAA
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Compare the best car insurance companies near you
State Farm and USAA are the best-rated major companies in many states.
The best car insurance for you depends on where you live. A great way to save money on car insurance is to compare quotes from multiple insurance companies in your area.
Top auto insurance companies by state
State | Top pick | Rating |
|---|---|---|
| Alabama | State Farm | |
| Alaska | State Farm | |
| Arizona | State Farm | |
| Arkansas | State Farm | |
| California | AAA |
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List of the top-rated car insurance companies
The key to finding the best car insurance is to get quotes from multiple companies to find the best deal for your situation. Dozens of companies offer affordable rates and great customer support.
How to find the best car insurance for you
The best car insurance companies have the best coverage and support you can afford.
The best company for you:
- Is the best value: It combines reliable customer service and affordable prices to give you a good deal.
- Has the coverage options you 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: Don't limit yourself to the big names you've seen in ads. The best insurance company for you may only operate locally.
- Is financially stable: This helps you feel confident that your claim will be paid so you can get your car repaired quickly.
How to find the best car insurance companies for affordable rates
Shopping around and using discounts are the best ways to lower your car insurance rates.
Get quotes from multiple companies to find the best rate
Every car insurance company calculates rates differently based on your driving history, the type of car you drive, where you live, your credit history and other factors.
For example, nearly all companies charge higher rates if you have a recent accident or driving incident. But not all companies penalize you the same amount.
If you could get the same car insurance coverage for a cheaper price with a different company, wouldn't you do it? You may be surprised by how often this could apply to you.
Ask for car insurance discounts to help you save even more
In addition, you may qualify for car insurance discounts that could change which company has the best quotes 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.
- Defensive driving
- Accident-free
- Low mileage
- Good student
- Student away
- Military
- Professional organization
- Senior
- Multi-policy bundle
- Multi-vehicle
- Early signing
- Paid-in-full
- E-bill or paperless
- Anti-theft
- Anti-lock brakes
- New car
How to find an insurance company with the best coverage
The best auto insurance companies offer the core coverage options that make up the main part of your policy. Liability coverage is often required by your state. Comprehensive and collision can be an optional way to get extra protection on the road.
Extra coverage you can add on
Beyond these basic coverages, insurance companies may offer add-ons. None of these are required by law, so you can choose what you want.
Coverage | Description |
|---|---|
| Accident forgiveness | Your first at-fault accident won't affect your insurance rates. |
| Vanishing deductible | Your deductible gradually declines for each year you're accident-free. |
| Mechanical breakdown | Covers the cost of repairing wear and tear to your car as a substitute for a car warranty. |
| Rideshare insurance | Covers you during the rideshare waiting period when Uber and Lyft coverage doesn't apply. |
How to find the best car insurance for customer support
Use our editor recommendations to find the best car insurance companies in the country. Our five-star ratings are a snapshot of a company's overall quality. This includes customer service, value and coverage.
To learn more about the quality of a company's customer service:
- Browse our editor reviews.
- Look at J.D. Power customer and claims satisfaction survey ratings.
- Compare customer complaints from the National Association of Insurance Commissioners (NAIC).
Car insurance companies with the best customer service handle car insurance claims quickly and fairly.
Great customer support means it's easier to deal with your insurance. This helps your car get fixed as quickly as possible.
The J.D. Power U.S. Auto Claims Satisfaction Survey measures the quality of the claims process, when customer support matters the most. It combines customer feedback on overall satisfaction, claim servicing, settlement of the claim and other factors.
Also use the National Association of Insurance Commissioners (NAIC) to find out about customer satisfaction in your state. The complaint index will tell you if a company receives more complaints than average.
How to find the best company for claims
An insurance company provides you with financial protection when you're facing high costs. The last thing you want is a provider that can't cover your claim.
The best way to quickly assess an insurance company's financial stability is through a credit reporting agency like AM Best. It calculates the ability of insurance companies to pay their claims. Then they're graded on a scale from A++ to D-.
- The best car insurance companies on our list have an A- rating or higher. This means they have an excellent or superior ability to pay claims.
- A company with a rating below a B, or that has recently had its rating downgraded, might have financial problems.
Frequently asked questions
What’s the best car insurance company?
State Farm is the best car insurance company overall for its affordable rates, excellent service and helpful coverage options. Erie and NJM are two of the best local companies.
Who has the best car insurance rates?
State Farm has the best car insurance rates compared to other national companies. Minimum coverage from State Farm costs around $55 per month, and full coverage rates average $134 per month. Companies like USAA, NJM and Erie might have cheaper rates, depending on where you live and whether you qualify for coverage.
How can I find the best car insurance for me?
To find the best car insurance for you, figure out how much and what kind of coverage you need. Then get quotes from several companies available near you for the same level of coverage. Compare each company's quotes, customer support ratings, coverage options and discounts.
Who has the best auto insurance near me?
USAA and State Farm have the cheapest rates and best support among the top insurance companies. But the best car insurance in your state might be a smaller local company like Erie or NJM. That's why it pays to compare quotes from several large and small companies near you.
Which insurance company has the best customer satisfaction?
USAA, State Farm, Erie, NJM and Amica are the top-rated car insurance companies for customer satisfaction. All five companies have high scores on J.D. Power's claims satisfaction survey and earn fewer complaints than average, according to the NAIC.
Methodology
ValuePenguin assigned its editor ratings for insurance companies based on customer service, affordability, coverage options and shopping experience.
An insurance company is not included in the best companies list unless it does business in at least five states. If companies were marked N/A for J.D. Power claims satisfaction or AM Best financial strength, it's because they were not rated. J.D. Power's annual survey rates insurance customer satisfaction out of 1,000 points. Top companies tend to score at least 880 points. We calculated the average score across all available regions and converted that to a 10-point scale for readability. For example, 905 became 9.05.
Our editors collected auto insurance quotes across all available ZIP codes in 50 states and Washington, D.C., to determine average rates. Quotes are based on a 30-year-old man who drives a 2015 Honda Civic EX with a full coverage policy, unless otherwise noted.
Full coverage rates include higher limits than required, as well as comprehensive and collision coverage:
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Comprehensive and collision coverage: $500 deductible
To compare rates for a family policy, our experts gathered quotes from ZIP codes across Illinois, Pennsylvania and Georgia for a 50-year-old with an 18-year-old on their policy. These quotes include the limits above, plus $50,000 of uninsured and underinsured motorist property damage coverage.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your own quotes may be different.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.