Best Car Insurance Companies for 2023

When it comes to finding the best car insurance company, drivers need comprehensive protection at an affordable price. And with so many auto insurance companies to choose from, finding the best car insurance coverage can take time.

The Ascent can help. We've researched car insurance companies, compared prices from insurers nationwide, reviewed customer experiences, and performed in-depth research into dozens of different insurers. With a focus on price, claims handling, and customer service, we've chosen the best types of insurance for drivers in different circumstances.

Drivers from all walks of life -- from typical motorists to high-risk drivers, teens to veterans -- can find recommendations for the best car insurance companies to meet their needs.

The average driver between the ages of 30 to 45 pays $1,638 a year for auto insurance. That's a significant annual expense. Fortunately, some insurers are more price-conscious than others.

The cheapest car insurance for each individual driver's situation will vary. For example, some insurers may offer the lowest priced policies for those who have been in accidents but may not provide very competitive premiums for teen drivers. Other insurers may be the cheapest for those with a perfect driving history, but may be very costly for motorists with classic cars.

Because of regional price variation as well as the fact insurers price policies differently for motorists in different situations, the only way to get the lowest-price auto insurance is to shop around and compare quotes from multiple different insurers.

Still, some auto companies are known for generally providing lower-priced policies so they may be a good place to start when getting quotes if affordable coverage is important. Here are The Ascent's picks for the best cheap car insurance.

• Geico
• Nationwide
• State Farm
• USAA
• Erie

Click here to learn more about our selections for most inexpensive car insurance.
Remember, though, price is just one consideration. It is equally as important to make sure an insurance company offers the types of coverage necessary and has a good reputation.

Drivers should also avoid reducing premiums by skipping out on optional coverage such as collision coverage. While this may make premiums lower, it could cause financial disaster if major losses end up not being covered due to a driver not having the right types of insurance.

Many auto insurance companies offer reduced prices on auto insurance for current and former military members and their families.

Insurers do this for many reasons, including an assessment that service members will present a lower risk or a desire to give back to those who have served their country. In fact, there are some insurers (such as USAA) that only provide coverage to military members because they exist to provide affordable financial products to this population.

While veterans should shop around for insurance like everyone else, it is always a good idea to focus on insurers that offer them special discounts or exclusive coverage options first. The Ascent's picks for the best car insurance for military members include:

• USAA
• Armed Forces Insurance
• Geico

Teen drivers are a very high-risk and expensive population to insure. Statistically, they are more likely to become involved in accidents due to a lack of driving experience as well as an increased tendency to engage in riskier behaviors behind the wheel. As a result, insurers generally charge much more when a teen driver is on an auto insurance policy.

Still, some insurers do not charge as high a premium as others for younger motorists.

The Ascent's picks for the best car insurance for teens include:

• Allstate
• Progressive
• Liberty Mutual
• State Farm
• Geico

It is typically much cheaper for a teen to be added to a parent's policy than to purchase an independent policy of their own. Indeed, many insurers will not offer standalone coverage to teen drivers.

Young motorists can also reduce premium costs by taking advantage of good student discounts or completing a driver's education course.

Car insurance is a type of insurance policy that protects against financial loss. Auto insurance pays the bills if the policyholder causes an accident. Depending what kind of coverage a person buys, it also helps pay for repairs or replacement of their own vehicle.

Here are some of the costs car insurance can cover:

• Repairing or replacing the vehicle after a fire, theft, or other disaster
• Medical bills if the driver is hurt in an accident
• Lost wages if injuries from an accident stop the driver from working
• Losses another motorist causes if they are uninsured or underinsured
• Damage to other people's property the policyholder causes with their vehicle
• Injuries others experience if the policyholder causes a crash
• Rental car expenses if the vehicle is in the shop for repairs
• Emergency roadside assistance

Motorists don't have to buy all of these types of car insurance coverage. But they should buy the best car insurance coverage to protect against losses they can't afford to pay for out of pocket.

Drivers should follow certain steps to get car insurance in order to protect their assets, comply with state laws, and get the best coverage at the most affordable price. Here are the steps to getting a policy.

1. Gather the required information

Auto insurance companies require certain information in order to provide an auto insurance quote or apply for a policy. This includes:

• Details about the vehicle(s) to be insured including the make, model, year, and safety features
• Details about the driver(s) to be insured including the driving record and ages of all individuals in the policyholder's household who may drive the vehicle
• Details about where the vehicle will be kept
• Information about how often the vehicle will be driven

The easiest way to obtain accurate information about insuring a car is to provide the Vehicle Identification Number (VIN number). This way, the insurer can determine many of the details automatically rather than motorists having to investigate exactly how many airbags their car has or whether it has a theft deterrent system and what kind.

2. Determine how much coverage is needed

The next step is to determine how much coverage is needed. Drivers must decide:

• What kinds of insurance they want.
• How much their policy limits should be
• What their deductible should be
• What add-on coverage or riders they want

Drivers must ensure they have at least the minimum required liability coverage that is mandated by their state. Usually, this includes:

• Personal injury liability or bodily injury liability: This pays for injury caused to others
• Property damage liability: This pays for property damage caused to others

Some states also require:

• Personal injury protection: This pays for injuries for the policyholder and other household members in case of minor accidents regardless of who caused the collision
• Uninsured or underinsured motorist coverage: This pays for a policyholder's losses caused by another driver without enough insurance

There are also certain types of coverage that may be required by lenders or lessors but that are not typically required by law and that would be optional for those without a car loan or lease. These include the following:

• Collision coverage: This pays for damages a policyholder sustains in a collision they cause or in a single-car collision not caused by another motorist
• Comprehensive coverage: This pays for non-crash-related collisions such as damage from theft or falling objects
• Medical payments coverage: This pays for medical bills a policyholder or passengers incur in a covered accident
• Gap insurance: This pays the difference between the market value of a vehicle, which is what insurance pays when a car is totaled in a covered loss, and the amount that is still owed on a car loan. Many lenders and lease providers require this type of coverage

Drivers should ensure their policy limits are high enough to protect their assets. This means they should often buy more than the state minimum insurance coverage, since accidents can cause serious and costly damage. It is worth transferring the risk of these devastating losses to an insurer since few people can afford to replace a car out of pocket or to cover the cost of damaging injuries they cause to others in a crash.

Consumers buying auto insurance should also make certain their deductible is affordable as they must pay this amount out of pocket if a covered loss occurs.

3. Obtain multiple insurance quotes

Premium prices and coverage options vary from one insurer to another. Drivers should obtain quotes from multiple different insurance companies to get the best coverage at the best price.

Motorists can get auto insurance quotes themselves online. They can also work with an independent insurance agent who will compare offerings from multiple insurers to help them find the best rates. When drivers are getting quotes on their own, they should be as specific as possible in terms of vehicle type, coverage needs, and driver history to obtain accurate quotes.

Drivers should also check what discounts they may qualify for with different insurers. Discounts may be available for safe driving, working for a certain employer, good grades, bundling coverage or buying multiple policies, and for a host of other reasons.

After getting at least three to four quotes, drivers can compare pricing and terms to find the best coverage.

4. Read reviews and customer rankings

While price is important, it is not the only factor that matters when buying insurance. No one wants to have problems making a claim or experience poor customer service after an auto accident.

Drivers should check J.D. Power Rankings when shopping for insurance to see how different companies fare in terms of customer satisfaction and claims handling. Motorists shopping for coverage should also read online reviews, check for Better Business Bureau Accreditation, and review the complaint database operated by the National Association of Insurance Commissioners to see how many complaints a particular insurer has received.

5. Apply for an auto insurance policy

After comparing quotes and reading reviews, it is time to officially apply for a policy. This will mean providing more detailed information including a driver's license number, VIN number, and Social Security number.

Many insurers allow online applications and it is often possible to obtain approval and proof of insurance immediately.

Drivers must make sure they have insurance before picking up a vehicle from a dealer or from a private seller, as it is unlawful to drive an uninsured car. Drivers should also take care to avoid a gap in insurance coverage when shopping for a new policy, as this can also be unlawful and can cause higher insurance rates in the future.

To find the best car insurance rates, drivers will need to get personalized quotes from different insurers. That's because prices can vary dramatically depending on an individual motorist's circumstances.

Drivers should get multiple auto insurance quotes from at least three to five different insurers, and more if possible. There are many online websites that make it easy to get multiple quotes at once, which simplifies this process.

The fastest way to compare multiple quotes is to provide a vehicle identification number (VIN) so the car insurance company can automatically obtain important details about the vehicle.

Motorists should also be sure to look for discounts, including for safe driving or vehicle safety equipment, as well as for good grades for teens or membership in certain organizations.

Below are the typical average annual rates of several of the larger auto insurance companies from across the country. These rates are based upon the average driver profile with a clean driving record.

As you can see the rates will vary greatly between companies so it is always recommended to obtain several car insurance quotes before making a final purchase decision.

There are many different types of car insurance drivers should consider purchasing. Here are some coverage types.

Liability coverage

Liability insurance covers losses that the policyholder causes other people to experience. For example, if a policyholder caused a crash, injuring a victim and damaging the victim's vehicle, the policyholder's liability coverage would pay for the victim's injuries and damages.

Liability coverage can be divided into two subtypes:

• Bodily injury liability: This pays for physical injury that a motorist causes others to experience. For example, if a driver hurt someone in a collision, their bodily injury liability would pay for that person's medical bills, lost wages, pain and suffering, and emotional distress.
• Property damage liability: This pays for damage that a covered motorist causes to other people's property. If a policyholder hits a vehicle or drives their car into someone's house, their property damage liability coverage would pay to repair or replace the vehicle or make repairs to the house.

The majority of states require liability insurance coverage, both to pay for bodily injury and property damage. Under California auto insurance requirements, for example, a motorist must have:

• $15,000 in injury liability coverage per person
• $30,000 in injury liability coverage per accident
• $5,000 in property damage liability coverage

Many people should buy more than the minimum required insurance if they want the best car insurance. If drivers don't and they cause an accident, they could be held personally liable. If a motorist gets into a collision and causes a death, they could be sued for millions of dollars. Having just $15,000 in coverage would do little to protect their assets.

Personal injury protection (PIP) coverage

Personal injury protection, or PIP, pays for the policyholder's medical bills and lost wages in cases of minor accidents, regardless of who is at fault for the crash.

A total of 15 states require PIP. These are called "no-fault states." People who live in no-fault states must use their own insurance to pay for losses after minor accidents. That's true even if another driver were to blame. In PIP states, drivers generally cannot pursue a claim against another driver or file a personal injury lawsuit after a car accident unless they have sustained serious, costly injuries. The specific rules for when a driver can sue after a crash vary by state, but often permanent impairment or other very severe injuries are required.

For example, a policyholder who sustained $5,000 in medical bills and incurred lost wages after a fender bender due to minor injuries would be able to obtain coverage for their medical bills and partial lost wages through a PIP claim. But a policyholder who was left paralyzed and who incurred millions in damages as a result of a collision caused by another driver might still be able to pursue a claim against the at-fault motorist even in a no-fault state.

New York is an example of a no-fault state. It requires drivers to buy at least $50,000 in PIP coverage when purchasing New York auto insurance.

There are also three "choice" no-fault states. There, motorists can opt to buy PIP coverage or choose a different policy often called a "full-tort policy." A full-tort policy always allows someone to sue other drivers, even after minor collisions.

Uninsured/underinsured motorist coverage

This type of coverage pays for losses another driver should cover but can't because they don't have any or enough insurance.

Without uninsured or underinsured coverage, a person who was involved in an accident with an uninsured motorist or with a driver who had no insurance could be forced to pay for medical bills and vehicle repairs out of pocket. With uninsured motorist or underinsured motorist coverage, the policyholder's own insurer stands in for the at-fault driver who had too little or no insurance.

Say a policyholder sustained $10,000 of damage in a hit-and-run or with a driver who had no insurance. The policyholder's uninsured motorist coverage would cover up to $10,000 of losses the hit-and-run driver or uninsured driver should have paid for. Or if a driver sustained $50,000 in injury damage caused by a driver who had only $25,000 in bodily injury liability insurance, the driver's underinsured motorist coverage would pay for the uncompensated losses up to policy limits.

A few states require uninsured or underinsured motorist coverage. For example, in Connecticut, drivers must have $25,000 per person and $50,000 per accident in insured motorist coverage.

Collision insurance

Collision insurance is not required by state law, although some lenders and leasing companies require it. Even when it is not required, motorists typically should purchase collision coverage. Remember, liability insurance won't pay for anything that happens to the policyholder's own car, even with the best policy. So a policyholder could buy collision insurance to make certain they can afford to repair or replace their vehicle in the event of a crash.

Without collision insurance, a policyholder who lost control of their vehicle and crashed into a tree on an icy road would have no auto insurance coverage for the damage. They would have to pay for repairs out of their own pocket or even buy an entirely new vehicle out of their own pocket if their car was totaled in the wreck. With the average cost of a new vehicle coming in at over $48,000, this would be a substantial financial burden for most motorists.

Policyholders must choose a deductible for their comprehensive coverage. This is the amount they would pay out of pocket if they cause a crash that damages or destroys their vehicle.

Comprehensive insurance

Comprehensive coverage is also not required by state law, although lenders and lessors may require it. Most drivers will find they need it even if it is not mandatory. It pays for any losses to a vehicle that don't result from a car crash. For example, comprehensive coverage pays for windshield damage or to repair or replace a vehicle after a tree falls on it.

Comprehensive insurance is also called "other than collision coverage. Some of the different kinds of losses that this type of policy may pay for include:

• Theft
• Fire
• Vandalism
• Natural disasters such as a tornado or hailstorm
• Falling objects
• Animal damage
• Riots or civil disturbances

Policyholders must choose a deductible for their comprehensive coverage. This is the amount they would pay for a covered claim.

Medical payments

Medical coverage helps pay for medical expenses for a covered driver and for passengers in the event of an accident. This type of coverage is also called medical expenses coverage or med pay and it is optional.

Some of the things medical payments coverage may pay for include the following:

• Health insurance deductibles
• Health insurance copays
• Doctor or hospital visits
• Ambulance services
• Emergency services
• Surgeries
• X-rays and other diagnostic testing
• Prosthetics
• Professional nursing services

Gap insurance

Often, drivers owe more on their vehicle loan than the car is worth. This is a problem if a vehicle is totaled after a motor vehicle accident. The insurer would generally pay only up to the depreciated value of the car, which is what the car's market value was at the time of the covered incident. This may not be enough to pay off the remaining auto loan balance in full.

Drivers who have leased their vehicle or who have an auto loan should purchase gap insurance so they do not end up being forced to pay off the remaining balance of a car loan out of pocket when their car is declared a total loss and their insurance cuts them a check for its current value.

Many lenders and leasing companies require gap insurance, but it is an important purchase to protect assets even when not mandated.

Most insurers offer car insurance discounts that can help reduce the cost of auto insurance. Commonly available discounts include:

• Accident-free driver discounts: These are available to drivers who have gone a certain length of time without becoming involved in a collision.
• Discounts for driver monitoring: Motorists who agree to download an app that tracks their driving habits may be able to save.
• Defensive driving discounts: Completing a state-approved defensive driving discount can help motorists save.
• Driver education discounts: Young motorists who complete driver's education can save money.
• Driver behavior discounts: Drivers who have a clean driving history can save money, as can motorists who don't go many miles per year.
• Good student discount: Young motorists who get good grades may be able to save. These discounts usually require at least a B average.
• Distant student discount: This provides savings on a family's insurance policy when teen drivers are away at school.
• Bundled coverage discount: Motorists who buy multiple types of insurance policies, such as auto and homeowners insurance, will usually qualify for discounted premiums.
• Multi-car discounts: This savings is available for people who insure several cars with the same insurance company.
• Continuous coverage: Drivers who maintain their insurance year after year may find they can save on premiums.
• New-car discounts: These are available to motorists with a late model vehicle (usually one that is less than two or three years old).
• Vehicle safety feature discounts: Airbags, anti-lock brakes, anti-theft devices, and other safety features can also result in low premiums.
• Driver affiliation discounts: Savings are available from many insurers for motorists who are in the military, who work for certain employers, or who are members of certain groups.
• Pay-in-full discounts: It's often possible to save on insurance by paying premiums one time per year, rather than taking advantage of the option to pay quarterly or monthly.
• Online-only discounts: Many insurers reduce costs for drivers who purchase their policy online and manage their accounts on the internet.
• Paperless statement discounts: Drivers who sign up for paperless statements may reduce car insurance costs.

The best car insurance companies calculate rates based on the risk of an accident. Factors that insurers consider include:

• Which drivers are on the policy: If a motorist is buying a family policy, insurers will consider the driving record of everyone in the household.
• Driving record: Insurers consider accident history and risk of speeding tickets.
• Number of miles driven: A car that is driven more frequently is more likely to become involved in a crash.
• Type of car: Vehicles more prone to accidents or theft will be more expensive to insure.
• Vehicle safety features: If a car has features that reduce the risk of theft or the chances of a crash or serious injury, this will result in lower premiums.
• Credit score: Drivers who have a stronger credit history will often pay less for insurance.

Motorists must not drive without their state's required minimum insurance. Doing so could lead to criminal penalties as well as devastating financial loss if an accident occurs.

Fortunately, there are coverage options for drivers who can't buy car insurance from traditional insurers. These include:

• State-assigned risk pools: States provide an option of last resort for drivers who can't get conventional insurance coverage. They can join the state's assigned risk pool and will be assigned to an insurance carrier that works with the state. This may also have other names, such as a Joint Underwriting Association or shared market.
• High-risk insurers: High-risk car insurance could be the best option for motorists turned down by conventional companies. These insurers specifically work with drivers who other insurers won't cover. While they typically charge high premiums, they can often provide more coverage than a state's assigned risk pool would.

Car insurance agents can help drivers to enter the assigned risk pool or to find high-risk insurers.

The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.

The base vehicle used for benchmarking purposes is a 2019 Honda Civic averaging 14k miles driven per year.

The base driver persona is a 35 year old single male with a clean driving record that uses their vehicle for personal commuting with coverage limits set to the following: (unless otherwise noted)

• Coverage: $50,000 per person / $100,000 per accident /$25,000 property damage
• Deductible: Comprehensive with $500 deductible / Collision with $500 deductible
• Other: No uninsured or underinsured coverage

Insurance products are then rated on a scale of one to five stars, primarily focusing on:

Pricing

With so many options for insurance across the board these days, it's easiest, and quite effective, to first look at the bottom line. Do single out competitive prices across insurance categories it's important to focus on:

• Deductibles
• Terms
• Coverage
• The fine print

Discounts

Insurance provides coverage for unexpected financial burdens and piece of mind. But it's important to check your policies and see how you can lower your premium. Insurance companies offer discounts for all sorts of things now from safe driving to good grades to automatic bill pay. Pay attention to:

• Discounts offered
• Variety of discounts
• Discount qualifications

Perks/Benefits

The benefits of insurance these days have gone far beyond just what your policy covers. Most companies and policies come with perks -- some of which may be completely unrelated to your insurance policy. Take a look at:

• Non-pricing related perks offered
• Benefits unrelated to your coverage
• Perks that stand out in the industry
• Will you actually use the benefit?

Customer Service/Claims Process

Policy research and coverage options are great, but how is the process when you have to actually use your insurance policy? The best coverage doesn't hold much value if it's a hassle to get paid out. Pay special attention to:

• How hard it is to file a claim
• If your provider has a history of resisting payouts
• The customer satisfaction scores for your provider