Consumer Advocacy
What you need to know
Car Insurance
  • Anyone can compare prices. That's why we've gone deep into financial strength, claims & customer satisfaction too.
  • Shop for new coverage every time you move. Rates vary dramatically by location even in the same state.
  • Ask for uninsured motorist coverage to protect yourself against drivers without enough insurance.
  • Safe drivers can earn discounts thanks to new technologies and smarter apps.
Our Approach

How we analyzed the best Car Insurance Companies

Coverage
Financial Strength
A company that's financially stable will be more likely to pay out your covered claims reliably into the future, adding to your peace of mind.
Supplemental Coverage
Pricing & Discounts
Cheap car insurance doesn't always translate into complete coverage you can count on. Choosing the best car insurance companies that offer deep discounts is a better way to protect you and your vehicle while saving money on premiums.
Claims Satisfaction & Customer Experience
When choosing an insurance provider, do business with a company that will not only pay your claims quickly and in full, but will also be there to offer clear guidance when you need it most.
Automation
Automation makes it easier for consumers to get accurate quotes, apply for insurance, and file claims online. It can also reward policyholders for good driving habits or allow them to pay only for the miles they drive.
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We receive compensation from these partners, which impacts the order they appear on the page. That said, the analyses and opinions on our site are our own and we believe in editorial integrity.

Our Top Picks: Car Insurance Reviews

We've written about car insurance for a few years now, but this time around, our research into the best car insurance coverages and providers took us down a very different road.

The market is changing, and we're finding that more and more companies are adopting new risk management approaches that integrate the latest technological advances to predict and price risk with greater accuracy.

This guide will focus on the essential elements to look for in a good car insurance provider, and other tech-forward considerations you might not have thought about but should be aware of.

Based on our 220+ hours of research, we found our top-rated car insurance companies have five critical factors in common: good financial stability, high claims satisfaction and customer experience ratings, accessible prices and a full range of discounts, and automation features to simplify their processes.

Progressive review

As we were researching Progressive’s car insurance options, we noticed the company offers good discount options for "high-risk drivers,” including savings opportunities for teens and good students, along with small and large accident forgiveness.

BEST CAR INSURANCE FOR BAD DRIVING RECORDS

Progressive is one of the best car insurance companies for those with a bad driving record, consistently offering some of the lowest rates in the industry. This is especially true for drivers who've had a DUI. After one DUI, Progressive customers receive a modest 13% raise in rates based on a countrywide average. This is significantly less than industry averages, with some insurance companies increasing annual premiums by as much as 80% after DUI incidents.

 


 
Screenshot progressive.com, April 2019.

QUOTES IN MINUTES

One detail that stood out to us about Progressive is their fast quote process. When requesting a quote, it only took us three minutes to complete the required data fields and answer questions about ourselves, our driving habits, and our assets (whether or not we own a home). This was much faster than most of the other companies we reviewed; many required more information or contact with an agent to get a quote.

 

Screenshot progressive.com, April 2019.

HELPFUL FEATURES

Progressive offers helpful features like “Coverage Checker” and the “Name Your Price” tool, which help consumers compare coverage options and customize their policies.

The Coverage Checker tool lets you know if you're paying too much or too little for coverage, so you're sure you have the best car insurance for your needs. The Name Your Price tool, on the other hand, matches you with the best coverage options closest to your ideal budget.

Since all of Progressive's policy information is online, they're also able to offer instant coverage. Consumers just have to log in to the company’s website and print their ID cards or download the company’s app.

Apart from standard coverage offered by most insurers, the company also offers gap insurance, rideshare coverage, and a program that charges personalized rates based on actual driving habits: the famous SnapShot by Progressive.

Drivers in most states will receive an automatic discount upon renewal simply for enrolling in the SnapShot program. Progressive claims participants in the program save an average of $156 per year, which makes it a great option for drivers to save money on their car insurance with minimal effort.

To learn more about how Progressive compares with other large providers, check out our full Progressive vs. Farmers car insurance review.

 

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Allstate review

Buying car insurance for the first time can be intimidating, so something we really like about Allstate is its straightforward approach to quotes and coverage.

The company offers a wealth of educational materials and helpful resources on their webpage, including articles like “What You Should Know About Your First Auto Insurance Policy,” which includes a video-guide explaining coverages, a car insurance payment calculator, and a car insurance quiz, among others.

Allstate's quote process is relatively straightforward, but it doesn't always allow you to get a quote online. If you’re totally set on a 100% online, agent-less experience, be aware that—depending on your personal details and coverage needs—Allstate might require you to speak with an agent to obtain a rate quote.

Screenshot allstate.com, July 2019.

On the plus side, the company has agents in all 50 states and works with over 3,500 repair shops through their Good Hands Repair Network. Repairs for covered claims carried out in these facilities have guaranteed workmanship for as long as the policyholder owns the vehicle.

Screenshot allstate.com, July 2019.

BEST CAR INSURANCE FOR COLLEGE STUDENTS

Allstate's Smart Student Discount and Milewise Program offer two strong options for college students to save money on their monthly premiums.

The Smart Student Discount is designed for high school or college students under 25 years of age and offers up to 25% savings on car insurance premiums. In order to qualify, you must meet one of the following requirements:

  • Your grades average a B- or above or you have a GPA of 2.7 or above.
  • You have successfully completed the teenSMART driver education program.
  • You attend school within 100 miles of where your car is garaged.

For college students who don't drive very often or live near campus with a short commute, Allstate's Milewise Program could be the way to go. With this program, you pay a flat fee every month and then pay per mile when you use your car. Aside from college students, this program also works well for stay-at-home parents and people who work from home.

THE DRIVEWISE PROGRAM AND TEEN DRIVERS

Allstate's Drivewise program is another great option for drivers looking to save money. Drivewise is Allstate’s telematics feature. Using the Drivewise app, policyholders have the chance to lower their insurance costs through safe driving habits. The app provides the driver with personalized feedback on things like driving speed and braking (avoiding hard stops).

Allstate claims that participants can save up to 40% on their premiums if they drive safely enough. In addition, the Drivewise app includes Crash Detection Services, a free safety feature which sends you a notification if it senses that you've been in an accident as a passenger or driver. From the notification, you can call 911, start a claim, or connect to Allstate's 24/7 emergency roadside assistance.

Since young motorists have less experience on the road, insurance companies view them as high risk drivers and charge them higher premiums. Telematics programs such as Drivewise offer these customers a way to lower their premiums without compromising coverage.

Screenshot allstate.com, July 2019.

Allstate's mobile app also has additional features, including real-time alerts of unsafe driving behaviors, a parking reminder that shows you where you parked your car and when it’s time to feed the meter, and quick access to roadside assistance.

CLAIMS PROCESS SATISFACTION

Another feature we liked about Allstate is that they offer a Claims Satisfaction Guarantee in most states, meaning that if you’re unhappy with how a claim was handled, Allstate will issue up to a six-month credit on your car insurance premium. 

The company simplifies the claims process for consumers by offering a 24/7 claims center and online policy management tools. Allstate policyholders can conveniently file and track claims online, by phone, through the company's mobile app, or in person with one of their agents.

Screenshot allstate.com, July 2019.

The company simplifies the claims process for consumers by offering a 24/7 claims center and online policy management tools. Allstate policyholders can file and track claims online, by phone, through the company's mobile app, or in person with one of their agents.

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Nationwide review

Nationwide offers all standard coverages as well as other options not all carriers provide, including rental reimbursement, property protection, sound system insurance, roadside assistance, and a specialty policy called Classic Car Insurance for antique automobiles and modern classics. It also features a pay-per-mile option called SmartMiles, which makes it one of the most cost-effective car insurance companies for drivers with low annual mileage such as seniors or those who work from home.

In addition, the company's gap insurance, vanishing deductible, yearly insurance assessments, and accident forgiveness programs combine to make it an attractive option for a large variety of drivers.

BEST CAR INSURANCE FOR SENIORS

Nationwide's SmartMiles pay-per-mile option sets it apart as a great car insurance option for seniors. As most elderly drivers have low annual mileage, this program helps them save money on their car insurance without sacrificing important coverage.

Drivers are assigned a base rate monthly charge (e.g., $60 per month) as well as a variable rate per mile (e.g., $0.07/mile per month). While the base rate remains fixed, the variable rate per mile changes according to how much the customer drives. This means those who drive less will save more money. SmartMiles is available in 45 states and the District of Columbia; this option is not available in Louisiana, Hawaii, North Carolina, New York, or Alaska.

Screenshot nationwide.com, July 2019.

This yearly assessment is meant to help consumers determine whether they fully understand their policy and benefits, if their current coverage protects everything they need covered, and whether or not they're making the most of the discounts and benefits available to them.

FREE YEARLY INSURANCE ASSESSMENTS

Life changes constantly, and as it does, so do your coverage needs. You may have had the perfect coverage a year ago, but that policy might not be ideal for your current situation. For this reason, we find Nationwide’s “On Your Side Review” to be a standout feature. 

On Your Side Review lets customers schedule a free insurance assessment once a year or whenever they have a big life event, such as purchasing a new home, getting married, or having a child. This assessment is meant to help consumers determine whether they fully understand their policy and benefits, if their current coverage protects everything they need covered, and whether or not they're making the most of the discounts and benefits available to them.

VANISHING DEDUCTIBLE FEATURE

Nationwide’s Vanishing Deductible feature compensates safe driving. Depending on your deductible you could end up paying $0/month (vanishing). Each year of safe driving translates to $100 off your deductible, up to $500.

If your deductible was $400, after three years of safe driving with this feature, you’d earn a $300 credit, meaning that if you had an accident, you’d just pay $100 toward your deductible.

If you were in an accident, your deductible wouldn’t go back to $400; it would reset to $100 off. This means that even if you are in an accident, you’re still saving $100 on your deductible.

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State Farm review

State Farm is the largest car insurance company in the US, with nearly 16% of the market share. This company is well known for its service and customer satisfaction ratings, offering competitive rates and an extensive network of agents that can help you find tailored coverage options. Among State Farm's standout features are discounts for safe drivers, discounts for young drivers that complete a safety course and its widely available, comprehensive rideshare insurance.

 

Screenshot statefarm.com, July 2019.

BEST CAR INSURANCE FOR YOUNG DRIVERS

During our research, what really stood out for us about State Farm was their Steer Clear Driver Program, which offers discounts for drivers under 25 years of age. This program is designed to educate young adults about safe driving while helping them save money on car insurance. Parents can also monitor and guide the driver’s progress.

In order to qualify for this discount program, drivers must have a valid driver’s license, no at-fault accidents or moving violations during the past three years, and must successfully complete all the program requirements, which includes course training, driving practice, mentoring, and obtaining a program certification.

In addition to Steer Clear, State Farm has been offering the "Drive Safe & Save" program for drivers over 25 years of age. This program calculates a discount based on your actual driving using a mobile app and a company-provided Bluetooth device. The initial discount for signing up is 10%, but the final percentage can be anywhere between 10% and 30%.

EXCELLENT RIDESHARE INSURANCE

Although several other companies offer rideshare insurance, State Farm stands out from the competition by extending this coverage in most states and offering continuous coverage for drivers who haven't yet picked up a rider but are logged into their rideshare app.

Since this feature works as an extension of the driver's personal auto policy, they're covered even when they're not using the rideshare app.

It’s important to note that all coverages from your personal auto policy are extended except for “liability to others” once you’ve matched with a rider and while transporting them to their destination. That means you wouldn't be covered in the event you harm another person or their property in that interim.

The company's rideshare insurance option is available in most states and the District of Columbia.

CUSTOMER SUPPORT

State Farm lives up to its reputation as the nation's top insurer with a wide range of insurance products, 24-hour customer support, and agents in every state.

Customers can find support through the company’s webpage, by phone or email, or in person at one of their many locations.

State Farm also has a helpful “Pocket Agent” app that lets consumers access their insurance cards and policy information, get quotes, and track claims on their phones. To see how State Farm holds up against its competitors, read our full Liberty Mutual vs. State Farm car insurance review. 

Screenshot statefarm.com, July 2019.

 

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USAA review

USAA, or United Services Automobile Association, is a large financial services company that offers exclusive car insurance to current and former members of the military as well as their spouses and children. USAA is well-known for its affordability, wide range of discounts, and exceptional customer service.


Screenshot usaa.com, July 2019.

BEST CAR INSURANCE FOR MILITARY

It's truly hard to beat USAA when it comes to car insurance for military members and their families. Although other car insurance companies offer discounts for military personnel, USAA typically offers the lowest rates on car insurance for those who are eligible. In addition to standard vehicles, USAA also offers insurance for motorhomes, boats, and motorcycles. It also offers more than just vehicle coverage, giving you the option to purchase renters, homeowners, life, and pet insurance among other types of coverage. Any combination of these can be bundled together for one easy-to-manage policy.

Screenshot usaa.com, July 2019.

WIDE ARRAY OF DISCOUNTS

Aside from many of the standard discounts that other car insurance companies provide (e.g., safe driver, new vehicle, multi-car, etc.), USAA has many unique discounts tailored to the military lifestyle. For instance, they offer a 15% discount for military personnel who store their vehicles on base and a discount of up to 60% off monthly premiums for those who place their vehicles in storage while deployed on active duty. They also provide discounts for low annual mileage and children of military personnel.

 

 

Screenshot usaa.com, July 2019.

AVAILABILITY

As previously mentioned, not everyone qualifies for USAA car insurance. Since it is a membership-based service, you must meet certain eligibility requirements to purchase coverage from USAA. The following groups are eligible for USAA coverage:

  • Active and retired members of the U.S. military services (Army, Navy, National Guard, Air Force, Marines, Coast Guard)
  • Family members, including widows, widowers, current spouses, unremarried former spouses of USAA members who joined USAA prior to or during the marriage, and children of USAA members (including step-children)
  • Honorably-discharged veterans of the U.S. military
  • Those enrolled and active in a U.S. military service academy or ROTC program
  • Officer candidates within 24 months of commissioning
Screenshot usaa.com, July 2019.

However, at ConsumersAdvocate.org we rely on other authoritative sources when looking into financial ratings and claims satisfaction. That being said, we compared these results with J.D. Power’s 2018 U.S. Auto Claims Satisfaction Study and found that USAA also takes either the first or second spot across all categories.


Screenshot jdpower.com, July 2019.

The company got second place in “Overall Satisfaction” as well as every other category except “Repair Process,” for which they ranked better than the number one company.

Finally, USAA provides a helpful online experience. Their webpage includes many educational resources, including an “Auto Learning” section that includes guides like “CAR BUYING 101,” which covers subjects ranging from finding to insuring a car.

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Our Research

More insight into our methodology

Because of the changing landscape in the auto insurance industry, we took a fresh approach in our research on car insurance companies. After 400+ hours of online research using more than 18 vetting criteria, we determined the following factors were the most important when looking for a car insurance company in today’s market:

  • Supplemental Coverages
  • Financial Strength
  • Pricing & Discounts
  • Claims Satisfaction & Customer Experience
  • Automation

We also found that the car insurance companies we vetted all carry the same types of standard coverages, including liability, collision, and comprehensive. So, we chose to highlight the supplemental coverages that help consumers customize their policies.

The three standard coverage types are:

  • Liability: only covers damages or injuries to others or their property in the event of an accident you caused. There are two types: bodily injury protection and property damage. Most states set minimum liability car insurance coverage requirements.
  • Collision: covers the repair or replacement of your vehicle if it is damaged. Lenders require you carry collision and comprehensive insurance but these optional coverages are not mandated by the states. If your car is paid off, collision coverage is optional.
  • Comprehensive: covers theft or any damage to your vehicle that's not a result of a collision, including damage or loss caused by natural disasters, falling objects, vandalism, fire, or a public disturbance or riot.  

Your premiums will vary based on the types of coverage you choose and the deductibles (collision and comprehensive) and maximum coverage limits you set. Costs also vary based by insurer, vehicle type, and personal driver details like your age, gender, credit score, and driving history.

Remember there isn’t one best car insurance company and coverage that works for everyone, and choosing the best insurance company and policy is really based on your needs and lifestyle.

Coverage

Auto insurance is regulated at the state level, including the types of state-mandated coverages and associated minimum limits. Oftentimes, you will see your coverage including your state’s minimum requirements represented in the following format: 100/300/50.

Here is a further breakdown of what that means:

  • 100 = $100,000 per person, bodily injury
  • 300 = $300,000 per accident, bodily injury
  •   50 = $50,000 per accident, property damage

Note: some states also mandate a minimum amount of uninsured/underinsured driver coverage.

The bottom line is your state’s car insurance mandated limits will impact your premiums. For instance, Michigan has some of the highest premiums in the country. Unlike other no-fault states, Michigan’s PIP guarantees unlimited lifetime medical benefits to anyone injured in a vehicle accident. The result? Car insurance premiums in the state are higher.

Get familiar with your state’s insurance requirements here or chat with your insurance company bot or live agent to get more information.

If you’re thinking about saving money by only purchasing your state’s mandated liability limits, we highly recommend you think about this decision carefully. There are other ways you can save on car insurance without taking the risk of being underinsured.

Let’s review the five factors we used to identify the leading car insurance companies in the industry.

Financial Strength

We visited hundreds of auto insurance company websites to find which ones have your back.
How financially solvent a company is (how many assets it has) demonstrates their financial stability. In other words, they have strong financial backing to stay in the game for years to come, which means they can pay your claims today as well as in the future.

This factor is important to understand due to the challenges facing insurance companies today, including rate increases in most states due to distracted drivers, inclement weather, and the fact that there are more people on the road now than ever before. 

We used the rating of three of the most respected and independent rating agencies in the US, including AM Best, Standard & Poor’s, and Moody’s.

We also used NAIC’s 2018 direct premiums written as a guideline to how many claims an insurance company wrote within a year, indicating its financial stability in the market.

Supplemental Coverage

The types of supplemental coverage a company offers can really make it stand out. Because we're each different in how, when, and what we drive, supplemental car insurance coverage allows us to customize our policies to get exactly what we need.

For instance, let’s say you’re a single woman who lives in the city, walks to work and mostly drives a newer car to run errands on the weekends or to get out of the city on Sunday afternoons. You have great credit, no accidents, and a master’s degree. You’ve owned your car for years but still owe a little on your car loan.

Now, let’s say you are a married man who owns two older cars outright. Your wife is a part-time Uber driver, and you have two teenagers who drive both of your cars to school and to see their friends. You live in the suburbs, have good credit, but unfortunately, you have a couple of speeding tickets on your record.

Really different scenarios and ones where the right supplemental coverage can really provide the best protection of car insurance for you and your family.

Let’s take a look at the different types of supplemental coverages. Keep in mind the types of supplemental coverage offered will vary by insurance company and state.

Uninsured/Underinsured Motorist: twenty states and the District of Columbia require you to carry this type of coverage while in other states it's optional. The national average of uninsured/underinsured drivers is 13% and is higher in some states including Florida where it is estimated that more than 27% of drivers are uninsured/underinsured.

Who Needs It: everyone should consider this coverage due to the percentage of uninsured/underinsured drivers out there.

Medical Payments: also referred to as MedPay, this coverage can pay for your and/or your passenger’s medical, surgical, dental, ambulatory, and chiropractic care as well as hospitalization, x-rays, nursing services, prosthetics, and even funeral services, depending on what your insurance company offers under this coverage.

Who Needs It:  if you don't have top-of-the-line health insurance with a low or no deductible that covers auto accidents, you may benefit by adding MedPay to your policy. We recommend this coverage if you spend a lot of time on the road or commuting for work.

Personal injury protection or PIP: may offer the same coverage as MedPay as well as physical, occupational, psychiatric, and rehabilitation therapies, any lost wages, and a small death benefit, depending on what your insurance company offers. PIP is mandated by some states but isn’t as universally available as MedPay.

Who Needs It: if you don’t have great health insurance coverage, PIP can close the gap on your healthcare coverage due to an accident you caused.

Guaranteed Auto Protection (Gap): most auto insurance companies reimburse you for the actual cash value of your vehicle in the event of a total loss. Actual cash value equals the market value minus the depreciation amount. This coverage option allows you to purchase more insurance to cover the gap between the cash value of your car and the balance of your car loan.

Who Needs It: by 2017, more than 108 million out of a total of 212 million licensed drivers in the US had an auto loan - that’s more than half of all licensed drivers. For those of you who owe more on your car loan than what you are covered for under your car insurance, this option will get you covered.

Rental Reimbursement: provides reimbursement for a car rental while your vehicle is being serviced as a result of a covered claim.

Who Needs It: if you are a one-car household, commute to work, live in a rural community, or you are a single mom.

Towing and Roadside Assistance: some companies include this coverage in their basic policies but most offer it as optional coverage. Generally, they partner with a network of tow service providers, and they may arrange the service for you. It’s great coverage in the event of a breakdown late at night or when driving in a less familiar area. It can cover towing, battery, lockout, or flat tire services, and fuel delivery.

Who Needs It: this is a smart option if you are a senior, long-distance commuter, single mom, shift worker, the owner of an older vehicle, or anyone who wants peace of mind.

Collector or Classic Car Owner: often less expensive than traditional car insurance, collector car owners tend to drive their classic cars less and care for them more, this option sets a guaranteed value that is agreed upon between you and your insurance company, and is based on the type of collector car you want to insure. The vehicle must be in good condition. Be prepared to substantiate the vehicle’s value and agree to no driving mileage restrictions in your contract.

Who Needs It: a collector who has a vehicle that's worth more than the actual cash value of the car.

Rideshare Insurance: provides gap coverage between your personal and your rideshare company’s commercial insurance, if you drive for Uber, Lyft, or another rideshare company. It covers the different periods of time before, during, and after ridesharing. Adding this option can increase your premium up to $90/month.

Who Needs It: anyone contracted with a rideshare company who uses their own vehicle to provide the service.

Telematics: through vehicular technologies, insurance companies can now monitor your driving habits via an installed device or your smartphone that tracks how you break, your speed, how you turn, and where you drive.

Who Needs It: teen drivers. In an ongoing national study, researchers are monitoring driver behavior in teens. So far, the results have found an overall 35% reduction in phone distraction, 20% reduction in hard braking and fast driving, all within the first 30 days of the study. This is a great way for good drivers to save money on premiums.

Pay-As-You-Go: also known as “usage-based” insurance, policyholders pay an adjusted monthly rate based on the number of miles driven instead of a flat premium rate. This is done by installing a telematics device in your car, provided by your insurer or pre-installed in newer vehicles, or via a smartphone app that does the same. You can save more than 54% of your annual premium by applying this type of insurance to your policy. This coverage is not available in every state or offered by all insurance companies.

Who Needs It: this option is great for good drivers, low-mileage drivers, seniors, students, urban dwellers, or anyone who drives under 30 miles a day.

 

Pricing & Discounts

We all want the best price for car insurance coverage. In the course of our research, we also found that understanding all the discounts available can help you get the best price on car insurance.

For this reason, we determined that the number and type of discounts available from an insurance company is one of the most important factors to look for when shopping for auto insurance.

Pricing

Because car insurance is regulated at the state level, and because each state sets its own minimum liability requirements for car insurance, pricing can vary greatly between states as well as by insurance providers.

Getting the best rate can be one of the most important factors when choosing an insurance company. We get it because we’re in the same boat: we have auto insurance too. Currently, the average cost of car insurance in the US, based on a 2017 study, is $935.80 per year.

Most insurers still use traditional eligibility criteria to set prices based on risk factors, including your demographics, credit history, vehicle to be insured, and how and where you drive.

Some companies are starting to apply broader eligibility requirements such as accepting lower credit scores, however, most apply the traditional risk factors to set prices.

Pricing is calculated by determining your base rate (based on your demographics and credit score) plus any added surcharges to protect against risk based on your driving history (speeding tickets or other traffic violation or claims), and lastly, insurers apply discounts which mediate risk for them but can also save you money on premiums.

In other words, base rate + surcharges - discounts = premium price.

Discounts

Based on our research, we identified the following auto insurance discounts by category, eligibility, and how much you can typically save per discount:

Discount You Qualify Average Savings

Affiliation
 		 If you have an “affinity” membership through your employer, school, club or other memberships 25%
Anti-Lock Brakes If you own a vehicle anti-lock brakes 10%
Auto-Pay If you sign up for automated payment from your checking account Up to $50/year
Bundled If you have more than one insurance policy with the same company, you can “bundle” the policies for this discount. Can include: life, health, homeowners, renters, and car insurance policies 5 - 10%
Customer Loyalty If you carry a car insurance policy for more than one year, with discount increasing (based on insurance company) for additional years of coverage 15 - 25%
Safe Driver If you have had zero at-fault accidents or other violations in the last 3 to 5 years; discount is dependent on insurance company 20%
Good Student If you are a high school or college student under the age of 25 who has at least a 3.0 (B) GPA 15 - 25%
Hybrid Car If you own or lease a green vehicle 10%
How You Drive If you turn on (or install) telematics in your vehicle to track your driving habits including braking, turning, and speed Up to 52%
Low Income If you meet your state’s requirements based on your income or occupation Varies by state
Military If you are an active military member, veteran, or a family member. Varies depending on whether on base or deployed. 15 - 60% 
Multi-Vehicle If you are a multi-car family and insure your cars under one policy 10 - 25%
Defensive Driving Course
 

If you successfully complete NSC’s Defensive Driving Course, which may be limited to certain demographics including seniors and students (16 – 25 years of age)

 10%
Safety Technology If you own a newer car that has pre-installed safety systems such as cameras or sensors 5 - 20%
On-Demand If you turn on (or install) telematics in your vehicle to monitor for theft, roadside assistance, and diagnostics 5%
Paperless If you view and pay your bills via a mobile app or online 3%
Road Assistance
 		 If you purchased roadside assistance (typically, optional coverage) or you drive a newer car with onboard diagnostics capabilities 5%
Seniors If you are 65 years of age or older, your state mandates a discount for your age group - discounts will vary by state 15 - 35%
Away at School If you are a student who doesn’t drive much and is attending school > 100 miles from your home 5 - 30%
Full Payment If you pay your entire annual premium at the start of your policy 5 - 10%
Low-Mileage If you drive less than 15,000 miles in a year; will vary by insurer 2%

Student drivers: Unfortunately, 16 to 18-year-olds (and up to 21 years of age) pay some of the highest premiums out there. This is due to the predictive risk pricing model used by insurers, which is based on the driving habits of individuals in the age pool. You’ll pay higher premiums even if you’re a safe driver. As you can see there are some great discounts available for student drivers.

Look into pay-as-you-go insurance and telematics coverage to track how well you're driving and save more money while improving your driving habits.

Seniors: As a senior, you can save big if you've maintained a good driving record and have paid your premiums on time. States mandate discounts on car insurance for individuals 65 years of age or older with each state setting its own standards. But there are more ways for you to save with discounts, including being a loyal customer, bundling policies, and having a good driving record.

If you drive less than 15,000 miles per year, we recommend you look into a pay-as-you-go insurance plan. If you’re a good driver, think about adding a telematics plan to your policy. This can help your insurer monitor your driving habits and can substantially decrease your premiums.

Claims Satisfaction & Customer Experience

We identified claims satisfaction as one of the biggest factors to consider when shopping for car insurance. Why?

In 2018, direct auto insurance claims written totaled over $244 billion in the US. That’s a lot of claims. The good news for consumers is that J.D. Power's 2018 Auto Insurance Claims Satisfaction Study  showed a record high of 861 out of 1,000 (study measurement scale) in consumer satisfaction of insurance claims processing, though there is still work to be done in the automation of filing and paying claims.

We used the 2018 JD Power Auto Insurance Claims Satisfaction Study to measure each insurance company’s claims satisfaction rating.

We also looked at the simplification in claims processing by leading insurers that are making it easier for you to file and track a claim using the following convenient methods:

  • Accessibility in the form of 24/7 claims processing
  • Tools like mobile or online apps or over-the-phone claims processing
  • A guaranteed or general time frame for claim processing is provided
  • A streamlined process using the latest technological innovations

Helpful Hint: what has more impact on your premiums? It may not be the type of claim you file but how many claims you file in a year.

Overall Customer Experience

When you need them the most is when you expect the best treatment from your insurer. Great customer service is a lifesaver when we’re talking about car insurance, especially when you file a claim. You want an expert who will guide you through the claims process and get you roadside assistance immediately if you are vehicle is broken down or damaged.

But how did we measure customer experience with car insurance companies?

  1. We looked at a car insurance company’s complaint index compared to the national average, both determined by the NAIC’s  Complaint Ratio Trend Report. This is public data so you can look up any insurance company when you are shopping for insurance.
  2. We reviewed online consumer reviews posted on the Better Business Bureau (BBB) site, looking for patterns in a company’s behavior, such as: did they respond and address each consumer complaint on their site.
  3. We read thousands of reviews, both negative and positive, to determine patterns in a company’s customer experience.

Through our research, we found the insurers with the best customer service ratings offered 24/7 support and multiple ways consumers can reach a company representative or online bot.

These factors are a strong indicator of a company's customer service standards and its overall consideration for their clients.

Automation

With advanced technologies and the use of big data, more car insurance companies are working to simplify and offer a faster and more accurate online quote,  application, and claims processes.

They’re also using telematics to monitor your driving habits, your vehicle’s condition, and its location. Some companies offer on-demand, usage-based or pay-as-you-go coverages, through the use of telematics technology.

We looked at the following areas in automation, something we know that more consumers want from their auto insurance companies:

  1. Accurate and fast online quotes based on automated predictive analysis and big data
  2. A fast and automated online application process using a broader set of eligibility requirements in combination with big data
  3. Mobile apps and smartphones for account management and claims processing
  4. Faster or automated claims processing with estimated times for claims payments
  5. Telematics to track driver behavior, miles driven, a vehicle’s condition or location in case of theft of roadside assistance, among others

Some consumers are not comfortable with going with telematics due to privacy issues including data security breaches. It is a real concern. If you are considering a telematics-based program but are not fully comfortable with your insurer collecting data on how, when, and where you drive, we encourage you to ask an insurance company on how they will protect your privacy rights.

Most companies we chose in our top 10  offer some or many of the automation features described above.

Helpful information about Car Insurance

The insurance industry has seen big changes since the financial crisis of 2008. With the introduction of insurtech companies that integrate insurance and technology, the traditional car insurance business model is quickly adapting to keep pace with consumer behavior and demands.

In fact, Accenture's 2017 Global Distribution & Marketing Study reveals 51% of the 33,000 surveyed policyholders purchased insurance online and 42% would be willing to take computer-generated advice to purchase insurance.

And that's exactly what both traditional and insurtech companies are now aiming to deliver, a better, more simplified customer experience that integrates the latest technological advances. To this end, most insurers in the current market are adopting telematics, also known as black box insurance.

Telematics is an insurance program that tracks a user's driving behavior through either a mobile app (smartphone technology) or a black box installed in the vehicle.

This technology is the integration of telecommunications and informatics, allowing companies to reward safe driving and reduce recklessness on the road, track mileage for usage-based car insurance, locate stolen vehicles, and reach policyholders in need of roadside assistance.

This is very different from the risk management approach traditionally used by insurers. Most insurance companies classify people into different risk classes according to their likelihood of being affected by "adverse circumstances" like a collision or vehicle theft.

Insurers then use prediction models and “imperfect information” from statistical and historical data to sort people with similar characteristics into different risk classes and charge them accordingly. Each insurance company has its particular actuarial formulas to assess risk.

Generally speaking, most insurers perceive certain drivers as posing a higher risk for collisions or traffic violations. Young drivers, for example, will likely be placed in a higher-risk insurance class than drivers with more experience on the road.

The problem with this approach is that some individuals, like young drivers, will pay more for insurance because they've been classified into a particular risk category, regardless of their actual driving habits.

Insurtech companies are doing things a little differently, though. For starters, they're using predictive analytics and data from mobile apps and other devices to determine and price risk with greater accuracy. They've also placed more emphasis on their online customer experience and simplified the quote, application, and claims processes.

More accurate quotes based on real data along with simplified or automated processes is great news for consumers, but the industry still has big challenges to address, including:

  • Safeguarding consumer privacy in the world of big data and security breaches
  • Managing more claims due to inclement weather like hurricanes, flooding, wildfires, etc.
  • Dealing with more distracted drivers and their effect on policyholder rates and coverages

These are ongoing concerns we paid close attention to throughout our research into the industry.

We've also concluded that, in combination with more traditional factors, automation as an umbrella category can be a great way to determine whether insurers use fair pricing models that benefit consumers and offer convenience through streamlined processes.

WHAT IS CAR INSURANCE?

Car insurance is an agreement between an insurer and a policyholder. You, as the policyholder, pay a premium to the insurer in exchange for protection from financial losses in case of accidents, theft, or other incidents beyond your control. The insurer covers the cost of vehicle repairs, medical expenses, and damages or injuries you may cause to another driver. Car insurance may also provide additional benefits, such as roadside assistance, rental car coverage, and more.

HOW DOES CAR INSURANCE WORK?

When a policyholder purchases car insurance, they agree to pay the insurer a premium for a specific amount of coverage. The insurer will then reimburse the policyholder for any losses or expenses they incur in the event of an accident or other incident up to the amount of the agreed upon coverage.

Policyholders provide data to insurance companies, such as their age, driving record, location, vehicle type, and other factors. Insurers then use this data to run sophisticated predictive models in order to assess the policyholder's risk and determine the amount of the premium. 

WHAT DOES CAR INSURANCE COVER?

Car insurance typically covers damage to the vehicle, liability protection for any injuries or property damage, and financial protection in the event of an accident or theft. It may also include additional benefits, like rental car coverage and roadside assistance. Finally, if an accident is caused by an uninsured driver, car insurance may cover injuries and medical bills incurred by the policyholder and their passengers.

HOW TO GET INSURANCE ON A CAR

  • To apply for car insurance, you'll need to gather some basic information including:
  • Your name and date of birth
  • Driver’s license number
  • Vehicle make and model
  • Vehicle mileage and vehicle identification number
  • Prior insurance coverage information
  • Current use for the vehicle (i.e. business, pleasure)

Once you have this information, you'll need to decide what type of insurance coverage you want (e.g., liability, collision, comprehensive). You can then compare quotes and coverage levels from different insurers to find the best policy for your needs. Be sure to research discounts and rewards programs to help save money on your car insurance.

HOW TO LOWER CAR INSURANCE PREMIUMS

  • When shopping for car insurance, there are several ways to lower your premium, such as:
  • Increasing the general deductible
  • Bundling insurance policies
  • Opting for higher deductibles just on comprehensive and collision coverage
  • Improving your credit score
  • Taking a defensive driving course
  • Maintaining a clean driving record
  • Choosing a car with safety features
  • Considering pay-per-mile auto insurance plans
  • Working with an independent insurance agent

Factors that Affect Car Insurance Premiums

We've already gone over the traditional risk management approach vs. technology-based pricing. However, the industry has only recently started expanding the applications of "big data" to the insurance market.

For the most part, the biggest players in the insurance industry still price premiums based on risk categories. Depending on the company and insurance program you choose, your premiums might be based on your risk group, which in turn will be influenced by a number of personal and external factors.

According to the National Association of Insurance Commissioners (NAIC), there's a long list of factors that influence your auto insurance rate on a personal level as well as on a state, city or county level.

You see, your premiums will vary depending on your details as a driver as well as other external conditions like traffic, accident, and vehicle theft rates in your area. Let’s go over these in detail.

Personal Factors

On a personal level, auto insurance rates are influenced by things like your age, gender, marital status, driving experience (years driving) and record, claims history, credit history, and previous coverage.

Some of these things may make more sense than others. Your years of driving experience and driving record, for example, make a direct statement about your habits as a motorist and could give your insurer a good idea of how much risk they would take on by insuring you.

Other factors, such as your marital status, are much less intuitive but can also say a lot about your driving habits. Married drivers are believed to be more financially stable and are more likely to purchase bundled policies or multiple policies, which merit discounts.

The vehicle you drive also affects your auto insurance premiums. Your vehicle make, model, and year influence how safe it is to drive and the likelihood of catastrophic damage to it due to a collision.

External Factors

External factors such as your area and state of residence will also affect what you pay for car insurance. Each state has different auto insurance requirements, and densely populated areas such as city centers may have higher vehicle theft rates, which can significantly increase premiums.

When there are more drivers on the road the likelihood of a collision or accident also increases, and higher risks always translate into higher rates. This also holds true for those who live in areas prone to floods, wildfires, and other natural disasters.

A POINT ABOUT CAR INSURANCE MARKETPLACES

In the course of our research, we also reviewed car insurance marketplaces that help consumers find the best coverages and policies based on demographics and location.

These companies don't actually offer car insurance themselves but instead offer the service of identifying or comparing the best auto insurance company for you. Additionally, some of them offer extensive educational resources on their websites.

What’s Trending Now?

Beyond automation and simplification, other significant trends we found include:

  • More People on the Road: the economy is better so that translates to more people driving on our roads and highways, including more distracted or under-the-influence drivers.
  • Where Are the Truck Drivers: by the end of the year, it is estimated there will be a 50,000 truck driver shortage, which means more inexperienced truck drivers will be on the roads.
  • Bad Weather Isn’t Good: some states that are located (partially or in full) in natural- disaster-prone areas have seen an increase of 80% in premiums over the last couple of years.
  • Distracted Driving: distracted driving has become one of the primary reasons for accidents, in general, and the cause of death among teens in car accidents. In 2017 alone, 3,166 people were killed by distracted drivers.  
  • Marijuana & Driving: studies from multiple states including Washington, Colorado, and Oregon found that accident frequency did increase after marijuana was legalized in their respective states.
  • Repair Costs Are Going Up: technological advances in vehicle safety systems, such as anti-theft systems, cameras and sensors, have increased repair costs due to special training required by mechanics and the time it takes to repair the problem.

What’s Coming Down the Road?

Autonomous driving is not a thing of the future, it’s already here. For instance, newer luxury vehicles already have the capabilities of parking themselves, staying in lanes and maintaining a safe distance from other vehicles. Therefore, the car industry is somewhere between Levels 1 and 2, per the United States National Highway Traffic Safety Administration.

Tesla is currently testing level 3 vehicles, and other companies such as Google and Apple are testing Level 4 cars. Industry experts are not in agreement with when fully autonomous vehicles will become available with estimates ranging from two years to decades.

So how does car insurance work with self-driving vehicles? Product details are still being evaluated but telematics is already on the scene and changing how car insurance works by tracking drivers’ behavior and miles driven.

FAQs about Car Insurance

How much is car insurance a month?

According to the last auto insurance database report from the National Association of Insurance Commissioners (NAIC), the national combined average premium per insured vehicle was $1,176, which equates to $98 per month. Generally speaking, the amount of car insurance you pay will depend on your demographic profile, location, vehicle type, driving record and coverage levels. On the lower end, you may pay as little as $25 per month for basic liability coverage while on the higher end you may pay up to $200 or more for comprehensive coverage.

 

What is liability car insurance?

Liability car insurance is the most basic form of car insurance offered by most insurers. It covers claims related to your legal liability arising from damages or injuries caused to another person or property in an auto accident for which you are at fault. It typically includes bodily injury liability and property damage liability coverage. Liability car insurance does not cover your own injuries or property damage.

 

What is comprehensive car insurance?

Comprehensive car insurance is a type of coverage that provides financial protection against damages caused by covered perils such as theft, fire, vandalism, flood, and hail. It is meant to provide coverage for damage to a vehicle caused by something other than a collision. It does not cover damages caused in an auto accident, which is typically covered under collision coverage or liability insurance.

 

Is car insurance required?

Drivers are required to carry auto insurance in most U.S. states. There are some exceptions, however, like Virginia and New Hampshire. In Virginia, motorists can pay the state $500 and waive auto insurance, yet they'll be liable to pay for damages if they're at fault in a collision. In New Hampshire drivers are similarly responsible for damages due to an accident or collision up to 50k for liability and 25k for property damage. Other states (AL, AZ, CA, CO, DE, ID, LA, ME, MD, MA, MS, MO, MT, NE) allow drivers to post a bond or deposit instead of purchasing car insurance, but the same rule still applies, if someone is liable for a collision they'll have to cover those expenses out of pocket.

How much car insurance do I need?

The amount of car insurance you need depends on several factors, including your state’s minimum legal requirements, the type of vehicle you drive, and your individual financial situation. Your individual risk profile will also play a role in determining how much coverage you need. Generally, it's recommended to carry at least bodily injury and property damage liability insurance as well as uninsured motorist coverage. Beyond that, you may want to consider adding comprehensive and collision coverage, depending on the value of your vehicle. Finally, make sure you understand the coverage limits for each type of insurance so that you can adjust your policy accordingly.

 

What are my state’s minimum insurance requirements?

Car insurance is regulated at the state level, with most states setting minimum liability coverage limits for bodily injury, property damage, and some also requiring uninsured/underinsured driver coverage.

Does my coverage cover other drivers?

This depends on the type of coverage you get and your insurance company, which may require you to list additional drivers on your policy.

What does no-fault insurance mean?

Mandatory in 18 states, no-fault laws require you to file a claim with your insurance company regardless of who is at fault. Some states require medical expenses, as a result of an accident, be covered by MedPay and not by your no-fault insurance.

Does filing a claim increase car insurance rates?

If you are at fault in an accident then you can anticipate your rates going up. If you are not at fault then your rates may or may not go up depending on your insurance company and policy. If you file multiple claims in one year regardless if you are at fault, you can expect your rates to increase. Again, this may differ by insurance company.

 

What is pay-as-you-go-insurance?

With this type of insurance, you are charged for the number of miles you drive in a month. This may also be referred to as usage-based or blackbox insurance.

What car insurance do I need for Uber or Lyfts?

Most states require drivers for ridesharing companies to carry a certain level of insurance coverage. Beyond that, you may also opt to purchase rideshare insurance if your auto insurance provider offers it. This type of insurance provides protection for the gap periods before, during, and after you have a rider.

 

Do I Need Insurance if I don’t Own a Car?

If you don't have a car, you do not need car insurance; however, you can purchase it. This type of insurance is called non-owner car insurance and is only offered by a handful of reputable companies, including Geico, State Farm, Nationwide, The General, and Titan. It is much cheaper than traditional insurance and is great if you are a caretaker and drive your client’s car often, if you rent cars a lot, or if you have a DUI or need SR-22 car insurance if you’re eligible.

 

Popular Comparisons

Our Car Insurance Review Summed Up

Company NameThe Best for
State Farm Car InsuranceYoung Drivers
Progressive Car InsuranceBad Driving Record
Nationwide Auto InsuranceSeniors
Allstate Auto InsuranceCollege Students
USAA Auto InsuranceMilitary
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