Insurance » Auto Insurance » The Best Car Insurance Companies of 2022
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The Best Car Insurance Companies of 2022

Shopping around for car insurance can help you save hundreds of dollars a year. Here are our car insurance picks of 2022 - compare and choose

We may receive compensation from companies that appear on this page. This may impact how and where products appear on a page (including, for example, the order in which they appear). It doesn’t affect our editors’ opinions. our opinions are our own.

When it comes to insuring your car you want to know that you have the best coverage possible. You want to feel confident that you will get the best service from your company in case of an accident.

The problem is, how do you filter through all the options of companies to find the perfect one for you. Every company has their own promises when it comes to saving you money and offering great service. Which one is the most transparent in their ads and not just adding fluff?

This is why we are here, to help you filter through the pile of companies to avoid to find the companies that are actually telling the truth in their ads.

We have compiled information to find which companies have the best customer reviews and offer the best rates for their quality service. Now all you have to do is contact your chosen company and sign the papers.

Here are The Smart Investor Select’s picks for the top car insurance companies:

Progressive

Progressive_logo
Progressive_logo
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Progressive

NAIC’s Index

The Complaint Index Ratio Table shows consumer complaints filed with the Department of Insurance. Above average rate means a less complaints than the median while below Average means higher complaints compared to other insurers.

The BBB rating system relies on an A+ through F letter-grade scale. The grades represent BBB's degree of confidence that the business is operating in a trustworthy manner and will make a good faith effort to resolve any customer concerns filed with the BBB.

Average

BBB

A+

JD Power

J.D. Power rankings are your guide to finding which products or services ranked highest in J.D. Power Consumer Studies. All rankings are based on the opinions of a sample of consumers from a variety of industries who have used or owned the product or service being rated

The average rating of the insurer mobile app (iOS/Android) 

Average

App Rating

3.8
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On Progressive Secure Website

Great discounts are one of the things that made Progressive so popular among Americans that the company even encourages you to compare its rates with other insurance providers right on its website with a price comparison tool.

You will find the company provides standard car coverage options other insurers offer (like liability, personal injury protection, medical payments, etc.) and perks (like accident forgiveness, deductible reduction, etc.) when Progressive covers you. Of course, Progressive offers other insurance products like home, life, and renters through third party companies.   

  • Safe/Good Driving
  • Telematics
  • Multiple policies
  • Good Student
  • Distant Student/Student Away At School
  • Pay In Full
  • Accident Forgiveness
  • Bundling
  • Homeowners
  • Automatic Payment
  • Paperless/Online Billing
  • How Far Back in Your Driving Record Does Progressive Look?

Progressive will typically look back on your driving record for approximately three years. This check involves verifying if you have had any speeding tickets or other types of traffic violations.

This means that if you had a ticket four or five years ago, it should not impact your Progressive quote.

  • Does Progressive Drop You After an Accident?

No, in fact, Progressive includes accident forgiveness automatically in auto policies for certain accidents across most states. There are two types of accident forgiveness and your eligibility will be determined by how long you have been a customer.

If you’ve been a Progressive customer for five or more years and accident free for three or more, even if you have a large accident claim, you won’t get a rate increase.

  • Does my Progressive Insurance Go Up if Someone Hits Me?

If someone hits you, your Progressive rates should not go up. The insurer has accident forgiveness and if the claim is for less than $500, even new customers can benefit.

However, if you’ve been a Progressive customer for five years or more and have three years of accident free history, even if you have a large claim, Progressive will not raise your auto rate.

  • How Does Progressive Handle Hit and Run Claims?

If you suffer a hit and run it can be very frustrating, but if you have collision or UMPD coverage, Progressive will deal with the vehicle damage. If your car needs to be replaced or repaired, you’ll just need to pay your deductible.

However, UMPD or Uninsured motorist property damage cannot be used in a small number of states.

 

Allstate

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Allstate logo
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Allstate

NAIC’s Index

The Complaint Index Ratio Table shows consumer complaints filed with the Department of Insurance. Above average rate means a less complaints than the median while below Average means higher complaints compared to other insurers.

The BBB rating system relies on an A+ through F letter-grade scale. The grades represent BBB's degree of confidence that the business is operating in a trustworthy manner and will make a good faith effort to resolve any customer concerns filed with the BBB.

Average

BBB

A+

JD Power

J.D. Power rankings are your guide to finding which products or services ranked highest in J.D. Power Consumer Studies. All rankings are based on the opinions of a sample of consumers from a variety of industries who have used or owned the product or service being rated

The average rating of the insurer mobile app (iOS/Android) 

Above Average

App Rating

4
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On Allstate Secure Website

Allstate's customer convenience drive, discounts, and a wide range of coverages are probably responsible for its popularity among Americans. Allstate is also famous for its personalized support, and it even offers a customer satisfaction guarantee in terms of its claims process.

You should note, however, that the rates offered by Allstate are somewhat more expensive than the provisions of other top insurers. As long as you meet the requirements to partake of the discounts offered by the company, you will enjoy a more balanced rate with Allstate.If you're a driver with a clean record, Allstate will treat you with fairly decent rates

  • Defensive Driving
  • Safe/Good Driving
  • Telematics
  • Multiple policies
  • Anti-Lock Brakes
  • Anti-Theft device/Alarm system
  • Good Student
  • Distant Student/Student Away At School
  • Air Bag
  • Pay In Full
  • Driver's Education/Training Course
  • Accident Forgiveness
  • Automatic Payment
  • Paperless/Online Billing
  • Green/Hybrid/Electrical Vehicles
  • Senior Adult
  • How Does Allstate’s Rideshare Insurance Work?

Allstate allows its auto insurance customers to add rideshare insurance to their existing policy. This is designed to fill the coverage gaps you may have in your personal policy and the coverage from your transportation network company.

Whether you are logged in waiting for an assignment or on your way to collect your passenger, the All State Ride for Hire coverage can provide protection.

  • How long does it take to get a settlement check from Allstate?

Allstate has an average consumer rating for how it deals with claims. This is not unusual as many people find dealing with insurance claims to be time consuming and frustrating. Although Allstate claims to offer a prompt and professional claims service, this does not really translate into speedy claims resolution.

The length of time to complete a claim will depend on the complexity of the individual case. However, in some cases, the adjuster may be able to provide you with an estimate at the inspection. Once the estimate is approved, Allstate will mail you a check.

  • Does Allstate Cover Car Scratches?

This depends on how the scratches occurred. If they are a result of a collision or vandalism, and you have the appropriate coverage on your policy, the repair of the scratches can be included in your claim.

However, if they are due to wear and tear, it is unlikely that Allstate will allow paintwork repair to be included.

  • Does Allstate Cover Items Stolen From the Car?

Allstate does offer comprehensive insurance that covers your vehicle if it is stolen, damage resulting from a break in or theft or even replacing stolen car parts.

Unfortunately, this insurance will not cover the theft of personal belongings from your vehicle. If you want to claim for your phone, laptop or other personal items, you will need to check to see if they are covered under your homeowner’s or renter’s policy.

 

Erie Insurance

Erie insurance
Erie insurance
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Erie Insurance

NAIC’s Index

The Complaint Index Ratio Table shows consumer complaints filed with the Department of Insurance. Above average rate means a less complaints than the median while below Average means higher complaints compared to other insurers.

The BBB rating system relies on an A+ through F letter-grade scale. The grades represent BBB's degree of confidence that the business is operating in a trustworthy manner and will make a good faith effort to resolve any customer concerns filed with the BBB.

Above Average

BBB

A+

JD Power

J.D. Power rankings are your guide to finding which products or services ranked highest in J.D. Power Consumer Studies. All rankings are based on the opinions of a sample of consumers from a variety of industries who have used or owned the product or service being rated

The average rating of the insurer mobile app (iOS/Android) 

Above Average

App Rating

3
Get My Offer
On Erie Insurance Secure Website

Erie insurance offers low and discounted prices as well as low premiums. The company provides discounts for seniors, youngers, and safe drivers to keep prices affordable.  It has all the expected auto insurance standard plans and extra coverage loaded with various benefits specific to each state.

The company has a series of unique extras and discounts which are largely unavailable in other insurance operations.

  • Defensive Driving
  • Safe/Good Driving
  • Multiple policies
  • Anti-Lock Brakes
  • Anti-Theft device/Alarm system
  • Distant Student/Student Away At School
  • Air Bag
  • Pay In Full
  • Driver's Education/Training Course
  • Multiple Cars
  • Continuous Coverage/Loyalty
  • Senior Adult
  • Annual Mileage
  • How Does Erie’s Collision Insurance Work?

Erie’s collision insurance can be used if your car collides with an object, another car or even if it flips over. This is often a requirement if you have a lease car or still owe on your car finance.

However, even if you own your vehicle outright, it can be a good way to financially protect yourself in the event of an accident.

  • How Far Back in Your Driving Record Does Erie Look?

Typically, Erie checks back on your driving record for three to five years. If you’ve had no accidents, claims, or traffic violations during this time, you’ll be able to access the best rates for your car insurance coverage.

However, even if you’ve had a speeding ticket or claim for an accident in the last five years, you may still be able to get a competitive quote from Erie.

  • Does Erie Raise Rates After the First 6 Months?

When you renew your policy after the first six months, the overall market costs may have increased, so Erie may raise your rates even if your driving record remains the same and you are not a higher risk.

However, Erie does provide the option to lock in your rates, so they will remain the same unless policy details, such as your address, the drivers or the vehicle itself change.

  • Does Erie Offer a Telematics Plan? How Does It Work?

Erie has two telematics plans, one is solely for business customers, but YourTurn is designed for its personal customers. This is an app designed to help you improve your driving safety.

The app measures criteria such as hard braking, speeding and your phone usage to help you become more aware of behaviors and where there is room for improvement. Not only will this help you to improve your safety, but you can earn rewards based on your scores. For example, you can earn up to $10 every two weeks that you can save or use for little treats.

Nationwide

nationwide-logo
nationwide-logo
Get My Offer
On Nationwide Secure Website

Nationwide

NAIC’s Index

The Complaint Index Ratio Table shows consumer complaints filed with the Department of Insurance. Above average rate means a less complaints than the median while below Average means higher complaints compared to other insurers.

The BBB rating system relies on an A+ through F letter-grade scale. The grades represent BBB's degree of confidence that the business is operating in a trustworthy manner and will make a good faith effort to resolve any customer concerns filed with the BBB.

Above Average

BBB

A+

JD Power

J.D. Power rankings are your guide to finding which products or services ranked highest in J.D. Power Consumer Studies. All rankings are based on the opinions of a sample of consumers from a variety of industries who have used or owned the product or service being rated

The average rating of the insurer mobile app (iOS/Android) 

Below Average

App Rating

4.7
Get My Offer
On Nationwide Secure Website

You can take advantage of quite a lot of bundling options with Nationwide that you won’t easily find with other insurance firms. Nationwide is great for you if you have a spotless driving record as you will be treated to some of the cheapest rates available.

However, if your driving history has some blemish, you might want to look elsewhere for coverage. Seniors will find this company more appealing than youngers as rates tend to get cheaper the older you get.

  • Defensive Driving
  • Safe/Good Driving
  • Multiple policies
  • Anti-Theft device/Alarm system
  • Good Student
  • Accident Forgiveness
  • Affinity Organization
  • Paperless/Online Billing
  • Accident-Free
  • Multiple Cars
  • Continuous Coverage/Loyalty
  • How Does Nationwide’s Rideshare Insurance Work?

Unfortunately, Nationwide does not offer any form of rideshare insurance, so you will need to carefully check your personal auto policy and the coverage offered by your transportation network company to ensure that you are fully protected when you’re working.

  • How Does Nationwide’s Comprehensive Insurance Work?

Nationwide refers to its comprehensive insurance as “other than collision” coverage. This name more easily explains how this insurance works.

Essentially, it can help to pay for vehicle damage that is not caused by a collision. Nationwide’s comprehensive insurance covers theft, vandalism, animal involved accidents, fire, explosions and civil commotions, hail and weather damage, and certain falling objects such as branches.

  • Does Nationwide Cover Car Scratches?

This will depend on the type of coverage you hold with Nationwide and the nature of the scratches. If you ran a shopping cart into your rear bumper, you cannot expect those scratches to be covered if you’ve had a front end collision.

However, if the scratches were related to a collision or a result of vandalism, if you have the appropriate coverage on your policy, Nationwide will include repairs in your claim.

  • What is Nationwide’s Total Loss Percentage?

Nationwide relies on the various state guidelines for determining a total loss. This varies from state to state, with 70% being the lowest percentage, but some states only classify a vehicle a total loss if the damage is 100% or more of the value of the vehicle.

Travelers

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travelers-vector-logo
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On Travelers Secure Website

Travelers

NAIC’s Index

The Complaint Index Ratio Table shows consumer complaints filed with the Department of Insurance. Above average rate means a less complaints than the median while below Average means higher complaints compared to other insurers.

The BBB rating system relies on an A+ through F letter-grade scale. The grades represent BBB's degree of confidence that the business is operating in a trustworthy manner and will make a good faith effort to resolve any customer concerns filed with the BBB.

Average

BBB

A

JD Power

J.D. Power rankings are your guide to finding which products or services ranked highest in J.D. Power Consumer Studies. All rankings are based on the opinions of a sample of consumers from a variety of industries who have used or owned the product or service being rated

The average rating of the insurer mobile app (iOS/Android) 

Average

App Rating

4.1
Get My Offer
On Travelers Secure Website

Travelers is another option for basic car insurance coverage, but you can also add some nice optional extras such as rental car coverage without breaking the bank.  Travelers has loan/lease gap insurance, but you must buy the car from a new car dealer and be the original owner of the vehicle to be eligible for this coverage.

This is a 90 day telematics tracking program that uses its smartphone app to capture your driving data. This information is used to calculate a score for your driving safety. You can earn a discount on a new policy just by enrolling in the program, but your score could also allow you to access a better rate on your new policy.

  • Safe/Good Driving
  • Multiple policies
  • Good Student
  • Distant Student/Student Away At School
  • New Vehicle
  • Pay In Full
  • Driver's Education/Training Course
  • Bundling
  • Affinity Organization
  • Multiple Cars
  • Homeowners
  • Green/Hybrid/Electrical Vehicles
  • Continuous Coverage/Loyalty
  • Annual Mileage
  • Does Travelers Drop You After an Accident?

In most cases, Travelers will not drop you after an accident. However, if the latest claim marks a pattern of high risk behavior, you may find yourself without coverage.

After your claim, Travelers will reassess your risk profile to determine if you still qualify for its insurance. So, if you’ve had multiple claims or drugs or alcohol were involved in your accident, you are likely to be dropped

  • How Far Back in Your Driving Record Does Travelers Look?

Typically, Travelers will only look back on your driving record for the previous three years.

However, to qualify for the Safe Driver discount, Travelers will look back for any accidents, major claims or violations in your household for up to five years. So, it is a good idea to be prepared for Travelers to check up to five years.

  • How Does Travelers Handle Hit and Run Claims?

This will depend on your level of coverage. If you have collision coverage, you may be able to use this to file a claim for your hit and run incident.

The other insurance that can help is uninsured motorist coverage. This type of insurance can cover injuries to you and your passengers or damage to your property caused by the other driver.

  • Does Travelers Offer a Telematics Plan? How Does it Work?

Travelers does prioritize safe driving and in select states you can participate in its IntelliDrive program.

This is a 90 day telematics tracking program that uses its smartphone app to capture your driving data. This information is used to calculate a score for your driving safety. You can earn a discount on a new policy just by enrolling in the program, but your score could also allow you to access a better rate on your new policy.

However, the reverse can also apply. If you’re found to have riskier driving habits, in most states you could pay a higher premium.

How to Get the Best Car Insurance

Why It's Difficult to Compare Auto Insurance?

Car insurance rates vary across insurance companies due to the different factors and statistical information they use when calculating premiums. Each insurance company has a unique formula that it uses to assess the customer's level of risk, the likelihood of getting an accident, and how much they can afford.

Some insurers attach higher weighting to certain factors, and this means that one driver may get different rates for the same coverage from two different insurers. Some of the factors that determine auto insurance rates include driving record, the model of your car, claims history, credit-based insurance score, age, and gender.

Also, insurance companies use different statistics to determine their base rates, and depending on the customer, the rate can vary by a small or large margin. Insurers collect data about millions of drivers and uses statistical information to identify characteristics of drivers who are more likely to cause accidents and make claims.

Age is one of the most significant factors in the cost of auto insurance. As drivers gain experience, insurance rates typically drop, as older drivers are less likely to be involved in an accident or commit a driving violation.

This chart with data from The Zebra shows the average car insurance rates by age group. It highlights that 16 to 19 year olds can expect to pay more than double their 20 to 29 counterparts. It also shows that rates decrease until the 60+ age groups. This is typically because older drivers are more likely to have slower reactions that could lead to an accident and may suffer more serious injuries in a mild to serious accident that is reflected in the insurance rates.

Average 6 Month Car Insurance Rates by Age Group

They group customers into categories depending on the age, occupation, experience, etc. If an insurer groups you in a high-risk customers' category, you will likely pay more for the coverage than customers in low-risk categories.

How Do Companies Determine Your Rate?

Insurance companies use different parameters to determine the insurance rates to charge their customers.

Knowing the factors that car insurers use to determine your rates can help you get the best rates.

Here are key factors that determine your premiums:

1. Location

Insurance rates vary depending on your place of residence. Some locations have greater chances of vandalism and accidents than others.

For example, urban drivers are charged higher insurance rates due to their higher chances of getting involved in accidents than drivers in small towns with fewer cars on the road.

2. Demographic

Your age, gender, and marital status can affect the insurance rate you get. Mature drivers are considered more experienced and less likely to cause accidents than teenage drivers and hence get lower rates.

Single people and male drivers are also considered to be at a higher risk of accidents and may get higher insurance quotes.

3. Vehicle

Luxury cars attract higher premiums due to the high cost of repair or part replacement. Also, cars that have a high risk of theft attract higher premiums to compensate for their higher risk.

If your car has safety features such as immobilizers, trackers and automatic braking systems, you may qualify for auto insurance discounts that lower your auto rates.

4. Driving record

A record of reckless driving, DUI, speeding, accidents, road rage, and other unsafe driving habits have a big impact on the insurance rates you get. A good driving record can help you get favorable auto insurance rates and discounts.

5. Insurance coverage

Different auto insurance policies carry different rates. Also, some states have mandatory auto insurance requirements that may increase your insurance rates.

Examples of policies that may increase your rates include collision coverage, comprehensive policy, and personal injury protection.

6. Credit score

Insurers may use a credit-based insurance score to assess your likelihood of filing a claim, and the estimated value of the claim. A high credit score may help you get a lower insurance quote.

Your credit score can play a crucial role in the cost of your auto insurance. This chart created using data from The Zebra highlights the dramatic difference in the average cost of auto insurance between good and bad credit.

Whether you are looking for minimum or full coverage, the chart shows that you can expect to pay almost double the rate if you have bad credit, compared to good credit.

Average Auto Insurance Rates For Good and Bad Credit

How Do I Find The Best Insurance Quote?

Getting auto insurance can protect you from unexpected injuries, financial loss, or property damage due to traffic accident, theft or other insurable events. Here is how to get the best insurance quote:

If you want to get the best rates for your car, take time to shop around and compare rates from multiple auto insurance companies.

Use comparison websites to find car insurance companies that meet your policy preferences.

Raising your deductible can lower your auto premiums, and help you qualify for better rates. Paying a $1000 deductible reduces the monthly premiums, while a $500 deductible requires slightly higher premiums.

Each state has its minimum coverage requirements for liability insurance. However, you can choose to get more coverage above the state minimum requirement at a cost and qualify for a better insurance quote.

There are various factors that come into play when determining the premiums you pay. Factors such as driving habits, location, car model, age, and gender impact the auto insurance rate you get.

Knowing the factors that lenders use to determine your rate can help you negotiate the best rate for your car.

Car insurance companies offer car discounts to military personnel, drivers with a clean driving record, students with good academic records, etc.

If you fall in the category of customers who qualify for auto insurance discounts, you can get a discount to lower your monthly premiums.

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Optional Car Insurance Coverage

Apart from the mandatory auto insurance policies, there are other optional car insurance policies that car owners can use to protect their assets at additional cost.

Some of the optional car insurance coverage options include:

  • Uninsured/Underinsured Motorist Coverage – This form of auto insurance coverage covers accidents involving drivers with insufficient coverage, or those with no auto insurance coverage.

The uninsured/underinsured motorist policy covers your medical bills and/or repairs to your vehicle.

  • Collision Coverage – This coverage pays the cost of repair or replacement of parts if your car is damaged due to collision with other cars or objects such as trees, potholes, or guardrails when you are at fault. It pays the cost of repairing your vehicle or replacing damaged parts.

  • Comprehensive Coverage – This coverage protects against theft, fire, vandalism, hail, or other hazards other than collision.

If the car is damaged by a covered peril, the insurer pays the cost of repairing or replacing damaged parts up to the vehicle’s actual value.

  • Medical Payments Coverage – This coverage protects you, your family members, or other passengers who are injured in an accident. This coverage pays costs associated with the injuries such as hospital visits, surgery, and X-rays.

  • Personal Injury Protection – Personal Injury Protection works the same way as Medical Payments Coverage but may include other expenses not covered in Med Pay.

It pays the cost of medical expenses after an accident, funeral expenses if someone dies in the accident, and lost income for you or other passengers who are unable to work after the accident.

How to Review Your Car Insurance Policy?

Checking your car insurance policy can help you know what parts of your coverage have changed and any adjustments that need to be made. Here are things to consider when reviewing your car insurance policy:

When insuring your car, the insurer may require you to set a liability limit, which is equal to or above the state minimum liability coverage.

If you have not reviewed your liability limits, consider increasing the limit to maximize your coverage.

The deductible is the amount you agree to pay out-of-pocket for repairs when an accident occurs.

The amount you pay as deductible reduces the monthly premiums you pay. If you have not reviewed your deductible since taking the policy, you should adjust the amount contributed depending on your situation.

Check your policy for auto insurance discounts. The insurer may include a list of all available discounts in your car insurance renewal packet. If you are unsure of what each discount represents, you should talk to your insurance agent for an explanation.

Medical coverage may change frequently due to changes in the employer's medical benefits requirements, moving between jobs, or becoming unemployed.

Knowing how the policy is set up to cover medical payments and the amount of medical coverage the policy carries can help you know the changes you need to make or when you need a new medical coverage.

Auto insurance allows policyholders to add drivers who are allowed to drive the insured vehicle.

If you have new drivers in your family, you should review your policy to add them to the policy as drivers. You can also update the list of excluded drivers in your policy.

Should I Have a $500 or $1000 Auto Insurance Deductible?

The choice between a $500 and $1000 deductible depends on your financial situation and how much you can afford. Putting a lower deductible towards your car insurance means that you will pay less in out-of-pocket costs when an accident occurs, but the insurance premiums will be higher.

In contrast, a higher deductible means that you will pay more in out-pocket costs when a claim occurs, but the upfront insurance premiums will be lower.

For example, if your auto policy has a $6,000 coverage, and you pay a deductible of $500, it means the insurer will pay $5500 when an accident occurs. A $1000 deductible means that the insurer will pay $5000 when you make a claim.

The study shows that residents in each state get different savings on premiums, with Michigan getting the least savings at 4%, while Massachusetts residents get the highest savings of 17%.

Therefore, depending on the state where you live, you will need to figure out the savings you get with $1000, and if these savings are worth an extra $500 in deductibles.

Most drivers are aware that crashes can have an impact on insurance costs. In this chart using The Zebra data, you can see that an at fault crash increases the average cost of minimum coverage from $565 to $884. The price increase is even more significant if you have full coverage. You can expect to pay as much as 50% more on average.

How Much an at-fault Crash Raises Average Car Insurance Costs

How to Reduce Auto Insurance Cost?

Auto insurance is not a fixed cost, and there are things you can do to help you reduce the auto insurance premiums. Here are sure ways to get a lower auto insurance quote:

Car insurance rates for the same type of coverage may vary across insurance companies. Compare rates from different providers to see if you can save a few hundred dollars on your monthly premiums.

Drivers with a clean driving record are less likely to cause accidents or file claims, and therefore, get favorable insurance rates. Avoid getting speeding tickets or other unsafe road behaviors that may dent your reputation among insurers.

If you drive for lower than average miles every year, you can get a mileage discount to help you reduce your premiums. Also, some insurers provide per-mile coverage, and you can save on premiums if you have short commutes or a work-at-home arrangement.

Adding a few points to your credit score can help reduce your monthly premiums by a small margin. Start by paying off your credit card balances and making on-time bill payments to improve your credit score, and get favorable insurance quotes.

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Which Cars Are The Most Expensive to Insure?

Luxury cars and high-performance cars with a big engine are the most expensive cars to insure. It costs $3,000 to $5,000 annually to insure these cars.

Some of the cars with the highest auto rates include:

  • Mercedes-AMG GT – Mercedes AMG GT has an average annual insurance cost of $4,082, one of the highest rates on the market. AMG GT is a luxury car featuring a turbocharged V-8 engine with 469 hp. It has a price tag of $160,000.

  • Audi R8 $ – Audi R8 has an average annual insurance cost of $4,033. It features a 5.2L dual injection V10 602 hp engine, and such high performance attracts an equally high price tag of $170,000.

  • Nissan GTR – Nissan GTR is another high-performance car that has an annual insurance price of $3994. It has a 3.8L V6 engine with a 600 horsepower. It is one of the low-cost entries in the list of supercars, and it has a price tag of $113,000.

Why There is No “Cheapest Car Insurance Company”

When calculating the auto insurance rates to charge car owners, insurers use different methodologies to determine a fair rate depending on various parameters. Some of the parameters that car insurance companies use to justify their numbers include credit score, vehicle model, type of coverage, driving record, driver demographics, etc.

Therefore, it is impossible to get the cheapest auto insurance rates without going through the insurance approval process to determine if you meet the insurer's requirements.

However, different auto insurers charge different rates for the same type of coverage, and it is possible to get a cheaper rate for your car. Compare insurance quotes to know where you get the highest benefits and savings without compromising on the amount of coverage you get for each insured peril.

You can also reduce the amount you pay for auto insurance by offering to pay a higher deductible. If you have shorter commutes to and from work, find pay-per-mile coverage to get a cheaper rate depending on the number of miles you commute annually.

Largest Auto Insurance Companies (Market Share)

Car Insurance Mistakes You Should Avoid

When buying car insurance, it is common for car owners to make financial mistakes, which can affect their financial situation. Here are common car insurance mistakes that you should avoid:

Car owners make the mistake of buying auto insurance without comparing what other insurers are offering. If you are in the market for a new auto policy, start shopping around in advance to find insurers with the best rates.

You can use comparison websites to compare auto insurance rates or work with an insurance broker to find the best deals on the market.

Most states have minimum requirements for auto insurance, and this should not restrain you from getting more coverage.

Getting personal injury protection, Med Pay, and Uninsured/Underinsured motorist coverage can help you pay off your medical or repair costs when your emergency fund is running low.

Car owners make the mistake of buying more coverage than they need.

If you are driving an old or low-value car, it does not make economic sense to continue paying collision and comprehensive coverage. Only get the coverage that you need the most, and leave out the unnecessary add-ons.

When your auto insurance is up for renewal, don't rush into signing the papers without looking at the adjustments made to the policy.

Check if the adjustments suit your needs and if you are still getting the benefits you signed up for such as medical payments and car repair coverage.

Giving false information when applying for auto insurance or making claims can cause irreparable damage to your reputation.

If the insurer finds out that you provided false information, it can terminate your coverage.

Required Car Insurance Coverage in All States

Car insurance is required in 49 of the 50 US states, and car owners are required by law to have valid auto insurance coverage to use the state's roadways.

Drivers in New Hampshire are only required to show proof of financial responsibility, since the state makes it optional to buy auto insurance.

The mandatory car insurance coverage in most states include:

  • Bodily Injury Liability

This coverage pays medical bills for people injured in an accident where you or other people listed as drivers on your policy are deemed to be at fault.

It pays lost wages to a person who is injured in the accident and is unable to work. It also pays funeral expenses if there are fatalities due to the accident.

  • Property Damage Liability

This coverage pays the cost required to repair or replace another driver’s vehicle or property, where you are at fault.

However, this coverage does not cover damages to your vehicle, and you will need to buy a collision or comprehensive cover to cover damages to yourself.

Required Car Insurance Coverage in Some States

Some insurance coverage options are typically optional in most states, but may be required in a select number of states. Some of these policies include:

  • Uninsured/Underinsured Motorist Coverage – This coverage pays medical expenses and/or damages due to an accident involving drivers with insufficient coverage to pay the bill, or drivers without an active coverage. This coverage is mandatory in 22 states and DC, and optional in the rest of the states.

  • Medical Payments Coverage – The medical payment coverage, also known as Med Pay, covers medical expenses and funeral expenses if you, family members, or other passengers in your vehicle are injured in an accident.

This coverage is only required in Pennsylvania, Maine, and New Hampshire.

  • Personal Injury Protection – Drivers in no-fault states are required to purchase personal injury protection when buying auto insurance. No-fault states are states where every driver involved in an accident is required to file a claim with their insurers, regardless of who is at fault.

This coverage is required in 12 states including Hawaii, Florida, Minnesota, and New Jersey.

Is Auto Insurance Cheaper for Single People?

Single people pay higher auto insurance rates than married people because they are considered to be more likely to have accidents.

According to Zebra, Single people pay $160 higher annual in auto insurance premiums than married people. Another study conducted in 2015 by the Consumer Federation of America to survey how insurers price their auto insurance policies found that single people pay higher insurance rates than married drivers.

Married people are more responsible, and they are likely to share driving responsibilities, hence reduce chances of getting accidents or filing claims. They exercise good financial habits, and are more likely to be homeowners compared to single people. Bundling homeowner insurance and auto insurance allows them to get cheaper rates from one insurer and save more on insurance.

The comparison between married and single people also includes divorced and widowed drivers as single people. Divorced and widowed drivers are considered to be at a higher risk of accidents, and therefore, may pay higher rates for auto insurance.

Questions to Ask Your Car Insurance Company

When shopping for a car insurance policy, you should be ready to ask questions about the policy to uncover the finer details of the documents.

Here are some questions to ask your car insurance company:

For most auto insurance policies, liability insurance covers injuries and damage caused to other drivers, passengers, or cars. Ask your insurer to specify everything covered by the policy, and any add-ons that are required in your state.

Each policy has different coverage options, and you should understand the parties covered under the policy before you buy. Ask your insurer a list of all potential parties covered by the policy, and the amount of coverage provided for each party.

Some states allow insurers to use credit scores in insurance rates calculation, while other states like California prohibit insurers from using credit scores to lockout customers.

If you live in a state where credit scores are allowed in insurance policies, you should find out if the insurer uses credit scores to calculate insurance rates and how your score influences your rate.

Some insurers have specific requirements on the amount of deductible you can pay, and it ranges from $100 to $1000.

A higher deductible would mean slightly lower premiums for you, while a lower deductible would require higher monthly premiums towards your coverage.

When buying auto insurance, you may qualify for auto insurance discounts if you purchase other forms of insurance, have a clean driving record, you’ve taken a defensive driving course, or you have good academic grades (for teenage drivers).

However, these discounts are not applied automatically, you will have to ask your insurer if you qualify for the discounts.

When to File a Car Insurance Claim Can be a Good Idea?

When you have been involved in an accident, there are cases when it makes sense to file a car insurance claim. Here are scenarios when you should file a car insurance claim:

If you, family members, or other passengers are injured in an accident where there is a chance you are at fault, you should file a claim.

Accident injuries may lead to big medical bills that may be impossible to pay out-of-pocket, and failing to make a claim exposes you to litigations.


If you caused an accident that wrecked another person's car, you should file a claim with your insurance company. The insurer will assess the accident to determine if you are actually at fault and organize repairs with the other party's insurer.

If the accident caused significant damage to your car, talk to your insurance to claim collision coverage if you purchased the coverage.

If you are involved in an accident that results in injuries or property damage and the fault is unclear, you should file a claim so that your insurance company can take over the case.

The insurer will reach out to the other party’s insurers to assign responsibility for the accident and reach an agreement on the payouts.

Which Cars Are The Least Expensive to Insure?

If you are looking to save on car insurance rates, it helps to know the cars with the most favorable insurance rates. Here are the least expensive cars to insure:

  • Mazda CX-3 $1324 – Based on Insure’s latest ranking, the Mazda CX-3 is the cheapest car to insure, and it costs just $1,324 in annual auto insurance costs.

With a 148 horsepower engine, Mazda CX-3 is popular with families and it is loaded with multiple safety features such as an automatic emergency braking system and adaptive front lighting that keep the rates down.

  • Honda CR-V $1333 – The CR-V model ranks second among the least expensive cars to insure, with an annual auto premium of $1,333.

Honda worked on making this model safer with the Honda Sensing Package. Some of the safety features included in this model include an automatic emergency braking and forward collision warning.

  • Subaru Outback $1335 – The Subaru Outback ranks among the cheapest cars to insure, and it costs an average of $1335 in annual premiums.

It is loaded with safety features such as the EyeSight Driver Assist Technology, and the Advanced Adaptive Cruise Control.

Is It Cheaper to Insure a Newer Car?

The cost of car insurance depends on various parameters including the vehicle model, insurance coverage, and your driving record, and these factors may determine the rate you get for your new car.

For example, cars that have a higher risk of being stolen attract higher premiums due to the high risk attached to their ownership. This may also apply to high-performance and luxury cars, whose repair or parts replacement cost higher due to the unavailability of spare parts, or whose parts have to be imported from overseas. Cars with easily replaceable parts and that have a low risk of being stolen may be cheaper to insure.

If you buy a new car on loan or lease, the lender may require additional insurance coverage such as collision coverage and comprehensive coverage. The additional coverage protects the lender from the risk of loss in the event of an accident, and the additional coverage may increase the cost of insuring a new car.

Who Has the Cheapest Online Car Insurance?

If you are looking to get the highest savings on car insurance, you should compare rates from several insurers to find best rates. Here are insurance companies with the cheapest online car insurance rates:

  1. Geico

Geico has the cheapest auto insurance rates on average, and its minimum coverage costs $409 for a 6-month auto insurance coverage. Geico has one of the best auto insurance quote tools, and you can get an instant online quote for your car.

  1. State Farm

State Farm has the largest network in the US, and you can get a State Farm agent in your city. It has a minimum auto insurance coverage of $356 for 6 months. State Farm has the cheapest rates for at-fault accidents, with the average rates increasing from $869 to $1,038 after an accident.

  1. USAA

USAA has some of the cheapest auto insurance rates, but it is limited to active military personnel, veterans, and their families. It has a minimum auto insurance coverage of $215 for a 6-month policy.

How to Check an Insurer's Complaint Record?

Before buying car insurance coverage, you should check the insurer’s complaints record. The National Association of Insurance Commissioners (NAIC) is responsible for collecting and sharing complaints against the different types of insurance companies.

This association collects complaints about insurance companies from state regulators and publishes this information on its website.

To check an insurer's complaints on NAIC's website, go to the NAIC's Consumer Information Source page and search the insurance company by name or NAIC Company code, the state where you live, and the type of insurance. The search will show a list of the insurance company’s closed complaints. Click on report options to check the complaints about each subsidiary.

The subsidiary you are looking for should have the same address as the one indicated on your policy document. Click on the correct subsidiary’s name and filter the closed complaints by the complaints code, complaint index, state, licensing, or financial data.

For example, use the “complaint code” filter to see a list of all close complaints and the reason for each complaint.

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Methodology

Our expert review team gathers data from many auto insurance providers in order to create rankings of the top insurers. Each company receives a score from each category, along with a overall weighted score of 5.0 stars.

Financial Stability: The highest score in this category goes to insurers with high financial ratings and customer-first practices. Although insurance marketplaces do not have financial strength ratings they can still be useful tools for drivers who are looking for premiums at competitive rates. If you are looking for an insurer that doesn’t underwrite your policies, be sure to check the rating of the partner company.

Coverage: The rating is based upon the types of insurance that are available, their maximum coverage limits and any add-on policies. We also consider exclusions that are applicable to certain drivers.

Cost and Discounts: We review auto insurance rates estimates for many drivers across every state. The best scores are awarded to companies that offer lower rates and have many discount options for car insurance. You can lower your insurance premium by qualifying for any driver discounts. Car insurance companies often offer discounts up to 25%-35% for eligible policyholders. 

The discount percentages offered vary depending on where you live and some companies restrict the amount of discounts that can be applied to your premium. We looked at the discounts offered in the various companies that we reviewed. Many allow you to combine different insurance policies to save on premiums. There are many savings options for drivers shopping for car insurance. These include discounts based on the type of car, profession, driving record, and other factors. Companies that offer a variety of options could lead to a lower premium for drivers were favored by us.

Customer Service: We review customer feedback and reviews from J.D. Power. Data such as market share, complaints to the National Association of Insurance Commissioners for private passenger car insurance (2021) and overall ratio of those complaints to the industry average. 

We took into account parameters such as companies mobile apps, advanced online services, and telematics make it easier for auto insurers to respond to consumer needs. Many providers offer support via phone, email and agents. Some even offer live chat and 24/7 support via phone, email, or mobile app, while some provide social media responsiveness during weekends and after-hours hours.