Not all auto insurance companies are created equal. We surveyed more than 10,000 drivers to learn more about their auto insurance experience, focusing on key areas such as customer service, claims handling, and customer loyalty. We used that data to rank the best auto insurance companies in 2023 to help you find the best insurance provider.
What Is the Best Car Insurance Company?
According to our data, the best car insurance company is USAA, but its insurance products are only available to members of the military community. If that doesn’t apply to you, the next best option is State Farm, which holds the No. 2 spot in our analysis.
To determine the best car insurance companies, we analyzed rates data as well as feedback from policyholders, with specific attention to customer service, claims handling, customer loyalty, and policy renewal. We also asked survey participants how likely they were to recommend their existing insurer to a driver shopping for a new policy.
If you’re looking for auto insurance, this list can help you compare insurers based on the factors that matter most to you. Though USAA and State Farm lead the pack, you may find a better fit with one of the other eight companies in our rating. As such, it’s a good idea to compare several insurers and their rates before you purchase or renew your policy.
1. USAA
USAA is the best insurance company in our rating. According to our research, USAA customers report the highest customer satisfaction and are the most likely to renew their insurance or recommend USAA to other drivers. USAA also has the lowest premiums in our study, 35% above the national average.
USAA's insurance products, including auto, homeowners, and renters policies, are only available to military personnel. Therefore, not all drivers are covered by this insurance company.
Learn more about USAA Corporation here
2. state farm
State Farm is #2 , scoring above average in each of our sub-rating categories, including claims handling and customer loyalty. It also did well in our rating of the cheapest auto insurer in 2023. Its average premium was the lowest in our rating for those who cannot get insurance from USAA.
Learn more about state farm here
3. Farmers
Farmers Inc. tied for third in our ratings and tied for top in many of the sub-rankings. It tied for first in claims handling and tied for second in customer service and customer loyalty. One area where Farmers loses points compared to other insurers is in "Most Likely to be Renewed," where its score of 4.0 is below the category average of 4.2. The average annual percentage rate is also one of the highest of the companies in this rating.
Learn more about Farmers here
4. Nationwide
Nationwide moved up two spots from the 2021 analysis to a tie for third place; Nationwide received the second highest scores in the "Customer Loyalty" and "Likely to be Recommended" sub-rating, and above average scores in each of the other sub-rating categories Nationwide also has below-average rates for some drivers, especially those with good driving records or poor credit ratings.
Learn more about Nationwide here
5. Geico
Geico is tied for third in our evaluation of the best auto insurers in 2023, earning average scores in a variety of categories, including claims handling, customer service, and customer loyalty. It also ranks second on the list of cheapest auto insurers in 2023 for some of the most affordable average rates for teens, senior drivers, and those with bad credit.
Learn more about Geico here
6. Allstate.
Allstate moved up three spots to a tie for sixth place in this year's Best Auto Insurance Companies rating. Allstate also ranked fourth in the "Most Likely to be Recommended" sub-rating, although it scored slightly below average in most other rating categories. While its rates are among the highest in our analysis, Allstate may offer competitive rates to certain drivers, such as those with speeding tickets on their driving record.
Learn more about Allstate here
7. travelers.
Travelers is also trending upward this year, moving up two spots to a tie for sixth place. Travelers' customer service scores are lower than those of the other seven insurers analyzed, but the company still ranks first in the claims handling subrating category and third in the most likely to be renewed category. Travelers also scores above average on policy renewals, and its premiums are typically lower than the national average.
Learn more about Travelers here
8. progressive
Progressive ranked eighth on the list. Overall, customers are generally satisfied with the ease of purchasing insurance policies, but the company scores last in the "customer loyalty" category and below average in all other evaluation categories. Progressive's customers also report that they are less likely to renew their policies or recommend this insurer to other drivers. However, those who drive under the influence may be able to save money with Progressive. Its rates for such drivers are the lowest in our study.
Learn more about Progressive here
9. AAA
AAA is new to our best auto insurance company ratings, and it ties with Progressive for eighth place. Its scores are below average in each of the categories we analyzed. However, in our "Most Likely to Renew" rating, AAA is ranked sixth, ahead of Allstate, Farmers, Progressive, and American Family.AAA also has the highest average premiums in our study, but drivers considering AAA should consider whether their individual rates are need to obtain quotes to determine if they are more competitive.
Learn more about AAA here
10. american family
American Family dropped four spots this year to 10th place. American Family has the lowest scores in most subrating categories, but scores slightly higher than Progressive in the Customer Loyalty category. Despite the lower scores, American Family offers competitive rates for some drivers, especially teenage drivers, drivers with poor credit ratings, and drivers with accident or DUI histories.
Learn more about American Family here
How much does car insurance cost?
According to the latest research, the average cost of auto insurance is $1,539. However, your premium can be higher or lower depending on several variables, including
- Age
- Driver's record
- Location
- Type and amount of insurance
- Credit score
- Available Auto Insurance Discounts
There are often a number of discounts available with any given insurance company that consider certain demographic factors, driving record, and even active driving rating. Auto insurance quotes are the easiest way to find out how much you might pay. You can get auto insurance quotes online or via email, over the phone, or by talking to an agent in person.
How Much Auto Insurance Do I Need?
The amount of insurance you need depends on several factors. One of the most important indicators of how much coverage you may need is state requirements. Most states have laws that require drivers to carry a minimum amount of liability coverage. Some states also require drivers to carry other types of insurance, such as uninsured motorist coverage or personal injury protection (PIP).
The next thing to consider is the requirements of any lender or lessor. If you make monthly payments on your vehicle, your loan or lease agreement should specify the amount of coverage you need to carry. Refer to your lender, lessor, or financing agreement.
Who are the top auto insurance companies?
We surveyed over 10,000 policyholders across the U.S. and found that the following insurance companies are the top auto insurance providers
- USAA
- State Farm
- Farmers
- Nationwide
- Geico
- Allstate
- Travelers
- Progressive
- AAA
- American Family
We also rate insurance companies by price. For the most affordable coverage, see our list of "Cheapest Auto Insurance Companies in 2023."
What is the best auto insurance?
According to our most recent data analysis, USAA and State Farm are the best auto insurers, with USAA receiving the highest overall score in our customer survey and also ranking #1 in nearly every sub-rating we analyzed. It also has the lowest rates of any auto insurer included in our study.
USAA's products are available only to military personnel. Drivers who do not fall into this category may find the best coverage with State Farm, which has the second highest score in our survey and rates that are lower than the national average.
Which auto insurance policies are the cheapest?
According to our research, USAA is the cheapest auto insurance. Drivers who cannot afford USAA insurance may find the lowest rates with Geico.
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