The 10 Best Car Insurance Companies (2025)
State Farm is the best car insurance company for most people. It costs around $134 per month. | ||
Erie has the best car insurance rates, at $115 per month for full coverage. But it's only available in 12 states and D.C. | ||
Amica has some of the best customer service reviews, But it's not cheap, at around $232 per month. |
Find the Best Cheap Auto Insurance Quotes in Your Area
Top 10 best car insurance companies
Find the Best Cheap Auto Insurance Quotes in Your Area
Data-powered research on the best car insurance
- State Farm is the best major company. It offers a mix of affordable rates and great customer service.
- NJM is the top-rated company in the Mid-Atlantic, with excellent customer reviews.
- Erie is consistently one of the cheapest insurance companies in the Mid-Atlantic, Midwest and parts of the Southeast.
- Amica has the best-rated customer service among national companies.
- Shelter has the best coverage, because its basic full coverage policy includes extra protection.
- Farm Bureau has the best local agents, so you'll get personalized attention.
- USAAoffers the best rates and top-notch customer service to military members, veterans and their families.
- Auto-Owners has the best rates and discounts for teens and families with multiple cars.
- American Family is the best choice for tech-savvy drivers because it has great online tools to help manage your policy.
- Nationwide has the best discounts, including excellent safe driving and pay-per-mile programs.
Best car insurance overall: State Farm
-
Editor's rating:
- Full coverage: $134/mo
- Read the full State Farm review
State Farm has the best car insurance for most drivers because it's cheap, reliable and easy to use.
Best regional car insurance company: NJM
-
Editor's rating:
- Full coverage: $156/mo
- Read the full NJM review
NJM has excellent service, affordable rates and policies that include free extras.
Best company for cheap insurance: Erie
-
Editor's rating:
- Full coverage: $115/mo
-
Erie has the best rates for car insurance if you live in the Southeast, Midwest or East Coast.
Best customer service: Amica
-
Editor's rating:
- Full coverage: $232/mo
- Read the full Amica review
Amica's top-notch customer service makes it a great company if you're willing to pay more for insurance.
Best car insurance coverage: Shelter
-
Editor's rating:
- Full coverage: $171/mo
- Read the full Shelter review
Shelter is the best company if you need extra coverage, like gap insurance or new car replacement.
Best if you want a local agent: Farm Bureau
-
Editor's rating:
- Full coverage: $159/mo
- Read the full Farm Bureau review
Farm Bureau stands out for its personalized support from local agents.
Best company for families with teens: Auto-Owners
-
Editor's rating:
- Full coverage: $145/mo
- Read the full Auto-Owners review
Auto-Owners has the best car insurance rates for families with teen drivers.
Best online tools: American Family
-
Editor's rating:
- Full coverage: $168/mo
- Read the full American Family review
American Family has an easy-to-use app and website and excellent customer service.
Best auto insurance discounts: Nationwide
-
Editor's rating:
- Full coverage: $200/mo
- Read the full Nationwide review
Nationwide's many discounts mean that it can be cheap if you qualify for several savings options.
Best insurance for military members and veterans: USAA
-
Editor's rating:
- Full coverage: $110/mo
- Read the full USAA review
USAA is the best-rated and cheapest car insurance company if you have connections to the military.
How customers rank the top insurance companies
NJM, Amica and Erie are the best all-around car insurance companies, according to customers.
-
NJM earned the top score on J.D. Power's claims satisfaction survey, which polls real customers about their claims experience. It also gets around
one-fifth as many complaints as average.
In addition, Reddit users are very happy with NJM's customer service and claims experience. A few customers even mention their body shops’ praise for NJM, saying they tend to pay for original manufacturer parts instead of cheaper aftermarket parts. -
Amica is an excellent choice if
NJM doesn't sell car insurance near you.
Amica has the second-highest score on J.D. Power's claims satisfaction survey, and it only gets around half as many complaints as average.
On Reddit, customers praise Amica for having an outstanding claims process after an accident. And while they admit that Amica can be more expensive than average, Redditors typically agree that its great service is worth the extra cost.
- Erie has the third-highest score on J.D. Power's claims satisfaction survey and 28% fewer complaints than average. Redditors tend to agree that Erie's combination of great customer service and affordable rates makes it a great choice. Many report staying with Erie for years due to its smooth claims process and great prices.
Highest-rated insurance companies according to customers
Best car insurance companies near you
State Farm and USAA are the best-rated major companies in many states.
The best car insurance for you depends on where you live. A great way to save money on car insurance is to compare quotes from multiple insurance companies in your area.
Find the Best Cheap Auto Insurance Quotes in Your Area
Top auto insurance companies by state
State | Top pick | Rating |
Cost
|
|---|---|---|---|
| Alabama | State Farm | $103 | |
| Alaska | State Farm | $115 | |
| Arizona | State Farm | $138 | |
| Arkansas | State Farm | $113 | |
| California | AAA | $159 |
How much does the best car insurance cost?
The best car insurance company doesn't have to be expensive. However, rates depend on your coverage, age and driving record.
For example, the best liability-only car insurance comes from Erie, where a policy costs just $43 per month. Erie is also the best choice for people with poor credit. Its full coverage policy costs $235 per month if you have a bad credit score, which is five times more than its liability-only policy.
Monthly cost of the best car insurance companies
How to find the best car insurance for you
The best car insurance company for you has great coverage and support at an affordable rate in your area.
If your priority is…
We recommend:
Erie or State Farm, because they have the cheapest rates for most drivers.
American Family or State Farm, because they have highly rated apps and digital tools that make quotes, claims and changes easy.
We recommend:
Auto-Owners, Erie or Farm Bureau, because all three have affordable family rates and great discounts for young drivers.
We recommend:
USAA, because it has low rates and consistently high praise from military families.
How to find the best car insurance companies for affordable rates
Shopping around and using discounts are the best ways to lower your car insurance rates.
How to find an insurance company with the best coverage
The best auto insurance companies offer extra protection to make your life easier after a crash along with the basic coverage you need to drive legally.
Popular car insurance coverage add-ons
Beyond these basic coverages, insurance companies may offer add-ons. None of these are required by law, so you can choose what you want.
Coverage | Description |
|---|---|
| Accident forgiveness | Your first at-fault accident won't affect your insurance rates. |
| Vanishing deductible | Your deductible gradually declines for each year you're accident-free. |
| Mechanical breakdown | Covers the cost of repairing wear and tear to your car. |
| Rideshare insurance | Covers you during the rideshare waiting period when Uber and Lyft coverage doesn't apply. |
How to find the best car insurance for customer support
Start by using ValuePenguin editor recommendations to find the best car insurance companies in the country.
Our five-star ratings are a snapshot of a company's overall quality. Our scores are based on customer service ratings from J.D. Power, customer complaint data from the NAIC , cost, coverage options and overall value.
Frequently asked questions
What’s the best car insurance company?
State Farm is the best car insurance company overall for its affordable rates, excellent service and helpful coverage options. If you want customized coverage, choose Shelter Insurance. If you have a teen driver in your family, choose Auto-Owners. And if you want great local agents, choose Farm Bureau.
Who has the best car insurance rates?
State Farm has the best car insurance rates compared to other national companies. Minimum coverage from State Farm costs around $55 per month, and full coverage rates average $134 per month. Companies like USAA, NJM and Erie might have cheaper rates, depending on where you live and whether you qualify for coverage.
How can I find the best car insurance for me?
To find the best car insurance for you, figure out how much and what kind of coverage you need. Then get quotes from several companies available near you for the same level of coverage. Compare each company's quotes, customer support ratings, coverage options and discounts.
Who has the best auto insurance near me?
USAA and State Farm have the cheapest rates and best support among the top insurance companies. But the best car insurance in your state might be a smaller local company like Erie or NJM. That's why it pays to compare quotes from several large and small companies near you.
Which insurance company has the best customer satisfaction?
NJM, Amica and Erie are the top-rated car insurance companies for customer satisfaction. All three companies have high scores on J.D. Power's claims satisfaction survey, great reviews on Reddit and earn fewer complaints than average, according to the NAIC.
Methodology
ValuePenguin chose the top 10 insurance companies based on an unbiased review of 40 major insurance companies. All of our picks offer insurance in at least five states.
How companies are rated
ValuePenguin assigned its editor ratings for insurance companies based on customer service, affordability, coverage options and shopping experience.
In addition to doing independent research about each company, we also used additional third-party sources.
- J.D. Power's customer surveys about overall satisfaction and the claims experience
- AM Best's ratings for a company's financial strength
- The NAIC’s reports on formal complaints about a company
How costs are calculated
Rates are based on full coverage car insurance using quotes from all residential ZIP codes in the country where the company has a large market share.
Quotes have better coverage than what's required by the states and also include comprehensive and collision coverage to protect your car. Averages are for a 30-year-old man who drives a 2015 Honda Civic EX, unless otherwise noted.
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Comprehensive and collision coverage: $500 deductible
Family rates for a parent and teenager were gathered separately for all ZIP codes in Illinois, Pennsylvania and Georgia for a 50-year-old with an 18-year-old on their policy. These quotes include the limits above, plus $50,000 of uninsured and underinsured motorist property damage coverage.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your own quotes may be different.
About the Author
Senior Writer
Lindsay Bishop is a Senior Writer at ValuePenguin, where she educates readers about home, auto, renters, flood and motorcycle insurance.
Lindsay began her career in the insurance and financial industry in 2010. She was a licensed auto, home, life and health insurance agent and held Series 6 and 63 financial licenses.
After a hiatus from the financial sector, Lindsay returned to the industry as a content writer for ValuePenguin in 2021. She enjoys having the opportunity to help readers make smart decisions about their insurance so they can be prepared for anything life throws their way.
When Lindsay isn't writing about insurance, you can find her spending time with family, enjoying the outdoors on Sunday long runs or riding her Peloton.
How insurance helped Lindsay
As a homeowner for 15 years located in South Carolina, Lindsay has plenty of experience navigating the coastal insurance market and managing the claims process. That includes successfully negotiating a full roof replacement claim.
Expertise
- Home insurance
- Car insurance
- Flood insurance
- Renters insurance
- Motorcycle insurance
Referenced by
- CNBC
- Yahoo Finance
- Miami Herald
Education
- BS/BA Economics, University of Nevada Las Vegas
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
