Best Affordable Auto Insurance Companies (2024)

The best auto insurance companies are highly rated by consumer rating institutions, have strong financial health, and pay even the most expensive claims. If you’re ready to buy the best auto insurance at an affordable price, our list of the best affordable auto insurance companies can help.

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Ty Stewart

Licensed Insurance Agent

Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications.  As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process simpl...

Licensed Insurance Agent

Laura D. Adams

Insurance & Finance Analyst

Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...

Insurance & Finance Analyst

UPDATED: Feb 2, 2024

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

What You Should Know

  • The best auto insurance companies have great rates, dependable service, and easy access
  • Beware of any company with rates that are too good to be true
  • Check J.D. Power and A.M. Best to see which car insurance companies have the best ratings

There are many factors that go into determining the best auto insurance companies. We’ve compiled a car insurance company name list featuring the best companies around. Finding the best affordable auto insurance companies doesn’t have to be a hassle.

Selecting a good auto insurance company gives you the peace of mind to know that if you get into an accident, you’ll be in good hands. You want to know that if you make a claim, you won’t have to worry that it will be denied.

The best auto insurance companies are not only highly rated by consumer rating institutions, but they also have strong financial health and the ability to pay even the most expensive claims.

Understanding auto insurance is the best way to save money. Read on for more on the best car insurance companies across the nation.

Shop around to get the best coverage at the cheapest price from top-rated auto insurance companies. Enter your ZIP to compare auto insurance quotes from the best auto insurance companies in the USA.

Consumer Reports Auto Insurance Company Survey

So, what makes a company one of the best car insurance providers? There’s no single right answer to this, and in reality, an insurer that is great for one driver may not be so great for another. Ultimately this means finding the best car insurance company for you can be a multi-step process, and there are a number of things to consider when shopping for the best auto insurance for your needs.

A recent survey by Consumer Reports was distributed to 28,241 auto insurance customers and ranked 22 insurers according to two criteria:

  1. How quickly claims were paid
  2. If there were any problems with the claims process

Read more:

These auto insurance company ratings were scored on a scale of one to 100. The results of the survey brought some interesting things to light. First, all of the companies surveyed scored over 80.

Secondly, the best-rated auto insurance companies, according to consumers who returned the survey, are smaller ones that you may not have heard of.

Another interesting and disturbing fact was that even among these top-rated auto insurance companies, 10 to 26 percent of all respondents reported having problems receiving payments on claims. In some cases, these insurance customers wound up waiting over two weeks before receiving a claims check.

This is why it’s important to look at ratings for reputable auto insurance companies, not just look for the cheapest prices.

Everybody wants to keep their rates low, so many people only look for cheap car insurance companies. But sometimes, a great price does not equal great coverage or customer service.

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List of Auto Insurance Companies With the Cheapest Rates

Let’s look at the list of car insurance companies representing some of the best car insurance service providers in the country. Along with the insurance company names, you will get an idea of the low, medium, and high coverage rates you can expect to pay.

Average Annual Auto Insurance Rates Based on Coverage Type
Insurance CompaniesAverage Annual Rates for Low CoverageAverage Annual Rates for Medium CoverageAverage Annual Rates for High Coverage
USAA$2,404.11$2,539.87$2,667.92
Geico$3,001.91$3,213.97$3,429.14
State Farm$3,055.40$3,269.80$3,454.80
American Family$3,368.49$3,544.37$3,416.40
Nationwide$3,394.83$3,449.80$3,505.37
Progressive$3,737.13$4,018.46$4,350.96
Farmers$3,922.47$4,166.22$4,494.13
Travelers$4,223.63$4,462.02$4,619.07
Allstate$4,628.03$4,896.81$5,139.02
Liberty Mutual$5,805.75$6,058.57$6,356.04
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High or full coverage auto insurance is about $345 per month. Low or liability-only coverage averages $312 per month. If you receive a quote that is a lot lower than these averages, it might not be the deal you think it is. Watch out for suspiciously low prices.

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As 19th-century philosopher John Ruskin reportedly said,

“There is scarcely anything in the world that some man cannot make a little worse and sell a little more cheaply. The person who buys on price alone is this man’s lawful prey.”

Because of this, Consumer Reports issued the following warning with its findings:

“Saving on car insurance is not only a matter of finding the lowest premium. An insurer can charge less in premiums but cost you more overall by low-balling loss estimates, hassling the repair shop to cut corners, and forcing you to pay extra for the manufacturer’s replacement parts if you choose them over cheaper knockoffs. It can also unfairly jack up your premiums after an accident.”

What this means is that low-cost auto insurance isn’t always great. You should do your research to find a reputable insurer with high ratings from not only Consumer Reports but from J.D. Power and A.M. Best as well.

J.D. Power ranks auto insurance companies based on customer satisfaction. Factors like pricing, available coverage, and customer service are used to rank companies for every part of the U.S.

A.M. Best looks at the financial stability of companies to determine if they’re creditworthy. There are multiple ratings, from A++ to D. A good rating means the company is financially stable and can meet its obligations.

No matter what company you go with, certain factors will greatly affect your auto insurance rates.

Your driving record is one of the biggest factors that determine your car insurance rates. Driving safely will keep your rates as low as possible.

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The best car insurance companies Consumer Reports survey was distributed to auto insurance customers who had filed claims during a recent 18-month period. It found that 86 percent of respondents were “highly satisfied” with the way their claims were handled.

Who are the top auto insurance companies in this survey?

The highest consumer-rated auto insurance companies in the US were those that scored in the top eight percent, including New Jersey Manufacturers Insurance, Arbella, and Auto-Owners Insurance.

Keep in mind that these companies may not offer policies in all states or have strict eligibility rules that prevent some people from buying policies from them. So if you haven’t heard of them, don’t worry. Most people haven’t.

Getting Auto Insurance Quotes From a Reputable Source

The internet has made it easy to get dozens of auto insurance quotes in just a few minutes. Not all companies, however, let you compare rates from only the top-rated insurance providers.

4AutoInsuranceQuote.com is different. We don’t just recommend any auto insurance company to you; we recommend the best auto insurance companies in the industry.

By using our quote comparison tool, you’ll be given the best auto insurance quotes from the highest-rated, most reputable insurance companies, including those listed in our top 25 list below.

Our Top 25 Best Auto Insurance Companies List

The following list of car insurance companies compiles 25 companies that have been chosen for several reasons, and they have a few things in common. The best insurance companies have top-notch customer service, their rates are low, and they have insanely high customer satisfaction ratings.

While it may be slightly different from the Consumer Reports list mentioned above, the factors and values we considered when ranking these companies are very much the same.

Geico

Geico’s customer service is second to none, and its large customer base means it can charge low rates. If you’re looking for an affordable car insurance policy with excellent coverage options, Geico might be right for you. Learn more in our Geico auto insurance review.

Read more: Geico DriveEasy Review: Can you get affordable auto insurance? 

Allstate

As its slogan says, with Allstate, “You’re in good hands,” and that is the truth. Allstate’s customers love the company, so there’s a pretty good chance you will too. Allstate was one of the first to offer accident forgiveness, and it continues to add new features that change how we pay for auto insurance.

Read more: Allstate Auto Insurance Review: Can you get affordable quotes?

State Farm

State Farm is another auto insurance provider that’s sure to please. It’s grown to become the largest insurance provider in North America. Claims agents are always friendly, and the company provides you with a lot of coverage for an affordable price.

State Farm is also a great option if you’re looking for a local agent, as the company has agents located across the country. Learn more in our State Farm auto insurance review.

Esurance

With 24/7 support and friendly agents, Esurance’s customer service is hard to beat. Its prices are competitive, as well. Esurance not only offers a wide range of discounts, but it also has an extensive list of policy options.

Arbella

Arbella doesn’t waste your money on ads or flashy commercials. This company lets its work speak for itself. Arbella thrives on referrals and word of mouth. Policyholders love Arbella with good reason too. Its hassle-free claims process seems to be its most popular feature.

American Family Auto Insurance

Although smaller than the other companies on our list, American Family aims to please. It pays claims promptly and gets high reviews from all major publications.

Read more: How long does it take for American Family to process an auto insurance claim?

Unfortunately, American Family auto insurance is only available in 19 states. If you’re lucky enough to live in one of these states, you might want to give this company a try. Learn more in our American Family Insurance auto insurance review.

Liberty Mutual

As an older, conservative insurance company, Liberty Mutual vs. State Farm auto insurance prides itself on its reputation. It’s got competitive pricing with a personal touch and short wait times when it comes to claims. Learn more in our Liberty Mutual auto insurance review.

Read  more: What is Liberty Mutual’s policy on rental car coverage during the claims process?

Progressive

Progressive is another company you might recognize from TV. Getting started with Progressive is simple and inexpensive too. Its claims process is known to be problem-free. Progressive is also known for customizable coverage options. Learn more in our Progressive auto insurance review.

AAA

“Triple-A” is more than just roadside assistance and travel accommodations. Its auto insurance coverage is of the highest quality. If you get into an accident, AAA will be by your side every step of the way. Learn more in our AAA auto insurance review.

Farmers

Farmers is known for its great auto and home insurance coverage options. If you’re thinking about combining policies, give Farmers a shot. Customers appreciate the highly customizable insurance options. Learn more in our Farmers auto insurance review.

USAA

USAA is ranked as one of the best insurance companies in the United States year after year. USAA scores very well for price, customer service, and claims satisfaction. The only catch is that USAA is only available to active duty or retired United States military personnel and their families.

Read more: USAA Auto Insurance Review: Can you get affordable quotes?

Amica

Amica offers customized car insurance policies based on your budget and coverage needs. The Lincoln, Rhode Island-based company is one of America’s oldest insurers.

Today, Amica isn’t one of the country’s largest car insurance companies, although it consistently ranks as one of the best companies in terms of overall customer satisfaction, and it took home the top prize in the J.D. Power 2017 U.S. Auto Claims Satisfaction Study.

Erie

Erie is another car insurance company that’s highly rated by organizations and policyholders alike. The company has a particularly strong presence in the mid-Atlantic region.

One of the unique things about Erie is that all transactions, including claims, go through your own Erie insurance agent, giving Erie a personalized touch you may not get with other insurers.

Young drivers typically pay significantly higher rates than older, experienced drivers. Erie offers some of the best rates for young drivers, though those rates are still higher than for older drivers. Learn more in our Erie auto insurance review.

NJM

NJM Insurance Group formerly only served customers in New Jersey (NJM was originally called the New Jersey Manufacturers Casualty Insurance Company). Today, however, NJM provides well-rated car insurance to nearly one million policyholders in New Jersey and Pennsylvania.

The company has strong ratings for its customer service and claims satisfaction, and the only drawback is that NJM currently only serves two states. Learn more in our NJM Insurance Group auto insurance review.

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The Hartford

The Hartford is particularly popular among drivers over 50. In fact, The Hartford only sells car insurance to AARP members, so you need to be over 50 to qualify. Unique features offered by this company include lifetime renewal eligibility, one-year low premium lock-ins, and high customer service ratings.

Auto-Owners Insurance

Auto-Owners Insurance is a Fortune 500 company that has sold car insurance across the United States for over 100 years. Just like Erie Insurance above, Auto-Owners Insurance uses agents to handle all claims and transactions, giving the company a more personalized experience over other insurers.

The company is praised for its affordable rates, personalized service, and strong claims satisfaction, although it’s currently only available in 26 states. Learn more in our Auto-Owners auto insurance review.

The Hanover

The Hanover tends to be more expensive than its competitors, although the company offers more premium services than an ordinary American car insurer. The Hanover offers home care services, for example, along with automatic veterinary expense coverage for pets and a wide range of potential discounts.

Nationwide

Nationwide has grown to become one of America’s largest insurance and financial services companies. The company is best known for its car insurance, although it’s not particularly well-rated compared to other providers on this list.

Despite the below-average customer service, Nationwide offers competitive prices and unique features like AutoWatch, which lets you monitor your car’s progress while undergoing repair. Nationwide is also a good option if you have a poor credit score, as they don’t weigh credit as heavily as some other insurers do.

Travelers

Despite the name, Travelers isn’t just for people who travel. It’s a well-rated car insurance company for all types of drivers. Travelers is particularly popular for its wide range of discounts. If you sign up for the Intellidrive driver tracking program, for example, and drive safely, then you can save up to 20 percent off your premiums. (For more information, read our “Does my auto insurance cover rental cars when I am traveling out of town?“).

21st Century

21st Century Insurance is a wholly-owned subsidiary of Farmers Insurance Group. However, the company continues to offer its own car insurance policies today. Generally, 21st Century is known for offering good-value car insurance that gets the job done without excelling in any particular category.

MetLife

MetLife is America’s largest employee benefits provider, although the company also offers car insurance.

MetLife car insurance is a particularly good option if you’re part of an organization with a deal with MetLife because you can get discounts of up to 50 percent. The company ranks average for customer service and claims satisfaction.

Mercury Insurance

Mercury Insurance is known for offering basic, low-cost car insurance policies with no frills. If you want no-nonsense car insurance that gets you on the road at a reasonable rate, then Mercury Insurance, along with the availability of Mercury auto insurance quotes, is an option worth considering. However, the company is poorly rated for customer service.

Safeco

Safeco is a Liberty Mutual Group subsidiary, although the company continues to sell its own car insurance policies. Safeco isn’t known for its affordable rates, although the company does offer a range of discounts that can drop prices substantially.

Safeco’s RightTrack driver tracking program can drop rates by 30 percent, for example, and drivers who drive fewer than 8,000 miles per year qualify for unique discounts. (For more information, read our “What do I need to do to cancel my auto insurance policy with Safeco Insurance?“).

MAPFRE

MAPFRE is a Spanish insurance giant that has slowly entered American markets over the last decade. In 2007, MAPFRE purchased the Massachusetts-based Commerce Insurance Group.

Today, MAPFRE has continued to expand across the United States and worldwide, offering competitively-priced car insurance with the average customer service you would expect from a multi-billion dollar insurance conglomerate.

The General

You’ve seen the television advertisements for The General. The Nashville, Tennessee-based company specializes in providing cheap car insurance to high-risk drivers. Many of The General’s policyholders are unable to get affordable rates from traditional insurance providers, so they turn to The General.

Don’t expect spectacular customer service or claims satisfaction from The General; the company specializes in barebones car insurance for drivers who just want to get on the road.

Read more:

The Best Auto Insurance Companies’ Features

When you’re looking for car insurance companies, the lowest-priced car insurance policy is not always the best.

When shopping around, carefully look at multiple auto insurance companies, and do your research. Remember that information on how insurers handle claims and how they set rates is public record and generally not difficult to find.

People who have particular car insurance needs may be better served by going to an independent car insurance agency rather than a single company. Independent agents represent several insurers and can usually help you find good coverage for your unique situation.

Although the list above represents our favorite choices, there are other companies not listed that are also deserving of recognition.

Are you ready to buy auto insurance for you? By entering your ZIP code in our free tool, you’ll be presented with the best auto insurance rates from a variety of companies.

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Auto Insurance Company Ratings

When it comes to buying auto insurance, many people only think about the cost, but there are many things to take into account when purchasing an auto insurance policy, and looking at auto insurance company ratings can help you choose the right auto insurance policy for you. Two companies may offer similar car insurance quotes online, but that doesn’t mean you’ll get the same coverage.

Americans are blessed with a wide variety of auto insurance companies from which to choose. Whether you live in Alaska or Arizona, California or Connecticut, you can find a good car insurance provider that meets your budget and lifestyle.

Read more: Cheap Alaska Auto Insurance

In fact, there are so many car insurance companies to choose from – choosing the right one can be overwhelming!

That’s why we want to help! By checking auto insurance company ratings online, you can discover which company works best for you. Two companies may offer similar car insurance quotes online, but that doesn’t mean you’ll get the same coverage. In many cases, auto insurance companies will dazzle drivers with low prices, only for drivers to find they have minimum liability coverage – nothing else.

With that in mind, let’s take a look at auto insurance company ratings across the United States.

The Top Car Insurance Companies in the United States

There are hundreds of car insurance providers across the United States. Some insurance companies are available in all 50 states and all territories. Other insurance companies are only available in a single state or a small region. Below, you’ll find a list of some of the best and most popular car insurance companies across the United States (ranked by market share):

  • State Farm
  • Geico
  • Allstate
  • Progressive
  • Farmers Insurance
  • USAA
  • Liberty Mutual
  • Nationwide
  • American Family
  • Travelers

These are all some of the largest car insurance providers in the United States because they serve customers across the country. All of the above companies serve customers nationwide.

USAA tends to rank particularly high in terms of both price and customer satisfaction. However, there is a catch: USAA isn’t available to everyone. It’s only available to retired and active-duty military personnel and their families.

All of the companies above are popular and well-known. They’re some of America’s largest corporations. However, some customers will be more satisfied when buying car insurance from a smaller, regional provider.

The Best Car Insurance Comes from Smaller, Regional Providers

The companies listed above have name-brand recognition. However, if you’re looking for the best auto insurance company ratings in the United States, then consider choosing a smaller, regional provider. Smaller providers may serve a particular region – like the Midwest or the Northeast. Or, they might serve a specific state.

There’s nothing wrong with choosing a regional insurance company. Many customers report higher satisfaction with smaller companies. Sometimes, you might even pay lower rates. It highlights the importance of comparing as many car insurance quotes as possible when shopping around for insurance.

Some of the more popular regional car insurance providers include Automobile Club Group, Amica Mutual, Erie Insurance, Auto Club of SoCal, The Hartford, The Hanover, CSAA, Safeco, MetLife, and NJM.

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Comparing Auto Insurance Ratings Online

Choosing between all of these good insurance companies can be overwhelming. Fortunately, the internet has made it easier than ever to compare auto insurance ratings online. Today, all it takes is a few minutes of your time to start shopping for the best car insurance in your local area.

Of course, shopping for car insurance isn’t always as easy as instantly picking the cheapest quote. Instead, it can take careful research and hours of shopping to find the right insurance company for you. All of this hard work is worth it; however, when you find a good car insurance company at a better price.

Here are some tips for comparing auto insurance ratings online:

Remember each state has different minimum legal limits: It’s important to remember that states have vastly different insurance laws. Some states are no-fault states while others are tort states. This will significantly change the way you file an insurance claim, and it can also significantly affect the price of car insurance. Make sure you’re aware of your state’s minimum insurance limits before shopping online. Only one state – New Hampshire – does not require car insurance.

Certain states are more expensive than others: Another important thing to remember is that drivers in different states pay vastly different prices for the same car insurance. A minimum liability insurance plan might cost three times as much in Michigan as it does in Idaho, for example. Some states – like Florida and Louisiana – have notoriously high insurance prices while other states – like North Carolina and Maine – but you may want to check out cheap Idaho Auto Insurance for some of the lowest insurance prices.

Look for claims satisfaction: Ideally, you’ll never need to use your car insurance policy. If you do need to use it, however, you want the claims process to go smoothly. Look for customer reviews online from people who have legitimately filed insurance claims with that company. These customers give you an inside look at what you can expect when you need to file a claim.

Price satisfaction: Sometimes, drivers don’t mind paying higher premiums for car insurance. Good comprehensive insurance, for example, might be worth a few dollars per month more than bad comprehensive insurance. Sometimes, cheap car insurance policies will come with rules and restrictions that prevent you from ever making a claim. When looking at car insurance company ratings online, look for price satisfaction among current customers.

Ease of shopping: If an insurance company has an easy online shopping experience, then they’ll likely be an easy company to deal with overall. Companies that invest in a good insurance quote request form also tend to be the companies that invest in mobile apps, responsive web designs, and a secure online experience.

Choose companies with stable financial situations: You depend on your insurance company to be there when you need it most. Unfortunately, insurance companies can go bankrupt or close down. That’s why it’s important to choose a car insurance company with strong financial stability. AM Best provides financial stability rankings for companies across the United States. Consider checking your insurance company’s AM Best financial strength rating before you lock down a quote.

Consider checking J.D. Power’s auto insurance rankings: J.D. Power is one of the country’s major ranking services for car insurance companies. Every year, they measure auto insurance customer satisfaction across the country. Their rankings are split into different regions, including Central, California, Florida, and other regions, making it easy to see which company leads the way in your area. You can view the average customer satisfaction rating in your region, then view the top-ranked companies. J.D. Power 2018’s rankings were the best on record overall, indicating customers were more satisfied with their insurance companies than ever before.

Ask about repair facility restrictions: Some insurance companies require you to use specific repair facilities. You might have to drive across town to work with a specific auto body repair shop, for example.

Range of coverage options: America’s best insurance companies offer an extensive range of coverage options. They might offer gap insurance, for example, and interior vehicle coverage, among other bonus features. Poor car insurance companies, meanwhile, will limit coverage with various restrictions, preventing you from making claims on damages that would be covered by other car insurance companies. You might save $10 per month on your premium but end up paying significantly more in the long run when you’re forced to pay for a claim out of pocket.

Compare Car Insurance Quotes Online Today from the Best Auto Insurance Companies

Finding the best auto insurance quote is easier today than ever before. With a few minutes of online searching, you can find the best car insurance company for your unique needs based on customer claims satisfaction, price, coverage options, and more. Enter your ZIP code into our easy online form to start comparing auto insurance company ratings across the United States.

Frequently Asked Questions

What are the factors influencing customer’s choice for insurance companies?

When searching for the best auto insurance companies, it’s essential to consider factors such as their ratings from consumer rating institutions, financial health, and their ability to handle expensive claims. These factors will help you determine the reliability and quality of coverage provided by the company.

How can I find affordable auto insurance from the best companies?

To find the best affordable car insurance from top-rated companies, it’s recommended to shop around and compare quotes from multiple insurers.

By comparing quotes, you can identify companies that offer competitive rates while still maintaining a good reputation and quality coverage. Utilizing online tools and entering your ZIP code can help you access free quote comparisons.

Why is it important to select a good auto insurance company?

Selecting a good auto insurance company is crucial because it ensures that you’ll receive reliable support in the event of an accident or claim. A reputable company will handle your claims efficiently and provide the necessary financial assistance. This gives you peace of mind knowing that you’re protected by a reliable insurer.

What should you consider when selecting an insurance company?

The best auto insurance companies are characterized by high ratings from consumer rating institutions, strong financial health, and the ability to handle even the most expensive claims. These companies prioritize customer satisfaction and have a track record of providing excellent coverage and support to policyholders.

How can I get the best car insurance coverage?

 

To get the best coverage at an affordable price, it’s important to shop around and compare quotes from different top-rated auto insurance companies.

By doing so, you can identify the companies that offer the coverage you need at competitive rates. Remember that the more quotes you compare, the better chances you have of finding a cost-effective option that meets your insurance needs.

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