The 10 Best Car Insurance Companies of August 2022

Our top five picks for the best car insurance are USAA, Geico, State Farm, Progressive and Travelers.

#1 USAA: Low Rates for Military

Average cost: $ Number of discounts: 12 Usage-based insurance: SafePilotTM in 37 states

USAA is our first choice for the best car insurance in the nation. It regularly tops J.D. Power auto insurance studies as one of the best providers in terms of customer satisfaction and value. The company is well known for its high customer ratings and affordable coverage options, including accident forgiveness. However, it has strict eligibility requirements and not everyone qualifies for coverage.

USAA auto insurance is only available to military members, veterans and their families, which greatly restricts who can purchase coverage. If you are eligible for a USAA insurance policy, it’s one of the best options available. Beyond the standard types of car insurance, USAA offers the following optional coverage:

• Roadside assistance
• Rental car reimbursement
• Accident forgiveness
• Glass coverage
• Guaranteed asset protection (GAP insurance)
• Car replacement assistance (CRA)
• Rideshare insurance

USAA received an A++ financial strength rating from AM Best and an A+ rating from the Better Business Bureau (BBB). The auto insurer made up 6.01% of the market share in 2021, according to the NAIC. Though it’s not the largest auto insurer, USAA still has reputable financial strength. In 2021, the company wrote $15.73 billion in private passenger auto insurance premiums.

While USAA does not have many physical locations, policyholders are still impressed by the company’s customer service. USAA earned the top score in the J.D. Power 2022 U.S. Auto Insurance StudySM in every U.S. region except California, though it’s unranked due to its eligibility criteria. And in our January 2022 car insurance survey, nearly 65% of the 107 respondents who had coverage through USAA said they were very satisfied with USAA insurance, the highest of any provider.

USAA is known for its affordability as well. It offers the cheapest car insurance on average compared to any other provider we researched. Our rate estimates show good drivers pay about $1,054 per year on average for full coverage car insurance with USAA. The company also offers discounts based on driver safety, multiple policies (like bundling auto and home insurance), safety features such as airbags and more.

You can find out more about the insurer in our USAA insurance review.

#2 Geico: Editor’s Choice

Average cost: $$ Number of discounts: 16 Usage-based insurance: DriveEasy in 28 states

If you don’t qualify for USAA insurance coverage, Geico is worth considering as your top choice. The company offers reputable service, a wide selection of coverage and cheap car insurance rates, according to our rate estimates.

Besides the standard coverage options, Geico offers helpful add-ons such as:

• Emergency roadside assistance
• Rental car reimbursement
• Mechanical breakdown insurance (MBI)
• Rideshare insurance

Geico received an A++ (Superior) rating from AM Best, meaning the company has the financial backing to pay customers’ insurance claims. A larger auto insurer like Geico comes with more financial stability compared to a smaller, local company.

Geico also has a strong customer service reputation. According to the J.D. Power Auto Insurance Study, Geico performed better than average in every region except the Mid-Atlantic, Southwest and Texas. The study surveyed customers on their satisfaction with claims, billing, price, policy and more. Additionally, our January 2022 insurance survey that polled 1,000 respondents found nearly 12% chose Geico as their insurance provider.

Regarding cost, Geico’s rates are some of the most affordable we’ve seen. Our rate estimates show that drivers pay about $1,308 per year on average for full coverage car insurance from Geico. These rate estimates apply to 35-year-olds with good credit and driving records. Our estimates put Geico in the top three companies for affordability compared to other national providers.

On top of that, the insurer offers a number of ways to save money, including a good driver discount (up to 26% off), a good student discount (up to 15% off) and a multi-vehicle discount (up to 25% off).

You can learn more about the company in our Geico insurance review.

#3 State Farm: Most Popular Provider

Average cost: $$ Number of discounts: 13 Usage-based insurance: Drive Safe & SaveTM (not available in California, Massachusetts and Rhode Island)

State Farm is another strong choice when it comes to finding the best auto insurance in the industry. Our January 2022 insurance survey found the insurer is the most popular provider among the 1,000 respondents surveyed, with 13% stating they purchased State Farm insurance coverage.

Beyond the standard types of coverage, State Farm offers:

• Emergency road service coverage
• Car rental and travel expenses coverage
• Rideshare driver coverage

Our cost estimates show good drivers pay an average of about $1,481 annually for full coverage insurance with State Farm. This ranks State Farm among the most affordable national providers.

As the biggest car insurance company in the country, State Farm is no stranger to claims satisfaction — the company has an A++ rating from AM Best. According to the NAIC, State Farm accounted for 15.93% of the auto insurance market share in 2021. State Farm also had fewer complaints than the industry average in 2020, though customer reviews on the BBB are mixed.

We chose State Farm as one of the nation’s best car insurance companies in part because of the usage-based and safe driving discounts it offers to young drivers. There are two discount programs available through mobile apps:

• Drive Safe & Save: State Farm tracks and rewards safe driving habits through the Drive Safe & Save mobile app. By reducing driving behaviors such as quick accelerations, hard braking and speeding, drivers can earn up to 30% off their premiums. This program is not available in California, Massachusetts or Rhode Island.
• Steer Clear®: Teens and new drivers can receive course training, mentoring, driving practice and a program certification to encourage good driving habits. After successfully completing the program, drivers get a discount on their auto insurance premium.

Other State Farm auto insurance discounts include those for good grades, safe driving, defensive driving, vehicle safety features and driving course completion. The company does not offer a military discount.

You can discover more about the company in our State Farm insurance review.

#4 Progressive: Low Rates for High-Risk Drivers

Average cost: $$ Number of discounts: 13 Usage-based insurance: Snapshot® (not available in California or North Carolina)

If you are under 21, are an elderly driver or have received a DUI/DWI, Progressive may be the best car insurance option for you. We found that Progressive tends to be one of the cheapest national providers for high-risk drivers besides USAA. Our rate estimates also show safe drivers pay about $1,611 per year for full coverage insurance with Progressive on average, which puts it just behind Geico and State Farm for affordability.

Aside from the standard types of car insurance coverage, Progressive offers:

• Roadside assistance
• Rental car reimbursement
• Loan/lease payoff
• Custom parts and equipment value
• Rideshare coverage

While Progressive has mixed customer service reviews, it scored above average in about half of the regions in the J.D. Power Auto Insurance Study. Our 2022 car insurance survey found 74% of Progressive policyholders are satisfied with their coverage. Progressive also offers strong financial stability, with an A+ rating from AM Best. The company also wrote more than $35 billion in premiums in 2021, according to the NAIC.

Our team reached out to Progressive for a comment on its negative review scores but did not receive a response.

Progressive offers auto insurance discounts as well as a few tools to help lower your rates. Using a mobile app that tracks and records your driving habits, Progressive’s Snapshot® program rewards safe driving behavior with discounts on premiums. On average, drivers who use Snapshot save $146 on their policies, according to Progressive. However, this program is not available in California or North Carolina.

Drivers interested in Progressive policies should also look into the Name Your Price® tool. The insurer will customize a variety of coverage options based on your auto insurance budget.

You can read more in our Progressive insurance review.

#5 Travelers: Most Coverage Options

Average cost: $$ Number of discounts: 12 Usage-based insurance: IntelliDrive® (available in 40 states)

Travelers can be a good auto insurance option for drivers who want extra coverage options. The insurer offers the following in addition to standard types of insurance:

• Auto loan/lease gap insurance
• Rental car coverage
• Roadside assistance
• New car replacement
• Accident forgiveness
• Rideshare coverage
• Named non-owner insurance
• Umbrella insurance

Travelers has an AM Best rating of A++ for its financial stability and ability to pay out insurance claims. The insurer’s customer service, however, has mixed reviews. In the J.D. Power Auto Insurance Study, Travelers scored below the segment average in almost every region except New York.

Our team reached out to Travelers for a comment on its negative review scores but did not receive a response.

According to our research, Travelers insurance pricing is slightly cheaper than the national average, costing $1,669 per year on average for a full coverage policy. The auto insurer offers a number of discounts, including savings for homeowners, good students and drivers who remain accident-free.

You can find out more in our complete Travelers insurance review.