7 Best Car Insurance Companies of 2022 Guide
If you have a car, auto insurance is a necessity regardless if you own, lease, or finance.
Not only is auto insurance required in most states, but it is a great way to protect one of your most significant investments.
There are many auto insurance companies claiming to be the best.
With all the various aspects of auto insurance, how do you know which one to choose?
We compared the best car insurance companies with excellent customer satisfaction ratings and low price points. Plus, they offer coverage options suited to your needs with affordable rates, technology, and discounts.
Best Car Insurance Companies of 2022
- Liberty Mutual: Best Car Insurance for the New Insurance Buyer
- Allstate: Best Car Insurance for Rideshare Drivers
- Progressive: Best Car Insurance for Discounts
- State Farm: Best Car Insurance for Bundling
- GEICO: Best Car Insurance for the Cheapest Rates
- Nationwide: Best Car Insurance for Accident Forgiveness
- Farmers: Best Car Insurance for Add-On Options
Liberty Mutual: Best Auto Insurance for the New Insurance Buyer
As a new insurance buyer, you may need some additional hand-holding before purchasing your first policy.
Especially as it relates to what coverage is best for your needs, Liberty Mutual is the best auto insurance company in these cases.
Before even getting a quote, Liberty Mutual allows you to utilize their coverage calculator.
This calculator will ask you a series of questions regarding where you live, the ownership status and age of your car, as well as what type of coverage is most important to you.
Based on the responses, Liberty Mutual will curate a list of coverages and options they would recommend.
This is a huge benefit for inexperienced shoppers who rely on the expertise of an insurance agent but want the option of self-insurance on an easy-to-use platform.
Their website also explains each coverage individually with real-life examples for better understanding.
For all these reasons, as well as the amazing coverage offered by Liberty Mutual, including their Better Car Replacement option, we recommend them as the best auto insurer for the new insurance shopper.
|J.D. Power (out of 1,000)||818|
|A.M. Best - Financial Strength Rating||A|
|NAIC Complaint Index||1.80|
Liberty Mutual Auto Insurance Pros & Cons
- Easy to navigate website with explanations of coverage.
- Coverage calculator makes recommendations on what is needed.
- Many other companies do not offer better car replacement coverage.
- Their claim satisfaction is lower than average
- Better car replacement is not offered for every car
Allstate: Best Auto Insurance for Rideshare Drivers
If you drive for Uber or Lyft, you might be out of luck regarding coverage with your typical auto insurer.
Most companies will exclude “livery,” including transporting people or goods for a fee.
Allstate offers an add-on endorsement in particular states that will cover you when driving for a ride-share company.
This endorsement is offered in addition to the other coverages you need to protect your car.
Their website is easy to navigate, and you can obtain a quote within minutes.
Customers love that their rates are lower than average for great drivers, and they also offer accident forgiveness.
Allstate Car Insurance Pros & Cons
- Rideshare endorsement is offered.
- Accident forgiveness.
- Lower rates than average for good drivers.
- The rideshare endorsement is not offered in all states.
- Lower customer satisfaction ratings than other companies.
|J.D. Power (out of 1,000)||826|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||4.04|
State Farm: Best Auto Insurance for Bundling
If you have multiple insurance policies and are looking to consolidate, State Farm is the carrier for you.
With auto, home, renters, and umbrella insurance offerings, you can get any policy you need through State Farm.
Customers can save an average of 17% by bundling both auto and home policies, which can be a significant saving.
Bundling also simplifies your finances by consolidating both policies onto a single bill, so you do not need to worry about multiple statements or due dates.
They also offer a multi-auto discount for combining multiple cars onto a single auto policy.
State Farm Auto Insurance Pros & Cons
- Discounts are offered for bundling multiple policies.
- Bundling generates a single bill for each policy.
- Coverage is not offered in every state.
- Policies can only be purchased through an agent.
|J.D. Power (out of 1,000)||814|
|A.M. Best - Financial Strength Rating||A++|
|NAIC Complaint Index||4.29|
Progressive: Best Auto Insurance For Discounts
Progressive car insurance is probably best known for its colorful TV spokesperson--Flo, and its Name Your Price tool, which is a convenient option for consumers who need to stick to a particular budget.
Progressive also boasts some transparency as you can compare their rates to other companies on their website, so customers can decide which rates are best for themselves.
However, many people might not know that Progressive offers some of the lowest rates and a plethora of discounts potential customers might qualify for.
These discounts include:
- Bundling discount
- Teen driver discount
- Homeowners discount
- Discount for getting a quote online
- Autopay discount
- Safe driver's discount
- Good student discount (a discount if a student who is added to your policy maintains a B average)
Some of these discounts and add-on policies can vary from state to state so it's important to check which one is available to you in your state before you sign up.
The discounts are geared towards homeowners, parents, and those who like doing everything online.
Progressive Car Insurance Pros & Cons
- Plenty of discount opportunities.
- Young driver-friendly.
- Lots of bundling options.
- Car-related pet injuries are covered in most states with collision coverage.
- Slightly longer than average claims processing.
- Customer complaints is slightly higher than average.
|J.D. Power (out of 1,000)||803|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||2.24|
GEICO: Best Auto Insurance for the Cheapest Rates
GEICO is a well-known player in the auto insurance space, and for a good reason.
Customers love that their prices are affordable, and their quotes are easy to obtain on their website.
In fact, GEICO offers the lowest rates when it comes to auto insurance. That's saying a lot because there are a lot of car insurance companies to choose from.
However, paying the cheapest premiums does not mean you're going to get less or worse coverage.
GEICO provides good standard coverage for all major areas, such as property coverage, liability, and medical, and offers more or less coverage and deductibles.
Bundling is also a good idea with GEICO, which offers policies for other vehicles such as boats and motorcycles and homeowners and renters insurance.
A great perk is free accident forgiveness, but you do need a clean driving record for at least five years to qualify.
GEICO Car Insurance Pros & Cons
- Prices are the most competitive against other companies.
- Can access policy information using Google Assistant or Alexa.
- Their coverage options are limited.
- Not much of a local presence.
|J.D. Power (out of 1,000)||824|
|A.M. Best - Financial Strength Rating||A++|
Nationwide: Best Auto Insurance For Accident Forgiveness
Accident forgiveness is not an uncommon concept when it comes to auto insurance.
With well over 50,000 car accidents a year in the U.S., many drivers don't want to see their rates increase dramatically, especially from a small incident.
Accident forgiveness helps policyholders avoid higher rates by "purchasing" the protection for less than the amount your rate would increase.
However, not all accident forgiveness policies are created equal.
Most car insurance companies will not let you buy into accident forgiveness without a clean driving record of 5 years.
Nationwide qualifies drivers with a clean driving record of 3 years and the annual cost of accident forgiveness is very low, especially compared to how much your premium might go up if you get into an accident without this coverage.
They do make a distinction between a minor accident and a large accident, so it's something to consider when choosing the type of accident forgiveness you plan on paying for.
In addition to great accident forgiveness coverage, you might also qualify for a good driving discount, a vanishing deductible, and other useful add-ons, such as low-cost add-ons for teen drivers.
However, it's important to note that only one accident claim can be forgiven per household.
Nationwide Car Insurance Pros & Cons
- Affordable and lower than national average rates.
- Offers bundling, discounts, and good add-ons.
- Clean driving record only needs to be for 3 years to qualify for accident forgiveness.
- Slightly higher than average customer complaints.
- No coverage for rideshares.
|J.D. Power (out of 1,000)||787|
|A.M. Best - Financial Strength Rating||A+|
|NAIC Complaint Index||2.37|
Farmers: Best Car Insurance For Add-On Options
While having comprehensive coverage is definitely a step up from just having collision coverage, sometimes you need extra coverage for the other what-ifs you haven't yet considered.
Farmers, one of the nation's top insurance companies allows numerous additional coverage options. Furthermore, Farmers allows you to choose the parts of coverage you want and what you don't want--a la carte.
Farmer's standard policy comes with the usual coverage which includes, collision, comprehensive damage or loss, liability, uninsured/underinsured motorist coverage (in case the other driver doesn't have insurance or enough coverage), and medical. Details of coverage may vary from state to state but this is the basic gist.
You can also opt to add on:
- Rideshare coverage: Additional coverage for drivers driving for rideshare companies.
- Guaranteed Value: Pays an agreed-to value for your car in cases of total loss.
- Rental car: Reimburses you for the use of a rental in case of loss of use of your car.
- Transportation cost: Reimburses you for the use of other transportation in case of loss of use of your car.
- Personal umbrella: Additional liability coverage if you go over your standard policy's limit.
- Glass deductible buyback: Coverage for glass repair or replacement. Features a low deductible.
- Full glass coverage: Full coverage for glass with no deductible.
- New car replacement value: Pays for the full cost to replace your car.
- Towing and roadside assistance: Coverage for 24/7 roadside assistance.
- Spare parts coverage: Covers up to$750 for spare parts you like to keep on-hand.
- Original Equipment Manufacturer: Covers the cost of using original parts to replace to repair in cars 10 years and older.
These options are great for people who want to cover additional costs. However, it's also important to note that each addition will increase your premium.
Farmers does offer a number of discounts which can vary state-to-state.
Farmers Car Insurance Pros & Cons
- Solid reputation and financial stability.
- Offers many different add-on options to customize your policy.
- A lot of discounts available.
- Car insurance is available in most states.
- Some mixed reviews on customer service.
- Not available in all states.
|J.D. Power (out of 1,000)||839|
|A.M. Best - Financial Strength Rating||A|
|NAIC Complaint Index||1.19|
How We Picked and Ranked The Best Car Insurance Companies
The PropertyNest team researched the most well-known auto insurance companies to recommend our top picks.
We read customer reviews, obtained quotes, navigated websites, compared prices, and coverages, and discussed with insurance experts to ensure our recommendations were spot on.
Here are some of the factors we took into consideration when making our list:
The true test of an insurance company’s customer satisfaction is to read what its customers have to say.
We read customer reviews for top insurance companies and researched their ratings on popular sites such as JD Power, BBB, and AM Best.
The higher the customer satisfaction rating, the better each company scored to make our cut for the best auto insurer.
Does the company have a website that is easy to navigate? How difficult is it to get a quote or contact the company?
These were some of the questions we kept in mind as we researched each company to determine the best technology.
Bonus points were given to each company that had an app, allow policy changes to be made online, or integrated other forms of technology (smart assistants, for example) into their customer experience.
Since auto insurers can vary with coverages and discounts, we carefully reviewed both for each company we researched.
The companies that offered coverages not typically seen by standard insurers and had a vast array of discounts were the ones that made our list.
Last but certainly not least, we considered price and how each company fared with comparable coverage.
Since there was variation in the discounts offered by each company, we attempted to quote with similar discounts on each.
This price versus coverage/discounts scenario often worked to the advantage of the companies that offered more “bang for your buck.”
The companies able to do this made it to the top of our list.
|Company||PropertyNest||J.D. Power (out of 1,000)*||A.M. Best - Financial Strength Rating||BBB|
|CONNECT by American Family||4.5||834||A||A+|
|CSAA Insurance Group (AAA)||4.0||814||A+||A-|
*J.D. Power 2022 U.S. Auto Insurance Study (California)
What Does Car Insurance Cover?
The limits and coverages offered by auto insurance companies will vary by state.
Nonetheless, there are two main components of an auto insurance policy: liability and physical damage coverage.
The policy’s liability portion pays for any bodily injury and property damage that you cause or for which you are responsible.
Regardless of fault, it can also include medical payments for you or anyone in your car if you are injured.
The liability portion of the policy typically includes the following coverages:
This coverage can be written as a split limit, showing a certain amount per person and a larger amount per accident.
For example, coverage can be $25,000 per person or $50,000 per accident. This split amount means you have up to $25,000 in coverage per person injured and up to $50,000 in total for each accident.
This coverage provides compensation for any property you damage in an accident.
The limit selected for this coverage is the most that will be paid for each accident.
It is also important to note that the bodily injury and property damage coverages are not subject to a deductible.
A deductible is your out-of-pocket expense on an insurance policy. We will discuss deductibles more in-depth when we talk about physical damage coverage.
Some states also offer medical payments coverage, while others may offer similar coverage called Personal Injury Protection.
Depending on your state, personal injury protection coverage may be required.
Despite the name differences, this coverage is for you and anyone in your car who gets injured in an accident, regardless of fault.
This limit is typically a lot smaller than the bodily injury limit, as it can supplement any health insurance that is carried.
Another coverage that is typically offered under auto insurance is uninsured/underinsured motorist coverage.
As the name suggests, uninsured and underinsured motorist provides coverage for you if you are struck by a driver that does not have insurance at all or does not have enough insurance to cover the damages caused.
This coverage is sometimes broken down into uninsured motorist bodily injury coverage and uninsured motorist property damage coverage.
It is most often referred to with the acronyms UMBI or UMPD.
UMBI and UMPD coverage will typically match the limits you select for your bodily injury or property damage limit and match the same format.
For example, if you have split limits for bodily injury as $25,000 per person or $50,000 per accident, you will most likely carry the same for UMBI.
The physical damage portion of an auto policy is optional. The state will not require you to carry these coverages to register a car, but your bank may require it if you have a loan or lease your car.
Physical damage contains the following coverages:
This coverage covers events such as a fire, theft, vandalism, glass breakage, or hail.
It is sometimes referred to as “other than collision” coverage since it covers events besides the typical collision with another object.
The only exception to this is a collision with an animal. For example, if you hit a deer, coverage for your car repairs would be paid under comprehensive coverage.
Collision coverage is what pays for the repairs to your car if you come into contact with another car or object.
Both of these coverages will require you to select a deductible. As mentioned previously, a deductible is your out-of-pocket expense. This is the amount that you would be responsible for paying before the insurance will pay.
The higher the deductible you choose, the lower the price of the policy will be. The standard deductible is about $500, but some companies will allow you to choose as low as $250 or as high as $5,000.
What Will Car Insurance Not Cover?
As much as car insurance will cover, you also must take what it will not cover into consideration as well.
Most policies, regardless of the company, will not cover any contents inside a vehicle. For example, if your car was broken into and items were stolen, this is not something auto insurance would cover.
Auto insurance will also not cover any damage you cause intentionally, wear or tear, or mechanical failure unrelated to a covered event.
How Much Does Car Insurance Cost?
The price of your auto insurance policy will vary depending on a few different factors.
Car insurance companies will look at where you live, the type of car you drive, your driving experience, and any past claims you may have filed to determine the price of your policy.
Most companies will also offer discounts to help keep costs low. Anti-theft devices on vehicles, good student discounts, and group/affiliate discounts are some examples.
How Can I Save Money on My Car Insurance?
There are a few ways you can save money on an auto insurance policy.
The first and most obvious way is to be a careful driver. The fewer accidents or tickets you get, the lower your auto insurance will be.
Insurance companies will deem you to be a lower risk to insure if you can prove that you are a driver who is safe on the road.
Re-evaluating your coverage every few years is another great way to potentially save money on your insurance.
Once your car is paid off or hits a certain age, it may not make sense to carry physical damage anymore.
A good recommendation is to assess the value of your car and determine whether it makes financial sense for you to pay extra for comprehensive and collision coverage.
For example, if your car is only worth $3,000, you may be able to afford any repairs needed if involved in an accident.
Therefore, paying the extra premium every month for additional coverage may not be necessary.
Lastly, telematics or usage-based insurance options are becoming increasingly popular.
These policies are very attractive to good drivers, as it allows insurance companies to base your price on how you drive.
The better you drive, the lower your price becomes. Often, this occurs in real-time, and you are able to see the effect of safer driving on your bill during the current billing period rather than waiting until your next renewal.
Telematics and usage-based policies are great ways to save money on your auto insurance, especially in the short term.