Best Car Insurance Companies Of February 2023

Car insurance is more than just a legal requirement in many countries; it is a crucial financial safeguard that protects you, your vehicle, and others on the road. From fender benders to major collisions, accidents can happen unexpectedly and may lead to significant expenses. Having the right car insurance coverage can provide peace of mind and ensure you are financially prepared for any unforeseen circumstances on the road.

Legal Requirement and Financial Protection
In numerous countries, having car insurance is mandatory for all drivers. This requirement is put in place to protect everyone on the road from potential financial losses resulting from accidents. With the rising cost of medical care, vehicle repairs, and property damage, car insurance helps cover these expenses so that you're not left with a hefty bill to pay out of pocket.

Coverage Options to Suit Your Needs
Car insurance policies offer various coverage options tailored to meet the diverse needs of drivers. From basic liability insurance that covers damages to others in an accident you cause, to comprehensive coverage that protects your vehicle from non-collision incidents like theft, vandalism, or natural disasters - you can choose the level of protection that suits your requirements and budget.

Safeguarding Your Investment
For most people, a car is a significant investment. Car insurance helps safeguard this investment by providing financial assistance for repairs or replacements in case of damage or theft. Without insurance, you may find yourself burdened with expenses that could take a considerable toll on your finances.

Protection Against Uninsured Drivers
Despite insurance requirements, some drivers may choose to disregard the law and drive without insurance. If you're involved in an accident with an uninsured or underinsured driver, having the right insurance coverage can ensure that you are still protected and won't be left bearing the expenses due to someone else's negligence.

Medical Coverage and Personal Injury Protection
In addition to covering property damage, many car insurance policies also offer medical coverage and personal injury protection. These provisions help cover medical expenses for you and your passengers in case of injuries sustained in an accident. Having access to proper medical care without worrying about the cost can significantly aid in the recovery process.

Peace of Mind and Reduced Stress
Driving without insurance can lead to constant stress and worry. Knowing that you have comprehensive car insurance allows you to drive with confidence, knowing that you are financially protected in the event of an accident. This peace of mind can positively impact your overall driving experience.

We evaluated auto insurers to find the best car insurance companies based on average rates for a variety of drivers, coverage features available, levels of complaints and their collision claims process. Satisfaction with car insurance companies is high right now, according to a recent Forbes Advisor survey. But many car owners still think about switching.

Not all car insurance companies are created equal. We surveyed more than 10,000 drivers to learn more about their car insurance experience, focusing on key areas like customer service, claims handling, and customer loyalty. Using that data, we rated the best car insurance companies of 2023 to help you find the best one.

Key points

USAA is No. 1 in our rating and also has the lowest average rates in our study. Its products are only available to the U.S. military community.
Geico, the company at No. 5 in our rating, has the next lowest annual premiums, on average, among companies we reviewed.
State Farm, the insurer rated No. 2 overall, has the third lowest average rates in our ranking of the 10 best car insurance companies.

What Is the Best Car Insurance Company?

usaa car insurance plan

Top Rated Car Insurance Companies

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American Family – Best for Low Level of Complaints

Auto-Owners – Best Cost for Drivers Who Have Caused an Accident
Nationwide – Good for Usage-based or Mileage-based Insurance
USAA – Best for Military Members & Veterans
Geico – Best Overall Car Insurance Rates
Travelers – Best Price for Gap Insurance
Westfield – Best Family Discounts
Erie – Best Grade from Collision Repair Professionals
Progressive – Best Price for Drivers With a DUI
State Farm – Best Renewal Discount

Best Carriers Ranked

Rank	Company	Customer Satisfaction Rating (out of 5)
1st	USAA	4.6
2nd	State Farm	4.4
3rd	GEICO	4.4
4th	Allstate	4.4
5th	Kemper	4.4
6th	Progressive	4.3
7th	Erie	4.3
8th	American Family	4.3
9th	Auto Club (AAA)	4.3
10th	Nationwide	4.3
11th	Auto-Owners	4.2
12th	Farmers	4.2
13th	Travelers	4.2
14th	Liberty Mutual	4.2
15th	National General	4.1

Customer service satisfaction

Rank	Company	Customer Satisfaction Rating (out of 5)
1st	USAA	4.6
2nd	State Farm	4.5
3rd	Allstate	4.4
4th	GEICO	4.4
5th	Progressive	4.4

Other Ratings

CAR INSURANCE COMPANY REVIEWS

Insurance company	Claims satisfaction	Customer service	Financial strength	NAIC complaint index
USAA	Excellent	Above average	Superior	Excellent
GEICO	Average	Above average	Superior	Average
Erie	Excellent	Above average	Superior	Very good
Auto-Owners	Average	Above average	Superior	Excellent
The Hartford	Excellent	Below average	Excellent	Excellent
NJM	Not rated	Above average	Superior	Excellent
Cincinnati	Not rated	Above average	Superior	Above average
Amica	Excellent	Excellent	Superior	Poor
Allstate	Average	Below average	Excellent	Excellent
AIG	Not rated	Below average	Excellent	Above average
Metromile	Not rated	Not rated	Not rated	Below average
Progressive	Below average	Below average	Superior	Excellent
Plymouth Rock	Not rated	Below average	Excellent	Above average
Travelers	Average	Below average	Superior	Above average
Bunker Hill	Not rated	Not rated	Excellent	Above average
Chubb	Not rated	Average	Superior	Excellent
Noblr	Not rated	Not rated	Not rated	Above average
PURE	Not rated	Not rated	Excellent	Above average
State Farm	Above average	Above average	Superior	Excellent
American Family	Above average	Excellent	Excellent	Average
Farmers	Excellent	Below average	Excellent	Below average
Nationwide	Average	Below average	Superior	Average
Allied	Not rated	Not rated	Superior	Above average
MAPFRE	Not rated	Not rated	Superior	Average
21st Century	Not rated	Not rated	Excellent	Below average
Elephant	Not rated	Not rated	Excellent	Below average
MetLife	Not rated	Below average	Superior	Below average
Mercury	Not rated	Below average	Superior	Above average
Liberty Mutual	Average	Below average	Superior	Average
Safeco	Average	Below average	Excellent	Below average
Kemper	Poor	Not rated	Excellent	Below average
The General	Not rated	Not rated	Excellent	Below average
Esurance	Not rated	Below average	Superior	Below average
AAA	Below average	Below average	Superior	Average
Foremost	Not rated	Not rated	Excellent	Below average
Infinity	Not rated	Not rated	Excellent	Below average
Safe Auto	Not rated	Not rated	Good	Below average
Commonwealth Casualty	Not rated	Not rated	Not rated	Above average
California Casualty	Not rated	Not rated	Good	Below average
Hallmark	Not rated	Not rated	Excellent	Average
Root	Not rated	Not rated	Not rated	Below average
Direct Auto	Not rated	Not rated	Excellent	Poor
Stonegate	Not rated	Not rated	Not rated	Above average
AssuranceAmerica	Not rated	Not rated	Not rated	Poor
Aspire General	Not rated	Not rated	Good	Below average
Founders	Not rated	Not rated	Excellent	Poor
Good2Go	Not rated	Not rated	Not rated	Poor
Falcon	Not rated	Not rated	Not rated	Poor

FAQs Question And Answer

Q1. What is car insurance, and why do I need it?
A: Car insurance is a contract between you and an insurance company that provides financial protection in case of an accident, theft, or other damages to your vehicle. It is a legal requirement in many countries to have car insurance to drive legally on public roads. Having car insurance ensures that you are financially protected from potential expenses resulting from accidents and other unforeseen incidents on the road.

Q2. What types of car insurance coverage are available?
A: There are several types of car insurance coverage options to choose from:

A) Liability Coverage: This covers damages and injuries you may cause to others in an accident you are at fault for.

B) Collision Coverage: This covers the cost of repairing or replacing your vehicle in case of an accident, regardless of fault.

C) Comprehensive Coverage: This covers damages to your vehicle from non-collision incidents like theft, vandalism, fire, or natural disasters.

D) Uninsured/Underinsured Motorist Coverage: This protects you if you are involved in an accident with a driver who has little or no insurance.

E) Medical Payments Coverage/Personal Injury Protection (PIP): This covers medical expenses for you and your passengers in case of injuries from an accident.

Q3. How is my car insurance premium determined?
A: Car insurance premiums are determined based on several factors, including:
Your driving history and record
Your age, gender, and marital status
The type of vehicle you drive
Your location and where the car will be parked
The coverage options you choose
Your deductible amount
Generally, drivers with a clean driving record and lower-risk profiles may receive lower premiums.

Q4. Can I get car insurance with a bad driving record?
A: Yes, even if you have a less-than-perfect driving record, you can still get car insurance. However, you may be considered a higher risk, leading to higher premium rates. Some insurance companies specialize in providing coverage to high-risk drivers, so it's essential to shop around and compare quotes to find the best option for your situation.

Q5. Can I transfer my car insurance to a new vehicle?
A: Yes, you can transfer your car insurance to a new vehicle. When you purchase a new car, contact your insurance provider and provide them with the necessary information about the new vehicle. They will update your policy accordingly to cover the new vehicle.

Q6. Can I cancel my car insurance policy at any time?
A: Yes, you can cancel your car insurance policy at any time. However, it's essential to consider the consequences and potential penalties, such as early termination fees. Additionally, driving without insurance can lead to legal repercussions, so ensure you have a new policy in place before canceling the current one.

Q7. What should I do if I'm involved in a car accident?
A: If you're involved in a car accident, follow these steps:
Check for injuries and call for medical assistance if needed.
Report the accident to the police and obtain a copy of the police report.
Exchange contact and insurance information with the other driver(s) involved.
Document the scene, take pictures, and gather witness information if possible.
Notify your insurance company as soon as possible to initiate the claims process.
Always cooperate with the authorities and provide accurate information during the claims process.

Q8. Can I add additional drivers to my car insurance policy?
A: Yes, most car insurance policies allow you to add additional drivers to your policy. When adding someone, consider their driving history, as it may affect your premium rates. It's essential to disclose all household members who regularly use the insured vehicle to ensure proper coverage.

Q9. Does car insurance cover rental cars?
A: It depends on your policy. Some car insurance policies extend coverage to rental cars, while others do not. Review your policy or contact your insurance provider to determine if rental car coverage is included. If not, you may need to purchase additional coverage from the rental car agency.

Q10. Can I change my car insurance coverage at any time?
A: Yes, you can change your car insurance coverage at any time. If you want to add or remove coverage options or adjust your deductible, contact your insurance provider, and they will assist you in making the necessary changes to your policy. Keep in mind that altering your coverage may affect your premium rates.

Q11. What is a deductible, and how does it affect my car insurance?
A: A deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in to cover the rest of the expenses. For example, if you have a $500 deductible and your car sustains $2,000 in damages from an accident, you will need to pay the first $500, and your insurance will cover the remaining $1,500. Generally, higher deductibles result in lower premium rates, while lower deductibles lead to higher premiums.

Q12. Does car insurance cover stolen personal belongings from my vehicle?
A: In most cases, car insurance does not cover personal belongings stolen from your vehicle. However, your homeowner's or renter's insurance policy may provide coverage for stolen belongings, even if they were taken from your car. It's essential to review your policies and consult with your insurance providers to understand the extent of your coverage.

Q13. Can I use my car insurance if someone else borrows my car and gets into an accident?
A: Yes, your car insurance generally covers anyone you give permission to drive your vehicle. If someone borrows your car with your permission and gets into an accident, your insurance should extend coverage. However, it's essential to notify your insurance provider about the incident.

Q14. Are there ways to lower my car insurance premiums?
A: Yes, there are several ways to potentially lower your car insurance premiums:
Maintain a clean driving record and avoid traffic violations.
Bundle your car insurance with other insurance policies, like home or renter's insurance, with the same provider.
Take advantage of discounts for safe driving, good student grades, or completing a defensive driving course.
Choose a higher deductible if you can afford it, as it may reduce your premium rates.
Drive a vehicle with advanced safety features and anti-theft devices.

Q15. Is car insurance coverage the same for leased or financed vehicles?
A: The coverage requirements for leased or financed vehicles are often more stringent than those for owned vehicles. Lease and finance agreements usually require comprehensive and collision coverage to protect the lender's investment in the vehicle. Make sure to check with your leasing or financing company to ensure you meet their insurance requirements.

Q16. What happens if I let my car insurance lapse?
A: Allowing your car insurance to lapse can have serious consequences. Driving without insurance is illegal in most places and may result in fines, license suspension, or vehicle impoundment. Additionally, if you have a lapse in coverage and then reinstate your insurance, you may be considered a higher risk, leading to higher premium rates.

Q17. Does car insurance cover natural disasters like floods or earthquakes?
A: Comprehensive car insurance typically covers damages resulting from natural disasters, such as floods, earthquakes, hurricanes, or hailstorms. However, it's essential to review your policy to confirm if these specific events are covered.

Q18. Can I transfer my car insurance to a different insurance company?
A: Yes, you can switch car insurance providers at any time. Before making the switch, compare quotes from different companies to ensure you get the best coverage and rates. When you find a new policy that suits your needs, notify your current insurer and follow their guidelines for canceling your existing policy.

Q19. What should I do if my car is totaled in an accident?
A: If your car is deemed a total loss after an accident, your insurance company will offer you a settlement based on the actual cash value of your vehicle. This value considers factors such as age, condition, and mileage. If you believe the offered settlement is too low, you can negotiate with your insurance company or provide evidence of your car's higher value.

Q20. Does my car insurance cover me if I drive out of state or in a different country?
A: Most car insurance policies provide coverage that extends to driving within the United States and often includes limited coverage in Canada. However, coverage may vary, so it's essential to check with your insurance provider before traveling internationally or to specific regions to understand the extent of your coverage.