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Best Car Insurance Companies

If you’ve ever wondered “why do I need car insurance?” the answer is twofold. Not only is it legally required in 48 states (Virginia and New Hampshire are exempt), but it’s smart. It’s smart because can it save you a lot of money and stress if you hit someone, injuring them and damaging their vehicle and yours.It can also save you money and stress if someone else hits you, whether they are insured or not.

What Are The Different Types of Car Insurance?

There are many different types of car insurance, so do your research to see what is best car insurance for you. The three primary types of coverage are collision insurance, liability insurance, and comprehensive insurance.

  • Liability insurance protects other people and their property from damage you may cause. This form of car insurance is mandatory in most states and covers both property damage and medical payments.
  • Collision insurance protects your car regardless of who was at fault in an accident. It covers your car should you be involved in an accident or hit a stationary object.
  • Comprehension insurance protects your car if it’s damaged in an event other than a collision with another vehicle. It also protects your car should damage occur when no one is driving it, such as when it’s parked in your driveway or a parking lot.

In addition to the above, many car insurance providers provide add-ons including medical payments coverage, uninsured/underinsured motorist coverage, rental car reimbursement, and much more.

What Should You Look At When Selecting An Auto Insurance Provider?

Price

When selecting a car insurance provider, there are a lot of factors to consider, and the best car insurance for you may not be for everyone. Price is obviously a major contender, but varies depending on factors including:

  • Age
  • Individual state laws
  • Driving history
  • Your location
  • Gaps in insurance coverage
  • The make and model of your car
  • Your annual mileage

Age is one of the biggest factors, as most car insurance companies charge higher rates for teen drivers. We recommend getting quotes from several different insurance providers to determine which is right for you.

Discounts

Many car insurance companies provide discounts for good driving, policy bundling, smart students, paperless statements, and more. Once you have an idea of the base rate, make sure to research what discounts each policy provides to see if you can lower your monthly premium. This can be done online, or by talking to a representative.

Financial Rating

Financial security is important for an insurance company as it indicates how well a company can pay claims. You’ll want to look at what rate companies such as S&P, A.M. Best, Moody’s and give each insurance provider. The best car insurance companies will have A and higher ratings. 

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Top 5 Car Insurance Companies

USAA was founded in 1922 and is the fifth largest auto insurer, with 11.9 million members. It differentiates from other insurance companies by exclusively covering active and former military members and their families. Additional highlights include:

  • Competitive pricing, lower than most competitors (particularly for young drivers)
  • Bundle discount: get up to 10% off your homeowners or renters insurance premium when you add auto insurance.
  • Flexible payment plans
  • Accident forgiveness is free after five years if your household has not had any at-fault accidents.

 

Allstate insurance is one of the largest insurance providers in the US and serves over 16 million American households. Many recognize the company by its catchy slogan, “Are you in good hands?” Highlights include: 

  • Competitive pricing
  • Accident forgiveness add-on package prevents your premiums from going up as a result of accident
  • Easy to use mobile app rewards you for good driving, and enables you to quickly film claims

 

Liberty Mutual Insurance Group is a diversified insurance provider based in Boston, MA. Founded in 1912, it provides property insurance, auto insurance, life insurance, pet insurance, and several other smaller lines of insurance such as identity theft, small business, and more. Highlights include: 

  • Minimum coverage policies are cheaper than most competitors
  • Optional accident forgiveness add-on package prevents your premiums from going up as a result of accident
  • Teachers’ Auto Insurance package offers free add-on benefits for teachers

 

Progressive car insurance is a multi-disciplinary insurance company founded in 1937 and headquartered in Mayfield Village, Ohio. Best known for its car insurance, it also provides life insurance, health insurance, travel insurance, and more. It is the third largest auto insurance provider in the US, serving 17 million people. Highlights include: 

  • Competitive pricing
  • Large and small accident forgiveness
  • Discounts such as safe driver, sign online, multi car, good student, and more

Metromile is a relatively new auto insurance company, founded in California in 2011. Geared towards city-dwellers and infrequent drivers, it offers pay-per-mile car insurance. While other car insurance providers offer discounts for those who drive less than 10,000 miles per year, Metromile considers these drivers its bread and butter. Highlights include: 

  • Only available in 8 states
  • Monthly rates starting at $29
  • 24/7 customer service