Best Car Insurance Companies of 2024

What Is the Best Car Insurance Company?

Source: J.D. Power 2024 U.S. Insurance Shopping Study

1. Erie Insurance

Erie Insurance is based in Pennsylvania and offers insurance coverage in 12 states and Washington, D.C. In addition to the standard auto coverages, the carrier offers pet injury coverage, personal item coverage (usually covered by homeowners or renters insurance), auto glass repair and locksmith services.

Erie also offers coverage for motorcycles, boats, recreational vehicles (RVs), all-terrain vehicles (ATVs) and collector and classic cars.

2. AAA Southern California

AAA Southern California provides auto coverage in a handful of counties in the region. The insurer offers standard coverage options, including liability, collision, comprehensive, medical payments and uninsured motorist coverage. It also offers boat insurance.

3. American Family Insurance

Also known as AmFam, American Family Insurance is based in Wisconsin and offers auto coverage in 19 states. The carrier offers standard coverages, plus emergency roadside assistance, rental reimbursement, accident forgiveness, accidental death and dismemberment protection and gap coverage.

Other vehicles the insurer covers include motorcycles, RVs and campers, boats, ATVs and snowmobiles.

4. State Farm

Based in Illinois, State Farm offers auto coverage in 48 states and Washington, D.C.—only residents of Massachusetts and Rhode Island are ineligible for a new policy.

In addition to the standard coverages, State Farm offers emergency road coverage, car rental reimbursement and travel expenses coverage when you're more than 50 miles away from home. It also provides rideshare driver coverage for independent contractors working for rideshare services like Uber and Lyft.

The insurance carrier also covers motorcycles, boats, ATVs and off-road vehicles, RVs and camping trailers.

5. The Hartford

In partnership with AARP, The Hartford offers auto insurance policies in all 50 states. Beyond the standard types of protection, your coverage options can vary depending on where you live.

That said, potential add-ons include auto glass coverage, car towing coverage, gap insurance, rental car reimbursement and rental car insurance. In addition to common discounts, you can get up to 10% off your rate as an AARP member.

The Hartford also offers coverage for classic cars, ATVs, RVs, boats, golf carts and snowmobiles.

How to Find the Best Car Insurance for You

While these insurers get top marks for customer satisfaction, the right auto insurance provider for you will depend on several factors, such as where you live, your driving history and your vehicle.

With that in mind, here are some steps you can take to ensure you get the best coverage.

1. Determine Which Coverage Types You Need

You'll typically need to have a minimum amount of liability coverage to meet state requirements, and in some cases, you also need uninsured motorist coverage and personal injury protection.

If you financed your car, your lender may also require both collision and comprehensive coverage. Beyond that, you may consider optional coverages depending on your budget.

2. Set a Budget

Evaluate your budget to get an idea of how much you can afford to pay each month. As you evaluate your options, this can help you determine how much coverage you can afford.

As you shop around, you can adjust coverage types, amounts and deductibles to find the best balance between your budget and your peace of mind.

3. Shop Around

Take some time to get online quotes from at least three to five insurance companies to evaluate your options. As you go through the process, make sure you select the coverages and coverage levels that fit your budget so you can make an accurate comparison. Consider using a car insurance comparison service that compares rates on your behalf to help you find the best deal.

Other factors to consider as you shop around include available discounts, financial strength ratings, claims satisfaction and other features that are important to you. It can also help to pick an insurer that offers other types of coverage, potentially helping you qualify for bundling discounts.

Learn more: How to Choose the Best Car Insurance Company

Stop overpaying for insurance

1Match with new policies

Answer some questions about your current plan and get matched to personalized quotes.

2Pick the one you want

We’ll show you offers from our top insurance carriers and help you shop for better rates in the future.

3Let us do the rest

From switching your policy to canceling and requesting a partial refund on your old plan, we help you do it all.

Get started

How Does Car Insurance Work?

Car insurance provides financial protection for certain losses that are beyond your control. Both the form and extent of the protection you receive ultimately depend on the types of coverage you choose for your policy.

Types of Car Insurance

There are several different types of car insurance coverage you can include in your auto insurance policy. Here's a quick summary of the standard options:

• Liability insurance: Provides protection in the event that you cause an accident resulting in another party sustaining personal injuries or property damage. It's required in nearly all states, though some offer waiver options.
• Collision insurance: Covers the cost of repairing or replacing your vehicle if you collide with another vehicle or a stationary object, such as a pole. Collision coverage usually accompanies comprehensive insurance, both of which may be required by a lender if a vehicle is financed.
• Comprehensive insurance: Provides coverage for the cost of repairing or replacing your vehicle damaged in a non-collision event. Examples include theft, vandalism, glass and windshield damage, weather and other acts of nature, accidents with animals and fire damage.
• Uninsured motorist coverage: Offers protection in the event that you're hit by a driver who has no auto insurance coverage. It typically also includes underinsured motorist coverage, which kicks in if the other driver doesn't have sufficient coverage to pay for your injuries and vehicle damage. It's required in certain states.
• Medical payments coverage: Also called MedPay, this coverage helps pay for medical and funeral expenses, regardless of who's at fault for the collision.
• Personal injury protection: Personal injury protection, PIP for short, helps pay for medical and funeral expenses, as well as lost wages and eligible household services, regardless of who's at fault. PIP is required in certain states.

Depending on your insurance company, you may also have your pick of other optional coverages, such as rental car reimbursement, gap insurance, roadside assistance, glass and windshield coverage (waived comprehensive deductibles), accident forgiveness and many others.

How Much Does Car Insurance Cost?

The cost of an auto insurance policy can depend on a variety of factors, including your:

• Age
• Gender
• Marital status
• Location
• Driving record
• Vehicle's make and model
• Vehicle usage
• Claims and insurance history
• Coverage types and amounts
• Deductibles

What's more, auto insurance companies in most states may also consider your credit-based insurance score to help calculate your rate. This isn't the same as the credit score you'll see when you check your credit, but it is based on the information in your credit report—so it's important to build and maintain a good credit score to help save on rates.

Frequently Asked Questions

Save Time Comparing Auto Insurance With Experian

While shopping around for car insurance is one of the best ways to save money, the process can be time-consuming if you request quotes from each insurer individually.

To save time, consider comparing car insurance quotes with Experian, which can provide quotes from more than 40 top insurers. You can also get notifications when rates drop in your area and learn more about the factors that are influencing your rates.