The Best Car Insurance Companies of August 2021

We review the best car insurance companies on the market and offer industry insights to help you find the best premiums among top insurers.

Money’s Top Car Insurance Companies of 2021

Amica features one of the most robust car insurance packages, Platinum Choice Auto, which includes Advantage Points, a program where policyholders earn rewards for good driving, renewing policies and referring others. Advantage Points can also reduce or even eliminate your deductible.

Amica’s Platinum Choice also includes credit monitoring, a $5,000 rental coverage maximum and new car replacement if your totaled car is under a year old and has fewer than 15,000 miles.

Beyond Platinum Choice Auto, Amica offers extensive coverage options with which to customize your auto insurance policy, including gap coverage and glass repair without a deductible.

Basic coverage options under Amica include personal injury protection, property damage, bodily injury liability and uninsured/underinsured motorists. Other policy options include auto loan/lease gap protection, comprehensive and collision coverage, roadside assistance and rental reimbursement.

Amica’s customer satisfaction rating

While Amica isn’t as large as other national auto insurance companies, it stands out for its high overall customer satisfaction ratings. Amica ranked first in J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study for the ninth consecutive year in New England and took the title of “best overall” in 2020.

Amica auto insurance discounts:

• Bundling policies and insuring multiple vehicles
• Paperless payments, up-front premium payments and AutoPay
• Good driving habits: being claim-free for three years and taking a defensive driving course
• Young drivers: for completing a training program, students with good grades and full-time students away at school
• Having anti-theft devices, passive restraint or electronic stability features
• Loyalty discounts after two years of being insured
• Legacy discounts for drivers under 30 whose parents have been insured with Amica for at least 5 years

Amica auto insurance tools:

• Mobile app: track claims, request roadside assistance, pay bills
• Car Connection tool for comparing prices on new and used cars
• Contractor Connect gives policyholders access to a network of contractors for home remodeling

Progressive offers the most control when it comes to how much you want to pay for your auto insurance policy. It does this through its well-known Name Your Price tool, which neatly reverses the usual method of getting an insurance quote.

You only need to provide some basic information (address, vehicle make and model, owned or leased) and say how much you can spend and Progressive will show you policy options within your budget.

Coverage options with Progressive include liability coverage, comprehensive coverage, medical expenses payment, collision and uninsured/underinsured motorist. You can also add on roadside assistance and gap, rental car reimbursement, custom parts and rideshare coverage.

Progressive customer satisfaction rating

Progressive received above-average scores on J.D. Power’s 2021 U.S. Auto Insurance Customer Satisfaction Study for the states of California, New England, Texas and the North Central and Southwest regions.

Progressive auto insurance discounts:

• Combine your auto insurance policy with home, renters or life insurance
• Insure multiple vehicles
• Vehicle safety features such as anti-theft alarms
• Automatic and paperless payments
• Loyalty rewards by maintaining continuous coverage with Progressive
• Teen driver discounts: full-time students with good grades and students away from home

Progressive auto insurance tools:

• Get coverage options within your budget with the Name Your Price tool
• Car insurance calculator based on your state and personal details
• Get personalized rates with Snapshot, a usage-based insurance program (not available in California or North Carolina)
• Mobile app: view your driving status, recent trips and ways to improve your driving

State Farm offers great savings on standard policies and a selection of specialty policies few other companies in the insurance industry offer. If you own a classic automobile or a sports car, are a young driver or plan on renting a car, there’s a State Farm policy tailor-made for your car insurance needs.

If you have a young driver at home, you can take advantage of State Farm’s discounts for students with good grades or those studying away from home. There are also discounts available for those who complete a driving training program and maintain a clean driving record. For example, State Farm’s Steer Clear auto insurance program lets drivers under 25 complete a training course for a premium discount of up to 20%.

State Farm’s travel expenses coverage pays for meals, transportation (home or to your destination) and lodging if your vehicle is disabled 50+ miles from your home in an accident covered by your comprehensive or collision insurance. A return trip to pick up your car is also covered. Additional coverage options from State Farm include liability, uninsured/underinsured motorist, medical payments, roadside assistance and rideshare (if you use your car for Uber or Lyft).

State Farm customer satisfaction rating

State Farm is a nationwide car insurance provider, though it currently doesn’t market car insurance products in Massachusetts or Rhode Island. Regarding customer satisfaction, State Farm beats most top insurance carriers with above-average ratings in most regions, according to J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study. The insurer earned the top ranking for New York, the Northwest and Florida.

State Farm auto insurance discounts:

• Bundling with renters, homeowner’s or life insurance policies
• Insuring multiple vehicles
• Drive Safe & Save telematics program rewards you for good driving habits
• Defensive driving courses (in select states)
• Vehicle safety features (seatbelt, airbags on older vehicles)

State Farm auto insurance tools:

• Mobile app: manage bills, file claims, request roadside assistance, view ID cards and link your bank account to send money
• Make car reservations through Enterprise or Hertz or find a reliable auto repair shop

Farmers offers a broad range of insurance products and other ways to save on car insurance premiums. For starters, those who offer essential services — such as doctors, nurses, firefighters, teachers and police officers — are eligible for a premium reduction.

Farmers also provides multiple car and home insurance discounts for honorably discharged military members, veterans and active duty service members.

Farmers standard coverage options include liability, property damage, collision, comprehensive coverage, uninsured/underinsured motorist, medical payments and personal injury protection. Additional coverage types include rideshare, loss of use, rental reimbursement and roadside assistance. Owners and collectors of classic vehicles will also appreciate Farmers’ coverage of up to $750 on spare parts.

Farmers customer satisfaction rating

Farmers ranked slightly below the industry average in J.D. Power’s 2021 U.S. Auto Insurance Customer Satisfaction Study. However, it received an average overall score in 2020 and has an excellent A.M. Best financial strength rating.

Farmers auto insurance discounts:

• Bundling insurance policies and insuring multiple vehicles
• Student discounts for good grades and studying away from home
• Automatic, paperless and on-time payments
• Shared family car (not available in California)
• Anti-theft, anti-lock brake and passive restraint systems
• Hybrid/electric vehicles or those powered by other alternative fuels (only in California)
• Discounts for military members and other essential service professionals

Farmers auto insurance tools:

• Mobile app: chat with an agent, request roadside assistance, get a quote
• Specialty insurance options like motorcycle and boat insurance

Nationwide offers its policyholders a free annual car insurance assessment called On Your Side Review. This allows customers to make changes to their insurance policies after major life events and get applicable discounts.

The insurer offers common coverage options such as collision and comprehensive insurance, gap insurance, uninsured motorist, bodily injury liability and roadside assistance, as well as policies designed specifically for young drivers and classic car owners.

Its list of discounts is a bit more limited than those of other companies, but you can lower your monthly premiums by bundling insurance policies, setting up direct payments, driving fewer miles monthly and staying accident-free.

Nationwide customer satisfaction rating

Nationwide was among the top 10 car insurance providers in J.D Power’s 2020 U.S. Auto Claims Satisfaction Study. While it was rated slightly below average in most U.S. regions in J.D. Power’s 2021 state-by-state customer satisfaction report, the company has a 0.53 NAIC complaint index — one of the lowest among car insurers.

Nationwide auto insurance discounts:

• Save up to $646 when bundling auto and home insurance
• Vehicle safety and anti-theft devices
• Automatic and paperless billing
• Safe driver rewards for customers who go 5 years without major violations or at-fault accidents
• Complete a defensive driving course
• Good student discounts for drivers aged 16 to 24

Nationwide auto insurance tools:

• Mobile app: manage insurance policies, make payments, file and track claims, and request roadside assistance
• SmartMiles, a pay-per-mile car insurance program for low-mileage drivers
• SmartRide, a usage-based insurance program

GEICO has a reputation for being one of the most affordable car insurance companies and the second-largest provider in the U.S. Despite its size, the National Association of Insurance Commissioners recorded fewer than 300 complaints against GEICO which represent a very low 0.74 ratio.

GEICO is also one of only two companies on our list with a dedicated discount for military members. As for coverage options, GEICO offers medical payments, personal injury protection, uninsured/underinsured motorist, collision and comprehensive coverage. Add-ons include roadside assistance, rental reimbursement and mechanical breakdown insurance products. The latter can cover repairs after your new car warranty expires.

GEICO’s customer satisfaction rating

GEICO received a rating of 871 on J.D. Power’s 2020 U.S. Auto Claims Satisfaction Study, just one point below the industry average. It also received above-average ratings for California, New England and the Central region in the latest iteration of the study. As the second-largest auto insurer by market share, GEICO has a surprisingly low number of complaints regarding private passenger auto insurance as reported by the NAIC. This last point, coupled with its competitive car insurance rates, makes GEICO one of our top picks for auto insurance.

GEICO auto insurance discounts:

• Equipment discounts for new cars, airbags, anti-lock brakes, anti-theft systems and others
• Being accident-free for five years
• Using a seatbelt, taking defensive driving or driver’s education courses and being a good student
• Affiliation discounts for military members and federal employees
• Insuring multiple vehicles and having multiple policies
• Senior driver discounts for drivers over 50

GEICO auto insurance tools:

• Mobile app: access ID cards, pay bills and request roadside assistance or customer support 24/7
• DriveEasy telematics program rewards safe driving behavior
• Car insurance coverage calculator

Allstate’s telematics program, Drivewise, offers policyholders a chance to get cashback every six months by driving safely, plus get an additional reward for signing up. Allstate also offers Milewise, a pay-per-mile insurance option that could help infrequent drivers and those who only travel short distances save from 20% to 70% on premiums.

Allstate also has high social media responsiveness on platforms like Twitter, replying directly to users on weekends. Additionally, the company’s website provides easy-to-use tools to help customers understand their policy and determine how much coverage they need.

Coverage options with Allstate include collision, comprehensive, liability and medical payments, uninsured motorist, sound systems, roadside assistance, personal injury protection, rental reimbursement and extended umbrella coverage.

Allstate’s customer satisfaction rating

Allstate received an above-average rating on J.D. Power’s 2020 U.S. Auto Claims Satisfaction Study and was the second-best insurer in the Florida region in the 2021 study. While it has received slightly above the median share of complaints about private passenger auto based on NAIC data, the company offers some great educational tools and resources as well as two highly-rated usage-based insurance programs.

Allstate auto insurance discounts:

• Vehicle equipment discounts for new cars, anti-lock brakes and anti-theft devices
• Multiple policies
• Safe driving
• Singing your policy 7 days before it becomes effective
• Not missing any payments for a year
• Discount for students with good grades, those who study away from home and complete a driver’s education program
• Automatic payments, full payments and paperless billing

Allstate auto insurance tools:

• Mobile app: access ID cards, pay bills, report claims, request roadside assistance and accident support
• Drivewise, a usage-based insurance program
• Milewise, a pay-per-mile car insurance program
• Bumper-to-Bumper Basics, a tool for selecting the right coverage limits and deductible

Other auto insurance companies we considered

We evaluated insurance companies based on their financial strength, discounts, technology and customer experience. The following insurers were close runners-up.

Like other insurers, Liberty Mutual offers various discounts. Unlike others, however, it doesn’t limit the number of discounts you may be eligible for, a feature that could reduce your premium substantially. The company’s website also has a coverage calculator that can help you determine the right level of protection for your vehicle.

Discounts available with Liberty Mutual include: bundling policies, multiple cars, homeownership, military, good student, student-away-at school, paying-in-full, going paperless, driving safely and many more.

Liberty Mutual’s coverage options start with the basics: medical expense payments, uninsured motorist, personal injury protection, liability coverage, collision and comprehensive. Other available coverage options are roadside assistance, gap coverage, rental reimbursement and insurance for teachers who store valuable supplies in their car.

Travelers can give you a quote in five minutes or less; you don’t even have to provide a driver’s license number. If you request your auto insurance quote while you’re still insured with another company, you’ll receive up to a 10% discount.

To learn more about Travelers insurance products, policyholders must connect with an insurance representative or independent agent. Should you have to report an accident, the insurer has over 12,000 claims professionals nationwide available 24/7.

Travelers’ list of coverage options includes liability, collision, comprehensive, personal injury protection and medical expenses. It also offers additional coverage options like loan/lease gap coverage, rental reimbursement, accident forgiveness, new car replacement and roadside assistance. Rideshare coverage for Uber or Lyft drivers is only available in Colorado and Illinois.

QuoteWizard is a great place to compare car insurance quotes from different providers without having to do all the legwork. As a marketplace, it allows prospective customers to compare auto insurance rates and double-check coverage details before committing to one insurer.

Keep in mind that average car insurance rates as advertised by QuoteWizard will vary depending on the coverage options you select. Also, make sure to verify that your coverage limits comply with the minimum liability coverage requirements in your state.

Auto insurance guide

Auto insurance is a form of financial protection against theft, collisions and liability. It’s regulated at the state level, so your policy’s minimum liability limits will depend on local laws.

All states, with the exception of New Hampshire and Virginia, require drivers to buy car insurance or pay some sort of fee if uninsured.

Types of car insurance coverage

There are six common car insurance coverage options:

1. Liability insurance: this includes property damage liability, which covers legal fees and the cost of repairs to someone else’s vehicle or property after an at-fault accident, and bodily injury liability, which covers medical expenses to others stemming from an at-fault accident. Both of these are required in most states and don’t carry a deductible.
2. Uninsured/underinsured motorist coverage: covers medical bills and repairs if you’re in an accident caused by another driver who has little or no insurance. This type of coverage is required in some states and may carry a deductible.
3. Comprehensive coverage: covers repairs if your vehicle is damaged by something other than another vehicle (hail, fire, floods, theft or vandalism). This coverage is optional in all states and carries a deductible.
4. Collision coverage: covers vehicle repair costs if you’re involved in a car accident, regardless of who is at fault. This coverage is optional in all states and carries a deductible.
5. Medical payments coverage: covers medical expenses if you or your passengers are injured in an accident. This coverage, also known as MedPay, is required in some states and does not carry a deductible.
6. Personal injury protection (PIP): covers medical bills, loss of wages and funeral costs for you or your passengers if you’re in an accident, regardless of who is at fault. This coverage is also known as no-fault insurance. This coverage is required in some states and may carry a deductible.

Consider optional insurance riders if you need additional coverage such as roadside assistance, glass replacement and rental reimbursement.

Other insurance products, such as umbrella insurance, can expand the liability protection your auto and homeowners insurance policies offer. However, keep in mind that, as a liability policy, umbrella insurance is limited to certain types of claims.

What determines your auto insurance premium?

While your driving record and the type of car you drive influence your premium, there are other factors that affect what you pay for car insurance, including:

Car usage

If you don’t drive often, there are fewer chances you’ll be involved in an accident. The opposite is also true.

Place of residence

Where you live influences your car insurance premium. Generally, urban areas have higher vehicle theft and vandalism rates compared to rural neighborhoods.

Age

Inexperienced drivers below the age of 25 usually pay higher premiums.

Gender

Statistically speaking, women are involved in fewer car accidents than men.

Factors that drive premiums up

Your car insurance costs will depend on the following:

• Marital status: married drivers are considered safer and more financially stable than single drivers.
• Commute: longer commutes increase your risk of being in an accident.
• Homeowner status: homeowners are considered more financially stable than renters.
• Owning luxury or sports vehicles: these types of cars cost more to repair or replace, have higher vehicle theft rates and lots of horsepower, which increases risk in the event of a collision.
• Accidents or tickets: these can run up your payments for three years or longer, on top of legal costs and fees. The worse the offense, the higher the increase. Not wearing a seat belt could result in a 5.8% increase, while a DUI will increase your premiums up to 71%.
• Type of insurance: your coverage limit and deductible can drive up the cost of your premium. Comprehensive auto insurance policies can often be several hundred dollars more expensive than a bare-bones plan.

Does your credit score increase your car insurance premium?

According to the Insurance Information Institute, many insurers use credit-based insurance scores — which are also based on your credit history but are different from credit scores — to price policies more accurately.

Statistical data reveals that drivers with poor credit are more likely to file insurance claims than drivers with good credit.

Some states, including California, Massachusetts, Michigan and Hawaii, have laws that prohibit or limit insurers from using your credit-based score information to determine car insurance rates.

How to save money on auto insurance

1. Bundle insurance policies

On average, bundling can save you 8% on your combined premiums. Drivers typically combine their car insurance with their homeowners or renters insurance policy.

Consider one of our best homeowners insurance providers if you’re looking to bundle auto and home.

2. Increase your deductible

The deductible is the amount you will pay out of pocket in the event of a collision before the insurance company pays the rest.

Increasing your deductible can reduce your premium payments because you’re assuming more of the financial responsibility for a covered claim. This may be a worthwhile gamble for infrequent drivers.

3. Review your policy regularly

Reassessing your current policy yearly before renewal can ensure you’re getting the type and level of coverage you need and can afford.

4. Apply for discounts

Companies offer discounts to policyholders that maintain a clean driving record and drive vehicles with good safety features. Most companies also offer discounts to young drivers and good students.

Although discounts vary from one lender to the next, they often include:

• Bundling policies with the same company
• Insuring multiple vehicles
• Taking a drivers education course
• Automatic and paperless payments
• Offering a higher deductible
• Maintaining continuous car insurance coverage
• Safe driving
• Student driver with good grades
• Low annual mileage
• Students away at college
• Vehicle safety features

5. Reduce coverage on old cars

You can reduce your premium by dropping collision or comprehensive coverage on older vehicles (at least a decade old).

Similarly, you might consider dropping collision coverage on vehicles you don’t use or have in storage.

Talk to an insurance agent to determine if reducing your coverage is the right option.

6. Consider usage-based insurance

Usage-based insurance options take into account your actual driving habits to calculate your premium. There are different iterations of this, the most common being pay-per-mile and pay-how-you-drive.

Pay-per-mile insurance can help infrequent drivers or those who travel short distances save from 20% to 40% on premiums. Pay-how-you-drive insurance could help good drivers save up to 40% on premiums plus earn an additional discount for signing up.

Keep in mind, however, that usage-based insurance options that measure how fast you drive, how quickly you turn and how abruptly you break could end up costing you more if you don’t practice safe driving habits.

7. Shop for rates

Shopping around and comparing at least three price quotes from different insurance providers can help you get the lowest possible car insurance rate.

You can get rate quotes directly from insurance companies either online or over the phone. Some state insurance commissioners also provide information on average car insurance prices.

Besides average rates, take into account available discounts, coverage limits and deductible options when shopping for coverage. If you don’t know where to start, an independent insurance agent or broker could help you narrow down your options.

Read our guide to the best cheap car insurance companies for more ways to save on auto policies.

How we chose the best car insurance companies

To find the best car insurance companies in the nation, we vetted a total of 23 insurers featured on the NAIC’s 2020 Property/Casualty Market Share report for Private Passenger Auto as well as J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study.

To narrow down our list, we took into account data on market share and number of complaints filed against each company for private passenger auto insurance with the National Association of Insurance Commissioners (NAIC).

Since state laws require minimum liability coverage and most car insurance providers offer the same types of coverages across the board, we also prioritized nationwide auto insurers with superior financial strength, ample discounts, technology integration in the form of telematics programs and above-average customer satisfaction scores.

When an insurer goes bankrupt, it typically sells its existing policies to other insurance companies. While this may not affect the status of a claim, it can substantially delay the process. Knowing that your car insurer is financially stable enough to pay out your claims when you need it can add to your peace of mind.

We relied on A.M. Best ratings to verify the financial strength of our top car insurers. We also used the NAIC’s 2020 Property/Casualty Market Share report for Private Passenger Auto to evaluate each company’s reach.

Since insurance marketplaces don’t underwrite their own insurance policies or have financial strength ratings, we recommend looking into the ratings of the insurers with which they’re partnering.

Auto insurance policies beyond basic liability can be costly depending on where you live and your personal information. Discounts could help you get the coverage you need without breaking the bank.

This is especially true for higher-risk individuals such as young drivers, but there are plenty of other discounts available for those who drive safely, don’t drive often and want to bundle their auto and homeowners insurance policies.

We favored companies that offered a wide range of savings opportunities that could result in lower premiums for drivers.

More and more, car insurance companies are employing the use of new technologies to remain relevant in an ever-changing industry while providing better services.

Most of the companies on our list use automation to provide quotes in a matter of minutes and process claims 24/7 either online or through mobile apps.

Telematics is also playing an increasingly important role in car insurance, with drivers often getting upfront premium discounts if they opt for a usage-based insurance policy.

Car insurance companies that use these technologies ranked higher on our list.

Filing a claim can be a hassle. To help you minimize stressful situations, we carefully considered companies based customer satisfaction ratings as reported on J.D. Power’s 2021 U.S. Auto Claims Satisfaction Study.

The ways in which an insurer offers support are also telling of their dedication to customer experience. With that in mind, we looked into the different platforms through which car insurance companies offer assistance — via phone, email or mobile apps — and at social media responsiveness after business hours and during weekends.

Accidents are unexpected, so being insured with a company that’s available around the clock could add to customers’ peace of mind. We ranked these companies highly.

Summary of Money’s Best Car Insurance of August 2021