Car Insurance Companies of 2024
While Travelers is the highest-rated provider overall, the best car insurance company for a specific person can vary significantly depending on one’s overall needs. In the sections below, we give you an in-depth look into each of the top auto insurance companies on our list.
Car Insurance Buying Guide
Our editorial team spent hundreds of hours combing through data to assess the landscape of the insurance industry. Through this research, we isolated the most important factors to consider when shopping for car insurance, each of which we highlight in detail in the sections below.
How To Find the Best Car Insurance for You
Being a top-rated national insurer doesn’t mean a car insurance company offers the best coverage for your needs and budget. With the amount of information drivers need to know about policies, finding the best car insurance for their situation can be tricky.
To find the best car insurance for you, follow these 10 steps:
1. Consider Your Timing
Shopping for coverage at the right time can impact the price of your policy. Since auto insurance rates change frequently, we recommend comparing your rates every six months to see if your current insurer is still the best fit for you.
If you belong to a high-risk driving category, it may benefit you more to shop around after your driver profile looks better to insurers. Improving your credit score and shopping three years after your most recent accident or violation can help you save more on car insurance premiums.
2. Know How Much Car Insurance You Need
Most states — except for New Hampshire — require drivers to carry car insurance to legally drive. Each state sets its own basic minimum requirements, but they usually include varying amounts of liability coverage. Additionally, some states require drivers to hold uninsured motorist coverage and personal injury protection (PIP) insurance.
Because minimum-liability policies only offer coverage for other parties and their property, we recommend you carry full-coverage car insurance to ensure you’re protected no matter what kind of situation occurs.
Read more: How Much Car Insurance Do I Need?
3. Consider Smaller Local Car Insurance Companies
National car insurance companies typically offer a greater number of add-on benefits and discounts and have better-known reputations. However, it’s good to compare large and regional companies in your area because you may get more unique coverages, better deals and a more personal customer experience with a smaller insurer.
4. Read Car Insurance Reviews
Once you know what’s available, it’s important to read reviews for the companies you’re considering to get a sense of the customer experience with each.
Check forums for local agencies to get a good idea of what customers think. You can also use industry resources such as studies from J.D. Power, NAIC complaints ratings and AM Best financial strength reports to understand each company’s reputation on a larger scale.
Instructor of business at Touro University, Angelo DeCandia, MBA, says drivers should also look into how easy it is to file a claim with a provider, as well as its customer service reputation and any helpful amenities, like mobile apps.
5. Know Where You Can Purchase Auto Insurance
Auto insurance companies sell coverage through a variety of channels. Understanding the benefits and drawbacks of each, which are highlighted in the table below, can play a major role in the price and personalization of your coverage:
7. Understand How Your Driving Profile Affects Rates
Your driver profile, location and external factors like market conditions can cause rates to vary greatly. Young drivers, drivers with bad credit scores and drivers from other high-risk categories (recent accident, speeding ticket or DUI) regularly pay more for auto insurance.
8. Look for Coverage Add-Ons That Fit Your Situation
Add-on coverages allow you to customize your policy in a way that best fits your needs. These can range from add-ons like roadside assistance, which can be a worthwhile investment if you break down on the road, to accident forgiveness, which won’t increase your rates after your first car accident. Each company offers a different selection of add-ons, so look into what’s available with the companies you’re considering.
When it comes to purchasing car insurance coverage and deciding on optional coverages, Elaine Luther, D.Sc., a professor of business management at Point Park University, says, “Ultimately, it requires an assessment of what you can afford and what level of risk and/or protection you are comfortable with.”
9. Check for Available Discounts
Companies offer a wide range of car insurance discounts, so look for ones that apply to your situation. For example, some providers offer better discounts for students, while others offer discounts for military and occupational affiliations.
In addition to this, Emily Goenner, an assistant professor of business communications, recommends shopping often to take advantage.
“You may qualify for new discounts or changes in company ratings, so be sure to review your policies annually,” she said.
Some of the most common car insurance discounts provide savings opportunities for members of the military, those who insure multiple vehicles, full-time students who maintain at least a “B” average and drivers who go a certain amount of time without an accident or violation.