Guide to the Best Auto Insurance in 2023

You may know State Farm from its commercials, with stars like “Jake from State Farm” and the now-canceled Aaron Rodgers. But how much do you really know about State Farm, the most popular insurance provider in the U.S.?

There are good reasons why State Farm ranks first in number of car insurance customers. With a century of reliable service, State Farm lets you customize your policy and manage it all from a user-friendly mobile app. Throw in some discounts and you have a reliable and affordable provider.

Great Discounts

State Farm offers a ton of discounts that could apply to you. For example, you could get discounts for …

• Being accident-free. If you go three or more years without an at-fault accident or moving violation, State Farm will reward you with lower premiums.
• Driving safely. You could earn up to 30 percent off simply by being a good driver through State Farm’s Drive Safe & Save program.
• Driving a safe vehicle. If your older car has a factory-installed air bag, for example, you could save up to 40 percent on medical payments coverage or personal injury protection (PIP).

All the Coverages You’ll Need

Of course, State Farm offers the basics, like liability, medical, uninsured motorist, collision, and comprehensive coverage. But it also offers these helpful add-ons:

• Roadside assistance
• Towing/labor
• Gap insurance
• Glass coverage
• Rental car coverage
• Personal umbrella insurance
• Transportation expense coverage
• Classic car coverage
• Ride-sharing coverage

Whether you’re a classic car collector or an Uber driver, State Farm has affordable plans to meet your needs.

Bundling Options

Do you have a golf cart, motor home, RV, house, apartment, or condo? Do you need pet insurance, life insurance, or health insurance? State Farm is an all-encompassing insurance provider, and bundling your car insurance with another type of policy could unlock even more savings. Besides, having all of your insurance policies under the same provider is much more convenient.

You probably know Allstate by its slogan, “Are you in good hands?” Allstate is another popular option: 16 million customers have trusted Allstate since 1931, and with good reason.

Easy to Bundle

Allstate makes it easy to bundle your policies, whether you have homeowners or renters insurance. If you’re a homeowner, you could receive up to 25 percent off, but Allstate doesn’t leave out people with renters or condo insurance. Even if you drive a motorcycle, you can bundle your policy with your renters insurance. Work with an Allstate agent to discuss all of your bundling possibilities.

Financially Strong

Available in all of the U.S., Allstate’s nearly 100 years of business have proven it to be trustworthy. In fact, it has received an A+ rating for its financial strength from AM Best since 2017. You don’t have to worry that Allstate won’t pay your claim in a timely manner, in other words.

Great Customer Service

It’s easy to contact Allstate. You can either reach out to your local agent or contact the company directly through these channels:

• Android or iOS app
• Email
• Online help center
• Live chat
• Phone

Allstate also has some of the highest customer satisfaction ratings in the business. For example, in 2021, California customers rated it 803 out of 1,000 in terms of their overall satisfaction — one of the highest satisfaction ratings in the state.¹

If you use a car for business purposes, you need commercial rather than personal auto insurance. That limits your options, and the more cars you have, the more car insurance will cost. That’s why we like Direct Auto, one of the most affordable commercial car insurance providers. Particularly for small businesses, Direct Auto provides the coverage you need at a cost you’ll like.

Great for Cars and Trucks

Do you have a business with up to 20 vehicles? Direct Auto is an option for you, with coverage for all of these vehicle types:

• Boom trucks
• Cars
• Dump trucks
• Flatbed trucks
• Pickup trucks
• Stake body trucks
• Step vans
• Straight trucks
• SUVs
• Trailers
• Utility trucks
• Vans

Whatever combination you have, your agent will create a policy tailored to your small business’s needs.

Flexible Plans

You can customize your commercial vehicle insurance with either six- or 12-month plans, choosing from the following types of coverage:

• Collision
• Comprehensive
• Fire
• Hired auto and employer’s non-ownership liability
• Liability
• Medical payments
• Theft
• Uninsured/underinsured motorist bodily injury

You’ll be able to add an unlimited amount of “additional insureds” — the employees who drive the cars and/or trucks — with combined single limits (CSLs) up to $1 million for the coverages your state requires.

Steep Discounts

Work with your Direct Auto agent to get discounts of up to 15 percent. You could get discounts for being a new business, for example, or paying your policy in full. Direct Auto also rewards members of the military, safe drivers, seniors, and other groups with discounts.

GEICO is best known for its gecko mascot, its funny commercials, and, of course, the iconic slogan: “15 minutes will save you 15 percent on car insurance.” It’s true that GEICO has some of the lowest prices in the country, especially if you live in New York or New Jersey. If budget is top of mind for you, consider GEICO as your car insurance provider.

Low Prices

First, a disclosure: No insurance provider will be the cheapest for absolutely everybody. However, GEICO is a pretty good bet, with average annual costs of around $1,194. We’ve seen GEICO offer yearly packages for as little as $667! Expect lower prices in states like Maine and higher prices in states like Louisiana, where car insurance is more expensive in general.

Available to All

GEICO is an option for you whether you live on the U.S. mainland or in Alaska or Hawaii, and whether you’re a teen driver, an older adult, or a military member or veteran. There’s a reason why owners of 28 million vehicles chose GEICO as their insurance provider.

Many Coverages

Given GEICO’s popularity in the U.S., it’s no surprise that it offers the basics of full-coverage insurance. However, it also goes above and beyond, offering these supplemental coverages:

• Mechanical breakdown insurance
• Personal umbrella insurance
• Glass coverage
• Rental reimbursement coverage
• Accident death and dismemberment coverage
• Mexico coverage
• Classic car coverage

If you’re 50 or older, you should consider The Hartford, car insurance from the American Association of Retired Persons (AARP).

This program is for AARP members only, but you can become a member online easily. Annual costs begin at $12 for the first year and go to $16 a year from the second year on, with discounts if you sign up for multiple years. The car insurance is also affordable, saving members an average of $507 each year. We’d say that’s well worth the $12-$16 membership fee!

Post-Accident Assistance

If you get into an accident and have medical payments coverage or PIP, your insurance company will cover your medical costs, lost wages, and child care, in some cases. However, AARP goes above and beyond with services we haven’t seen from any other car insurance provider. If you’re hurt in an accident, the RecoverCare program will provide these services:

• Dog walking
• Food prep
• House cleaning
• Lawn maintenance
• Snow removal
• Transportation

In other words, you won’t have to depend on your friends and family for your basic household needs. Even if you’re injured, you can maintain your independence — an important factor for many older adults.

Accident Forgiveness

The stereotype that older adults have more car accidents isn’t true. In fact, drivers 55 and older are 85 percent less likely to be involved in car crashes compared to the national average. Accident rates are even lower for those 65 and older, according to data from the National Highway Traffic Safety Administration.

Of course, accidents can happen to anyone, but with The Hartford, once you’ve had a clean driving record for five consecutive years, your rates won’t go up after your first accident. If you’re a good driver with a solid record, The Hartford offers accident forgiveness, a great insurance feature that we haven’t seen from many other providers.

Easy Claims Process

No one enjoys making a car insurance claim, but AARP makes it as easy as possible for older adults. If you have a claim, simply call its phone line (available 24/7) to speak to a human. You’ll describe your claim, submit documentation and photos, and track your claim online whenever you want. In the meantime, you’ll benefit from AARP’s network of repair shops, glass installers, roadside assistance, and rental car partners.

If you have a leased vehicle, you’ll most likely be required to get gap insurance. If your vehicle is totaled, meaning the repair costs are higher than the car’s actual market value (AMV), gap insurance will cover the remaining amount on your auto loan. That way, you won’t have to continue paying for a totaled vehicle. If you need gap insurance, consider Liberty Mutual.

Good for Leased or Loaned Vehicles

With gap insurance, it doesn’t matter if you caused the accident or not. If your car is totaled and you owe more on it than it’s worth, gap insurance will cover the difference, so you won’t be responsible for your car’s entire AMV. However, with Liberty Mutual, you have to buy gap insurance at the same time you buy your car, and you must be the car’s first owner. It doesn’t apply to used vehicles, in other words.

Substantial Savings

While Liberty Mutual may not have the lowest average car insurance costs we’ve come across, depending on your circumstances, the savings could be significant. You can get discounts for any of the following:

• Being a military member or veteran
• Bundling your home and auto insurance (up to $947 off)
• Driving well (up to 30 percent off)
• Going paperless with your policy
• Driving an electric or hybrid vehicle
• Having multiple cars on your policy
• Making one or two annual payments rather than paying monthly

Useful Mobile Apps

When you’re driving, you probably don’t have access to your laptop or desktop computer. But what if you need to check out your next payment, request roadside assistance, show your insurance ID card, or view your policy when you’re away from your computer? Liberty Mutual has the solution with its highly rated iOS and Android apps. You can review the details of your coverage, log your driving behaviors to save money, or even file a claim right from the palm of your hand.

The United Services Automobile Association, better known as USAA, is an organization that provides insurance, banking, and investment advice for members and veterans of the U.S. military, pre-commissioned officers, and their spouses and children. If that’s you, you can benefit from getting your car insurance from USAA, where the average customer saves $725 a year. By the way, USAA membership is completely free.

Extensive Discounts

USAA has various discounts available, including these offers:

• 10 percent off for bundling home and auto
• 10 percent off if your parents also have a USAA car insurance policy
• 3 percent off for setting up automatic payments
• Up to 15 percent off for garaging your car on a military base
• Up to 60 percent off for putting your car in storage if you’re deployed
• Discounts for teen drivers who maintain good grades
• Discounts for driving fewer miles
• Discounts for having two or more vehicles on a policy

These discounts make USAA a great choice whether you’re the parent of a teen driver, deployed overseas, or the child of veteran parents.

Coverage for All Types of Vehicles

Aside from regular cars, USAA also offers insurance for these vehicles:

• ATVs
• Classic cars
• Dirt bikes
• Golf carts
• Mopeds
• Motorcycles
• Motor homes
• RVs
• Snowmobiles
• Trucks

And remember, having more than one vehicle on a policy will get you a per-vehicle discount.

Domestic and International Insurance

One of the hardest parts of being in the military is leaving your family when you’re deployed overseas. Fortunately, USAA understands that. If you have to go overseas for a permanent change of station (PCS), rather than making you cancel your policy, USAA will protect your car while you’re away, offering liability coverage, personal injury protection, and vehicle storage. USAA also offers information about moving abroad and returning to the U.S. for the following countries:

• Azores
• Belgium
• Cuba
• France
• Germany
• Greece
• Guam
• Italy
• The Netherlands
• Portugal
• Puerto Rico
• South Korea
• Spain
• U.S. Virgin Islands
• United Kingdom

Nothing can make leaving home easy. However, when you do, USAA will provide you with more support than any other insurance company on the market.

Progressive is another company known most for its mascot (Flo), but if you have a teenage driver, you should know it as one of the best options. Progressive offers a ton of discounts that apply to new drivers specifically, as well as households with multiple vehicles.

Low Average Rates

The cost of car insurance for teens is high, mainly because they have the least driving experience of any age group. Insurance companies charge higher rates to new drivers in general, whether they’re 16 or 60, as they’re more likely to get into car accidents. That’s why we recommend Progressive, which has average annual rates of $1,508 for all drivers. While its prices are higher for new drivers, the rates remain competitive.

Discounts for Teen Drivers

If you’re a parent of a teen driver, teen driver discounts are probably of interest to you. Progressive offers several types of discounts for you and your young driver.

• Good student: If your child under age 23 is a full-time student with an average grade of B or higher, you can get 10 percent off their car insurance.
• Multi-vehicle policy: You get a discount for having multiple vehicles in your household.
• Student away from home: If your child under 22 is at school at least 100 miles away and left their car at your house, you can get a discount on insurance.
• Teen driver monitoring: Progressive’s Snapshot program, its version of usage-based insurance (UBI), will reward you with discounts if you and your teen are safe drivers. Keep costs down by driving safely and less often. The Progressive app, available for iPhones and Androids alike, will monitor your driving activity, saving you money if you avoid late-night driving, hard brakes or accelerations, and distracted driving. The average discount for signing up for Snapshot is $47, while the average discount after six months is $156.

Reliable Roadside Assistance

Damages happen, whether your teen is speeding or simply runs into a pothole. But what happens if you can’t come to their side when they’re pulled over on the side of the road? Fortunately, Progressive offers 24/7 roadside assistance, which includes these services:

• Replacement of flat tire
• Fuel delivery and service
• Battery charge for electric vehicles
• Jump-starts
• Towing to a repair shop within a 15-mile radius
• Vehicle lockout assistance
• Winching if the car is trapped in sand, water, snow, or mud within 100 feet of a highway or road
• Up to one hour of on-scene labor

If your teen is planning a cross-country road trip this summer, roadside assistance is a must-have.

In most cases, full-coverage car insurance is the best option. Full coverage doesn’t only cover your financial responsibilities to the other party in accidents you cause, but also your passengers’ and your injuries as well as your car’s damages. If you want full coverage, consider Farmers, a car insurance provider that has been in business since 1928.

Many Discounts

Since full coverage is a good choice for people with relatively new cars, the discounts need to apply to a multitude of people. Fortunately, Farmers has quite the array of discounts, including these types:

• Accident-free driver
• Defensive driving course
• Good student (GPA of 3.0 or higher)
• Military
• Multi-vehicle policy
• Multi-policy customer
• New car
• Policy paid in full
• Automatic billing
• Safe driving
• Students at least 100 miles away from home
• Certain vehicle equipment
• Shared family car

Insurance on the Go

The Farmers mobile app has a 4.6-star rating on the Google Play Store and a 4.8-star rating on the App Store. You can perform any of these tasks with the app:

• Change your payment methods.
• Get quotes for other insurance policies.
• Make payments.
• Request roadside assistance.
• Start and track a claim.
• View and share your digital ID card.
• View your agent’s information, including their website, phone number, email address, and physical address.
• View your bills and payment history.
• Review your coverages, deductibles, and named insureds on any of your policies.

Bundles Available

The phrase “the more the merrier” definitely applies to Farmers, which offers home, life, business, pet, personal umbrella, and ride-share insurance as well as car insurance. Farmers customers who bundle their insurance save 20 percent on average. If you’re unsure whether bundling your car insurance under Farmers will save you money, there’s no harm to you or your credit score if you request a quote or contact an agent.

While we prefer good old-fashioned phone conversations, we understand that not everyone does. Some people prefer buying their insurance online, from choosing a policy to inputting their billing information. If that’s you, check out Esurance, the online branch of Allstate.

Easy Online Quotes

Getting a quote from Esurance took us less than five minutes, and the process was similar to taking a BuzzFeed quiz. We answered a few questions about who we are, where we live, and what vehicle we want to insure, and within a few minutes, we had not one but three quotes: minimum coverage, economy coverage, and standard coverage. We could choose to pay in full or monthly, and we chose our deductibles online as well.

If you want insurance in a jiffy, without talking to a human, Esurance provides a convenient online experience.

Backed by Allstate

While Esurance may not be one of the better-known insurance companies, Allstate owns it, so it has the advantages of a larger company with financial stability. To reiterate, Allstate has 16 million customers and has been in business since 1931, with strong ratings in financial stability and customer satisfaction. In other words, you don’t have to worry about Esurance being able to pay your claims in a timely manner.

DriveSense Discounts

Are you a good driver who avoids hard brakes, speeding, and rapid acceleration? If so, you can save money on your insurance premiums just for your driving habits.

Simply download the DriveSense by Esurance mobile app for iOS or Android. The app will be able to tell when you are driving, where you are going, and how safe you are. While Esurance doesn’t list the exact discount, the safer you are, the more money you’ll save.

However, DriveSense is not available in the following states:

• Alaska.
• California.
• Delaware.
• Florida.
• Hawaii.