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Last updated: January 27, 2026Best Auto Insurance for Families in 2026
Erie, State Farm, and USAA are among our top auto insurance picks for families.
Best Value
Best National Insurer
Editor's Rating:
4.9/5
4.9/5Average Cost
- Full coverage: $2,030
- Minimum coverage: $650
Best for for Military Families
Editor's Rating:5/5
5/5Average Cost
- Full coverage: $1,533
- Minimum coverage: $436
Key Takeaways
- Families with teens tend to pay more for car insurance because young drivers are inexperienced and are more likely to get into an accident. We found that the best value car insurance for families is from Erie.
- State Farm, USAA, Amica, GEICO, and Country Financial also offer great coverage and discount opportunities for families.
- While average rates provide a useful starting point for figuring out how much you might expect to pay, the rates listed below are national averages and may differ from what you are quoted. Your premium depends on many factors, including where you live and the driving record and age of all the drivers on your policy.
Our Top Picks for Family Car Insurance
- Best Value: Erie
- Best National Insurer: State Farm
- Best for Military Families: USAA
- Best for Bundling: Amica
- Best for Online Purchasing: GEICO
- Best for Farmers/Rural Households: COUNTRY Financial
Comparison of the Best Car Insurance for Families
| Category | Erie | State Farm | USAA | Amica | GEICO | Country Financial |
| Who it’s best for | Those looking for the best rates without sacrificing customer service | Drivers who want to work with a national insurer | Military families | Those looking to bundle auto with home or renters policies | People who want to buy a policy online | Farmers |
| Average annual full coverage cost | $1,833 | $2,030 | $1,533 | $2,274 | $1,867 | $1,862 |
| Average annual cost for teen drivers | $4,177 | $5,044 | $3,847 | $6,451 | $5,140 | $4,459 |
| Home bundling discount? | Yes | Yes | Yes | Yes | Yes | Yes |
| Multi-vehicle discount? | Yes | Yes | Yes | Yes | Yes | Yes |
| Good student discount? | No (Youthful Driver discount) | Yes | Yes | Yes | Yes | Yes |
| J.D. Power Claims Satisfaction Rating (average is 700 out of 1,000)1 | 743 | 716 | 741 | 718 | 697 | Not rated |
| CRASH Network Report Card Rating2 | A- (Honor Roll) | C- | D+ | B+ (Honor Roll) | C- | B- |
FYI:
In every state except for California, Hawaii, Massachusetts, Michigan, North Carolina, and Pennsylvania, insurers can use gender as a rating factor. This generally results in higher average rates for male teens than for female teens, due to their higher statistical likelihood of being involved in an accident.
Breaking Down the Best Car Insurance for Families
Families can save on car insurance by utilizing discounts for bundling policies, multi-car households, safe driving, having student drivers, and teen drivers.
1. Best Value - Erie
What We Like Most:
- Exceptional customer service record
- Accident forgiveness is handy for young drivers
- Affordable rates
Why we chose it
Often, one of the biggest auto-related expenses for families is the high cost of insuring teen drivers. Erie has some of the cheapest rates available, including for teens. Its average annual full coverage premium is 22 percent lower than the national average, and its rate for teens is 31 percent below the national average. It also has a young driver discount available to unmarried drivers under 21 who live with their parents.
Erie offers a robust coverage selection to help you customize your policy. One particularly useful offering for families with young drivers is accident forgiveness. At-fault accidents can happen to anyone, but younger and more inexperienced drivers are especially at risk. After an accident, insurance premiums increase by an average of 46 percent. If you purchase accident forgiveness coverage, Erie won’t raise rates after your first accident claim, even if your teen is at fault. This coverage is included at no extra cost, but in most states, you must be an Erie customer for at least three years before you qualify.
DID YOU KNOW?
According to the Insurance Institute for Highway Safety, drivers between the ages of 16 and 19 are four times more likely to get into a car accident than drivers aged 20 and older.3
Erie is only available in 12 states and Washington D.C., but it’s worth getting a quote from if you live within its service area. In addition to its affordable rates, it consistently earns some of the highest customer service ratings from various industry sources. The company ranked first in J.D. Power’s most recent Auto Claims Satisfaction Study, and it ranked first or second in J.D. Power’s 2025 Auto Insurance Study for every region where it’s available.4 It’s also sixth on CRASH Network’s Report Card with a high A- rating.
Who it’s best for
Families who want the best rates, drivers who want accident forgiveness, safe drivers
2. Best National Insurer - State Farm
What We Like Most:
- Multiple discounts for safe driving, including one specifically for young drivers
- Local agents
- Discounts for multiple cars
Why we chose it
State Farm distinguishes itself from the competition with competitive rates and a strong track record of customer satisfaction. It’s the largest auto insurer in the U.S. and one of our top picks for families. In addition to baseline low rates, State Farm has a number of discounts that can help you save on auto insurance. This includes discounts for teen drivers, such as good student, driver training, and student away at school discounts, which families can benefit from.
State Farm also has a telematics discount program specifically designed for young drivers called Steer Clear. With this program, drivers under age 25 get a discount for completing an app-based driver training program (you need a clean record for the past three years to qualify). Older drivers in the family can also find savings with the company’s other telematics program, Drive Safe & Save. All drivers get a discount of up to 30 percent for tracking good driving habits with State Farm’s mobile app.
If your family has multiple cars, you can save money by insuring all of them on one State Farm policy. In most states, you can insure up to four cars on the same policy. To qualify for a multi-vehicle discount, you must live in the same household and either be related by marriage, blood, or adoption, or jointly own the vehicles and have both of your names on the insurance policy.
DID YOU KNOW?
Around 58 percent of households in the U.S. own two or more vehicles.5
Who it’s best for
Customers looking for many ways to save, families with multiple vehicles, drivers who want to a policy from a national insurer
3. Best for Military Families - USAA
What We Like Most:
- Coverage extends to family if you have to move overseas
- Cheapest overall provider on our list
- Highest customer service scores
Why we chose it
USAA offers financial services to military members, veterans, and their families. It has a history of good rates, strong customer satisfaction, and financial reliability. If you qualify, we recommend USAA for your family’s auto insurance needs.
USAA offers some of the cheapest auto insurance rates. On average, you’ll pay about $1,533 each year for full coverage USAA auto insurance, or $128 monthly. USAA offers a couple of discounts that benefit families with young drivers in particular, including a good student and driver training discount. Young drivers qualify for the former if they’re under 25 years old and maintain at least a B average or 3.0 GPA, rank in the top 20 percent of their class, or make the honor roll or dean’s list. The driver training discount is available to teens who complete an approved driver training course.
Finally, part of growing up is transitioning from the family auto insurance policy. When young drivers move, start a new job, or experience another big life change, it might be time for them to purchase their own policy. USAA has a loyalty discount that saves young drivers 10 percent on their first policy if they are under 25 years old, have been on their parents’ or guardians’ policy for at least three years, and have a clean driving record.
Who it’s best for
Military families and veterans, including stepchildren, former spouses who haven’t remarried, and widow(er)s of USAA members
4. Best for Bundling - Amica
What We Like Most:
- Excellent customer service ratings for both auto and home insurance
- Major bundling discounts for home and auto
- Multiple student discounts
Why we chose it
Amica is a great choice for families who are looking to bundle policies. It offers up to 30 percent off for bundling auto with home, umbrella, and life policies. This is one of the highest-advertised bundling discounts — most competitors offer 25 percent or less. When you bundle, you’ll also be able to keep track of your policies under Amica, whether you need to make changes to your policies or follow your claim status.
Amica tends to have higher rates than many competitors for teen drivers, but it offers several family-oriented discounts. Drivers under 21 who complete an accredited driver training program are eligible for the young driver training discount, and full-time students aged 15 to 25 with at least a B average are eligible for a good student discount. Amica also offers a legacy discount to drivers under 30 whose parents have had an auto policy with the company for at least five years.
Amica has excellent customer satisfaction ratings, making it ideal for those who don’t mind paying a bit more in exchange for quality service. It ranked first for customer satisfaction in J.D. Power’s 2025 Home Insurance Study and above average in the 2025 Auto Claims Satisfaction Study.6 It also earned a spot on the CRASH Network Honor Roll for 2025 with a B+ rating.
Who it’s best for
Families with safe drivers, homeowners, parents who want to pass on auto savings to their teens
5. Best for Online Purchasing - GEICO
What We Like Most:
- Convenient online quotes and purchasing
- Many discounts available
- Nationwide availability
Why we chose it
GEICO is the only provider on our list without membership requirements that is available in all 50 states and Washington, D.C, making it an accessible and convenient option for most drivers. It offers below-average rates for both adult drivers with clean driving records and teen drivers.
GEICO is known for being a digital-first company and is also the only insurer on this list (other than USAA) that offers not only online quotes, but online purchasing as well. While speaking to an agent can be helpful if you have questions or aren’t sure which coverage is right for you, having the option to complete your purchase online is convenient and quick if you know what you’re looking for.
Chances are you qualify for several different GEICO discounts, as the company has one of the longest lists of discounts available of any insurer. These include a generous 25 percent discount for insuring multiple cars, a 15 percent good student discount, and a discount for young drivers who complete a driver’s education course. Military members and federal employees may also qualify for discounts of 15 percent and 12 percent, respectively.
Who it’s best for
Those who want to get a quote and purchase a policy online, military-affiliated drivers who prefer not to go with USAA
6. Best for Farmers/Rural Households - COUNTRY Financial
What We Like Most:
- Competitive rates for teen drivers
- New car replacement coverage
- Robust farm insurance
Why we chose it
Country Financial auto insurance is available in 19 states, mainly across the Midwest and the West. It is known for having affordable rates, including for teen drivers. It sells farm insurance in ten states and is a good option for families looking to insure their farm property and their vehicles with the same insurer. You can save up to 30 percent by bundling two or more policy types.
The company also has a multi-car discount and discounts targeted to teen drivers, including Simply Drive. Simply Drive is an online driver training program specifically designed for teens, which provides a discount of up to 10 percent on auto premiums until the driver turns 21. To be eligible, the teen must be a licensed driver aged 16 to 17, unmarried, and free from moving violations or at-fault accidents.
If you currently qualify for Country Financial’s multi-car or multi-policy discounts, you can pass them on to your children when they are ready to get their own individual policy, as long as they are under 25 and unmarried, even if they don’t live with you anymore.
For those building a new family, Country Financial offers an engaged couple discount, which is available to engaged couples who have their cars insured with the company, are between the ages of 21 and 29, and have a wedding date within the next year.
Country Financial offers several add-on coverages, one of which is new car replacement (which they call The Keeper). This is particularly useful for families with newer cars and young drivers, who are more likely to get into an accident.
Who it’s best for
Those who need farm insurance in addition to auto, engaged couples, new car owners
Frequently Asked Questions
Yes, if you have a young driver in your family who is learning to drive and will need to get car insurance, it’s much cheaper to add them to an existing family policy than to get an individual policy. Depending on the insurer, the difference can be several thousand dollars per year. In addition, teens under 18 cannot legally purchase their own policy without a parent or guardian to cosign.
How much a family should pay for car insurance depends on various factors, including the age of the insured drivers, whether any of them have violations, where they live, and how many cars are insured. The average cost of car insurance for teens, which includes teens on family policies, is $6,054 per year nationally, which can provide a useful benchmark. However, you may pay more or less depending on your circumstances.
Whether $200 a month is a lot for car insurance for two cars is relative and depends on factors like where you live and the driving records of the drivers covered under the policy. The average cost of car insurance nationwide for a safe adult driver insuring one vehicle is $196 per month for full coverage, and $60 per month for minimum coverage. Based on this average, $200 per month is a relatively competitive rate for two cars, particularly if you live in a high-cost-of-living area. For minimum coverage, that cost is relatively high.
There are many ways to lower your car insurance premiums. If you have a teen driver in your household, you can save thousands of dollars per year by adding them to your family policy. Being a safe driver is one of the best ways to ensure your rates remain as low as possible. In addition, you should always look for discounts, as most insurers offer them for bundling policies, insuring multiple policies, being a good student, and more.
Methodology
We evaluated over a dozen auto insurance companies on the following criteria to determine the best car insurance companies for families:
- Pricing (30%): We analyzed full and minimum coverage premiums for safe adult drivers with clean records, as well as average rates for teen drivers. We also looked at discount opportunities, including those specifically tailored to families and young drivers. Full coverage averages use the following limits:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured and underinsured motorist bodily injury: $100,000 per person/$300,000 per accident
- Comprehensive and collision: $500 deductible
- Coverage (25%): We considered the selection of add-on coverages offered by insurers, including those particularly relevant to young drivers, such as accident forgiveness and roadside assistance.
- Claims handling (30%): Policyholders expect the claims process to be fair, efficient, and transparent. We assessed companies on how well they service claims, using third-party sources such as J.D. Power’s Claims Satisfaction Study.
- Customer satisfaction (15%): We evaluated each company’s customer service record, which includes ratings on how easy it is to get a quote and purchase a policy, as well as the experience of managing an existing policy, whether through digital tools or agents, and customer satisfaction ratings of UBI programs.
We use the latest industry research and third-party ratings to evaluate auto insurance providers, as well as feedback from real customers. Read more about our editorial guidelines.
Sources
Satisfaction with Auto Insurance Claims Strained by Higher Deductibles, More Total Losses, J.D. Power Finds. J.D. Power. (2025, Oct 28).
https://www.jdpower.com/business/press-releases/2025-us-auto-claims-satisfaction-studyTop Rated U.S. Car Insurance Companies for 2025. Crash Network. (2025).
https://www.crashnetwork.com/irc/Teenagers. Insurance Institute for Highway Safety (IIHS). (2026)
https://www.iihs.org/research-areas/teenagers#by-the-numbersIt’s Now a Buyer’s Market for Auto Insurance, J.D. Power Finds. J.D. Power. (2025, June 10).
https://www.jdpower.com/business/press-releases/2025-us-auto-insurance-studyShare of Household by Vehicles Available 1960-2023. U.S. Bureau of Transportation Statistics. (2026).
https://www.bts.gov/browse-statistical-products-and-data/info-gallery/share-household-vehicles-available-1960-2023Homeowners Insurance Premium Increases Threaten Customer Loyalty, Long-Term Profitability, J.D. Power Finds. J.D. Power. (2025, Sept 16).
https://www.jdpower.com/business/press-releases/2025-us-home-insurance-study
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