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Icon CheckLast updated: October 18, 2022

Best Auto Insurance for Families

Protection for the people most important to you

Best Overall
State Farm Logo

State Farm’s affordable rates fit into any family’s budget, without compromising on protection or financial strength. With great discounts for bundling, multiple vehicles, students, and safe driving, it’s our top pick for families.

Best for Families With Young Drivers
Allstate Logo

Allstate helps families with teens and students — some of the most expensive drivers to insure — save on premiums. And with an A+ rating from AM Best, it’s financially sound too.1

Families have unique auto insurance needs. Newlyweds sharing their first home together might want to maximize bundling savings, while parents with teen drivers might look to apply student discounts and accident forgiveness.

The cost of insuring multiple vehicles and drivers will raise your monthly bills, but there are ways to save. We’re here to walk you through the best options for meeting your family’s auto insurance needs, without breaking the bank.

Comparison of the Best Auto Insurance for Families

Provider What it’s best for Savings for bundling home and auto Multi-vehicle savings Good student discount Discount for tracking safe driving with telematics Full review
State Farm Overall 17% 20-25% 25% 30% State Farm review
Allstate Families with young drivers 25% Not specified 20% 40% Allstate review
USAA Military families 10% Not specified Not specified 30% USAA review
Liberty Mutual Add-on options Average savings of $947 Not specified Not specified 30% Liberty Mutual review
Acceptance Insurance High-risk drivers Not specified Not specified Not specified Not specified N/A
  1. 1.

    Best Overall: State Farm

  2. 2.

    Best for Families With Young Drivers: Allstate

  3. 3.

    Best for Military Families: USAA

  4. 4.

    Best for Add-ons: Liberty Mutual

  5. 5.

    Best for Families With High-Risk Drivers: Acceptance Insurance

1. Best Overall - State Farm

What We Like Most:

  • Local agents
  • Rideshare insurance available
  • Discounts for having multiple cars

State Farm distinguishes itself from the competition with good rates and a strong history of customer satisfaction. It’s the largest auto insurer in the U.S. and our top pick for families.

ProsWho It's Best For
  • pro
    Customers looking for many ways to save
  • pro
    Families with multiple vehicles
  • pro
    Rideshare drivers
  • pro
    Families that own electric vehicles or sports cars
ConsWho It's Not Best For
  • con
    Drivers with a history of at-fault accidents
  • con
    Families who live in Massachusetts or Rhode Island

Extensive Discounts

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, which families can benefit from in particular.

  • Steer Clear: Drivers under age 25 get a discount of up to 15 percent for completing an app-based driver training program (you need a clean record for the past three years to qualify).
  • Drive Safe & Save: All drivers get a discount up to 30 percent for tracking good driving habits with State Farm’s mobile app.
  • Good student: Students save up to 25 percent for good grades. The discount lasts until age 25.
  • Driver training: Get a discount if everyone under age 21 who uses a car completes an approved driver education course.
  • Student away at school: Drivers under the age of 25 who go to school more than 100 miles away and leave their cars at home get a discount.
  • Accident free: Drivers of any age get a discount for maintaining an accident-free record for at least three years.
  • Defensive driver: Taking a driver safety course can earn you discounts.
  • Clean record: New customers with no moving violations or at-fault accidents in the past three years get a discount.
  • Vehicle: Driving a car with safety features, passive restraints, and anti-theft technology doesn’t just keep your family safe; it earns you discounts as well.

Save by Insuring Multiple Vehicles

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.

Did You Know? Around 58 percent of households in the U.S. own two or more vehicles.2

To qualify for a multi-vehicle discount, you must live in the same household and meet one of the following criteria:

  • Be related by marriage, blood, or adoption
  • Jointly own the vehicles and have both of your names on the insurance policy

Coverage for Rideshare Drivers

Many rideshare drivers support families with their earnings. More than half of drivers are married or in a domestic partnership, and over 60 percent have children.3 State Farm offers important protection for rideshare drivers.

Companies like Lyft and Uber offer liability coverage, but only once you’ve matched with a rider. So, if you’re in an accident while the app is on but before you’ve matched with a rider, you’re not covered. Your personal policy won’t kick in either, because it doesn’t apply to commercial driving. Even in a covered accident, limits may vary and you won’t get money for damage to your own car.

State Farm’s rideshare coverage extends all of the coverages on your personal policy — including collision, comprehensive, rental reimbursement, and emergency roadside assistance — to the times when you’re driving for a rideshare company. If you have to file a claim, you will work with a State Farm representative, not a partner company. Rideshare coverage doesn’t raise your deductible, but your premium will go up by 15 to 20 percent.

2. Best for Families With Young Drivers - Allstate

What We Like Most:

  • Low rates for teen drivers
  • A+ rating from AM Best means financial stability
  • Great customer service

Allstate is another good choice for families, especially those with students behind the wheel. Additionally, if an RV is your family’s vacation mode of choice, Allstate offers excellent coverage options.

ProsWho It's Best For
  • pro
    Families with teen and student drivers
  • pro
    People who own RVs
  • pro
    Customers who want to purchase accident forgiveness
  • pro
    Families looking for roadside protection coverage
ConsWho It's Not Best For
  • con
    Families with no drivers under age 25
  • con
    People who value customer satisfaction, as Allstate has a history of complaints

Multiple Discounts for Young Drivers

Often, one of the biggest auto-related expenses for families is the high cost of insuring teen drivers. Allstate offers multiple ways for young drivers to earn a 20 percent student discount. Young drivers can apply this discount if they’re under age 25, unmarried, and meet any one of the following criteria:

  1. Complete the TeenSMART driver education program
  2. Go to school full-time with at least a B-minus average or a minimum GPA of 2.7
  3. Attend school at least 100 miles away from where the car is garaged

For students away at school, the vehicle must be jointly titled or titled in a parent’s name. If only the young driver’s name is on the title, they’ll need to purchase their own insurance policy.

RV Coverage

RV ownership is on the rise in the U.S., and more than 11 million households own some type of recreational vehicle. Many RV owners are families who enjoy outdoor activities and see RVs as a cheaper and more convenient way to travel.4

Allstate offers insurance for both towable and motorized RVs. You can purchase the following coverages:

Coverage What it covers
Bodily injury liability Other party’s injuries in an accident
Property damage liability Damages to the other party’s property
Medical payments Medical treatment for you and your passengers
Personal injury protection (PIP) Medical treatment, rehab, lost wages, funeral expenses, and other losses
Uninsured/underinsured motorist coverage (UIM) Your injuries and damages if a driver without sufficient insurance hits you, including hit-and-runs
Collision Damages to your RV in an accident
Comprehensive Damages to your RV not sustained in a collision (e.g., weather, vandalism, theft)
Personal effects Personal property in your RV destroyed in a covered collision or comprehensive claim
Towing and labor Towing and on-the-spot labor if your RV breaks down
Total loss replacement Money for an RV of the same model year or newer if your RV is totaled
Vacation liability Injuries someone sustains in or around your RV while you’re on vacation
Emergency expense Money for food, lodging, and transportation if your RV breaks down more than 50 miles from home
Full-timer’s liability Liability coverage (like homeowners liability insurance) if you live in your RV for at least 6 months a year
Pet Injuries to a cat or dog in your RV (included in a standard policy)
Towbar The device that attaches the RV to your regular vehicle (included in a standard policy)

Accident Forgiveness

At-fault accidents can happen to anyone, but younger and more inexperienced drivers are especially prone.

STAT: 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.5

After an accident, your insurance premium may rise by 50 percent or more. But if you purchase accident forgiveness coverage, Allstate won’t raise rates after an accident, even if your teen is at fault. Expect this coverage to add 3 to 9 percent to your premium. For example, if you pay $140 each month for auto insurance, adding accident forgiveness coverage will add about $4 to $12 to your monthly premium, or $48 to $144 each year. So, even with the added cost, the coverage will pay for itself in the event of an accident.

3. Best for Military Families - USAA

What We Like Most:

  • Lowest rates for military members, veterans, and their families
  • Rideshare insurance available
  • Usage-based insurance available for low-mileage drivers

USAA offers financial services to military members, veterans, and their families. It has a history of good rates, strong customer satisfaction, and financial solidity. If you qualify, we recommend USAA for your family’s auto insurance needs.

ProsWho It's Best For
  • pro
    Military families and veterans, including stepchildren, former spouses who haven’t remarried, and widow(er)s of USAA members
  • pro
    Drivers looking for affordable rates
  • pro
    Families with young drivers
  • pro
    Drivers wanting roadside assistance coverage
ConsWho It's Not Best For
  • con
    Parents and siblings of military members
  • con
    Families of deceased military members who did not join USAA prior to their deaths6

Great Rates and Bundling Options

USAA offers some of the cheapest auto insurance rates. On average, you’ll pay about $1,150 each year for USAA auto insurance, or $95 monthly. In addition, families can take advantage of USAA’s bundling options. You can save up to 10 percent if you bundle auto and property insurance, regardless of whether your family rents or owns (including condos).

Strong Roadside Assistance

With roadside assistance, you have peace of mind that if something goes wrong on the road, the people you care for are covered. With USAA, you get the following services:

Service description Cost with roadside assistance coverage
Tire change (spare required; if no spare, USAA will give you a tow) $0
Fuel delivery (cost of fuel applies) Contracted rate
Winching for a vehicle stuck in mud or snow $0
Towing to a nearby repair shop $0, up to 50 miles
Jump-starting a dead battery $0
Lockout $0

Roadside assistance is available 24/7, including holidays. According to USAA, a service provider will arrive within 60 to 90 minutes in most cases. Your family can call for help anywhere in the U.S., as well as in the following areas:

  • Canada
  • England
  • Germany
  • Italy
  • Puerto Rico
  • U.S. Virgin Islands

This is a standout offering, as most insurance provider’s roadside services are only available in the U.S. and Canada.

Typically, adding roadside assistance coverage to your USAA policy will increase your premium by only a dollar or two each month. However, even if you don’t have roadside coverage, you can still call USAA for assistance. Because USAA negotiates special rates with its services, you’ll pay less than if you called a towing or roadside assistance company directly.

Different Options for Young Drivers

USAA offers a couple discounts that benefit families with young drivers in particular:

  • Good student: Young drivers qualify for this discount if they’re under 25 years old and meet one of the following requirements:
    • Maintain at least a B average or 3.0 GPA
    • Rank in the top 20 percent of their class
    • Make the honor roll or dean’s list
  • Driver training: Teens who complete a driver training course receive a discount.

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. To be eligible, young drivers must:

  • Be under 25 years old
  • Have been previously on parents’ or guardians’ policy for at least three years
  • Have a clean driving record
4. Best for Add-ons - Liberty Mutual

What We Like Most:

  • Save up to 30 percent with driver monitoring program
  • Cheap average rates
  • Over 2,000 local agents throughout the U.S.

Holding 5 percent of the private auto insurance market share, Liberty Mutual is the sixth-largest insurer in the nation.7 It’s known for its range of coverage options, including some you won’t find at every auto insurance company.

ProsWho It's Best For
  • pro
    People seeking lots of coverage options and discounts
  • pro
    Families with new or leased vehicles
  • pro
    Teachers and military members
  • pro
    Families who drive to Mexico regularly
ConsWho It's Not Best For
  • con
    Rideshare drivers
  • con
    Drivers looking for the cheapest rates

Above-and-Beyond Coverage Options

Liberty Mutual offers all of the standard auto insurance coverages as well as a number of add-ons. Your family can choose from the following options:

  • Deductible fund: You add $30 to your annual premium ($2.50 each month), and Liberty Mutual will reduce your deductible by $100 each year.
  • Lifetime repair guarantee: When you bring your vehicle to an in-network shop for a covered claim, Liberty Mutual will pay the shop directly and guarantee the repairs.
  • Rental reimbursement: When using an in-network repair shop, Liberty Mutual arranges for a rental and covers the rental costs for as long as the repairs take.
  • Roadside assistance: Get 24-hour assistance, including towing, jump-starts, fuel delivery, flat-tire changes, and lockout service.
  • Original parts replacement: If your vehicle needs repair, Liberty Mutual pays for the cost of the manufacturer’s original parts — a good option for families who own Teslas or other vehicles with expensive parts.
  • Mexico car insurance: Temporarily add coverage from MexPro, Liberty Mutual’s authorized partner in Mexico, when you cross the border.

Protection for New and Leased Cars

New and leased vehicles account for over a quarter of vehicle sales in the U.S. each year, with many more drivers behind the wheel of vehicles that are only a few years old.8 Liberty Mutual has additional coverage options that benefit drivers with newer vehicles that you won’t find with every insurer.

Coverage Who should consider it What you get in the event of a total loss
Gap Families who are leasing or financing their vehicles and are “underwater” on their loans Liberty Mutual will pay for the difference between your insurance payout (car’s actual cash value) and what you owe on your auto loan.
New car replacement Families who own new vehicles that are less than one year old and have fewer than 15,000 miles If the total loss happens within the first year of owning the car, Liberty Mutual will pay for a brand-new vehicle of the same make and model.
Better car replacement Families who own their cars and want to upgrade in the event of a total loss (not available with leases or motorcycles) Liberty Mutual will pay for a vehicle that is one model year newer and has 15,000 fewer miles than your previous car.

FYI: You could be “underwater” on your loan if you put down less than 20 percent, financed for five years (60 months) or more, or bought a vehicle that depreciates quickly.

Extensive Discount List

While Liberty Mutual does not always offer the lowest baseline rates, families can find the best deal by taking advantage of an array of discounts:

  • Online purchase: Complete your auto policy purchase online and save 12 percent.
  • Paperless: Get a discount for receiving your bills and paperwork online rather than by mail.
  • Preferred payment: Earn a discount by enrolling in automatic payment or by paying for your policy in one or two installments.
  • Early shopper: You save if you get a quote from Liberty Mutual before your current policy expires.
  • Multi-policy: Liberty Mutual claims that customers save almost $950 when they bundle auto and property insurance, which applies to homeowners, renters, and condo owners alike.
  • Multi-vehicle: Like many companies, Liberty Mutual offers a discount for insuring all of your family’s vehicles together.
  • Safety features: Save money if your vehicle has features that keep your family safe, like antilock brakes, electronic stability control, and anti-theft devices.
  • Hybrid or electric: Get a discount for driving a vehicle that uses an alternate form of propulsion.
  • RightTrack: Save up to 30 percent for good driving behavior; the Liberty Mutual app will track your braking, acceleration, total miles driven, and nighttime driving.
  • Good record: You get a discount if you don’t have any at-fault accidents or moving violations.
  • Homeowner: Save money if you own your home, even if you don’t insure it with Liberty Mutual.
  • Military: U.S. Armed Forces members who are retired or on active or reserve duty get a discount as thanks for their service.
  • New teen driver discount: When adding a driver under the age of 21 to your policy, you get a discount for the first year.
  • Good student: Students who maintain a B average or higher get a discount.
  • Student away at school: You can save if a student on your policy lives at school and only occasionally drives the family car.
  • Affiliation groups: Liberty Mutual partners with a number of employers, credit unions, and alumni organizations to offer discounts.
  • Teachers: While teachers don’t receive a discount per se, they get a $0 deductible for vandalism and collision incidents that happen at school, plus free property coverage for school materials.
5. Best for Families With High-Risk Drivers - Acceptance Insurance
acceptance insurance logo

What We Like Most:

  • Accepts high-risk drivers
  • Bundle with renters', homeowners', or pet insurance
  • Good for those with bad credit

Acceptance specializes in selling auto insurance policies to high-risk drivers whom standard insurers may turn away. High-risk drivers include senior and teen drivers, who, statistically, tend to drive less safely. If a member of your family is considered high-risk, Acceptance may be the right option.

ProsWho It's Best For
  • pro
    People with an SR-22 or a bad driving record
  • pro
    Families with senior or teen drivers
  • pro
    Drivers with a low credit score
  • pro
    Families who want reimbursement for traffic tickets
ConsWho It's Not Best For
  • con
    Drivers with a satisfactory credit score and a clean record
  • con
    Drivers who don’t live in one of the following states: Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Mississippi, Missouri, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia

Special Policies for High-Risk Drivers

Insurance providers may consider you high-risk if you have a history of DUIs, serious moving violations, or at-fault accidents. Even your age, driving experience, credit, and history of insurance coverage (or lack thereof) can make you high-risk. In some cases, companies may refuse to sell your family auto insurance.

Acceptance specializes in selling nonstandard insurance to drivers who might not be able to find coverage otherwise. While Acceptance does not have all the bells and whistles that some other providers do (e.g., OEM coverage, new car replacement, deductible fund), it still offers all of the essentials, including the following:

Coverage Required?
Bodily injury and property damage liability Always (except in New Hampshire, Virginia, New Jersey, and Florida)
Personal injury protection Sometimes
Medical payments Sometimes
Uninsured/underinsured motorist Sometimes
Comprehensive and collision Never
Rental reimbursement Never
Roadside assistance Never

If someone in your family drives a motorcycle or needs a non-owner insurance policy, Acceptance has them covered. It can also handle filing an SR-22.

Good for Bad Credit

In every state except Massacushetts, Hawaii, Michigan, and California, insurance providers can take your credit score into account when determining how much you’ll pay for auto insurance. In most cases, insurance companies can also deny coverage or cancel your coverage based on your credit score.

Acceptance provides auto insurance to drivers with a low credit score. While you should expect to pay more than you would with a high credit score, Acceptance offers a number of discounts that can help lower your auto insurance costs. Acceptance’s discounts include the following:

  • Clean driving record
  • Good student
  • Claim-free
  • Defensive driver course
  • Paperless billing
  • Multi-policy
  • Multi-vehicle
  • Low mileage

Ticket Reimbursement and Roadside Assistance

High-risk drivers tend to pay more for auto insurance than drivers with a clean record. If your family is already paying higher premiums, the last thing your budget needs is a traffic ticket.

Acceptance Insurance’s roadside assistance plans include a unique offering for traffic ticket reimbursement. Coverage extends to anyone you list who drives your car. Even if you choose not to purchase ticket reimbursement coverage, roadside assistance offers assurance that your family members are taken care of in the event of a breakdown.

Details Towbusters Towbusters Plus
Traffic ticket reimbursement Not included $100 each, up to twice a year
Legal fees if traffic ticket sends you or a family member to court Not included $200
Reimbursement if DMV requires you or a family member to attend traffic school Not included $250
Claims allowed per year 5 5
Claims allowed per 72 hours 1 1
Jump-start Included Included
Towing (up to 25 miles) Included Included
Tire change (spare required) Included Included
Lockout (no cost limit) Included Included
Gas, oil, and coolant delivery Included (materials at your expense) Included (materials at your expense)
Rental car reimbursement Not included 10 days at $25 per day
Monthly cost $13 $15
Annual cost $156 $180

Acceptance insurance does not raise car insurance rates for roadside assistance service claims (however, keep in mind that offenses like DUIs and serious moving violations can raise your rates). With Towbusters Plus, you receive a range of partner discounts, including 10 percent off at major auto service and maintenance chains.

Methodology

To find the best companies for families, we prioritized insurers that offer low rates, accept all kinds of drivers (even those considered high-risk), provide discounts (especially for bundling and multiple vehicles), and never compromise on quality. Our methodology takes a three-pronged approach:

  • Proprietary data: We have two decades of experience matching customers with the right policies. In that time, we’ve collected millions of customer transaction data points. We leverage the data to determine which companies are the best fit for different customers. For this guide, we focused on providers that typically offer the best coverage for customers who are married and/or have children.
  • Company information: We comb through information on each company’s average rates, coverages, benefits, and discounts. Additionally, we account for information from independent sources, including J.D. Power, AM Best, the Better Business Bureau, the National Association of Insurance Commissioners, and S&P Global Ratings. We use this information to determine companies’ claims satisfaction, customer service quality, and financial abilities.
  • Institutional knowledge: Our team is knowledgeable about all insurance providers, including the strengths and weaknesses of each. At the helm is industry expert Paul Ford, who has almost three decades of auto insurance industry experience. Paul serves as president of insurance services at Centerfield, AutoInsurance.com’s parent company. In the past, he’s worked for companies like Capital One Insurance Services, Datalot, InsLogic, Canadian Access, Bankrate, and NetQuote.

FAQs

What are the top 10 auto insurance companies in the U.S.?

Our top 10 auto insurance companies are:

  1. State Farm
  2. Allstate
  3. Direct Auto
  4. GEICO
  5. The Hartford (AARP)
  6. Liberty Mutual
  7. USAA
  8. Progressive
  9. Farmers
  10. Esurance

Who has the best auto insurance rates for families with teen drivers?

Allstate, State Farm, and USAA have the best auto insurance rates for families with teen drivers. To find the cheapest rates, get quotes from at least three companies before making your purchase.

How much does it cost to insure a teen driver?

The average annual cost of insurance for drivers between the ages of 16 and 19 is $3,751, or $312 monthly.

Age Average annual cost of insuring a teen driver Average monthly cost of insuring a teen driver
16 $4,368 $364
17 $3,925 $327
18 $3,953 $329
19 $2,758 $230

What is the best auto insurance for families with teens in Arizona?

The best auto insurance companies for families with teens in Arizona are State Farm, GEICO, and AAA. The average annual cost of auto insurance in Arizona is $1,063.93 (about $89 per month), which is 1 percent lower than the national average.

Citations

  1. Search for a Rating. (2022). AM Best.
    https://ratings.ambest.com/

  2. Households with two or more cars (percent). (2021, Oct 16). diversitydatakids.org.
    https://data.diversitydatakids.org/dataset/08201_3_p-households-with-two-or-more-cars–percent-

  3. Who are rideshare drivers? (2021, Oct 16). Gridwise.
    https://gridwise.io/blog/b2b/who-are-rideshare-drivers-a-demographic-breakdown-of-rideshare-drivers-in-the-u-s/

  4. Media Resources. (2022). RV Industry Association.
    https://www.rvia.org/media-resources

  5. Teenagers. (2022). Insurance Institute for Highway Safety (IIHS).
    https://www.iihs.org/topics/teenagers

  6. USAA Membership Eligibility for Family Members. (2018, May 30). USAA.
    https://communities.usaa.com/t5/Money-Matters/USAA-Membership-Eligibility-for-Family-Members/ba-p/176724

  7. 2021 TOP 25 GROUPS AND COMPANIES BY COUNTRYWIDE PREMIUM. (2021). National Association of Insurance Commissioners.
    https://content.naic.org/sites/default/files/research-actuarial-property-casualty-market-share.pdf

  8. New and Used Passenger Car and Light Truck Sales and Leases. (2021). U.S. Bureau of Transportation Statistics.
    https://www.bts.gov/content/new-and-used-passenger-car-sales-and-leases-thousands-vehicles