Protection for the people most important to you
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.
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.
|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|
Best Overall: State Farm
Best for Families With Young Drivers: Allstate
Best for Military Families: USAA
Best for Add-ons: Liberty Mutual
Best for Families With High-Risk Drivers: Acceptance Insurance
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.
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.
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:
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.
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.
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:
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 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)|
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.
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.
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).
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|
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:
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.
USAA offers a couple discounts that benefit families with young drivers in particular:
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:
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.
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:
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.
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:
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.
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:
|Bodily injury and property damage liability||Always (except in New Hampshire, Virginia, New Jersey, and Florida)|
|Personal injury protection||Sometimes|
|Comprehensive and collision||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.
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:
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.
|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|
|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|
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.
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:
Our top 10 auto insurance companies are:
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.
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|
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.
Search for a Rating. (2022). AM Best.
Households with two or more cars (percent). (2021, Oct 16). diversitydatakids.org.
Who are rideshare drivers? (2021, Oct 16). Gridwise.
Media Resources. (2022). RV Industry Association.
Teenagers. (2022). Insurance Institute for Highway Safety (IIHS).
USAA Membership Eligibility for Family Members. (2018, May 30). USAA.
2021 TOP 25 GROUPS AND COMPANIES BY COUNTRYWIDE PREMIUM. (2021). National Association of Insurance Commissioners.
New and Used Passenger Car and Light Truck Sales and Leases. (2021). U.S. Bureau of Transportation Statistics.