The Best Auto Insurance for Volkswagen in 2025

You may be familiar with State Farm from its witty ads or the company’s tagline, “Like a good neighbor, State Farm is there.” State Farm was one of our top picks for the best auto insurance, so it’s not a surprise that the company offers great coverage options for Volkswagens. It’s also the most popular auto insurance provider in the U.S., with great options for Volkswagen drivers.²

Work With an Exclusive Agent

State Farm takes a unique approach to sell its insurance, working only with exclusive agents. In practical terms, this means that State Farm only sells its insurance policies through State Farm agents, as opposed to independent agents or insurance brokers. These exclusive agents sell only State Farm insurance policies.

This focus means that State Farm agents can focus exclusively on policy details important to your needs and your location, though you’ll miss out on the advantages of comparison shopping. With more than 19,000 agents located throughout the country, you’re likely to find a local option.

Discounts for Young Drivers and Students

State Farm offers multiple insurance discounts for teens and other young adult drivers, who tend to pay high insurance premiums.

• Steer Clear discount: State Farm’s Steer Clear program is designed to encourage safe driving habits among teens and other young drivers. It offers discounts of up to 15 percent to drivers under the age of 25 who have valid licenses, have had no at-fault accidents or moving violations, and have completed a Steer Clear certification program.
• Good student discount: Students under the age of 25 can earn a discount of up to 25 percent. To qualify, students or their parents must submit report cards or standardized test results proving that they rank in the top 20 percent of their class. State Farm offers options for homeschooled students to qualify, as well, such as submitting evidence they’ve taken certain national standardized tests administered within the past 12 months, and ranked in the upper 20 percent.
• Student away at school discount: This discount applies to college students under the age of 25 who reside at school more than 100 miles from home. If you have a car that your child uses only during holidays and school breaks but is otherwise stored at home, you may be eligible for this discount.

Choose Your Own Billing Date

State Farm offers a variety of options when it comes to paying for your policy. As a State Farm customer, you’ll be able to choose your own monthly payment due date, from the 1st through the 28th of the month. You can also customize bill payment reminder notifications and choose how many days before your payment due date you’d like a reminder.

The United Services Automobile Association (USAA) is a unique financial services organization that offers banking, investment services, and a variety of insurance options for members and veterans of the United States Armed Forces, as well as to their families. Originally founded 100 years ago, USAA offers affordable insurance options for its members.

Good Coverage for a Lower Price

Thanks to its role serving the federal government and U.S. military, USAA offers its members some of the lowest car insurance prices in the nation. Using our proprietary market analysis, AutoInsurance.com found an average annual price of $1,322 per year for USAA car insurance. This figure is about $600 more than the average price of car insurance for all carriers, which is $1,924 per year.

Considering the wide variety of coverage and discounts USAA offers, which we’ll get into below, this is a great deal for insuring your Volkswagen vehicle.

Usage-Based Insurance and Storage Discounts

USAA offers usage-based car insurance, also known as mileage-based or pay-per-mile insurance. This coverage allows customers who don’t use their cars much to pay less. For example, if you drive to work once a week and take public transit on most days, you might save by switching to usage-based insurance.

Additionally, USAA offers a special discount of up to 15 percent for members who garage their vehicles on military bases. These policies are especially relevant for active-duty military members who may be deployed away from their vehicles.

Save on a New Volkswagen

Volkswagen offers qualified military members and first responders $500 off the purchase or lease of a new Volkswagen.⁴ And that’s just one way you can save as a military member—since USAA is a bank as well as an insurance provider, it offers specialized auto loans with reduced interest rates. The company also boasts a car-buying service that helps members compare prices on vehicles and advertises discounted prices and waived dealer fees.

Allstate has been selling insurance for more than 70 years and is the fourth-largest American auto insurance company by market share. It offers a wide range of insurance options for customers looking to bundle, including insurance for various vehicles, property and renters insurance, and life insurance, among others. Additionally, Allstate offers several specialized forms of car insurance, including classic car insurance, coverage for drivers visiting Mexico, and rideshare driver insurance.

Great Bundling Options

Allstate offers big savings for both homeowners and renters through its bundling discounts. Customers who purchase both auto insurance and homeowners or renters insurance can save up to 25 percent on both policies. The company also offers additional savings for customers who add more Allstate insurance policies, such as motorcycle insurance or life insurance.

Rideshare Coverage

The popularity of rideshare apps like Uber and Lyft means more and more drivers are using their personal vehicles to offer rides and make money. With their high safety ratings and stylish design, Volkswagen vehicles make great rideshare cars.

Uber designates all Volkswagen models manufactured since 2009 as eligible vehicles for UberX services. The rideshare company also lists several models for higher-tier services. The Arteon, Atlas, ID.4, Passat, Tiguan, and Touareg are eligible for Comfort rides if manufactured in 2016 or later, with the Passat requiring a 2018 or newer model. The Atlas and Routan qualify for UberXL rides. Additionally, the ID.4 is eligible for Comfort Electric rides if manufactured in 2016 or later, while the Passat GTE qualifies for Comfort rides if made in 2020 or later. The Atlas Cross Sport is also eligible for Comfort rides if manufactured in 2016 or later.⁵

It’s important to keep in mind that your personal auto insurance policy does not apply while you’re using your car for commercial purposes, meaning your personal coverage “turns off” when you turn on the rideshare app. Most rideshare companies have their own insurance policies to cover you while you have passengers in the vehicle, but that coverage turns off when the passengers get out or while you are waiting for your next pickup.

Specialized rideshare insurance, like Allstate’s coverage, protects you during the periods when you’re waiting to be assigned a ride, or on your way to pick up a passenger.

Classic Car Insurance

Fans and collectors know that Volkswagen has produced several popular classic car models, such as the Volkswagen Type 1 (also known as the VW Bug), first released in 1938 and manufactured until 2003, or the VW Microbus, introduced in 1950 and popularly associated with the hippie culture of the sixties.⁶

Allstate is one of our picks for the best auto insurance for classic cars, thanks to the company’s wide range of coverage for classic and collectible vehicles, flexible claim service, and protections for classic car-related accessories, including tools, spare parts, and memorabilia.

Liberty Mutual’s tagline is “Only pay for what you need,” and the company advertises customized insurance coverage that can save drivers up to 12 percent on their auto insurance premiums when they purchase a policy online.⁷ The company offers many other vehicle and property insurance options, as well as life insurance, pet insurance, tuition insurance, and other specialized types of coverage.

Save on Repairs and Replacements

Since Volkswagen is a German company that manufactures its vehicles in multiple international locations, Volkswagen parts can be more expensive to replace than parts for domestically produced vehicles.⁸ Volkswagen cars have a good reputation for reliability, but it’s important to consider the potential risks of paying to repair or replace parts (or even the whole car) in the event of an accident or another issue.

If you’re concerned about these potential costs, Liberty Mutual is a great choice, since the company offers the following optional coverage options.

• Lifetime repair guarantee: This coverage pays for repairs to your vehicle for as long as you own it. Liberty Mutual has vetted more than 2,000 nationwide Guaranteed Repair Network facilities.

  The company will work with these facilities to provide you with a fast, high-quality repair service. Liberty Mutual will pay the shop directly for the full cost of your repairs beyond your deductible, and the company offers a 100 percent lifetime guarantee for these repairs. Additionally, Liberty Mutual advertises priority repair status for vehicles with this coverage.

• New car replacement: Car values depreciate quickly, even in the first year after purchase. In the case that your new car is stolen and can’t be recovered or is totaled in a covered accident, Liberty Mutual’s new car replacement will pay you the amount it would cost to buy a brand-new vehicle of the make and model as your covered car. To give you an idea of that cost for a Volkswagen owner, the 2024 models range in price from $21,435 for a Volkswagen Jetta to $45,665 for the Volkswagen Golf R. Liberty Mutual specifically recommends this coverage for vehicles that are less than one year old, have fewer than 15,000 miles on the odometer and have had no previous owners.
• Better car replacement: Think of Liberty Mutual’s better car replacement coverage as the next step after a year of new car replacement coverage. As well, this optional policy kicks in when your car is stolen and can’t be recovered or is totaled. If your covered vehicle is deemed a total loss, Liberty Mutual will give you the money for a replacement car that is one model year newer and has 15,000 fewer miles on it than your previous vehicle.

  Volkswagen is constantly updating and improving its offerings, so a newer model can make a big difference. For example, recent changes include the 2024 Volkswagen Atlas and Atlas Cross Sport receiving comprehensive updates, including a new exterior design, upgraded interior, and a more powerful turbocharged 2.0-liter 4-cylinder engine that replaces both the previous 4-cylinder and V6 options.⁹

• Original parts replacement: This coverage pays for the original manufacturer parts for your vehicle. For high-quality vehicles like Volkswagens, this coverage ensures that you don’t have to settle for inferior replacement parts if you need a repair. If original manufacturer parts for your vehicle are not available, or if they are no longer in production, Liberty Mutual will provide an estimate that includes the cost of comparable or reconditioned parts.

Deductible Fund

Liberty Mutual’s deductible fund allows drivers to save on their deductibles each year that they continue to insure their vehicles with the company. Each year, you’ll pay an extra $30 as part of your premium, which goes to the deductible fund. Liberty Mutual will then contribute another $70.

The company will then lower your auto insurance deductible by $100 every year that you’re enrolled. These savings will reduce the balance you will need to pay out-of-pocket in the case of a claim.

Extra Coverage for Educators

Liberty Mutual offers unique auto insurance coverage options for teachers. In addition to exclusive discounts, the company offers the following features for educators:

• Vandalism loss protection: If your vehicle is vandalized while it’s on school property or during a school-related event, Liberty Mutual will completely waive your deductible.
• Personal property coverage: In the case that your teaching materials or other school-owned property are stolen or damaged while in your vehicle, Liberty Mutual will reimburse you up to $2,500 per occurrence.
• School collision coverage: If your vehicle is damaged in a collision while you’re driving it on school business, you won’t need to pay for your deductible.