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The Best Auto Insurance for Volkswagen

If you drive a Volkswagen, here’s what you’ll need to know.

Best Overall
State Farm Logo

With coverage in nearly all of the U.S. and a low average cost, State Farm is a great choice for most Volkswagen-owners.

Best Low-Cost
USAA Logo 2023

If you’re a member of the military, a veteran, or a family member of either category, USAA will provide you with the lowest rates for your Volkswagen.

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If you drive a Volkswagen or are considering purchasing one, you’ll want car insurance that’s tailored to your specific needs and concerns. Thanks to’s decades of experience and millions of proprietary data points connecting Volkswagen drivers with insurance policies, we offer tried-and-true recommendations. Keep reading to learn more about our top picks for Volkswagen auto insurance.

Summary of the Best Volkswagen Insurance

  1. 1.

    Best Overall Insurance for Volkswagen: State Farm

  2. 2.

    Best Low-Cost Insurance for Volkswagen: USAA

  3. 3.

    Best for Bundling Home and Auto Insurance: Allstate

  4. 4.

    Best Vehicle Repair and Replacement Coverage for Volkswagen: Liberty Mutual

Comparison of the Best Auto Insurance for Volkswagen

Company What it’s best for Average annual cost Availability Read our full review
State Farm Best overall insurance for Volkswagen $1,419 All 50 states except Rhode Island and Massachusetts; Washington D.C.; and Canada State Farm auto insurance review
USAA Best low cost insurance for Volkswagen $1,151 All 50 states and Washington, D.C., as well as U.S. territories and the following places:

  • Azores
  • Belgium
  • Cuba
  • France
  • Germany
  • Greece
  • Italy
  • Netherlands
  • Portugal
  • South Korea
  • Spain
  • United Kingdom
USAA auto insurance review
Allstate Best for bundling home and auto for Volkswagen $1,673 All 50 states, Washington, D.C., and Canada Allstate auto insurance review
Liberty Mutual Best vehicle repair and replacement for Volkswagen $1,637 All 50 states and Washington, D.C. Liberty Mutual auto insurance review

Detailed List of the Best Auto Insurance for Volkswagen

1. Best Overall Insurance for Volkswagen - State Farm

What We Like Most:

  • Multiple discounts for safe driving, including one specifically for young drivers
  • Local agents
  • Discounts for multiple cars

You may be familiar with State Farm from its witty ads featuring the character Jake from State Farm or the company’s tagline, “Like a good neighbor, State Farm is there.” State Farm was our overall pick 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.1

ProsWho It's Best For
  • pro
    Students and young drivers
  • pro
    Rideshare drivers
  • pro
    Drivers who want to work with a local agent
  • pro
    Drivers who use their cars for commercial or business purposes

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.


To earn State Farm’s Steer Clear certification, young drivers will need to complete five online training modules made up of videos, driving scenarios, and quizzes, complete at least five hours of practice driving spread across at least ten trips, and have an adult driver submit online feedback.

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.

2. Best Low-Cost Insurance for Volkswagen - USAA

What We Like Most:

  • Cheapest rates for teens on a family policy or on their own
  • Special discount for teens transitioning off their parents’ policy
  • Strong customer service and claims process

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.

ProsWho It's Best For
  • pro
    Military families and veterans
  • pro
    Americans who drive in international locations
  • pro
    Rideshare drivers
ConsWho It's Not Best For
  • con
    Drivers who are not active-duty military members, veterans, or members of their immediate families

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, found an average annual price of $1,151 per year for USAA car insurance. This figure is only $80 more than the average price of car insurance for all carriers, which is $1,070.47 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.


Cars that score well on safety tests tend to be cheaper to insure, since they’re more likely to protect drivers and passengers from expensive injuries. The Insurance Institute for Highway Safety named the 2022 Volkswagen ID.4 one of its top safety picks.2

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 2023 Volkswagens

USAA offers its members $500 off the purchase or lease of any 2023 Volkswagen model other than the Golf R.3 This is just one of several benefits that the company offers its members benefits beyond those of many other insurance companies. 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.

3. Best for Bundling Home and Auto Insurance - Allstate

What We Like Most:

  • Three ways to earn a student discount
  • Pay-per-mile option for drivers with low mileage
  • No waiting period to purchase accident forgiveness

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 a variety of kinds of 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.

ProsWho It's Best For
  • pro
    Homeowners looking to save by bundling insurance
  • pro
    American customers who drive in Mexico and/or Canada as well
  • pro
    Low-mileage drivers who want pay-per-mile options
  • pro
ConsWho It's Not Best For
  • con
    Drivers looking to save on insurance
  • con
    Drivers who want yearlong insurance policies rather than six-month policies

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 specifically designates all Volkswagen models manufactured since 2007 as eligible vehicles for Uber services.4 The rideshare giant also lists the Arteon, Atlas, ID.4, Passat, Passat GTE, Tiguan, and Touareg as pricer Comfort ride options, and the Caravelle and Routan as candidates for Uber XL rides.

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.5

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.

4. Best Vehicle Repair and Replacement Coverage for Volkswagen - 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.

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.6 The company offers a large variety of other vehicle and property insurance options, as well as life insurance, pet insurance, tuition insurance, and other specialized types of coverage.

ProsWho It's Best For
  • pro
    Drivers concerned about repair costs
  • pro
    Members of alumni associations and employees of companies offering Liberty Mutual Partner Program discounts
  • pro
    Teachers and education professionals
  • pro
    Drivers insuring electric cars, such as the Volkswagen ID.4 or the 2024 Volkswagen Buzz van
ConsWho It's Not Best For
  • con
    Drivers who want to pay per mile
  • con
    Rideshare drivers

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.7 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 2023 models range in price from $20,665 for a Volkswagen Jetta to $44,470 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. Recent changes include a 13 horsepower increase for the 2022 Volkswagen Golf versus the 2021 model, and making all-wheel drive standard starting with the 2022 Volkswagen Atlas line.8

  • 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.


We chose the best auto insurance providers using a three-pronged approach:

  • Proprietary data: has been connecting people to car insurance providers for more than two decades. Thanks to the many policies we’ve connected drivers to, we’ve collected millions of data points surrounding auto insurance transactions. We are analyzing this data constantly to offer our readers the most accurate, up-to-date recommendations for your specific needs. Our proprietary data allows us to learn from what’s been successful for Volkswagen drivers who we’ve previously helped find great car insurance.
  • Company information: We research each company and analyze a wide variety of data about the car insurance it provides, including taking a deep dive into the coverages and discounts it offers. We also compile and factor in third-party customer satisfaction and financial strength ratings from industry authorities such as AM Best, the Better Business Bureau, J.D. Powder, Moody’s, the National Association of Insurance Commissioners, and Standard and Poors.
  • Institutional knowledge: In our decades of covering the insurance industry, we’ve amassed a great deal of institutional knowledge on the strengths and weaknesses of a wide variety of insurance providers. We frequently consult with Paul Ford, the President of Insurance’s parent company, Centerfield. Paul has spent nearly 30 years working in the insurance industry, including tenures at companies such as Canadian Access, Inslogic, Capital One Insurance Services, NetQuote, Bankrate, and Datalot. To fulfill our mission of helping customers find their perfect car insurance policies, we’re able to lean on Paul’s extensive knowledge and industry expertise.

Auto Insurance FAQs

Does Volkswagen have roadside assistance?

Yes, Volkswagen offers 24/7 VW roadside assistance. The service is free for the first three years or 36,000 miles, whichever comes first, for all new Volkswagen passenger vehicles sold in the U.S.

Is Volkswagen a luxury car?

No, Volkswagen is not a luxury car brand. However, the Volkswagen group, Volkswagen’s parent company, owns several luxury car brands, including Audi, Lamborghini, and Bentley.

Is the Volkswagen Jetta a good car to buy?

Yes, the Volkswagen Jetta scores highly on safety tests, receiving the best possible overall rating of “Good” from the Insurance Institute for Highway Safety. It also averages 35 MPG, making it a good car to buy in terms of fuel costs. Car and Driver magazine rated the 2023 Volkswagen Jetta 8.5 out of ten, making it the third highest-rated car in its class.

Is a Volkswagen Tiguan expensive to insure?

No, the Volkswagen Tiguan is not expensive to insure. Rather, it has reasonable car insurance rates. The 2022 Tiguan model has high safety ratings and low theft rates, making it a reasonably-priced vehicle to insure. The Tiguan was one of the Insurance Institute for Highway Safety’s (IIHS) top safety picks for 2022.

The IIHS also found that the Tiguan was significantly less likely to be stolen than the average car, with 32 to 35 percent fewer incidents of theft than the overall average, bringing the cost of car insurance down even more.


  1. Progressive’s private auto market share growth continued amid pandemic. S&P Global. (2021, May 11).

  2. 2022 Volkswagen ID.4. Insurance Institute for Highway Safety (IIHS). (2023).

  3. How to get the best military discounts. USAA. (2022, Nov 18).

  4. Eligible Cars and Other Vehicles for Driving in Your City . Uber. (2023).

  5. The VW Bus Took the Sixties on the Road. Now It’s Getting a Twenty-first-Century Makeover. The New Yorker. (2022, Jul 25).

  6. Affordable car insurance, customized for you.. Liberty Mutual Insurance. (2023).

  7. Portrait & Locations. Volkswagen. (2023).

  8. Changes to the 2022 Volkswagen Models. J.D. Power. (2021, Dec 1).