Car Insurance

3 Best Car Insurance Companies of July 2024

In this article, we highlight the top car insurance companies of 2024, based on 25to25.online rankings. These rankings consider factors such as affordability, customer satisfaction, available discounts, and financial strength.

Here are the best car insurance companies for 2024:

Travelers: Best insurance company overall
American Family: Best insurance company for affordability
Geico: Best insurance company for accident forgiveness
NJM: Best insurance company for having few customer complaints
Auto-Owners: Best insurance company for financial strength
Amica: Best insurance company for discounts
State Farm: Best insurance company for customer satisfaction
USAA: Best insurance company for military members

How we found the best auto insurance

25to25’s editorial team analyzed various factors to determine the best car insurance companies. These factors included pricing, discounts, complaint data from the National Association of Insurance Commissioners, and more. As we continue to evaluate additional insurance companies and receive updated market data, our list of the best auto insurance companies may change.
Here are the categories we used to evaluate each car insurance company, along with the weights assigned to each:

Categories and Weightings for Best Car Insurance Companies

  • Financial Strength (30%): Top auto insurers are financially robust, with ratings from independent agencies like AM Best, Moody’s, and Fitch indicating their ability to pay future claims.
  • Consumer Complaints (30%): Leading car insurance companies have a low number of customer complaints relative to their size, maintaining high customer satisfaction. This category is based on complaints reported to state insurance regulators and the National Association of Insurance Commissioners.
  • Ease of Use (20%): The best insurers provide clear information for an easy purchasing experience, including getting quotes, filing and tracking claims, learning about coverage and payment options, and mobile app ratings.
  • Affordability (20%): Top car insurance companies offer various discounts and ways to lower costs, making affordability a key factor in our evaluations.

3 best car insurance companies

Here is our list of the top auto insurance companies for each category, including their average rates and the key features that make them exceptional.

TRAVELLERS CAR INSURANCE

Why Travelers is the Best Overall:
Travelers earned the highest overall score in our 2024 rankings, standing out for its customer-first features and practices. This makes Travelers a top choice for drivers looking for a well-rounded insurance provider.
Travelers offers all standard auto coverage options, along with extras like new car replacement coverage and gap insurance, ideal for those with relatively new vehicles. Additionally, Travelers provides a variety of car insurance discounts.

Geico Car Insurance

Why Geico is the best for Accident Forgiveness : 
Geico provides two options for obtaining accident forgiveness, ensuring your rates won’t rise and you won’t lose your good driver discount after an accident. You can earn it for free by being an accident-free Geico customer for five years, or you can purchase it. Accident forgiveness applies to any eligible driver on your policy but is not available in California, Connecticut, and Massachusetts.

State Farm Car Insurance

Why State Farm is the Best For Customer Satisfaction:
As the largest personal auto insurance company in the country, State Farm secured the top spot among eight large insurers in J.D. Power’s 2023 U.S. Insurance Shopping Study. Additionally, it ranked fifth out of 24 companies in J.D. Power’s U.S. Auto Claims Satisfaction Study and achieved the highest overall satisfaction rating in the Southwest.

Best car insurance companies by state

Auto insurance company availability and their offerings can significantly differ from state to state, meaning the top insurance providers nationally may not necessarily be the best choice for your specific needs.
25to25 conducted an analysis of auto insurance options across various states to compile lists of the best car insurance companies in 15 states. These rankings were based on four key categories: Best overall star rating, budget-friendly options, top customer satisfaction, and ease of use.

How to find the best car insurance for you

While our top car insurance company recommendations can be a starting point in your search for the right policy, everyone’s needs and circumstances vary.
Here are some tips to help you find the best insurance company for your situation:
  • Shop Around: Price is a significant factor, especially with rising car insurance rates. Rates are influenced by factors like age, location, vehicle, and driving history. Since each insurance company weighs these factors differently, comparing car insurance quotes is crucial to find the most affordable option.
  • Check for Complaints: Many people only interact with their insurance company when filing a claim. Before choosing a provider, review NerdWallet’s guide on checking complaints about insurance companies in your area and other relevant information.
  • Review Your Coverage: Ensure you have the right coverage by discussing your needs with an agent or customer service representative. This helps avoid being underinsured or overinsured.
  • Consider Smaller Companies: Smaller insurers often offer competitive prices compared to larger competitors in many areas, and they may provide a more personalized customer experience as well.
  • Strategic Shopping: If you have recent speeding tickets, DUIs, or other violations, wait three to five years after the incident. This waiting period can significantly reduce surcharges, making your premiums more affordable.

Why is car insurance so expensive?

Car insurance costs have been steadily rising, with a 22% increase in March 2024 compared to the previous year, according to data from the U.S. Bureau of Labor Statistics.
Several factors contribute to these price hikes, including:
  1. Choice of Insurance Company: The insurer you select is often the most significant determinant of your car insurance premium. Each insurer uses its own criteria to set rates, so quotes can vary widely between companies.
  2. Age: Younger drivers, particularly teenagers and those in their 20s, typically face higher insurance costs due to their relative lack of driving experience. Rates generally decrease in one’s thirties but may rise again in their seventies.
  3. Location: Residents of areas prone to extreme weather, high crime rates, or heavy traffic often pay more for insurance compared to those in quieter, safer regions.
  4. Driving History: A history of at-fault accidents or driving violations such as speeding tickets or DUIs can significantly raise premiums. Even accidents where you were not at fault may impact rates temporarily, often returning to normal levels within two to five years.
  5. Vehicle Type: The cost of insurance correlates closely with the value of your car. Higher-priced vehicles typically incur higher insurance costs due to increased repair expenses. Insurers also assess the likelihood of theft or accidents associated with specific car models.

types of car insurance

As you search for the right car insurance policy, take time to understand the various types of coverage available. This will help you determine which options to include in your policy.
Explore our tool below to see a breakdown of common insurance coverage types and what each covers:

Should you get minimum or full coverage car insurance?

If your primary concern is finding the lowest price, you might consider opting for minimum coverage car insurance. Minimum coverage provides the bare minimum insurance required to legally drive in your state.
However, it often falls short when it comes to covering expenses from significant accidents, leaving you potentially liable for costs beyond what your insurance covers. It also doesn’t typically cover damages to your own vehicle.
For more comprehensive financial protection, full coverage insurance is recommended. While there’s no standardized definition of full coverage, it generally includes your state’s minimum requirements along with comprehensive and collision insurance. Full coverage comes at a higher cost than minimum coverage, but the added peace of mind may justify the extra expense. If you’re financing or leasing your vehicle, full coverage insurance is likely a requirement.

How can I find the best price on car insurance?

To secure a competitive deal, it’s essential to obtain car insurance quotes from several companies. This approach allows you to compare pricing and identify which companies offer the most affordable rates.
Another effective savings tactic is bundling your auto insurance with another policy, like homeowners or renters insurance. Insuring multiple assets with the same provider often qualifies you for significant discounts.

What car insurance discounts should I look for?

Explore car insurance discounts that align with your driving history. If you maintain a clean record, inquire about a good driver discount. Consider bundling your auto and home insurance with the same company for a bundling discount, or if you have multiple cars, look into a multi-car discount.
Insurance companies offer a range of discounts, so consult your agent to ensure you’re taking advantage of all available options. For instance, opting for paperless billing can lead to savings. If there’s a student driver in your household, inquire about car insurance discounts tailored for students.

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