Best Car Insurance Companies in USA 2023

Best Car Insurance Companies in USA 2023

USAA ranks #1 among the best auto insurance companies, followed by American Family at #2. State Farm was third, while Geico and Nationwide tied for fourth. We analyzed rates from more than 30 car insurance companies based on driving history, age, credit, insurance level, and performance in customer service, claims handling, and customer loyalty.

Top Rated Car Insurance Companies

Also Read: What Is the Role of a Car Accident Lawyer?

The best information about car insurance companies
USAA is the number one insurance company in our data, but it is not available to the public. No. 2 American Family is probably the best car insurance company for many drivers.

USSA

advantage:

Available in all 50 states and Washington DC
Ranked #1 in customer service according to policyholder surveys

lack of:

Policy for military personnel, veterans, and their families only

USAA is the No. 1 insurer. 1 in our rankings of the best car insurance companies of 2023. Our results ranked the company first in many of the subcategories we tested, including customer service, most likely to recommend, and most likely to renew. USAA was second only to American Family in Case Management and tied with American Family in the Customer Loyalty subcategory. The company also ranks first in our rankings of low-cost car insurance companies with low average rates in several categories.
USAA car insurance is only available to members of the military community, so most consumers want to learn more about what other insurance companies offer. advantage:

American Family

advantage:
Claims handling ranked first in our customer survey analysis
Received high marks for customer service in the same survey

lack of:

Only available in 19 states
Many competitors offer lower prices

American Family ranked second in our overall ranking of the best auto insurance companies with a score of 4.3 out of 5, and was at or near the top in most of the subcategories included. The company ranked first in customer loyalty and case handling. In all other subcategories, the American family ranked second or third. The company’s prices are among insurance companies, and it ranks fifth in our rankings of cheap car insurance companies. “American Family” posted the biggest ratings improvement from last year, climbing eight spots to take second place overall.

State Farm

advantage:
Current policyholders value customer service
Premiums are generally lower than the national average

lack of:
Policies can only be purchased through local agents

With a score of 4.2, the state farm ranks third on our scale. The company performed well in every subcategory we ranked, including No. 2 in the Best Senior Auto Insurer category. State Farm tied for second with American Family in the customer service category and third in the claims handling subcategory. National Farm rates were the third lowest overall, and the company performed well in several specific rate categories, including teenage driver and seniors coverage.
It is one of the cheapest companies for average drivers after a speeding or accident and one of the cheapest after a DUI. Offers some of the lowest average APRs of any company we’ve rated

Geico

High scores in claims processing, customer loyalty, and customer service based on policyholder feedback

lack of:

The average proportion of drunk drivers in our analysis was higher than most service providers

In our ranking of the best auto insurance companies of 2023, Geico scored a 4.1, tied for fourth with Nationwide. This is a drop from last year when the company finished in third place. Geico ranks highly in every subcategory in our rating, which includes the top five scores for customer service, claims handling, and customer loyalty.
It is also one of the cheapest car insurance companies on the list. Ranked #2 behind USAA in our ranking of cheap auto insurance companies, Geico offers affordable rates in many categories, including lower premiums for teenage drivers and drivers looking for minimal coverage.

Nationwide

Customer service and claims processing score above average according to policyholder surveys
Affordable rates for drivers with bad credit

lack of:

The average rate for the lowest cover is higher than the competition
Insurance premiums for drunk drivers are higher than the national average

We rank fourth nationwide with Geico with an overall score of 4.1. The company ranked 4th in the customer service subcategory, 3rd in the claims review subcategory and 6th in customer loyalty. It ranks in the top five most likely to be recommended and most likely to be updated.
Nationwide ranks near the middle in our rankings of cheap car insurance companies, coming in sixth overall. advantage:

Farmers

Current policyholders value customer service
Most of the surveyed clients are satisfied with the handling of cases

lack of:

In our analysis, average annual premiums are higher than most other insurers

In our overall ranking of the best auto insurance companies for 2023, Farmers tied for sixth place with Travelers, Allstate, and AAA. The company ranks fourth in the customer service subcategory, third in claims processing, and sixth in the customer loyalty subcategory. Farmers ranked last in the subcategory, which is likely to be updated.
Farmers tend to offer the highest average insurance rates in our research and are ranked ninth in our latest rankings of cheap car insurance companies. advantage:

Travelers

The average annual growth rate is lower than the national average

lack of:

The surveyed policyholders give poor ratings to claims review

Travelers maintain their position in our rankings from last year: No. 6, equal to four other insurance companies. Of all the subcategories in our rankings, Travelers has the highest customer service at #4. It ranked seventh in claims handling, sixth in customer loyalty, and last in the Referral subcategory.
Traveler’s overall rates are reasonable and premiums are below the national average in every category we looked at, including rates for teen drivers, teenage drivers and older drivers, and insurance costs after a ticket or DUI. advantage:

Allstate

Easily open new policies based on customer feedback

lack of:

Prices are well above the national average

Allstate ranks sixth in both customer loyalty and most likely to recommend in all of our subcategories. It also ranks sixth overall among the best car insurance companies of 2023. It was ranked seventh or lower in customer service and claims handling and will likely renew subcategories.
The company is one of the most expensive in our rankings, with premiums higher than the national average in all price categories we looked at, including premiums for teenage and older drivers, as well as speeding or post-accident premiums. It ranks tenth in our rankings of cheap car insurance companies.

AAA

advantage:

Offer various discounts to maximize your savings
Offers additional coverage such as hole coverage

lack of:

In general, interest rates are higher than the national average

AAA ranks 10th in two subcategories of our ratings (customer service and claims processing). But the company ranked fourth in customer loyalty and fifth in most likely to renew. It was also ranked #6 in the “Most Likely to Recommend” category. Overall, AAA ranks sixth (four positions) in our ranking of the best auto insurance companies for 2023.
AAA’s auto insurance trial rate is higher than the national average in several categories. progress

Progressive

advantage:

Lower than average annual rates for drivers with bad credit or DUI
Offer various discount options

lack of:

Teenage drivers have the second-highest average
According to policyholder reviews, customer loyalty ranks last

Progressive is ranked 10th in our ranking of the best car insurance companies. It ranks 10th in the customer loyalty subcategory. It fared slightly better in other subcategories but remained in the bottom half of the rankings in each subcategory. Our analysis showed an advanced 8th in customer service, 7th in complaints handling, and 9th most likely to recommend. Our research also found that the progressive scores were higher than the national average in many categories.

Also, Read Car Insurance 5 Protecting Your Vehicle and Finances.

What is the best car insurance company?

According to our analysis, USAA is the best car insurance company. But with USAA closed to the public, American Family #2 may be the best choice for many drivers. State Farm, Geico, and Nationwide also made our rankings. However, the best car insurance company for you will depend on a number of factors, including your age, location, driving history, and the features that are most important to you, whether it’s great customer service, a solid reputation, or efficient claims handling.

Part of our analysis included surveying current policyholders at each of the top auto insurance companies. Read on to find out how existing customers rate their auto insurance provider in several customer service-oriented categories.

Best Customer Service: USAA, American Family, and State Farm

USAA ranked No. 1 in the customer service subcategory, and American Family and State Farm ranked No. 2. Our survey found that more than 73% of USAA customers who did not file a claim said they were completely satisfied with the company’s customer service.

Among USAA customers who have filed a claim, that number drops to 53%. Because USAA auto insurance policies are only available to military personnel and their families, most customers will consider other insurance companies in our evaluations.
More than 65 percent of US household customers who did not file a claim were completely satisfied with the level of customer service, compared to just under 58 percent of policyholders who did file a claim. About 60% and 54% of state farm clients responded to our survey, respectively.
Nationally, Geico, Travelers, and Farmers rank fourth in the subcategory. Best for Claims Processing: American Family

Best for Claims Handling: American Family

American Family ranked No. 1 in the claims processing subcategory with a score of 4.3, beating USAA in second place (4.2). According to our survey, more than 61% of US homeowners say they are completely satisfied with how easy it was to file a claim, and 56% are completely satisfied with how their claim was resolved.

More than half of American Family customers (just under 52%) are completely satisfied with the status updates they receive from the company during the claims process. Following American Family and USAA, State Farm, Farmers, Geico, and Nationwide came in third. Progressive, Travelers, and Allstate tied for 7th, while AAA tied for 10th. Most likely to recommend: USAA and American Family

Most Likely To Be Recommended: USAA and American Family

USAA was the No. 1 insurer in the most likely to be recommended subcategory, ahead of No. 2 American Home Insurance. Our research shows that 63% of USAA policyholders who have not filed a claim are likely to recommend the company to others looking for auto insurance. Among USAA customers who have filed a claim, that number drops to about 59 percent. USAA only sells its auto insurance products to the military, so most people in the insurance market will need to research policies from other companies.
More than 40% of U.S. homeowners who have not filed a claim say they are likely to recommend an insurance company to someone looking for a policy, while more than 62% of policyholders who have filed a claim say they are likely to will recommend the insurance company submits a proposal.
Other companies that customers can recommend include State Farm, Nationwide, and Geico, which ranked third in our ranking in this subcategory. Likely to renew: USAA and American Family

Most Likely To Be Renewed: USAA and American Family

According to our survey results, when asked if they would renew their policies with USAA, more than 69% of customers who have not yet filed a claim said they likely would. When policyholders filing claims were asked the same question, the numbers didn’t change much: More than 66 percent said they were likely to renew their policy. These results helped USAA earn the No. 1 spot in the “Most Likely to Renew” subcategory.

Company no. 2 in this subcategory, American Family, also performed well in our consumer survey. About 65% of those who have not yet filed a claim are very likely to renew with American Family, and among those who have filed, that number rises to more than 68%.
Nationwide and State Farm rank third in this subcategory. Geico is number five.
Best customer loyalty: USAA and American Family

Best for Customer Loyalty: USAA and American Family

USAA and American Family ranked No. 1 in the customer loyalty subcategory. Both companies performed well in our survey when it came to policyholders’ willingness to recommend them. USAA and American Family also ranked No. 1 and No. 2, respectively, in the “Most Likely to Renew” subcategory. Nationwide and State Farm were third and Geico fifth.

Car Insurance Rates by State

STATE/CITY OVERALL AVERAGE RATE
Alabama $1,354.00
Alaska $1,294.00
Arizona $1,626.00
Arkansas $1,814.00
California $1,782.00
Colorado $1,663.00
Connecticut $1,567.00
Delaware $2,231.00
Florida $2,551.00
Georgia $1,432.00
Hawaii $1,241.00
Idaho $992.00
Illinois $1,266.00
Indiana $1,190.00
Iowa $1,215.00
Kansas $1,486.00
Kentucky $2,104.00
Louisiana $2,734.00
Maine $949.00
Maryland $1,468.00
Massachusetts $1,399.00
Mississippi $1,505.00
Missouri $2,055.00
Montana $1,525.00
Nebraska $1,569.00
Nevada $1,913.00
New Jersey $1,706.00
New Mexico $1,530.00
New York $1,808.00
North Carolina $1,165.00
North Dakota $1,300.00
Ohio $1,083.00
Oklahoma $1,638.00
Oregon $1,281.00
Pennsylvania $1,395.00
Rhode Island $1,831.00
South Carolina $1,813.00
South Dakota $1,577.00
Tennessee $1,264.00
Texas $1,716.00
Utah $1,407.00
Vermont $1,053.00
Virginia $1,280.00
Washington $1,285.00
Washington, DC $1,727.00
West Virginia $1,532.00
Wisconsin $1,145.00
Wyoming $1,341.00