Best car insurance companies for December 2024

The best car insurance companies in 2024

There is a lot to consider when choosing the best car insurance company. Aside from affordability, you should think about coverage types, discounts, customer service, digital tools, added perks and other factors specific to your coverage needs and preferences. To help you choose the best carrier, Bankrate's insurance editorial team considered these metrics plus carrier availability and compiled this information into our proprietary Bankrate Scores to narrow down a list of the top 10 car insurance companies. We've highlighted standout features from each company to help you decide which insurer might be right for you.

Amica

Geico

Progressive

Safeco

Auto-Owners

State Farm

Travelers

USAA

Nationwide

Liberty Mutual

While we stand by our picks for the top car insurance companies on a national level, it is important to know that the best insurers will vary by state. To determine the best auto insurance company in your state, you’ll want to look at more than just each carrier’s average cost of car insurance. 

Although average price is important, third-party customer satisfaction scores can vary widely between regions. This means that one company might shine in one part of the country but not fare as well in another. To help you find the best car insurance in your state, Bankrate conducted extensive research into the car insurance markets in all 50 states and Washington, D.C. and evaluated the largest carriers by market share using our proprietary Bankrate Score method. 

Car insurance rates by state

To assist our readers no matter where they live, we’ve created the interactive map below of car insurance rates by state. With an understanding of the average rates in your state, you can get a better idea of what’s considered a normal price range for your policy.

Car insurance industry trends: Premium increases likely to continue

Full coverage car insurance premiums average $2,458 per year in November 2024, and while rate increases have slowed, don't anticipate a rate reduction any time soon. 

When pondering why car insurance rates are so high, it's helpful to understand how auto industry costs correlate to car insurance premiums. The cost of car parts has increased over the past few years, partly because of prior supply chain issues and inflation. However, factors like labor shortages and the increase of complex technology used in more vehicles are pushing the already elevated cost to repair these vehicles even higher. As vehicles become more high-tech, they also become more expensive to fix after an accident. According to Bankrate’s analysis of Bureau of Labor Statistics data, the cost of motor vehicle repairs was 48.7 percent higher in September 2024 than in February 2020.

High levels of vehicle theft have also made car insurance more expensive in recent years. 2023 saw over one million vehicle thefts, which was almost an additional one percent increase from 2022, the highest recorded number since 2008. Because the risk of vehicle theft is higher than usual, insurers usually raise comprehensive coverage costs to account for it.

Why is car insurance so expensive?

There’s no single answer for the cost of car insurance. Inflation does factor into it, but it’s not the only thing making car insurance more expensive. For the past several years, insurance companies have been facing high loss ratios, meaning they are paying out more money in claims than they intake in premiums. To stay profitable, insurance companies are all but forced to raise rates — even for drivers without claims or coverage changes.

When a claim does occur, the higher cost of car parts is also met with higher labor costs, leading to insurers paying more for each claim. Higher claims costs, paired with a higher number of claims because of poor post-pandemic driving habits, causes insurance companies to pay more expensive claims more often.

This cycle results in insurance companies filing rate hikes to build back their reserves, leading to higher car insurance premiums for policyholders. While car crash fatalities are finally declining and inflation is slowing, it can take a while for these factors to impact car insurance premiums. Unfortunately, any potential premium reduction from improved driving statistics may be offset by rising extreme weather and vehicle theft claims, along with increases in repair costs.

What are the different types of car insurance?

One of the first steps to finding the best auto insurance for you is to understand your needs. That starts with learning about the key coverage options available and how these options work together to provide financial protection. 

• Bodily injury liability coverage helps pay for injuries incurred by the other driver and their passengers in an at-fault accident. Almost all states in the U.S. require you to carry bodily injury and property damage liability insurance in order to drive legally.
• Property damage liability coverage helps pay for repairs to the other driver's car or any property you damage in an accident that you are found to have caused. This may include stationary objects such as fences or lampposts.
• Uninsured and underinsured motorist coverage helps pay for your injuries (and, in some states, your property damage) if it was caused by a driver who either lacks sufficient coverage or any coverage at all.
• Personal injury protection (PIP), also known as no-fault insurance and only available in certain states, pays for medical expenses you and your passengers incur following an accident, regardless of fault. It also accounts for non-medical expenses incurred as a result of an accident, such as lost wages or the cost of childcare. 
• Medical payments coverage is similar to PIP insurance coverage but includes only payments for medical expenses. It is required in some states and optional in others.
• Comprehensive coverage is for a broad range of non-collision-related damage. This can include vehicle theft, fire, weather damage and more. Comprehensive coverage can also help if you hit an animal. 
• Collision coverage helps cover damage to your vehicle if you’re involved in a collision, whether you hit another vehicle, a stationary object or a pedestrian. 

While the main types of car insurance coverage are listed above, every carrier is different and may offer unique or specialized coverage options. For instance, if you purchase a brand-new vehicle, you may be interested in new car replacement coverage. Or, if the roads near you are full of potholes that could pop your tire, roadside assistance might be worth looking into.  Speaking with your agent and reviewing your options online can help you find coverage tailored to your needs. 

Minimum vs. full coverage car insurance

Minimum and full coverage insurance are terms commonly used to describe an auto insurance policy. Understanding the vast distinction between the two is paramount when searching for the right levels of financial protection. 

Minimal coverage refers to a bare-bones policy that carries only the state-mandated insurance limits. Typically, this includes only bodily injury and property damage liability at the lowest limits allowed, but depending on state coverage requirements can also include other coverage types, such as personal injury protection. This option covers damage to others up to the policy limit but does not pay for damage to your vehicle if you are at fault for an accident, which is one reason it is usually the cheapest available option.

A policy with liability limits higher than the state requires but without physical damage coverage, would be considered a liability-only policy instead of a minimal coverage policy.

Full coverage insurance includes liability coverage plus comprehensive and collision coverage. The limit of liability can range from state minimums up to the highest option available by the insurance provider, but the key difference is that a full coverage policy provides financial protection for your vehicle whether you are at fault for an accident, a victim of theft or vandalism or experience weather damage. 

Since there isn't an industry-standard definition of full coverage, some insurance providers may add roadside assistance, gap insurance and rental reimbursement to your policy if you request full coverage, so work closely with your agent and read your paperwork carefully to avoid paying for more coverage than you need. 

Should you get minimum or full coverage car insurance? 

The right coverage amount for you will strike a balance between how much you can reasonably afford for your policy and how much financial risk you’re willing to assume. If you're mostly concerned with getting a cheap premium, then a minimum coverage car insurance policy might work best for you: it meets your state’s legal insurance requirements and almost always costs less than full coverage. Plus, minimum coverage could be the best insurance for older cars or ones near the end of their driveable years. However, with minimum coverage, you could wind up with significantly higher out-of-pocket costs after an accident. This kind of car insurance only helps pay for the damage you cause in an accident. If you’re at fault for an accident and there’s damage done to your vehicle, you would be left footing the bill on your own.

A full coverage car insurance policy will increase your premium, but it comes with broader protection for your vehicle and finances. Vehicle repairs and medical expenses after an accident can get expensive fast, and purchasing more car insurance coverage can act as a valuable financial safety net. Bankrate found that only 44 percent of U.S. adults are able to spend $1,000 or more from their emergency savings. With that in mind, many insurance experts suggest opting for full coverage or at least purchasing higher liability limits than the state minimums.

What factors impact the cost of car insurance?

The coverage you choose is not the only thing that influences the cost of your policy. Insurance providers use unique underwriting algorithms to determine how much of a risk you are to insure and the likelihood that you will file a claim. Not all carriers weigh each factor the same, and they may not be able to take certain factors into account depending on your state’s laws.  

• Driving record: In general, drivers with a clean driving record will be awarded the lowest possible rates by insurers, since they are considered to be at low risk for accidents or other claims. If you have any moving violations such as speeding tickets or DUIs, on the other hand, you may not be offered low rates. In some cases, individuals with multiple infractions may be considered high-risk drivers, which could lead to some insurers turning them down for coverage.
• Age and driving experience: Younger drivers have less experience on the road, leading to a higher accident frequency. This can often lead to higher car insurance rates. Unless you’re in Hawaii or Massachusetts, which ban age as a rating factor, the best company for drivers insuring young drivers may be ones that offer student or telematics discounts to offset premium increases.
• State and city: Your location plays a primary role in determining rate. Drivers who live in busy urban areas, for example, where car theft is common and congested traffic leads to an increased rate of accidents, may pay more than those in more suburban or rural areas. A state's insurance laws also may influence rates. Even your car's location when parked — in a garage or on the street — can affect your rate.
• Vehicle make and model: The best insurance for cars with easy-to-source replacement parts may be cheaper than ones for more high-end vehicles. Driving a vehicle that comes equipped with safety features may also help you save on insurance. 
• Credit-based insurance score: Unless you live in California, Hawaii, Massachusetts or Michigan, your credit history will factor into your insurance premium. Drivers with poor credit generally pay more, while drivers with good or excellent credit tend to pay less. 
• Insurance lapse history: If you’ve allowed your car insurance coverage to lapse, your insurer may charge more for your policy. A lapse in coverage could signal that you are a higher-risk driver and therefore more likely to file a costly claim. 

How much does car insurance cost?

Proprietary data from Quadrant Information Services indicate that the national average cost of car insurance currently sits at $2,458 per year for a full coverage policy and $678 for minimum coverage. However, these figures are just a baseline. Car insurance is highly individualized, and rates vary based on numerous personal factors.

Driving incidents can also affect the total cost of your car insurance. Drivers with speeding tickets could see their premiums cost more compared to drivers with clean records. Your state’s laws and your age, gender and credit history can also determine how much you pay for car insurance. For a more specific overview, you might want to research the average insurance cost in your state.

Frequently asked questions