Best Car Insurance Companies (2025)
State Farm is the best large car insurance company for most drivers, based on a mix of rates, customer service ratings and financial strength. State Farm offers full-coverage policies at $1,604 per year, on average.
And although Erie Insurance is not available in every state, it still stands out as the best midsize car insurance company. Its full-coverage rates average $1,375 a year.
Best car insurance companies
Best car insurance companies at a glance
The best car insurance for you depends on several factors, including your driving record, age and the area where you live. We analyzed rates, satisfaction rankings and complaint data to help you start your search.
| Company | Average full-coverage rate | Difference from U.S. average | Claims satisfaction score** | LendingTree score |
|---|---|---|---|---|
| Texas Farm Bureau | $1,036 | -51% | 686 |  |
| MMG | $1,096 | -48% | Not rated | |
| Island Insurance | $1,319 | -37% | Not rated | |
| USAA* | $1,322 | -37% | 739 | |
| Erie | $1,375 | -35% | 700 | |
| Westfield | $1,481 | -30% | 676 |  |
| State Farm | $1,604 | -24% | 657 |  |
| American Family | $2,019 | -4% | 660 | |
| North Star Mutual | $2,265 | 8% | Not rated | Not rated |
| Amica | $2,784 | 33% | 709 | |
| Allstate | $2,960 | 41% | 635 |  |
*USAA only sells insurance to members of the military and their families.
**Source: J.D. Power 2024 U.S. Auto Insurance Study. Higher is better; 644 is average.
Best large company: State Farm
- Average full-coverage rate: $1,604 a year ($134 a month)
- Claims satisfaction: Very good
- Complaint rating: Good
- Availability: Nationwide
State Farm’s ability to combine low rates with high customer service scores has helped it become the nation’s largest car insurance company. State Farm charges less for full-coverage car insurance than every other large company — except USAA, which is only available to the military community.
Along with cheap rates, State Farm offers a great multi-policy discount that can save you up to $1,273 on your car and home insurance policies.
Pros
State Farm offers the cheapest average full-coverage rates among large car insurance companies
Discounts for bundling your auto and home insurance can make its rates more affordable
The company’s easy-to-use website makes it a breeze to connect with an agent near you
Has a local presence, with 19,000 agents all over the U.S.
Cons
State Farm doesn’t offer accident forgiveness coverage, which protects you from a rate increase after your first accident
Best midsize company: Erie
- Average full-coverage rate: $1,375 a year ($115 a month)
- Claims satisfaction: Very good
- Complaint rating: Good
- Availability: 12 states Erie sells car insurance in the following states: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and Wisconsin. plus Washington, D.C.
Even though Erie is only available in 12 states and Washington, D.C., the company holds its own against larger competitors. Along with offering low rates, Erie also ranks well for customer service.
As part of its comprehensive coverage, Erie offers some unique coverages, which include glass repair and locksmith services.
Pros
Erie has lower rates than most large and midsize companies
Add-on coverages include protection from a rate increase after an accident
Roadside assistance includes limited coverage for locksmith services, which many other companies don’t cover
Cons
Only available in a limited number of states
Best small company: Westfield
- Average full-coverage rate: $1,481 a year ($123 a month)
- Complaint rating: Very good
- Availability: 10 states Westfield sells auto insurance in the following states: Illinois, Indiana, Iowa, Kentucky, Minnesota, Ohio, Pennsylvania, Tennessee, West Virginia and Wisconsin.
Westfield provides solid nuts-and-bolts auto insurance coverage at a reasonable price in the 10 states it serves. It also offers a few optional coverages, such as loan and lease gap coverage. This helps cover the cost difference if your totaled car is worth less than what you owe on your car loan or lease.
Along with auto insurance, Westfield offers boat, RV and motorcycle insurance, as well as homeowners insurance — this makes it easier to get discounts for bundling multiple policies.
Pros
Westfield’s strong complaint rating reflects an ability to meet customer expectations
Bundling your home and auto can get you extra perks for both policies, including gap coverage for your car and replacement cost coverage for your belongings
The company’s rates for drivers with a prior ticket are also reasonable
Cons
Only available in 10 states
No online quotes
Best for claims: Amica
- Average full-coverage rate: $2,784 a year ($232 a month)
- Claims satisfaction: Very good
- Complaint rating: Very good
- Availability: 49 states plus Washington, D.C. (not available in Hawaii)
If you’re ever in an accident, you don’t want your insurance company to add to your frustration. Amica has the best claims satisfaction rating from J.D. Power. The rating reflects the company’s ability to settle claims in a fair, convenient manner.
Amica also offers Platinum Choice Auto as its premium package. This package includes new car replacement coverage, which replaces your new car if it’s totaled. Platinum Choice Auto also includes rental car coverage that doesn’t have a daily limit and has a $5,000 maximum.
Pros
Amica has excellent customer service ratings
Optional glass coverage provides deductible-free window repair or replacement
Cons
Amica’s rates are 74% higher, on average, than those from State Farm
Best complaint rating: American Family
- Average full-coverage rate: $2,019 a year ($168 a month)
- Claims satisfaction: Average
- Complaint rating: Very good
- Availability: 19 states
Insurance commissioners in each state regularly review car insurance customer complaints. Those that lead to a finding of fault are called “confirmed complaints.” American Family has less than one-fifth as many confirmed complaints as is typical for a company of its size.
If you’re also a safe driver, American Family can be a good choice. American Family offers a safe driving program that helps drivers become safer on the road by offering up to a 20% discount based on how safe a driver you are.
Pros
American Family is well respected with strong customer service ratings
You can save money by bundling your American Family auto insurance with home, renters or motorcycle insurance
Mileage-based MilesMyWay program lets you save money if you don’t drive much or have a car you only drive now and then
Cons
The company’s average rates are 26% higher than State Farm’s
American Family is only available in 19 states, though its sister company — Connect, Powered by American Family Insurance — is available in more than 40 states and Washington, D.C.
Best policy features: Allstate
- Average full-coverage rate: $2,960 a year ($247 a month)
- Claims satisfaction: Very good
- Complaint rating: Average
- Availability: Nationwide
While a low price is important for upfront savings, Allstate — the fourth-largest car insurance company in the U.S. — offers policy features that may save you money down the line.
Allstate also offers many different coverage types, such as classic car insurance. Plus, you can save up to 25% if you bundle your home and car insurance policies.
Pros
Deductible Rewards program lowers your deductible at no extra cost when you avoid claims
Allstate’s Accident Forgiveness program protects you from a rate increase after your first accident
Pay-per-mile Milewise program can save you money if you don’t drive much or have a car you don’t drive often
Cons
Allstate charges an average of 85% more for full-coverage car insurance than State Farm
Best for military families: USAA
- Average full-coverage rate: $1,322 a year ($110 a month)
- Claims satisfaction: Very good
- Complaint rating: Average
- Availability: Nationwide
USAA serves the military community with reliable car insurance at an affordable price. USAA caters to military members with its products and discounts. You can save up to 15% when you store your car on base, for example.
USAA is also highly rated for its customer service. The company has the highest overall customer satisfaction ratings from J.D. Power in all 11 U.S. regions. It also rewards good drivers with savings of up to 30% if they use its SafePilot program.
Pros
USAA’s low rates extend to young drivers in military families
Mileage-based insurance provides more savings if you don’t drive much or have a car you don’t use very often
Cons
Customers don’t get an individual agent to work with on an ongoing basis
Best for discounts: Amica
Amica offers a variety of discounts, as well as great savings. You can save up to 30% if you bundle your car insurance with home, umbrella or life insurance policies from Amica. You can also save up to 25% if you insure two or more cars.
Amica offers a few discounts that stand out from competitors, too, including a legacy discount for drivers. If you’re under the age of 30 and have parents who’ve had a car insurance policy with Amica for at least five years, you may qualify for its legacy discount.
Amica Mutual offers these discounts:
- Loyalty
- Multi-policy
- Multicar
- Good student
- Legacy
- Student away at school
- Young driver training
- Accident-free
- Anti-theft
- Defensive driver training
- Electronic stability control
- Passive restraints
- Forward-collision warning
- Adaptive headlights
- Paid in full
- Autopay
- Paperless
Best rates for drivers with a prior incident: Texas Farm Bureau and MMG
Drivers looking for the best car insurance with a bad driving record find that Texas Farm Bureau has the best full-coverage rates after a ticket and MMG is the cheapest after an accident.
Small and midsize companies offer some of the best car insurance rates for drivers with either a ticket or an accident.
Texas Farm Bureau’s average rate for drivers with a speeding ticket is $1,036 a year, or $86 a month. This is less than half the national average rate after a ticket ($2,355 a year).
Best car insurance rates for drivers with a speeding ticket
| Company | Annual rate |
|---|---|
| Texas Farm Bureau | $1,036 |
| NYCM | $1,327 |
| Vermont Mutual | $1,404 |
| Island Insurance | $1,431 |
| MMG | $1,444 |
| Westfield | $1,481 |
| U.S. average | $2,355 |
MMG’s average rate for drivers with a prior at-fault accident is $1,346 a year. The national average rate after an accident ($2,817 a year) is more than double MMG’s average rate.
Best car insurance rates for drivers with an accident
| Company | Annual rate |
|---|---|
| MMG | $1,346 |
| Vermont Mutual | $1,404 |
| NYCM | $1,610 |
| Texas Farm Bureau | $1,639 |
| Island Insurance | $1,762 |
| Erie | $1,806 |
| U.S. average | $2,817 |
Best rates for drivers with bad credit: MMG
Available in five states, MMG has the best car insurance for drivers with bad credit at an average of $1,754 a year for full coverage.
Small and midsize companies account for four out of the five best car insurance rates for drivers with bad credit.
Nationally, drivers with bad credit pay an average of 84% more for car insurance than those with good credit. However, a few states, including California, Hawaii and Massachusetts, don’t let insurance companies factor credit into your rate.
Find out your credit score for free at LendingTree Spring before you shop for car insurance.
Best car insurance companies with bad credit
| Company | Annual rate |
|---|---|
| MMG | $1,754 |
| Acuity | $2,051 |
| Hanover | $2,052 |
| Westfield | $2,097 |
| Concord | $2,116 |
| U.S. average | $3,630 |
Best rates for young drivers: Island Insurance
Island Insurance, which is only available in Hawaii, has the best car insurance rates for young drivers. Island charges 18-year-olds an average of $418 a year for liability-only car insurance. The company also has the cheapest full-coverage rates for teens at around $1,319 a year.
Best car insurance rates for 18-year-old drivers
| Company | Liability-only coverage | Full coverage |
|---|---|---|
| Island Insurance | $418 | $1,319 |
| North Star Mutual | $760 | $4,803 |
| Texas Farm Bureau | $776 | $1,719 |
| NYCM | $828 | $2,329 |
| Vermont Mutual | $1,011 | $2,960 |
| Hanover | $1,052 | $4,242 |
| U.S. average | $2,178 | $5,501 |
Best for rates: Texas Farm Bureau and North Star Mutual
Texas Farm Bureau offers the cheapest full-coverage rates for adult drivers with a clean record. North Star Mutual has the cheapest rates for liability-only policies.
Cheapest companies for car insurance
| Company | Average full-coverage rate | Average liability-only rate |
|---|---|---|
| Texas Farm Bureau | $1,036 | $404 |
| MMG | $1,096 | $407 |
| Island Insurance | $1,319 | $418 |
| USAA* | $1,322 | $437 |
| Erie | $1,375 | $516 |
| Westfield | $1,481 | $439 |
| State Farm | $1,604 | $661 |
| American Family | $2,019 | $751 |
| North Star Mutual | $2,265 | $342 |
| Amica | $2,784 | $1,120 |
| Allstate | $2,960 | $1,344 |
Best companies by state
Although Texas Farm Bureau and MMG offer some of the cheapest car insurance rates for a full-coverage policy nationwide, you might find cheaper rates from other insurers in your state. State Farm offers the cheapest rates in 21 states.
Cheapest car insurance company by state
| State | Company |
|---|---|
| Alabama | State Farm |
| Alaska | State Farm |
| Arizona | State Farm |
| Arkansas | State Farm |
| California | Geico |
| Colorado | State Farm |
| Connecticut | Travelers |
| Delaware | State Farm |
| Florida | State Farm |
| Georgia | Farm Bureau |
| Hawaii | Geico |
| Idaho | State Farm |
| Illinois | Country Financial |
| Indiana | Travelers |
| Iowa | State Farm |
| Kansas | Travelers |
| Kentucky | Farm Bureau |
| Louisiana | Farm Bureau |
| Maine | Travelers |
| Maryland | State Farm |
| Massachusetts | Geico |
| Michigan | Progressive |
| Minnesota | Travelers |
| Mississippi | State Farm |
| Missouri | American Family |
| Montana | State Farm |
| Nebraska | State Farm |
| Nevada | Travelers |
| New Hampshire | Hanover |
| New Jersey | Geico |
| New Mexico | State Farm |
| New York | Progressive |
| North Carolina | Erie |
| North Dakota | State Farm |
| Ohio | Geico |
| Oklahoma | State Farm |
| Oregon | State Farm |
| Pennsylvania | Travelers |
| Rhode Island | Travelers |
| South Carolina | Auto-Owners |
| South Dakota | State Farm |
| Tennessee | Erie |
| Texas | Texas Farm Bureau |
| Utah | Progressive |
| Vermont | State Farm |
| Virginia | Farm Bureau |
| Washington | State Farm |
| Washington, D.C. | Geico |
| West Virginia | Erie |
| Wisconsin | Erie |
| Wyoming | State Farm |
How to find the best car insurance company
Think about the coverages you need
Having a general idea of the type and amounts of car insurance you need ahead of time can help speed up the shopping process.
Use the declarations from your current auto policy (if you have one) as a starting point. You can share your current policy’s limits and coverages with the insurance companies you contact and see if they can give you a lower rate and/or better coverage.
As an alternative, discuss your options with an insurance agent for an initial quote. Then, just shop the quote around with other companies. Quotes are free, and car insurance companies expect savvy customers to shop around.
Don’t judge car insurance companies by size alone
While you shop for car insurance, get quotes from car insurance companies of all sizes.
Large companies tend to have more resources to invest in advertising and technology. However, small and midsize companies often offer lower rates and/or better customer service than their larger competitors.
Compare coverages as well as rates
As you compare, account for any differences in the coverages shown in each quote. A quote that costs a little more than others may be a better deal if it provides a lot more coverage.
Consider car insurance company ratings
While price is important, a car insurance company’s customer service ratings also matter.
Factors like the ease of communication with an agent and the convenience of a company’s digital platforms are worth considering, too.
Sometimes, paying a little more for insurance is worth the price if the company you choose has a track record for reliable service and is easy to work with.
Frequently asked questions
Rates, customer service ratings and financial strength are the key factors used to determine the best car insurance companies.
Since car insurance companies are secretive about their rate formulas, you usually have to compare quotes from several companies to find the best price. Quotes are free, no-obligation estimates of the coverages and rates you are eligible to receive.
Most car insurance companies offer the same basic coverages, like liability, collision and comprehensive. Some of the best companies also offer accident forgiveness and deductible savings. A few offer pay-per-mile insurance for occasional drivers, too.
The best car insurance companies give discounts to young drivers for getting good grades and older drivers for completing a defensive driving course.
They also offer most of the normal discounts: those for bundling your auto and home insurance, avoiding claims and driving a car with an antitheft device, among others.
State Farm is the most popular car insurance company, based on business volume, followed by Progressive and Geico. The three companies account for 45% of the U.S. auto insurance market.
Spikes in traffic accidents and car repair costs have increased the amounts that insurance companies have had to pay out in claims in recent years. Insurance companies are passing these costs along to customers in the form of higher rates. This is making car insurance more expensive for many drivers.