What Are Some Good Car Insurance Companies for Beginners?

When shopping for car insurance, the company that you choose can have a significant impact on how satisfied you are with your policy. Every person has different needs. This means that every customer will have different requirements. Customers who are looking for agents in their area might choose Allstate or State Farm, while customers looking for strong online tools might prefer Geico and Progressive.

Bankrate’s editorial team compared dozens of insurers to help narrow down the top choices. Each carrier was assigned a Bankrate score based on their average rates. This information was obtained from Quadrant Information Service. We also looked at the financial strength of each company and customer experience ratings from trusted third-party sources.

Our Bankrate Score will help you compare these companies to the rest of your market when narrowing down the top car insurance companies. While a company with a score of 4.5 or higher may be your first choice, you might find that another company offers more than you are looking for, such as a car rate within your budget, even though it is lower down on the list. The best car insurance company is likely to be the one that aligns with your needs the most.

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We explain below why each car insurance company is on our list, and what makes each one stand out in terms of its policy options. This information is tailored to everyday drivers. We also offer a comparison of car insurance quotes that shows how your driving record and credit history may affect your rates. Keep in mind that not all states allow insurance companies use credit ratings to determine your premium. Check your state’s insurance regulations for more information about credit and how it might affect your car insurance rate.

USAA

This is why USAA made our list. Not many auto insurance companies offer discounts or coverage for military and veteran service members. However, USAA’s policies are designed specifically to meet these needs. USAA has the highest customer satisfaction scores in every part of the U.S. and policyholders love its outstanding customer service and claims processing. USAA is available only to veterans, active military personnel, and their families.

Ratings from third-parties

  • J.D. J.D.
  • AM Best: A++ (Superior) financial strength rating
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USAA writes car insurance policies across the U.S. for military personnel and veterans, as well as their eligible family members. USAA members have many benefits. The company’s SafePilot program allows members to use the designated app to earn safe driving rewards. USAA policies are designed to protect you during deployment and offer discounts for garaging vehicles on military bases.

Amica

This is why Amica made it onto our list. Amica has been rated the best auto insurance company in New England for over 20 years. This gives customers peace of mind and a business model that is customer-focused. This allows you to enjoy a fantastic experience while still paying a low premium. Amica acknowledges its customers by paying dividends every year and giving money back when possible.

Ratings from third-parties

  • J.D. J.D.
  • AM Best: A+ (Superior) financial strength rating

Amica offers auto insurance only in a few states. However, if you are located in the service area of Amica, you may be eligible for excellent discounts and prompt claims processing. Amica is one carrier that offers drivers the option of receiving up to 20% back in dividends on their annual premiums. This dividend policy benefit reduces your long-term insurance cost and offers flexible dividend payment options. These typically range between 5%-20% of your annual Premium. Amica policyholders have the option of applying the dividends to future policy premiums.

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Geico

This is why Geico made our list. Geico is a well-known, trusted auto insurer. It also offers one of the most comprehensive mobile policy-management apps on the market. Geico was awarded top marks in a customer satisfaction survey. Policyholders praised the company’s online experience and praised its trustworthiness in protecting their personal information.

Ratings from third-party sources

  • J.D. Power: 871/1,000 (#12).
  • AM Best: A++ (Superior) financial strength rating

Geico offers auto insurance across all 50 states and Washington, D.C., as well as regional offices in over 10 major cities. These discounts can save qualifying drivers up to 10% on their auto insurance premiums and individual coverages. Geico offers one of the most user-friendly mobile apps compared to other competitors, based on their app scores. Geico’s app gives policyholders access to mobile ID cards, roadside help, vehicle service history and vehicle damage estimates. It also provides safety recall updates.

State Farm

This company was chosen because: State Farm is a great option for people who need in-person advice or want to get to know their agent. You can trust that you will be able to talk with an agent in your area about your insurance needs. There are over 19,000 agents across the United States.

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Ratings from third-party sources

  • J.D. J.D.
  • AM Best: A (Excellent!) rating of financial strength

State Farm retains the largest private passenger auto insurance market share in the U.S. A mobile app allows drivers to manage their policies, bills and directly interact with their local agent. While State Farm has discounts available for good driving or being accident-free, the company maintains lower average rates after an accident, making it one of the best car insurance companies for drivers who are working to improve their driving record or habits. State Farm drivers are paid $654 less per year than the national average after an accident.

Erie

This is why Erie auto insurance made it to our list. Erie offers exceptional customer service and allows policyholders the opportunity to plan ahead for their car insurance budget. Customers who live in the covered areas receive low rates and a Rate Lock feature. This helps to prevent premiums from rising over time.

Ratings from third-party sources

  • J.D. J.D.
  • AM Best: A+ (Superior) financial strength rating
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Erie is only available in 12 states and Washington, D.C., but is a great option for young drivers with some of the lowest car insurance premiums for 18-year-olds. Erie’s Rate Lock function could allow you to keep your current rate even if your policy is modified. This can be a big benefit financially. Erie’s auto insurer provides protection for your pet in the event that it is injured in an accident. It also offers personal property coverage up to $350 for physical damage. Additionally, Erie offers a special add-on to your auto insurance policy called Erie Auto Plus, which features a diminishing deductible and a $10,000 death benefit, among other advantages, for $35 or less annually.

All over the country

This is why Nationwide made our list. Nationwide offers many easy ways to save. There are two discounts programs that are usage-based and can provide substantial savings. Nationwide provides a free annual review with an insurer to ensure that your policy options are still relevant to your changing needs.

Ratings from third-parties

  • J.D. J.D.
  • AM Best: A+ (Superior) financial strength rating
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Nationwide auto insurance can be purchased in 46 states and Washington, D.C. This is an attractive option for drivers who want to improve their driving skills. It also includes optional coverage that forgives accidents. Nationwide offers personalized savings through its SmartRide discount program and SmartMiles discount program. Based on how safe you drive, the SmartRide program could save you up to 40%. Sign up to receive a 10% discount. SmartMiles tracks your driving distance and offers flexible premiums that are based on vehicle usage. Nationwide’s On Your Side Review service is free to policyholders and helps to ensure that their coverages meet their needs.

Progressive

This is why Progressive made it onto our list. Progressive has been a leader in driving innovation in the auto insurance sector. Customers looking for modern experiences have been able to buy policies online since 1997. Progressive continues to digitize the insurance experience by offering a price-planning tool and a mobile application for ID cards, bill payments, and claims submission.

Ratings from third-parties

  • J.D. Power: 856/1,000 Points (#21).
  • AM Best: A+ (Superior) financial strength rating
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Progressive offers several types of vehicle insurance, including coverage for sedans, SUVs, minivans, pickups, ATVs, classic cars, motorcycles and RVs. The insurer also offers multiple discounts, including unique ones such as its Snapshot usage-based insurance discount program, which allows you to save based on how safely you drive and how many miles you drive. Progressive even recently added an option for drivers currently insured with another company to test what their savings would be by switching to Progressive with Snapshot Road Test, making it one of the best car insurance companies to visualize savings before making the switch.

MetLife

This is why this company was included in our Top 10: MetLife auto insurance, which was recently acquired by Farmers Insurance Group, is a great choice for people who want to bundle their home and auto policies. It offers substantial multi-policy savings and policies that can be tailored to each individual’s needs. MetLife has a trusted network of repair professionals to ensure that your vehicle receives quality service. You can submit claims through the app, or talk to an agent anytime with 24 hour customer service.

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Ratings from third-party sources

  • J.D. J.D.
  • AM Best: A+ (Superior) financial strength rating

MetLife is one of the top 15 U.S. insurers, providing auto and homeowners insurance in all 50 States and Washington, D.C. MetLife offers more than just basic coverage. It also provides gap insurance, rental car coverage, major parts replacement, and legal defense fees coverage. MetLife also offers personal excess liability policies that cover costs not covered by standard auto policies. These include lawsuits, court proceedings for defamation or false arrest and costs incurred in the event of a lawsuit. On our list of auto insurers, MetLife is one of the best for bundling your home and auto policies. The company states that its customers save $906 on average by consolidating their bills through MetLife.

The Hartford

This is why Hartford made our list: Hartford is a leading auto insurer for older drivers who want additional benefits. The company’s partnership with AARP Auto Insurance Program provides unique perks such as house cleaning if you are injured in an accident. It has high customer satisfaction ratings, financial strength, and mobile app ratings. The claims process is digitally optimized to simplify filing.

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Ratings from third-party sources

  • J.D. J.D.
  • AM Best: A+ (Superior) financial strength rating

The Hartford offers car insurance under AARP in all 50 states and Washington, D.C., with agents located throughout most major metropolitan areas. Although it is the most costly auto insurance company on Bankrate’s top list, The Hartford’s AARP Auto Insurance Program provides drivers with benefits such as coverage for in-home services they may need after an accident. As long as your driving record is clean, the program includes a disappearing-deductible.

Allstate

This is why Allstate made it onto our list. Allstate, a trusted auto insurance company with 90 years of industry experience and high consumer ratings, is one of the largest casualty and property writers in the U.S. Allstate continues to innovate with a mobile app that simplifies the user experience and gives direct access to local agents.

Ratings from third-party sources

  • J.D. J.D.
  • AM Best: A+ (Superior) financial strength rating

Allstate offers coverage beyond basic auto insurance including new car replacement and insurance for policyholders who use their personal vehicle for rideshare services. Allstate’s mobile app is available in all 50 states as well as Washington, D.C. Allstate’s Drivewise app reviews your driving habits and provides driving insights. You can also earn cash back every six month for safe driving. Allstate’s rewards program offers safe driving rewards that can be redeemed for auto insurance savings. This makes it a popular option for drivers who want to save significant amounts.

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Clearcover

Clearcover was selected because it is an innovative auto insurance company. Clearcover focuses on technology and provides low-cost policies as well as a hands-on, digital experience. Clearcover’s unique approach is worth considering for drivers who want to manage their insurance completely digitally.

Ratings from third-party sources:

  • J.D. J.D.
  • AM Best: A+ (Excellent). Financial strength rating

Clearcover is changing the face of auto insurance by putting technology front and center. Clearcover uses digital tools to its advantage and has revolutionized the way car insurance is purchased, quoted, and managed. Clearcover can sell affordable policies through this business model and customers have the option to manage their insurance via a highly-rated mobile application. Fortegra currently underwrites policies and is only available in 16 states. If you are eligible for coverage, getting a quote is fast and simple with Clearcover’s 60-second Coverage Wizard that can help you decide what coverage is right for you. Clearcover’s app uses machine learning to verify your coverage. Some claims can be paid within minutes.