What Is the Best Car Insurance Company

What Is the Best Car Insurance Company? Not every auto insurance provider is the same. To understand more about drivers' experiences with auto insurance, we polled more than 10,000 of them. We paid particular attention to important factors like customer service, claims processing, and brand loyalty. We evaluated the top vehicle insurance providers using that information to help you choose the best.

Which Car Insurance Company Is Best?

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Our data from 2022 show that USAA is the finest auto insurance provider, however only military personnel can purchase its insurance policies. If that doesn't apply to you, State Farm, which ranks No. 2 in our research, is your next best choice.

We looked at rate information as well as policyholder opinion to identify the top auto insurance providers, paying close attention to customer service, claims management, customer loyalty, and policy renewal. We also questioned survey respondents how likely it was that they would suggest their current insurance provider to a driver looking for a new coverage.

This list can assist you in comparing insurers for auto insurance depending on the criteria that are most important to you. Although USAA and State Farm are at the top of the list, one of the other eight firms may be a better option for you. As a result, it's a good idea to research the costs of several insurers before you buy or renew your insurance.

Top Car Insurance Providers

1. USAA 

According to our ratings, USAA is the top insurance provider. Our survey from 2022 shows that USAA customers are the most satisfied, most willing to renew their insurance, and most likely to refer USAA to other drivers. In our survey, USAA had the lowest rates overall, outperforming the national average by 35%.

Only those in the military community can purchase USAA insurance products, such as auto, homes, and renters plans. As a result, not all motorists will qualify for coverage from this insurer.

2. State Farm

State Farm is No. 2 in our ranking and received ratings that were above average in each of our sub-ratings, including Customer Loyalty and Claims Handling. It also performed well in our ranking of the cheapest car insurance providers for 2022. For drivers who couldn't get a coverage from USAA, its average prices for those with less than perfect driving records were the lowest in our assessment.

3. Farmers

In our rankings for Claims Handling and Customer Service, Farmers is tied for first place. In terms of customer loyalty, it is tied for second. Farmers' performance was subpar in the area Most Likely to Renewed, where its score of 4.0 is lower than the category average of 4.2.

4. Nationwide

Since our 2021 analysis, Nationwide has climbed two positions and is now tied for third place. Nationwide receives above-average scores in all of the subrating categories and ranks second in our Customer Loyalty and Most Likely to be Recommended subratings. Additionally, some drivers, particularly those with a clean driving record or bad credit, might get rates from Nationwide that are below average.

5. Geico

With average ratings across the board in areas including Customer Service, Claims Handling, and Customer Loyalty, Geico is ranked third in this year's ranking. Its premiums are what set it apart, earning it the No. 2 spot in our ranking of the cheapest car insurance providers for 2022. For juvenile and senior drivers as well as those with bad credit, its rates trail USAA, which is rated highest.

6. Allstate

Although the firm scored somewhat below-average scores in most of our other subrating categories, Allstate moved up three points to tie for No. 6 in this year's Best Car Insurance Companies rating and is placed No. 4 in our Most Likely To Be Recommended subrating. Although Allstate's rates are among the highest in our survey, some drivers, such as those with a history of speeding tickets, may qualify for a competitive rate.

7. Travelers

Travelers also made some progress this year, climbing two spots to tie for the sixth slot. Despite having a worse customer service rating than seven other insurers in our survey, Travelers ranks first in the category for claims handling and third in the category for renewal likelihood. Also scoring above average for insurance renewal, Travelers provides premiums that are frequently cheaper than the national average.

8. Progressive

In our study, Progressive is ranked eighth. Customers are usually happy with how simple it is to open a policy, but Progressive comes in last in our Best for Customer Loyalty category and has below-average ratings across the board. Additionally, Progressive consumers claim that they are less inclined to repurchase insurance or refer the company to other motorists. However, people with a DUI could be able to use Progressive's funds. In our investigation, its rates for those drivers are some of the lowest.

9. AAA

New to our list of the Best Car Insurance Companies, AAA is tied for eighth place with Progressive. In every category we looked at, it scored below average. It did, however, surpass Allstate, Farmers, Progressive, and American Family to claim the No. 6 spot in our Most Likely to be Renewed subrating. Although AAA has the highest average premiums in our survey, drivers should request a quote to see if their particular rate is more affordable.

10. American Family 

American Family is now ranked No. 10 in our research after falling four positions this year. Its ratings are the lowest across the board, with the exception of our Best for Customer Loyalty category, where American Family beats Progressive by a hair. American Family does offer affordable rates for some drivers, particularly young drivers, those with bad credit, those with an accident or a DUI on their record, and those with low credit scores.

Which Car Insurance Company Is Best?

Our data and the results of a customer survey show that USAA is the top auto insurance provider overall. However, only active-duty and retired military personnel, along with their families, can purchase USAA insurance products. State Farm is the top auto insurance provider for drivers who are ineligible for USAA membership, coming in at number two in our poll.

Despite the fact that USAA and State Farm are at the top of the rankings, it is advisable to weigh the pros and downsides of various insurance providers. You may find the right insurance by doing this.

Additionally, USAA topped all five of our sub-rankings determined by consumer feedback. However, not every policyholder will be eligible for USAA membership. In order for all customers to learn about the top choice in each of these categories, we've selected the runner-up in each category.

Get and compare auto insurance quotes if costs are a significant factor in your decision. Although we looked at typical rates, your own auto insurance quote will also be influenced by your region, age, driving history, credit score, preferred level of coverage, and other factors. You can correctly estimate prices and find out which insurers are providing the best deal with the aid of a quote.

USAA and State Farm provide the best customer service.

State Farm and USAA are ranked first and second, respectively. Customers of USAA who haven't made a claim report that 65 percent of them are very happy with the company's customer service. Nearly 64% of USAA customers say they are extremely satisfied with the insurer's customer service, a figure that only slightly declines among those who have made a claim.

If USAA coverage is not an option for you, State Farm can be a better option. Almost 60% of State Farm customers who haven't filed a claim say they are very happy with the level of customer service they received. Similar to USAA, State Farm has slightly lower customer satisfaction ratings among clients who have made a claim. 56 percent of survey participants claim to have had only positive customer service experiences.

Geico, Farmers, and Nationwide all received customer service ratings that were above average.

Travelers are the best for handling claims

Any insurance policy must address claims management, and Travelers tops the list in this regard. It receives a score of 4.3 out of 5, making it the only insurer to surpass USAA, which tops the list in each of the other subrating categories we looked at. Almost 62% of Travelers customers say they are entirely satisfied with how simple it is to file a claim, and 65% of them say they are completely satisfied with how their claim was resolved.

State Farm, Nationwide, and Farmers all scored above-average marks for their claims handling.

USAA and Nationwide are the most likely to be suggested

It's hardly surprising that USAA customers are most likely to suggest their insurer to other drivers looking for coverage given their competitive rates and high ratings across all categories we evaluated.

53 percent of USAA customers who have not yet made a claim say they are very likely to recommend the insurer for vehicle insurance, while another 18 percent say they are likely to do so. Customers of USAA are much more inclined to advocate for their insurer after making a claim. Among those we polled, 61% say they are very likely to suggest the insurer, and 8% more say they are inclined to do so.

If you aren't eligible for USAA membership, think about Nationwide. Customers who have not yet submitted a claim are more likely than not—41%—would suggest Nationwide to other drivers, with 31% saying they would. Customers who have made a claim score Nationwide better. With 32% stating they are likely to do so, 42 of them believe they are extremely likely to refer their insurer.

State Farm and Allstate are two additional insurance providers that did well in this category.

USAA and State Farm are the most likely to be renewed.

The likelihood of a policyholder renewing their coverage reveals a lot about their relationship with the insurer. By a narrow margin above State Farm, USAA has the highest customer loyalty rating.

78% of USAA customers who haven't made a claim on their policy on average say they're likely or very likely to renew it. Nearly 70% of those who have submitted claims in the poll say they would suggest USAA to other drivers.

Access to USAA insurance products is restricted, as was already mentioned. If you're not eligible for membership, State Farm, which ranks No. 2 in our Most Likely to be Renewed subrating, might be a good option.

When it comes time to renew their insurance, 76% of State Farm customers who have not yet made a claim say they are likely or very likely to stick with their existing insurer. When respondents who have made a claim are included, that percentage falls to 69%.

Customer loyalty is best when: Nationwide and USAA

The desire of a policyholder to recommend their insurer and renew their coverage is a sign of customer loyalty. It is not surprising that USAA wins this subrating due to its high renewal and recommendation scores. Consider Nationwide if you're not qualified for USAA. It obtains above-average ratings in our Most Likely to be Recommended category and comes in second place in our Most Likely to be Renewed category.

State Farm, Travelers, and Farmers are more businesses that have above-average client loyalty ratings.

How much does automobile insurance run?

Our most current research indicates that the average cost of auto insurance is $1,539. However, a number of factors, such as the following, might result in your premium being higher or lower:

Age Driving History Location

Type and scope of protection

Credit rating

available reductions for auto insurance

Quotes for auto insurance are the quickest method to learn what you could have to spend. Get vehicle insurance rates online, over the phone, by email, or in person by speaking with an agent.