Best car insurance companies for May 2024

The best car insurance companies in 2024

The best car insurance companies offer rates, coverage options, discounts and digital tools that fit your individual needs. Our research revealed that these 10 insurers are some of the top car insurance companies available. We’ve highlighted standout features from each company to help you decide which insurer fits your specific needs. Your car insurance needs are unique to your situation, so understanding those needs before you compare auto insurance companies is an important step to finding the best rates and coverage.

Amica

Geico

Progressive

Safeco

Auto-Owners

State Farm

Travelers

USAA

NJM

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 a gist of what car insurance costs in your state, you can better understand what’s considered a normal price range for your policy.

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 can help pay for costs related to the other party’s injuries if you are found at fault for an accident. Most states mandate that you carry a certain amount of bodily injury liability per person and per accident. 
• Property damage liability coverage helps pay for damage you cause to someone else’s vehicle or property if you are found at fault for an accident. Property may include fences, poles, buildings and more.
• Uninsured and underinsured motorist coverage help 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: If you have a history of at-fault accidents, tickets or DUI convictions, you may find fewer companies to choose from since high-risk drivers are not eligible for coverage from every carrier.
• 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: States have different insurance laws, accident statistics, crime rates and living costs. Because of this, insurance companies may not be available in certain states or even in some cities or ZIP codes.
• 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 $2,299 per year for a full coverage policy and $637 for minimum coverage. However, these figures are just a baseline. Car insurance is highly individualized, and rates vary based on numerous personal factors.

Location is just one of those factors. In general, states that pose higher risks for filing claims (whether that is due to elevated levels of vehicle theft, extreme weather, traffic congestion, poor highway infrastructure or something else) will likely see higher average car insurance rates. 

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.

Car insurance industry trends: Premium increases likely to continue

Full coverage car insurance premiums are at $2,299 in 2024, and rates will likely continue increasing this year.

As rates rise, it’s important to understand how different auto industry costs are interconnected. The cost of car parts has increased over the past few years, largely because of ongoing shortages and shipping delays. When a claim occurs, 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. Since rate filings must get approved by the state first, policyholders don’t see these increased premiums until their policy renews after those rate hikes are approved.

Frequently asked questions