Best Car Insurance Companies in America (2022)

We ranked the top car insurance companies in the country. Discover why State Farm, Farmers, and USAA are ahead of the pack.

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Shopping for car insurance can be overwhelming. It’s often hard to know where to start when there are so many companies you could buy coverage from. And, on the surface, they may all seem quite similar. But there are countless factors in play. For example, some insurers could be better for you because you can save money on more of their discounts. At the same time, others may be better for filing claims or coverage options.

You might end up working with the same insurer for years. So, you must find the right car insurance company for you. One of the smartest ways you can do that is by comparing leading car insurance companies side-by-side. This will give you a stronger idea of which provider fits your needs and situation the best.

We’ve ranked the best auto insurers in the nation in several key areas. This includes claims handling, customer satisfaction, discounts, coverage options, and a lot more. According to our thorough research, State Farm is the best car insurance company in 2022. This article will cover the top three car insurance companies overall. It’ll also go over which insurers are the best in specific categories.

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Best Car Insurance Company Overall: State Farm

Our pick for the best car insurance company is State Farm. The insurer has excellent overall ratings. This includes an A++ from A.M. Best and a score of 885 out of 1,000 for customer service from J.D. Power. The score State Farm received from J.D. Power is higher than any other large insurer, including GEICO, Farmers, Progressive, and others.

State Farm is the largest auto insurance company in the country. It has a large network of agents and serves more than 80 million people across the many types of insurance it sells. State Farm also has competitive rates. If combined with the huge number of discounts the company offers, customers could slash their rates by a ton.

Per our studies, State Farm has the best home and auto bundle with potential savings of up to 20% off your rates. The company is also the gold standard for claims handling. State Farm has a below-average number of customer complaints, according to the National Association of Insurance Commissioners (NAIC).

How We Rank State Farm

  • Best car and home insurance bundle
  • Best for filing claims
  • Second-best for bad drivers
  • Third-best for discounts

Pros:

  • Competitive rates
  • Great customer service
  • Good claims handling
  • Plenty of discount opportunities
  • Available in almost every state, with a large network of agents

Cons:

  • Doesn’t offer gap insurance
  • Not available in Massachusetts and Rhode Island

Runner-Up for Best Car Insurance Company: Farmers

Farmers comes in second on our list of the best car insurance carriers. The provider received an A from A.M. Best and a customer satisfaction rating of 862 from J.D. Power, just behind State Farm. Farmers also has very few customer complaints, per the NAIC Complaint Index.

Farmers’ biggest claim to fame is the wide number of discounts it offers. Farmers offers 23 discounts, and a lot of them are easy for most people to get. The company also has tons of coverage options, far exceeding what most other insurers offer.

In our shopping studies, we ranked Farmers as a top company for new drivers and filing claims. The glaring pitfall for Farmers is that it only sells auto insurance in 41 states.

How We Rank Farmers

  • Best for discounts
  • Second-best for coverage
  • Second-best for filing claims
  • Third-best for new drivers

Pros:

  • Solid customer service
  • Good claims handling
  • Lots of discounts
  • Lots of coverage options

Cons:

  • Only sells insurance in 41 states

Third-Best Car Insurance Company: USAA

Our research shows that USAA is the third-best car insurance company. The company boasts exemplary customer satisfaction and has great financial strength ratings from both A.M. Best and S&P Global. USAA doesn’t qualify to be in J.D. Power’s rankings (likely because of its military exclusivity), however. Even so, its scores, which are still shown, are far more impressive than any other auto insurer.

As mentioned, USAA is only available to military members and their families. This takes the company off the table for a lot of people. But it also allows USAA to offer some of the best rates in the nation, as well as several other unique benefits for service members. For this reason and more, USAA is the top company for members of the armed forces.

USAA has all the main coverages you’d want from any auto insurance carrier. It also features a fair number of discounts that can keep quite a bit of money in your wallet. For instance, USAA’s telematics program, SafePilot, can help you save up to 30% on your auto insurance. That’s one of the factors that made us rank USAA as the company with the third-best car insurance telematics program.

How We Rank USAA

  • Best for military members
  • Third-best telematics program

Pros:

  • Great rates
  • Excellent customer service ratings
  • Solid claims handling, with an easy filing process
  • Plenty of coverage options

Cons:

  • Only available to members of the military and eligible family
  • Average number of discounts
  • Doesn’t offer gap insurance

Compare Quotes From the Best Car Insurance Companies

Want to switch insurers and get a better rate? Compare quotes among leading car insurance companies to find out how much you can save.

Best Car and Home Insurance Bundle

State Farm has the best car and home insurance bundle among all other insurers. You can save up to 20% on your auto coverage if you bundle the two types of insurance with State Farm. On top of State Farm’s favorable rates, you could save a lot of money on your auto premium each month by bundling.

Allstate has the second-best home and auto bundle, with potential savings of up to 25%. Nationwide offers the third-best bundle with a possible discount of 20%.

Best for Bad Drivers

Progressive is the number one auto insurance provider for people with bad driving records. It automatically gives its customers accident forgiveness when their policy starts. Progressive also sells car insurance to high-risk drivers, even to those with a DUI.

State Farm is the next best choice for bad drivers. This includes people with an SR-22 requirement from a DUI or another severe violation. Its status as the best overall auto insurer gives it a slight edge over other companies.

GEICO is the third-best choice for people with poor driving records. This is mainly because of its low rates, easily obtainable accident forgiveness, and willingness to serve high-risk drivers.

Best for New Drivers

American Family (AmFam) is the best car insurer for new drivers. Since most new drivers are under the age of 25, they must find a company that offers lots of discounts and low rates. AmFam does just that. It has a nice selection of savings for young drivers, as well as plenty of other ones that aren’t too hard to get.

We picked Progressive as the second-best company for new drivers. It also has discounts that new and/or young drivers can get, as well as a base version of accident forgiveness.

Farmers is the third-best choice for new drivers. It offers a few helpful student discounts for young people. Or, if you’re starting to drive later in life, it has a defensive driving course discount for people 55 and older.

Best for Military Members

As mentioned earlier in the article, USAA is the best insurance company for military members. It has several specific discounts and perks for service members, as well as some of the lowest rates you can find.

USAA isn’t the only choice for current or former military, however. GEICO was our selection for the second-best car insurance provider for members of the military. It offers highly competitive rates and has more than one military-specific discount.

Armed Forces Insurance (AFI) is the third-best company for military members. Like USAA, it’s only for eligible members of US military branches. While no discounts are widely known, AFI does have a solid amount of coverage and is a good insurer.

Best for Roadside Assistance

Travelers leads the pack when it comes to roadside assistance. This is due to its Premier package, which has a lot more to offer than what you’d typically expect from many other companies. This includes two types of extra coverages. Travelers’ standard package has all of what you’d want out of a roadside assistance plan.

The next best insurance company for roadside protection is Nationwide, which also has two high-quality packages. The third-best company for roadside assistance is Progressive. Its roadside assistance plan, which is available for cars, RVs, and motorcycles, includes lots of services you’d need if your car broke down. This includes gas delivery, flat tire changes, winching, and more.

Best for Filing Claims

State Farm is the top company for claims handling and filing. Its top-rated mobile app and easy-to-use website allow quick avenues for reporting and tracking claims. As was touched upon earlier, State Farm also has a low customer complaint number.

Farmers and American Family are the second and third best providers for filing claims, respectively. Both companies offer simple ways to file claims and, like State Farm, have fewer than average customer complaints.

Best Telematics Program

Allstate has the best telematics of all the major insurance companies. The company’s Drivewise program allows you to save up to 40% on your premium if you can practice safe driving habits. Allstate even gives you a discount just for signing up. The detail that gives Allstate’s telematics the edge is that it only lowers your rates. Unlike other companies, Drivewise won’t raise your rates if you drive poorly.

Nationwide is the second-best company for telematics because of the discounts you can get from both its SmartRide and SmartMiles programs. SmartRide can save you up to 40%, while SmartMiles only costs you money for the miles you drive.

The third-best company for telematics is USAA. The insurer’s safe driving program, SafePilot, can save you around 30% on your auto insurance. USAA’s Pay as You Drive program can also save you money because it only charges you when you drive.

Best for Discounts

Farmers is the best company in terms of discounts, just because it has so many of them. Since the company already has competitive rates, anyone has a great chance to cut down on their rates with Farmers’ 23 discounts.

The second and third best companies for auto discounts, respectively, are GEICO and State Farm. Both have unique benefits. GEICO has several vehicle safety discounts and affiliation discounts. State Farm has the best bundling discount, a great safe driving discount, and almost all the other types of savings you’d expect from any insurer.

Best for Coverage

Liberty Mutual is the best company for you if you want the most coverage. Liberty Mutual offers 19 auto insurance coverages. The company has common options like full coverage but also provides extras like gap insurance, better car replacement coverage, and others.

Farmers and Travelers are the next two best auto insurers for coverage. Farmers has several extra coverages, such as spare parts coverage and loss of use coverage. Travelers has all the main coverage options but has some others like gap and rideshare insurance.

How We Chose the Best Car Insurance Companies

We selected the best car insurance companies in this article by examining a range of key factors:

  • Availability
  • Rates
  • Customer satisfaction and financial strength ratings
  • Number of coverages
  • Number of discounts and percentage of savings
  • Claims handling and ease of filing for customers

After we looked at each company closely with the above factors in mind, we objectively decided which companies fit into our top three. To determine the order of the three best companies, we considered aspects such as total availability and overall company ratings.

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