Best car insurance companies: Expert-rated May 2023

What is the best car insurance company?

The best auto insurance company is American Family (AmFam), according to our analysis. With an average annual rate of $2,176 per year for good drivers, AmFam isn’t the cheapest car insurance company in our analysis. However, the insurance company offers a slew of deductibles to help drivers score lower rates. AmFam also offers optional coverages and add-ons, such as accident waiver, new vehicle exchange, and a diminishing discount.

With AmFam’s diminishing deductible, you get a $100 credit at the beginning of your policy (or $50 for 6-month policy terms), and each year you go claim-free, your deductible decreases by $100, up to a maximum of $500. This means that your $500 deductible can drop to $0 if you’ve been without a claim for five years.

Another reason to consider the American Family may be the customer experience. It has the lowest number of consumer complaints among the insurance companies we analyzed, based on data from the National Association of Insurance Commissioners (NAIC) Complaints Index.

Best car insurance company for liability coverage only

The best car insurance companies for liability-only coverage are Car Owners, USAA and Westfield. Each offers liability coverage below the national average and earned the highest ratings in our analysis.

Car owners offer the cheapest liability coverage online, at an average of $404 per year, though USAA trails only slightly with an average rate of $466 per year.

Liability insurance is required in most states and pays for third party injuries and property damage if you are at fault in an accident. A liability-only car insurance policy does not include any additional coverage, such as personal injury protection (PIP) or collision and comprehensive coverage.

Best car insurance company for senior drivers

Car Owners, Nationwide, and USAA are all great for drivers 60 and older. Every insurer has a 5-star rating in our Best Car Insurance for Seniors rating.

USAA offers the cheapest rates for senior drivers among the package, averaging $1,554 per year. USAA coverage is only available to eligible members of the military community. If that’s not you, consider car owners. And at an average rate of $1,768 per year, it offers the second-lowest rates among the insurance companies we analyzed.

Best auto insurance company for teen drivers
The best car insurance companies for teen drivers are USAA and American Family.

USAA policyholders who add a teen driver to their auto insurance policy pay an average of just $1,293 per year to cover the teen. But USAA primarily serves the military community and not all drivers qualify for coverage.

If you don’t qualify for USAA, consider American Family. The average cost of adding a teen driver (ages 16-19) to your car insurance policy is $1,556 per year with AmFam.

Car insurance companies tend to raise rates when you add a teen to your policy, because teens are less experienced drivers and therefore pose a higher risk. But there are ways to reduce the cost of coverage.

Many companies offer discounts for teen drivers who maintain good grades or, if they are in college, to leave their car at home while they live on campus. You may also be able to get a discount for vehicles that have certain safety features, such as backup cameras or lane assist sensors.

If you’re shopping for a car for your teen, consider one with collision avoidance features. Cars with lane departure sensors and blind spot sensors tend to benefit teen drivers, according to a study by the Insurance Institute for Highway Safety. Be sure to tell your insurance company if the vehicle your teen drives has these features.

The best car insurance company for grouping with home insurance

American Family, State Farm, and USAA are all great for putting together your home and auto policies.

Of the three, State Farm offers the largest home and auto package discount, with up to 18% off your insurance premiums. Nationwide and car owners also have our ranking of the best home and car packages.

Pool discounts are some of the highest discounts you can get from your insurance company. “If you buy two types of insurance from the same insurance company, such as auto insurance and home insurance (or car and renters insurance, or auto and condo insurance), you can make significant savings on each policy.

“How much you can save depends on your insurance company, but deductibles are usually around 10% to 20% of the annual premium,” said Mark Friedlander, a spokesperson for the Insurance Information Institute.

Leave a Comment

Your email address will not be published. Required fields are marked *

Shopping Cart