Thursday, September 29, 2022

    The best affordable car insurance companies of August 2022

    Updated

    2022-09-21T20:31:37Z


    Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

    In the US, all drivers must have liability car insurance. However, liability minimum coverage requirements vary by state. If you finance or lease your car, your lender probably requires comprehensive and collision coverage. 

    View insurance rates in your area

    Insider compiled data from 20 different car insurance companies based on customer service, financial stability, asset size rankings, and premium prices where available. A few of the top companies do not have quotes available online. Although it makes it harder to shop and compare, your goal should be to have the best coverage that fits your circumstances. Here are some of the best, cheap car insurance options of 2022.

    Compare our top picks for the best car insurance companies

    • State Farm Auto Insurance

    • USAA Auto Insurance

    • GEICO Auto Insurance

    • Erie Auto Insurance

    • The Hartford Auto Insurance

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    Editor’s Rating

    5/5

    A five pointed star

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    Editor’s Rating

    5/5

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    Editor’s Rating

    4.8/5

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    Editor’s Rating

    4.6/5

    A five pointed star

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    A five pointed star

    A five pointed star

    A five pointed star

    Drivers with a record of an at-fault accident, DUI, and speeding ticket

    Editor’s Rating

    4.5/5

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    Senior drivers and AARP members

    Best car insurance overall: State Farm Auto Insurance 

    Insure.com State Farm Auto Insurance

    State Farm Auto Insurance


    JD Power Customer Satisfaction Rating

    #6


    AM Best Financial Strength Rating

    A (Superior)

    Insure.com State Farm Auto Insurance

    State Farm Auto Insurance


    JD Power Customer Satisfaction Rating

    #6


    AM Best Financial Strength Rating

    A (Superior)

    Insurance Details


    JD Power Customer Satisfaction Rating

    #6


    AM Best Financial Strength Rating

    A (Superior)

    Pros & Cons

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    Nationwide presence

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    High customer satisfaction and claims satisfaction rankings

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    Discounts for bundling insurance products

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    Virtually none — State Farm scores high marks across the board

    Highlights

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    • Nationwide insurance carrier
    • Discounts for no accidents, safe driving, good grades, and more

    Additional Reading

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    Best car insurance for military members: USAA Auto Insurance

    Insure.com USAA Auto Insurance


    AM Best Financial Strength Rating

    A (Superior)

    Insure.com USAA Auto Insurance


    AM Best Financial Strength Rating

    A (Superior)

    Insurance Details


    AM Best Financial Strength Rating

    A (Superior)

    Pros & Cons

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    Good rates and customer satisfaction

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    Only available to military, veterans, and their families.

    Highlights

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    • USAA auto insurance is open to the military, veterans, and their families
    • Discounts for safe driving and more

    Additional Reading

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    Best for cheap car insurance: GEICO Auto Insurance

    Insure.com GEICO Auto Insurance


    JD Power Customer Satisfaction Rating

    #8


    AM Best Financial Strength Rating

    A (Superior)

    Insure.com GEICO Auto Insurance


    JD Power Customer Satisfaction Rating

    #8


    AM Best Financial Strength Rating

    A (Superior)

    Insurance Details


    JD Power Customer Satisfaction Rating

    #8


    AM Best Financial Strength Rating

    A (Superior)

    Pros & Cons

    Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

    Check mark icon A check mark. It indicates a confirmation of your intended interaction.

    Established insurance company

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    National presence

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    Low affordable rates

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    Discounts for bundling insurance products

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    Customer satisfaction varies across products

    Highlights

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    • Discounts for safe driving, good grades, military, and more
    • Available in all 50 states

    Additional Reading

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    Best car insurance after an accident, DUI, or speeding ticket: Erie Auto Insurance

    Insure.com Erie Auto Insurance


    JD Power Customer Satisfaction Rating

    #2


    AM Best Financial Strength Rating

    A (Superior)

    Insure.com Erie Auto Insurance


    JD Power Customer Satisfaction Rating

    #2


    AM Best Financial Strength Rating

    A (Superior)

    Insurance Details


    JD Power Customer Satisfaction Rating

    #2


    AM Best Financial Strength Rating

    A (Superior)

    Pros & Cons

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    Check mark icon A check mark. It indicates a confirmation of your intended interaction.

    Reputation for low prices and good service

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    In the regions where it offered coverage, Erie was ranked in the top three in customer satisfaction and top ten in auto claims satisfaction surveys by J.D. Power

    Check mark icon A check mark. It indicates a confirmation of your intended interaction.

    Multiple discounts for auto insurance

    Check mark icon A check mark. It indicates a confirmation of your intended interaction.

    Flood insurance and guaranteed replacement cost for homeowners

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    Only available 12 states plus D.C. in mid-Atlantic, north central, and southeast regions of the US

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    Not as digital-savvy as other companies

    Highlights

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    • Great customer service with several discounts
    • Available in 12 states plus Washington, D.C.
    • Earn cash for good driving through the YourTurn program

    Additional Reading

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    Best for senior drivers and AARP members: The Hartford Auto Insurance

    Insure.com The Hartford Auto Insurance

    The Hartford Auto Insurance


    JD Power Customer Satisfaction Rating

    No. 1


    AM Best Financial Strength Rating

    A (Superior)

    Insure.com The Hartford Auto Insurance

    The Hartford Auto Insurance


    JD Power Customer Satisfaction Rating

    No. 1


    AM Best Financial Strength Rating

    A (Superior)

    Insurance Details


    JD Power Customer Satisfaction Rating

    No. 1


    AM Best Financial Strength Rating

    A (Superior)

    Pros & Cons

    Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

    Check mark icon A check mark. It indicates a confirmation of your intended interaction.

    Top ranked for claims satisfaction

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    Only available to AARP members

    Highlights

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    • Accident forgiveness for first accident
    • New car replacement coverage
    • Only available to AARP members

    Additional Reading

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    Compare the best car insurance

    State Farm

    State Farm has been in business since 1922. It has a national presence with good auto claims satisfaction and an average monthly premium of $50 for drivers with a clean record, according to Insurify

    State Farm is inexpensive for drivers with a clean record, a DUI, an at-fault accident, and a speeding ticket compared to the national average and among its competitors. However, rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the Insurance Information Institute (III).

    Data sourced from Insurify

    Visit State Farm’s auto website to learn more.

    USAA

    USAA is only available to active-duty military, veterans, and their families. It’s the most affordable option for car insurance in many states with outstanding claims satisfaction and an average monthly premium of $149.

    USAA is more expensive for drivers with a clean record, a DUI, an at-fault accident, and a speeding ticket compared to the national average. However, there are many discounts and saving opportunities for military members. Rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the III.

    Data sourced from Insurify

    Read our full review of USAA insurance »

    Visit USAA’s auto insurance website to learn more.

    Geico

    GEICO has been around since 1936, initially as insurance for government employees. It has a nationwide presence, high marks in claims satisfaction, and is typically the most affordable coverage with an average monthly premium of $46. It’s also friendly to drivers with poor credit scores.

    GEICO has some of the lowest rates for drivers with a clean record, a DUI, an at-fault accident, and a speeding ticket compared to the national average. However, rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the III.

    Data sourced from Insurify

    Read our full review of GEICO insurance »

    Visit GEICO’s auto insurance website to learn more.

    Erie Insurance

    Erie has been in business since 1925. Although it’s only available in 12 states, it has a reputation for low prices and high marks in customer service with the average cost for a typical adult driver at 48 per month.

    Erie has the lowest rates for drivers w a DUI, an at-fault accident, and a speeding ticket compared to the national average and among its competitors. However, rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the III.

    Data sourced from Insurify

    Read our full Erie insurance review »

    Visit Erie’s auto insurance website to learn more.

    The Hartford

    The Hartford has been in business since 1810 and has a national presence. It was top-ranked for claims satisfaction. Its auto insurance is available exclusively to AARP members.

    The Hartford is slightly more expensive for clean drivers, drivers with a DUI record, an at-fault accident, and a speeding ticket compared to the national average and among its competitors. However, there are many saving opportunities for AARP members. Rates will vary based on driving record, car usage, location, age, gender, the car you drive, and a host of other factors, according to the III.

    Data sourced from Insurify

    Read our full review of The Hartford insurance ».

    Visit The Hartford’s auto insurance website to learn more.

    Best car insurance companies ranked by claims satisfaction

    Claims satisfaction refers to how customers feel about how insurance companies settle claims and the claims process. Below are the 2021 rankings from J.D. Power :

    Cheapest car insurance after an at-fault accident

    Your driving record is critical in determining how much you pay for auto insurance. A bad one can cost you. Premiums can increase by almost 50% after an at-fault accident claim, according to an analysis by The Zebra, an insurance comparison website. The percentage of these increases will vary from company and stay on your record for about three years, according to the Insurance Information Institute

    Here are a few of the most affordable car insurance companies for those with an at-fault accident on record: 

    Source: Insurify

    Average premiums for seniors and teen drivers

    Because teen drivers are new drivers with little driving history and more prone to accidents, their rates are high. However, most insurance companies offer discounts to teen drivers for good grades or taking driving safety classes.

    Senior drivers typically see an uptick in car insurance premiums as they age, but not as much of an increase as new or teen drivers. If you’re still driving in your 60s and 70s, there are ways to negotiate cheaper auto insurance rates, like pay-per-mile usage.

    Data provided by Goosehead Insurance

    Car insurance companies ranked by financial stability 

    Here’s how our picks for best cheap car insurance stack up in terms of financial stability, according to credit-rating agency AM Best.

    Methodology

    Insider collected data on the top 25 auto insurance companies based on market share from S&P Global Intelligence. We picked our top five based on financial stability ratings, claims satisfaction, market share, and sample premiums.

    Claims satisfaction: We use J.D. Power’s auto claims satisfaction survey to evaluate the quality of service a company provides to its customers.This survey used responses from 7,345 auto insurance customers who settled a claim within the past six months. Car insurance companies ranked No.1 through #8 are above the industry average in customer satisfaction. 

    Financial stability ratings: We use AM’s Best to determine a provider’s financial strength. AM’s Best is a credit rating agency that assesses an insurance company’s ability to pay claims to its policyholders. A company that receives an A to B is stable in financial strength, while anything lower than a B means that a company is unstable or unable to meet its financial obligations.

    Market share: Market share refers to the percentage of a company’s insurance market. The higher a company’s market share, the more popular it is among policyholders nationwide. We gathered data on market shares from the S&P Global Market Intelligence. 

    Average monthly premiums: While lower car insurance premiums do not necessarily mean quality insurance, we do our best to balance a policy’s cost with the value an insurer provides. A good monthly premium is on par with or below the average cost of car insurance which is $1,070 per year or about $89 per month, according to recent data from the Insurance Information Institute.

    Frequently asked questions — Best cheap car insurance 

    There are four main types of car insurance: comprehensive, collision, and liability. Full coverage is a combination of the three. Drivers in the US must have liability coverage, but if you finance or lease your car, your lender probably requires comprehensive and collision coverage.

    Comprehensive coverage replaces or repairs your vehicle if it’s stolen or damaged. Comprehensive coverage typically covers theft, fire, vandalism, or falling objects like a tree.

    Collision insurance repairs your car if it’s damaged in a collision with another vehicle or object. 

    If you’re involved in an accident, liability insurance covers damage you cause to the other vehicle, driver, and passengers — not your vehicle. Liability coverage is required by law — except in New Hampshire. 

    The two main components of liability insurance are bodily injury and property damage, which most states require. Liability insurance also includes uninsured motorist and underinsured motorist coverage.

    Everyone’s car insurance rates will vary depending on the coverage you chose. There are other factors that can go into pricing a premium and every car insurance company will evaluate you on different factors and weigh those factors differently like credit scores, driving history, accidents, type of car, mileage, and where you live.

    Shop for affordable carriers that meet your coverage needs by getting quotes from several different insurance companies and comparing them. 

    To find the best one for you out of the quotes you’ve obtained, compare the coverage types, limits, and deductible, or the amount you’ll pay out of pocket if you’re involved in an accident. The policy with the lowest price for coverage, the most coverage types and limits, and the lowest deductible is the best one for you. 

    According to Insider’s research, GEICO is offering the best cheap car insurance in 2022, with Erie as a close second in places where it’s available (see above for details). However, the car insurance company that’s cheapest for one person may not be for another. Before purchasing an insurance policy, you’ll want to get four or five quotes from different insurance companies, just to make sure that you’re getting the best price.

    According to 2021 J.D. Power and Associates data on customer satisfaction, The Hartford and Erie take the top spots.  

    There’s a lot of buzz around these two options, but in Insider’s calculations, GEICO comes out on top. Ranked highly for both value and customer service, GEICO tends to stand out. It won out in several of the scenarios above. While you’re shopping, it might be worth getting quotes from both and seeing which one stands out. 

    According to Insider’s research, Erie Insurance generally looked to be the best insurance for young adults and new drivers (in states where it’s available). 

    One of the best ways to save on car insurance for a teen or young adult driver is to join a family policy. On a family car insurance policy, your premiums will be about 20% lower than having a separate plan, according to reporting by The Balance. If joining a family plan is an option, it might be the best for a teen driver

    The best car insurance policy will depend on your specific situation, but in general, the more coverage you opt for the more peace of mind you’ll have. The most comprehensive car insurance policy will include liability, collision, and comprehensive coverage (to replace or repair your vehicle if it’s stolen or damaged).

    Liz Knueven

    Personal Finance Reporter

    Liz was a reporter at Insider, primarily covering personal-finance topics. 
    Before joining Insider, she wrote about financial and automotive topics as a freelancer for brands like LendingTree and Credit Karma. 
    She earned her bachelor’s degree in writing from The Savannah College of Art and Design. She lives and works in Cincinnati, Ohio. Find her on Twitter at @lizknueven.


    Ronda Lee was formerly an associate editor for insurance at Personal Finance Insider covering life, auto, homeowners, and renters insurance for consumers. Before joining Business Insider, she was a contributing writer at HuffPost with featured articles in politics, education, style, black voices, and entrepreneurship. She was also a freelance writer for PolicyGenius. She worked as an attorney practicing insurance defense and commercial litigation. 


    Alani Asis

    Personal Finance Reviews Fellow

    Alani Asis is a Personal Finance Reviews Fellow who covers life, automotive, and homeowners insurance. Prior to Insider, Alani was a Mortgage Support Specialist and a personal finance freelance writer based in Hawai’i. You can reach her via email at aasis@insider.com or through Twitter @AlaniAsis. 


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