8 Best Car Insurance Companies of October 2023

Whether you’re looking to switch insurers or this is your first time picking out a car insurance policy, our picks for best auto insurance companies offer all the coverage you need.

The companies on our list offer the five main types of coverage: collision, comprehensive, personal injury protection, liability, and uninsured/underinsured motorists coverage.

They also have a slew of discounts to help offset the cost of your monthly premium. You can lower your rate by choosing paperless billing, insuring multiple cars, taking safe driving courses and staying with the same company, among others.

We prepared a comprehensive breakdown of each company’s policies, provisions and perks to help you on the road to solid and affordable protection.

So, hop in as we review the six best auto insurance companies for October 2023.

Our Top Picks for Best Car Insurance Companies of October 2023

• Amica Mutual - Best Car Insurance Package
• Progressive - Best for Customizable Premiums
• State Farm - Best for Young Drivers
• Farmers - Best for Essential Worker and First Responder Discounts
• Nationwide - Best for Flexible Policies
• GEICO - Best Mobile App
• Allstate - Best Usage-Based Insurance Program
• USAA - Best for Military Members

Best Car Insurance Companies Reviews

Why we chose it: Amica Mutual made our list for its Platinum Choice Auto policy, which lets drivers earn Advantage Points rewards and save significantly on their deductible.

Amica Platinum Choice Auto Policy is a ready-made package that includes all the basic coverage most people need, in addition to unique perks such as identity fraud monitoring.

In addition, it offers deductible-free glass coverage, rental car coverage and an Advantage Points program where drivers can earn points to reduce their deductibles or keep rates from increasing after a claim.

Amica breaks down its coverage into two categories: the things you need to have and those that are nice to have.

Its offerings include:

• MedPay — additional coverage for medical bills and funeral expenses

• Collision — covers accident-related damage

• Comprehensive collision — covers damage caused by theft, fire or other natural disasters

• Guaranteed asset protection (GAP) — covers the “gap” between what you owe and the depreciated value of your car if it were to be totaled

• Credit monitoring service — offered by very few companies, this can help you keep track of your credit and alert you to any potential identity theft

As for customer satisfaction, Amica has had the highest score in the New England region for 10 years in a row in J.D. Power's Auto Insurance Customer Satisfaction study. Amica also has a low National Association Of Insurance Commissioners (NAIC) complaint ratio (rate increases and delays in claims handling are recurring issues) and received a B+ in the 2022 CRASH report card, where mechanics rate insurers based on how they handle policies and make payments.

Why we chose it: We picked Progressive as the best car insurance for customizable premiums because its Name Your Price tool lets drivers pick coverage that fits their budget.

Customization sets Progressive apart from the rest. With the Name Your Price tool customers set a budget and Progressive creates a policy to match it. From there, policyholders can pick and choose coverage limits and deductibles.

For example, you can increase the deductible for collision coverage and save on your premium; however, note that if you're in an accident, you'll have to pay a higher amount before the insurance kicks in.

Among the notable add-ons Progressive offers is GAP coverage. For an extra $14 a month, this coverage pays up to 25% of the difference between the value of the vehicle and what you owe. Another valuable add-on is the custom equipment coverage that you can use to repair any accessories meant to aid mobility, a GPS system or any other customization you’ve done to the vehicle.

Progressive also covers some things that few other insurers do. One is rideshare coverage, which covers you if you work for any type of rideshare service (Uber, Lyft or even food delivery), whether you do it full time or as your side hustle. In addition to this, Progressive’s collision policy covers medical care for any injuries your pet sustains during an accident.

In terms of savings, Progressive's telematics Snapshot program uses driving data such as acceleration, braking and distance and gives drivers a discount for safe driving behavior. It also gives customers the option of joining its deductible savings bank. This program puts $50 into savings every six months that go by without a claim until it reaches your deductible limit. Then, if you file a claim your deductible will already be paid for.

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Why we chose it: We chose State Farm as the best car insurance for young drivers because it rewards teenage student drivers with a GPA of 3.0 or higher with up to 25% in savings.

Teen drivers are the most expensive to insure, but State Farm stands out from other insurers by offering teen drivers steep discounts that can offset the high premiums. With the Good Student Discount policyholders can save up to 25% if their teen driver keeps a GPA of 3.0 or higher until they turn 25. Drivers under 21 can also get a discount for taking a driver’s ed course.

Additionally, the “Student Away at School” discount helps customers save by only covering the student while at home on vacation and holidays.

State Farm is well known for its network of close to 19,000 agents across all fifty states. This makes it ideal for people who prefer more personalized service, and who prefer to have a dedicated agent they can go to with questions. It was also the highest ranking car insurer In J.D. Power’s 2021 Auto Insurance Customer Satisfaction report in the Southwest region and came in second in Texas, New York and the New England and Northwestern regions.

As for its policies, State Farm offers rental cars and travel expenses coverage for when you're in an accident 50+ miles from home. Others cover road assistance if your car breaks down (i.e. you get a flat tire, need a jumpstart, or you locked your keys inside the car), whereas State Farm’s travel expenses coverage extends its roadside assistance if you're in an accident and the accident is covered by your comprehensive and collision insurance. This pays up to $500 per loss for expenses like hotel and food, as well as a rental car while your car is in the shop.

One of State Farm’s notable discounts is the Drive Safe and Save telematics program which monitors your speed, braking and other driving factors and provides feedback on these. State Farm gives you a discount just for enrolling and once you start using the app you can get up to 30% discount for safe driving habits.

Why we chose it: We chose Farmers as the best car insurance for essential workers due to its array of discounts tailored specifically for teachers, healthcare workers and other first responders.

Why we chose it: Farmers is our pick as the best car insurance for essential workers for its array of discounts aimed specifically at teachers, healthcare workers and other first responders.

Although Farmer’s doesn’t offer the cheapest rates, it offsets these by offering policies and discounts that not many other insurers offer. One example is its Affinity discount, which gives healthcare professionals, members of certain organizations as well as active, reserve or honorably discharged military personnel.

Another notable discount is the Senior Driver discount for people over 55 (or 65, depending on the state) who take a state-approved safe driver training. This is valuable because senior drivers, like teen drivers, pay higher premiums because they’re seen as riskier to insure.

For classic car enthusiasts, Farmers offers classic and collector car insurance. With this coverage, you can protect your collectible at the car show down the road or even while abroad. Policyholders can pair this with spare parts coverage and get up to $750 for spare part repair or replacement, at no extra cost.

A drawback to Farmers is its slightly higher than average rates; however its unique offerings makes it a great option for those who are willing to spend a bit more for custom coverage.

Why we chose it: We chose Nationwide as the best for flexible policies because it offers a free yearly policy evaluation where drivers can review their coverage, ask questions, make changes and apply for discounts.

Nationwide offers a variety of standard and optional coverage to choose from. To help drivers choose the right coverage year after year, Nationwide provides the On Your Side Review, a yearly evaluation where customers can bring up questions about their policy and evaluate whether the discounts and benefits still work for them.

Nationwide offers two programs that can help you save based on your driving habits. SmartRide is a telematics program that tracks your driving (miles driven, idle time, night driving acceleration and braking) and gives you feedback to improve your driving. You get 10% off by signing up and can save up to 40% based on how safely you drive. The other program is SmartMiles which charges a base rate of $60 and a variable rate of $0.07 per mile driven every month.

Nationwide also offers the Vanishing Deductible. This discount rewards you with $100 off your deductible for each accident-free year, up to $500. So, let’s say you’ve been with Nationwide for four years without incident. If you do have an accident in your fifth year you'd pay a $100 deductible and you’ll continue earning a yearly reward of $100 the next year.

Nationwide boasts the lowest NAIC complaint index on the list with 0.39, however its ranking on J.D. Power’s U.S. Customer Satisfaction study was below average.

Why we chose it: GEICO's mobile app not only lets you access digital insurance cards and file claims, it also connects to CARFAX which gives you access to your vehicle’s history and check for recalls.

While the first thing that comes to mind when you think of GEICO is its gecko mascot, where its service stands out the most is its completely digital experience, which is ideal for those who would rather go online than call customer service.

With GEICO's mobile app, policyholders can request roadside assistance, upload photos to get damage estimates as well as submit and manage their claims. It can also serve as a type of “agent in your pocket” that answers insurance-related questions and helps you stay on top of your car's history, sending you alerts about recalls or when it's time for maintenance.

GEICO offers all the standard types of coverage, such as bodily injury liability, collision, comprehensive, uninsured/underinsured motorist and medical coverage. Its site offers a breakdown of these along with information on limits, premiums and deductibles to help customers create a policy that fits their needs and budget.

It also offers a slew of discounts to help customers get lower rates. These are divided into four areas: vehicle equipment, driving history and habits, driver affiliation and customer loyalty. For example, their anti-theft system discount can save members up to 23% and a driver that has gone accident free for 5 years can save up to 22%.

GEICO also offers notable discounts for the military — one for being an active or retired member and one in case of emergency deployment. These can save policyholders 15% and 25% respectively. Of all the companies on our list, GEICO is one of only two who offer such discounts for military personnel.

As for third-party ratings, GEICO scored above average in almost every region surveyed by J.D. Power’s 2022 U.S. Auto Insurance Customer Satisfaction study, with the exceptions being Texas, and the Mid-Atlantic and Southeastern regions.

Why we chose it: We chose Allstate’s as the best auto insurance for usage-based programs due to its Drivewise telematics feature, which helps drivers save by tracking their driving, offering feedback and rewarding them for being safe on the road.

Nowadays, the best auto insurance companies offer telematics and our top pick from among them is Allstate Drivewise. This telematics provides feedback on your driving behavior and rewards you for safe driving. Customers get 10% off just for signing up and can save up to 40% with all the combined discounts.

One of Drivewise’s notable safety features is crash detection. As the name says, it detects when you’re in an accident — regardless if you’re the driver or passenger — and sends you a notification offering to contact roadside assistance or 911.

Allstate also stands out when it comes to bundling discounts. Customers can get 10% off auto insurance and 25% off homeowners when they get both policies. In contrast with other providers, Allstate’s home insurance policies include flood protection, making bundling a very attractive alternative.

Additionally, unlike many competitors, Allstate offers coverage in Mexico for either your own vehicle or a rental while you travel. This makes them a great option for customers in Texas and other border states.

Having said that, Allstate's low customer satisfaction scores in both J.D. Power's 2020 studies (Claims Satisfaction and Auto Insurance Customer Satisfaction) could be cause for concern, especially because these scores haven't improved much in the 2022 Auto Insurance Study. (Note that the 2022 Claims Satisfaction study has not been published). Customer satisfaction varies by specific location, so our advice would be to research Allstates service in your area to determine if it's a good fit for you.

Why we chose it: Our pick for the best car insurance company for military families and veterans is USAA because it caters specifically to these groups and has one of the highest customer satisfaction ratings of all the companies we reviewed.

In J.D. Power's 2022 Auto Customer Satisfaction Study, USAA scored the highest in all states and regions studied except California. (Note that USAA did not earn a rank because, according to J.D. Power, it doesn’t meet the study award criteria.)

Like other companies, USAA offers a variety of discounts with some unique features. These include a car storage discount for those members who store their vehicle at a military installation. In this case, customers get up to 60% off their policy and could save up to 15% on comprehensive coverage for storing their car in a military base or installation. It also offers a low-mileage discount that both stateside and deployed members can benefit from.

Another area where USAA shines is its Safepilot telematics program. By enrolling, members get an automatic 10% discount and then stand to earn up to 30% off for safe driving. However, note that Safepilot works through an app, and the latest reviews for these show a pattern of complaints describing the last update as “buggy” and frustrating to use.

Although well known for customer service, recent reviews logged with the Better Business Bureau point to a possible slump. Customers complained about problems with the claims process and inconsistent customer support.

Although USAA is one of the best providers out there for military members, we recommend you make sure that USAA's other insurance policies are a good fit as well, for there may be other providers that offer a better bundle.

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Other car insurance companies we considered

Erie

Why Erie didn’t make the cut: This provider only operates in 12 states and the District of Columbia.

Erie came in as the top auto insurance company in J.D. Power’s 2022 Auto Customer Satisfaction Study in both the Mid-Atlantic and North-Central regions.

The Rate Lock feature helps Erie stand out among the rest. This unique feature freezes policyholders insurance premium year after year — even after filing a claim. We found no other provider that offers this feature.

When it comes to discounts, Erie offers similar ones to others on our list — notable among these are diminishing deductibles, first accident forgiveness and vehicle storage.

Liberty Mutual

Why Liberty Mutual didn’t make the cut: Liberty Mutual didn’t make our main list because it has one of the highest complaint ratios with the National Association of Insurance Commissioners (NAIC) from the companies we evaluated.

Liberty Mutual didn’t make our main list because it has one of the highest complaint ratios with the National Association of Insurance Commissioners (NAIC) from the companies we evaluated. This is not to say that its coverage is poor or lacking.

Like many other companies, Liberty Mutual offers medical expense payments, uninsured motorist, personal injury protection, liability coverage, collision and comprehensive coverage. It also offers riders such as roadside assistance, GAP coverage and rental reimbursement.

Some unique features include coverage for teachers who store valuable supplies in their cars and its lack of caps on the discounts you can accrue. It also provides a coverage calculator right on its site which you can use to determine the level of protection you want.

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Travelers

Why Travelers didn’t make the cut: Travelers didn't make our best auto insurance list because it doesn’t offer policies in Alaska, Hawaii, Louisiana, Michigan, South Dakota, North Dakota or West Virginia.

Travelers can give you a quote in five minutes or less, and you don’t even have to provide a driver’s license number. If you request your car insurance quote while you’re still insured with another company, you might receive a discount of up to 10% once you sign up.

Travelers' coverage options include liability, collision, comprehensive, personal injury protection and medical expenses. It also offers additional coverage options like loan/lease GAP coverage, rental reimbursement, accident forgiveness, new car replacement and roadside assistance. Note that it only offers rideshare coverage for Uber or Lyft drivers in Colorado and Illinois.

Travelers’ didn't make our list because it doesn’t offer car insurance in Alaska, Hawaii, Louisiana, Michigan, South Dakota, North Dakota or West Virginia.

QuoteWizard

Why Quote Wizard didn’t make the cut: QuoteWizard didn't make our list because it’s a marketplace, not an insurance provider, therefore its quotes do not reflect the price customers will end up paying.

If you’d like to compare car insurance quotes from different companies, the QuoteWizard marketplace is a great option. Its site makes it fairly easy to compare quotes and types of coverage from the major companies, saving you the time it would take to contact each individual provider.

Do note that the quotes provided are estimates as there are many factors that affect your premium and average rates, including your vehicle make and model, location and, of course, the type of coverage you want. You’ll also have to check local and state laws to make sure your policy meets the minimum liability requirements.

QuoteWizard didn't make our list because it’s a marketplace, not an insurance provider, therefore its quotes do not reflect the price customers will end up paying.

Spark Auto Insurance

Why Spark Auto Insurance didn’t make the cut: When we tried to get quotes for a hypothetical customer it yielded just one result.

Spark Auto Insurance is an online marketplace where customers can compare quotes and coverage from some of the best insurance companies in the market such as Progressive, State Farm, Liberty Mutual, Travelers and Allstate.

This network of providers offers standard and optional coverage options, such as bodily injury liability, damage liability, collision, comprehensive, personal injury, medical payments and underinsured motorist, among others.

To get a quote, users need to input basic information such as their address, vehicle make and model and marital status. Spark then shows one or more results from providers that offer a policy to match their particular profile.

Car Insurance Guide

In this section, you’ll learn what auto insurance covers, common coverage options, how much you can expect to pay and how to keep your premiums low.

Plus, we’ll share some eye opening car accident statistics which drive home why car insurance is mandatory in almost every state.

How to get car insurance

Whether you’re getting car insurance for the first time or because your current insurance term is ending, it’s a good idea to review the steps for buying car insurance. While the exact process may vary depending on the insurance company you select, here’s what you can expect.

• Gather Information: Gather your personal and vehicle information. Common items you’ll need include your driver's license, vehicle registration and a copy of your existing insurance declaration page if the vehicle is already insured.

• Get quotes: Since insurance rates can vary drastically, we recommend you get quotes from at least 3-5 insurers.

• Compare your options: As you’re comparing premiums, be sure to look at the type of coverage and limits. It’s important to compare apples to apples.

• Read customer reviews: Reviews from current and previous customers can help you when deciding between multiple insurers.

• Buy your new car insurance policy (and cancel your old one): The final step is to buy your new car insurance policy. You don’t want to cancel your old policy until you have your new one in place, otherwise you can have a lapse in coverage.

Is car insurance mandatory?

Auto insurance is regulated at the state level, so your policy’s minimum liability limits will depend on local laws. Except for New Hampshire and Virginia, all other states require drivers to buy car insurance or pay some sort of fee if uninsured.

How does car insurance work?

Auto insurance helps you cover losses stemming from theft, collision, natural disasters and liability involving your vehicle. In simple terms, you pay a premium to an insurer, and it pays for losses as stipulated in your policy.

Liability policies don’t require you to pay a deductible, but other coverages typically do. Your deductible is how much you must pay out of pocket before the insurer covers the rest. These can range from $250 all the way to $2,000. Policies with higher deductibles will cost less than those with lower deductibles because you’ll assume more of the cost of repair or replacement in the event of an incident.

Types of car insurance coverage

There are seven standard types of auto insurance coverage:

• Liability insurance includes property damage and bodily injury liability. It only covers damages that you cause others in an at-fault accident.

• Uninsured/underinsured motorist coverage covers medical bills and repairs if you’re in an accident caused by another driver with little or no insurance. It can also cover the cost of damages that result from a hit-and-run.

• Comprehensive coverage pays for repairs if your vehicle is damaged by something other than another vehicle (including hail, fire, floods, theft and vandalism).

• Collision coverage covers repair costs to your vehicle if you're involved in an at-fault accident.

• Full coverage car insurance is a term referring to having comprehensive and collision policies along with the state minimum.

• Medical payments coverage pays for medical expenses if you or your passengers are injured in an accident.

• Personal injury protection (PIP), also known as no-fault insurance, covers medical bills, loss of wages and funeral costs for you or your passengers if you're in an accident, regardless of who is at fault.

• Guaranteed asset protection (GAP), pays the difference between how much you owe on your vehicle and how much your insurance will pay out if your vehicle is totaled or stolen.

In addition to these, optional insurance riders can give you additional coverage such as roadside assistance, glass replacement and rental reimbursement at an extra cost.

How much is car insurance?

Car insurance costs vary greatly based on a wide range of factors. In fact, the NAIC explicitly mentions that state-to-state comparisons are difficult to make because of the high degree of variability in insurance requirements and other factors.

According to multiple third party sources, the average cost of car insurance is around $2,000 annually, however, state minimum coverage averages around $600 annually. The best way to see how much you’ll pay is to get quotes from several auto insurance companies.

How to lower your car insurance premium

There are things you can do to lower the cost of your car insurance. You may already know about bundling and discounts, but there are other things you can do to help offset the high cost of insurance. (And, if you’re interested in switching insurers to get a lower price, take a look at Money’s guide on how to change car insurance.)

Bundle insurance policies

On average, bundling can save you 8% on your combined premiums. Consider one of our best homeowners insurance or renters insurance providers if you're looking to bundle auto and home.

Increase your deductible

The deductible is the portion of damages you’ll have to pay out of pocket before your insurance company pays the rest. Increasing your deductible can make your payment more affordable. However, you want to insure you can afford to pay it out of pocket in case you’re in an accident.

Review your policy regularly

Reassessing your current policy annually before renewal, or whenever you make life changes that affect who is driving your car, can ensure you’re getting the type and level of car insurance coverage you need and can afford.

Apply for discounts

Companies offer discounts to policyholders that maintain a clean driving record and drive vehicles with good safety features.

Although discounts vary from one lender to the next, common ones include safe driver, multi vehicle and multi policy.

Reduce coverage

You can reduce your annual premium by dropping collision or comprehensive coverage on vehicles that don’t have a lease or loan.

Consider usage-based insurance

Usage-based insurance (UBI) policies take into account your current driving habits to determine your premium.

These may measure how fast you drive, how quickly you turn and how abruptly you break. Depending on your driving habits, you could earn a discount on your policy.

Shop for rates

Shopping around and comparing quotes from at least three different insurance providers can help you get the cheapest rate, without sacrificing important coverage. Using a car insurance comparison tool can help match you with a provider that offers the best car insurance policy for your vehicle.

Besides average rates, consider available discounts, coverage limits and deductible options when shopping for car insurance coverage. If you don’t know where to start, an independent insurance agent or broker could help you narrow down your options.

If you want to read more about savings opportunities with online insurers, read our guide to the best cheap car insurance companies.

Latest News on Car Insurance

• Today, car insurance rates are rising faster than anything else in the economy. That means your auto insurance might continue to increase.

• Unfortunately, if you have bad credit, you’re likely paying more for your insurance policy. That’s because people with bad credit pay up to 263% more for car insurance.

• To save on auto insurance, more drivers are opting for usage-based insurance policies.

How We Chose the Best Car Insurance Companies

As part of our research methodology, we compared and vetted 23 insurers. We then narrowed down our list based on the following factors.

• Financial stability: An insurance company’s financial stability can be gauged by its AM Best financial strength rating. We chose insurers with an A rating or better.

• Discounts: Auto insurance policies that cover anything beyond basic liability can be costly. We picked companies who offered plenty of bundling options and generous discounts.

• Technology: Most of the companies on our list use automation to provide auto insurance quotes in a matter of minutes and allow customers to file claims 24/7. Car insurance companies that allow policyholders to file car insurance claims via apps ranked higher on our list.

• Customer experience: Filing a claim can undoubtedly be a hassle. To help you minimize the stress, we chose companies with high customer satisfaction ratings as reported on J.D. Power's 2022 U.S. Auto Claims Satisfaction Study and the NAIC’s 2022 Property/Casualty Market Share report. Finally, we looked at CRASH Network’s report rating insurers based on feedback from automotive collision repair professionals.

Summary of Money’s Best Car Insurance of October 2023

• Amica Mutual - Best Car Insurance Package
• Progressive - Best for Customizable Premiums
• State Farm - Best for Young Drivers
• Farmers - Best for Essential Worker and First Responder Discounts
• Nationwide - Best for Flexible Policies
• GEICO - Best Mobile App
• Allstate - Best Usage-Based Insurance Program
• USAA - Best for Military Members