Best Car Insurance Companies Of August 2023

Welcome to the latest update on the best car insurance companies as of August 2023.

In this guide, we will highlight some of the leading insurance providers known for their reliable coverage, excellent customer service, and competitive rates.

Whether you’re a new driver or a seasoned one, finding the right car insurance is crucial for your peace of mind on the road.

Let’s explore the top car insurance companies that are excelling in the market this year.

The Best Car Insurance Companies

Here are the best car insurance companies of August 2023, each excelling in various aspects:

1. American Family – Known for low complaint levels.

2. Auto-Owners – Offers cost-effective coverage for drivers with a history of accidents.

3. Nationwide – Ideal for usage-based or mileage-based insurance plans.

4. USAA – Recognized as the top choice for military members and veterans.

5. Geico – Offers the best overall car insurance rates.

6. Travelers – Provides competitive pricing for gap insurance.

7. Westfield – Offers excellent family discounts.

8. Erie – Highly rated by collision repair professionals.

9. Progressive – Known for competitive rates for drivers with a DUI.

10. State Farm – Offers the best renewal discount options.

Summary: Car Insurance Company Ratings

COMPANY FORBES ADVISOR RATING COLLISION REPAIR GRADE COMPLAINT LEVEL LEARN MORE

American Family
5.0
 
C+ Very low Compare Rates

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Auto-Owners
5.0
 
B+ Low Compare Rates

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Nationwide
5.0
 
C Very low Compare Rates

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USAA
5.0
 
C Average Compare Rates

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Geico
4.5
 
C- Average Compare Rates

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Travelers
4.5
 
C+ Very low Compare Rates

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Westfield
4.5
 
B Very low Compare Rates

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Erie
4.0
 
B+ Higher than the industry average Compare Rates

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Progressive
4.0
 
C Low Compare Rates

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State Farm
4.0
 
C- Low Compare Rates

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What Is the Best Car Insurance Company?

Our analysis finds that American Family, Auto-Owners, Nationwide and USAA are the best car insurance companies overall, with 5 stars in our ratings.

USAA auto insurance is available only to military members, veterans and their immediate family members.

The best car insurance companies for you will depend on your driving record, state and other individual factors. Shopping around to compare car insurance quotes will reveal the companies that can give you the best price for your situation.

Best for Low Car Insurance Rates: Geico

Geico comes in with the lowest rates nationwide that are available to the general public when we look at average rates across a variety of driving records and driver ages. (USAA is cheaper but membership is limited to car owners with a military connection.)

Drivers who have poor credit should compare quotes from Geico because of its competitive rates. Getting quotes is worthwhile if you have poor credit because many auto insurance companies charge much higher rates based solely on poor credit

Best for Low Complaints: American Family and Travelers

Complaints against a company are a reflection of customer service. Most complaints about car insurance companies revolve around problems with claims.

American Family and Travelers have very low levels of auto insurance complaints, based on verified complaints made to state insurance departments around the country.

Best for Collision Repair: Erie

Erie receives the highest grade from collision repair professionals among the companies we analyzed, with a B+. Collision repair professionals get an inside look at which insurers try to cut corners and which ones have the smoothest claims processes.

Best for Drivers With a Speeding Ticket: Geico and Westfield

Drivers who have gotten a speeding ticket can expect it to affect rates for three to five years, depending on your insurance company and state.

Geico and Westfield have the lowest rates for these drivers, among companies open to the general public. Westfield is a regional insurer that sells auto insurance in 10 states, mainly in the Midwest.

USAA also has low rates for military members and veterans who have speeding tickets on their records.

Best for Drivers Who Caused an Accident: Auto-Owners

A “chargeable” accident can stay on your record and affect your car insurance rates for three to five years, depending on your state laws and/or car insurance company.

Auto-Owners has the best average rates for drivers stuck in this spot, based on the companies we analyzed.

The severity of the accident, meaning the dollar cost of property damage and/or injuries, can affect the amount of your surcharge. Ask your auto insurance agent how long the surcharge will affect your car insurance rates.

Best for Drivers With a DUI: Progressive

You can’t avoid higher rates after a DUI, but Progressive offers the most competitive pricing for drivers in this situation, based on nationwide averages among the companies we analyzed.

Car insurance companies will usually pull your motor vehicle report when you’re getting a new quote or when your policy is coming up for renewal.

This is their chance to adjust rates based on your recent history of problems, and a DUI conviction will be a costly insurance problem.

Best for Military Members: USAA

With its consistently good rates and variety of coverage options, USAA remains the best car insurance option for military members year after year.

While the level of complaints about USAA auto insurance has been rising over the past couple of years, its current complaint level is about average for the industry.


Car Insurance by State

 

State Average annual cost for full coverage
Alabama $1,809
Alaska $2,323
Arizona $1,696
Arkansas $2,061
California $2,462
Colorado $2,489
Connecticut $1,730
Delaware $2,462
Florida $4,326
Georgia $2,181
Hawaii $1,633
Idaho $1,021
Illinois $2,345
Indiana $1,454
Iowa $1,238
Kansas $1,693
Kentucky $1,979
Louisiana $3,629
Maine $1,216
Maryland $3,349
Massachusetts $2,333
Michigan $2,995
Minnesota $2,360
Mississippi $1,704
Missouri $2,323
Montana $1,770
Nebraska $1,538
Nevada $3,342
New Hampshire $1,411
New Jersey $2,240
New Mexico $2,104
New York $4,769
North Carolina $1,307
North Dakota $1,319
Ohio $1,112
Oklahoma $2,291
Oregon $1,459
Pennsylvania $3,600
Rhode Island $2,715
South Carolina $2,387
South Dakota $1,821
Tennessee $1,720
Texas $2,938
Utah $1,955
Vermont $1,037
Virginia $1,486
Washington $1,829
West Virginia $1,688
Wisconsin $1,905
Wyoming $1,341
 

Source: Quadrant Information Services. Rates are based on liability coverage of 100/300/100 ($100,000 in bodily injury liability per person, $300,000 per accident, and $100,000 in property damage liability) uninsured motorist coverage and collision and comprehensive insurance with $500 deductible. 


What Is Car Insurance?

Car insurance is a contract between you and the insurance company that provides you with specific coverage in exchange for your premium payments. Your car insurance policy is the contract that outlines what you can make claims for.

The best car insurance policies cover your liability (meaning damage and injuries you cause to others), damage to your own vehicle, and car accident injuries to you and your passengers.

If you fail to pay your car insurance bill, coverage lapses and any claims you make can be denied.


How Can I Find the Best Price on Car Insurance?

Knowing the factors that affect car insurance rates, such as your credit, can help you identify ways to save. Here are the easiest ways to find a good deal on cheap car insurance.

Shop Around

To find the best price on car insurance, compare car insurance quotes from at least three companies for the same level of coverage. Because rates can vary wildly among companies, shopping around is the best way to get the biggest potential savings.

Choose a Higher Deductible

If you have collision and comprehensive coverage, choosing a higher car insurance deductible is another reliable method for lowering your insurance bill. (There is no deductible for liability insurance.)

Ask About Discounts

Many car insurance discounts will be automatically applied to your bill, such as “pay in full” discounts.

But sometimes your insurance company won’t know you’re eligible for a discount, so it’s good to ask.

For example, if you have a high school or college-age driver who gets good grades, ask about a good student discount.


How Much Does Car Insurance Cost?

Car insurance costs an average of $2,067 a year, based on Forbes Advisor’s analysis of rates from large car insurance companies. That’s $172 per month, on average.

 

Coverage Average annual car insurance cost for good drivers Average monthly car insurance cost for good drivers
USAA $1,412 $118
Auto-Owners $1,628 $136
Geico $1,716 $143
Westfield $1,759 $147
Travelers $1,852 $154
State Farm $1,959 $163
Nationwide $2,041 $170
Erie $2,144 $179
Progressive $2,157 $180
American Family $2,176 $181
Farmers $2,381 $198
Safe Auto $2,647 $221
Allstate $3,000 $250
Rates are based on a female driver, age 45, insuring a Toyota RAV4 with liability coverage of 100/300/100 ($100,000 in bodily injury liability per person, $300,000 per accident, and $100,000 in property damage liability) and collision and comprehensive insurance with a $500 deductible.

Factors That Impact the Cost of Car Insurance

Your car insurance cost will vary depending on several factors that typically include:

  • Your driving record
  • Your age and years of driving experience
  • Where you live
  • Car insurance coverage selections
  • Deductible amount (if you buy collision and comprehensive coverage)
  • Vehicle model
  • Your car insurance history, such as whether you’ve had continuous coverage or lapses
  • Your credit-based insurance score

Auto Insurance Rates Continue to Rise

Drivers spent 1.7% more on car insurance on average in June 2023 compared to May 2023, according to the U.S. Bureau of Labor Statistics (BLS). Each month the BLS tracks the average costs of goods and services—such as auto insurance.

Car insurance costs increased 16.9% from June 2022 to June 2023. Auto insurance rates continue to climb due to increased claims costs for insurers, which pass on the higher costs to customers in the form of higher rates. The uptick in claims costs is being fueled by more expensive car parts, labor and medical bills.


What Types of Car Insurance Are Required?

Liability insurance is required in almost all states and is one of the main types of car insurance.  Liability insurance pays for injuries and property damage you accidentally cause to others in an auto accident.

Uninsured motorist insurance is another type of car insurance that’s required in many states.

If an uninsured motorist crashes into you, this coverage will pay you and your passengers’ medical bills.

Although in states with a “no-fault” car insurance system, you’ll use your own personal injury protection (PIP) for the medical expenses of you and your passengers, no matter who was to blame for the accident.

Collision and comprehensive insurance are likely required for your car loan if you financed your vehicles.

Even if you don’t have a car loan it’s smart to have these types of car insurance, especially on newer vehicles.  Collision insurance covers car accidents with other vehicles or objects, such as a building or pole, and pays regardless of fault.

Comprehensive auto insurance covers car theft, fires, damage from severe weather, floods, hail, falling objects, vandalism and striking an animal.


Methodology

To identify the best car insurance companies we evaluated each company based on its average rates for a variety of drivers, the coverage options offered, complaints against the company and collision repair grades from auto body professionals.

Auto insurance rates (50% of score): We used data from Quadrant Information Services to find average rates from each company for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit, drivers caught without insurance, adding a teen driver, senior drivers and young drivers.

Unless otherwise noted, rates are based on a 40-year-old female driver with a Toyota RAV4 and coverage of:

  • $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 for property damage (known as 100/300/100).
  • Uninsured motorist coverage of 100/300.
  • Collision and comprehensive insurance with a $500 deductible.

Car insurance coverage options (25% of score): Any auto insurance company can provide the basics of liability insurance, collision and comprehensive coverage and other standard offerings.

But it’s also important to have access to additional coverage types that can provide greater protection or cost savings. In this category, we gave points to companies that offer accident forgiveness, new car replacement, vanishing deductibles, usage-based or pay-per-mile insurance and SR-22s.

Complaints (20% of score): We used complaint data from the National Association of Insurance Commissioners. Each state’s department of insurance is in charge of logging and monitoring complaints against the companies that operate in their states.

Most auto insurance complaints center on claims, including unsatisfactory settlements, delays and denials. The industry complaint average is 1.00, so companies with a ratio below 1.00 have lower levels of complaints.

Collision repair (5% of score): We incorporated grades of insurance companies from collision repair professionals.

We used data provided by CRASH Network, a weekly newsletter covering the collision repair and auto insurance market segments.


Best Car Insurance Companies FAQ

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