Car insurance acts as a financial safety net in the event of an accident that causes costly damages or injuries to those involved, so finding the best company for your needs is critical to your financial health. The best auto insurance companies in the United States were chosen by Bankrate based on average annual premiums, customer satisfaction scores, financial strength ratings, and digital resources. Our insurance editorial team monitors the auto insurance market to ensure that we select carriers based on the factors that are most important to consumers, as informed by our insurance experts.
How did Bankrate choose the best car insurance companies for 2021?
We calculated a Bankrate Score out of 5.0 total points to provide consumers with an easy-to-use shopping and comparison tool. The higher a company’s Bankrate Score, the more competitive it was in each scoring category. Our picks highlight car insurance companies that:
- Create a Bankrate Score of 4.0 or higher.
- Obtain a J.D. Power Claims Customer satisfaction should be at least 20 points higher than the industry average.
- AM Best’s financial strength rating is “Excellent” or “Superior.”
- Maintain a strong digital presence through the use of a user-friendly mobile app or digital policy management features.
- Bankrate considers to be the “best” in a specific market category.
- Overall, USAA is the best car insurance company.
Why we chose this company: USAA easily makes our list of the best car insurance companies for December 2021, with the highest Bankrate Score of the auto insurers Bankrate analyzed, nationwide availability for active-duty military, veterans, and their families, and top-tier customer service. USAA, which is only available to current or former military members and their families, is a top performer in J.D. Power customer satisfaction surveys, has excellent financial strength as rated by AM Best, S&P, and Moody’s, and still manages to provide some of the industry’s lowest-priced auto insurance quotes.
Why USAA is the best overall car insurance provider: USAA receives high marks for customer service and financial strength from all major third-party agencies. In addition to having the lowest average full coverage premium on our list, military and veteran families have access to a variety of coverage options, rewards, and discounts, as well as special circumstances such as deployment for active-duty members. While not all drivers may be eligible for USAA coverage, the company stands out for millions of military families across the country.
2. State Farm
Why we chose this company: State Farm’s reach and reputation as the largest national auto insurer by market share easily lends itself to being one of the best car insurance companies for drivers in any state. Its extensive local agent network demonstrates its customer-first approach to providing consumers with a wide range of personal and commercial insurance products.
Why State Farm is the best car insurance company overall: State Farm has the highest Bankrate Score among all carriers available to all drivers nationwide. Over 19,000 licensed insurance professionals are available in communities across the United States to provide guidance to those who value expert insight when discussing their policy. Digital management options, such as a highly rated mobile app where you can file auto claims and contact your agent, allow for an on-the-go approach.
Policyholders looking for top-rated insurance coverage from local agents may benefit from this.
Why we chose this company: Clearcover’s technology-driven auto insurance is reshaping the insurance landscape, making it a strong contender for any driver looking for the best modern auto insurance experience. The digital approach of the insurtech company enables it to sell highly affordable policies.
Why Clearcover is the best choice for online presence: Despite the fact that it is currently only available to drivers in 16 states, Clearcover is disrupting the auto insurance market by focusing on technology. The carrier leverages artificial intelligence-based digital tools to revolutionize how car insurance is quoted, purchased, and serviced. Clearcover’s highly rated mobile app places policy management in the hands of users. Clearcover’s streamlined approach allows it to pay most auto claims in less than a week, with some even eligible for same-day processing.
Policyholders looking for a technology-driven insurance experience may benefit from this.
Why we chose this company: Geico’s long history as a dependable household name auto insurer is reflected in its high Bankrate Score, which is one of the reasons we included it as a top company for dependable car insurance. Coverage is available for almost every type of driver, making car insurance coverage available to customers with a blemished driving record.
Why Geico is the best option for high-risk drivers: Geico is one of the few top car insurance companies that will write policies for drivers even if they have had high-risk incidents, such as DUI convictions. While high-risk policies will always be more expensive than standard coverage, a high-risk driver will often struggle to find available coverage options, particularly from major insurers. For the majority of people, Geico is an easily accessible option. Drivers with a poor credit-based insurance score are also more likely to find better rates with the insurer, as full coverage in this credit tier costs an average of $1,978 per year, compared to the national average of $3,873 per year for those with poor credit standing.
Who this may be best for: policyholders who are considered high-risk drivers or have poor credit.
Why we chose this company: Travelers is a reputable insurer with over 150 years of experience in the auto insurance industry. Its strong independent agent network, robust savings opportunities, and proven financial track record make it a viable option for drivers across the country.
Why Travelers is the best option for low-budget drivers: The average full coverage car insurance rate in Travelers is $349 less than the national average. Affinity group discounts, consistent payment, and the company’s proprietary usage-based insurance program, IntelliDrive, which tracks your driving in real time and awards discounts for safe practices, are among the numerous car insurance discounts offered by the company. When comparing low-cost coverage to your likelihood of filing claims, Travelers’ claims satisfaction is not as high as it is for other companies Bankrate analyzed, which may be worth considering when comparing low-cost coverage to your likelihood of filing claims.
Policyholders looking for affordable full coverage may benefit from this.
Why we chose this company: We included Erie on our list because this super-regional insurer is generous with ‘optional’ coverages in its policies and scores competitively across all third-party agencies we researched. Erie also provides discount benefits and competitive rates to young drivers, who typically have the highest rates of any driver age group. According to our analysis of quoted annual premiums from Quadrant Information Services, drivers between the ages of 16 and 18 pay more than 43 percent less than the national average. Although coverage is not available nationally, Erie’s high Bankrate Score contributes to its position on our list of best car insurance companies for 2021.
Why Erie is the best for comprehensive coverage: Erie’s full coverage policies automatically include several coverage types and features that many competitors only offer as optional add-ons. Drivers can take advantage of included rideshare insurance, accident forgiveness, and Erie’s Rate Lock feature, which may help keep your premiums consistent over time. Despite being only available in 12 states, the company offers comprehensive coverage and a positive claims experience to drivers in its service areas.
Policyholders looking for comprehensive coverage may benefit from this.