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Car insurance shoppers often put the most importance on price. Here are average annual and monthly costs for good drivers.
Here’s a look at car insurance rates based on averages nationwide among the largest insurance companies.
Shopping around for car insurance can result in savings, but many car owners renew their policies each year without checking prices from other insurance companies. A March 2022 Forbes Advisor survey of 2,000 drivers asked what would motivate them to shop for a new car insurance policy. More than half said any of these three reasons would get them to shop around:
Older drivers (ages 58 to 76) chose price as the No. 1 reason to shop around, while bad claims experiences and coverage types were tops for younger drivers (ages 18 to 25).
Your car insurance cost will vary depending on several factors that typically include:
Once you decide how much car insurance you need, it’s time to start shopping for a policy. Rates often vary widely among companies for the exact same coverage, so it’s smart to compare car insurance quotes from multiple insurers. For example, in California, rates for a good driver range from $1,668 (Wawanesa) to $3,940 (The Hartford)—a range of about $2,270 for the exact same driver. Here’s what you should do to find the cheapest car insurance. 1. Shop aroundIf you don’t shop around, you won’t know if your rates are on the high end or the cheapest. Getting multiple quotes will help you find the most affordable car insurance company. You can find free quotes online or by working with an auto insurance agent. Independent insurance agents can provide quotes from multiple companies. Insurance quotes are always free. 2. Ask about discountsAsk about car insurance discounts when you’re getting car insurance quotes. You can typically knock down your car insurance costs with discounts for:
3. Choose a higher deductibleCollision and comprehensive coverage have a deductible. The deductible is the amount of money a car insurance company deducts from an insurance claims check. The higher your deductible, the less you’ll pay for insurance. Here’s an example. Let’s say you get into an accident and your car suffers $2,000 worth of damage. If your collision deductible is $500, the insurer will deduct that from the settlement amount, so you’d get a $1,500 check to cover the repairs. If you decide on a high deductible, try to set aside money for that deductible, so you have it available if you need to file a claim later. 4. Ask about pay-per-mile policy if you don’t drive muchIf you own a car but take public transportation to work and don’t drive your vehicle much, check out pay-per-mile auto insurance policies. These policies charge a monthly base rate and also a per-mile rate. They can be a more affordable option if you don’t spend much time behind the wheel. Let’s say your pay-per-mile insurance has a base rate of $40 a month and a 5-cent per mile rate. If you drive 500 miles in a month, your monthly bill would be $65 ($40 plus 500 miles times $.05). 5. Ask about usage-based car insuranceUsage-based insurance (UBI), also called telematics, may sound like pay-per-mile, but it’s quite different. With a usage-based insurance policy, the car insurance company tracks your driving closely and creates a driving score. For instance, a usage-based insurance program might track your speed, braking, acceleration, miles driven and time of day. The program will use a smartphone app or a device attached to the vehicle to track your driving. These programs often come with an initial discount and then you may save more based on your driving. But not all drivers with UBI can save money. These programs are best suited for excellent drivers.
Here are types of car insurance that are generally required by states. Liability insurance: Required in most states. Car liability insurance pays for injuries and property damage you cause to others. A good rule of thumb is to buy enough liability insurance to cover what can be taken from you in a lawsuit. Uninsured motorist coverage (UM): Mandatory in some states and optional in others. Uninsured motorist insurance pays for you and your passengers’ medical bills and other expenses if someone crashes into you and they don’t have any liability insurance. A related coverage, underinsured motorist coverage, helps with you and your passengers’ medical bills when a driver with insufficient coverage causes an accident resulting in injuries. Collision and comprehensive insurance: Required if you have a car loan or lease. These are two separate coverage types often sold together. Collision and comprehensive insurance pay for your vehicle repair bills due to problems such as car accidents, car theft, fires, floods, severe weather, falling objects, vandalism and collisions with animals. Personal injury protection: Required in some states. Some states use a no-fault car insurance system. In these states you’ll make smaller injury claims on your own auto insurance no matter who was to blame. These claims fall under personal injury protection, which is required in no-fault states and available in some others.
Sometimes getting the best car insurance means adding extra coverage in order to get more protection or guard against unexpected out-of-pocket expenses. Here are some other auto insurance types to consider. Accident forgiveness. Raising your car insurance rates after you cause an accident is standard operating procedure for car insurance companies. If you get “accident forgiveness” coverage from your insurer, you can escape a rate increase after your first at-fault accident. Some insurers go a step further and also “forgive” a moving violation, such as a speeding ticket. Gap insurance. Do you have a large car loan balance or lease? If your car is totaled, the insurance payout for the vehicle could be much less than your balance. Gap insurance pays the difference. New car replacement. If you’re the unlikely driver who totals your new car, this coverage can help. It will pay to replace your car with a similar new car, rather than compensating you only for the depreciated value of your car. New car replacement coverage rules can vary among insurers for what qualifies as a “new” car so check the details. Pay-per-mile insurance. If you drive very little, pay-per-mile auto insurance could be a good bet for you. Part of your premium hinges on exactly how many miles you drive each month. The other part, called the base rate, doesn’t change from month to month. SR-22 insurance. An SR-22 is definitely not something you want, but you may need an insurer that provides it. Your state could require you to obtain an SR-22 form to prove that you have auto insurance. Your insurance company needs to send this form to the state to verify you have coverage, but not all insurers perform this service. You might end up with an SR-22 requirement if, for example, you rack up a lot of moving violations or you cause an accident while driving uninsured. Usage-based insurance. This type of policy has the potential to reduce your car insurance bill if you’re a really good driver. This typically means no speeding, hard braking, hard cornering and other factors. Usage-based insurance (UBI) programs use either an app or a device that plugs into your car to track your driving habits. But don’t count on savings from usage-based insurance. Less than half (48%) of drivers who opt into a usage-based insurance program actually see savings, according to TransUnion’s 2022 Insurance Trends and Outlook Report. Premiums stayed the same for 30% of drivers using UBI. Vanishing deductibles. If you have a collision or comprehensive insurance claim, your insurance check will be reduced by your deductible. Some auto insurers take the sting out of deductibles by offering a vanishing deductible. Generally this means a set reduction (such as $100) for every year you don’t make a claim.
Complaints collected nationwide against car insurance companies reveal problem spots for some insurers. The National Association of Insurance Commissioners calculates a complaint ratio for each company that reflects the number of complaints in relation to the insurer’s business size.
If you’re lucky, you’ll have very little experience with collision repairs. That also means you won’t necessarily know if you’re getting superior claims service compared to other insurers. Collision repair professionals have the advantage of dealing with insurers daily and seeing which companies try to cut corners on claims, and which companies have processes that slow down the repair process. For this reason we incorporated grades of insurance companies from collision repair professionals, supplied by CRASH Network. “Drivers pay their auto insurance premiums every month, yet they only find out how well that insurer will take care of them when they file a claim—which happens about once a decade for the average driver,” says John Yoswick, editor of CRASH Network, which has a weekly newsletter covering the collision repair and auto insurance market segments. “But auto body repair shops see every day which insurance companies prioritize cost-savings by pushing to use the cheapest parts and repair methods, and which insurers take better care of their policyholders by prioritizing repair quality and the use of automaker-recommended repair methods and parts,” he says. CRASH Network produces an annual Insurer Report Card that gives insight into insurers’ claims processes that others don’t see. Auto body repair professionals across the country are asked, “How well does this company’s claims handling policies, attitude and payment practices ensure quality repairs and customer service for motorists?” “This knowledge gives body shops a unique perspective on which insurance companies consistently earn an ‘A’ when it comes to customer service and a proper repair for their policyholders, and which insurers deserve a ‘C’ or ‘D,’” says Yoswick. Among 75 insurers scored by CRASH Network, only North Carolina Farm Bureau, Chubb, Erie and Michigan Farm Bureau received grades in the “A” range.
Geico sells insurance for cars, motorcycles and classic cars. For those who enjoy a little more adventure, Geico also sells insurance for RVs, ATVs and boats. Optional coverage types for auto insurance includes emergency road service, rental reimbursement and mechanical breakdown insurance. If you’re concerned about a rate increase after an accident, Geico offers accident forgiveness insurance, which you can pay to add to your policy or earn by maintaining a clean driving record. Geico will waive the first at-fault accident caused by an eligible driver listed on your policy. Geico also sells Mexico auto insurance if you plan to drive south of the border. Geico Car Insurance DiscountsGeico offers many discounts, especially for drivers who practice safe driving habits. If you’re in the military or are part of an emergency deployment, you could receive between 15% and 25% off your policy. And, if you’re a loyal customer, you can benefit from the multi-vehicle discount or the multiple policy discount. Other auto insurance discounts include:
More: Geico Car Insurance Review
Nationwide sells insurance for cars, classic cars, RVs, motorcycles, ATVs, scooters, golf carts and boats. For winter-fun enthusiasts, Nationwide sells insurance for snowmobiles. For drivers concerned about paying a high deductible in the event of an accident, Nationwide offers a vanishing deductible. Every year you go without an accident, you can earn $100 off your deductible, up to $500 total. Nationwide also offers accident forgiveness, which helps drivers avoid a rate increase due to an at-fault accident. While you have to pay to add this coverage to your policy, it can help offset the premium increase that typically applies after an at-fault accident. Nationwide’s Pay-Per-Mile and Usage-Based Auto InsuranceNationwide has two options for customers looking to reduce their car insurance bills through low mileage or superior driving skills. For low-mileage drivers, Nationwide offers SmartMiles, which provides the same coverage as a traditional Nationwide auto insurance policy but largely bases your premium on the actual mileage driven. Your rate consists of two components: a base rate and a variable rate (the cost per mile). Since your variable rate is determined by how much you drive, your monthly rate will vary month-to-month. Nationwide also offers savings potential with its SmartRide usage-based insurance program. When you sign up you can earn up to 10%. Then, if your driving habits are good enough, you could earn up to 40% off your auto insurance. Nationwide Auto Insurance DiscountsNationwide offers several discounts, especially for drivers with safe driving habits. If you have a driver in high school or college, look for Nationwide’s discounts for good students. Other car insurance discounts from Nationwide include:
More: Nationwide Car Insurance Review
Travelers sells car, boat and yacht insurance (for those who prefer traveling via water). Optional auto insurance add-ons include roadside assistance coverage and rental reimbursement coverage. For drivers who want to protect a vehicle when it’s financed or leased, Travelers offers loan/lease gap insurance. If your vehicle is totaled, this coverage can pay your the difference between the actual cash value of the car and the remaining balance of your loan or lease. Travelers Car Insurance DiscountsTravelers offer many possible discounts. If you enjoy getting ahead of your bills, look for EFT and pay-in-full discounts. Travelers’ car insurance discounts include:
More: Travelers Car Insurance Review
USAA sells insurance for cars, motorcycles, ATVs, motorhomes, boats and classic cars. And, for those who fly to their destinations, aviation insurance. Optional coverage types include roadside assistance and rental reimbursement. Current and former U.S. military members, and spouses and children of U.S. military members are eligible for USAA insurance. For drivers concerned about a rate increase after they cause an accident, USAA offers accident forgiveness insurance. If you remain accident-free for five years, your premium won’t go up after one at-fault accident. USAA also offers rideshare coverage for drivers with Uber, Lyft and other services. USAA Auto Insurance DiscountsIf you’ve had USAA auto insurance for a few years, you can benefit from “length of membership savings.” And if you add auto insurance to a USAA homeowners or renters insurance policy, you could save up to 10%. Other USAA car insurance discounts include:
More: USAA Car Insurance Review
Auto-Owners sells vehicle insurance for cars, ATVs and off-road vehicles, motorcycles, trailers, and boats. For those who enjoy exploring the nation in a motorhome, Auto-Owners sells motorhome and RV coverage. Optional add-ons include roadside assistance coverage, additional expense coverage, and lease or loan gap coverage. If you choose to purchase the Personal Automobile Plus Package from Auto-Owners, you’ll receive 10 other coverage add-ons including identity theft protection, re-keying locks and cell phone replacement. Auto-Owners also sells “diminished value” coverage. With this coverage, you receive compensation if you’re in an accident and the damage depreciates the value of the vehicle even after it’s repaired. Auto-Owners Insurance customers may be eligible for a few additional benefits, including “collision coverage advantage.” With this benefit, your collision deductible is waived if you’re in an accident with another vehicle insured by Auto-Owners Insurance. Auto-Owners Car Insurance DiscountsAuto-Owners offers several discounts, especially for students. If you have a young driver who’s in school, look for Auto-Owners discounts for good students and students away at school. If you’re passionate about saving the environment, you can benefit from the green discount. Other discounts include:
More: Auto-Owners Car Insurance Review
State Farm is currently the largest auto and home insurer in the U.S. It sells vehicle insurance for cars, motorcycles, RVs, off-road vehicles and boats. For those who have antique and classic cars, State Farm provides coverage for vintage vehicles. State Farm Auto Insurance DiscountsWhether you’re a safe driver or have multiple vehicles under one policy, you might be able to save on State Farm auto insurance rates.
More: State Farm Car Insurance Review
Allstate sells vehicle insurance for cars, motorcycles, classic cars and boats. For those that enjoy the outdoors and adventure, Allstate also offers coverage for ATVs and RVs. Optional coverage that can be added to an Allstate policy include roadside assistance, rental reimbursement and sound system insurance. Allstate also offers add-on coverage of gap insurance, new car replacement and diminishing deductible. Gap insurance helps if your car is totaled in an accident and you owe more than the vehicle’s value. Alllstate’s new car replacement coverage will pay to replace your car with a new car of the same make and model if it is two model years old or less and totaled in an accident covered by your policy. And enrolling in the diminishing deductible gets you $100 off your collision deductible immediately, and if you remain claim-free you can continue to reduce your deductible each year, up to a maximum of $500 off. Allstate Auto Insurance DiscountsAllstate offers a variety of car insurance discounts, particularly for safe drivers. Teen drivers and their parents can take advantage of discounts such as the smart student discount and teenSMART driver education program. Car features like anti-lock brakes and anti-theft devices can also result in discounts. Other discounts include:
More: Allstate Car Insurance Review
Erie’s vehicle insurance is available for cars, motorcycles, recreational vehicles, classic cars and boats. You can also purchase insurance for snowmobiles, RVs, ATVs and golf carts. Optional add-ons include:
For drivers who recently purchased a new car, Erie sells new car protection. With this coverage, your car will be replaced with the latest model if it’s deemed a total loss due to an accident covered by your policy. Erie also offers “better car protection” that pays to replace your vehicle with a car two years newer. Erie Auto Insurance DiscountsErie offers several auto insurance discounts, especially for safe drivers. If you have a driver under age 21on your policy, look for Erie’s discount for young drivers. If you don’t use your car for an extended amount of time, you could benefit from the reduced usage discount. Other discounts include:
More: Erie Car Insurance Review
A March 2022 Forbes Advisor survey found that most drivers do not understand their own auto insurance coverage. They cannot correctly identify the car insurance types that would cover common situations. Liability insurance is among the most misunderstood coverage types. Here’s a look at how much drivers don’t know about auto insurance. Many drivers also think they have car insurance coverage that isn’t actually available. For example:
To identify the best car insurance companies we took a holistic view of each company that incorporates scores for auto insurance rates, the coverage options offered, complaints against the company, collision repair and how easy it is to understand the information on their websites. 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. 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. Collision repair (5% of score): Auto body shop professionals have an insider view of each company’s approach to repairs. The better insurers don’t apply pressure to cut costs or install lower-quality repair parts. Some insurers also have processes that help speed up repair and claims processes, making for more happy customers. We used data provided by CRASH Network, a weekly newsletter covering the collision repair and auto insurance market segments. CRASH Network’s 2021 Insurer Report Card used grades from more than 1,000 collision repair professionals to gauge auto insurers on the quality of their collision claims service. Website readability: Bonus points. It’s important to understand the coverage you’re buying, and insurance company websites should help you do that. But many insurer websites don’t do a good job explaining the products they sell. Many insurer sites are filled with passive voice, jargon, complex words and long sentences.. Forbes Advisor asked VisibleThread to analyze the readability of insurance company websites. VisibleThread is a language analysis platform that improves the efficiency, clarity and compliance of mission-critical business writing. Read VisibleThread’s Forbes Advisor Research Report.
For the auto insurance knowledge test, a survey of 2,000 U.S. adults was commissioned by Forbes Advisor and conducted by market research company OnePoll, in accordance with the Market Research Society’s code of conduct. Data was collected March 23-24, 2022. The margin of error is +/- 2.2 points with 95% confidence. This survey was overseen by the OnePoll research team, which is a member of the MRS and has corporate membership with the American Association for Public Opinion Research (AAPOR). For a complete survey methodology, including geographic and demographic sample sizes, contact .
According to Forbes Advisor’s analysis, Geico, Nationwide, Travelers and USAA have the best car insurance. These companies score the highest based on low rates, coverage selections, collision repair, complaints and website readability.
The key to finding a good deal is to get car insurance quotes from multiple companies. That’s the only way you’ll know what companies are going to charge and which companies are coming in with the lowest rates. Another good savings strategy is to bundle auto insurance with another policy, such as homeowners or renters insurance. Buying more than one policy from the same company typically results in a decent discount.
Discounts on vehicle safety equipment, such as airbags, are easy to get. Make sure to get a bundling discount by buying from the same company if you need more than one type of insurance policy. Good driver car insurance discounts are common. If you have a teen or young adult driver, you may be able to get a good student discount. And you may be able to get a small discount for things you would do anyway, like going paperless by receiving insurance bills and policies electronically.
Most states (except New Hampshire and Virginia) require liability auto insurance to pay for damage and injuries you cause to others. Many states also require uninsured motorist coverage. This does not pay out to other motorists. It pays for medical bills to you and your passengers if you’re hit by someone who doesn’t have auto insurance—or not enough. And states that have a no-fault car insurance system require that car owners buy personal injury protection (PIP). PIP pays your medical bills no matter who caused the accident. |