9 Best Car Insurance Companies of January 2023

NJM tops our list of the best 2023 auto insurance companies, followed by American Family and Nationwide.
Kayda Norman
By Kayda Norman 
Edited by Lacie Glover

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The best car insurance companies give their customers more than just the coverage they want at a reasonable price. Those insurers also provide a customer-first experience, including a headache-free way to manage policies and make payments.

To pinpoint the best auto insurance companies, we looked at customer complaints data, consumer experience and financial strength. We also researched coverage offered and how easily you can interact with the insurer online when you’re getting a quote or filing a claim.

Based on these factors, these are our top auto insurance companies for 2023.

Why you can trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage so you can choose the insurance policy that works best for you. These carrier ratings are specific to auto insurance — a company's rating for other products may be different on our site. That's why it's smart to compare car insurance rates from several companies before choosing an insurer.

The best car insurance companies of January 2023

The following companies received 5 stars out of 5 in NerdWallet’s analysis of the best auto insurers in the U.S.

Company

Star Rating

5.0

NerdWallet rating 

5.0

NerdWallet rating 

5.0

NerdWallet rating 

5.0

NerdWallet rating 

5.0

NerdWallet rating 

5.0

NerdWallet rating 

5.0

NerdWallet rating 

5.0

NerdWallet rating 

5.0

NerdWallet rating 

How we ranked the top auto insurers

NerdWallet’s editorial team considered pricing, discounts, complaint data from the National Association of Insurance Commissioners and more to determine the best car insurance companies. Our “ease of use” category includes factors such as website transparency and how easy it is to file a claim. As we continue to evaluate more insurance providers and receive fresh market data, this list of best auto insurance companies is likely to change.

Best car insurance companies: Pros and cons

Learn more about our top auto insurance companies by reading our brief summaries below. For more details, check out our comprehensive reviews.

NJM: Best raw star rating score

5.0

NerdWallet rating 

Bottom line: NJM is one of a handful of insurers with a five-star rating, offering some of the cheapest car insurance rates on average. However, its policies are available in only five states.

Policies available in: Connecticut, Maryland, New Jersey, Ohio and Pennsylvania.

Average national rate: $1,898.

Pros: NJM has high customer satisfaction ratings and low customer complaints. New Jersey policyholders may also receive dividend payments.

Cons: Policies are not available in many states. NJM customers do not have access to a mobile app to manage their policy.

Company overview: New Jersey Manufacturers Insurance, or NJM, tops our list as the insurer with the highest score in 2023 out of the companies we ranked.

NJM also ranked highly in J.D. Power’s satisfaction studies. It's ranked No. 4 among 13 insurers in the mid-Atlantic region in the 2022 U.S. Auto Insurance Satisfaction Study,

J.D. Power. 2022 U.S. Auto Insurance Study. Accessed Dec 19, 2022.
which measures overall customer satisfaction. It’s ranked No. 2 in J.D. Power’s Auto Claims Satisfaction Study.

You can get all the standard auto coverage options from NJM, along with extras including new car replacement coverage and pet coverage, which pays for veterinary bills if your pet is injured in a covered car accident. You can also add gap insurance to help pay off your car loan if your vehicle is stolen or totaled.

» Read the full review: NJM auto insurance review

American Family: Best large insurer

5.0

NerdWallet rating 

Bottom line: Offering various coverage options, American Family shines when it comes to discounts, with savings for insuring multiple vehicles, completing a defensive driving course and having a student away at school.

Policies available in: 19 states, mainly throughout the Midwest and Pacific Northwest.

Average national rate: $2,059.

Pros: American Family offers a wide range of discounts and many coverage types.

Cons: American Family policies aren't available in all states.

Company overview: American Family stands out this year as our best large insurer of 2023.

In J.D. Power’s 2022 customer satisfaction study,

J.D. Power. 2022 U.S. Insurance Shopping Study. Accessed Dec 19, 2022.
American Family ranked above average among 11 midsized insurers for satisfaction with the insurance shopping experience. J.D. Power ranked American Family No. 8 out of 21 companies for auto insurance claims satisfaction in 2022.

American Family offers a range of discounts to drivers in some states, including for loyalty, completing a defensive driving course and students away at school. The company also has apps to monitor driving, allowing good drivers to earn discounts.

» Read the full review: American Family auto insurance review

Nationwide: Best perks for loyal customers

5.0

NerdWallet rating 

Bottom line: Nationwide’s wide variety of coverage options and low number of complaints make it a solid choice for many consumers.

Policies available in: All states and Washington, D.C., except for Alaska, Louisiana and Hawaii.

Average national rate: $2,441.

Pros: Generous extras for loyal customers such as minor accident forgiveness, pet injury coverage and car key replacement.

Cons: Customer satisfaction for auto insurance is lower than average, according to recent J.D. Power studies for shopping

J.D. Power. 2022 U.S. Insurance Shopping Study. Accessed Dec 19, 2022.
and claims.

Company overview: Nationwide offers multiple discounts and auto insurance options, with plenty of extras for loyal customers. Benefits include up to $400 to replace your lost or stolen car keys if you have comprehensive insurance and pet injury protection if you have collision coverage.

The company also includes minor accident forgiveness in its loyalty rewards program, which means your rates won’t go up if you get in a fender bender and file a claim that’s under Nationwide’s accident threshold. There’s no limit on the number of accidents.

» Read the full review: Nationwide auto insurance review

Progressive: Best for accident forgiveness

5.0

NerdWallet rating 

Bottom line: Progressive’s customer satisfaction scores aren’t as high as those of other companies, but it offers enough discounts and insurance products to accommodate most people.

Policies available in: All 50 states and Washington, D.C.

Average national rate: $2,833.

Pros: Progressive, one of the largest insurers in the nation, offers unique perks such as free accident forgiveness for most customers.

Cons: Progressive has a below-average rating for car insurance shopping, according to J.D. Power’s customer satisfaction survey.

J.D. Power. 2022 U.S. Insurance Shopping Study. Accessed Dec 19, 2022.

Company overview: Progressive has different features and options depending on your state.

Some of the more interesting additions include two free accident forgiveness options so your rates won’t increase after a crash. Small accident forgiveness is automatically included with your policy in most states and forgives accidents with $500 or less in repairs. Customers who have been with the company for at least five years without any accidents or traffic violations are eligible for large accident forgiveness that covers bigger crashes.

For pet owners, Progressive offers pet injury protection, which is included with collision coverage, and a deductible “savings bank,” which knocks your deductible down by $50 each claim-free policy period to a minimum of $0.

» Read the full review: Progressive auto insurance review

Country Financial: Best for having few customer complaints

5.0

NerdWallet rating 

Bottom line: Country Financial has few customer complaints for auto insurance but is available in only 19 states.

Policies available in: Alabama, Alaska, Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nevada, North Dakota, Oklahoma, Oregon, Tennessee, Washington and Wisconsin.

Average national rate: $2,175.

Pros: Country Financial has fewer complaints than expected for auto and life insurance.

Cons: Policies aren't available in all states.

Company overview: Country Financial may have started out as a farm and crop insurer, but it now offers a wide selection of products such as business, boat and motorcycle insurance. In addition, it received far fewer customer complaints for auto insurance than similar-sized companies and received the least complaints out of the insurers on our 2023 best list.

In addition to a variety of discounts, Country Financial also gives customers an opportunity to save based on their driving habits through its app, DriverIQ. Drivers who sign up earn an automatic discount, and driving behavior won’t increase rates.

Auto-Owners: Best for financial strength

5.0

NerdWallet rating 

Bottom line: People who need several insurance policies may benefit from the convenience of bundling them with Auto-Owners, which has many coverage options and superior financial strength.

Policies available in: Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia and Wisconsin.

Average national rate: $2,524.

Pros: Auto-Owners has fewer complaints when compared with other companies and offers a wide variety of products with the opportunity to bundle.

Cons: The company sells policies in only 26 states.

Company overview: Auto-Owners earned an A++ rating from AM Best for financial strength, one of the most important factors to consider when choosing an insurer. A company’s financial strength is a strong indicator of the company’s ability to pay a claim.

Auto-Owners also offers perks to customers, including waiving your deductible in certain situations. The insurer will waive your collision deductible if you get in an accident with another Auto-Owners customer. It will also waive or reduce your auto insurance deductible if you have home and auto coverage through the company and make a claim due to the same covered loss.

In J.D. Power’s 2022 studies,

J.D. Power. 2022 U.S. Insurance Shopping Study. Accessed Dec 19, 2022.
Auto-Owners ranked No. 5 among 11 mid-sized insurers for customer satisfaction regarding insurance shopping and ranked No. 14 out of 21 companies for customer claims satisfaction in 2022.

» Read the full review: Auto-Owners insurance review

Amica: Best for discounts

Bottom line: High marks for customer satisfaction and numerous discounts make Amica a great choice for most drivers.

Policies available in: Every state but Hawaii.

Average national rate: $4,595.

Pros: Amica has high customer satisfaction ratings and low consumer complaints. It also offers multiple discounts and dividend-paying policies, which may save you money in the long run.

Cons: Amica doesn’t sell policies in Hawaii.

Company overview: If you’re looking to save on your auto policy, Amica may be worth a look. The company offers more discounts than most other insurers, including discounts for owning a home, insuring more than one vehicle, taking a defensive driving course and setting up automatic payments.

If you have to go through the claims process, you may not even see an increase in your rates. Customers who opt for certain upgrades can earn “Advantage Points” for good driving, renewing a policy and referring other drivers. These points can be used to keep your current rate after an accident.

In J.D. Power’s 2022 studies,

J.D. Power. 2022 U.S. Insurance Shopping Study. Accessed Dec 19, 2022.
Amica ranked No. 3 among 11 midsized insurers for insurance shopping satisfaction. J.D. Power also ranked Amica No. 1 out of 21 insurers for overall auto claims satisfaction in 2022.

» Read the full review: Amica auto insurance review

State Farm: Best for customer satisfaction

5.0

NerdWallet rating 

Bottom line: With generous coverage and discounts for good driving habits, State Farm is a popular insurer with better customer satisfaction ratings compared with other large competitors and low customer complaints.

Policies available in: You can buy a State Farm auto insurance policy in all states except for Massachusetts and Rhode Island, where it does not sell new policies. You can also buy a car insurance policy in Washington, D.C.

Average national rate: $2,470.

Pros: State Farm's customer satisfaction ratings for buying auto insurance and auto claims are better than average, according to J.D. Power. The company also offers numerous discounts, including two programs — one for safe driving and the other for young drivers.

Cons: State Farm doesn’t offer gap insurance.

Company overview: The largest personal auto insurer in the country, State Farm ranked No. 1 among eight large insurers in J.D. Power's 2022 U.S. Insurance Shopping Study.

J.D. Power. 2022 U.S. Insurance Shopping Study. Accessed Dec 19, 2022.
The same year, it ranked No. 7 out of 21 companies in J.D. Power’s U.S. Auto Claims Satisfaction Study and first for overall satisfaction in the Southwest.

The company offers discounts to drivers for having multiple cars, being a good driver and taking a defensive driving course. State Farm has a safe driving app where you can earn a discount by following the rules and driving sensibly.

» Read the full review: State Farm auto insurance review

Auto Club Group: Best for membership perks

5.0

NerdWallet rating 

Bottom line: Auto Club Group insurance is available to members and nonmembers, but the perks and discount on your auto insurance might make joining worth it.

Policies available in: Florida, Georgia, Illinois, Iowa, Michigan, Minnesota, Nebraska, North Carolina, North Dakota, South Carolina, Tennessee and Wisconsin. Auto Club Group may not cover all counties in each state.

Average national rate: $4,804.

Pros: Auto Club Group has few consumer complaints.

Cons: To get access to certain perks and discounts, you need a AAA membership.

Company overview: With a wide variety of discounts and fewer complaints for auto insurance than other companies its size, the Auto Club Group is a good option for many drivers. You don’t need to be a AAA member to get a policy, but if you do join, you’ll receive an additional discount on your auto insurance. Members also have access to AAA’s perks, including discounts on hotels and restaurants.

Auto Club Group offers plenty of auto insurance options, such as rideshare insurance and gap insurance, which pays the difference between your car’s value and the balance of your loan or lease if the car is totaled or stolen.

» Read the full review: AAA auto insurance review

Finding the best car insurance company for you

Pricing and discounts made up a portion of each insurer’s score, but we know that cost is the top factor for many auto insurance shoppers. Because pricing is based on personal factors including your age, location, vehicle, credit history and gender (in most cases), it’s important to shop around for car insurance quotes to find the cheapest option.

You may find that your shopping experience also sheds light on a company’s customer service standards.

To find the top car insurance companies:

Visit your state insurance commissioner’s website to find complaints and other information about companies in your area.

Ask your agent or a customer service representative questions to make sure you’re getting all the coverage you need — and nothing you don’t want.

Consider smaller auto insurance companies, too. Small companies offer rates well below those of large competitors in many locations.

If you’ve had a ticket, DUI or other violation, be sure to shop three to five years after the incident, when surcharges can drop significantly.

Want to see rates? Use the cheap full coverage calculator and compare average rates from the three cheapest car insurance companies where you live.

Car insurance by state

When you're looking for the best car insurance company, remember that location can have a big impact on your auto insurance rates — each state has different insurance requirements.

To give you a better idea of what you'll pay in each state, NerdWallet analyzed full coverage insurance rates for 35-year-old drivers with good credit and no recent accidents, DUIs or traffic violations.

The map below shows the average annual car insurance rate in each state. For more information, including the cheapest insurer on average from each state, visit the state page linked in the map.

Car insurance rates for full coverage insurance by state

State

Annual Premium

$2,269

$1,955

$2,155

$2,160

$1,626

$2,698

$2,604

$2,601

$3,605

$2,509

$1,631

$1,349

$1,747

$1,433

$1,596

$2,290

$3,357

$3,399

$1,323

$2,998

$1,342

$3,229

$1,931

$1,950

$2,706

$2,831

$1,788

$3,058

$1,557

$2,809

$2,127

$2,600

$1,487

$1,869

$1,423

$2,438

$1,888

$2,266

$3,101

$2,715

$1,593

$1,997

$2,398

$2,240

$1,376

$1,922

$1,759

$2,260

$2,075

$1,683

$1,553

Frequently asked questions

There is no single best car insurance company. The best company for you will depend on your needs.

To help you with your search, NerdWallet ranked insurers based on pricing, discounts, complaint data and more. The following companies received 5 stars out of 5 in NerdWallet's analysis of the best auto insurers: American Family, Amica, Auto Club Group, Auto-Owners, Country Financial, Nationwide, NJM, Progressive and State Farm.

To find the best auto insurance policy for you, think carefully about what kind of coverage you need. For instance, if you're looking for a specific type of coverage such as rideshare insurance, check to make sure the company offers this before buying a policy.

When comparing insurers, make sure to select the same coverage levels so you can compare quotes equally. You'll also want to look at a company's customer complaints on your state insurance commissioner’s website and financial strength through a rating site like AM Best.

Across the U.S., State Farm has the cheapest car insurance on average per year for minimum coverage. However, this is based on average premiums, and your rate will vary based on factors such as your age, location and car make and model. Shop around to find the cheapest rate for you.

Methodology

Insurer complaints methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2019-2021. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

Auto insurance ratings methodology

NerdWallet’s auto insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints and discounts. Our “ease of use” category looks at factors such as website transparency and how easy it is to file a claim. Using our editorial discretion, we also consider customer satisfaction surveys. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines and full ratings methodology for auto insurance.

Average rates methodology

NerdWallet averaged rates based on public filings obtained by pricing analytics company Quadrant Information Services. We examined rates for men and women for all ZIP codes in any of the 50 states and Washington, D.C. Although it’s one of the largest insurers in the country, Liberty Mutual is not included in our rates analysis due to a lack of publicly available information.

In our analysis, “good drivers” had no moving violations on record; a “good driving” discount was included for this profile. Our “good” and “poor” credit rates are based on credit score approximations and do not account for proprietary scoring criteria used by insurance providers.

These are average rates, and your rate will vary based on your personal details, state and insurance provider.

Sample drivers had the following coverage limits:

  • $100,000 bodily injury liability coverage per person.

  • $300,000 bodily injury liability coverage per crash.

  • $50,000 property damage liability coverage per crash.

  • $100,000 uninsured motorist bodily injury coverage per person.

  • $300,000 uninsured motorist bodily injury coverage per crash.

  • Collision coverage with $1,000 deductible.

  • Comprehensive coverage with $1,000 deductible.

In states where required, minimum additional coverages were added. We used the same assumptions for all other driver profiles, with the following exceptions:

  • For drivers with minimum coverage, we adjusted the numbers above to reflect only the minimum coverage required by law in the state.

  • We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for drivers with poor credit. In states where credit isn’t taken into account, we only used rates for “good credit.”

  • For drivers with one at-fault crash, we added a single at-fault crash costing $10,000 in property damage.

  • For drivers with a DUI, we added a single drunken-driving violation.

  • For drivers with a ticket, we added a single speeding violation for driving 16 mph over the speed limit.

We used a 2020 Toyota Camry L in all cases and assumed 12,000 annual miles driven. We analyzed rates for drivers of the following ages: 20, 30, 35, 40, 50, 60 and 70.

These are rates generated through Quadrant Information Services. Your own rates will be different.

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