Key takeaways
Travelers is our pick for the best car insurance company overall for July 2025. Its average rates come in below the national average, and there are lots of coverage options and discounts on offer.
Auto-Owners, American Family and State Farm are also some of the best car insurers.
USAA is the cheapest of our 5-star insurers, with an average monthly rate of $139 for full coverage insurance. It’s significantly less expensive than the national average of $214.
NerdWallet’s editorial team collected data on more than 50 auto insurers and scored them for affordability, ease of use, financial strength and complaints. Read more about how we picked the best companies.
Below are the best car insurance companies, according to our analysis.
Insurer | NerdWallet star rating |
|---|---|
USAA* | |
*USAA is available only to members of the military, veterans and their families. | |
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Best car insurance companies for July 2025
These companies all scored 5 stars in our analysis. The average rates are for a 35-year-old driver with a clean driving history, good credit and full coverage car insurance. A full coverage policy includes liability, comprehensive and collision insurance.
Travelers
- Received fewer customer complaints than expected for auto insurance.
- Lots of coverage options for auto insurance.
- One of the largest insurance providers in the nation.
- Rideshare insurance is not available in all states.
With few customer complaints and a great set of discounts and coverage options to choose from, Travelers is an all-around good choice for drivers seeking customizability from a financially strong insurer.
Why it’s one of the best: Travelers earned the best overall score out of the insurers we analyzed. With few customer complaints and lots of discounts and coverage options to choose from, Travelers is an all-around solid choice for drivers.
Some of Travelers’ options include gap insurance, rideshare insurance and new car replacement coverage, which can help if your new car is totaled. You may also be eligible for one of the insurer’s two forgiveness plans, which will keep your rates from going up after a crash or ticket.
Average rates: Travelers car insurance costs an average of $1,794 a year, or $149 a month. That’s less than the national average of $2,571 a year, or $214 a month.
» Read more: Travelers auto insurance review
Auto-Owners
- Offers a wide variety of products with the opportunity to bundle.
- Fewer complaints than expected for auto insurance.
- Only available in 26 states.
- Online quotes aren’t available.
People who need several insurance policies may benefit from the convenience and discounts of bundling them with Auto-Owners, which has many coverage options and superior financial strength.
Why it’s one of the best: Auto-Owners is an excellent choice for people who want to bundle their home and auto insurance. Auto-Owners home insurance also received 5 stars in our analysis, landing it on our list of the best home insurance companies.
Customers who bundle home and auto insurance with Auto-Owners can take advantage of a common loss deductible, which means that if you go through a covered event that damages both your house and your car, you won’t have to pay the full deductibles for both policies.
Average rates: Auto-Owners car insurance costs an average of $2,173 a year, or $181 a month. That’s less than the national average of $2,571 a year, or $214 a month.
» Read more: Auto-Owners auto insurance review
American Family
- Fewer customer complaints than expected for a company its size for auto and life insurance.
- Many coverage types offered.
- Wide range of discounts.
- Not available in all states.
American Family offers a long list of insurance discounts, and it receives fewer consumer complaints than expected for a company of its size.
Why it’s one of the best: American Family gets high marks for customer satisfaction. It received the lowest rate of customer complaints to state regulators out of any top company on our list. The insurer also ranked well for customer satisfaction in J.D. Power's 2024 U.S. Insurance Shopping Study .
American Family offers more discounts than many insurers, which may help offset its rates. Discounts include common ones like bundling and meeting the company’s criteria for being a “good driver,” as well as less common ones, like completing volunteer work for a nonprofit if you’re under 25 years old.
Average rates: Full coverage car insurance from American Family costs an average of $2,583 a year, or $215 a month. That’s slightly less than the national average of $2,571 a year, or $214 a month.
» Read more: American Family auto insurance review
State Farm
- Numerous discounts offered, including two programs — one for safe driving and the other for young drivers.
- Generous rental car and travel expenses coverage.
- Above average customer satisfaction rating for buying auto insurance among large insurers, according to J.D. Power.
- Doesn't offer gap insurance.
State Farm offers numerous discounts and extras including travel expense coverage, making it a good choice for most drivers.
Why it’s one of the best: State Farm offers a wide range of options, including rental car and travel expenses coverage that’s superior to what’s offered by competitors. It also stands out when it comes to its user-friendly website and highly-rated mobile app.
State Farm is a solid choice for drivers who prefer a human touch, as its policies are sold exclusively through its agents. The insurer also gets strong marks when it comes to consumer satisfaction. It gets fewer complaints than expected for a company of its size, and it ranked near the top in customer satisfaction in J.D. Power's 2024 U.S. Insurance Shopping Study.
Average rates: State Farm car insurance costs an average of $2,440 a year, or $203 a month. That’s slightly less than the national average of $2,571 a year, or $214 a month.
» Read more: State Farm auto insurance review
- High customer satisfaction ratings.
- One-stop shop for insurance as well as banking and investing products.
- Policies available in all states and Washington, D.C.
- Available to active military, veterans and their families only.
USAA offers competitive car insurance rates, high customer satisfaction and military-specific perks, such as a discount for storing your car on base.
Why it’s one of the best: While there are a few top auto insurance companies for veterans and military families, we found that USAA is often the best pick for active-duty military members, veterans and their families.
USAA offers competitive rates and military-specific perks, such as a discount for storing your car on a military base. Policyholders can pay extra for options like accident forgiveness, rideshare insurance and car replacement assistance.
USAA gets fewer complaints than expected for a company of its size. It also received high marks in J.D. Power’s most recent customer satisfaction study, suggesting USAA’s customers tend to be happy with the insurer.
Average rates: A full coverage policy from USAA costs an average of $1,670 a year, or $139 a month. It offers the cheapest average rates of all of our 5-star insurers, and is significantly less expensive than the national average of $2,571 a year, or $214 a month.
» Read more: USAA auto insurance review
See what you could save on car insurance
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More top auto insurance companies
If you’re looking for more options, check out these other car insurance companies that earned a NerdWallet star rating of 4.5. Each of these companies could be a solid choice, depending on your location and specific needs.
Company | Consider if... |
|---|---|
You want to be rewarded for safe driving. | |
You want the chance to earn dividends on your policy. | |
You like lots of choices for customizing your coverage. | |
You’re looking for an affordable option. | |
You want a simple way to buy extra coverage. | |
You want a top-rated insurer in the Mid-Atlantic region. | |
You want accident forgiveness included. | |
You like a range of discounts and coverage options. |
- Read more auto reviews from NerdWallet
More Nerdy Perspective
Policies aren’t always the same, so check the details to decide which company is best for you. When I recently compared quotes, one company offered a rate lock and a lower deductible if I stayed claims-free. The other had a discount for safe driving and the option to choose new car replacement coverage. Which is best? It depends on your priorities.
Best car insurance companies by state
Insurance offerings vary widely by location, and the best companies nationwide might not be the best in your state. In fact, regional insurers may offer better customer service or more affordable rates than larger companies. Some may even offer state-specific perks and discounts.
NerdWallet analyzed the auto insurance offerings available in different states to put together the best car insurance companies in the following states:
Best car insurance companies by state
Best car insurance companies by state
How to find the best car insurance
Here are some bonus tips on how to get the best car insurance:
Shop around. With rates on the rise, price can be a key consideration. Prices are based on many factors like your age, location, vehicle and driving history. Because every insurance company weighs these factors differently, it’s best to shop around for car insurance quotes to find the cheapest option.
Check for complaints. Most people don’t deal with their insurance company until they need to file a car insurance claim. To see how an insurer compares to others, you can use the National Association of Insurance Commissioners’ database. This resource shows how many complaints have been filed against an insurer in each state.
Shop strategically. If you’ve had a speeding ticket, DUI or other violation, be sure to shop three to five years after the incident, when surcharges can drop significantly.
Check your coverage. Ask your agent or a customer service representative if you’re getting the coverage you need so that you’re not under- or overinsured. Use the tool below to learn about the different auto insurance coverage types.
» MORE: Compare car insurance
The best car insurance companies, according to Reddit users
Reddit is an online forum where users share their thoughts in “threads” on various topics. The popular site includes plenty of discussion on financial subjects like auto insurance, so we sifted through Reddit forums to get a pulse check on how users feel about insurers. People post anonymously, so we cannot confirm their individual experiences or circumstances.
The general consensus among Redditors is that you’ll find the best car insurance by comparing quotes from different insurers and evaluating the amount of coverage you need.
Many Redditors shared their picks for the best car insurance companies as well.
USAA: Some Reddit users called out USAA as offering the best auto insurance. One cited the company's “top-notch” claims service and coverage for original equipment manufacturer, or OEM, parts for newer model repairs. It’s important to note that USAA car insurance is only available to active military, veterans and their families. (Several companies offer OEM parts in claim repairs, but it is wise to ask your agent or check the quote details before you buy.)
GEICO: Another Reddit user said GEICO offers quick response times when calling their representatives or filing a claim. Like so many things related to auto insurance, this and other customer service practices can vary depending on your state.
Progressive: According to another Redditor, Progressive stands out because the company was easy to work with and offered him the cheapest rate and fair payouts when he filed claims for two accidents where he was not at fault. His experience is a good reminder to shop around after filing claims and receiving payouts, when rates are most likely to increase.
We nerd out on car insurance
NerdWallet’s editorial team takes pride in providing highly-researched resources that empower our readers to make informed decisions about their car insurance.
Here’s why you can trust NerdWallet:
We do our homework. All of our auto insurance content is diligently fact-checked before publication. Additionally, our editorial team regularly evaluates and reviews many of the auto insurance companies we write about. This means the star ratings you see on our company reviews remain up-to-date.
We analyze the data. NerdWallet updates our published car insurance rate averages once a month. To do that, we rigorously analyze more than 500 million auto insurance rates from across the country provided by Quadrant Information Services.
We are unbiased. NerdWallet’s content is solely editorial, and is never influenced by our business partners and advertisers. Learn more about how we write in our editorial guidelines.
Article sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- 1.J.D. Power. 2024 U.S. Insurance Shopping Study. Accessed .
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.
Here’s how we evaluated each car insurance company and the weights we placed on each category:
Financial strength (30%).
Consumer complaints (30%).
Ease of use (20%).
Affordability (20%).
The best auto insurers excel at all of these categories. They provide the information people need to make a purchase without any surprises along the way. They offer insurance at a fair price and provide more than one way to buy and manage a policy. They're financially strong and able to keep their customers happy throughout the relationship.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2021-2023. 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.
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” credit rates are based on credit score approximations and do not account for proprietary scoring criteria used by insurance providers.
These are median 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.
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 2025 Toyota Camry LE in all cases and assumed 12,000 annual miles driven. We analyzed rates for 35-year-old drivers.
These are rates generated through Quadrant Information Services. Your own rates will be different.
