The 5 Best Car Insurance Companies of July 2025

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.

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.

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 $1,709 a year, or $142 a month. That’s less than the national average of $2,290 a year, or $191 a month.

» Read more: Travelers auto insurance review

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 $1,949 a year, or $162 a month. That’s less than the national average of $2,290 a year, or $191 a month.

» Read more: Auto-Owners auto insurance review

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 [1] .

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 $2,139 a year, or $178 a month. That’s slightly less than the national average of $2,290 a year, or $191 a month.

» Read more: American Family auto insurance review

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 $2,169 a year, or $181 a month. That’s slightly less than the national average of $2,290 a year, or $191 a month.

» Read more: State Farm auto insurance review

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 $1,464 a year, or $122 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 $2,290 a year, or $191 a month.

» Read more: USAA auto insurance review

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.

• Read more auto reviews from NerdWallet

  • AAA

  • Acceptance

  • Allstate

  • American Family

  • American National

  • Amica

  • Auto-Owners

  • Bristol West

  • Chubb

  • Clearcover

  • Connect

  • Country Financial

  • Dairyland

  • Direct Auto Insurance

  • Elephant

  • Encompass

  • Erie

  • Farm Bureau

  • Farmers

  • Fred Loya

  • Gainsco

  • GEICO

  • The General

  • Georgia Farm Bureau

  • GoAuto

  • Good2Go

  • The Hanover

  • Infinity

  • Kemper

  • Lemonade

  • Liberty Mutual

  • Mapfre

  • Mercury

  • Nationwide

  • National General

  • NJM

  • Progressive

  • Root

  • Safeco

  • Safety Insurance

  • Shelter

  • State Farm

  • Texas Farm Bureau

  • Toggle

  • Travelers

  • USAA

  • Wawanesa

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:

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.