Ratings Methodology for Auto Insurance

Our comprehensive rating system evaluates car insurance companies in 10+ categories to help you find the right coverage for you.

131 Insurers Reviewed

11 Categories Assessed

1,400+ Data Points Analyzed

Methodology, broken down by category

We collect and measure data about 131 auto insurers, and that data spans 11 different categories. Those categories roll up to four broad areas of focus that we weigh like this:

5.0

Overall score

Financial strength ratings, which indicate an insurer’s ability to pay future claims, are based on assessments from independent agencies such as AM Best, Moody’s and Fitch. Data is collected on a regular basis and reviewed by our editorial team for consistency and accuracy. Final star ratings are presented on a scale of one to five stars, where a one-star score represents "poor" and a five-star score represents "excellent."

Consumer complaint (30%)

Consumer complaint ratings are based on complaints to state regulators relative to a company’s size. NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2020-2022. 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.

Ease of use (20%)

Ease of use ratings evaluate how easy it is to interact with an insurance company and its technical offerings, including getting quotes, filing and tracking claims, learning about coverage options, payment options and mobile app ratings. Data is collected on a regular basis and reviewed by our editorial team for consistency and accuracy. Final star ratings are presented on a scale of one to five stars, where a one-star score represents "poor" and a five-star score represents "excellent."

Affordability (20%)

Affordability ratings are based on how many potential discounts an insurance company offers to its policyholders.

Data collection and review process

Our 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. Using our editorial discretion, we also consider customer satisfaction surveys. NerdWallet does not receive compensation for any reviews.

The best auto insurers excel at all of our rated 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

We examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2022-2024. To compare insurers to each another, the NAIC calculates a complaint index 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, we calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. We conduct our data analysis and reach conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

Data accuracy

Our editorial team collects and reviews data for consistency and accuracy on a regular basis. We update reviews throughout the year as necessary.

The review team

The writers and editors behind our auto insurance reviews are specialists who have had their work appear in The Associated Press, The Washington Post, The New York Times, NPR’s Marketplace and The Tennessean. Each writer and editor follows NerdWallet’s strict guidelines for editorial integrity.