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Erie Insurance was rated the best auto insurance company for customer satisfaction, according to the 2024 U.S. Insurance Shopping Study by J.D. Power, with AAA Southern California and American Family Insurance close behind.
While there are several things to consider when shopping around for car insurance—and rates can vary based on several different factors—here are some of the best car insurance companies to consider.
What Is the Best Car Insurance Company?
| Best Car Insurance Companies for Customer Satisfaction | |
|---|---|
| Insurer | Rating (out of 1,000 points) |
| Erie Insurance | 730 |
| AAA Southern California | 705 |
| American Family Insurance | 702 |
| State Farm | 695 |
| The Hartford | 685 |
| Travelers | 680 |
| AAA | 679 |
| Auto-Owners Insurance | 679 |
| Progressive | 678 |
| CSAA Insurance (AAA) | 673 |
Source: J.D. Power 2024 U.S. Insurance Shopping Study
1. Erie Insurance
Erie Insurance is based in Pennsylvania and offers insurance coverage in 12 states and Washington, D.C. In addition to the standard auto coverages, the carrier offers pet injury coverage, personal item coverage (usually covered by homeowners or renters insurance), auto glass repair and locksmith services.
Erie also offers coverage for motorcycles, boats, recreational vehicles (RVs), all-terrain vehicles (ATVs) and collector and classic cars.
2. AAA Southern California
AAA Southern California provides auto coverage in a handful of counties in the region. The insurer offers standard coverage options, including liability, collision, comprehensive, medical payments and uninsured motorist coverage. It also offers boat insurance.
3. American Family Insurance
Also known as AmFam, American Family Insurance is based in Wisconsin and offers auto coverage in 19 states. The carrier offers standard coverages, plus emergency roadside assistance, rental reimbursement, accident forgiveness, accidental death and dismemberment protection and gap coverage.
Other vehicles the insurer covers include motorcycles, RVs and campers, boats, ATVs and snowmobiles.
4. State Farm
Based in Illinois, State Farm offers auto coverage in 48 states and Washington, D.C.—only residents of Massachusetts and Rhode Island are ineligible for a new policy.
In addition to the standard coverages, State Farm offers emergency road coverage, car rental reimbursement and travel expenses coverage when you're more than 50 miles away from home. It also provides rideshare driver coverage for independent contractors working for rideshare services like Uber and Lyft.
The insurance carrier also covers motorcycles, boats, ATVs and off-road vehicles, RVs and camping trailers.
5. The Hartford
In partnership with AARP, The Hartford offers auto insurance policies in all 50 states. Beyond the standard types of protection, your coverage options can vary depending on where you live.
That said, potential add-ons include auto glass coverage, car towing coverage, gap insurance, rental car reimbursement and rental car insurance. In addition to common discounts, you can get up to 10% off your rate as an AARP member.
The Hartford also offers coverage for classic cars, ATVs, RVs, boats, golf carts and snowmobiles.
How to Find the Best Car Insurance for You
While these insurers get top marks for customer satisfaction, the right auto insurance provider for you will depend on several factors, such as where you live, your driving history and your vehicle.
With that in mind, here are some steps you can take to ensure you get the best coverage.
1. Determine Which Coverage Types You Need
You'll typically need to have a minimum amount of liability coverage to meet state requirements, and in some cases, you also need uninsured motorist coverage and personal injury protection.
If you financed your car, your lender may also require both collision and comprehensive coverage. Beyond that, you may consider optional coverages depending on your budget.
2. Set a Budget
Evaluate your budget to get an idea of how much you can afford to pay each month. As you evaluate your options, this can help you determine how much coverage you can afford.
As you shop around, you can adjust coverage types, amounts and deductibles to find the best balance between your budget and your peace of mind.
3. Shop Around
Take some time to get online quotes from at least three to five insurance companies to evaluate your options. As you go through the process, make sure you select the coverages and coverage levels that fit your budget so you can make an accurate comparison. Consider using a car insurance comparison service that compares rates on your behalf to help you find the best deal.
Other factors to consider as you shop around include available discounts, financial strength ratings, claims satisfaction and other features that are important to you. It can also help to pick an insurer that offers other types of coverage, potentially helping you qualify for bundling discounts.
Learn more >> How to Choose the Best Car Insurance Company
How Does Car Insurance Work?
Car insurance provides financial protection for certain losses that are beyond your control. Both the form and extent of the protection you receive ultimately depend on the types of coverage you choose for your policy.
Types of Car Insurance
There are several different types of car insurance coverage you can include in your auto insurance policy. Here's a quick summary of the standard options:
- Liability insurance: Provides protection in the event that you cause an accident resulting in another party sustaining personal injuries or property damage. It's required in nearly all states, though some offer waiver options.
- Collision insurance: Covers the cost of repairing or replacing your vehicle if you collide with another vehicle or a stationary object, such as a pole. Collision coverage usually accompanies comprehensive insurance, both of which may be required by a lender if a vehicle is financed.
- Comprehensive insurance: Provides coverage for the cost of repairing or replacing your vehicle damaged in a non-collision event. Examples include theft, vandalism, glass and windshield damage, weather and other acts of nature, accidents with animals and fire damage.
- Uninsured motorist coverage: Offers protection in the event that you're hit by a driver who has no auto insurance coverage. It typically also includes underinsured motorist coverage, which kicks in if the other driver doesn't have sufficient coverage to pay for your injuries and vehicle damage. It's required in certain states.
- Medical payments coverage: Also called MedPay, this coverage helps pay for medical and funeral expenses, regardless of who's at fault for the collision.
- Personal injury protection: Personal injury protection, PIP for short, helps pay for medical and funeral expenses, as well as lost wages and eligible household services, regardless of who's at fault. PIP is required in certain states.
Depending on your insurance company, you may also have your pick of other optional coverages, such as rental car reimbursement, gap insurance, roadside assistance, glass and windshield coverage (waived comprehensive deductibles), accident forgiveness and many others.
How Much Does Car Insurance Cost?
The cost of an auto insurance policy can depend on a variety of factors, including your:
- Age
- Gender
- Marital status
- Location
- Driving record
- Vehicle's make and model
- Vehicle usage
- Claims and insurance history
- Coverage types and amounts
- Deductibles
What's more, auto insurance companies in most states may also consider your credit-based insurance score to help calculate your rate. This isn't the same as the credit score you'll see when you check your credit, but it is based on the information in your credit report—so it's important to build and maintain a good credit score to help save on rates.
Frequently Asked Questions
To determine the right amount of coverage, make sure you understand your state's requirements, as well as your lender's requirements if you don't own your car outright. Beyond that, it's important to weigh the cost of coverage and the protection it provides. Consider speaking with an insurance agent who can help you find the right balance.
At the very minimum, you should include the coverages required by your state and lender, if applicable. Then, review other types of coverage and consider what you'll need to gain peace of mind.
Yes, many insurance companies offer discounts to new customers. It's also possible that the factors that influence your rates can change over time. As a result, it's a good idea to shop around and compare auto insurance rates at least once a year to ensure you're getting the best deal.
Auto insurance providers offer a wide range of discounts that can help you save money on your policy. Some of the discounts that can offer the biggest savings include:
- Multi-driver discount
- Multi-policy discount (add homeowners or renters insurance, for instance)
- In-full payment discount
- Automatic payment discount
- Safe driver discount
- Student discount
- Senior discount
- Affiliation discount
It can take time to evaluate all the discounts each insurer offers on your own, so don't be afraid to call a carrier to learn more about which ones apply to you.
Save Time Comparing Auto Insurance With Experian
While shopping around for car insurance is one of the best ways to save money, the process can be time-consuming if you request quotes from each insurer individually.
To save time, consider comparing car insurance quotes with Experian, which can provide quotes from more than 40 top insurers. You can also get notifications when rates drop in your area and learn more about the factors that are influencing your rates.