Car Insurance

The 5 best car insurance in the United States of 2022

The best auto insurance companies on the market not only offer great coverage and affordable payments but also have a process.

The best car insurance in the United States companies on the market not only offer great coverage and affordable payments, but they also have a simple claims process, easy-to-use technology, and a great customer service experience.

Choosing the best auto insurance provider can be difficult. That’s why we selected the top 5 auto insurance companies in the industry. In this article, we’ll review company reputation, availability, coverage options, discounts, and customer experience, detailing the top five auto insurance providers.

The best car insurance companies in the US market

After thoroughly researching the auto insurance market, 5 companies stood out from the competition as the best auto insurance providers. When classifying them, the availability of the state, the breadth of coverage, prices, and satisfaction scores of different experts were considered.

We also took into account AM Best’s financial strength ratings and complaint volume as reported by the National Association of Insurance Commissioners (NAIC).

America’s Top 5 Insurance Companies for 2022

Our top five picks for the best auto insurance are Geico, USAA, Progressive, State Farm, and Liberty Mutual.

1. Geico USA car insurance

Geico is America’s number one choice for the best auto insurance. The company offers reliable service, a wide selection of coverages, and affordable auto insurance rates.

In addition to standard coverage options, Geico offers helpful add-ons like:

  • Emergency roadside assistance
  • Rent reimbursement
  • Mechanical Breakdown Insurance (MBI)
  • Rideshare insurance

Geico has received an A++ (Superior) rating from credit rating agency AM Best, meaning the company has the financial backing to pay customers’ insurance claims. A larger car insurer like Geico has greater financial stability than a small, local company.

Geico also has a strong reputation for customer service. According to the “SM 2021 US Auto Insurance Study” by JD Power, a consumer data analytics consultancy, Geico outperformed the average in California and the Central and New England regions. The study surveyed customers about their satisfaction with claims, billing, price, policy, and more.

When it comes to cost, Geico’s rates are some of the most affordable. Estimates show that drivers pay around $1,350 per year on average for full coverage auto insurance from Geico. These rate estimates apply to individuals aged 35 and older with good credit and driving histories.

Feature highlights:

  • Is the best
  • Average cost: $$
  • Number of discounts: 16
  • Usage-based insurance: DriveEasy in 26 states

2. USAA USA car insurance

USAA regularly tops JD Power auto insurance studies as one of the best auto insurance providers in terms of customer satisfaction and value. The company is well known for its high customer ratings and affordable coverage options, including accident forgiveness. However, it is not number 1 on the list due to its strict eligibility requirements.

USAA auto insurance is only available to military members, veterans, and their families, greatly restricting who can purchase the coverage. If you are eligible for a USAA insurance policy, it is one of the best options available.

Beyond the standard types of auto insurance, USAA offers the following optional coverages:

  • Roadside assistance
  • Rental Car Reimbursement
  • Accident forgiveness
  • Glass cover
  • Guaranteed asset protection (GAP insurance)
  • Replacement Car Assistance (CRA)
  • Rideshare insurance

USAA received an A++ financial strength rating from AM Best and an A+ from the Better Business Bureau (BBB). The auto insurer accounted for 6.32% of the market share in 2020, according to the NAIC. Although not the largest auto insurer, USAA is still respectably financially strong. In 2020, the company wrote $15.77 billion in private passenger car insurance premiums.

While USAA doesn’t have many physical offices, policyholders are still impressed with the company’s customer service. USAA earned the highest score in the 2021 JD Power Auto Insurance Study in all regions of the United States, although it is not ranked due to its eligibility criteria. The auto insurer also had fewer private passenger insurance complaints than the national average in 2020, according to the NAIC.

USAA is also known for its affordability. The cheapest car insurance is offered on average compared to any other provider. Rate estimates show that good drivers pay about $1,013 per year for full coverage auto insurance with USAA. The company also offers discounts based on driver safety, vehicle safety, multiple policies, and safety features like airbags and more.

Feature highlights:

  • Low rates for military
  • Average cost: $
  • Number of discounts: 12
  • Usage-based insurance: SafePilot TM in 38 states

3. Progressive USA car insurance

If you are under 21, an elderly driver, or have received a DUI/DWI, Progressive may be your best auto insurance option. Progressive tends to be one of the cheapest national providers for high-risk drivers other than USAA. Our rate estimates also show that careful drivers pay around $1,397 per year for full coverage insurance with Progressive, putting it just behind Geico and State Farm in affordability.

In addition to the standard types of auto insurance coverage, Progressive offers:

  • Roadside assistance
  • Rental Car Reimbursement
  • Loan/lease payment
  • Value of custom parts and equipment
  • Rideshare coverage

While Progressive has mixed reviews for customer service (it scored above average in half of the regions in the JD Power Satisfaction Study), it offers solid financial stability. AM Best rated Progressive A+, and the company also wrote more than $33 billion in premiums in 2020, according to the NAIC.

Progressive offers car insurance discounts as well as some tools to help you lower your rates. Using a mobile app that tracks and records your driving habits, Progressive’s Snapshot program rewards safe driving behavior with premium discounts. On average, drivers who use Snapshot save $146 on their policies, according to Progressive. This program is not available in California or North Carolina.

Feature highlights:

  • Low rates for high-risk drivers
  • Average cost: $$
  • Number of discounts: 13
  • Usage-based insurance: (not available in California or North Carolina)

4. State Farm USA car insurance

State Farm is another good option when it comes to finding the best auto insurance in the industry.

In addition to standard coverage types, State Farm offers:

  • Roadside emergency service coverage
  • Car Rental and Travel Expense Coverage
  • Rideshare Driver Coverage

Cost estimates show that good drivers pay about $1,339 a year for full coverage insurance with State Farm. This ranks State Farm among the nation’s most affordable providers.

As the nation’s largest auto insurance company, State Farm is no stranger to claim satisfaction—the company has an A++ rating from AM Best. According to the NAIC, State Farm accounted for 16.19% of the auto insurance market share in 2020. State Farm also had fewer complaints than the industry average in 2020, although customer opinions on BBB are mixed.

State Farm is one of the best auto insurance companies in the country in part because of the safe driving and usage-based discounts it offers to young drivers.

There are two discount programs available through mobile apps:

Drive Safely and Save Money: State Farm tracks and rewards safe driving habits with Drive Safe and Save the mobile app. By reducing driving behaviors such as rapid acceleration, hard braking, and speeding, drivers can get up to 30% off their premiums. This program is not available in California, Massachusetts, or Rhode Island.

Steer Clear – Teens and new drivers can receive training courses, tutoring, driving practices, and a certification from the program to encourage good driving habits. After the successful completion of the program, drivers get a discount on their auto insurance premiums.

Other State Farm car insurance discounts include those for good grades, safe driving, defensive driving, vehicle safety features, and driver course completion. The company does not offer military discounts.

Feature highlights:

  • Most popular provider
  • Average cost: $$
  • Number of discounts: 13
  • Usage-based insurance: Drive Safe & Save TM (not available in CA, MA, and RI)

5. Liberty Mutual

Liberty Mutual can be a good auto insurance option for families with young or teenage drivers. The insurer offers competitive rates and discounts, many of which are specialized for young drivers.

There are several additional coverage options along with the standard insurance types, including:

  • 24-hour roadside assistance
  • Rental Car Reimbursement
  • New car replacement
  • Best car replacement
  • Liberty Mutual Deductible Fund
  • Replacement of original parts
  • Auto loan/lease with asset protection guarantee

Liberty Mutual has an AM Best rating of A for its financial stability and ability to pay insurance claims. However, the insurer’s customer service gets mixed reviews. Some customers report problems with communication, while others positively evaluate the company’s claims process.

Liberty Mutual is often an affordable option for policyholders with teen drivers. However, it may not be the cheapest option for other types of drivers. Auto insurance offers a number of discounts, including savings for homeowners, military personnel, good students, and accident-free drivers.

Feature highlights:

  • Good programs for young drivers
  • The average cost: $$
  • Number of discounts: 17
  • Usage-based insurance: RightTrack in 42 states

Tips for finding the best car insurance rates

Getting the most affordable auto insurance rates can be tricky, especially with the number of information drivers need to know about policies.

1. Get quotes – United States

It is always a good idea to compare car insurance quotes between companies. Depending on your driving profile and other factors, the cost of your car insurance can vary widely. Some insurance providers offer affordable rates for older drivers, while others offer cheap auto insurance for new drivers or teens. You can compare quotes online yourself or work with an independent insurance agent to compare plans.

2. Look for discounts- United States

Companies offer a wide range of auto insurance discounts. For example, some providers offer better discounts for students, while others offer discounts for military and occupational affiliations.

3. Opt for a higher deductible- United States

While it may seem like a burden at first, a higher deductible can significantly lower your overall auto insurance costs.

4. Keep credit under control- United States

Paying your bills in full and keeping your credit balances low will also help boost your credit score.

5. Test the telematic insurance- United States

Telematics insurance programs offer discounts based on your driving habits. If you have short trips and practice good driving habits, you could save money with a safe driving program or pay-per-mile insurance program.

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