TLTR: This article lists five of the top car insurance companies of 2023 and explains what makes them stand out.
When it comes to shopping for car insurance, the company you choose will directly affect the level of satisfaction you get out of the policy. Selecting the wrong carrier for your car may not only end up costing you a large chunk of your savings, but it can also affect the quality of service you receive.
Furthermore, according to the National Highway Traffic Administration, car accidents occur every 60 seconds in the U.S. That’s about 5.25 million accidents across the nation annually! So, getting the right auto insurance should be a priority for anyone who owns a car.
To make things easier for you, we’ve compiled a list of car insurance companies operating in the US. based on the national market share they occupy, the features they offer, and the discounts they provide.
At the top of our list is State Farm. It is the largest car insurance company in the U.S. and makes up 16.12% of the total market share.
The company employs around 60,000 employees, out of which roughly 19,000 are insurance agents. They sell their insurance products exclusively through their agents and run their own offices.
Car insurance makes up around 63% of State Farm’s business.
One of the top reasons it’s placed so high on our list is because it also offers the cheapest car insurance in most parts of the nation.
State Farm offers significant discounts to people with a clean driving record and credit history. It also provides additional discounts to its clients with no claim history during the renewal period.
The annual car insurance cost for minimum coverage is $539, and the average yearly price for full coverage is $1,457.
Some of the most well-known types of insurance coverage from State Farm are:
It helps pay for repairs or the replacement of your vehicle if it’s damaged during a road accident where it collides with another car or an object.
It helps pay for damage repair and replacement expenses for your vehicle if it results from non-collision-related damages like theft or fire.
It helps provide coverage against any form of bodily injury and property damage where you’re found to be liable. This is also the minimum required coverage in most states.
Rental Car Reimbursement
Helps pay for expenses when your car is in the repair shop, and you’re using a temporary rental vehicle.
Helps with towing, emergency gas delivery, mechanical assistance, and any required labor when your vehicle is stalled on the road. It also helps pay for any medical expenses that you or your passengers suffered in the accident.
Uninsured and Underinsured Motorist
It helps cover expenses caused by a driver who is either uninsured or doesn’t have enough insurance to cover your costs.
Some of the ways State Farm allows you to save on premium are:
Good student discount – Discounts for students with a minimum grade B.
Steer Clear – A course that teaches young adult drivers about the rules of the road and qualifies them for discounts.
Multi-car discount – Lowered rates for insuring more than one vehicle with State Farm.
Drive Safe and Save – A telematics program that tracks good driving habits and offers discounts.
- Exceptional financial strength
- A vast network of agents
- Cheap premium rates
- Not many options for high-risk clients
- Have to buy through their channels
The first runner-up on our list is Geico. It is the second-largest car insurance company in the U.S., with a national market share of 13.76%. The company employs over 40,000 people across nine regional offices, three claims centers, and three service centers.
The carrier offers auto insurance to all 50 states and Washington D.C. It also has regional offices in over ten major cities.
Geico offers a myriad of excellent services to government employees and people with a military background. This is a separate section of the company that is staffed entirely by veterans.
The company can offer up to 10% discounts to qualified drivers with a clean driving history and a spotless credit score.
The company also has an exceptional mobile app that allows its clients to access their ID cards easily, initiate roadside assistance, access vehicle service history, and, among other things, calculate damage estimates.
The annual car insurance cost for minimum coverage is $433, and the average yearly cost for full coverage is $1,405.
Geico also offers a wide range of discounts for new vehicles, cost reduction on bundled policies, rebate for good students, military and service member discounts, as well as emergency deployment and federal employee discounts. It also offers special rates for members and employees.
- Exceptional digital app and mobile tools
- A wide variety of discounts
- Unreliable customer service
The second runner-up on our list, Progressive has a national market share of 12.24%.
This publicly traded company employs over 35,000 people and has more than 400 offices throughout the nation.
Progressive’s most unique characteristics are its online and digital tools. The company allows its visitors to acquire quotes from multiple carriers through their website. This can save them a lot of time and money while shopping for car insurance.
For example, its “Name Your Price” tool allows you to filter coverage options that match the budget you’ve entered.
Progressive also has an exceptional mobile app that allows users to pay their premiums, submit claims, and access ID cards.
The annual car insurance cost for minimum coverage is $582, and the average yearly cost for full coverage is $1,509.
Progressive offers comprehensive and collision coverage, bodily and property damage liability, uninsured and underinsured motorist bodily injury, along with medical payments.
The company also offers additional coverages like custom parts and equipment value, rideshare, rental car reimbursement, and roadside assistance.
- Exceptional digital tools
- Insurance options for a wide variety of vehicle types
- Unreliable customer service
- Marginal claims satisfaction score
Just shy of third place is Allstate, with a national market share of 9.32%.
The company has two unique programs, namely Drivewise and Milewise. By signing up, you can earn points by driving safely. For example, ten trips with no hard breaks and rapid accelerations will allow you to receive 200 points. These points can give you access to gift cards, magazines, local offers, and free subscriptions to magazines.
Like State Farm, Allstate sells their insurance products and services exclusively through their insurance agents.
The company also boasts a high customer satisfaction rating and has a strong financial strength score.
The annual car insurance cost for minimum coverage is $696, and the average yearly cost for full coverage is $1,921.
Besides the basic coverage types like collision, comprehensive, and liability coverage, they also provide a wide range of add-on coverage such as accident forgiveness, roadside assistance, sound system coverage, rideshare coverage, and rental car reimbursement.
Allstate also offers significant discounts to people who pay upfront, have a new car, opt for multi-policy insurance, and install anti-lock brakes and anti-theft devices.
- Unique and efficient points-based reward programs
- Above-average customer satisfaction scores
- Above-average rates
- Unreliable customer service
If you have a military background or belong to the military community, USAA is the best car insurance company you can find in the U.S. Founded in 1922 when 25 Army officers decided to insure each other’s vehicles, the company today serves millions of members associated with the U.S. military. This includes service members, their families, cadets, or midshipmen.
With a national market share of 6.01%, USAA offers the cheapest car insurance for veterans and military service members.
It also holds the highest customer satisfaction rating among its dedicated client base. Besides the exceptional customer service, it is also praised for its quick and efficient claims processing.
USAA offers all the standard car insurance policies to its eligible customers at highly competitive rates.
The annual car insurance cost for minimum coverage is $384, and the average annual cost for full coverage is $1,225.
The company also offer various discounts such as:
Defensive Driving Course Discounts – A certified defense driving course that may help you qualify for discounts.
Safe Driver – A driving program that helps you get a discount if you have a good driving record for a minimum of five years.
Driver Training – A driving program for people under the age of 21 who’ve completed a basic driver training course.
Vehicle storage – A policy that can help you save up to 60% off your premium if you’ve stored your vehicle while on active duty.
Loyalty Discounts – Discounts for members who have stuck with USAA for a certain length of time.
Other discounts the company offers are multi-policy discounts, good student discounts, and accident-free discounts.
- Exceptional customer service score
- Competitive discounts
- Services are only available for members of the military and immediate family members.
- Fewer optional coverages compared to other carriers.
Picking a car insurance company is a decision that shouldn’t be taken lightly. If you want to ensure that you’ll be well taken care of if you get into an accident, spending some time researching your carrier options is an absolute must.
A good car insurance company can not only provide you with prompt and efficient claims processing, but it can also help you lower your rates by offering you discounts on their policies. Suppose you currently serve or have retired from the military, or are an immediate family member of someone who serves in the military. In that case, USAA will provide you with the best car insurance options at the most affordable rates.
If you’re looking for the best discounts with top-notch customer service, Allstate might meet all your needs. Similarly, suppose you’re looking to compare coverage from different companies or get only the coverage that meets your budget. In that case, Progressive offers a wide variety of digital tools to help you do so.
But if you still feel like finding the right car insurance is too much of a hassle, contact a local insurance agent to help you find the structure you’re looking for. As experts in the field, they can assess your situation and help you find car insurance that meets both your needs and budget.
Frequently Asked Questions
Which company offers the cheapest car insurance for young drivers?
Since young drivers don’t have much experience with operating vehicles, they are seen as high-risk by insurance companies. This means that they will generally need to pay more in premiums than adult drivers.
However, many car insurance companies offer various discounts such as good student discounts and driver training discounts to help young drivers decrease their rates.
Consult with your insurance provider or get your insurance agent to find out which companies offer such options.
What coverage do I need?
Every driver is different and has a unique set of circumstances. So, the type and amount of auto insurance coverage depend upon various factors such as your budget, the age of the vehicle you drive, your location, and age.
If you’re confused about what you need, you might want to consult with an insurance agent.
What Are the Best Car Insurance Companies for New Drivers?
January 26th, 2023 · 7 mins read
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