There are significant differences between car insurance companies. In order to determine the best ones, we surveyed over 10,000 drivers to gather their feedback on important factors such as customer service, claims handling, and customer satisfaction. Based on this information, we have rated the top car insurance companies of 2023. This list can assist you in choosing the best insurer for your needs.
See, Who Is the Best Car Insurance Company?
According to our 2022 data, USAA is the
top-rated car insurance company. However, it's worth noting that USAA's
insurance products are only available to military personnel and their families.
If that doesn't apply to you, the second-best option is State Farm. We arrived
at these conclusions by analyzing rates and gathering feedback from
policyholders, with a focus on customer service, claims handling, customer
loyalty, and policy renewal. Additionally, we asked survey participants how
likely they would be to recommend their current insurer to someone else. If you
are in the market for car insurance, this list can help you compare different
insurers based on factors that are important to you. Although USAA and State
Farm are leading the pack, it's a good idea to consider multiple insurers and
their rates before making a decision.
Top Rated Car Insurance Companies in USA
1. USAA
According to a recent
survey, USAA has the highest level of customer satisfaction among insurance
companies. Policyholders often renew their policies and recommend USAA to
others. The company also has very competitive rates, lower than the national
average by a significant margin. It's worth noting that USAA's insurance
products, including auto, home, and renters’ insurance, are only offered to
military personnel and their families. This means that not all drivers will be
eligible for coverage through USAA.
2. State Farm
State Farm is the
second-best car insurance company according to our rating, and it performs
above average in all subcategories including Claims Handling and Customer
Loyalty. It also ranked highly in our list of the most affordable car insurance
companies for 2023. Specifically, its premiums for drivers with
less-than-perfect driving records were the lowest among all the companies in
our rating, except for USAA. If you are unable to obtain a policy from USAA,
State Farm may be a good alternative to consider.
3. Farmers
Farmers
is ranked third in our overall rating and performs well in several
subcategories. It holds the top spot for Claims Handling and ranks second in
Customer Service and Customer Loyalty. However, it scored lower in the category
of Most Likely to be Renewed, receiving a score of 4.0 compared to the average
of 4.2. Additionally, Farmers has higher than average annual rates compared to
other companies in our ratings.
4. Nationwide
Nationwide
has improved two positions in our rankings since last year, tying for third
place. It received the second highest scores in Customer Loyalty and Most
Likely to be Recommended, and above average scores in all other subcategories.
Its rates are also below average for certain drivers, particularly those with a
clean driving history or poor credit.
5. Geico
Geico shares the third spot in our ranking
of the Best Car Insurance Companies of 2023, performing averagely in categories
such as Claims Handling, Customer Service, and Customer Loyalty. It also holds
the second place on our list of the Cheapest Car Insurance Companies of 2023,
offering reasonable average rates for teenage and senior drivers, as well as
those with bad credit.
6. Allstate
Allstate
has improved its position by three spots and now shares the sixth place in this
year's ranking of the Best Car Insurance Companies. It is also ranked fourth in
the subcategory of Most Likely to Be Recommended, although it received slightly
below average scores in most other subcategories. Its rates are among the
highest in our analysis, but it may offer competitive rates for certain drivers,
such as those with a speeding violation on their driving record
7. Travelers
Travelers
has moved up two spots this year and now shares the sixth position. Its
customer service score is lower than seven other insurers in our analysis, but
it ranks first in Claims Handling and third in the category of Most Likely to
Be Renewed. Travelers also received an above average score for policy renewal
and typically offers premiums that are lower than the national average.
8. Progressive
Progressive
is ranked eighth in our analysis. Customers are generally satisfied with the
ease of opening a policy, but Progressive ranks last in Customer Loyalty and
received below average scores in all other subcategories. Progressive customers
also report being less likely to renew their policy or recommend the insurer to
others. However, those with a DUI may be able to save with Progressive, as its
rates for those drivers are among the lowest in our study.
9. AAA
AAA
is a new addition to our Best Car Insurance Companies ranking, tying with
Progressive for nineth place. Its scores are below average in all categories we
analyzed. However, it ranked sixth in Most Likely to be Renewed, outperforming
Allstate, Farmers, Progressive, and American Family. AAA also has the highest
average premiums in our study, but drivers should get a quote to see if their
individual rate is more competitive.
10. American Family
American
Family has fallen four spots this year and is now ranked tenth in our analysis.
Its scores are the lowest in most subcategories, although it scored slightly
higher than Progressive in Customer Loyalty. Despite its low scores, American
Family does offer competitive rates for certain drivers, including teenagers,
those with poor credit, and those with an accident or DUI on their record.
Which is the best car insurance company?
According to our research, USAA is the best
overall car insurance company, as indicated by data and customer surveys.
However, USAA insurance is only available to active and veteran military
members and their families. State Farm ranks second in our survey, making it
the best car insurance company for those who are not eligible for USAA.
It is always a good idea to consider and
compare multiple insurers when searching for car insurance. Doing so can help
you find coverage that meets your specific needs. USAA performed well in all
five of our sub rankings based on customer feedback, but not everyone will meet
the requirements for USAA membership. For that reason, we have also identified
the runner-up in each category so that all consumers can find the best option
for their needs.
When searching for car insurance, it is
important to also consider rates. Our study includes average rates data, but
your personal rate will depend on factors such as your age, location, driving
record, credit score, and the type and amount of coverage you prefer. Obtaining
and comparing quotes can help you accurately estimate costs and find the best
deal.
How can I find the best price on car insurance?
The International Insurance Institute (III)
advises consumers to obtain quotes from at least three insurance companies in
order to find the best rate for car insurance. When comparing quotes, make sure
to consider the same level and type of coverage.
To learn more about finding the best car
insurance, including information about different coverage options and how to
save on premiums, visit our comprehensive guide, "Everything You Need to
Know About Car Insurance."
Methodology: This is how we identified the top car insurance companies and gathered the rates for comparison:
To identify the top car insurance companies
and determine the rates for this study, we surveyed 10,463 consumers who had
either opened a policy or filed a car insurance claim in the past five years.
The survey included questions about their satisfaction with the ease of filing
a claim, customer service, communication regarding claim status, claim
resolution, and overall value. We also asked if they would recommend the
company and if they planned to renew their policy. These responses were used to
create our ranking of the Best Car Insurance Companies.
To gather comparative insurance rates for
the study, U.S. News worked with Quadrant Information Services to analyze a
report of insurance rates from most of the major national car insurance
companies in all 50 states (not every company operates in every state).
Quadrant obtained publicly available rate data that car insurers file with
state regulators. Our study rates are based on profiles for male and female
drivers aged 25, 35, and 60, with vehicles including the 2017 and 2021 Honda
Civic, 2017 and 2021 Toyota RAV4, and 2017 and 2021 Ford F-150. The annual
mileage ranged from 6,000 to 12,000 miles. Three coverage levels were used, as
well as credit tiers of good, fair, and poor. Clean driving records, as well as
records with one accident, one speeding violation, or one DUI, were also taken
into account.
The rates shown in the study are the mean
rates for male and female drivers aged 25, 35, and 60, who drive 12,000 miles
per year, have medium coverage, good credit, and a clean driving record. These
rates are for comparative purposes only and should not be considered the
"average" rates available from individual insurers. Car insurance
rates are based on individual factors, so your rates may differ from the rates
shown here.