Car accidents cost $230.6 billion a year and incur thousands of dollars in just medical bills. Finding the best car insurance can help pay these bills.

After conducting a lot of research, we found USAA, Geico, State Farm, Progressive, Amica Mutual, Erie Insurance, and Liberty Mutual to be some of the best car insurance companies that offer excellent financial safety nets in case of car crashes that result in property damage or injury.

Since car insurance plays a very important financial role, it is crucial that you get the best car insurance with the most suitable coverage and price for your needs. The best car insurance may not necessarily be the cheapest but it will also not be the most expensive. In this guide, we base our car insurance selection by evaluating the coverage and add-ons, average premiums and discounts, claims process, financial strength ratings, and pros and cons.

The article is written after thoroughly evaluating the aforementioned car insurance companies’ products and features, and comparing them to other car insurance companies in the industry to arrive at our top six picks.

So without further ado, let’s get to it.

Best Car Insurance

TABLE OF CONTENTS

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USAA

The company offers excellent coverage at affordable rates for current and retired military service members and their families. USAA is known for its sterling customer service, as well as one of the lowest premiums in the industry.

Coverage and Add-Ons

USAA policies a range of coverage, including:

  • Collision Insurance that pays for your vehicle in case of damage during a car crash
  • Comprehensive insurance that pays for your vehicle in case of theft, vandalism, and damage from natural disasters
  • Bodily injury liability that covers for injury and/or death caused by the accident
  • Property damage liability that covers property damage from at-fault accidents
  • Medical payments and personal injury protection (PIP)
  • Uninsured/underinsured motorist coverage in case the other driver at fault has insufficient or no insurance

In addition, USAA also provides roadside assistance, rental reimbursement in case of damage to a rented car, rideshare coverage if you work for Uber and Lyft, and accident forgiveness coverage that prevents your premium from going up after an at-fault accident if you have been accident-free for five years.

Average Premium and Discount

The average annual premium is $875 per year.

USAA offers 13 different types of discounts ranging from 10% to up to 60%. Some of these discounts may not be available in some states.

Claims Process

USAA offers a lot of convenience to customers by offering them a fully digital claims process. Simply go to the USAA website or open the mobile app to file your claim. If additional information is required, the team will notify you via text or email. You can also easily upload images of the damages and injury to attach to your claim.

Financial Strength Rating

USAA has an excellent reputation in the industry and has an A++ (Superior) rating issued by AM Best credit agency. This is the highest possible rating signifying that the company has a superior ability to pay out its claims.

Pros

  • Very affordable premium
  • Rideshare and rental reimbursement insurance available
  • Multiple discounts
  • Smooth digital experience and claim process

Cons

  • Available only to USAA members
  • Cannot access agents directly
  • Some add-ons and discounts may not be available in all states

GEICO

GEICO is one of the best choices in the car insurance industry as it offers amazing discounts, exceptional customer service, and affordable premiums, but one of its very best offerings is the highly efficient and user-friendly website and mobile app that helps it stand apart from others in the industry.

Coverage and Add-ons

GEICO offers extensive coverage similar to what USAA is famous for.

The company offers:

  • Collision and comprehensive insurance with flexible deductibles and premiums
  • Personal injury protection
  • Liability coverage, including bodily injury and property damage liability
  • Medical payment coverage and personal injury protection that cover medical bills, lost income, and other accident-related expenses
  • Underinsured motorist coverage

As add-ons, GEICO also offers emergency service for as little as $14 per year, rental reimbursement, and mechanical breakdown insurance that covers repairs on mechanical parts of the car.

Average Premium and Discounts

GEICO charges an annual premium of $1,100. It offers 16 impressive discounts for its policyholders that can range from 3% to 25%.

Claims Process

GEICO offers multiple ways to make claims, including through the URL www.geico.com/claims, via its mobile app and by calling its claims center at 800-841-3000.

You will be asked to provide basic information on where, when and how the incident occurred as well as provide the police report number and the contact information of the other involved party, if applicable.

If your car is damaged, GEICO will assess the damage and will allow you to choose from its Auto Repair Xpress facilities to repair your car, if you don’t want to find your own repair shop. Once the investigation is complete, GEICO will send you the check for repairs.

Financial Strength Rating

Like USAA, GEICO also has a solid A++ rating from AM Best, signifying its superb customer service and financial stability.

Pros

  • GEICO’s mobile app was ranked first in the Keynova Q2 2021 Mobile Insurance Scorecard
  • Offers an extensive range of coverage and add-ons
  • Provides some of the most amazing discounts in the market

Cons

  • Does not offer GAP insurance
  • Does not offer many local agents since it is more focused on online insurance purchases
  • Some add-ons, like accidental forgiveness, are not available in some states

State Farm

Since its inception, State Farm has expanded into a renowned name for a range of insurance products, including car insurance. The company sets itself apart by offering an extensive network of insurance agents that can answer your concerns at any time.

Coverage and Add-ons

State Farm offers a comprehensive range of coverage options, including:

  • Collision and comprehensive insurance
  • Bodily injury and property damage liability
  • Medical payment and personal injury protection coverage
  • Uninsured and underinsured motor vehicle coverage
  • Car rental and travel expenses to pay for a rented car and emergency lodgings after the accident
  • Medical payments

State Farm also offers add-on coverage options including an emergency road service in case of breakdowns and rideshare services for Lyft and Uber.

Average Premium and Discounts

The average premium for State Farm coverage is $1,168 annually. The company offers 11 different types of discounts, including a multi-policy bundle discount that can save up to 17% and multi-vehicle and a good driver discount of up to 20%.

Claims Process

State Farm is a bit behind when it comes to digital innovation but you can still file claims via its mobile app or company website as well as by calling your State Farm agent. You can also report a claim by calling 800-732-5246 after normal business hours.

Simply provide basic information to report your claim and State Farm will review it and contact you if they need more information. An agent will also keep in touch to let you know about your repair estimates and options.

Financial Strength Rating

State Farm has a very strong reputation in the industry and has also been ranked A++ by AM Best, which shows its superior ability to pay off its claims.

Pros

  • Offers a large range of policy discounts
  • Has a very helpful mobile app

Cons

  • Requires personal information like date of birth and driver’s license number to submit claim
  • Rideshare coverage may not be available in all states

Progressive

The best thing about Progressive is that it offers easy insurance coverage for people who do not have a squeaky clean driving record. The company allows high-risk drivers to opt in for a coverage plan that meets their state’s minimum insurance requirement. You can also enroll in its Snapshot program for additional savings as well as redeeming your driving record.

Coverage and Add-ons

Progressive offers comprehensive coverage in case of car accidents. These include:

  • Collision and comprehensive coverage
  • Bodily injury liability and property damage liability
  • Medical payment coverage and personal injury protection
  • Uninsured motorist coverage
  • Umbrella insurance policies that provide an additional layer of coverage to the policyholder

Some additional benefits that Progressive offers include roadside assistance, gap coverage, rental car reimbursement, rideshare coverage, custom parts and equipment value coverage, and deductible savings bank.

Average Premium and Discounts

The average annual premium for Progressive is $1,334 per year. The company offers 13 different types of discounts, including the Snapshot discount that calculates savings based on your driving habits. The average saving amount is $146 for a year.

Claims Process

You can submit a claims application through Progressive’s website, its mobile app, or by calling on 800-776-4737. The company will connect you with a claims rep who can walk you through the process. You also have the option to choose whether you want to get your car fixed through Progressive or would like a direct payment. If you use a car shop within Progressive’s network, it will give you a lifetime guarantee for repairs.

Financial Strength Rating

Progressive has received an A+ (Superior) rating from AM Best which is its second-highest rating. This indicates that the insurance company is financially strong and able to meet its policy obligations.

Pros

  • Offers affordable insurance even to high-risk drivers
  • Provides a wide range of discounts including the Snapshot discount
  • Gap insurance and umbrella insurance available

Cons

  • Price may vary depending on whether you buy the policy online, through the app, or via phone call
  • Not all discounts are available in all states

Amica Mutual

Although Amica Mutual does not come with a lot of bells and whistles, it is known for its stellar customer service and claims satisfaction. The company has ranked at the top in J.D. Power’s Auto Claims Satisfaction Study several times and is known for low premiums and low customer complaints.

Coverage and Add-ons

Amica Mutual offers a wide range of required and beneficial optional coverage that you need. It offers:

  • Collision coverage
  • Comprehensive coverage
  • Bodily injury liability and property damage liability
  • Medical payments and personal injury protection
  • Uninsured and underinsured coverage

The company also offers optional coverage, including roadside assistance, deductible-free coverage for glass, rental reimbursement, and a Platinum Choice coverage that bundles top-of-the-line coverage options like accident forgiveness and identity fraud monitoring into a single package.

Average Premium and Discount

Amica Mutual offers one of the lowest average premiums in the industry at just $1,071 a year. The company also offers 18 different types of discounts that can lower your insurance premiums significantly.

Claims Process

Amica Mutual allows you to make a claim through the mobile app, online claim center or by calling 800-242-6422. When making the claim, you will be asked about your contact details, the make and model of the car, the names of the injured party and witnesses and details of the incident. Once your claim has been reviewed, you will be contacted by Amica to assess the condition of your car.

Once your claim has been deemed valid, Amica will send you a check or transfer the cash via direct deposit.

Financial Strength Rating

Amica holds an A+ (Superior) rating from AM Best, which shows the company has a sound financial status and can meet its contractual obligations readily.

Pros

  • Is ranked the highest when it comes to superior customer satisfaction
  • Offers an extensive range of discounts
  • Offers extra benefits like free repair of deployed airbags, free lock replacement, lost wage reimbursement, and $1000 for bail bonds.

Cons

  • Has few regional offices across the country
  • Does not offer rideshare coverage
  • Discounts not available in every state

Erie Insurance

Erie Insurance is a stellar choice for young drivers under the age of 21. It offers some of the lowest rates in the industry for teen and college-age drivers and offers them generous discounts for even more savings.

Coverage and Add-ons

Like most insurance companies on our list, Erie offers:

  • Collision and comprehensive coverage
  • Bodily injury and property damage liability
  • Uninsured motor coverage
  • Medical payments and personal injury protection
  • Umbrella insurance policies

However, its claim to fame is its extensive range of add-ons and benefits including roadside assistance, pet and personal item coverage, deductible-free glass repair, and new car coverage. It also offers rideshare insurance, extended coverage for non-owned vehicles like vans and many other benefits. It also offers policies for recreational vehicles like motorcycles, RVs, and boats.

Average Premium and Discount

The average premium for Erie Insurance is $1,233 per year. The company offers seven different discounts ranging up to 25%, including savings on paying in a lump sum and young drivers’ discounts.

Claims Process

Your auto insurance claim can start by contacting your local Erie agent or calling 800-367-3743. Fill in the details and wait for an Erie adjuster to review your claim and call you back. Erie also shares your estimate with you and offers several car repair options to help your car get back on the road in no time.

Financial Strength Rating

Erie Insurance has earned an A+ rating from AM Best, indicating its superior ability to settle policyholders’ claims.

Pros

  • Offers a lot of benefits for young drivers
  • Offers a plethora of discounts and additional benefits and add-ons
  • Offers RateLock feature that prevents your premium from going up

Cons

  • Coverage is not available in every state
  • May need to make a phone call for managing your policy 

Which is the Best Car Insurance?

Although one or two of these car insurance providers may stand out to you now, we encourage you to seek accurate car insurance quotes from them directly. The premium of your car insurance depends on a number of factors including your car, coverage, driving habits, demographics, location, limits, and deductibles. That is why it is best to compare multiple car insurance to find the best coverage that suits your individual needs and budget.  

About THE AUTHOR

Charles Redding

Charles Redding

I've spent many years selling cars, working with auto detailers, mechanics, dealership service teams, quoting and researching car insurance, modding my own cars, and much more.

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