Top 5 Largest Car Insurance Companies

Advertisements for new insurance companies seem to pop up daily, but only a few have stood the test of time. These enduring companies have adapted their business models over the years to remain competitive.

For instance, Liberty Mutual, founded in 1912, initially provided workers’ compensation insurance for businesses. GEICO began in 1936, serving government and military employees before expanding to the general public after Warren Buffet’s Berkshire Hathaway acquired it in 1996.

Comparing Car Insurance Quotes

When seeking car insurance, it's crucial to compare quotes to find the best rates and coverage. Here are some top choices based on affordability, customer satisfaction, and financial stability.

The 5 Best Auto Insurance Companies

We evaluated car insurance companies that offer affordable full-coverage premiums

Insurance Company	Average Monthly Quote: Full Coverage	Our Quality Score
NJM	$75	4.5
USAA	$152	4.5
State Farm	$175	4.4
American Family	$227	4.3
GEICO	$178	4.3

NJM

NJM, or New Jersey Manufacturers, began in 1913 selling workers’ compensation insurance. Today, it offers affordable coverage and high customer satisfaction, even paying dividends to some customers, a rarity in the industry. However, NJM's auto insurance is available in only five states: Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania.

Pros:

• Pays dividends to some policyholders
• Low volume of customer complaints
• Active in community-based teen driver safety programs

Cons:

• No mobile app
• Limited to five states
• Poorly rated telematics-based app

USAA

USAA consistently ranks high in customer satisfaction and overall performance. It primarily serves current or former military members and their families, offering specialized discounts for military-specific situations like on-post storage or deployment.

Pros:

• Lower-than-average premiums
• A++ A.M. Best rating
• Military-specific discounts and services

Cons:

• No gap coverage
• Not available to the general public
• Limited branch locations

State Farm

State Farm, the largest car insurance company in the U.S., is known for its high customer satisfaction and excellent mobile app. It holds a top A.M. Best rating, ensuring financial stability and reliability.

Pros:

• Highly-rated mobile app
• Strong customer satisfaction ratings
• Additional banking and investment services

Cons:

• Not available in Massachusetts or Rhode Island
• Higher rates for bad credit
• No coverage for custom aftermarket equipment

American Family

Founded in 1927, American Family is praised for helping customers save on car insurance without compromising quality. It offers a pay-per-mile option for low-mileage drivers and numerous discounts, though it is available in only 19 states.

Pros:

• Numerous discounts for younger drivers
• Diminishing Deductible program
• High customer satisfaction in the Central region

Cons:

• Low mobile app satisfaction
• Limited to 19 states
• Lower A.M. Best rating compared to top insurers

GEICO

As the third-largest auto insurance company in the U.S., GEICO boasts strong financial stability, low customer complaints, and competitive pricing. It offers unique coverages like mechanical breakdown insurance and various discounts, including for emergency military deployment.

Pros:

• A++ A.M. Best rating
• Low NAIC complaints
• Unique coverage options

Cons:

• No gap coverage
• No rideshare coverage
• Limited local agent network

The 5 Cheapest Car Insurance Companies

In most states, you must have at least minimum liability coverage. The following companies offer some of the lowest premiums for liability-only coverage.

Insurance Company	Average Monthly Quote: Liability Only
COUNTRY Financial	$60
NJM	$63
Auto-Owners	$76
USAA	$106
Erie	$107

How Much Does Car Insurance Cost?

Car insurance premiums are based on several factors, including your vehicle, credit score, coverage amounts, and demographic information. Full-coverage insurance typically costs more than liability-only coverage due to the additional protection it offers.

How Much Car Insurance Should You Have?

Determining the right amount of car insurance involves weighing your risks against the cost. If you're financing your car, lenders usually require full coverage. Financial advisors often recommend maximizing liability coverage to ensure sufficient financial protection in case of an accident.

How to Choose a Car Insurance Company

To find the best car insurance company, consider the following tips:

• Research reviews: Look at various review sites to see customer feedback and company ratings.
• Work with a broker: Independent brokers can help you find the best quotes from multiple insurers.
• Clarify your needs: Determine the coverage options you need and any specific features you prefer.

Ways to Save on Car Insurance

Car insurance can be expensive, but you can reduce costs by:

• Driving safely: Many insurers offer discounts for safe driving.
• Choosing a higher deductible: Higher deductibles lower premiums, but ensure you can afford the deductible if needed.
• Shopping for quotes: Comparing quotes from multiple companies increases your chances of finding cheaper coverage.

By considering these factors and options, you can find the best car insurance coverage that suits your needs and budget.