Not all car insurance companies are the same. We polled over 10,000 drivers to learn about their car insurance experiences, focusing on critical areas such as customer service, handling of claims, and customer loyalty. We rated the best car insurance companies of 2023 based on that data to assist you in finding the best one.
What Is the Best Car Insurance Company?
The best car insurance company, according to our 2022 data, is USAA, but its insurance products are only available to members of the military community. If that doesn’t work for you, the next best option is State Farm, which ranks second in our analysis.
We analyzed rate data as well as feedback from policyholders to determine the best car insurance companies, paying special attention to customer service, claims handling, customer loyalty, and policy renewal. We also asked survey participants if they would recommend their current insurer to a driver looking for a new policy.
If you are looking for auto insurance, this list can assist you in comparing insurers based on the factors that are most important to you. Though USAA and State Farm lead the pack, one of the other eight companies in our rating may be a better fit for you. As a result, before purchasing or renewing your policy, compare several insurers and their rates.
Top Rated Car Insurance Companies
| RANK | COMPANY | RATING | AVERAGE ANNUAL RATE |
|---|---|---|---|
| 1 | USAA | 4.3 U.S. News Rating | $1,000 |
| 2 | State Farm | 4.2 U.S. News Rating | $1,267 |
| 3 | Farmers | 4.1 U.S. News Rating | $1,917 |
| 4 | Nationwide | 4.1 U.S. News Rating | $1,328 |
| 5 | Geico | 4.1 U.S. News Rating | $1,148 |
1. USAA
In our ratings, USAA is the best insurance company. According to our 2023 survey, USAA customers are the most satisfied, and they are the most likely to renew their policies and recommend USAA to other drivers. In addition, USAA has the lowest rates in our study, outperforming the national average by 35%.
USAA insurance products, such as auto, homeowners, and renters policies, are only available to military personnel. As a result, not all drivers will be eligible for coverage from this company.
2. State Farm
State Farm ranks second in our rating, with above-average scores in all of our sub-ratings, including Claims Handling and Customer Loyalty. It also performed well in our ranking of the Cheapest Car Insurance Companies in 2023. Its average premiums for drivers with less-than-perfect driving records were the lowest in our rating for those who couldn’t get a policy with USAA.
4. Farmers
Farmers tie for third place in our rating and top spots in many of our sub-ratings. It is ranked first in Claims Handling and second in Customer Service and Customer Loyalty. Farmers lose points in our rating compared to other insurers for Most Likely to be Renewed, where its score of 4.0 is lower than the category average of 4.2. It also has one of the highest average annual rates among the companies in our ratings.
5. Nationwide
Since our 2021 analysis, Nationwide has risen two spots to tie for third place. Nationwide ranks second in our Customer Loyalty and Most Likely to be Recommended sub ratings, and ranks above average in all other subtracting categories. Nationwide also has lower-than-average rates for some drivers, particularly those with a clean driving record or bad credit.
What Is the Best Car Insurance Company?
USAA is the best overall car insurance company, according to our data and customer survey results. However, USAA insurance products are only available to active and retired military personnel, as well as their families. In our survey, State Farm ranks second, making it the best car insurance company for drivers who aren’t eligible for USAA membership.
Despite the fact that USAA and State Farm have the highest ratings, it’s a good idea to consider and compare multiple insurers who made our Best Car Insurance Companies of 2023 list. This can assist you in locating coverage that meets your requirements.
USAA also swept all five of our customer feedback sub-rankings. However, not all policyholders will be eligible for USAA membership. As a result, we’ve identified the runner-up in each category so that all customers can learn about the best option in each of these categories.
If price is an important factor in your decision, you should obtain and compare car insurance quotes. Though our study includes average rate data, your personal car insurance rate will be determined by your age, location, driving record, credit score, and the preferred type and amount of coverage, among other factors, so it’s critical to research your options based on current demographic characteristics.
Best for Customer Service: USAA and State Farm
USAA and State Farm are ranked first and second, respectively. Sixty-five percent of USAA customers who haven’t filed a claim are ecstatic about their customer service experience. Among those who have filed a claim, that figure drops only slightly, with nearly 64% of USAA customers reporting that they are extremely satisfied with the insurer’s customer service.
If you are not eligible for USAA coverage, you should think about State Farm. Almost 60% of State Farm customers who haven’t filed a claim are extremely pleased with their customer service experience. State Farm, like USAA, has slightly lower customer satisfaction scores among customers who have filed a claim. 56% of survey respondents were completely satisfied with their customer service experience.
Best for Claims Handling: Travelers
Travelers rank first in claims handling, which is an important aspect of any insurance policy. It receives a 4.3 out of 5 rating and is the only insurer to dethrone USAA, which leads the pack in every other subtracting category we looked at. Almost 62% of Travelers customers are completely satisfied with the ease of filing a claim, and 65% are completely satisfied with their claims resolution.
Farmers, Nationwide, and State Farm received above-average claims handling ratings as well.
Most Likely to be Recommended: USAA and Nationwide
With low rates and high ratings in every category we looked at, it’s no surprise that USAA customers are the most likely to recommend their insurer to other drivers looking for coverage.
Fifty-three percent of USAA customers who have not filed a claim say they are very likely to recommend the insurer, with another 18% saying they are likely to recommend it. Customers who have filed a claim with USAA are even more likely to recommend their insurer. Sixty-one percent of those polled said they are very likely to recommend the insurer, and another 8% said they are likely to recommend it.
How Much Does Car Insurance Cost?
According to our most recent research, the average cost of car insurance is $1,539 per year. Your premium, however, may be higher or lower depending on a number of factors, including:
- Age
- Driver record
- Location
- Type and amount of coverage
- Credit score
- Available car insurance discounts
With any insurer, there are frequently a number of discounts available that take into account certain demographic factors, driving records, and even active driving evaluations. Car insurance quotes are the simplest way to determine how much you may have to pay. You can obtain car insurance quotes online or by contacting an agent via email, phone, or in person.