Finding the cheapest car insurance doesn’t always guarantee the best protection. The right auto insurance policy should align with your lifestyle, driving habits, coverage needs, and budget. Fortunately, some insurers prove that you can secure low rates without compromising on quality. Finding the best car insurance company for your specific needs can feel overwhelming. However, comparing rates is always a smart strategy to ensure you’re getting the most value. To make things easier, Quote Nest analyzed 155 insurance companies, evaluating them across 19 data points that include financial strength, customer satisfaction, and affordability. From there, we’ve identified the top seven insurers to help you start your search with confidence
Best Car Insurance Companies
Choosing the best insurance company depends on your personal needs, but we’ve focused on finding those that provide both a quality customer experience and affordable premiums. Our editorial team has thoroughly reviewed key factors, including customer complaints, satisfaction rates, financial strength, and nationwide availability.
Affordability plays a significant role in our analysis, which is why the selected insurers offer competitive rates that fall below the national monthly averages of $104 for liability-only coverage and $211 for full-coverage car insurance. These companies strike the perfect balance between cost and quality, making them excellent choices for a variety of drivers.
How to Find the Best Car Insurance for You
Your lifestyle and unique driving profile play a significant role in determining the best car insurance policy for you. Here are key factors to consider as you search for the right coverage:
Coverage Levels
The legally required minimum liability coverage varies by state, but experts often recommend purchasing more than the minimum for better financial protection. If you lease or finance your vehicle, your lender will likely require full coverage. Be sure to research what you need and avoid overpaying for coverage that doesn’t benefit you.
Discounts
Most insurers offer discounts for bundling policies, insuring multiple vehicles, driving safely, and more. Look for an insurer that offers discounts that match your situation. Bundling several discounts together can lead to substantial savings over time.
Driving Habits
Your driving record has a big impact on your insurance rates. Whether you have a clean driving history or past incidents, finding the right insurer depends on your habits. If you don’t drive often or far, you might want to consider a pay-per-mile or pay-as-you-go policy to maximize savings.
Location
Where you live can affect your insurance premiums. Population density, accident rates, and crime statistics in your area can drive up or lower costs. Regional insurers often offer competitive rates, so consider looking locally to find the best deals.
Best Car Insurance Company by State
Car insurance rates and available discounts can vary significantly depending on where you live. That’s why comparing quotes from both national and regional insurance companies is essential to finding the best policy for your needs. In the table below, we’ve highlighted insurers that offer competitive rates, superior coverage options, generous discounts, strong financial stability, and excellent customer service to help you identify the best cheap car insurance rates in each state.
Average Cost of Car Insurance
The cost of car insurance has been steadily rising. Rates increased by 24% in 2023, and Quote Nest predicts an additional 7% increase in 2024. As of now, the national average stands at $104 per month for liability-only coverage and $211 per month for full coverage.
Why Is Car Insurance So Expensive?
Several factors contribute to the rising cost of car insurance, including:
- Increased cost of repairs: As vehicle technology advances, the cost of repairs has gone up
- More severe accidents: Accidents have become more frequent and severe, driving up the claims paid by insurers.
- Extreme weather events: Increasingly severe weather events have resulted in record losses for insurance companies.
- Regional factors: States like New York, Nevada, and Florida experience some of the highest car insurance rates due to regional legislation, fraud, and higher accident rates.
In 2023, car insurance became notably less affordable, with rates rising 638% more than wages, according to Quote Nest’s data. Low-income states, like Mississippi (the lowest-income state in the U.S.), saw residents spending 3.4% of their income on car insurance, compared to 1.8% for Utah drivers. Given these factors, it’s more important than ever to compare car insurance quotes to find coverage that meets your needs without breaking the bank.
How Much Car Insurance Coverage You Need
Each state has minimum liability requirements for car insurance, with New Hampshire being the only exception, though it still has financial responsibility requirements. While you’re required to purchase at least your state’s minimum coverage, opting for higher coverage provides better financial protection.
If you lease or finance your vehicle, your lender will likely require full coverage. Similarly, if you own a high-value or rare vehicle, you might want extra coverage to ensure repair costs are covered, as repairs for these cars can be much more expensive.
Types of Car Insurance Coverage
Understanding the different types of car insurance coverage can help ensure you get the protection you need without paying for what you don’t. Below are some of the common coverage options:
- Liability-Only Coverage
Covers bodily injury and property damage you cause to others. Every state except New Hampshire requires some form of liability coverage. - Full Coverage
Includes liability, collision, and comprehensive insurance. Collision covers damage to your car in an accident, even if you’re at fault, while comprehensive covers non-collision incidents like theft or weather damage. - Uninsured/Underinsured Motorist Coverage
Protects you if you’re in an accident with a driver who either has no insurance or insufficient coverage to pay for damages. - Personal Injury Protection (PIP)
Covers medical expenses, lost wages, and funeral costs for you and your passengers, regardless of who is at fault. In no-fault states, PIP may be part of your required coverage. - Medical Payments (MedPay)
This add-on helps cover medical and funeral expenses for you and your passengers, even if you’re at fault in an accident. - Guaranteed Asset Protection (Gap Insurance)
Covers the difference between your car’s value and the balance of your loan or lease if your vehicle is totaled in an accident. - Accident Forgiveness Coverage
Helps prevent your premiums from increasing after your first at-fault accident.
State-Minimum vs. Full Coverage
The right coverage for you depends on your location, driving history, vehicle type, and financial situation. Here are some guidelines to consider:
- Liability-Only Coverage:
A good option if you have a paid-off vehicle, live in a less-populated area, and have the financial means to cover unexpected expenses. - Full Coverage:
Necessary if you live in an area prone to natural disasters, high vehicle crime rates, or lease/finance your vehicle. Full coverage offers added protection for accidents and natural events that could otherwise result in significant out-of-pocket expenses.
Choosing the right coverage involves balancing your budget, risk factors, and insurance needs. Compare quotes to ensure you find the best policy that fits your circumstances.