The best car insurance companies are Geico, Progressive, and USAA, based on average premiums, customer reviews, and WalletHub editor ratings. 2021’s best auto insurance companies provide affordable coverage, a variety of insurance types, and plenty discounts.
Best Car Insurance Companies of 2021
Best Car Insurance Companies
1. Geico
- Average annual premium: $506
- WalletHub editor rating: 4.5 out of 5
- User rating on WalletHub: 3.2 out of 5
- Better Business Bureau rating: A+
The best car insurance company is Geico because of its competitive premiums and its wide variety of coverage options and discounts, including good-driver and vehicle-safety discounts. Besides auto insurance, Geico also sells a variety of other types of insurance, including boat, condo, and renters coverage.
2. Progressive
- Average annual premium: $649
- WalletHub editor rating: 4.3 out of 5
- User rating on WalletHub: 3.1 out of 5
- Better Business Bureau rating: A+
Progressive is one of the best car insurance companies, given its consistently low prices. Policyholders can easily file a claim with the company, too, since it offers the option of filing online or via the mobile app, plus a 24/7 claims support phone line. Ways to save on Progressive car insurance include multi-policy, multi-car, and Snapshot discounts.
3. USAA
- Average annual premium: $633
- WalletHub editor rating: 3.3 out of 5
- User rating on WalletHub: 3.0 out of 5
- Better Business Bureau rating: B+
USAA is an affordable car insurance company, though it’s only available to military service members, veterans, and their families. Besides standard auto insurance coverage types, USAA also offers rideshare and classic car insurance. Just bear in mind that USAA has lower customer service ratings than some of its competitors, given complaints about slow communication and unsatisfactory claims settlements.
4. Esurance
- Average annual premium: $719
- WalletHub editor rating: 3.3 out of 5
- User rating on WalletHub: 3.8 out of 5
- Better Business Bureau rating: A-
Esurance provides inexpensive insurance coverage for drivers who are comfortable buying a policy from a company without local agents. Auto policies from Esurance are available in 43 states, including California, Florida, and Texas. However, Esurance’s low prices are accompanied by some disadvantages. For instance, Esurance has about three times as many customer complaints as its average competitor.
5. Travelers
- Average annual premium: $691
- WalletHub editor rating: 3.8 out of 5
- User rating on WalletHub: 2.5 out of 5
- Better Business Bureau rating: A+
Travelers is a good car insurance company overall, given its variety of coverage options and 15 different discounts. For instance, policyholders can save for insuring a hybrid vehicle, driving safely, and taking a driver’s education class. Besides car insurance, Travelers also offers homeowners, renters, and landlord insurance policies, among others.
6. The Hartford
- Average annual premium: $863
- WalletHub editor rating: 3.1 out of 5
- User rating on WalletHub: 3.1 out of 5
- Better Business Bureau rating: A+
The Hartford is best known for its discounted premiums for AARP members, though non-AARP members can also buy policies from the company. Any policyholder can save by taking advantage of The Hartford’s discounts, too, including paid-in-full and defensive-driver discounts. Besides car insurance, The Hartford also writes homeowners, boat, and umbrella policies, among others.
7. Mercury
- Average annual premium: $675
- WalletHub editor rating: 2.8 out of 5
- User rating on WalletHub: 2.2 out of 5
- Better Business Bureau rating: A+
Mercury’s premiums are competitive, but the company’s policies are only available in 11 states, including California, Florida, and Texas. Policy add-ons from Mercury include rental reimbursement, mechanical protection, and emergency road service. If you’re looking to bundle several policies, you can also purchase home, renters, or condo coverage from Mercury.
8. AAA
- Average annual premium: $795
- WalletHub editor rating: 3.2 out of 5
- User rating on WalletHub: 2.7 out of 5
- Better Business Bureau rating: A+
AAA offers low prices and a range of discounts, making it a good choice for budget-conscious drivers. However, customers must be AAA members to purchase auto insurance from the company. AAA membership fees vary by regional club but often range from $38 to $171 per year. Besides standard car insurance offerings, some regional clubs offer gap insurance, accident forgiveness, and rental reimbursement coverage.
9. State Farm
- Average annual premium: $919
- WalletHub editor rating: 3.4 out of 5
- User rating on WalletHub: 3.8 out of 5
- Better Business Bureau rating: A+
State Farm is the country’s largest car insurance company, which makes it a good choice for drivers who want to be insured by a major company. State Farm also offers several different types of insurance, meaning that customers can save via multi-policy discounts. Plus, drivers with specific needs can purchase sports-car or classic-car insurance from State Farm, as well as rideshare insurance in some states.
10. Liberty Mutual
- Average annual premium: $879
- WalletHub editor rating: 3.3 out of 5
- User rating on WalletHub: 2.9 out of 5
- Better Business Bureau rating: A+
Liberty Mutual offers affordable car insurance coverage for drivers in every state, plus optional policy add-ons like rental car reimbursement, commercial car insurance, and classic car insurance. Drivers can also save on their Liberty Mutual auto policy by taking advantage of multi-car, early-shopper, and good-student discounts, among others. Other types of insurance from Liberty Mutual include homeowners, business, and motorcycle coverage.
Best Car Insurance Companies Compared
| Company | Average Annual Premium | User Rating on WalletHub |
|---|---|---|
| Geico | $506 | 3.2/5 |
| Progressive | $649 | 3.1/5 |
| USAA | $633 | 3.0/5 |
| Esurance | $719 | 3.8/5 |
| Travelers | $691 | 2.5/5 |
| The Hartford | $863 | 3.1/5 |
| Mercury | $675 | 2.2/5 |
| AAA | $795 | 2.7/5 |
| State Farm | $919 | 3.8/5 |
| Liberty Mutual | $879 | 2.9/5 |
Tips for How to Get the Best Car Insurance
1. Shop around to find the best deal.
Insurance companies calculate premiums based on a variety of factors, including age, ZIP code, and driving record. As a result, it’s a good idea to get quotes from at least three insurers to help you find the best car insurance for your individual needs. Then, be sure to shop around the next time you need to renew your policy. This way, you can make sure you’re still getting the best deal.
2. Don’t ignore regional companies.
Major insurance companies like State Farm, Geico, and Progressive dominate the market, but don’t forget about smaller companies. Local and regional insurers can offer competitive prices as well. Regional companies can also be a good choice for drivers who prefer to interact with an agent rather than managing their policy online. You can click on the name of your state below to find a list of reliable insurers in your state, including companies of all sizes.
3. Remember to look for discounts.
Some car insurance discounts are applied automatically when you get a quote, but don’t forget to look for more ways to save. For instance, you might be able to save on your premium by taking a defensive driving class or by signing up for your insurer’s usage-based program.
4. Consider factors besides price.
Finding an affordable car insurance policy is important, but price isn’t the only thing that matters. Before purchasing a policy, you should also evaluate the company’s customer service record. For example, you can see how the company is rated with the Better Business Bureau or with J.D. Power, a market research company. User ratings on WalletHub also reflect customer satisfaction, while WalletHub editor ratings make it easy to see how a company stacks up against the competition.
Learn More About the Best Car Insurance Companies by State
Methodology
The best car insurance companies were determined using each company’s average annual premium, WalletHub editor rating, and user rating on WalletHub. Premiums were given twice the weight of the other two factors and were used as a tiebreaker when necessary.
Annual premiums represent an average of quotes for 30 California ZIP codes. The quotes represent coverage for a 45-year-old single man who drives 15,000 miles annually and has a clean driving record plus good credit. Premiums are for the following coverage limits:
- $15,000 in bodily injury liability coverage per person
- $30,000 in bodily injury liability coverage per accident
- $5,000 in property damage liability coverage
