Best Car Insurance Companies

The most popular car insurance companies are State Farm, Geico and Progressive, which service more than 120 million policies and have a combined market share of 42.1%. The next most popular car insurance companies are Allstate, USAA, Liberty Mutual, Farmers and Nationwide.

Most Popular Car Insurance Companies

1. State Farm
2. Geico
3. Progressive
4. Allstate
5. USAA
6. Liberty Mutual
7. Farmers
8. Nationwide
9. American Family
10. Travelers

Together, these insurance providers were responsible for auto policies totaling nearly $185 billion in premiums during 2019, according to the Insurance Information Institute. They have been among the most used car insurance companies for at least the past five years.

The best car insurance for drivers with points is from USAA, AAA, and Progressive, according to quotes for different types of drivers with points. Drivers with points for serious violations are considered high risk, meaning that insurers consider them likely to file a claim, so they will be charged more as a result.

In order to find the best insurance for drivers with points, WalletHub commissioned quotes for a variety of offenses. All of these violations lead to a different number of points in each state, and these numbers represent the average of a wide range of locations. It's important to note that repeat offenses are even more alarming to insurance companies, since they indicate a failure to reform, so your rates will likely be higher if you have a record of multiple violations that lead to points.

Best Car Insurance for Drivers with Points, By Type of Violation

Points are assigned by most states to drivers who violate traffic laws on everything from speeding to drunk driving. States will suspend the driver's licenses of people with a certain number of points, or in some cases, drivers with a single serious infraction. As a result, drivers with points on their licenses should be prepared to pay more for insurance, and might even have trouble finding a policy. Drivers with points who are struggling to find affordable coverage or who are rejected by standard insurance companies can also look into high risk insurance. If you have so many points that you are repeatedly rejected by private insurers, consider joining your state's assigned risk pool. Even if your policy is expensive now, remember that points fall off your record eventually and your premiums will decrease as they do so. In addition, taking advantage of any point and insurance reduction programs can help your driving record – and your insurance costs. Finally, drivers with points should be especially willing to comparison shop, since insurance companies vary widely in how much they increase premiums for various violations.

Notable car insurance companies that only look back 3 years for violations and claims include Progressive and State Farm. Many car insurance providers only look back at the past 2-3 years on a customer's driving record to check for claims on an insurance policy or minor moving violations. But some auto insurance companies will look back as far as 5-10 years for major violations and claims when making underwriting decisions.

In addition to differences in company rules, auto insurance providers are sometimes limited by state laws to only looking back 3 years for information on someone's driving record. For example, the states of Virginia and Washington require that auto insurance companies disregard driving-record info that is more than 3 years old. Massachusetts and California, on the other hand, are examples of states that allow companies to look back up to 10 years.

For context, when you're shopping for auto insurance, you agree to let car insurance companies that you apply with collect your official Motor Vehicle Report (MVR) and Claim Loss Underwriting Exchange (CLUE) report in the state where you're licensed. It's important that you don't purposely misrepresent or omit a moving violation or claim, as doing so can lead to inaccurate quotes, policy cancellations and claims denials. It's also important to remember that even if you're dealing with one of the many car insurance companies that only look back 3 years, every auto insurance provider calculates risk in its own way, so it's best to shop around for the best rate.

The best car insurance for new drivers under 25 years old is from companies like Allstate, Geico, Progressive, and Safeco. They are among the cheapest car insurance companies for drivers of all ages, both under 25 and older, according to WalletHub's Cheap Car Insurance Report. These companies provide a variety of coverage choices at affordable prices, along with numerous discounts applicable to drivers under 25.

Best Car Insurance For New Drivers Under 25

• Allstate
• Esurance
• Liberty Mutual
• MetLife
• Metromile
• Progressive
• Safeco
• State Farm
• Travelers
• USAA

Drivers under 25 typically pay higher insurance premiums than older drivers, so options for reducing those high costs are especially important. When shopping for auto insurance, new drivers under 25 should consider their state's car insurance requirements, as well as what coverage they will need to be fully protected on the road. Then, they should look into opportunities for discounts.

Many major insurance providers offer discounts that can help reduce the cost of premiums for young drivers. Companies like Geico and Allstate provide good student discounts for drivers under 25 years old who maintain at least a B grade-point average. Young drivers who take a driver's education course or a defensive driving course are eligible for savings, too.

Finally, some companies, like Metromile and Esurance, offer usage-based auto insurance policies that calculate premiums based on how much you drive. These policies can offer an affordable alternative for young drivers who don't drive frequently.

Once a driver turns 25, they are considered to be more experienced and less likely to be involved in an accident, thus their insurance premiums are likely to decrease. Estimates show that premiums decrease by approximately 10% for people with a good driving history once they turn 25.

The best car insurance for bad credit is from Geico and Progressive, because they are less reliant on credit data than other major insurers when setting car insurance premiums.

People with bad credit can also look up regional no-credit-check car insurance companies. However, it's important to realize that these companies are smaller and cater to high-risk customers, so they might not necessarily be cheaper. Instead, the best strategy to find cheap insurance with poor credit is to compare quotes from several different insurers, starting with Geico and Progressive and then widening your search.

It's also worth noting that many states have laws regulating how insurers can use credit, in order to protect consumers.

Regulations on Credit Use for Car Insurance

• Massachusetts, Hawaii and California ban auto insurance companies from using credit information.
• Michigan prevents insurers from using credit scores, but not insurance scores, which are based on credit data.
• Washington forbids insurers from denying coverage based exclusively on credit.
• Oregon insurers cannot cancel or refuse to renew a policy due to credit more than 60 days after the original policy start date.
• Texas requires insurers to disregard poor credit originating from divorce, a family member's death, temporary unemployment, or a similar life event.
• Many states ban insurers from using scores that take demographic information into account, although FICO specifies that it never considers race, gender, marital status or other prohibited factors.

Insurance laws vary widely by state, and this is not a complete list. You can look up your state's department of insurance for more information on its specific regulations. Additionally, most insurance regulators allow consumers to file a complaint if they believe an insurance company violated state laws.

Finally, even though poor credit might be hurting your car insurance premiums now, it's important to remember that your credit score can change. To help decrease your premiums over the long run, check your credit score and learn how to improve it. 

The best car insurance companies for first time drivers over 25 years old are Erie Insurance, American Family Insurance and State Farm. When shopping for car insurance, first time drivers over 25 should look for the highest quality coverage at the lowest price, but they should also expect to pay more for coverage than other drivers their age. Although car insurance costs the most for new teen drivers, lacking experience at any age means that you're considered high-risk and will pay a higher premium.

Best Car Insurance Companies for First Time Drivers Over 25

• Erie Insurance
• American Family Insurance
• State Farm
• Geico
• Progressive
• Allstate
• Nationwide
• Liberty Mutual
• USAA

While most of these companies operate nationwide, Erie Insurance and American Family Insurance only operate in 12 and 17 states, respectively. Additionally, USAA is only available to military servicemembers and their families.

No matter which insurance company you choose, time is the best tool for new drivers over 25 who want to save money on their car insurance. Costs will usually begin to lower after three years of good driving, and the biggest drop in your premium will come after nine years of driving. Aside from your driving record, age is also going to help long-term costs. Insurance rates gradually decrease as drivers get older, until they reach senior status. 

Yes. Geico is a good insurance company. Geico has been providing insurance since 1936, and it has an A+ Better Business Bureau (BBB) rating. It also ranked 2nd in WalletHub's latest comparison of the cheapest major car insurance companies.

Geico's NAIC rating is 1.601, however, which means it has received more complaints than the average insurance company. On the other hand, it may be encouraging to note that Geico is a wholly owned subsidiary of Berkshire Hathaway, which boasts famous investor Warren Buffet as its chairman and CEO.

• A+ BBB rating
• AA+ S&P rating
• A++ A.M. Best rating
• Average rating of 2.9/5 among user ratings on WalletHub
• NAIC rating of 1.601

Geico offers a wide variety of insurance products, including policies for your home, vehicle and business, through a network of affiliates as well as non-affiliated companies that specialize in writing different types of insurance policies. You can also bundle policies from Geico for a multi-policy discount.

• Vehicle
• Property
• Business
• Renters
• Identity protection
• Jewelry
• Life
• Travel/Overseas
• Pet
• Umbrella

You can get a free quote by contacting Geico online or over the phone at 1 (800) 207-7847.

Yes. Amica is a good insurance company, boasting an A+ BBB rating, an A+ A.M. Best rating, and an average of 3.5/5 among user ratings on WalletHub. Its NAIC rating is 1.41, however, which means Amica has received more complaints than the average car insurance provider.

Amica Mutual Insurance Company, as it's officially known, is based in Lincoln, Rhode Island, and it has been in operation since 1907. It currently offers a variety of insurance policies for cars, boats and homes, as well as coverage for pets, special events and small businesses. You can save by bundling Amica Insurance policies, too.

Why Amica Insurance Is a Good Company:

• Has been in business since 1907
• A+ rating with the Better Business Bureau
• A+ rating with A.M. Best
• Averages 3.5/5 among user ratings on WalletHub

You can get a free Amica Insurance quote online or by contacting an agent at 1-800-242-6422.

An NAIC number is a five-digit code used to identify insurance companies, assigned by the National Association of Insurance Commissioners. NAIC numbers can be used to find the number of complaints filed against a company, financial and legal information, or if a company has a valid license to operate in your state.

 NAIC Numbers Are Used To:

• Find and/or file consumer reports and complaints
• Find fraud allegations previously filed against insurance companies
• Find information about insurance companies' finances
• Find insurance companies' licenses

Consumers can search an insurer's NAIC number on the National Association of Insurance Commissioners website to file complaints or to find licensing reports, consumer complaint reports, and finance overview reports.

Consumers should be careful when looking for a company's NAIC number because larger companies will have a main NAIC number as well as a unique NAIC number for each type of policy they offer (e.g. auto insurance, life insurance, household insurance). Below, you can see the main NAIC numbers for some of the country's largest insurance companies.

NAIC Numbers for Major Insurance Companies

Yes, drivers should trust their insurance company but they should be cautious while navigating the claims process. Although insurance companies are designed to protect people in the event of accidents, they are still businesses with the main goal of staying open and making profit. That being said, your insurance company is not out to get you.

You should always make sure you are getting the best deals from your insurance company and don't be afraid to switch insurers if your current company is not giving you a great rate.

To find the right car insurance company for you, check out WalletHub's picks for the best car insurance.