Best Car Insurance Companies of  2024

When it comes to car insurance, finding the right company can make all the difference. NerdWallet has done the legwork for you, ranking the best car insurance companies of August 2024 based on factors such as affordability, customer satisfaction, discounts, and financial strength. According to their analysis, Travelers comes out on top as the best overall car insurance company for 2024, followed by Auto-Owners and American Family. Here’s a closer look at the top picks and what makes them stand out.

Top Car Insurance Companies in 2024

1. Best Overall Insurance Company: Travelers

Travelers offers a comprehensive range of coverage options and discounts, making it a versatile choice for drivers looking to tailor their insurance policies to fit their needs. With fewer complaints than expected and a reputation for being user-friendly, Travelers is a strong contender for those seeking reliability and excellent customer service.

• Discounts: Extensive variety available
• Ease of Use: Above average
• Complaints: Fewer than expected

2. Best for Affordability: American Family

If staying within budget is your priority, American Family should be on your radar. Their average annual rate for full coverage is the lowest among the best-rated companies, making them an attractive option for budget-conscious drivers. They also boast far fewer customer complaints than many competitors, indicating a high level of customer satisfaction.

• Discounts: Great set of discounts
• Ease of Use: Above average
• Complaints: Far fewer than expected

3. Best for Accident Forgiveness: Geico

Geico shines with its accident forgiveness feature, ensuring that one accident won’t necessarily lead to higher rates or loss of a good driver discount. This benefit can be earned after being accident-free for five years or purchased outright, providing peace of mind for drivers concerned about potential mishaps.

4. Best for Few Customer Complaints: NJM

New Jersey Manufacturers Insurance (NJM) stands out for having significantly fewer customer complaints than other insurers of similar size. Although NJM's availability is limited to select states, its strong reputation for customer satisfaction makes it a noteworthy option for those who can access its services.

5. Best for Financial Strength: Auto-Owners

A company’s financial strength is crucial as it indicates its ability to pay claims. Auto-Owners, tied with other top insurers like Geico and USAA, ranks highly for financial stability, making it a reliable choice for those who prioritize security and assurance.

6. Best for Discounts: Amica

Amica offers a wide range of discounts, more than most competitors, including savings for multi-vehicle policies, homeownership, and taking defensive driving courses. While a high number of discounts doesn’t always equate to the lowest price, it can significantly reduce premiums for those who qualify.

7. Best for Customer Satisfaction: State Farm

State Farm, the largest auto insurer in the U.S., ranks highly for customer satisfaction, topping J.D. Power's Insurance Shopping Study. With a strong customer service reputation and a broad range of coverage options, State Farm is a reliable choice for many drivers.

8. Best for Military Members: USAA

USAA is renowned for its services tailored to military members, veterans, and their families. With competitive rates and excellent customer service, USAA also provides additional financial solutions, such as banking and investment options, making it a comprehensive choice for military personnel.

Nerdy Tip: Is Your Premium on the Rise?

With rising car insurance rates, you’re not alone if your premiums have gone up. The best car insurance companies often offer competitive rates, so it’s worth comparing quotes from our top picks to see if you can find a better deal.

How We Evaluated the Best Auto Insurance Companies

NerdWallet’s editorial team assessed various factors, including pricing, discounts, and complaint data from the National Association of Insurance Commissioners, to determine the top car insurance companies. The rankings are dynamic and will continue to evolve as more companies are evaluated and market data is updated.

Key Evaluation Criteria:

• Financial Strength (30%): Indicates the insurer's ability to pay future claims, based on ratings from agencies like AM Best, Moody's, and Fitch.
• Consumer Complaints (30%): Evaluates the number of customer complaints relative to the company's size.
• Ease of Use (20%): Assesses how easy it is to get quotes, file claims, and access policy information.
• Affordability (20%): Considers the variety and accessibility of discounts available to policyholders.

How to Find the Best Car Insurance for You

While our rankings provide a good starting point, choosing the best car insurance company depends on your specific needs. Here are some tips to help you find the right fit:

1. Shop Around: Compare quotes from multiple insurers, as prices vary significantly.
2. Check for Complaints: Research customer complaints to gauge an insurer's service quality.
3. Review Coverage Options: Ensure your policy provides adequate protection without unnecessary extras.
4. Consider Smaller Insurers: Smaller companies might offer better rates and customer service.
5. Shop Strategically: Your driving record affects rates, so timing your policy shopping can lead to better deals.

Why Is Car Insurance So Expensive?

The cost of car insurance has risen, with a notable 20% increase reported in June 2024 compared to the previous year. Factors contributing to these rising costs include inflation, economic conditions, and individual factors such as age, location, driving history, and the type of vehicle insured.

By understanding these factors and shopping wisely, you can find a car insurance policy that offers both value and protection. For more detailed information, check out our full reviews of each insurer and see what savings you could unlock.