Car insurance is a safeguard and can lessen the financial burden of a car accident, but only if you have the proper coverage. The best car insurance will offer solid coverage without going overboard on premium rates.
Here are Business Insider's picks for the best car insurance in 2025.
Best Car Insurance Summary
- Best Customer Satisfaction: Amica Auto Insurance
- Best Affordable Coverage: GEICO Auto Insurance
- Best for Military: USAA Auto Insurance
- Best for Teen Drivers: State Farm Auto Insurance
- Best for Discounts: Farmers Auto Insurance
- Best for Teachers: Liberty Mutual Auto Insurance
- Best for Accident Forgiveness: Progressive Auto Insurance
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Best Car Insurance for Customer Satisfaction
862
A+
- Many discounts and options to bundle insurance policies
- high customer satisfaction according to JD Power's auto insurance study
- Long history in the insurance industry
- Not available in Hawaii
- May not provide the most competitive rates for higher risk drivers
- Ranks high in customer satisfaction
- Discount for students and vehicle safety
Amica Auto Insurance offers liability, collision, comprehensive, and other common types of car insurance.
Amica was the best car insurance for claims satisfaction, according to JD Power, factoring the experience of over 8,000 participants who had filed and settled an auto insurance claim within the previous six months. Amica also offers a mobile app to manage your insurance policy.
Best Car Insurance for Affordable Coverage
824
A++
- National presence with coverage in all 50 states
- Buyers can bundle with homeowners, renters, and other insurance products
- Offers some of the most competitive auto insurance rates
- Claims adjusters may be able to reduce or eliminate deductibles on some claims
- Customer satisfaction varies across products
- Claims process may be longer than some competitors based on customer reviews
GEICO offers auto, homeowners, and life insurance. It's been around since 1936 and generally offers some of the lowest rates. However, customer satisfaction may be an issue.
GEICO Auto Insurance- Discounts for safe driving, good grades, military, and more
- Available in all 50 states
GEICO Auto Insurance offers some of the best car insurance given its affordability. It also offers affordable premiums for people with poor credit.
GEICO also offers numerous discounts to drivers, including discounts for safety devices like anti-lock brakes, seat belt use, defensive driving courses, and being a good student. We also included GEICO in our guide to the best car insurance for seniors thanks to its discounts for older drivers.
The reviews we saw indicated GEICO's claims team was similarly quick, with a few mentions of adjusters who took additional steps to minimize or eliminate policyholders' out-of-pocket costs in a claim. From what we've gathered, rate hikes after an accident are smaller compared to its competitors.
Best Car Insurance for Military
871
A++
- Low rates for eligible buyers
- Coverage is available in all 50 states and Washington, DC
- Auto policies can be bundled with other insurance plans and financial products
- Only available to military, veterans, and their families.
- Claims may take longer than with some other providers
USAA Auto Insurance could be a great option if you're a current or former military member; no one else is eligible. Coverage is available in all 50 states, and premiums are generally affordable.
USAA Auto Insurance- USAA auto insurance is open to the military, veterans, and their families
- Discounts for safe driving and more
USAA Auto Insurance offers financial products and services to the military community, including competitive auto insurance. USAA would be the best car insurance outright if wasn't exclusive to military families. However, drivers who switched to USAA could save an average of $725 per year, according to USAA's website.
USAA offers standard car insurance options like liability, collision, comprehensive coverage, and uninsured and underinsured coverage. Optional coverage includes roadside assistance and rental reimbursement.
USAA also has plenty of discounts that only make sense for military members. For example, you could get up to a 15% discount when your vehicle is parked in a garage on base. You can also qualify for savings if you store your car or drive infrequently (which may apply to active duty military members being deployed). USAA also sells home, pet, and life insurance, to name a few. So bundling insurance products is extremely common.
USAA is unique in that whether you have a strong driving record or tickets and DUIs, USAA will still beat the next best car insurance quote.
Best Car Insurance for Teen Drivers
817
A++
- Nationwide presence
- High customer satisfaction and claims satisfaction rankings
- Discounts for bundling insurance products
- Quotes are only available through captive agents (who only quote State Farm)
- Pricing may be higher or products unavailable for high-risk drivers
- Rates may rise quickly for households with teen drivers
State Farm auto insurance offers coverage across all 50 states and Washington, DC. It has comprehensive, collision, and liability coverage along with less common options like rideshare coverage.
State FarmAlong with its liability, collision, and comprehensive coverage, State Farm Auto Insurance offers emergency roadside service, rideshare coverage, and other auto coverages. You can work with one of its many insurance agents nationwide to find the best car insurance policy for you and your teen driver.
State Farm has excellent options for teen drivers, specifically offering teen-specific discounts like a good student discount of up to 25%. Teens and drivers under 21 can also qualify for a driver's ed course discount could get another discount. There's also a unique option to save if your teen driver has a car at home but moved away for school through the Student Away at School Discount.
The Steer Clear discount offers young drivers below 25 up to a 15% discount with no at-fault accidents or moving violations in the previous three years. In addition, if you're willing to use State Farm's Drive Safe & Save app, you may qualify for up to a 30% discount.
Best Car Insurance for Discounts
828
A
- Diverse coverage options for qualified buyers
- Wide array of discounts and bundling options
- Available in all 50 states and Washington, DC
- Prices may not be competitive against many budget auto insurance companies
- Online quoting may not be as easy as some competitors
Farmers Auto Insurance is a full-service insurer offering home, life, business, and auto insurance with a long list of discounts compared to other insurance providers. Farmers offers up to 23 discounts when many of the best car insurance provides offer fewer than 12.
Policyholders paying premiums in full, senior drivers taking safe driving training, California drivers driving hybrids or electric vehicles, homeowners, good students, and young drivers are just a few groups enjoying discounts on auto insurance with Farmers. You also stand to save up to 20% by bundling plans or qualify for another discount insuring multiple vehicles.
Best Car Insurance for Teachers
831
A
- Coverage is available in all 50 states and Washington, DC
- Quotes can be obtained online or through a Liberty Mutual or broker agent
- Bundling discounts are available for interested buyers
- Discounts for young drivers may require more paperwork
- Rates may not be competitive for higher risk drivers
- Get up to 30% in savings with the RightTrack program
- Military members receive a discount
- Specialized coverage for teachers
- Required coverage for vehicles traveling to Mexico
Many teachers enjoy lower prices, more perks, and greater customer satisfaction with Liberty Mutual car insurance.
Perks include a $0 deductible on collision coverage if you get into an accident during school hours or while working (ex: a coach driving to another school for an after-school sports game). Teachers also enjoy up to $2,500 in personal property coverage if teaching items or school-owned items are damaged or stolen. In addition, Liberty Mutual automatically applies a $0 deductible when qualifying cars are vandalized on school property or when driving on school-specific business.
Unique among the best car insurance, Liberty Mutual also has a Liberty Mutual Deductible Fund®. You pay $30 toward the deductible fund each year, and Liberty Mutual drops your deductible by $100. If you file a claim, the fund can lower out-of-pocket costs.
Best Car Insurance for Accident Forgiveness
842
A+
- Coverage available in all 50 states
- Discounts for bundling insurance products with competitive rates
- Highly rated with JD Power and AM Best
- Rates may jump significantly after your first accident or for higher risk drivers
- Mixed reviews on claims and customer service on sites like Consumer Affairs and TrustPilot
A highly ranked and long-standing insurance company, Progressive offers auto, home, motorcycle, and other insurance across the United States.
Progressive Auto Insurance- Ranked #17 out of 18 in auto claims satisfaction
- Bundling, vehicle safety, and student driver discounts
- Low rates
- Name your price tool
Accidents happen, and the best car insurance can help. But rates inevitably rise after even a minor accident. Progressive Auto Insurance notably offers accident forgiveness to qualifying drivers. which many of the best car insurance provider lack. Its offers three accident forgiveness options:
- Small Accident Forgiveness. This option is available to new Progressive customers in most states through the Loyalty Rewards program and won't increase your premiums if your claim is at or below $500. This said, it's worth noting that when deciding whether to file a claim, you should always consider your deductible and how much your insurance will pay.
- Large Accident Forgiveness. Customers in most states may qualify for this option through the Loyalty Rewards program. Drivers eligible for Large Accident Forgiveness won't see increased rates even if claims exceed $500. You must be a Progressive customer for five consecutive years with no accident or moving violations within that time frame.
- Progressive Accident Forgiveness. You may qualify to have one accident forgiven in a specific period, but you can buy additional accident forgiveness through this program. In a sense, you are prepaying to keep your rates consistent if you're involved in an accident. Check if your state qualifies, as it's not available everywhere.
It also offers gap coverage, rental car reimbursement coverage, custom parts and equipment value, rideshare coverage, and roadside assistance. Progressive also has a Name Your Price option that allows you to state your desired price so you can find the best car insurance for your budget.
How to Choose the Best Car Insurance
Let's lay out some considerations when purchasing the best car insurance.
Coverage needs: The best car insurance will vary depending on your individual situation. You'll want to think about how often and how well you drive (be honest with yourself). You'll also want to think about the value of your car.
Generally, best car insurance practice is to go beyond state minimums and opt for full coverage, means buying the minimum liability, comprehensive, and collision car insurance. This ensures that the value of your car is covered against a wide array of instances.
Budget: Your budget will also play a large part in determining the right provider and policy. It may be beneficial to determine how much you can spend before you go about obtaining quotes. Some of the best car insurance quote systems, like Progressive's name-your-price tool, let you consider your budget before you start searching for quotes.
Discounts: Good car insurance doesn't necessarily have to be very expensive. Most of the best car insurance policies offer an array of discounts. You'll want to consider the discounts that your provider of choice offers and what you'll qualify for. Perhaps you already have homeowners or renters insurance with a provider, and you can secure a discount on your existing policies and your auto insurance if you bundle. Many of the best auto insurance offers an abundance of discount opportunities.
Customer service: You can assess how a car insurance provider treats its customers by looking at reviews on third party sites like the Better Business Bureau or Trustpilot. You can also look at JD Power auto insurance customer satisfaction ratings in the region you live/drive in. Most of the best car insurance options have rankings with JD Power, so you can stack them against each other within your region.
You should consider how you want to interact with and manage your auto insurance, be it online, over the phone with a live agent, or through a mobile app.
Why You Should Trust Us: How We Chose the Best Car Insurance
To determine the best auto insurance, we compare affordability, customer satisfaction, coverage options, optional coverage, benefits for policyholders, financial strength, and accessibility. No single factor accounts for everything consumers need; and the best car insurance for you may not be the best for another person.
We compared quotes, customer reviews, financial stability, and the provider's history. With all these factors combined, we rate numerous competitors to see which providers offer the best car insurance policies.
Auto insurance, in particular, is primarily run on a state and regional basis. In short, most auto insurance providers are only licensed in some states. As such, the best car insurance for a driver in New York may differ from the best option for similar drivers in California.
We use numerous sources to get an objective view of each provider. Our reviews are not sponsored by the providers being reviewed. Each review reflects our opinion based solely on the facts gathered. Reviews may be updated as facts change (for example, JD Power rankings are updated when new reports are released). However, requests from insurers that conflict with public-facing websites are not factored into our reviews.
Read more about how Business Insider rates the best car insurance.
FAQs
Who is State Farm's biggest auto insurance competitor?
State Farm's biggest auto insurance competitor is GEICO. State Farm has 16.84% of the U.S. auto insurance market share compared to GEICO's 14.05% market share.
What is the best car insurance if I'm a good driver?
The best car insurance for good drivers will have rewards program that rewards safe driving and a clean record. Liberty Mutual has a RightTrack program that saves drivers up to 30% for driving safely.
Which car insurance company has the highest customer satisfaction?
Amica car insurance has the highest customer satisfaction rating when it comes to auto insurance claims.
What type of car insurance is mandatory?
At a minimum, most drivers in the U.S. will need liability car insurance, which covers property damage you cause and any legal fees as a result of an accident.
How can I find the best price on car insurance?
You can find the best price on car insurance by comparing quotes and knowing what you want. You can also browse the best cheap car insurance.
