Insuring your car has never been more expensive: According to the Department of Labor’s Consumer Price Index, average premiums for auto insurance jumped 16.5% between August 2023 and 2024.
But the right policy can save you hundreds a year, score you a lower deductible and even get you a hefty discount.
CNBC Select has picked the top auto insurance companies in 10 categories. (See our methodology for more on how we made our selections.)
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Geico auto coverage is available in all 50 states and the District of Columbia. It offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
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Best for availability: Geico
Geico Auto Insurance
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Cost
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Policy highlights
Geico auto coverage is available in all 50 states and the District of Columbia. It offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
Pros
- Low average rates
- Can buy and manage policies online
- Available nationwide
Cons
- No gap insurance or rideshare insurance
- Fewer branches for in-person services
- Pay-per-mile car insurance not available
Who’s this for? Geico has more than 300 independent offices across the U.S. and is licensed to issue auto insurance in all 50 states and Washington, D.C.
Standout benefits: In addition to some of the lowest rates for both liability-only and comprehensive coverage, Geico offers numerous discounts — including for good driving, insuring multiple vehicles and for bundling.
Average rate for full coverage: $2,031 per year
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Best for affordability: Travelers
Travelers Auto Insurance
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Cost
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Policy highlights
Travelers auto insurance policies are affordable and backed by the sixth largest company for car insurance by market share according to the NAIC. The company also offers a number of discounts to customers, including discounts for bundling, owning a hybrid or electric car, and good student discounts.
Pros
- Sixth largest auto insurer in the U.S. by market share
- Many discounts available
- Low average prices compared to other companies we reviewed
Cons
- Not all discounts available in every state
- Not available in all states
- Below average J.D. Power customer satisfaction score
Who’s this for? If you’re budget-minded, Travelers’ rates for car insurance are nearly half the national average. Premiums for drivers with poor credit, who typically pay more, are also lower than with the competition.
Standout benefits: Travelers offers gap insurance, which some competitors don’t. It also provides several uncommon discounts, including for homeowners, new cars and electric vehicles.
Average rate for full coverage: $1,811 per year
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Best for bad credit: Dairyland
Dairyland Auto Insurance
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Cost
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Policy highlights
Founded in 1953, Dairyland offers auto insurance in 38 states and specializes in high-risk drivers. Offerings include non-owner car insurance policies, coverage for motorcycles and off-road vehicles and limited Mexico coverage on all California policies.
Pros
- Insures high-risk drivers
- Offers coverage for motorcycles and off-road vehicles
- Limited Mexico coverage included with California policies
- Lower volume of complaints
Cons
- Not available in all 50 states
- Higher-than-average rates
- Limited number of discounts
Who’s this for? Dairyland specializes in insuring high-risk drivers, including those with bad credit (FICO score below 580), who pay an average of 118% more annually than those with excellent credit (800 or above).
Standout benefits: Dairyland provides non-owner coverage and issues SR-22 certificates. In addition, all California policies come with limited coverage for travel in Mexico.
Average premium for full coverage: Unavailable
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Best for customer satisfaction: Erie Insurance
Erie Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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Policy highlights
Erie offers full and minimum coverage auto insurance, with accident forgiveness and coverage for pets standard with comprehensive or collision policies. Erie Auto Plus includes increased coverage limits, a diminishing deductible and a death benefit of up to $10,000. Other add-ons include roadside assistance, rate lock and rideshare insurance.
Pros
- Affordable premiums
- High customer satisfaction scores from J.D. Power
- Quotes available online
Cons
- Only available in 12 states and Washington, D.C.
- Can’t buy a policy online
- Fewer discounts than competitors
Best for infrequent drivers: Nationwide
Nationwide Auto Insurance
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Cost
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Policy highlights
Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you.
Pros
- Available in 46 states and the District of Columbia
- Lowest average premiums for full coverage
- Quotes available online
Cons
- High average premium for minimum coverage
- Not available in all states
- Lower than average scores from J.D. Power’s customer satisfaction survey
Who’s this for? Instead of an annual premium Nationwide’s pay-per-mile program, SmartMiles, comes with. low flat rate and per-mile fee. If you work from home or otherwise don’t drive much, that can mean an average savings of $320 a year.
Standout benefits: SmartMiles’ base rate and per-mile costs don’t fluctuate unless you make changes to your policy.
Average premium for full coverage: $1,856 per year
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Best for liability-only insurance: Auto-Owners
Auto-Owners Insurance
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Cost
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Policy highlights
Auto-Owners offers affordable premiums with high customer satisfaction ratings. There are 12 different types of discounts available, as well as various other types of insurance besides auto.
Pros
- Offers at-fault accident forgiveness as an add-on
- High customer satisfaction scores from J.D. Power
- Low NAIC complaint index score
Cons
- Only available in 26 states
- Quotes must be obtained through an agent
- Claims must be filed through an agent
Best for bundling: State Farm
State Farm Auto Insurance
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Cost
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Policy highlights
The largest auto insurer in the U.S., State Farm has an excellent reputation for customer satisfaction and offers over a dozen discounts, including for safe driving, bundling and good students.
Pros
- High customer satisfaction ratings
- Available in most states
- Affordable rates for teen drivers
Cons
- Doesn’t offer gap insurance
- Accident forgiveness requires nine years without an at-fault accident.
Who’s this for? Combining your State Farm auto policy with home, condo, renters or life insurance from the company can save you up to 17%.
Standout benefits: Drivers who insure two or more vehicles with State Farm could save as much as 20%.
Average premium for full coverage: $2,591 per year
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Best for discounts: American Family
American Family Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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Policy highlights
American Family offers affordable car insurance with more than a dozen discounts to further lower your premium. While its not available nationwide, American Family offers quotes online or through an agent, depending on your preference.
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App available
Pros
- Low NAIC complaint index
- Offers gap coverage
- More than 15 total discounts available
- Ability to bundle home and auto insurance for a discount up to 23%
Cons
- Only available in 19 states
- Low customer review BBB rating
- Slightly higher prices than some car insurance competitors
Who’s this for? American Family has 18 discounts that can lower your auto insurance premiums, including for having a clean driving record, paying your premium in full and for volunteering in your community.
Standout benefits: Safe drivers can save up to 20%, while bundling American Family auto and home insurance can save you as much as 23%.
Average rate for full coverage: $2,421 per year
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Best for high-risk drivers: Progressive
Progressive Auto Insurance
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Cost
The best way to estimate your costs is to request a quote.
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App available
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Policy highlights
Progressive offers several lines of insurance to allow for bundling and convenient tools to help you keep your policy within your budget.
Pros
- Available in all 50 states
- Low rates for drivers with DUIs
- Non-owner car insurance and SR-22 certificates available
- Offers vanishing deductible as well as accident forgiveness
Cons
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rates going up
Who’s this for? Progressive is one of our top picks for high-risk drivers, thanks to its lower-than-average rates for customers with marks on their record. (The average rate for full coverage after a DUI is $3,075 with Progressive, compared to $4,532 nationwide.)
Standout benefits: Progressive offers three tiers of accident forgiveness and will issue an SR-22 certificate if you need your license reinstated.
Average rate for full coverage: $2,018 per year
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Best for military members and veterans: USAA
USAA Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
USAA auto insurance is available to service members, veterans and their families in all 50 states and Washington D.C.. In addition to low rates, USAA offers discounts if you are deployed or store your vehicle on base.
Pros
- Cheapest insurer for liability-only coverage
- Stellar customer satisfaction scores
- Track record of financial strength
- Available in all 50 states
Cons
- Limited to military families and veterans
- No brick-and-mortar offices
- Customer service is not available 24/7
- Safe-driver discount not available in every state
Who’s this for? USAA’s auto insurance is available exclusively to current and former service members and their families, with discounts if you store your vehicle on-base or are deployed and not driving your car.
Standout benefits: Customers who bundle home and auto with USAA can save up to 15%. There are also discounts for having a new car, for taking over your parent’s policy and for remaining a customer for at least three years.
Average rate for full coverage: $1,962 per year
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More on our top car insurance companies
Geico
A wholly owned subsidiary of Berkshire Hathaway, Geico is the third largest auto insurance provider in the U.S., with $39.8 billion in direct premiums written in 2023. Policies are sold online or through local Geico field representatives.
NAIC complaint index: Fewer than expected
J.D. Power rating: Below average
Nationwide availability: Available in all 50 U.S. states and the District of Columbia
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Travelers
In business since 1864, Travelers is one of the largest auto insurance providers in the U.S., with direct premiums totaling nearly $6.5 billion in 2023. Policies are sold by more than 15,000 independent agents nationwide.
NAIC complaint index: Fewer than expected
J.D. Power rating: Below average
Nationwide availability: Available in all U.S. states except Alaska, Hawaii, Louisiana, Michigan, North Dakota, South Dakota, West Virginia and Wyoming.
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Dairyland
Headquartered in Stevens Point, Wisconsin, Dairyland has been insuring drivers since 1953 and specializes in motorists with poor driving records and low credit scores. It is a subsidiary of Sentry Insurance, which also offers homeowners, life and business insurance policies.
NAIC complaint index: Greater than expected
J.D. Power rating: Not rated
States where available: Available in all U.S. states except Louisiana, Massachusetts, Michigan, Montana, New Hampshire, New Jersey, New York, North Dakota, Oklahoma and Rhode Island
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Erie
Available in just 12 states and Washington D.C, Erie has built a solid reputation for excellent service. It came in second in J.D. Power’s claims satisfaction survey in 2023 and took the top spot for overall customer satisfaction in two regions.
NAIC complaint index: Fewer than expected
J.D. Power rating: Above average
Nationwide availability: Available in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, Washington, D.C., West Virginia and Wisconsin
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State Farm
NAIC complaint index: Slightly more than expected
J.D. Power rating: Above average
Nationwide availability: Available in all U.S. states except Massachusetts and Rhode Island
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Nationwide
Founded as the Farm Bureau Mutual Automobile Insurance Company in 1926, Nationwide wrote nearly $5.5 billion in auto insurance premiums in 2023, making it the country’s 10th largest provider.
NAIC complaint index: Fewer than expected
J.D. Power rating: Below average
Nationwide availability: SmartMiles by Nationwide is available in all U.S. states except for Alaska, Hawaii, Louisiana, North Carolina, Oklahoma and New York.
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Auto-Owners
NAIC complaint index: Fewer than expected
J.D. Power rating: Above average
Nationwide availability: Available in Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia and Wisconsin
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American Family
NAIC complaint index: Fewer than expected
J.D. Power rating: Above average
Nationwide availability: Available in Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington and Wisconsin
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Progressive
NAIC complaint index: Fewer than expected
J.D. Power rating: Below average
Nationwide availability: Available in all 50 U.S. states and the District of Columbia
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USAA
NAIC complaint index: Higher than expected
J.D. Power rating: Above average
Nationwide availability: Available in all 50 U.S. states and the District of Columbia
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How car insurance works
Car insurance covers damage, theft and bodily injury in the event of a collision or other accident. You pay a monthly or biannual premium based on the policy you’ve selected and, if you need to be reimbursed for repairs or other bills, file a claim with your insurance company.
Filing a claim can lead to higher premiums, so do it cautiously. Car insurance companies typically offer lower rates and discounts to drivers with clean records, as they’re considered less likely to file a claim in the future.
Different types of car insurance
While there are many available add-ons, there are five basic types of car insurance coverage. At a minimum you’ll need liability insurance to drive in most states, though many people add collision and comprehensive coverage — the three combined are referred to as “full coverage.”
- Liability coverage: Pays for property damage and bodily injury when you are found responsible for a collision. It is required in most of the country, though the amount differs by state.
- Collision coverage: Pays for repairs stemming from a collision with an object, like a house or a mailbox, rather than another vehicle.
- Comprehensive coverage: Protects you in case of damages caused by a non-vehicular incident, like theft, vandalism or weather-related damage.
- Personal injury protection: Pays for your medical expenses and lost income after an accident.
- Uninsured/underinsured motorist coverage: Kicks in if you are involved in an accident with another driver who has no insurance or insufficient coverage.
Average cost of car insurance
The cost of car insurance varies considerably depending on where you live. Rates are typically higher in no-fault states like New York and Michigan, for example.
Average car insurance costs by state
| State | Average annual cost for full coverage | Average annual cost for minimum coverage |
|---|---|---|
| Alabama | $2,047 | $546 |
| Alaska | $2,249 | $465 |
| Arizona | $2,727 | $851 |
| Arkansas | $2,302 | $464 |
| California | $2,645 | $631 |
| Colorado | $3,022 | $551 |
| Connecticut | $2,470 | $945 |
| Delaware | $2,536 | $918 |
| Florida | $3,450 | $1,055 |
| Georgia | $2,613 | $887 |
| Hawaii | $1,548 | $376 |
| Idaho | $1,326 | $340 |
| Illinois | $2,134 | $682 |
| Indiana | $1,683 | $424 |
| Iowa | $1,827 | $317 |
| Kansas | $2,528 | $589 |
| Kentucky | $2,658 | $762 |
| Louisiana | $3,683 | $953 |
| Maine | $1,528 | $393 |
| Maryland | $2,619 | $942 |
| Massachusetts | $1,725 | $456 |
| Michigan | $2,976 | $844 |
| Minnesota | $2,447 | $679 |
| Mississippi | $2,206 | $502 |
| Missouri | $2,710 | $687 |
| Montana | $2,323 | $376 |
| Nebraska | $2,358 | $579 |
| Nevada | $3,111 | $987 |
| New Hampshire | $1,640 | $443 |
| New Jersey | $2,458 | $1,008 |
| New Mexico | $2,290 | $554 |
| New York | $3,757 | $1,553 |
| North Carolina | $2,057 | $611 |
| North Dakota | $1,903 | $388 |
| Ohio | $1,492 | $398 |
| Oklahoma | $2,713 | $537 |
| Oregon | $1,939 | $771 |
| Pennsylvania | $2,461 | $521 |
| Rhode Island | $2,713 | $819 |
| South Carolina | $1,847 | $587 |
| South Dakota | $2,241 | $343 |
| Tennessee | $2,003 | $485 |
| Texas | $2,429 | $696 |
| Utah | $2,088 | $785 |
| Vermont | $1,396 | $301 |
| Virginia | $2,121 | $688 |
| Washington | $1,702 | $502 |
| West Virginia | $2,083 | $538 |
| Wisconsin | $1,811 | $422 |
| Wyoming | $1,709 | $260 |
| District of Columbia | $2,440 | $768 |
Source: Rates are from Bankrate and are current as of September 2024.
What factors affect car insurance rates?
- The amount of coverage: Full coverage is more expensive than a liability-only policy. A low deductible can also raise the price of your premiums, as can buying add-ons like gap insurance and roadside assistance.
- Your location: Where you live greatly determines how much you’ll pay and, in many states, so will your age, gender and marital status,
- Your credit history: In all but a handful of states, insurance companies can use your credit-based insurance score to tabulate your premium.
- Your driving history: Have an at-fault accident, speeding ticket or DUI on your record makes you a high-risk driver and usually results in pricier premiums.
- Car make, model and features: A six-figure sports car will cost more to insure than a used sedan. While replacement costs can factor into this difference, discounts for safety features can also play a part.
FAQs
How much does car insurance cost?
The average cost of full coverage car insurance is $2,348 per year., according to Bankrate data, and $639 a year for minimum coverage (or liability-only) insurance.
Can you get a refund on your car insurance?
Most car insurance is paid on a monthly or bi-annual basis. In most cases, if you cancel a policy you’ve already paid for, you’ll get a pro-rated refund.
How do car insurance companies pay out claims?
After you file a claim, your insurer will review your documentation and investigate the circumstances of the claim. Depending on the provider, they may either issue you a check directly or send payment to the repair shop or medical provider.
Who is considered a high-risk driver?
You may be considered a high-risk driver if you have a previous at-fault accident, a history of traffic violations, a DUI or a large number of points on your license. You may also be considered a high-risk driver because of other factors, like being a new driver or having poor credit.
What is the actual cash value of my car?
If your vehicle is stolen or totaled, your insurance companies will typically pay out the car’s actual cash value (ACV), or what it’s worth minus depreciation. Standard gap insurance can make sure the balance of your car loan is paid off but if you want enough to buy a new vehicle, you’ll need car replacement assistance coverage, which can get you as much as 120% of the car’s ACV.
What is the cheapest car insurance company?
According to our analysis, the major auto insurance companies with the lowest average premiums are USAA, Auto-Owners and Geico. Your individual rate will vary, however, depending on where you live, your driving record and other factors.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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Our methodology
We reviewed customer satisfaction scores from J.D. Power, the Better Business Bureau and the National Association of Insurance Commissioners, as well as financial strength ratings from A.M. Best.
Information on average annual premiums is based on Bankrate analysis of Quadrant Information Services data for a 40-year-old driver with a clean driving record and good credit, driving a 2020 Toyota Camry five days a week with the following coverage:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
After reviewing these features, we sorted our recommendations by the best for affordability, best for availability, best for infrequent drivers, best for bad credit, best for customer satisfaction, best for bundling, best for discounts, best for liability-only coverage, best for high-risk drivers and best for military members and veterans.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Premiums and policy structures cited for car insurance are subject to change.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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