The best affordable car insurance companies for 2021
Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. Terms apply to offers listed on this page. Read our editorial standards.
Table of Contents: Masthead Sticky
Here are the best cheap car insurance companies for 2021:
| Category | Winner |
| Best affordable | GEICO |
| Best affordable runner-up | Erie Insurance* |
| Best for military | USAA** |
| Best for bad credit | GEICO |
| Best for DUI | State Farm |
| Best for teen drivers | Erie Insurance |
| Best for senior drivers | Nationwide |
| Best for accidents on record | Erie Insurance |
| Best for full coverage | Erie Insurance |
* Erie Insurance is only available in the Mid-Atlantic, North Central, and Southeast regions of the US.
**Only available to active duty military, veterans, and their families.
State law requires minimum liability insurance and requirements vary by state. Insurance costs can be influenced by your age, gender, credit score, driving history, and much more.
To get the best price on car insurance coverage, you’ll need to shop around for comparison quotes to find the best price for you. This list should be used as a starting point to explore a wide variety of your options. Our state auto guides give more detailed information.
Best car insurance for affordable coverage overall: GEICO
Runner up: Erie Insurance
Best car insurance for military families: USAA
Best auto insurance for drivers with bad credit: GEICO
Best car insurance rates for drivers with a DUI: State Farm
Best car insurance company for teen drivers: Erie Insurance
Best car insurance for senior drivers: Nationwide
Best car insurance for a driver with an accident on their record: Erie Insurance
Best car insurance company for full coverage: Erie Insurance
Best-rated car insurance based on customer satisfaction
Customer satisfaction with car insurance providers may factor into your decision. Customer satisfaction focuses on five factors: (1) billing process and policy information; (2) claims; (3) interaction; (4) policy offerings; and (5) price. According to a J.D. Power survey, these are the top companies in each US region, based on customer rankings:
| Region | Best car insurance company |
| California | Wawanesa (for a second consecutive year) |
| Central states (AR, IA, MN, MO, NE, ND, OK, SD) | Shelter Insurance |
| Florida | State Farm |
| Mid-Atlantic (DE, DC, MD, NJ, PA, VA, WV) | NJM Insurance |
| New England (CT, Maine, MA, NH, RI, VT) | Amica Mutual (for a ninth consecutive year) |
| New York |
State Farm (for a second consecutive year) |
| North Central (IL, IN, MI, OH, WI) | |
| Northwest (ID, MT, OR, WA, WY) | |
| Southeast (AL, GA, KY, LA, MS, NC, SC, TN) |
Farm Bureau Insurance – TN (for a tenth consecutive year) |
| Southwest (AZ, CO, NV, NM, UT) |
American Family (for a second consecutive year) |
| Texas |
Texas Farm Bureau (for a tenth consecutive year) |
Best car insurance based on claims satisfaction
Claims satisfaction refers to how customers feel about how insurance companies settle claims and the claims process. Below are rankings from J.D. Power based on a 1,000-point scale.
- NJM Insurance (909)
- Amica Mutual (907)
- Auto-Owners (890) and USAA*
- The Hartford (888)
- MetLife (886)
- State Farm (881)
- Erie Insurance (880)
- Allstate (876)
- Nationwide (876)
- Farmers (872)
- Industry Average (872)
- Esurance (871)
- GEICO (871)
- Safeco (870)
- Liberty Mutual (867)
- Auto Club So. California (866)
- Country Financial (863)
- American Family (862)
- CSAA (862)
- Travelers (861)
- Auto Club Group (858)
- Progressive (856)
- Mercury (849)
- MAPFRE (844)
- National General (815)
*Because USAA is only available to military and veterans, it is not included in the official ranking. Had it been ranked, it would have tied for third place
Frequently asked questions
How did we come up with the best car insurance companies for 2021?
We narrowed our focus to the largest insurers, or those who wrote the most direct premiums in 2017 according to the National Association of Insurance Commissioners (NAIC) based on market share percentage. Insider compiled data on large insurance companies, including data on rates as reported by ValuePenguin, NerdWallet, The Zebra, and Insurance.com.
The data was then organized to fit five common coverage scenarios, including coverage for a young driver, a driver with poor credit, a driver with an accident on their driving record, a driver with a DUI, and someone seeking out extra coverage. We then compared the data to find the best auto insurance company for each situation.
To choose the best overall coverage, Insider collected overall average premium data, and compared the companies to find which was available nationwide, and which was the best priced. Data was also collected on customer satisfaction from J.D. Power and Associates.
How can I find the best car insurance rates for me?
Everyone’s car insurance rates will vary, as there are many factors that can go into pricing a premium. Every car insurance company will evaluate you on different factors and weigh those factors differently. The best way to find which car insurance company will help you save is to get quotes from several different insurance companies and compare them.
To find the best one for you out of the quotes you’ve obtained, compare the coverage types, limits, and deductible, or the amount you’ll pay out of pocket if you’re involved in an accident. The policy with the lowest price for coverage, the most coverage types and limits, and the lowest deductible is the best one for you.
Who offers the cheapest auto insurance?
According to Insider’s research, GEICO is offering the best cheap car insurance in 2021, with Erie Insurance as a close second in places where it’s available (see above for details). However, the car insurance company that’s cheapest for one person may not be for another. Before deciding on insurance policies, you’ll want to get four or five quotes from different insurance companies, just to make sure that you’re getting the best price for you.
What is the best-rated car insurance company for claims satisfaction?
According to J.D. Power and Associates data on customer satisfaction, NJM Insurance and Amica Mutual take the top spots. This ranking was based on responses from about 11,000 auto insurance customers who settled a claim between early 2018 and mid 2019.
Is Progressive or GEICO better?
There’s a lot of buzz around these two options, but in Insider’s calculations, GEICO comes out on top. Ranked highly for both value and customer service, GEICO tends to stand out. It won out in several of the scenarios above. While you’re shopping, it might be worth getting quotes from both and seeing which one stands out.
What’s the best car insurance option for students?
According to Insider’s research, Erie Insurance generally looked to be the best insurance for young adults and new drivers (in states where it’s available).
One of the best ways to save on car insurance for a teen or young adult driver is to join a family policy. On a family car insurance policy, your premiums will be about 20% lower than having a separate plan, according to reporting by The Balance. If joining a family plan is an option, it might be the best for a teen driver.
Related Content Module: Best Auto Insurance by State
This content was originally published here.
Responses