If you own a vehicle, you need insurance. And many families own two! The cost of auto insurance is determined by a myriad of factors, such as age, driving history, vehicle type, credit rating, location, and gender. Let’s explore the top five auto insurance companies in the United States.
Geico
Best for: Drivers on a budget and those who can take advantage of membership or corporation discounts.
A 2020 customer satisfaction study ranked Geico as the best insurance company for overall shopping experience. 1 Consistently hailed as the most affordable auto insurance provider, Geico offers a range of discounts for risk-reducing car features such as airbags, anti-theft systems, anti-lock brakes and new vehicles. In many states, they also offer discounts for federal employees, military personnel, and students. Geico also partners with hundreds of organizations, clubs, and corporations to provide special discounts for members and employees.
Pros:
- Very affordable rates
- Discounts for automobile features
- Highly-rated digital experience
- Available across the nation
Cons:
- No option for replacement cost cover
- Limited optional coverage options
- Don’t have local agents in all areas
USAA
Best for: Current and retired military personnel and their families.
USAA offers auto insurance exclusively to active military personnel, veterans, and their families. For people who qualify, USAA is often the cheapest and best insurance option. Considerable discounts are available for drivers who keep their vehicles on a military base, in a garage. In many states, USAA also offers discounts to drivers who have taken defensive driving courses, achieved good grades in school, or are insuring a new vehicle.
Pros:
- Comprehensive range of coverage options
- Significant discounts
- Highly ranked digital experience
- Available across the nation
Cons:
- Not available to non-military families
Progressive
Best for: High-risk drivers and those with a poor driving history.
Progressive offer affordable insurance for drivers with a less-than-perfect driving history, or who are considered high-risk for other reasons. Discounts can be obtained by signing up to Progressive’s Snapshot program, which tailors your rate by taking into account your personal driving habits. The company also offer discounts for those who sign up online, choose to go paperless, bundle multiple policies, and who are under 18 years old.
Pros:
- An option to decrease cost by matching coverage to the state’s minimum requirements
- Suitable for people with previous driving offences
- Available across the nation
Cons:
- Ranked poorly for customer satisfaction compared to other large companies
- Expensive average premiums
Allstate
Best for: Drivers who are willing to pay more for exceptional service.
Allstate rank as one of the best auto insurance providers in most US regions, topping the leader board in Florida. 2 This company consistently outperforms the competition in all areas except price, as their premiums are among the most expensive. Allstate’s discounts are limited compared to many other insurers, though they do offer an early sign-up discount, a discount for new vehicles, and the opportunity to save up to 25% when you join their Drivewise program.
Pros:
- Exceptional customer service
- A wide range of policy options
- Many local agents
- Available across the nation
Cons:
- Limited discounts
- Higher than average premium cost
Erie
Best for: Younger drivers
Erie insurance offer some of the lowest rates in the United States for young and inexperienced drivers, even outperforming Geico, who are widely regarded as the most affordable company. 3 Erie allows customers to ‘lock’ their insurance rate so that it remains the same until the policy changes. Other discounts that they offer include accident forgiveness after three years, and a diminishing deductible scheme which reduces your deductible for each consecutive claim-free year.
Pros:
- Affordable rates for young drivers
- Roadside assistance is included on standard policies
- Ranked highly for claims satisfaction
Cons:
- Only available in 11 states and the District of Columbia
- Below average for digital experience
- No student discounts
Finding the right auto insurance provider
As the variation in price from one company to the next can be considerable, shopping around is the key to finding the best car insurance at the best price for your particular vehicle and circumstances. Be sure to seek out quotes and re-evaluate your options towards the end of each policy, as your current provider may no longer be the best insurer to meet your needs.