10 Top Car Insurance Companies of 2023

While price is an important factor when choosing car insurance, there are other aspects to consider beyond premiums. In addition to analyzing rates, we conducted a survey with over 9,500 consumers to determine their satisfaction with their car insurance providers. Combining this feedback with data from other sources, we have identified the top 10 insurers for 2023.

Key Points:

1. USAA, the company that ranked first on last year's list, retains the top spot in our 2023 rating of the best car insurance companies.

2. American Family, ranked second overall this year, has risen eight places compared to 2022.

3. State Farm is ranked third, while Geico and Nationwide are tied for fourth place.

Which Car Insurance Company is the Best?

USAA takes the lead in our ranking of the Best Car Insurance Companies of 2023. However, it's important to note that the company's policies are exclusively available to the military community, including active-duty personnel, veterans, and their spouses and children.

For those who don't qualify for a USAA policy, our analysis indicates that American Family is the best overall option for car insurance. It ranks second in our rating of the best car insurance companies and never falls below third place in any of the subcategories we researched. State Farm ranks third in our overall rating, while Geico and Nationwide are tied for fourth place.

Our rating aims to assist consumers in finding a policy that suits their needs based on their priorities when it comes to an auto insurer. We examined prices to provide motorists with a general idea of what insurers charge based on factors such as driving history, age, credit history, and desired level of coverage.

We also asked consumers to evaluate these companies in categories such as customer service, claims handling, and customer loyalty, to help drivers choose an insurance experience that aligns with their preferences.

While our rating is a useful starting point, we advise consumers to shop around, explore what multiple insurers have to offer, and compare quotes to ensure they select the right insurance policy.

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1. USAA

USAA is the No. 1 insurer in our rating of the Best Car Insurance Companies of 2023. Our results placed the company at No. 1 in many subcategories we looked at, including Customer Service, Most Likely to be Recommended, and Most Likely to Be Renewed. USAA finished second to American Family in the Claims Handling scores, and is tied with American Family in the Customer Loyalty subcategory.

The company also finished No. 1 in our rating of Cheap Car Insurance Companies, with low average rates in multiple categories.

USAA car insurance is only available to members of the military community, so most consumers will want to learn more about what other insurers have to offer.

2. American Family

American Family, which finished No. 2 in our overall rating of the best car insurers with a score of 4.3 out of 5, is at or near the top in most of the subcategories we included. The company is tied for No. 1 in Customer Loyalty, and stands alone at the top of the rating for Claims Handling. In all other subcategories, American Family finished either second or third. The company falls squarely in the midrange of insurers in terms of pricing, finishing at No. 5 overall in our rating of Cheap Car Insurance Companies.

American Family showed the biggest improvement in the ratings over last year, moving up eight places to No. 2 overall.

3. State Farm

State Farm, with a score of 4.2, finished at No. 3 in our rating. The company performed well in all of the subcategories we covered in our ranking, including being rated No. 2 in Best Car Insurance Companies for Seniors. State Farm ties with American Family at No. 2 for Customer Service, and is in a four-way tie at No. 3 in the Claims Handling subcategory.

State Farm’s rates are the third-lowest we found overall, and the company performed well in multiple rate-specific categories, including the cost of insurance for teen drivers and seniors.

It’s one of the cheapest companies on average for drivers after a speeding ticket or an accident, and the cheapest after a DUI.

4. Geico

Geico, with a score of 4.1, is tied with Nationwide for the fourth spot in our rating of the Best Car Insurance Companies of 2023. This is one position lower than last year when the company was tied for third place. Geico performed well in every subcategory, with top-5 scores for Customer Service, Claims Handling, and Customer Loyalty.

Geico is also known for its affordability. It ranked second overall, following USAA, in our rating of Cheap Car Insurance Companies, offering competitive rates in various categories, including low premiums for teen drivers and minimum coverage seekers.

5. Nationwide

Nationwide is tied with Geico at fourth place in our rating, with an overall score of 4.1. The company shares fourth place in the Customer Service subcategory, ties for third place in Claims Handling, and ranks sixth in Customer Loyalty. Nationwide also ranks in the top five for Most Likely to be Recommended and Most Likely to be Renewed.

In our rating of Cheap Car Insurance Companies, Nationwide falls in the middle at sixth place overall.

6. Farmers

Farmers is tied at sixth place in our overall rating of the Best Car Insurance Companies of 2023, alongside Travelers, Allstate, and AAA. The company is tied for fourth place in the Customer Service subcategory, third place in Claims Handling, and sixth place in the Customer Loyalty subcategory. However, Farmers ranks last in the Most Likely to be Renewed subcategory.

On average, Farmers tends to offer higher rates compared to other insurers in our study and placed ninth in our most recent rating of cheap car insurance companies.

7. Travelers

Travelers maintains its position from last year, tied for sixth place in our rating alongside four other insurers. The highest rank Travelers achieved in any of the subcategories is a tie for fourth place in Customer Service. It placed seventh in Claims Handling, sixth in Customer Loyalty, and last in the Most Likely to be Recommended subcategory.

Travelers offers reasonable rates overall, with premiums below the national average in all categories we examined, including prices for teen drivers, young adult drivers, and senior drivers, as well as policies following a ticket or DUI.

8. Allstate

Allstate ranks sixth in both Customer Loyalty and Most Likely to be Recommended, marking its highest positions in any of our subcategories. Overall, it places sixth among the Best Car Insurance Companies of 2023. It ranks seventh or lower in the subcategories of Customer Service, Claims Handling, and Most Likely to be Renewed.

Allstate is among the more expensive insurers in our rating, with premiums higher than the national average in all pricing categories we studied, including for teen and senior drivers, as well as prices following a speeding ticket or an accident. It occupies the tenth position in our rating of cheap car insurance companies.

9. AAA

AAA ranks tenth in our rating of the best car insurance companies. While it places tenth in both the Customer Service and Claims Handling subcategories, it ties for fourth place in Customer Loyalty and ranks fifth in Most Likely to be Renewed. It also ranks sixth in Most Likely to be Recommended.

Overall, AAA is tied for sixth place among the Best Car Insurance Companies of 2023.

Sample rates for AAA car insurance were higher than the national average in several categories.

10. Progressive

Progressive occupies the tenth spot in our rating of the best car insurance companies. It ranks tenth in the Customer Loyalty subcategory and falls in the bottom half of the ratings for other subcategories. Progressive ranks eighth for Customer Service, seventh for Claims Handling, and ninth for Most Likely to be Recommended.

Our analysis also revealed that Progressive's rates are higher than the national average in various categories.

Best for Customer Loyalty: USAA and American Family

American Family is the top-ranked insurer in the Claims Handling subcategory, scoring 4.3, narrowly surpassing USAA, which scored 4.2. A survey indicates that over 61% of American Family policyholders are completely satisfied with the ease of filing a claim, and 56% are completely satisfied with the resolution of their claims. Additionally, just under 52% of American Family customers expressed complete satisfaction with the status updates they received while their claims were in progress.

Following American Family and USAA, State Farm, Farmers, Geico, and Nationwide are tied for the third spot in this subcategory. Progressive, Travelers, and Allstate tie at No. 7, while AAA is ranked at No. 10.

In the Most Likely to be Recommended subcategory, USAA holds the top position, with American Family ranking second. The survey reveals that 63% of USAA policyholders who have not filed a claim are very likely to recommend the company to others seeking car insurance. Among USAA customers who have filed a claim, this number drops to approximately 59%. It should be noted that USAA exclusively sells car insurance to members of the military community, so individuals looking for insurance will need to explore policies from other companies.

For American Family, just over 40% of policyholders who have not filed a claim are very likely to recommend the insurer, while just over 62% of those who have filed a claim are very likely to offer a recommendation. Other companies that are likely to be recommended by their customers include State Farm, Nationwide, and Geico, which are tied for the third spot in this subcategory.

USAA and American Family also excel in the Most Likely to be Renewed subcategory. When asked if they would renew their policy with USAA, over 69% of customers who have not filed a claim responded as very likely to do so, according to the survey results. The numbers did not change significantly for policyholders who had filed a claim, with more than 66% describing themselves as very likely to renew. These results contribute to USAA's No. 1 rating in this subcategory. American Family ranks second in this subcategory, with approximately 65% of policyholders who haven't filed a claim being very likely to renew, and over 68% of those who have filed a claim expressing the same sentiment. Nationwide and State Farm are tied for the third spot, while Geico ranks fifth.

In the Customer Loyalty subcategory, USAA and American Family are tied for the top spot. Both companies performed well in the survey regarding the willingness of their policyholders to recommend them. USAA and American Family also secured the first and second positions, respectively, in the Most Likely to be Renewed subcategory. Nationwide and State Farm tied for the third spot, while Geico was rated fifth.

The average annual cost for car insurance is $1,547, as per the most recent premium analysis. However, individual car insurance prices vary based on several factors. These factors include your location, age, gender, type of car, driving record, and the type of coverage you choose. Minimum coverage is generally less expensive than high coverage. Another important factor that many drivers overlook is their credit rating. Insurers typically charge higher prices to customers with poor credit, while those with good credit may receive lower premiums. Discounts offered by insurers also provide opportunities for drivers to save. To find a premium that fits your budget and a policy that suits your needs, it is recommended to shop around and compare quotes from multiple insurers.

The amount of car insurance you need depends on various factors. State requirements play a crucial role in determining the minimum amount of liability coverage you must carry, as most states have laws in place regarding this. Some states may also require additional types of insurance, such as uninsured motorist coverage or personal injury protection (PIP). Additionally, if you have a loan or lease agreement for your vehicle, your lender or lessor may specify the amount of coverage you must carry. It is advisable to refer to your financing agreement for the exact requirements.

For more information on obtaining the right amount of car insurance, you can refer to the "How Much Car Insurance Do I Need?" guide.

Our Methodology: Discovering the Top Car Insurance Companies and Gathering Rate Data

U.S. News & World Report's methodology for finding the best car insurance companies and collecting rates is based on an unbiased approach. The 360 Reviews team conducted extensive research on over 31 car insurance companies and agencies, analyzed 10 third-party review sources, and surveyed 9,502 consumers who either opened a policy or filed a car insurance claim in the last five years. The survey covered various aspects such as satisfaction with filing a claim, customer service, communication regarding claim status, claim resolution, and overall value. Respondents were also asked if they would recommend the company and if they planned to renew their policy.

The 360 Reviews team follows strict guidelines and does not accept samples, gifts, or loans of products or services for review. Any sample products received for review purposes are donated after the review process. Additionally, there is a separate business team that has no influence over the team's methodology or recommendations.

To gather comparative insurance rates, U.S. News collaborated with Quadrant Information Services. Quadrant analyzed a report of insurance rates from the largest national car insurance companies and agencies in all 50 states. It is important to note that not every company operates in every state. Quadrant obtains publicly available rate data that car insurers file with state regulators.

The study rates are based on profiles of male and female drivers at ages 25, 35, and 60. The vehicles used for the analysis include the 2017 and 2022 Honda Civic, 2017 and 2022 Toyota RAV4, and 2017 and 2022 Ford F-150. The annual mileage ranges from 6,000 to 12,000. Three levels of car insurance coverage were considered, along with credit tiers categorized as good, fair, and poor. The calculations also took into account clean driving records, records with one accident, one speeding violation, or one DUI for certain driver archetypes.

The study rates presented are the mean rates for male and female drivers at ages 25, 35, and 60, driving 12,000 miles per year, with medium coverage, good credit, and a clean driving record. It is important to note that these rates are for comparative purposes only and should not be considered as "average" rates available from individual insurers. Car insurance rates are highly individualized and depend on various factors, so your rates may differ from those shown in the study.