Best car insurance companies of May 2025

Car insurance is a big expense for most Americans: A full coverage policy averaged $2,685 a year in April 2025 — up from an average of $2,500 a year in 2024.

However, the right insurer can save you hundreds of dollars a year in premiums, score you a lower deductible and even get you a hefty discount.

CNBC Select has picked the top car insurance companies for affordability, customer satisfaction and many other categories. (See our methodology for more on how we made our selections.)

Average rates based on Bankrate analysis of data from Quadrant Information Services.

Who's this for? If you're budget-minded,Travelers' rates are nearly half the national average. You can shave even more off your bill with discounts for bundling, safe drivers, good students, being a loyal customer, owning your home and even driving an electric or hybrid vehicle.

Standout benefits: Travelers offers gap insurance, which some competitors don't. And enrolling in Travelers' IntelliDrive telematics program can save you up to 30% if you practice safe driving habits.

Average rate for full coverage: $2,121 per year

Who's this for? The second-largest writer of private auto insurance in the U.S., Geico issues policies in all 50 statesand Washington, D.C. In addition to an easy-to-use online interface, there are more than 300 independent offices nationwide for in-person assistance.

Standout benefits: Geico offers mechanical breakdown insurance, which covers repairs to parts after a manufacturer's warranty expires.

Average rate for full coverage: $2,165 per year

Who's this for? Dairyland specializes in non-standard auto insurance for high-risk drivers, whether they have multiple accidents, DUIs or bad credit.

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 rate for full coverage: Not available

Who's this for? Erie is a great choice for drivers who prioritize good service: It topped J.D. Power's 2024 customer satisfaction survey in several regions and came in second for satisfaction with the claims process.

Standout benefits: Even if you file a claim, Erie's Rate Lock^® option can keep your premiums from rising — as long as you don't make a change to your policy.

Average rate for full coverage: $2,192 a year

Who's this for? Older drivers pay more for insurance, but Nationwide has some of the lowest rates on the market for seniors. If you're over 55, you can save an additional 5% for completing an approved defensive driving course.

Standout benefits: Instead of annual premiums, SmartMiles, Nationwide's pay-per-mile program, comes with a low flat rate and a per-mile fee. If you're retired, work from home or otherwise don't drive much, Nationwide says you can save an average of $320 a year.

Average rate for full coverage: $1,947 a year

Who's this for? Auto-Owners is one of the least expensive options for liability insurance, which only covers someone else's injuries or property damage and is the minimum amount of coverage required in most states to legally be on the road.

Standout benefits: Auto-Owners offers accident forgiveness and useful add-ons like gap insurance and additional expense coverage. We also named Auto-Owners one of the best insurers for young drivers and seniors.

Average rate for full coverage: $1,810 a year

Who's this for? State Farm has a superior track record for claims filing, ranking well above average on J.D. Power's Auto Claims Satisfaction Study for the past four years. Customers can file or check on a claim online, through the easy-to-use mobile app or by calling a State Farm representative 24/7.

Standout benefits: Have more than one car in your household? State Farm's multi-vehicle discount can save as much as 20%.

Average rate for full coverage: $2,910 a year

Who's this for? Bundling American Family auto and home insurance can save you as much as 23% off your premiums, one of the biggest multi-policy discounts we've seen.

Standout benefits: American Family has a host of other discounts, including for getting a quote early, paying your premium in full and volunteering in your community. Practicing safe driving habits can save you up to 20% off.

Average rate for full coverage: $2,818 per year

Who's this for? Progressive offers three tiers of accident forgiveness: In most states, your first claim of $500 or less won't impact your rates. If you remain accident-free for five years, even a larger accident won't raise your premiums. For added security, you can also purchase an accident forgiveness benefit when you enroll or renew and get one accident per policy period forgiven, regardless of size.

Standout benefits: For each policy period you go without an accident or violation, Progressive will deduct $100 from your deductible (up to $500). You can also add up to $5,000 in coverage to fix or replace custom accessories.

Average rate for full coverage: $2,347 per year

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: $2,049 per year

Depending on your policy, car insurance can cover damages, theft and bodily injury. Policyholders pay premiums monthly or biannually and are reimbursed for repairs or other bills relating to covered collisions or other incidents.

To be reimbursed you must file a claim with your insurance company. Filing a claim can lead to higher premiums, so do it cautiously. Insurers typically offer lower rates and discounts to drivers with clean records, as they're considered less likely to file a claim in the future. 

There are five basic types of car insurance coverage: 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 forproperty damageandbodily 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.

In April 2025, the average cost of car insurance was $2,685 a year for full coverage and $800 a year for minimum coverage.

Rates vary greatly by state, however, and premiums are typically higher in no-fault states like New York and Michigan.

Several factors influence the price of car insurance, some of which are under your control and some of which aren't.

• Policy type: 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 influences 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: Having 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.

If you're shopping for car insurance, consider the following criteria:

1. Availability

Not all insurers are licensed in every state or provide the same coverage or discounts nationwide. Be sure what you want is available in your region.

2. Coverage options

Make sure any provider you're considering has the options you want, whether that's gap insurance, accident forgiveness or rideshare insurance.

3. Customer satisfaction

J.D. Power's surveys provide insight into customers' sentiment in key areas, including the level of trust with their insurance company, the price for coverage, the representatives they deal with, the ease of doing business and the helpfulness of a company's digital channels. You can also see how a company is rated by the Better Business Bureau and the volume of complaints registered by the National Association of Insurance Commissioners.

4. Financial strength

It's important that any insurance company you're considering can pay out on claims. A.M. Best's financial strength scores indicate the likelihood a provider will be able to make good on its financial obligations. Look for companies that score an A or better.

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.

CNBC Select reviewed more than 30 top car insurance companies, focusing on cost, coverage, customer service, availability and online experience.

We incorporated customer satisfaction scores from J.D. Power, the National Association of Insurance Commissioners and the Better Business Bureau, 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 2022 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

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Our recommendations are organized by the best for affordability, for availability, best for seniors, for high-risk drivers, for customer satisfaction, best for bundling, best for accident forgiveness, best for liability coverage and best for military members and veterans.

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