How to find the best car insurance for you

Last updated: November 28, 2022

Picking the best car insurance company can feel challenging, especially when there are so many different providers to choose from. Some insurance companies stand out for their affordable rates, others have great discounts, and some are highly rated for customer service.

Ultimately, finding the best car insurance for you involves evaluating multiple companies based on a variety of important factors. In this article, we’ll explain how to find the best car insurance company for your personal needs.

How do I choose a good insurance company?

Choosing a good car insurance company is strategic. While you might see insurance advertisements promising cheap rates or the best customer service, their promises might not hold up for you, and the first car insurance company you come across might not be the best option for your needs.

When shopping for auto insurance, it’s important to remember that the best car insurance company is different for every driver. This is due to many reasons, including:

Your coverage needs can be unique to you
Only you can decide how you prioritize different car insurance company features like ease of filing a claim or mobile app experience
Car insurance companies set their rates differently, and they charge different rates for different driver profiles

The most effective way to choose the best car insurance provider for you is to compare multiple companies using several criteria. Here are some of the features you should consider when researching the top car insurance companies.

Coverage types

When asking yourself, “What is the best car insurance,” you’ll want to consider your coverage needs. Do you need a standard minimum coverage or full coverage policy, or do you want to customize your policy with additional policies? Some of the best car insurance companies offer optional policies that add more protection, including accident forgiveness, new car replacement coverage, custom parts coverage, gap insurance, and umbrella insurance.

Discounts

Most car insurance companies offer discounts to help you save money on your premium. However, every provider offers different discounts, with varying savings potential. When researching car insurance companies, look for carriers that offer multiple discounts you can take advantage of. Some popular discounts include:

Good driver discounts
Smart student discounts
Policy bundling discounts
Pay-in-full discounts
Military discounts
Multi-vehicle discounts

Online tools and mobile app

Car insurance companies that offer an online customer portal or mobile app make it easier to manage your policy on the go, make payments, view your ID cards, and even file claims. If you value having these tools, narrow down your search to only include car insurance companies that have good online and mobile capabilities. You should also consider insurance companies that offer customer service via live chat, which can be more convenient if you need to reach an agent quickly.

Popular insurers in your state

Another factor to consider when choosing the best car insurance is to look at which carriers are popular in your state. You will likely find some national company names you recognize, but you might also discover some regional players that specialize in insurance in your state.

See the best car insurance in your state

Find my state

Third-party ratings

Not all car insurance companies are created equal. Before you choose an insurance company, it’s a good idea to look at its third-party ratings. J.D. Power’s 2022 U.S. Auto Insurance Study is a great tool for this. In the study, J.D. Power ranks insurers in every region of the country based on overall customer satisfaction. Companies that are rated above average receive excellent reviews from current customers based on criteria like billing, claims, agent interactions, price, and policy offerings.

In addition to customer satisfaction ratings from J.D. Power, you can also look at claims satisfaction ratings from J.D. Power and AM Best scores for financial strength. Companies with excellent financial strength (an A- grade or above) have demonstrated their ability to pay claims and meet other policyholder obligations.

Premiums

Price is of course one of the biggest factors that set insurance companies apart. There are many variables that affect the cost of your car insurance, including your location, age, credit score, driving history, and insurance provider.

You may find that two car insurance companies in your state charge very different rates for the same type and amount of coverage. Because of that, it’s important to get quotes from multiple companies. Comparing car insurance quotes is the easiest way to see which car insurance company can offer you the lowest rate for the policy you want.

What is the best car insurance company?

There is no single best car insurance company on the market because every driver has different insurance needs. Some drivers want the lowest rates, some want the best discounts, and others want the best customer service. Every car insurance company has its unique pros and cons, which is why it’s important to compare a few providers in your area.

Ultimately, the best car insurance company is the one that provides the coverage you need at a price you can afford and will be reliable should you ever need to use your insurance.

To simplify your car insurance shopping experience, start by taking our 30-second quiz to compare your best matches. You’ll input some basic information, like your zip code and age, and we’ll show you which car insurance companies in your area might be a good fit. From there, you can get quotes and compare them to find your best match.