Best car insurance companies of 2022

What type of car insurance is best for you?

There are six basic types of car insurance and depending on your vehicle and financial situation you may not need to carry them all. But it is vital that you are carrying the right coverages and coverage amounts for your specific needs.

“You want to be certain that the insurance policy limit is sufficient to provide you adequate coverage — even in the event of a serious accident,” says Dennis E. Sawan, a car insurance attorney at Sawan & Sawan. “In addition, we always recommend purchasing supplemental coverage to liability insurance — such as uninsured/underinsured motorist coverage. This coverage can save you thousands of dollars and is vital to having adequate coverage.”

Here is a quick breakdown of the various types of coverage:

Liability: Liability coverage will cover other people’s expenses if you are at fault in an accident. It will pay to repair their vehicle or other property you damaged as well as medical or legal bills if you injure another person or are sued due to the accident.

Liability does not pay to repair your vehicle or for your medical bills if you are injured in the accident. Liability coverage is required in almost every state in the country so you will have to carry this coverage. But state-required minimums are rarely enough in a serious accident. It is best to consult your agent on appropriate coverage levels.

Collision: Collision coverage will pay to repair your vehicle after an accident or collision. This is not a legally required coverage, but if you have a loan or lease on your vehicle your lender will require that you carry collision. If you are driving an older vehicle that you would replace instead of repair if you were in an accident, you should drop this coverage.

Comprehensive: Comprehensive insurance will pay for damage to your vehicle that is caused by something other than a collision. A few examples of coverage include theft, vandalism, glass and windshield damage, fire, accidents with animals, weather, or other acts of nature. Like collision, comprehensive insurance is not legally required but if you have a loan or lease on your vehicle your lender will require it. If you are driving an older vehicle that would be replaced after an accident there is no need to carry this insurance.

Personal Injury Protection: Personal injury protection, or PIP, will help cover medical expenses for you and any passengers in your vehicle if you are in an accident. PIP is currently required in about a dozen states.

Uninsured/Underinsured Motorist: This coverage will help cover the cost to repair or replace your vehicle if an uninsured or underinsured driver hits you. It is required in 20 states and Washington, D.C. Even if you live in a state that doesn’t require this coverage, you should consider it — there are plenty of uninsured drivers out on the road as well as people who are only carrying the state minimums.

Medical Payments: This coverage will help pay your medical expenses after an accident. It is only required in two states, Maine, and New Hampshire.

How to pick the car insurance company that’s right for you

• Determine your needs: Everyone has different insurance needs, and those needs can impact which insurance company is right for you. Your situation and insurance needs are extremely specific, says Marlon Moss, licensed agent with Learn and Serve. “Let’s say you’ve had a few incidents in the past like a DUI or multiple moving violations. Some insurance companies won’t want to take on that risk, while others are happy to offer a second chance at a reasonable rate,” Moss says.
  Determining your specific needs will help you narrow down the carriers you should consider as well as the different coverages you may need to carry.
• Find local insurers: As our ratings above show, some insurance companies only operate in certain states. Consider both national insurers (ones that operate in all states) as well as more regional insurance companies that write policies in your state. Look for insurers that offer the coverages and services you would use. “Choose a car insurance company that offers insurance coverages or perks that are important to you, such as 24/7 support or online claims. There are multiple companies that offer numerous benefits. Choose one that best fits your lifestyle and budget,” says Anthony Martin, founder and CEO of Choice Mutual.
• Check third-party reviews: You should check rankings and reviews of any insurance company you are considering. It also is important to check the financial strength of the insurers you are considering.
  The financial stability of the company is key, says Connor Brown, founder of After School Finance. “Checking the financial standing of your car insurance provider will ensure that you will be getting what you paid for in times of need. Since almost all information is readily available nowadays, spend 10-15 minutes of your day researching about the company you are eyeing,” Conner says. Check rankings from J.D. Power regarding customer service and claim satisfaction.
• Gather quotes: Be sure to compare apples to apples when it comes to coverage levels and deductibles.
• Decide and purchase policy: Once you have gotten a variety of quotes, decide which policy works best for you and purchase your new coverage. Don’t buy on price alone, be sure to consider an insurer’s financial strength, customer service and claims handling. A policy where it is difficult to file a claim is never a bargain.

How can you compare car insurance quotes?

Once you have several quotes, it’s time to compare them to find the best insurer for you. Here are a few tips on how to compare car insurance quotes:

• Review quotes for accuracy: Review all the quotes to make sure they are accurate. Check to make sure the coverages you want are on the policy as well as the correct deductibles. Review the drivers and vehicles listed on the quotes to make sure they are correct. If you find an error, be sure to get it correct so you are comparing accurate pricing.
• Check the discounts: Discounts vary by insurer so some discounts may not be available on every quote. Verify all the discounts on each quote and look for others that may be missing. As an example, if you are willing to receive your policy and bills via email you may qualify for a paperless discount.
• Compare rates: Insurers rate risk differently, which can result in dramatic differences in premium quotes. Compare the various premiums and decide which one offers the coverage you need at the price you can afford. Price should not be the only factor you consider. Claim satisfaction and customer services are important considerations as well.

More resources for best car insurance companies

• Best average premium (military): USAA
• Best average premium (non-military): Erie
• Best for discounts: The Auto Group
• Best for rates after an accident: American Family

Methodology

In order to make it easy for consumers to compare car insurance companies when shopping for coverage, Insure.com developed a scoring system that ranks insurers from 1 to 5 total points. The higher the score, the more competitive that company scored in each category. Insure.com’s editorial team reviewed J.D. Power’s U.S. Auto Claims Satisfaction Study, A.M. Best credit ratings, National Association of Insurance Commissioners’ complaint data, average premiums, the amount insurance companies raised rates for speeding tickets and at-fault accidents, and the amount insurers discounted car insurance when bundled with home-owners’ insurance. Our editorial team then gave each data point a weight to come up with our rankings.