Best car insurance companies in 2025

When it comes to buying car insurance, it’s to get the best coverage for your money. However, with so many insurance companies claiming to offer affordable rates, trustworthy protection, and customer satisfaction, it can be hard to determine which truly is the best.

To help you find the best car insurance companies, Yahoo Finance evaluated auto plans from 13 companies. Below are the top four that stood out for cost, coverage choices, discounts, and overall value.

In this article:

American Family: 5 stars — Best auto insurance overall

The Hartford: 4.5 stars — Best for low costs

Farmers: 4 stars — Best for variety of coverage options

GEICO: 3.1 stars — Best for discounts

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Learn more: How does car insurance work? The basics explained

American Family provides the best auto insurance overall in our evaluation for its low rates and ample coverage options. It also gets high marks for customer satisfaction.

American Family is one of the few auto insurers we reviewed that offers pay-per-mile insurance for drivers who want to pay based on the number of miles they drive. Plus, it offers a discount for low-mileage drivers and numerous other ways to lower the cost of coverage.

American Family pros and cons

Pros

• Lowest average monthly premiums for full coverage and liability-only coverage

• Accident forgiveness coverage for first at-fault claim

• Diminishing deductible discount for each year without an accident

• New car replacement for brand-new vehicles that are totaled

• Pay-per-mile insurance for low-mileage drivers

Cons

Learn more: Cheapest car insurance in the U.S.

American Family provides 10 coverage types, including these options that few other insurers we reviewed offer:

• OEM coverage for the cost of using original manufacturer parts in repairs

• Road trip accident accommodations coverage for lodging if you’re in an accident 100 miles or more from home

• Pet injury coverage to help pay for medical expenses for pets injured in a car accident

• Coverage for rideshare service drivers

American Family offers 17 types of discounts. The following discounts stand out because other insurers typically don’t offer them:

• Discount for switching to American Family from another insurance company

• Loyalty discount for being a longtime customer

• Generational discount for having parents who are American Family customers

• Young volunteer discount for drivers under age 25 who do 40 hours of volunteer service a year

Learn more: Car insurance discounts: 17 ways to save

American Family complaints and customer satisfaction

American Family scored a 30 out of 30 for customer satisfaction in our analysis. Among insurers we reviewed, American Family had the best customer complaint score from the National Association of Insurance Commissioners (NAIC) and the best CRASH Network score for claims handling and payment practices.

It scored above average for customer satisfaction in the J.D. Power 2024 Auto Insurance Study. However, it scored very slightly below average in the J.D. Power 2024 U.S. Auto Claims Satisfaction Study.

The Hartford’s average monthly premiums for basic and comprehensive coverage are among the lowest in our analysis. AARP members, in particular, get special discounts and savings on auto insurance from The Hartford.

It offers a dozen coverage options and gets mostly high ratings for customer satisfaction. However, it offers fewer opportunities to score discounts than several other insurers in our analysis.

The Hartford pros and cons

Pros

Cons

The Hartford offers 12 types of coverage, including the options below that not all insurers provide:

• Disappearing deductible coverage if you remain accident-free for five years

• New car replacement for brand-new vehicles that are totaled

• Gap insurance to pay an auto loan if a car is totaled or stolen

Although most discounts and benefits are tailored to AARP members only, The Hartford still offers a total of nine discounts. Here are some of the unique offerings:

• 10% discount for AARP drivers who maintain a clean driving record for five years

• Hybrid and electric vehicle discounts

• Discount of up to 5% for taking a defensive driving course

Learn more: Car insurance rates are climbing. Here are 4 reasons why and 11 ways to save.

The Hartford complaints and customer satisfaction

The Hartford had a customer complaint score of 24 out of 30 in our analysis. Although it scored above average in J.D. Power’s claims satisfaction and customer satisfaction studies, it had more complaints lodged against it with NAIC than the industry average.

Farmers offers the most types of coverage of any auto insurance company in our review (along with Liberty Mutual). Its robust lineup includes accident forgiveness, new car replacement, and coverage for rideshare drivers. Farmers is one of the few insurers that provides coverage to pay for the repair or replacement of custom auto parts or equipment that are damaged.

Plus, Farmers’ rates for comprehensive coverage and basic coverage fall slightly below the average rates in our analysis.

Learn more: Farmers auto insurance review

Farmers pros and cons

Pros

• Numerous optional coverage options

• Below-average rates

• Declining deductible for being accident-free

• Covers custom parts and equipment

Cons

Learn more: 5 ways to recession-proof your car insurance

Farmers offers 17 types of coverage, which is the most of any insurer (tied with Liberty Mutual) in our analysis. Along with standard offerings such as liability, collision, and comprehensive, Farmers has several optional coverage types, such as:

• Gap insurance to pay an auto loan if a car is totaled or stolen

• Accident forgiveness coverage for first at-fault accident

• OEM coverage for the cost of using original manufacturer parts in repairs

• Custom parts and equipment coverage

• Coverage for rideshare service drivers

Learn more: Most common types of car insurance explained

Farmers has 18 discounts, which is more than most auto insurers reviewed by Yahoo Finance. In particular, Farmers offers several discounts that benefit families with young drivers. In addition to standard discounts for good students and students away at school, here are a few standout discounts:

• Shared family car discount for households with one driver age 20 or younger and more drivers than vehicles

• Youthful driver discount for drivers under age 25 who are a child or grandchild of a Farmers policyholder

• On your own discount for drivers under age 29 who were on a Farmers household policy and recently moved out

Learn more: Cheapest car insurance for teens

Farmers complaints and customer satisfaction

In our analysis, Farmers scored 15 out of 30 for customer satisfaction. Farmers had more customer complaints filed with NAIC than the industry average. It scored slightly above average in J.D. Power’s claims satisfaction study, but scored below average in customer satisfaction in 10 out of 11 geographic regions surveyed by J.D. Power.

GEICO offers more discounts than any other auto insurance company in our ranking. However, its rates tend to be higher than the average among all insurers Yahoo Finance reviewed. You can potentially lower your monthly premiums by taking advantage of discounts for having anti-lock brakes, an anti-theft system, daytime running lights, restraint devices, a clean driving record, and much more.

Learn more: GEICO auto insurance review

GEICO pros and cons

Pros

• More discounts than other insurers

• Accident forgiveness coverage for first qualifying accident claim

• Mechanical breakdown coverage

• Lower-than-average complaint history with NAIC

Cons

• Above-average rates

• No diminishing deductible program

• No gap coverage to pay an auto loan if a car is totaled or stolen

• No new car replacement program

GEICO offers 11 types of coverage, most of which are standard among auto insurers. It has a couple coverage options, though, that not all auto insurance companies provide, including:

GEICO has 23 discounts, ranging from ways to reduce costs by being a safe driver to signing up for automatic premium payments. Its discounts for military members and certain employees stand out:

• Up to 25% off for drivers deployed overseas for military service

• Up to 15% off for active-duty or retired military personnel, National Guard, and Reserves

• Up to 12% off for active or retired federal employees

• Discounts for members of GEICO partner organizations, including colleges, universities, Berkshire Hathaway companies, and more

GEICO complaints and customer satisfaction

GEICO scored 21 out of 30 for customer satisfaction in our analysis. It has received fewer customer complaints filed with the NAIC than the industry average. However, GEICO scored below average in J.D. Power’s auto claims satisfaction study and below average in seven out of the 12 geographical regions in J.D. Power’s customer satisfaction study.

Auto insurance rates can vary greatly from insurer to insurer. That’s why it pays to shop around to get the best rate for the coverage you want.

For insurers in our analysis, the average monthly premium for full coverage for a typical driver is $186, according to data from the auto insurance marketplace Savvy Insurance Solutions.

The tables above are a good starting point when determining how much auto insurance will cost. However, your own auto insurance cost depends on several factors:

Most auto insurance companies offer liability, collision, and comprehensive coverage. There are a range of other options insurers also offer that can provide additional coverage. Here’s a look at how many types of coverage the insurers we evaluated offer:

Auto insurance companies typically offer a variety of discounts that can help reduce the amount you pay for coverage. Here’s a look at how many discounts the insurers we evaluated offer:

• Allstate: 11 discounts

• American Family: 17 discounts

• Farmers: 18 discounts

• GEICO: 23 discounts

• Liberty Mutual: 12 discounts

• Mercury: 8 discounts

• Nationwide: 7 discounts

• Progressive: 12 discounts

• Safeco Insurance: 7 discounts

• State Farm: 15 discounts

• The Hartford: 9 discounts

• Travelers: 12 discounts

• USAA: 15 discounts

What auto insurance will cover depends on the type of coverage you buy. Basic coverage, known as liability coverage, pays for property damage and injuries to others if you cause an accident and can help pay your legal fees following an accident.

Full coverage includes liability as well as collision and comprehensive coverage. Collision coverage helps pay for damage to your car if you’re in an accident. Comprehensive coverage helps pay for damage caused by weather, theft, vandalism, and collisions with animals.

These tips can help you find the best auto insurance for your needs and your budget.

• Assess your coverage needs. At a minimum, you will need liability insurance, which is required in every state except New Hampshire. Adding collision and comprehensive coverage can pay off if your car is ever damaged — and might be required if you’re leasing or financing your car. You may want even more types of coverage, such as roadside assistance, rental car coverage, or custom parts and equipment insurance. The types of coverage you want can impact which insurer you choose.

• Shop around. Get quotes from multiple insurance companies because each insurer has its own methodology for setting car insurance premiums. You can use online comparison tools that provide quotes from multiple insurers, visit car insurance websites to expand your search to companies that aren’t featured in comparison tools, or work with an independent insurance agent, who can get quotes from several companies for you.

• Ask about discounts. You may be able to get a better deal on the coverage you want if the insurer offers a range of discounts and you qualify for them. Common auto insurance discounts include rate reductions for having a safe driving record, a car with safety features, multiple policies with the same insurer, automatic payments, and paying your premium in full each year.

• Don’t focus on price alone. Opting for the cheapest car insurance policy could lead to higher costs if coverage is inadequate. Ask about coverage restrictions, such as whether your coverage level will drop if you drive outside of your state or if friends will be covered if they get into an accident when borrowing your car.

• Check reviews and do your research. Read online reviews and complaints for insurers you’re considering to find a company with a good customer service track record. Also, check the insurers’ financial strength through an independent agency such as A.M. Best, Fitch, or Moody’s to ensure they can pay customers’ claims.

Learn more: Does buying car insurance online save you money?

American Family earned the highest rating in Yahoo Finance’s evaluation of 13 auto insurance companies. But it’s important to shop around to find an auto insurance company that provides the coverage you want at a price you can afford.

In our analysis, American Family and Farm Bureau had the cheapest car insurance for full coverage. American Family also had the cheapest car insurance for liability-only coverage.

We researched the coverage details and prices for 13 auto insurance plans. We then weighted categories, and each auto insurer was scored relative to the others to find the best auto insurance companies. Here are the factors we incorporated.

Coverage types: 20% of score. We examined all the coverage options available, and assessed whether each insurer offered the following: new car replacement (5%), GAP insurance (5%), accident forgiveness (5%), and diminishing deductible (5%).

Average cost: 40% of score. The average cost was generated by Trellis’ in-house machine learning models based on over 3 million data points, and includes more than 15 of the largest insurance companies in Trellis’ nationwide data set. These estimates are for policies with full coverage for the average policyholder who owns one car. Average policyholder here is defined as a 48-year-old driver, driving a 13-year-old car, in an average-income ZIP code with full coverage.

Customer satisfaction: 30% of score. We factored in information from three major sources: 1) National Association of Insurance Commissioners (NAIC) complaints (10%), in which we took the total number of complaints each company had over a three-year period (2022-2024), 2) CRASH scores (10%) from the Crash Network which share how well each company ensures quality repairs and customer service, and 3) J.D. Power scores (10%) from the J.D. Power U.S. Auto Claims Satisfaction Study and the U.S. Auto Insurance Study.

Discounts: 10% of score. We gave points for each type of discount that each auto insurer offers.

All app ratings were accurate at the time of publication.

Unless stated otherwise, the estimates above are provided by Savvy Insurance Solutions (“Savvy”). Savvy operates a marketplace for home and auto insurance, plus an agency licensed in all 50 states. Estimates are generated using Savvy’s in-house machine learning models based on over 3 million data points, and include more than 15 of the largest insurance companies in Savvy’s nationwide data set. This includes data from more than 2 million insurance accounts connected through Trellis Connect, an in-house technology allowing consumers to “link” their insurance accounts before searching for insurance, and tens of thousands of policies bound by Savvy’s own agents. It takes into account a myriad of factors to create predictions, such as:

• Policyholder age

• Number of vehicles

• ZIP code

• Vehicle age

• Insurer

• …and more

Savvy creates estimates by running models against multiple inputs to the parameters of interest. For instance, the “teen driver” estimates were created by adjusting the policyholder age input into the pricing model while keeping all other variables steady from the baseline for “full coverage.” The models enable hyper-personalized estimates that take into account a plethora of user attribute permutations (e.g., teen drivers in specific states, teen drivers with new vehicles, teen drivers in specific states with new vehicles) to provide individuals with a unique and tailored experience. The charts above are a subset of the kinds of personalization Savvy can do.

The following are definitions used by Savvy when providing its rate estimates for various types of coverage.

Full coverage car insurance: A policy with comprehensive, collision, and liability coverage.

Average policyholder: A 48-year-old driver who owns a 13-year-old vehicle and lives in an average-income ZIP code.

Senior driver: A 70-year-old policyholder with full coverage car insurance.

Good driver: Drivers across all coverage types, vehicle types, and locations who have no tickets, accidents or DUIs.