Not all car insurance companies are the same. We polled over 10,000 drivers to learn more about their car insurance experiences, with a focus on key areas such as customer service, claims handling, and customer loyalty. We rated the best car insurance companies of 2023 based on that data to assist you in finding the best one.
What Is the Best Automobile Insurance Company?
The best car insurance company, according to our 2022 data, is USAA, but its insurance products are only available to members of the military community. If that doesn’t work for you, the next best option is State Farm, which ranks second in our analysis.
We analysed rate data as well as feedback from policyholders to determine the best car insurance companies, paying special attention to customer service, claims handling, customer loyalty, and policy renewal. We also asked survey participants if they would recommend their current insurer to a driver looking for a new policy.
If you are looking for auto insurance, this list can assist you in comparing insurers based on the factors that are most important to you. Though USAA and State Farm lead the pack, one of the other eight companies in our rating may be a better fit for you. As a result, before purchasing or renewing your policy, compare several insurers and their rates.
In our ratings, USAA is the best insurance company. According to our 2023 survey, USAA customers are the most satisfied, and they are the most likely to renew their policies and recommend USAA to other drivers. In addition, USAA has the lowest rates in our study, outperforming the national average by 35%.
USAA insurance products, such as auto, homeowners, and renters policies, are only available to military personnel. As a result, not all drivers will be eligible for coverage from this company.
2. State Farm Insurance
State Farm ranks second in our rating, with above-average scores in all of our sub-ratings, including Claims Handling and Customer Loyalty. It also performed well in our ranking of the Cheapest Car Insurance Companies in 2023. Its average premiums for drivers with less-than-perfect driving records were the lowest in our rating for those who couldn’t get a policy with USAA.
Farmers tie for third place in our rating and top spots in many of our subratings. It is ranked first in Claims Handling and second in Customer Service and Customer Loyalty. Farmers loses points in our rating compared to other insurers for Most Likely to be Renewed, where its score of 4.0 is lower than the category average of 4.2. It also has one of the highest average annual rates among the companies in our ratings.
Since our 2021 analysis, Nationwide has risen two spots to tie for third place. Nationwide ranks second in our Customer Loyalty and Most Likely to be Recommended subratings, and ranks above average in all other subrating categories. Nationwide also has lower-than-average rates for some drivers, particularly those with a clean driving record or bad credit.
Geico is tied for third place in our ranking of the Best Car Insurance Companies in 2023, with average scores in categories such as Claims Handling, Customer Service, and Customer Loyalty. It also ranks second on our list of 2023’s Cheapest Car Insurance Companies, with some of the most affordable average rates for teen and senior drivers, as well as those with bad credit.
Allstate has moved up three spots to tie for sixth place in this year’s Best Car Insurance Companies rating, and it is also ranked fourth in our Most Likely To Be Recommended subrating, despite receiving slightly below-average scores in most of our other subrating categories. Its rates are among the highest in our analysis, but Allstate may offer a competitive rate for certain drivers, such as those with a speeding ticket on their record.
This year, Travelers climbed two spots to tie for sixth place. Travelers’ customer service score is lower than that of seven other insurers in our analysis, but it ranks first in our Claims Handling subrating category and third in Most Likely to Be Renewed. Travelers also has an above-average policy renewal score and premiums that are typically lower than the national average.
In our analysis, Progressive ranks eighth. Customers are generally pleased with the ease with which they can open a policy, but Progressive ranks last in our Best for Customer Loyalty category and has below-average scores in every other subrating in our survey. Customers of Progressive are also less likely to renew their policies or recommend the insurer to other drivers. Individuals with a DUI, on the other hand, may be able to save money with Progressive. It has some of the lowest rates for those drivers in our study.
AAA is new to our Best Car Insurance Companies ranking, and it shares the eighth spot with Progressive. Its scores are below average in every category we looked at. It does, however, rank sixth in our Most Likely to be Renewed category, ahead of Allstate, Farmers, Progressive, and American Family. In our study, AAA also has the highest average premiums, but drivers considering AAA should get a quote to see if their individual rate is more competitive.
10.The American Family
This year, American Family fell four spots to No. 10 in our rankings. It has the lowest scores in the majority of subrating categories, with the exception of Progressive, which has a slightly higher score in our Best for Customer Loyalty category. Despite low credit scores, American Family does offer competitive rates for some drivers, particularly teen drivers, those with poor credit, and those with a DUI or accident on their record.