Best car insurance companies in 2026

With so many options available, shopping for car insurance can feel overwhelming, but it doesn’t have to be. Whether you’re looking for the best price, adding a teen to your policy, or wanting to save as a senior driver, we’ve found the best car insurance companies for you to compare.

To find the best car insurance companies for your needs, Yahoo Finance evaluated costs, coverage, discounts, complaints, claims handling, customer satisfaction, and digital experience across 20 companies. Our editors analyzed data to give an unbiased ranking so you can discover the auto insurer that best fits your unique criteria and budget.

Top 5 best car insurance companies

American Family: Best overall, and best for coverage options, post-accident or ticket, and rideshare drivers

Star rating: 5 out of 5 ⭐

Why we like American Family

American Family topped our rankings as the best overall car insurance company. It tied with Farm Bureau for the lowest full-coverage car insurance costs ($151 per month) and was also rated best for coverage options, rideshare drivers, and drivers after an accident or ticket. American Family also offers a wide range of discounts that can help you lower your rates further. American Family is good for drivers looking for a balance of quality coverage choices and affordable pricing. A limitation is that it may not be available in your state.

American Family pros and cons

Pros

• Lowest rates in our analysis (tied with Farm Bureau)

• Lots of coverage options, including pet injury protection and low mileage programs

• Offers rideshare insurance that helps Uber and Lyft drivers avoid gaps in coverage

• Accident forgiveness, new car replacement, and diminishing deductible are available

Cons

• Limited availability in the U.S.

• Mediocre rating on claims handling

American Family key stats

• Average cost for full coverage: $151 per month (lowest in our analysis)

• Availability: 19 states (mostly located in the Midwest and West)

• Complaint level: 0.397 (well below industry average of 1.00)

• Crash Network grade for claims handling: C+

• Coverage offerings: 11 options

• Available discounts: 17 types

Learn more: American Family auto insurance review

Farm Bureau: Best for Claims handling and UBI

Star rating: 4.3 out of 5 ⭐

Why we like Farm Bureau

Farm Bureau stands out as the top choice in our analysis for its handling of claims and usage-based insurance (UBI) program. It also tied with American Family for the lowest rate on a full-coverage auto policy. Farm Bureau has a three-year NAIC complaint ratio of 0.137 — well below the national benchmark of 1.082. And several Farm Bureau chapters earn top CRASH Network repair rankings.

Read more: How does pay-per-mile car insurance work?

Farm Bureau pros and cons

Pros

• Cheapest rates for full coverage policy (tied with American Family)

• Claims service received high marks from collision experts

• The “Driveology” UBI program offers the highest possible discount for safe drivers of all the companies we evaluated

• Offers new car replacement, rideshare insurance, and pet injury coverage

Cons

• Diminishing deductible is not available

• Coverage for accident forgiveness, gap insurance, custom parts, or OEM coverage varies by area

• Its mobile app scored the lowest of all insurers analyzed

Farm Bureau key stats

• Average cost for full coverage: $151 per month (lowest in our analysis)

• Availability: 46 states

• Complaint level: 0.137 (lowest of insurers reviewed)

• Crash Network grade for claims handling: A+ in North Carolina, A- in Michigan, and B+ in multiple other states

• Coverage offerings: 6 options

• Available discounts: 8 discount types

Learn more: Farm Bureau car insurance review

GEICO: Best for discounts

Star rating: 3.2 out of 5 ⭐

Why we like GEICO

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. GEICO is a good option for drivers seeking a national auto insurer that offers lower rates through multiple discounts. A downside is that it offers fewer coverage options than several competitors.

Learn more: Car insurance discounts: 17 ways to save

GEICO pros and cons

Pros

• More discount opportunities than other insurers we analyzed

• Accident forgiveness coverage for the first qualifying accident claim

• Mechanical breakdown coverage is available

• Lower-than-average complaint history with NAIC

Cons

• Above-average rates

• Doesn’t offer a diminishing deductible or new car replacement

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

• Doesn’t offer rideshare coverage

GEICO key stats

• Average cost for full coverage: $202 per month (higher than average)

• Availability: 50 states

• Complaint level: 0.730 (lower than the industry average of 1.00)

• Crash Network grade for claims handling: C-

• Coverage offerings: 11 options

• Available discounts: 23 types

Learn more: GEICO auto insurance review

The Hartford: Best for teen drivers and senior drivers

Star rating: 4.8 out of 5 ⭐

Why we like The Hartford

The Hartford’s low-cost rates, specialty discounts for teens and seniors, quality coverage offerings, and excellent digital experience make it the top pick for teen drivers and senior drivers. AARP members, in particular, get special discounts and savings on auto insurance from The Hartford. The Hartford is good for families with teenagers or seniors looking for great rates, decent discounts, and a broad range of coverage offerings. Rideshare drivers should look elsewhere.

Learn more: Cheapest car insurance for teens

The Hartford pros and cons

Pros

• Cheapest rates for teenage drivers and senior drivers

• Second-cheapest for middle-aged drivers

• Offers new car replacement, accident forgiveness, a disappearing deductible, and gap insurance

• Custom parts and equipment coverage is available

Cons

• Its UBI program can raise your rates

• Doesn’t offer rideshare coverage, a pay-per-mile plan, or OEM parts coverage

Learn more: Cheapest car insurance for seniors

The Hartford key stats

• Average cost for full coverage: $153 per month (second-cheapest)

• Availability: 50 states and D.C.

• Complaint level: 1.313 (higher than industry average of 1.00)

• Crash Network grade for claims handling: C+

• Coverage offerings: 13 options

• Available discounts: 11 types

Learn more: The Hartford auto insurance review

USAA: Best for customer service

Star rating: 3.9 out of 5 ⭐

Why we like USAA

USAA scores on J.D.Power’s claims satisfaction study far exceed the other auto insurance companies we evaluated, plus its superb digital experience score makes it our winner for best customer service. USAA also has below-average costs and a wide variety of coverage options. USAA is well-suited for drivers seeking strong customer service and low rates. A limitation is that USAA sells exclusively to military members, veterans, and their immediate family members.

Learn more: Military car insurance: What to know and how to find the best deal

USAA pros and cons

Pros

• Earned our highest marks in our customer service rankings

• Third-cheapest rates overall among the insurers we analyzed

• Scored highly for its mobile app digital experience

• Offers accident forgiveness, gap insurance and rideshare insurance

Cons

• Doesn’t offer new car replacement or custom parts and equipment coverage

• Diminishing deductible is not available

• Received a low grade (D+) from repair specialists on its claims handling

• Only those in the military community are eligible to buy a USAA auto policy

USAA key stats

• Average cost for full coverage: $168 per month (well below average)

• Availability: 50 states

• Complaint level: 1.217 (higher than the industry average of 1.00)

• Crash Network grade for claims handling: D+

• Coverage offerings: 13 options

• Available discounts: 15 types

Learn more: USAA auto insurance review

Best car insurance companies

Here’s a look at the star ratings for all the insurers we analyzed for our 2026 best car insurance rankings. American Family took the top spot overall, receiving 5 stars.

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

Compare auto insurance costs

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 $190, according to data from the auto insurance marketplace Savvy Insurance Solutions. But you’ll need to do your own research to find a rate that meets your needs.

Factors in auto insurance costs

Your own auto insurance cost depends on several factors:

• Age

• Gender

• Credit score

• Driving record

• Vehicle type

• Vehicle use

• Mileage

• ZIP code

Compare auto insurance coverage choices

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:

• AAA: 14 types

• AAA of Southern California: 6 types

• Allstate: 15 types

• American Family: 11 types

• Costco Auto Insurance: 10 types

• Direct Auto: 12 types

• Farm Bureau: 6 types

• Farmers: 17 types

• GEICO: 11 types

• Liberty Mutual: 19 types

• Mercury: 14 types

• Nationwide: 14 types

• Progressive: 15 types

• Root: 8 types

• Safeco Insurance: 13 types

• State Farm: 13 types

• The General: 6 types

• The Hartford: 13 types

• Travelers: 14 types

• USAA: 13 types

Compare auto insurance discounts

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:

• AAA: 17 discounts

• AAA of Southern California: 10 discounts

• Allstate: 11 discounts

• American Family: 17 discounts

• Costco Auto Insurance: 9 discounts (including the Costco member discount)

• Direct Auto: 16 discounts

• Farm Bureau: 8 discounts

• Farmers: 19 discounts

• GEICO: 23 discounts

• Liberty Mutual: 13 discounts

• Mercury: 12 discounts

• Nationwide: 9 discounts

• Progressive: 14 discounts

• Root: 3 discounts

• Safeco Insurance: 6 discounts

• State Farm: 16 discounts

• The General: 8 discounts

• The Hartford: 11 discounts

• Travelers: 14 discounts

• USAA: 15 discounts

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

What does auto insurance cover?

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.

How to find the best auto insurance

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?

Best auto insurance FAQs

What’s the best auto insurance?

American Family earned the highest rating in Yahoo Finance’s evaluation of 20 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.

Who has the cheapest auto insurance?

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. The Hartford had the cheapest rates for teen drivers and senior drivers.

Read more: Car insurance rates are rising. Here are 11 ways to save.

Methodology

Auto insurance ratings

We researched the coverage details and prices for 20 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 Savvy Insurance Solutions in-house machine learning models based on over 3 million data points, and includes more than 20 of the largest insurance companies in Savvy’s 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: 20% of score. We factored in information from two 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) and 2) CRASH scores (10%) from the Crash Network which share how well each company ensures quality repairs and customer service.

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

App ratings: 10% of score. We included the average ratings for each company’s apps across both the Apple App Store and Google Play Store. All app ratings were accurate at the time of publication.

Auto insurance pricing data

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.

Definitions

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.