Best car insurance companies by state

Compare the best car insurance companies by state

Car insurance isn’t one-size-fits-all, but there are ways to determine if an insurer is right for you. While low rates are important, you also need to know that your insurance company has good customer service and can pay any possible future claims.

There’s a lot that goes into picking a car insurance company, so we’ve compiled the best car insurance by state to help you get started.

However, not all insurance companies and coverages are available in every state. Since there are numerous differences, it’s essential to compare car insurance by state.

Company	AM Best	JD Power Rating	NAIC	Average Annual premium	Overall Score
GEICO	A++	637	0.69	$1,338	4.71
State Farm	A++	656	0.79	$1,713	4.39
Progressive	A+	607	0.71	$1,742	3.62
Allstate	A+	626	1.1	$2,114	2.96
USAA	A++	743	1.18	$1,166	4.5

How we choose the best car insurance companies in each state

Every state has numerous car insurance companies offering coverage, making it challenging to determine which one is the best.

When comparing insurers, it’s essential to consider more than just rates. You also need to know that the company can effectively handle any claims that may arise and provide solid customer service.

For our rankings, we looked at these three distinct areas:

Rates. We compared the average rates from each insurer for a 40-year-old driving a Honda Accord LX with a good driving record and full coverage of 100/300/100 with $500 deductibles. It is worth noting that younger drivers with a poor driving record or those who require higher coverage limits will pay higher rates.
Financial stability. We compared AM Best ratings, which assess an insurer's financial strength. Insurers with strong financial stability can pay claims and are less likely to default on their financial obligations.
Customer complaints. We considered the National Association of Insurance Commissioners (NAIC) complaint index, which measures the number of complaints an insurer has received compared to the expected number for its market share.

How much is car insurance in your state?

Car insurance rates vary significantly by state and insurer due to numerous factors, including state insurance requirements and the insurer’s rate formula. The table below shows average car insurance rates from top insurers in each state.

State	Full coverage (100/300/100), $500 deductible
Alaska	$1,676
Alabama	$1,860
Arkansas	$1,957
Arizona	$1,812
California	$2,416
Colorado	$2,337
Connecticut	$1,725
Washington, D.C.	$2,157
Delaware	$2,063
Florida	$2,694
Georgia	$1,970
Hawaii	$1,517
Iowa	$1,630
Idaho	$1,428
Illinois	$1,532
Indiana	$1,515
Kansas	$1,900
Kentucky	$2,228
Louisiana	$2,883
Massachusetts	$1,726
Maryland	$1,746
Maine	$1,175
Michigan	$2,352
Minnesota	$1,911
Missouri	$1,982
Mississippi	$2,008
Montana	$2,193
North Carolina	$1,741
North Dakota	$1,665
Nebraska	$1,902
New Hampshire*	$1,265
New Jersey	$1,902
New Mexico	$2,049
Nevada	$2,060
New York	$1,870
Ohio	$1,417
Oklahoma	$2,138
Oregon	$1,678
Pennsylvania	$1,872
Rhode Island	$2,061
South Carolina	$2,009
South Dakota	$2,280
Tennessee	$1,677
Texas	$2,043
Utah	$1,825
Virginia	$1,469
Vermont	$1,319
Washington	$1,608
Wisconsin	$1,664
West Virginia	$2,005
Wyoming	$1,758

How to compare car insurance companies

Comparing multiple car insurance companies is essential to find the best coverage and rates available. Although it may seem daunting to compare numerous quotes, there is an easy way to get the information you need to make an informed decision.

Choose coverage. First, determine your coverage needs. While most states require a minimum amount of liability coverage, you may need higher limits and additional coverages, such as collision and comprehensive.
Choose deductibles. You also need to determine your deductibles. A deductible is the amount that you pay when you file a collision or comprehensive claim. A lower deductible means higher rates but less money out of pocket if you file a claim.
Ask about discounts. You may be eligible for multiple car insurance discounts that can significantly affect your rates, so be sure to compare those as well. Compare the availability and savings amount, since these can change by insurer.
Gather your information. You’ll need vehicle information, such as the VIN, make, model, year and trim level. You also need information for each driver on your policy, including full name, date of birth and driver's license number.
Compare quotes. Although you can contact each insurer individually, it is faster to use a site like Insurance.com to compare multiple quotes at one time. Once you receive the quotes, carefully compare rates, coverages and discounts to find your best fit.

Factors that affect car insurance premiums

Every insurer creates its formula for determining car insurance rates. While they may weigh one factor more heavily than another, they all typically consider the same components.

Factors affecting car insurance include:

Driving record. Your driving record provides insurers with insight as to whether you’re a safe driver or if you’re likely to cost them money in claims. Safer drivers have lower rates.
Vehicle. Newer vehicles have more safety features, meaning fewer injury claims. However, they are also more expensive to repair due to costly monitoring and safety systems.
Age. Young drivers lack experience behind the wheel and are more likely to be in an accident. Fortunately, rates decrease as drivers get older.
Location. Drivers living in a busy city typically pay more than those in rural areas. City drivers are more likely to have their vehicles damaged in an accident or stolen.
Coverage. More coverage means higher rates. However, minimum coverage typically doesn’t offer enough protection, so drivers are encouraged to add coverage and increase limits.
Credit score. Insurers believe that drivers with a higher credit score are more likely to pay for repairs themselves and avoid filing claims. However, some states, like California, don’t allow insurers to consider credit scores when calculating rates.

Frequently asked questions

Why is car insurance expensive in some states?

Insurance factors influence the rates in each state. States with significant weather events, higher minimum requirements, and a higher number of drivers have seen increased car insurance rates, as insurers are more likely to pay claims due to the higher risk.

Are there state-specific car insurance discounts?

Although states do not have specific car insurance discounts, they do control which discounts are available. Some states also don’t allow loyalty, telematics, or education-based discounts.

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