Best Car Insurance Companies in 2021

Car insurance is an incredibly important purchase for any driver. While it is important to compare quotes, there is more to finding the best car insurance companies for your individual needs.

PolicyPals team

Published December 15, 2020.

Best Car Insurance Company for Young Drivers: Nationwide

The best car insurance company for young drivers is Nationwide. Nationwide’s amazing accident forgiveness plan extends to drivers under the age of 18 so if your young driver has had an accident the rates will not immediately skyrocket. These accidents are incredibly common. 1 in 5 young drivers will have an accident during their first year of driving. 

Another benefit of Nationwide also has a program called SmartRide which gives a discount for safe driving along with the accident forgiveness plan. You receive a discount the day you sign up for that program, which is helpful for those on a budget.

Best Car Insurance Company for Students: State Farm

One of the best car insurance companies for students is State Farm. State Farm has a high Good Student discount which can be applied to student drivers up to 25 years old with proof of good grades. This discount can be stacked with their Bluetooth driving beacon program called Drive Safe and Save which gives you an automatic discount on your premium. 

There is another discount you can stack as well that is a safe driving course provided to customers by agents; after completion of the program, the discount is stackable and applied unless there is an accident. That is a discount triple stack!

Best Car Insurance Company for Seniors: The Hartford AARP

The best car insurance company for seniors is the Hartford AARP. Their program is specifically designed for older drivers and guarantees no benefits will be dropped as long as the policy holder maintains a valid driver’s license and pays their premiums on time. 

They also have a program called RecoverCare which helps pay for transportation, cooking, cleaning, yardwork, walking your dog and other costs after an injury due to an accident. Both of these are amazing benefits, but the true kicker for this company is its stellar customer service and commitment to satisfied customers.

Best Car Insurance Company for US. Military Families: USAA

The best car insurance company for military is USAA. USAA exclusively serves the military and their families for insurance and investing needs. They make it easy to make claims, move, and serve all their members with pride. They have an amazing customer service program and lots of discounts available, including longevity discounts, bundling, and student discounts. 

USAA employs military veterans and spouses who truly live and breathe their mission of serving those who serve.

Best Car Insurance Company for Bundles: State Farm

If you’re looking for the best car insurance companies for bundles and savings, State Farm should be top of your list. State Farm has huge bundling discounts with the largest being a 22% discount on your auto premiums if you bundle your home and an umbrella policy.

They also offer multicar discounts so larger households will definitely see the benefits of bundling all of their policies. Even if you do not own a home, you can still benefit from State Farm’s bundling policies with renter’s insurance or a life insurance policy. Both are eligible for bundling discounts up to 5%. There are other stackable discounts like a Bluetooth beacon option.

Best Online Car Insurance Company: Progressive

The best online car insurance company is Progressive. The have a user-friendly interface that allows you to easily get a quote and purchase online. You can do everything on their app, including adjust your coverages, discounts, or view your cars. You never have to talk to your insurance company if you don’t want to. This app could easily become your new insurance agent!

Cheapest Car Insurance Company

The cheapest car insurance company for you is dependent largely on your rate, driving history, and how much coverage you need. While it is impossible to say without a doubt which car insurance company is cheapest, the General and Geico are generally lauded as fantastically inexpensive choices. 

It is important to note, however, that the General does have significantly lower limits than regular car insurance companies. It never allows people to purchase over $50,000 of liability. 

Geico is inexpensive as well, but that can be heavily dependent on bundling. Remember that the least expensive insurance for you is not always the best option. The best car insurance option is always one that is personalized to you, so it pays to shop around!

Top 8 Car Insurance Companies

Car Insurance A.M. Best Financial Strength J.D. Power Customer Satisfaction Score Best for
State Farm
Numerous bundles and savings; impressive claims satisfaction scores
Farmers Insurance
Great coverage options; high number of agents
Affordable premiums for many drivers; wide array of discounts for members
Numerous discounts; rideshare coverage
Metropolitan Insurance
Quick and easy quote process; best supplemental coverage
Great rates for young drivers; flexible coverage options and policy customization
Easy-to-use website and mobile app; good discounts and savings on policies
The Hartford AARP
Best car insurance for senior drivers

Remember when you are shopping for auto insurance to make sure you are choosing the right company for you. If you have more questions or concerns about how to buy car insurance, reach out to an agent you trust.