How to Compare Auto Insurance Companies in 2025
How to compare auto insurance companies starts with checking rates, which can be as low as $32 per month. You’ll want to look at discounts, claims satisfaction, and coverage flexibility to see which insurer fits your budget and driving needs when learning how to compare auto insurance companies.
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Table of Contents
Table of Contents
Farmers CSR for 4 Years
Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...
Leslie Kasperowicz
Senior Director of Content
Sara Routhier, Senior Director of Content, has professional experience as an educator, SEO specialist, and content marketer. She has over 10 years of experience in the insurance industry. As a researcher, data nerd, writer, and editor, she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world of insurance....
Sara Routhier
Insurance Premium Auditor
With over a decade of experience in insurance premium auditing, audit department management, and business audit representation, Aaron has developed a deep understanding of audit regulations, compliance requirements, and industry best practices. As the Founder & CEO of AdvoQates, he specializes in representing businesses during their audits to ensure accurate, transparent, and fair assessments ...
Aaron Englard
Updated October 2025
How to compare auto insurance companies starts with looking at monthly rates, which can be as low as $32 depending on your age, driving record, and coverage level.
- Step #1: Gather Personal & Vehicle Details – Provide driver and vehicle details
- Step #2: Determine Your Coverage Needs – Choose liability, collision, and add-ons
- Step #3: Research & Shortlist Insurers – Pick A-rated & trusted insurers
- Step #4: Request & Compare Quotes – Match policy terms to compare rates fairly
- Step #5: Evaluate Discounts & Financial Strength – Review discounts and stability
- Step #6: Choose Best Overall Value – Choose the best balance of price
Beyond price, the comparison should include discounts, financial stability, and claims satisfaction. Each factor plays a role in whether an insurer is the right fit for your budget. Taking the time to weigh these details helps you find the best overall value for your coverage needs.
Find the best auto insurance company near you by entering your ZIP code into our free quote tool.
6 Easy Steps to Compare Auto Insurance Companies
When comparing auto insurance companies, take action using accurate information, define coverage needs, and confirm provider trustworthiness. With good driver and vehicle information, plus an honest look at financial strength and customer complaint records, along with the receipt of three identical quotes, differences in price and protection become apparent.
Steps for Comparing Auto Insurance Companies| Step | Action | Purpose |
|---|---|---|
| #1 | Gather Personal & Vehicle Details | Helps insurers provide accurate quotes |
| #2 | Determine Your Coverage Needs | Ensures you’re protected without overpaying |
| #3 | Research & Shortlist Insurers | Focus on reputable companies with strong reviews |
| #4 | Request & Compare Quotes | Compare prices, coverage options, and deductibles |
| #5 | Evaluate Discounts & Financial Strength | Identify savings and ensure claim reliability |
| #6 | Choose the Best Overall Value | Select the policy that balances cost and coverage |
In practice, the best way to compare car insurance is to line up these factors side by side so you can see which company offers the strongest balance of price, coverage, and reliability (Learn More: A Visual Guide to Auto Insurance).
Step #1: Gather Personal & Vehicle Details
Write down your driver’s license number, Social Security number (for credit-based scoring), vehicle identification number (VIN), current odometer reading, and the average annual mileage. Also, list recent accidents, tickets, or claims, since insurers use this to adjust premiums.
When comparing auto insurance companies, match coverage and deductibles, then check financial strength and claims satisfaction for reliable protection.
Michelle Robbins Licensed Insurance Agent
Without these, quotes will be estimated rather than accurate. Having this information ready makes a vehicle insurance quotes comparison far more reliable because you’ll be matching actual rates instead of rough estimates.
Read more: These 3000 People Got Auto Insurance Right
Step #2: Determine Your Coverage Needs
Check your state’s minimum liability requirements, then decide if you also need collision (to cover repairs after an at-fault crash) or comprehensive (for theft, fire, vandalism, or storm damage).
Auto Insurance Coverage Options: Pros & Cons| Coverage Type | Pros | Cons |
|---|---|---|
| Liability Insurance | Required by law, affordable | Does not cover your own car |
| Collision Coverage | Pays for your car after accident | Costly, less useful for older cars |
| Comprehensive Coverage | Covers theft, fire, non-collision | Adds cost, includes deductibles |
| Personal Injury Protection | Pays medical bills and wages | Raises cost, may overlap health |
| Medical Payments (MedPay) | Pays medical bills quickly | Low limits, excludes lost wages |
| Uninsured/Underinsured Motorist | Protects if other driver uninsured | May not cover property damage |
| Gap Insurance | Pays loan if car is totaled | Not needed if car is paid off |
| Roadside Assistance | Covers towing and roadside help | Limited use, overlaps other plans |
| Rental Reimbursement | Covers rental during repairs | Daily limits, only certain claims |
| Classic/Collector Car Insurance | Protects vintage cars at set value | Mileage limits and strict rules |
If your car is financed, confirm lender requirements, which often include gap insurance. For high-value vehicles, note if you want OEM parts coverage for repairs.
Step #3: Research & Shortlist Insurers
Use NAIC complaint ratios to see which companies have the lowest number of complaints relative to their market share. Verify financial stability with AM Best ratings of A- or higher. Then compare J.D. Power claims satisfaction scores for insurers in your region. Eliminate companies with poor ratings in any of these categories (Learn More: 17 Tips to Pay Less for Car Insurance).
Step #4: Request & Compare Quotes
Ask at least three insurers for quotes using identical terms: the same liability limits (e.g., $100,000/$300,000/$100,000), comprehensive and collision deductibles (e.g., $500), and any add-ons you require.
Request written or emailed quotes to confirm exact coverage details. Avoid relying on “ballpark” online rates, which may omit surcharges. By standardizing the terms across providers, you’ll make comparing auto insurance quotes more accurate and meaningful.
Step #5: Evaluate Discounts & Financial Strength
Check each insurer’s discount list for options you qualify for, such as safe driver telematics, multi-car, bundling with renters or home, or low annual mileage. Calculate how much these cut the quoted rate.
Top Auto Insurance Discounts by Provider & Savings| Company | Bundling | Claims- Free | Low Mileage | Loyalty | Usage- Based |
|---|---|---|---|---|---|
 | 25% | 10% | 30% | 15% | 30% |
 | 25% | 15% | 20% | 18% | 30% |
 | 25% | 10% | 30% | 10% | 30% |
 | 20% | 9% | 10% | 12% | 30% |
 | 25% | 12% | 30% | 10% | 25% |
 | 25% | 8% | 30% | 10% | 30% |
 | 20% | 14% | 20% | 13% | 40% |
 | 10% | 10% | 30% | 13% | $231/yr |
 | 17% | 11% | 30% | 7% | 30% |
 | 13% | 13% | 20% | 9% | 30% |
Then confirm the company’s financial stability by reviewing AM Best or Moody’s reports to avoid a carrier that may delay or deny claims. Bringing these details together gives you a clearer auto insurance company comparison that balances savings with long-term reliability.
Read more: Best Good Driver Auto Insurance Discounts
Step #6: Choose Best Overall Value
Compare the adjusted monthly premiums (after discounts) side by side with the coverage offered. For example, a $32 minimum coverage plan from Erie may look cheapest, but a $47 State Farm policy could provide higher liability limits and stronger claims satisfaction. Reviewing these side-by-side comparisons is the best way to compare car insurance rates because it shows the real value of coverage rather than just the lowest price.
Auto Insurance Monthly Rates by Coverage Level| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| $87 | $228 |
| $62 | $166 |
| $32 | $84 |
| $76 | $198 |
| $43 | $114 |
 | $96 | $248 |
| $63 | $164 |
| $56 | $150 |
| $47 | $123 |
| $53 | $141 |
Beyond just cost, review whether the policy includes add-ons like rental reimbursement or roadside assistance, since these can make a real difference when you actually need support. It’s also worth checking how each company handles claims, because a slightly higher premium is often justified if it comes with faster payouts and fewer disputes.
Pick the policy that delivers the right mix of cost, protection, and claims reliability. Always look beyond the headline price to see how much coverage you’re actually buying. A slightly higher premium can be worth it if it prevents major out-of-pocket costs after a serious accident.
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Compare Auto Insurance by Age and Market Share
Comparing monthly rate trends against market share helps explain the relationship, giving a clearer picture of how to compare auto insurance companies practically. Younger drivers, especially at age 16, see the steepest monthly premiums, with Liberty Mutual, Progressive, and Travelers auto insurance topping $450, while USAA and Geico sit far lower.
Auto Insurance Monthly Rates by Age| Insurance Company | Age: 16 | Age: 25 | Age: 35 | Age: 45 | Age: 55 | Age: 65 |
|---|---|---|---|---|---|---|
| $371 | $102 | $95 | $87 | $82 | $86 |
| $296 | $78 | $72 | $62 | $59 | $61 |
| $452 | $98 | $90 | $76 | $72 | $75 |
| $178 | $50 | $45 | $43 | $41 | $42 |
| $464 | $119 | $110 | $96 | $91 | $95 |
| $279 | $81 | $75 | $63 | $59 | $62 |
| $467 | $77 | $70 | $56 | $52 | $55 |
| $208 | $60 | $55 | $47 | $45 | $47 |
| $517 | $62 | $58 | $53 | $50 | $53 |
 | $146 | $46 | $42 | $32 | $30 | $31 |
As drivers age, the rates narrow, but the spread remains—USAA, Geico, and State Farm consistently stay on the lower end, while Liberty Mutual and Travelers trend higher. At the same time, the pie chart shows which companies hold the most weight in the market, with State Farm, Progressive, and Geico controlling over half of the national share.
What this means for you is simple: the most prominent companies may dominate in availability and brand recognition, but their rates aren’t always the most competitive. Comparing both cost trends by age and company size helps you decide whether to lean toward a big provider for stability or a smaller competitor for lower premiums.
Protect your vehicle at the best prices by entering your ZIP code into our free auto insurance quote comparison tool.
Auto Insurance Rates by Driving Record
Looking at monthly rates by driving record shows how your history affects costs. A clean record keeps premiums lowest with Erie, Geico, and State Farm. After an accident, DUI, or ticket, insurers diverge—Liberty Mutual and Allstate Insurance increase sharply, while Erie and State Farm remain more competitive, even with violations.
Auto Insurance Monthly Rates by Driving Record
| Insurance Company | Clean Record | One Accident | One DUI | One Ticket |
|---|---|---|---|---|
| $87 | $124 | $152 | $103 |
| $62 | $94 | $104 | $73 |
| $32 | $45 | $60 | $38 |
| $76 | $109 | $105 | $95 |
| $43 | $71 | $117 | $56 |
| $96 | $129 | $178 | $116 |
| $63 | $88 | $129 | $75 |
| $56 | $98 | $75 | $74 |
| $47 | $57 | $65 | $53 |
| $53 | $76 | $112 | $72 |
Most striking is how even a single violation can drive up premiums by $30 to $80, depending on the insurer, proving that shopping around matters as much as driving responsibly. This breakdown makes you not only aware of the penalty if you violate them, but also which companies are softer on drivers for violations.
Usage-Based Auto Insurance
More and more drivers are using usage-based insurance programs to cut costs, and this chart illustrates why – because savings can really differ among companies.
Top Usage-Based Auto Insurance (UBI) Programs| Company | Program | Savings | System |
|---|---|---|---|
| Drivewise® | 30% | Mobile App |
| KnowYourDrive | 15% | Mobile App |
| YourTurn® | 30% | Mobile App |
| Signal® | 30% | Mobile App |
| DriveEasy | 25% | Mobile App |
| RightTrack® | 30% | In-Vehicle Device |
| SmartRide® | 25% | Mobile App / In-Vehicle Device |
| Snapshot® | $231/yr | Mobile App |
| Drive Safe & Save™ | 20% | Mobile App / In-Vehicle Device |
| IntelliDrive® | 30% | Mobile App |
Most insurers now offer mobile app programs like Allstate’s Drivewise, Geico’s DriveEasy, and Progressive’s Snapshot, which track driving habits such as speed, braking, and mileage to calculate discounts.
Savings range from 15% with American Family’s KnowYourDrive to 30% with Erie, Farmers, Liberty Mutual, and Travelers. Nationwide and State Farm offer hybrid systems with apps or in-vehicle devices. For safe drivers, enrolling in a UBI program is one of the most effective ways to cut premiums without reducing coverage.
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Auto Insurance by Premiums Written
The lead of State Farm, with $47 billion in U.S. auto premiums and a 20% market share, tops Geico and Progressive’s total combined market share of another third. The next tier is made up of Allstate, USAA, and Liberty Mutual, followed by Farmers, Nationwide, American Family, and Travelers, holding smaller but significant shares.
Top 10 Auto Insurance Companies by Premiums Written| Insurance Company | Premiums Written | Loss Ratio | Market Share |
|---|---|---|---|
| $47B | 64% | 20% |
| $45B | 70% | 18% |
| $39B | 68% | 16% |
| $30B | 67% | 14% |
| $24B | 65% | 8% |
| $17B | 72% | 7% |
| $15B | 71% | 6% |
| $10B | 69% | 5% |
| $9B | 68% | 4% |
| $8B | 66% | 3% |
Loss ratios matter—Liberty Mutual and Farmers report over 70%, meaning they pay a larger share of premiums in claims compared to State Farm or USAA. This shows not only who the biggest insurers are, but also how efficiently they handle claims relative to revenue, helping you weigh stability with cost and coverage.
Auto Insurance Coverage Options
The minimum you’ll need in most states that want you to have coverage for injuries or damages you cause is this: Collision covers repairs to damages sustained in an accident, while comprehensive covers perils such as theft, weather and vandalism. Select protections according to what your car is worth and how you drive.
Auto Insurance Coverage Options: Key Details & U.S. Requirements| Coverage Type | What It Covers | Required? |
|---|---|---|
| Liability Insurance | Injury and property damage you cause | Required in most states |
| Collision Coverage | Repairs after a traffic accident | Optional, often lender required |
| Comprehensive Coverage | Theft, fire, weather, vandalism, animals | Optional, covers non-collision risks |
| Personal Injury Protection | Medical bills, lost wages, services | Required in some states |
| Medical Payments (MedPay) | Medical bills for you and passengers | Optional, extra medical coverage |
| Uninsured/Underinsured Motorist | Injury & damage from uninsured driver | Required in some states |
| Gap Insurance | Gap between car value and loan amount | Optional, for financed or new cars |
| Roadside Assistance | Towing, flat tires, fuel, lockouts, jumps | Optional, for emergency services |
| Rental Reimbursement | Rental car during vehicle repairs | Optional, for rental expenses |
| Classic/Collector Car Insurance | Agreed value for vintage or rare cars | Optional, for classic cars |
Medical options like personal injury protection (PIP) and MedPay pay for medical bills, whereas uninsured motorist coverage is in place when the other driver doesn’t have insurance. Optional add-ons like gap insurance, roadside assistance, rental car coverage, and classic car policies may be necessary for financed vehicles, drivers who are on the road a lot, or people who are insuring a vintage car.
Factors for Comparing Auto Insurance Companies
It’s best to consider more than the monthly premium when you’re comparing auto insurance companies. This list will help break down what you should be considering against each other. The coverage options show what you’ll get — and what you won’t be getting — for your premium, while discounts show a little of the elbow grease that goes into getting that price.
Key Factors for Comparing Auto Insurance Companies| Factor | Description |
|---|---|
| Coverage Options | Types of coverage the company offers |
| Premium Costs | Monthly or annual insurance rates |
| Discounts Available | Types of discounts offered |
| Customer Service | Support quality and availability |
| Claims Process | Filing ease and processing time |
| Financial Strength | Company’s ability to pay claims |
| Customer Reviews | Ratings from customers and agencies |
| Digital Experience | Online tools and mobile features |
| Availability | Coverage across states or regions |
| Policy Customization | Ability to adjust coverage options |
| Roadside Assistance | Emergency help included in policy |
| Rental Reimbursement | Rental coverage during repairs |
| Usage-Based Programs | App or device rewards safe driving |
| Bundling Options | Discounts for combining multiple policies |
| Accident Forgiveness | First accident won’t raise rates |
Customer service, claims handling, and financial strength give you a sense of how dependable the insurer will be when you need them most. Digital experience and availability matter if you want easy access through apps or if you travel across states.
Drivers who request identical quotes from at least three insurers often save 15–20% because it exposes hidden fees and makes discounts easier to compare.
Melanie Musson Published Insurance Expert
Add-ons such as roadside assistance, rental reimbursement, usage-based insurance programs, and accident forgiveness can end up being big factors in convenience and long-term savings. Reviewing all of these pieces together helps you figure out which company provides the best mix of affordability, support, and flexibility for your scenario.
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Discounts to Look for Between Companies
Finding the right auto insurance discount can cut your premium significantly. Instead of focusing only on base rates, it pays to know the common savings programs most insurers offer and which ones you may qualify for.
- Vehicle Safety Features: Cars with airbags, anti-lock brakes, or lane-change alerts often qualify for reduced rates.
- Bundling and Multi-Vehicle: Insurers cut costs when you combine home, renters, or multiple vehicles under one policy.
- Payment Options: Paying annually or semi-annually instead of monthly can lower your total premium.
- Driver-Based Discounts: Good students, safe drivers, seniors, and those who complete defensive driving courses may see significant savings.
- Occupation and Low Mileage: Certain professions and drivers with fewer annual miles can receive lower rates.
These discounts vary by insurer, but stacking the ones you qualify for can make a noticeable difference. Always confirm eligibility upfront so you know your quote reflects every possible savings opportunity.
Read more: How Airbags Affect Auto Insurance Rates
The Best Way to Compare Auto Insurance
When you compare auto insurance companies, the process is more than finding the lowest rate. Gather exact personal and vehicle details, set coverage requirements, and check financial strength, complaint ratios, and claims satisfaction. Rates may start at $32, but the real value comes from balancing cost with stability and coverage needs.
Discounts, usage-based plans, and add-ons such as roadside assistance or accident forgiveness also alter the actual cost. You’ll discover actual differences in price and protection by receiving identical quotes and comparing side-by-side. An auto insurance guide enables you to concentrate on these essentials before deciding on a policy.
Find the best auto insurance rates no matter how much coverage you need by entering your ZIP code into our comparison tool today.
Frequently Asked Questions
Why is auto insurance comparison shopping important beyond monthly premiums?
Auto insurance comparison shopping reveals hidden value. A policy costing $15 more per month may include roadside assistance, rental reimbursement, and faster claims payouts—features that could save hundreds after an accident.
What’s the most effective way to learn how to compare insurance companies?
Start by checking financial strength ratings (A.M. Best A- or higher), NAIC complaint ratios, and J.D. Power claims satisfaction. These measures show how stable and reliable an insurer is, not just how cheap their quote looks.
Avoid expensive auto insurance premiums by entering your ZIP code to see the cheapest rates for you.
How do I compare auto insurance quotes side by side to see real differences?
To compare auto insurance quotes side by side, use identical coverage limits and insurance deductibles across at least three companies. For example, compare $100,000/$300,000/$100,000 liability with a $500 deductible. This avoids misleading “low” quotes that don’t offer the same protection.
How should I approach comparing auto insurance rates by age?
Younger drivers see the steepest rates—often above $450 monthly with some insurers at age 16. Comparing rates by age group shows how premiums drop as you reach 25, 35, and beyond, helping families plan for teen coverage.
What should I look for in a comparison of auto insurance companies?
Key factors include coverage options, premium cost, discount availability, digital tools, and financial stability. Reviewing loss ratios (claims paid vs. premiums collected) also helps show how fairly a company handles claims.
How does comparing car insurance companies by market share help me decide?
Market share shows reach and brand stability. For example, State Farm, Progressive, and Geico Insurance control over half the U.S. market. While big companies offer broad access, smaller insurers may compete harder on price and service.
How do I compare third-party car insurance policies?
Compare third-party car insurance by checking state minimum liability limits against what companies offer. While minimums keep costs down, choosing higher liability limits often provides better long-term protection at only a modest premium increase.
What is the value of an auto insurance premium comparison?
Auto insurance premium comparison highlights how insurers weigh driving history. For instance, one accident can raise costs $30–$80 monthly, depending on the company, so reviewing side-by-side rates helps identify the most forgiving providers.
What’s the benefit of doing a multiple car insurance quotes comparison?
When you compare multiple auto insurance quotes, you can expose pricing differences of 15–20% on average. This happens because discounts and surcharges vary by company, even when coverage terms are identical.
How do I make a car insurance online quote comparison accurate?
Enter precise details like VIN, mileage, and recent tickets or claims. Online tools often estimate with incomplete info, but exact details lead to more accurate quotes and fewer surprises when you finalize coverage.
How should I think about how to compare car insurance quotes fairly?
What should I check in a comparison of car insurance quotes?
Why compare car insurance quotes from different companies instead of sticking with one?
What’s the purpose of a car insurance policy comparison beyond price?
How do auto insurance rate comparisons change with driving records?
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