The 5 Best Car Insurance Companies of July 2025

These companies all scored 5 stars in our analysis. The average rates are for a 35-year-old driver with a clean driving history, good credit and full coverage car insurance. A full coverage policy includes liability, comprehensive and collision insurance.

Why it’s one of the best: Travelers earned the best overall score out of the insurers we analyzed. With few customer complaints and lots of discounts and coverage options to choose from, Travelers is an all-around solid choice for drivers.

Some of Travelers’ options include gap insurance, rideshare insurance and new car replacement coverage, which can help if your new car is totaled. You may also be eligible for one of the insurer’s two forgiveness plans, which will keep your rates from going up after a crash or ticket.

Average rates: Travelers car insurance costs an average of $1,794 a year, or $149 a month. That’s less than the national average of $2,571 a year, or $214 a month.

Why it’s one of the best: Auto-Owners is an excellent choice for people who want to bundle their home and auto insurance. Auto-Owners home insurance also received 5 stars in our analysis, landing it on our list of the best home insurance companies.

Customers who bundle home and auto insurance with Auto-Owners can take advantage of a common loss deductible, which means that if you go through a covered event that damages both your house and your car, you won’t have to pay the full deductibles for both policies.

Average rates: Auto-Owners car insurance costs an average of $2,173 a year, or $181 a month. That’s less than the national average of $2,571 a year, or $214 a month.

Why it’s one of the best: American Family gets high marks for customer satisfaction. It received the lowest rate of customer complaints to state regulators out of any top company on our list. The insurer also ranked well for customer satisfaction in J.D. Power’s 2024 U.S. Insurance Shopping Study .

American Family offers more discounts than many insurers, which may help offset its rates. Discounts include common ones like bundling and meeting the company’s criteria for being a “good driver,” as well as less common ones, like completing volunteer work for a nonprofit if you’re under 25 years old.

Average rates: Full coverage car insurance from American Family costs an average of $2,583 a year, or $215 a month. That’s slightly less than the national average of $2,571 a year, or $214 a month.

Why it’s one of the best: State Farm offers a wide range of options, including rental car and travel expenses coverage that’s superior to what’s offered by competitors. It also stands out when it comes to its user-friendly website and highly-rated mobile app.

State Farm is a solid choice for drivers who prefer a human touch, as its policies are sold exclusively through its agents. The insurer also gets strong marks when it comes to consumer satisfaction. It gets fewer complaints than expected for a company of its size, and it ranked near the top in customer satisfaction in J.D. Power’s 2024 U.S. Insurance Shopping Study.

Average rates: State Farm car insurance costs an average of $2,440 a year, or $203 a month. That’s slightly less than the national average of $2,571 a year, or $214 a month.

Why it’s one of the best: While there are a few top auto insurance companies for veterans and military families, we found that USAA is often the best pick for active-duty military members, veterans and their families.

USAA offers competitive rates and military-specific perks, such as a discount for storing your car on a military base. Policyholders can pay extra for options like accident forgiveness, rideshare insurance and car replacement assistance.

USAA gets fewer complaints than expected for a company of its size. It also received high marks in J.D. Power’s most recent customer satisfaction study, suggesting USAA’s customers tend to be happy with the insurer.

Average rates: A full coverage policy from USAA costs an average of $1,670 a year, or $139 a month. It offers the cheapest average rates of all of our 5-star insurers, and is significantly less expensive than the national average of $2,571 a year, or $214 a month.

If you’re looking for more options, check out these other car insurance companies that earned a NerdWallet star rating of 4.5. Each of these companies could be a solid choice, depending on your location and specific needs.