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This article was reviewed by Andrew Flueckiger, a member of the Finder Editorial Review Board and certified insurance counselor and licensed insurance agent in five states.
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Finder's car insurance team spends thousands of hours researching policies and analyzing hundreds of thousands of quotes from nearly every car insurance company to give you unbiased, expert reviews of each company's features, benefits and drawbacks complete with sample quotes and our expert ratings.
What's in this guide?
Some of the top companies we compare
How do I compare car insurance?
Make sure you’re comparing equivalent features to get the strongest insurance rates.
- Balance the best coverage with the cheapest rates. Consider all the factors like discounts you qualify for, how easy it is to make a claim or whether preferred perks cost extra.
- Compare apples to apples. Check for the same perks, coverage, deductible and pay schedule across companies.
- Get multiple quotes. Consider at least two or three of the cheapest quotes, including quotes from national companies, local or specialized insurers.
- Watch for exclusions. Read the fine print on your car insurance quote avoid claim caveats or cancellation fees.
- Check ratings and reviews. Use sites like J.D. Power, BBB and Trustpilot to see a company’s customer service and claims ratings.
How much does car insurance cost?
The average cost of car insurance is $1,300 a year or $108 a month, but rates vary depending on your car’s make, model and year, driving record, location, age, credit score and other factors.
For example, expect higher insurance rates if you live in a high-claims area, like a big city or an area with a high rate of uninsured drivers or car theft.
Car insurance quotes
If lowering your car insurance premium is your main priority, switching car insurance could be one of the best ways to save. Compare auto insurance quotes with sample rates from insurers for California drivers.
| Company | Average annual rate | Average monthly rate |
|---|---|---|
| Geico | $394 | $33 |
| USAA | $416 | $35 |
| Progressive | $536 | $45 |
| Grange | $557 | $46 |
| Mercury | $564 | $47 |
| Kemper | $615 | $51 |
| 21st Century | $651 | $54 |
| Allied | $666 | $55 |
| Nationwide | $666 | $56 |
| Allstate | $666 | $59 |
| Liberty Mutual | $709 | $59 |
| State Farm | $726 | $61 |
| The Hartford | $727 | $61 |
10 tips to save on car insurance
No one wants to overpay for insurance. The best way to save on car insurance is by shopping around.
- Start with multiple customized quotes.
- Hunt for discounts, like taking a defensive driver course.
- Get coverage to fit your car’s age, make and model.
- Skip coverage you don’t need like towing for new cars.
- Raise your deductible if you have enough in savings.
- Try pay-per-mile insurance if you don’t drive much.
- Insure all cars under the same insurer.
- Drive a safe, low-risk car to get lower rates.
- Think twice about filing small claims to avoid rate increases.
- Shop around every year or after a big life change, like moving.
How to find the right auto insurance near you
Each state holds its own minimum car insurance requirements, and deciding on other coverages depends on how much you’re willing to pay out of pocket in the event of a claim.
- Start with your state’s minimum requirements for liability, underinsured driver and personal injury protection coverage.
- Decide whether to increase your liability maximums by totaling all of your financial assets and selecting a liability limit that equals that amount. If you’re responsible for an accident and don’t have enough liability coverage, you’ll have to pay the remaining dollar amount out of pocket.
- Decide if you want to add other coverages like roadside assistance, comprehensive coverage or collision coverage.
Car insurance costs by state
Car insurance rates can vary a lot based on your address in the US. The national average is $1,300 a year, but drivers in less populated states like Maine pay only $864, while Michigan drivers facing unique insurance laws see premiums around $2,394.
Compare car insurance for your state
What car insurance coverage do I need?
In most states, each driver should have at least liability coverage, and sometimes personal injury protection or uninsured driver coverage. The types and limits of car insurance coverage you need are different for every state.
When shopping for car insurance, you might see limits written like 25/50/25, which means $25,000 bodily injury liability and $50,000 bodily injury per accident and $25,000 property damage limit.
Bodily injury liability
Covers costs from injuries you cause another person in an accident.
Property damage liability
Covers damage you cause to someone else’s property in an accident.
Personal injury protection or medical payments
Covers medical services after an accident, regardless of fault.
Uninsured or underinsured motorist
Covers your own injury or car damage costs if the at-fault driver in an accident doesn’t have car insurance, or doesn’t have enough coverage.
Compare car insurance companies
Ask an expert: Avoid these car insurance mistakes
Kirby George
Farmers Insurance, Licensed Insurance Agent
The biggest mistake I see people make is shopping for price.
When shopping for a car, a house or even a sweater, the average consumer understands they’re going to get what they pay for. If you want a Cadillac, you’re going to have to pay more than you would for a Ford.
If you want a brand-new 2,500-square-foot home, you expect to pay more than you would for a 20-year-old mobile home. When you shop for clothes, you pay more for new than you do at a thrift shop. Insurance is no different.
What factors affect my auto insurance quote?
Your insurance quote comparisons look different across several companies because insurers use info about you to determine your driving risk and set your quotes.
This info is based on factors like where you park and how many miles you drive, including 10 factors that affect your rates the most:
How do I read my quote?
A car insurance quote gives you an estimate for how much you’ll pay for car insurance with a particular insurer. Car insurance policies are usually rated for six or 12 month periods.
You also might see your coverage limits written as 50/100/25. These numbers represent the dollar amount of coverage you have for physical damage and bodily injury liability:
- 50 = $50,000 for bodily injury liability per person involved in the accident
- 100 = $100,000 for bodily injuries total per accident
- 25 = $25,000 for physical damage liability per accident
Once you decide on a company, your final rate is determined after the insurer looks at your motor vehicle record and once you decide on a payment plan.
Your car insurance questions answered
How can I pay for my car insurance policy?
You typically pay your premiums monthly, yearly or every six months. Insurance companies may accept electronic transfers, credit cards or checks.
You might score discounts for paying for your policy annually, setting up autopay or getting bills online.
What’s the difference between a deductible and a premium?
Your premium is what you pay every month to keep your policy and coverage. The deductible is what you pay in an accident before you can get a claim payout.
Should I buy car insurance online?
Yes, online car insurance quotes give you a quick estimate of how much you’ll pay. It’s a good option if you’re trying to budget for insurance costs, or if you want to see prices before you settle with an insurer.
You can sign up online or get in touch with an agent or broker for personalized help.
Do insurance companies insure all types of vehicles?
No, some insurers only cover certain cars or vehicles used for personal driving. If you aren’t sure about your car, contact an insurance rep for an answer.
Typically, if you have a specialty vehicle like a vintage car, beach buggie or commercial car, you can find companies that specifically list classic, custom or commercial cars as acceptable on their websites.
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- How does a VIN affect car insurance?
Learn how insurance companies use identifying info from your VIN to set rates.
- Compare full coverage vs. liability car insurance
Which type of car insurance policy fits your car and driving needs?
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- Car insurance for drivers 25 to 40 years old
Take advantage of the lowest minimum coverage rates by earning all the discounts you can.
- Heacock Classic car insurance review May 2021
Insure your classic car or race car at agreed value with Heacock Classic, but you’ll have to look elsewhere if you have recent claims or major violations.