Best Car Insurance Companies for 2026

The smarter way to choose car insurance. We break down what actually matters such as coverage, claims and costs so you can spend less time researching and more time focusing on what matters to you.
Liberty Mutual logo

Best for Customizable Coverage

Customizable protection with options for collision, comprehensive and helpful add ons.

4.5

CarPlanHero Rating

Lemonade logo

Best for Fast Claims and Low Monthly Rates

Quick digital claims, low monthly rates, and simple coverage built for modern drivers. High Trustpilot rating.

4.9

CarPlanHero Rating

Farmers Insurance logo

Comprehensive coverage built to adapt

Affordable coverage with flexible deductibles and solid protection for everyday drivers.

4.4

CarPlanHero Rating

Top 8 Car Insurance Companies

Editorial Note: Partner links may earn us a commission, but our rankings stay independent. Learn more.

Lemonade logo
1

CarPlanHero Rating: 4.8

Lemonade

Best for Fast Claims and Low Monthly Rates

Full coverage: $117/mo *

Liberty Mutual logo
2

CarPlanHero Rating: 4.5

Liberty Mutal

Best for Customizable Coverage

Full coverage: $253/mo *

Farmers Insurance logo
3

CarPlanHero Rating: 4.4

Farmers

Comprehensive coverage built to adapt

Full coverage: $246/mo *

Travelers logo
4

CarPlanHero Rating: 4.2

Travelers

Best for Flexible Policies

Full coverage: $131/mo *

State Farm logo
5

CarPlanHero Rating: 4.1

State Farm

Trusted nationwide with local presence

Full coverage: $179/mo *

USAA logo
6

CarPlanHero Rating: 3.9

USAA

Good value for military families

Full coverage: $115/mo *

Geico logo
7

CarPlanHero Rating: 3.8

Geico

Affordable coverage for everyday drivers

Full coverage: $142/mo *

Progressive logo
8

CarPlanHero Rating: 3.6

Progressive

Flexible options with nationwide reach

Full coverage: $161/mo *

* These figures are national averages for a driver with a good record – your own quotes will depend on factors like age, location, vehicle, and credit.

We built our rankings by blending data driven analysis with real world insight. Our editorial team spent hours reviewing policies, comparing coverage options, studying pricing, and analyzing customer feedback across dozens of providers.

  • Coverage depth including how they handle liability, collision, comprehensive protection, theft, weather damage and optional add ons
  • Claims experience including payout consistency, processing speed and overall transparency
  • Value for money not just the price you pay, but the amount of protection and long term security you get in return
  • Customer reputation based on reviews, complaint ratios and national satisfaction data
  • Ease of use from digital tools and mobile claims to how clearly the policy terms are explained
 

Our goal wasn’t just to find the “cheapest” policy but the most dependable protection for real drivers. The companies highlighted below stood out for combining affordability, strong coverage options and reliable support when it matters most.

What to Know About Car Insurance

Car insurance is designed to protect you from the unexpected costs that come with accidents, damage and liability, not the everyday expenses of owning a vehicle. If something happens to your car, you typically pay your deductible first and then your insurer covers the approved portion of the claim, similar to how other major coverage works.

A solid policy can cover collision repairs, comprehensive damage, liability costs and even roadside assistance, helping you avoid making stressful decisions based on price alone. What it usually does not cover are routine expenses like maintenance, oil changes, new tires or wear and tear unless you choose a specific add on.

Because insurers often adjust pricing based on your driving history and any past incidents, it pays to get coverage before problems arise. Doing so helps you lock in better rates, maintain continuous protection and avoid costly gaps that can raise your premiums over time.

Detailed Reviews of the Best Car Insurance Companies 2026

While every car insurance company promises peace of mind, their policies differ in ways that matter from how claims are handled to what is included in standard coverage. Below, we break down our top picks in more detail, focusing on coverage depth, customer experience, website and pricing transparency that set them apart.

Lemonade logo
CarPlanHero Rating: 4.8
Sample rates:

Best for Fast Claims and Low Monthly Rates

Why we picked it: Lemonade stands out thanks to its smooth digital experience, usage-based pricing, and quick claims that is ideal if you want a modern, transparent auto insurer that adapts to your driving habits.

Each policy can include standard protections like liability, collision and comprehensive coverage, plus optional extras like roadside assistance, emergency crash detection and glass/windshield coverage. You can build and adjust your policy anytime via the Lemonade app, coverage limits, deductibles, and even add-ons can be customized to fit your needs.

PROS

CONS

Liberty Mutual logo
CarPlanHero Rating: 4.8
Sample rates:

Best for Customizable Coverage

Why We Picked It: Liberty Mutual stands out for its wide range of coverage options and the ability to tailor a policy to almost any driver. With flexible add ons, strong digital tools and savings programs like RightTrack, many drivers can build a plan that fits their budget while still getting robust protection. Liberty Mutual also offers perks such as Accident Forgiveness, Better Car Replacement and New Car Replacement, giving drivers peace of mind and long term value.

Each policy can include coverage for liability, collision, comprehensive, medical payments, roadside assistance and more. Optional upgrades like rental car reimbursement, new car replacement or deductible reduction help you customize your plan to match your priorities. You can manage everything online or through the mobile app, from claims to ID cards, making Liberty Mutual a practical choice for drivers who want convenience without giving up features.

PROS

CONS

Farmers Insurance logo
CarPlanHero Rating: 4.4
Sample rates:

Comprehensive coverage built to adapt

Why We Picked It: Farmers is known for strong, personalized service through its large network of local agents, making it a great option for drivers who want hands on guidance rather than a fully digital experience. Farmers also offers multiple tiers of customizable coverage, including popular add ons like accident forgiveness, new car replacement and original equipment manufacturer parts, giving drivers plenty of control over how their policy is structured.

Each policy can be built around core protections such as liability, collision and comprehensive coverage, with additional options like roadside assistance, glass repair, rental reimbursement and guaranteed OEM parts depending on your needs. Farmers also offers the Signal app, which rewards safe driving with potential discounts, making it appealing for drivers who want a mix of traditional service and modern savings tools.

PROS

CONS

Choosing the Right Car Insurance (Decision Guide)

Car insurance is not one size fits all. The best policy depends on your vehicle, driving habits, location, budget and how much financial risk you are comfortable taking on. Below, we break down the key decisions that matter most when comparing plans and the trade offs that can save (or cost) you hundreds of dollars each year.

Liability vs Full Coverage vs Add Ons

One of the first choices you will make is what level of protection you want. Most insurers divide coverage into three main categories: liability only, full coverage (liability plus collision and comprehensive) and optional add ons.

Liability Only

This is the basic and most budget friendly option. Liability coverage pays for injuries and property damage you cause to others in an accident. It does not cover damage to your own vehicle.

Liability only is a good fit if you drive an older car, want the lowest premium or do not need coverage for repairs to your own vehicle. Just keep in mind that choosing state minimum limits may leave you financially exposed in a serious accident.

Full Coverage

Full coverage includes liability, collision and comprehensive protection. Collision helps pay to repair or replace your car after a crash, while comprehensive covers theft, weather damage, vandalism, fire or hitting an animal.

Full coverage is recommended if you drive a newer car, a leased car or a financed car or if you simply want broader protection. While premiums are higher, this plan gives you the strongest financial safety net.

Optional Add Ons

Many insurers offer extra protections you can add to your policy, such as roadside assistance for towing, jump starts and lockouts, rental car reimbursement while your car is being repaired, gap coverage if a financed car is totaled, new car replacement for recently purchased vehicles, glass or windshield coverage and accident forgiveness.
Plan Type Coverage Scope Typical Monthly Cost
Liability Only Covers injuries and property damage you cause to others. Lowest cost
Full Coverage Includes liability plus collision and comprehensive for theft, accidents, weather damage and more. Moderate to high
Add-Ons Optional extras like roadside assistance, rental car coverage, gap coverage, glass protection or accident forgiveness. Varies by option
Bottom line: Liability only is the cheapest option but offers limited protection. Full coverage provides the strongest financial safety net for most drivers, while add-ons give extra flexibility and convenience for handling unexpected situations on the road.

Car Insurance Costs

Car insurance pricing can feel confusing, but the core idea is simple: your premium reflects the level of financial risk the insurer takes on when they cover you. The more likely or expensive a potential claim appears to be, the higher the price. Below we break down what actually influences your cost and how to make sense of the numbers you see when comparing plans.

What Car Insurance Typically Costs

National averages change each year, but most drivers fall into a predictable range. Full coverage tends to cost around 100–200 USD per month, while minimum liability coverage is significantly cheaper, often 30–70 USD per month depending on the state and your profile. These numbers shift widely between insurers, which is why shopping around often leads to substantial savings. Young drivers and those with recent claims usually pay more, while experienced, claim-free drivers often get the lowest rates.

Insurance Company Avg. Monthly (Full Coverage) Avg. Monthly (Min. Coverage)
Lemonade ~$117 ~$40
Liberty Mutual ~$253 ~$123
Travelers ~$131 ~$49
State Farm ~$179 ~$54
Farmers ~$246 ~$82
USAA ~$115 ~$35
GEICO ~$142 ~$45
Progressive ~$161 ~$52

How We Rank the Best Car Insurance Companies

Choosing car insurance can be confusing. Prices vary widely, coverage is full of fine print and every company claims to be the best. At CarPlanHero, we sort through the noise so you don’t have to. Our rankings are based on independent research, real-world data and what matters most when you actually need to use your insurance. 

We review each company across six key categories that reflect what drivers care about most: cost, coverage, service, ease of use, reliability and transparency.

Price and Value

Cost matters to most drivers. We compare sample quotes across different driver profiles and locations to see how competitively each provider prices its coverage. But price alone isn’t everything. We also look at the overall value of what you get, including discounts, bundling options and features that stretch your money further.

Coverage and Flexibility

A good insurance policy does more than meet legal minimums. We look at the standard protection included, like liability and collision, along with optional extras such as roadside assistance, rental coverage or accident forgiveness. We also consider how customizable each policy is. Companies that let you build a policy around your needs score higher.

Customer Experience

You only find out how good your insurance is when something goes wrong. We examine how providers handle claims, how easy it is to get help and how satisfied their customers are. Fewer complaints and more helpful service usually mean you can count on them when it matters.

Ease of Use

A great policy should be easy to use when you need it most. We factor in average claim turnaround times, transparency of the process, direct-to-vet payment availability, and verified customer feedback (e.g., Trustpilot). Faster, simpler claims with strong satisfaction scores rank higher.

Financial Strength

You want an insurance company that can keep its promises. We check independent financial ratings to make sure each provider is stable and well positioned to pay out claims, even during tough times. A strong financial foundation is essential for long-term trust.

From signup to claim filing, digital experience matters. We assess the quality of mobile apps, quote tools, document clarity, and how easy it is to tailor coverage. Modern, intuitive experiences earn additional credit—especially when paired with rapid claims.

A great policy should be easy to use when you need it most. We factor in average claim turnaround times, transparency of the process, direct-to-vet payment availability, and verified customer feedback (e.g., Trustpilot). Faster, simpler claims with strong satisfaction scores rank higher.

Transparency and Trust

No one likes surprises in their coverage. We look at how clearly insurers explain their policies, how upfront they are with terms and what kind of experience they deliver over time. Companies that earn trust by being open and consistent score higher in our rankings.

Our Weighting Framework

CategoryWeightWhat We Measure
Price and Value30%Real-world quotes, discount availability, bundling options and long-term affordability relative to coverage.
Coverage and Flexibility25%Standard and optional coverage types, customization features, and protection beyond state minimums.
Customer Experience20%Claims handling, responsiveness, complaint trends and satisfaction among verified customers.
Ease of Use10%Online quote process, mobile experience, account management and clarity of information.
Financial Strength10%Provider’s financial stability and capacity to pay claims during large-scale or high-cost events.
Transparency and Trust5%Clarity in policy terms, openness around pricing, and consistency in long-term customer treatment.

We review and update our rankings regularly. Some providers may pay us if you choose them through our site, but no company can pay to improve their score or position. Every review is based on the same data-driven process with the same editorial independence.

Update Cadence & Editorial Independence

We monitor pricing, policy details and consumer trends on a regular basis to keep our rankings current. This includes tracking rate changes, coverage updates, complaint levels and improvements to digital tools or claims processes. While CarPlanHero may receive compensation if you purchase through some of our links, no provider can pay to influence our rankings. Every evaluation is grounded in our independent scoring framework.

Data & Verification Sources

Accuracy and transparency are at the heart of every comparison we publish at CarPlanHero. Our research process combines verified industry data, third-party studies and regulatory insights to ensure every ranking is based on reliable, up-to-date information. We regularly review national insurance trends, claim performance and consumer feedback using trusted, independent sources.

  • National Association of Insurance Commissioners (NAIC) – regulatory body providing complaint data, rate filings and market share reports for all licensed auto insurers in the United States.
  • J.D. Power – independent research firm known for its annual Auto Insurance Satisfaction Study, which captures real customer experience with claims, pricing and service.
  • Consumer Reports – nonprofit organization offering independent analysis of policyholder satisfaction, pricing and claim handling for leading auto insurance providers.
  • AM Best – financial rating agency tracking the stability and claims-paying ability of insurers across the U.S. market.
  • State Insurance Departments – state-level resources that offer insight into approved filings, regulatory actions and complaint ratios by insurer and product type.
Together, these data points form the foundation of our review process. They help us create car insurance rankings that are not only informative, but also trustworthy – so you can make confident, well-informed coverage decisions.

Your Car Insurance Questions Answered

Car insurance helps cover the cost of unexpected expenses after an accident, theft or damage to your vehicle. You choose a policy with specific coverage limits and a deductible. If something happens, you file a claim and pay your deductible first, and the insurer covers the remaining approved costs up to your policy limits. Some insurers also offer digital claims and quick payouts, making the process faster and easier.

Car insurance can cover liability for injuries and property damage you cause, repairs to your own vehicle after a crash, damage from theft or weather, medical payments and more depending on your policy. What it usually does not cover are routine maintenance, mechanical breakdowns, wear and tear or damage that happens outside of covered events. Add ons may be required for extras like roadside assistance or rental reimbursement.

Yes, for almost all drivers. Not only is liability insurance legally required in most states, but full coverage can prevent major financial loss if your car is damaged or totaled. Even minor repairs can be costly, and insurance can protect you from bills that would otherwise be difficult to manage. The right policy provides peace of mind, financial security and compliance with local laws.

A higher deductible usually means a lower monthly premium, while a lower deductible increases your premium but reduces what you pay out of pocket in a claim. Higher coverage limits also cost more but offer greater financial protection. Choosing the right combination depends on your budget and how much risk you are comfortable taking on.

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