Geico is the best car insurance company for affordable coverage, offering the lowest average premiums for both minimum and full coverage. It also enjoys a relatively high J.D. Power score for customer satisfaction, an A++ ranking from AM Best and an A+ rating from the Better Business Bureau (BBB). Finally, Geico has a wide range of insurance products, including homeowners insurance and renters insurance, that make it easy to bundle and save on coverage.

Average annual premium for minimum coverage: $365

Average annual premium for maximum coverage: $1,297

Nationwide offers one of the widest car insurance networks, with coverage available in 47 states and the District of Columbia (all states except Alaska, Louisiana and Massachusetts). This is an important distinction because multiple companies competing for your business equals lower premiums. 

When it comes to coverage, Nationwide offers some of the lowest average car insurance rates for maximum coverage and some of the highest for minimum coverage. If you can bundle your insurance products and save on overall coverage, Nationwide could be a solid choice for you. 

Average annual premium for minimum coverage: $549

Average annual premium for maximum coverage: $1,383

According to the National Association of Insurance Commissioners (NAIC), State Farm is the largest auto insurance company in the U.S., based on market share. It enjoys the highest average J.D. Power score of the companies on this list, making it best-in-class for customer satisfaction.

State Farm’s full-coverage premiums are some of the lowest around, while minimum coverage rates are squarely in the middle. State Farm enjoys an A++ rating from AM Best, indicating superior financial health. Beyond auto insurance, State Farm offers a wide range of other insurance products, so be sure to bundle whatever you can into your quote. You may be able to save money on the total cost of your policy. 

Average annual premium for minimum coverage: $456

Average annual premium for maximum coverage: $1,397

Every car insurance company offers various discounts to incentivize safe drivers, good students and customers insuring multiple vehicles. The more discounts that are offered, the higher your potential savings. Farmers Insurance offers 22 discounts on car insurance, which is the most of any company.

You can save money by enrolling in paperless billing, bundling other insurance products, paying premiums on time and other activities. Regardless of which company you insure your vehicle with, you should familiarize yourself with the various available discounts. With Farmers, you’ll have more options than with other companies. 

Average annual premium for minimum coverage: $550

Average annual premium for maximum coverage: $1,524

USAA stands out for enjoying high rankings on multiple factors. For starters, it offers the lowest average premiums. Equally important is customer satisfaction as no one wants to deal with a difficult customer service experience when filing a claim. Luckily, USAA enjoys the highest J.D. Power customer satisfaction scores, so you know you’re “in good hands.” 

The only catch? It’s not available to everyone — only military members, veterans and their immediate family members are eligible for a USAA car insurance policy.

Average annual premium for minimum coverage: $354

Average annual premium for maximum coverage: $1,209

Car insurance covers damage, theft and bodily injury in case of an accident. You pay a monthly (or bi-annual) premium based on the coverage and policy type needed. In case of an accident, you can file a claim and your insurance company will pay out damages based on various criteria. Filing claims can sometimes lead to higher premiums, so you’ll want to do so cautiously. Car insurance companies offer lower premiums to drivers with clean records, as they’re less likely to file damage claims. 

Car insurance has five main types of car insurance coverage you can incorporate into your policy. Each one offers varying degrees of protection in case of a loss. At a minimum, you will need liability coverage, which protects against damage and bodily injury. Depending on the level of protection you’re looking for, you might want to add additional coverage to your policy. Here’s a look at some of those options:

• Liability coverage: Basic coverage that is mandatory in most states. There are two types of liability coverage, protecting a policyholder against personal injuries (bodily injury liability) and property damage (property damage liability).
• Collision coverage: Covers repairs stemming from a collision with an object rather than another vehicle. 
• Comprehensive coverage: Protects your vehicle in case of damage caused by non-vehicular collision. Covered events include theft, weather-related damage and vandalism. 
• Personal injury protection: Pays your medical expenses and lost income from an accident. 
• Uninsured motorist coverage: Covers your vehicle against hit-and-run accidents.

Car insurance is generally paid on either a monthly or bi-annual basis. If you’ve already paid your premium for the policy period and want to cancel it, you’ll generally get a partial refund for the unused portion.

In case of an accident, you can file a claim with your insurance company by calling the claims department. Major insurance companies have mobile apps that allow you to file a claim quickly and upload all the necessary documents in one place. 

Car insurance companies pay out claims after investigating and reviewing all related documents. Be sure to consult your policy for any limitations regarding your coverage. 

Car insurance is an inevitable, costly expense for most Americans, and many companies compete for your business. Understanding how premiums are priced and requesting multiple quotes can save money while ensuring your vehicle is protected against damage and loss. Factor in customer satisfaction ratings and you’ll increase your odds of being a happy customer if you ever have to file a claim.