Best Car Insurance: Car insurance is a must for drivers across the U.S., but finding the right company can feel like a chore. With prices climbing and coverage options galore, picking the best insurer matters more than ever. In July 2025, the average cost for full coverage is around $2,677 a year, or about $223 a month, according to recent data. But don’t worry—some companies stand out for their low rates, great service, and extra perks. Based on the latest rankings, here’s a look at the top car insurance companies in the U.S. for July 2025, with Travelers taking the #1 spot.
Why Travelers Tops the List
Travelers is the go-to choice for many drivers this year, earning high marks for low rates and tons of coverage options. Their average full coverage premium is about 26% below the national average, making it a budget-friendly pick for all kinds of drivers, from teens to seniors. They also offer cool features like accident forgiveness and a decreasing deductible for safe drivers. Plus, Travelers gets fewer customer complaints than most, according to the National Association of Insurance Commissioners (NAIC). Whether you’re a new driver or have a not-so-perfect record, Travelers has plans that fit.
USAA: A Win for Military Families
If you’re in the military, a veteran, or part of a military family, USAA is hard to beat. It’s got some of the cheapest rates—around $139 a month for full coverage—and ranks sky-high for customer satisfaction. In fact, USAA scored the highest in J.D. Power’s 2024 Auto Insurance Study across every region, even though it wasn’t officially ranked due to eligibility rules. They also throw in unique perks, like up to 60% off for storing your car on a military base. The catch? It’s only available to military folks and their families.
American National: The Low-Cost Leader
For drivers hunting for the cheapest rates, American National is a standout. Their average full coverage premium is less than half the national average, making it a top pick for budget-conscious folks. They’re especially great for teens or drivers with a DUI or accident on their record. American National also offers a bunch of discounts, like savings for bundling home and auto policies. The downside? They’re not available in every state, so you’ll need to check if they cover your area.
Other Top Contenders: Best Car Insurance
Geico and Progressive also make the cut for July 2025. Geico is a favorite for its super-low rates and easy-to-use online tools. You can get a quote in minutes, and they offer up to 16 discounts, like savings for safe drivers or good students. (Best Car Insurance) Progressive shines for high-risk drivers, with programs like Snapshot that track your driving to lower rates. Both companies are available nationwide and have solid customer service, though Progressive’s J.D. Power scores are a bit lower than others.
|
Company |
Average Annual Premium |
Key Strength |
|---|---|---|
|
Travelers |
$1,987 |
Low rates, great coverage options |
|
USAA |
$1,668 |
Best for military, high satisfaction |
|
American National |
$1,200 |
Cheapest rates |
|
Geico |
$2,100 |
Easy online quotes, many discounts |
|
Progressive |
$2,300 |
Good for high-risk drivers |
What to Look for in Car Insurance
When picking a car insurance company, it’s not just about price. Check out the coverage options—like liability, collision, or comprehensive—to make sure they fit your needs. Look at customer reviews and complaint records from places like the NAIC or J.D. Power. Digital tools, like mobile apps for filing claims, can also make life easier. And don’t forget discounts! Bundling home and auto, being a safe driver, or even owning an electric car can shave hundreds off your premium.
How to Save on Car Insurance in 2025
With car insurance costs up 16% this year, saving money is key. Start by comparing quotes from at least three companies—rates can vary by hundreds of dollars. Ask about discounts, like multi-car or good driver deals. If you drive less, look into usage-based programs like Travelers’ IntelliDrive or Progressive’s Snapshot. Also, consider raising your deductible if you can afford it; a $500 deductible could lower your premium by 10-20%. Finally, check if bundling home and auto insurance can score you a discount of up to 25%. By shopping smart, you can keep more cash in your pocket while staying protected on the road.