Bankrate strives to help consumers navigate their auto insurance shopping experience, no matter where they are in their financial journey. Since our founding in 1976, we’ve built a strong reputation for creating valuable content that gives people the confidence to make smart and informed decisions about insurance and other personal financial needs.
Whether you are purchasing a new vehicle, need help filing an insurance claim or have questions about your coverage options, Bankrate has resources to guide you. We help more than 100 million consumers learn about and shop for insurance each year, through a series of product comparison tools and educational content, including roundups of the best and cheapest car insurance companies.
What are Bankrate Scores?
Many of the car insurance companies we review include a Bankrate Score in the analysis, which is out of 5.0 points. We calculate Bankrate Scores based on third-party ratings from organizations like J.D. Power, AM Best, Standard & Poor’s (S&P), the National Association of Insurance Commissioners (NAIC) and Moody’s. We also factor in average annual premiums in all 50 states and Washington, D.C. based on data from Quadrant Information Services, using a standard driver profile.
From a qualitative perspective, we also assess an insurance company’s policy offerings, including coverage and discount options. We look at each company’s online and mobile resources, plus its local agency network (if it has one), when calculating Bankrate Scores. These factors can help you find a company that is easy to work with, fits your budget and offers the coverage you need. Combined, the metrics we analyze help you get a well-rounded view of each carrier.
How we calculate Bankrate Scores
Our Bankrate Score model is designed to encompass the factors that consumers care about most. While our team includes licensed insurance agents, we’re also insurance buyers, just like you, and our time in the industry has helped us understand what consumers want and need from an insurer. The factors we analyze include annual cost, which we gather using our sample driver profile. When choosing a provider, many people look to cost, reliability and customer experience as the top indicators of a good insurance company. We provide a weighted score indicating how well an insurer performs across these different areas, including:
- Average annual rates gathered from Quadrant Information Services
- Financial strength ratings
- Customer service and experience ratings
- Coverage and discount options
- Nationwide availability
- Digital policy management options
- Online and mobile resources
- Local agency availability
- 24/7 customer service
- Corporate sustainability programs
We divided these factors into three tiers, based on what matters most to consumers. Tier 1 factors include average premiums and third-party scores; Tier 2 includes coverage options and availability; and Tier 3 includes digital tools, local agencies, customer service availability and corporate sustainability programs. Tier 1 was weighted most heavily in our analysis, while Tier 3 was weighted least heavily.
How do we get average premium data?
To source up-to-date, accurate insurance premium data, we work with Quadrant Information Services, a pricing analytics leader in the property and casualty industry. Bankrate’s insurance editorial team analyzes average premiums for all ZIP codes and carriers in every U.S. state and Washington, D.C. To keep our average estimates accurate, we weight rates based on population density and run new data reports on a monthly basis to keep up with rate filings and other carrier adjustments.
Our base rates for car insurance reflect the average cost of coverage for a single 40-year-old driver with a clean record and a 2022 Toyota Camry. Our base rates for home insurance are based on married male and female homeowners with good credit and a clean claim history. For each type of insurance, we analyze certain default coverage limits based on the typical needs of drivers and homeowners.
Why we consult J.D. Power ratings
When compiling Bankrate Scores, we place emphasis on a provider’s current J.D. Power ratings. J.D. Power is one of the most trusted third-party sources that collects customer feedback and rates insurance companies based on overall customer satisfaction, purchase satisfaction and claim satisfaction. Insurance carriers that score above-average in J.D. Power studies are typically among the best in the industry.
Why we consult AM Best ratings
AM Best is a well-known organization that assigns ratings to licensed insurance carriers based on their historical financial strength. These ratings are calculated based on a company’s past debt obligations, balance sheet, operating performance and more. Carriers with excellent or better financial strength ratings may be less likely to go out of business or declare bankruptcy. The rating indicates that a carrier may be financially stable enough to meet claims obligations.
How are Bankrate Scores used?
Bankrate Scores are used across our auto insurance pages whenever we review a single provider, compare multiple providers or publish a roundup of the best providers in a specific category. These scores can be useful when comparing several providers to gain a better understanding of how each carrier stacks up against the rest.
The four main pages where you will find Bankrate Scores include:
- Best car insurance companies: This resource is a roundup of the best car insurance companies overall on the market. We determine the best providers based on our in-depth research and a company’s subsequent Bankrate Score. We also provide an overview of the best car insurance companies at the state level, offering analysis based on in-state driver needs and circumstances.
- Best cheap car insurance companies: This guide features the best cheap car insurance companies in different cities at the time of publishing. While cost is a driving factor for these lists, we also review and select companies based on their customer service ratings and coverage options. The companies highlighted represent some of the cheapest providers based on average premium data from Quadrant Information Services and available discounts.
- Best home insurance companies: This guide offers insight into Bankrate’s pick for the best home insurance companies overall for U.S. homeowners. The rankings reflect insurers with a Bankrate Score of at least 3.5 for home insurance, along with state-level rankings to help homeowners tailor their search.
- Best cheap home insurance companies: For homeowners who specifically prioritize affordable coverage, we created a resource that analyzes average rates alongside the overall quality marker of Bankrate Scores. Companies listed on this page have some of the lowest average premiums, but only insurers with a Bankrate Score of at least 3.0 were included.
You’ll also find Bankrate Scores on some of our other pages, such as guides to the best home or auto insurer in your state.
How we determine the best insurance companies
Bankrate’s editorial team identifies the top car insurance companies in various categories using quantitative and qualitative data. We start by evaluating companies individually, calculating its Bankrate Score and then determining which companies stand out among the rest.
We also identify the top companies for specific types of drivers. For example, we figure out which of the best auto insurance companies are the cheapest in every state by comparing average premiums and highlighting the cheapest companies based on age, driving record and credit history — in states where those factors apply.
If we cannot calculate a Bankrate Score due to missing third-party ratings, the editorial team will weigh the available information, including average rates, policy features and availability, to gauge a company’s competitiveness.
Why you can trust Bankrate
At Bankrate, we follow a strict editorial policy to ensure that every car insurance company is reviewed and rated accurately and objectively. We are committed to creating content that is worthy of your trust, which is why we have insurance professionals write and review our content.
One of our primary goals at Bankrate is to make insurance content more accessible to our readers, regardless of their financial literacy or stage in life. Our insurance editorial team strives to help consumers choose the right auto insurance for themselves and their families, which is why we create timely content to help every driver throughout the insurance shopping process — from getting a quote to filing a claim, and everything in between.
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