Best Car Insurance for Families [2025]: Protect What Matters Most

When you have kids, there are all kinds of things to worry about, and finding the best car insurance may be further down your list of priorities. However, finding the best coverage to protect your family after an accident can go a long way toward providing peace of mind.

When I reviewed the best car insurance for families, several companies stood out with different benefits and drawbacks. State Farm and Allstate offer great coverage for teens and multi-driver households, but they're generally more expensive than other options (though discounts may offset some of the cost). Auto-Owners, Erie, and USAA offer policy perks and the lowest premiums for full coverage and liability-only insurance, but they're not available to everyone.

Regardless of the auto coverage you choose, ensuring your policy meets the needs of your growing family is priceless.

How we evaluate products

FinanceBuzz uses multiple factors when comparing auto insurance companies. These include cost and discounts, complaints and customer satisfaction, policy options, and ease of use. We also gather information from sites like Insurify, J.D. Power, A.M. Best, the National Association of Insurance Commissioners (NAIC), and the Better Business Bureau (BBB). We did not consider all available options.

Best car insurance for families

Company name	Excellent for	Average monthly full coverage cost	Average monthly liability-only cost
State Farm	Teen drivers	$115	$53
Allstate	Multi-vehicle families	$128	$59
USAA	Military families	$96	$46
Erie	Claims satisfaction	$90	$49
Auto-Owners	Affordable coverage	$67	$31

State Farm

While State Farm isn't the cheapest car insurance available, it does offer more ways to save money if you have a teenager or college student on your policy.

It offers a good student discount that could help you save up to 25% if your student maintains at least a 3.0 GPA, is in the top 20% of their class, or appears on their school's honor roll or dean's list. You might also receive additional discounts if your college student leaves the car at home during the semester or if the new driver takes a driver's education course.

State Farm's average monthly rates are $53 for liability-only coverage and $115 for full coverage. I currently use State Farm, and I like the coverage options and the fact that it's available almost everywhere. However, you must work with an agent to obtain a quote and start a policy.

Learn more in our State Farm review

Allstate

Although Allstate is generally more expensive, it may still be a good choice for families with multiple cars and drivers because of its bundling discounts. If you bundle your home and auto policies with Allstate, you can save up to 25% on your premiums. Similarly, if you bundle your renters and auto insurance, you may pay less for both policies.

Allstate averages $59 a month for liability-only coverage and $128 a month for full coverage. However, it received a below-average score in J.D. Power's 2024 U.S. Claims Satisfaction Study. It also earned a 1.02 on the 2024 NAIC Complaint Index. The average index is 1.0, so Allstate had slightly more complaints than expected for an insurer of its size.

Learn more in our Allstate review

USAA

USAA typically appears on lists of the best car insurance companies because it is available nationwide, offers competitive rates, and has consistently high customer satisfaction scores.

However, USAA is only available to current military members, veterans, and their immediate families. If you qualify, I think it's a good option for families, even though it doesn't have as many policy options as some other companies. It offers discounts, including some specifically tailored for military personnel and students.

Liability-only coverage averages $46 a month, the second most affordable on this list. Full coverage from USAA averages out to $96 per month. Additionally, USAA earned one of the highest claims satisfaction scores in J.D. Power's 2024 study.

Learn more in our USAA review

Erie

Erie Insurance is a regional insurance company available in only 12 states and Washington, D.C. It averages $49 per month for liability-only coverage or $90 per month for full coverage. However, like State Farm, you must request a quote through an Erie agent.

Erie stands out in claims and customer satisfaction. It ranked third in J.D. Power's 2024 survey and had a lower-than-average number of customer complaints per the 2024 NAIC Complaint Index.

If Erie offers coverage in your area, it's worth checking out the additional benefits. Its comprehensive coverage includes locksmith services, and auto glass repair is available for an extra fee. If your pet is injured in a car accident, Erie will also cover up to $500 per pet ($1,000 total) in vet bills.

Learn more in our Erie Insurance review

Auto-Owners

Although it's only available in 26 states, Auto-Owners is a good option if you're looking for ways to reduce car insurance costs.

Auto-Owners is a mutual insurance company offering auto, life, and property insurance. It averages just $31 per month for liability-only coverage. Full coverage averages $67 per month, and policy discounts are available to help offset the cost. However, you must work with an independent agent to get a quote or purchase a policy.

While Auto-Owners is more affordable than other carriers, it may not have as many policy options. However, I still think it's a good option if coverage is available in your area. The company offers standard policies and a few specialty options, including road trouble service (which encompasses roadside assistance and locksmith services) and various GAP coverages.

Learn more in our Auto-Owners review

What impacts car insurance costs for families?

Several factors can affect the cost of car insurance for a family, such as:

• The number of vehicles and drivers in your household
• Your marital status
• The age and gender of drivers on the policy
• The driving records of everyone on the policy
• Type of vehicle
• Your policy coverages, deductibles, and limits
• The number of miles you drive
• Where you live
• Your credit score (depending on state law)

For example, households where both spouses drive luxury vehicles and have teenage drivers will likely have higher car insurance premiums. A family with one older model car and just one or two adult drivers in their 30s or 40s listed on the policy will likely have lower rates, depending on their driving records.

If you live in a rural area where accidents and vehicle crime are relatively low, you'll also likely have lower insurance premiums. People who live in cities with large populations have a higher chance of being involved in an accident, having their vehicle vandalized, or being the victim of theft, which leads to higher insurance costs.

In general, listing multiple cars on one policy (if you keep the vehicles at the same address) can help you save money since some insurance companies offer a multi-vehicle discount. Adding drivers to an existing policy instead of buying a separate policy can be particularly cost-effective if you have teenage drivers, who pay significantly more for car insurance.

How to get cheap car insurance for your family

If you want to find ways to save money on car insurance (and who doesn't), these are a few things that can help.

• Comparison shop: Get at least three quotes for comparable policies to ensure you're getting the best deal.
• Look for family-oriented discounts: Some insurance companies have discounts for having more than one driver listed on the policy, which can help you save.
• Bundle your home and auto policies: Take advantage of savings for having multiple policies with the same insurer.
• Consider usage-based programs: If you don't drive much, a pay-per-mile car insurance company can help you save money. Just ensure you have the correct amount of coverage.
• Adjust your coverage and limits: Periodically reevaluate the type of coverage and coverage limits to ensure you're protected but not paying more than necessary.
• Consider higher deductibles: If you have savings to afford higher out-of-pocket costs for a claim, consider choosing higher deductible amounts to lower your premiums.
• Select the right vehicles: Driving luxury vehicles can be enjoyable, but it often results in higher insurance costs. Choose a car that's affordable and has added safety features.

FAQs

Bottom line

Protecting your family with the right car insurance is a vital part of your financial well-being. As you search for ways to save money on car insurance, consider factors beyond price like customer satisfaction, policy options, and available discounts.

Compare quotes from at least three companies and read customer reviews to ensure your coverage fully protects you and your family.