Auto insurance rates are increasing globally, with the average cost in the United States rising by 12% from 2024 to 2025, according to Bankrate’s annual report. The Deloitte Center for Financial Services’ 2025 Global Insurance Outlook report also notes that auto insurance premium growth has outpaced inflation and disposable income growth in the United Kingdom and Australia over the past three years. The main factors contributing to this price hike are rising repair costs, changes in government regulations, and increasing climate disasters such as wildfires, flooding, and hurricanes.
The Zebra, an online insurance comparison platform, points out that recent tariffs in the US may also significantly increase auto insurance rates, particularly for newer cars with advanced technology. This could lead to a vicious cycle, where more uninsured drivers on the road cause insurance companies to increase rates further to compensate for the added risks and losses. As a result, some car owners may consider letting their policy lapse, with 33% of Americans considering this option, despite the legal and financial risks.
However, some insurers are customizing policies to meet clients’ financial needs and decrease claims costs. For example, some European insurers allow auto vendors to reuse spare parts for repairs, which is both economically sound and environmentally friendly. Others are offering usage-based insurance and telematics programs that monitor customer driving patterns to better personalize risk assessment and policy pricing.
To help consumers find these innovative insurers, Forbes has ranked the World’s Best Insurance Companies 2025 in three categories: homeowners, auto, and life. The rankings were created in partnership with market research firm Statista, which surveyed over 45,000 people across 15 countries. The respondents were required to have held at least one insurance policy within the last three years and were asked to rate their insurer based on criteria such as customer service, price performance, and claims service. The top 304 insurance companies with the highest scores were selected, with 155 companies making the auto insurance list.
The full list of the World’s Best Auto Insurance Companies is available, and it provides a useful tool for consumers to find the best insurance options for their needs. Additionally, the list allows insurers to evaluate their peers and identify areas for improvement. As with all Forbes lists, companies do not pay a fee to participate or be selected, ensuring the rankings are unbiased and reliable.