This blog covers all the important aspects of the best car insurance companies. Find out more about the advantages
Through careful analysis of crucial variables that will impact your customer experience, we have removed the element of guessing from the process of selecting the finest car insurance providers.
Based on typical premiums for different types of drivers, available coverage options, complaints received, and ratings for collision claims from experts in auto body repair, we assessed major auto insurance providers.
List of Best car insurance companies
1. USAA
Due to outstanding customer approval ratings, USAA retains its top rank for a second consecutive year. Drivers who qualify for USAA insurance often benefit from affordable premiums, superior claims management, and above-average customer service. Customers of USAA are the most satisfied, and they are also the most likely to renew their insurance and refer USAA to other motorists.
Pros:
- Rates for drivers that are generally below average
- Among other insurance, the best in terms of client service
Cons:
- Available only to USAA members
2. State Farm
For the majority of drivers, State Farm’s premiums are often below average, and for those with a DUI or accident on their record or for teenage drivers, it offers rates that are quite competitive. However, individuals with bad credit might wish to look into other insurance providers. Drivers with bad credit pay $3,654 in annual premiums on average, which is about $900 higher than the national average.
Recall that many factors such as your age, location, driving history, credit history, and type of vehicle affect the cost of your auto insurance.
Pros:
- Excellent overall scores for policy renewal and customer service
- Low rates for the majority of drivers
Cons:
- For drivers with bad credit, premiums are higher.
3. Travelers
Many companies offer insurance premiums that are below average in several categories we analyze, and policyholders give high scores for resolving claims. But when it comes to customer service, Travelers does not do as well.
The majority of the demographic profiles we looked at and the national average shows cheaper premiums overall. The insurance receives top honors from policyholders in the area of Best Insurer for Claims Handling.
Pros:
- Based on customer survey data, rated No. 1 for claims processing
- The normal premium is lower than the nationwide average.
Cons:
- Poor customer service for policyholders
- Less likely than other insurers to approve customer suggestions
4. Auto-Owners Insurance
When compared to the leading competitors, Auto-Owners Insurance offers somewhat better than average prices for safe drivers. When it comes to average rates for safe drivers, State Farm and Geico both do better, while Auto-Owners outperform Farmers, Progressive, and Allstate.
Because they are less likely to submit car insurance claims, good drivers are preferred by insurance firms. Even so, you can save money by looking around for auto insurance at the time of your policy renewal to see if you can find a lower rate.
Pros:
- Provides a respectable 14% discount, on average.
- Offers accident forgiveness and a decreasing deductible as policy add-ons.
- Provides coverage for new automobile replacements.
- The usage-based insurance program (TrueRide) from Auto-Owners might help good drivers perhaps cut their auto insurance premiums.
Cons:
- Drivers with DUIs had high average rates.
- When an adolescent is added to a policy, there is a significant average increase of roughly $3,580.
5. Erie Insurance
Erie has solid coverage options, and its procedures for handling accident repair claims received high marks. These benefits more than make up for Erie’s vehicle insurance prices, which vary depending on your driving history.
Pros:
- Keep your rate the same until you make specific changes to your policy, like adding or withdrawing a car, it’s simple to budget expenses.
- Average prices that are reasonable for people having a speeding or accident citation on their record.
- It is advantageous for new car owners because it provides gap insurance and coverage for brand-new cars.
- Accident forgiveness and disappearing deductibles are additional add-on coverage options offered by Erie.
- Received a top rating for its handling of claims from crash experts.
Cons:
- Typical rates are high for drivers with poor credit.
- It is pricey to include a teenage driver on your policy.
- More complaints about its car insurance filed with state insurance departments than is typical.
What Kinds of Car Insurance Are Necessary?
The following types of car insurance are typically mandated by states.
- The majority of states require liability insurance. Car liability insurance covers injuries and property damage you cause to other people. A decent general rule of thumb is to purchase liability insurance in an amount sufficient to replace any damages that may be awarded against you in court.
- Uninsured motorist protection (UM): Required in some states and voluntary in others. If a driver collides with you and doesn’t have liability insurance, uninsured motorist insurance will cover your medical bills and other costs, as well as those of your passengers. When a driver with insufficient insurance causes a collision that results in injuries, a related plan called underinsured motorist coverage assists with paying your and your passengers’ medical bills.
- If you have a car loan or lease, you must have comprehensive collision insurance. These two distinct coverage options are frequently offered in tandem. In the event of an accident, theft, fire, flood, extreme weather, falling items, vandalism, or collisions with animals, collision and comprehensive insurance will cover the repair costs.
- Some states need personal injury insurance. The auto insurance system in some states is no-fault. No matter who was at fault, in these jurisdictions you can file smaller injury claims with your motor insurance. These claims are covered by personal injury protection, which is both necessary and available in some no-fault states.
Wrapping up
Considering all factors, USAA is the top auto insurance provider, per our data and the findings of our customer poll. Only active-duty and retired military personnel, together with their families, have access to USAA insurance products, though. The top auto insurance provider for motorists who are ineligible for USAA membership is State Farm, which comes in at No. 2 in our poll.
Though USAA and State Farm are at the top of the rankings, it’s a good idea to take into account and contrast several insurance providers who qualified for our list of the Best Car Insurance Companies.
