Every driver needs to consider what the best car insurance is, as they all should have some kind of insurance. It’s the only way to protect yourself from the potential financial burden that comes with a car accident.
There are lots of car insurance companies on the market, but which one is the best? In this guide, we’ll help you choose the best car insurance provider for your needs and budget.
Our Top Car Insurance Picks
There are many excellent car insurance providers in the United States, from big-name brands to emerging companies. These are some of the best auto insurance companies in the country and their advantages:
- State Farm: State Farm is one of the largest insurers in the country. It has a wide network of exclusive local agents. Premiums are slightly higher on average compared to some other companies, but coverage is often more extensive. State Farm car insurance offers numerous discounts that can reduce the cost of adding young drivers to your policy, such as the good student discount and the Steer Clear program.
- GEICO: GEICO is one of the most affordable car insurance options. Its premiums consistently cost less than average, and it has solutions for drivers with poor credit scores and a history of accidents. Complaints against GEICO are uncommon, so you’ll likely feel satisfied with the service.
- Progressive: Progressive makes connecting with insurance specialists easy. Its website is incredibly intuitive, and its customer service representatives are notably responsive. Its average rates are about the same as State Farm, and but it excels in more uncommon forms of insurance, such as motorcycle insurance.
- Allstate: Allstate functions as a one-stop shop for most insurance needs, with auto insurance being just one of its many services. Its prices are quite attractive to people with credit problems and teen drivers, and it’s known for its easy claims process and high customer service scores.
- USAA: USAA boasts low prices and excellent coverage, even for drivers with poor credit, teens, or those with a history of at-fault accidents. The only downside is that USAA insurance is only available to military members, veterans, and their families.
- Erie Insurance: PolicyGenius named Erie Insurance the best overall for its superior customer service, coverage options, and affordable rates for drivers with clean records. It’s only available in 12 states, but if you can get it, you’ll appreciate add-ons such as new car replacement, rate lock, and roadside assistance.
- Amica: Amica’s known for its excellent customer service and easy claims process. It has a wide range of coverage options and affordable premiums so long as you keep your driving record clean.
- Travelers: If you want to customize your policy, consider choosing Travelers. You can personalize your coverage with handy extras such as new car replacement and gap coverage and enjoy affordable rates, especially if you qualify for one of Travelers many discounts.
- Auto-Owners: Auto-Owners offers big discounts to people who bundle their car insurance policy with home insurance. While it’s not available in every state, it’s one of the rare companies with special classic car coverage.
- Nationwide: If you work from home or use public transport for your commute, Nationwide could be a good option. It offers a usage-based discount and special SmartMiles car insurance policies for people who drive fewer miles. Despite its name, Nationwide isn’t available in Alaska, Hawaii, Louisiana, or Massachusetts.
- AIG: AIG specializes in insuring luxury vehicles, including classic cars. Insurance add-ons, such as new car replacements and cash settlements after crashes, can give you real peace of mind. Impressive customer service ratings suggest it looks after its high-end clientele.
- Safeco Insurance: Safeco Insurance offers several unique perks that make it a real value for your money. Drivers with clean records could save over time with Safeco’s Claims Free Cash Back program, which returns a portion of the premiums that members pay if they haven’t made a claim in the last six months. Safeco also guarantees the repairs made by mechanics in its Guaranteed Repair Network for the vehicle’s life.
- NJM Insurance Group: NJM Insurance Group offers affordable car insurance premiums, local agents, and high claims satisfaction. From its start in New Jersey, this regional insurer has spread to Connecticut, Maryland, Ohio, and Pennsylvania.
- Liberty Mutual: Liberty Mutual has an extensive portfolio of insurance plans, including insurance for the home, renters, small businesses, and pets. It offers substantial discounts for members willing to bundle their policies.
Key Factors to Consider When Choosing an Auto Insurance Company
When choosing an auto insurance company, there are a variety of factors you should consider. Here are some key factors that many customers look for.
The Company’s Financial Stability
A financially stable insurance company is more likely to deliver its promises and give you the financial protection you’ve paid for. You can assess an insurer’s financial stability by reading reports from independent agencies such as A.M. Best, Moody’s, or Standard & Poor. Comparing several reports will give you a complete picture of an insurer’s financial strength.
Customer Service Quality
It’s important to choose an insurer with excellent customer service. The process of getting insurance from a good company shouldn’t challenge you. An experienced representative can guide you through the entire process, providing key information and answering any questions you may have. They can even examine your budget and driving habits to determine your best options for rates and coverage based on your unique needs. That level of service should continue even after you’ve purchased a policy, with frequent updates to ensure your satisfaction.
Policy Coverage and Pricing
Good insurance companies strive to balance their rates and their coverage. The right company offers the coverage you need for a reasonable price. Good insurers often offer discounts to make their policies more appealing. Some provide savings when you take a defensive driving course, pay on time, or maintain a clean driving record. You can also consider the type of insurance you need, as a full-coverage policy typically costs more than liability insurance alone.
Claims Processing Speed and Satisfaction
If you get into an accident, you want your insurer to process your claim quickly and pay out a fair settlement. Reading about other people’s experiences can help you decide how an insurer manages its claims. Insurance companies try to present themselves in the best light, so it’s best to review testimonials and ratings from independent sources such as Google Reviews and the American Customer Satisfaction Index.
How to Choose the Right Auto Insurance Company for You
Even if an insurance company seems good, make sure they suit your specific needs before purchasing a policy. Here are some things to keep in mind as you compare providers.
Assess Your Individual Needs
Decide what insurance policies you need, and make sure the companies you’re looking at offer them. It’s also important to find a policy that suits your budget. This may mean finding a provider that lets you pay your car insurance premium monthly rather than every six or 12 months. You also need a policy that suits your car. That could mean finding an insurer that offers classic car coverage. If you have other insurance policies, consider looking for a provider that offers a bundle discount.
Consider the Opinions of Others
Check your state’s insurance commissioner’s website for complaints about insurance companies in your local area to avoid those with valid complaints against them. However, someone complaining about an insurance company not meeting their needs doesn’t necessarily mean the company won’t suit you. Looking for positive reviews can help you make a balanced assessment.
Smaller insurance companies are sometimes tougher to investigate since they often don’t appear on the list at the state insurance commissioner’s office like their larger competitors. You might need to do more research by finding online reviews on various sites to figure out how they operate. This is well worth the effort, as, in some areas, smaller insurance companies can potentially offer rates considerably lower than their larger competitors. If any friends or family members use the insurers you’re considering, it’s also worth asking them about their experiences.
Evaluate and Compare Different Insurance Companies
A clear understanding of your needs, the opinions of others, and different policies can help you evaluate and compare the offerings of various insurance providers. Assess what you like about each policy and insurance provider and see which one meets your needs the best. Then, take steps to secure the right policy for you.
Insurance companies change their car insurance policies and their prices over time. Your needs may also change if you get a new vehicle, change your lifestyle, or have an accident. Comparing insurance providers every few years, especially after an accident or other claim, can ensure your current insurer is still your best and most affordable option.