I know by now, you might have seen or read lots of blog posts on Google and the internet with lists of the Best Car Insurance Companies. Thus, publishers come up with titles like the 9 best car insurance companies, some – the top 10 best car insurance companies.
Likewise, others – the best Car insurance companies for 2020 and even 2021. Be it as it may, this post on the 7 best Car Insurance companies is highly based on data, statistics, and customers’ experiences. Including ratings from companies like J.D. Power and A.M. Only keep reading.
Again, what makes this post more authentic is that it follows suit the study carried out by value Penguin on the best car insurance companies.
The Basics of this post
When you say a car insurance company is the best. What do I use as a baseline? From all indications, the best car insurance companies provide a strong customer service experience for policyholders alongside cheap rates.
Although, most times you rarely come across the combination of both (good customer service and cheap rates). However, this post did its best to explore those company that puts these two factors at the forefront of their products and services. Alongside other features that set them above their competitors.
In selecting the best, I also considered the available and coverage range in a country. Although, customer factors like driving background and preferences also contribute to what makes a car insurance company the best among others.
Finally, this post ratings on the best car insurers is a decision drawn from research conducted by Value Penguin in which two factors were the focal point – Cost and customer service.
How I came about the Data and Statistics of this post
This post as earlier noted is based on data and not mere speculation or just shallow blog to blog post research. In other words, first, to obtain real and factual data, hundreds of thousands of quotes from across the country for various sample drivers were collected.
Secondly, to assess the quality of customer service, a survey of consumers, to track the official complaints lodged with the National Association of Insurance Commissioners was carried out.
Finally, the survey also incorporated feedback from third party markets research companies like J.D. Power and A.M. Here comes my finding…
The Best Car Insurance Companies by Availability
To begin with, yes of the truth, not all car insurance companies are created equal, but finding the right provider for your needs is essential. To simplify your car insurance buying experience, I started with the best by availability.
In the year 2020, the widely-available car insurance companies are:
- Farm Bureau Insurance
The amazing thing to take note of is that all the four-car insurers listed above offer low rates and strong customer service. And I must say that these companies are great choices regardless of your location and driving profile. However, USAA is only available to current and former military members and their families.
Best Car Insurance Companies 2020
To help you further, I decide to publish a table that I came across online while researching for this post. I think it will help give you insight into knowing which insurers are best and why they are the best
|Rank||Company||J.D. Power rating (of 1,000)||Financial strength rating||Standout quality|
|4||Farm Bureau Insurance|| |
|5||Erie Insurance|| |
|9||State Auto|| |
|12||American Family (AmFam)|| |
|848||A+ to A- (depending on the club)||Affordability|
|18||State Farm|| |
|20||Liberty Mutual|| |
|28||Country Financial|| |
So, to make things a lot more easier, a list of the best insurers with what factors, feature they are best at below will give you a snippet view of what you would expect from these insurers.
- Allstate – this insurer is widely known and acknowledged for their customer services experience.
- Erie – over the years, Erie has stood out because of its affordable policies. In other words, the company is best in selling policies at good rates.
- Root – this insurer is best and well recognized because it favor’s a set of individuals. To be specific, young drivers purchase policies from the Root insurance companies because it gives them extra advantages.
- State Farm – State Farm made the best list because it’s best for drivers with an accident history.
- MetLife- best for people with bad credit.
- USAA – this insurer is also play individualistic favoritism, in that it’s best for active military members and veterans.
- Esurance – This Company also made it to the list of best because it offers a great shopping experience to policyholders.
Allstate – Best for Customer Service
In the 2020 J.D. Power U.S. Auto Insurance Study, Allstate ranked among the top auto insurance providers in most U.S. regions and earned the top spot in the Florida region.
It’s important to look out for the essential first. Customer service is one basic factor you need to check before buying any insurance policy.
It’s an obvious truth, Allstate is known for dependable customer service. The insurance provider is also great for drivers who prefer face-to-face interaction, with agencies in all 50 states and Washington, D.C., where drivers can go in person to file a claim or purchase additional coverage.
Among qualifying insurers, 47% of Allstate customers said it had excellent customer service overall. This was bested only by USAA, which is available only to its members. Allstate and State Farm ranked top for claims satisfaction. The claims process is the key factor in customer service satisfaction.
|Rank||Company||% who say customer service is excellent||% extremely satisfied with the most recent claim||Average customer satisfaction|
Furthermore, below are other benefits and discount Allstate provides to its customers:
- With the Allstate Drivewise program, safe drivers can save up to 25% on their car insurance, plus 10% for signing up.
- If you sign a policy with Allstate at least one week before the policy becomes effective, you qualify for a discount.
- Drivers can save money on their insurance if their car is a current model year or one year prior and they’re the first owner.
Farm Bureau – Optional Choice for Best Customer Service
Farm Bureau offers cheap car insurance rates and excellent customer service, making it an attractive option for members. While there is an annual membership fee to join the Farm Bureau, this cost is typically outweighed by the potential savings compared to other insurance companies.
Erie – Best for affordable Policies
To start with, Erie Insurance offers auto insurance to buyers in 12 states — Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin — plus the District of Columbia.
No doubt, the price is important. With many insurers offering similar levels of customer service and types of coverages, the rates should definitely factor into your decision. If you’re shopping for the cheapest possible car insurance, we found that Erie has the most affordable rates on average.
That said, across different coverage levels, it frequently came out as the insurer of choice for those looking to save money.
Furthermore, Insurify’s database of millions of real car insurance quotes shows that USAA and Erie Insurance provide the cheapest average rates in the highest number of U.S. states.
On the other hand, State Farm boasts the lowest rates for most states among the top four biggest insurance providers in America.
Having said that, if you’re looking for cheap car insurance quotes in your area, use a quotes comparison site like Insurify to find real, ready-to-buy quotes from up to 10+ companies.
Farm Bureau Insurance, Auto-Owners, and State Farm Also Offer Affordable Rates
If you can’t access Erie, you can turn to Farm Bureau Insurance, Auto-Owners Insurance, and State Farm. These insurers are affordable for a minimum-coverage policy.
That said, Farm Bureau insurance will be available wherever an affiliate of the Farm Bureau Federation does business, while Auto-Owners is available in 26 states. State Farm is offered almost anywhere in the country.
|Type of policy||Erie average annual premium||National average annual premium|
Root – Best for Young & Good Drivers
Root Insurance offers drivers a promise most others don’t: auto insurance rates based primarily on how you drive. To get an auto insurance quote from Root, you first take a “Test Drive,” where you let the company’s app track your driving behavior for two to three weeks. The better your driving, the better the quote.
Most companies rely heavily on your demographic information, credit, and driving history to set rates. Root does, too, but they factor in that data to a lesser extent so that more of your quote is based on how you drive during your two- to three-week Test Drive. Here’s how it works.
You can begin either from Root’s website or download the app and opt into the quote process. You’ll have to allow the app access to your phone’s GPS to measure driving behaviors including speed, hard braking, time of day driving, turn speed, and ride smoothness. Root claims that the app can tell whether you’re a passenger through machine learning, so you shouldn’t get penalized for the behavior of another driver while you’re their passenger.
After monitoring is up, Root will either send you a quote or decline to cover you. The company is upfront that many drivers are refused a quote, saying on its site it doesn’t cover “bad” or high-risk drivers. For those who do get a quote, this is good news — by eliminating risky drivers from its customer base, Root can charge lower premiums overall.
GEICO – Optional for Young Drivers Especially Those looking for Cheap Rates
While the price of car insurance depends mainly on individual factors like your age, driving history, address, credit score, and the make and model of the car you drive, some companies are more reliably affordable than others.
Be it as it may, GEICO is one of the most popular carriers out there, and its wide array of discounts and consistently affordable rates are two of the reasons so many people choose GEICO.
Of course, the only way to ensure you’re getting a good price on car insurance is to compare quotes from multiple carriers.
Furthermore, Geico stacks up the discounts, giving drivers in some states a few bucks off for everything from clean driving records to good grades.
On the other hand, federal employees also get discounts, as do veterans, active military, and reservists. As for coverage, you can get all the basics plus mechanical breakdown coverage, which helps pay for repairs to newer cars with fewer miles.
State Farm – Best for Drivers with an Accident History
Although State Farm doesn’t offer accident forgiveness. However, if you already have a recent accident in your driving history, insurers are going to charge you higher rates than they would otherwise. But they won’t all penalize you to the same degree.
According to a Value Penguin analysis, it’s found that State Farm raises rates less than any other company when drivers have an at-fault accident in their recent history.
Using rates pulled from all over the country, it was found that State Farm only increased prices by 19% per year after a sample driver got into an accident. Below I list the insurers with the smallest and largest rate changes.
|Insurance company||Starting rate||After-accident rate||Percentage change|
USAA – Best for active Military members and Veterans
USAA is a financial services provider that accepts members only from military and ex-military households. Widows and widowers, spouses, and immediate family members of USAA members can also join.
More so, many of the company’s benefits are tailored to military personnel, such as the 15 percent discount on auto insurance for military members who garage their vehicles on base.
That said, USAA offers vehicle storage, safety feature, student, multi-vehicle, family, safe driver, and student discounts, among others.
Esurance – Best for Online Service Experience
Esurance is well known for bringing the car insurance claims process into the 21st century and has been lauded for providing a simple, user-friendly mobile and web experience for online users.
More so, its Photo Claims program allows customers to snap a smartphone photo of any property damage rather than setting an appointment with an appraiser, allowing for claims settlement in as little as one day. Digital natives: this could be the insurance provider for you.
That said, Esurance offers good driver, passive restraint. Also,, an anti-theft device, accident-free, multi-product, paid in full. Then, prepay, good student, defensive driver, driving habits, switch-and-save, multi-vehicle. Next, anti-lock brake, and homeowners discounts, among others.
Best for those with poor credit – Nationwide
Nationwide auto insurance rates are lower than average for people with poor credit. The insurance provider offers a full range of standard coverages and great optional coverages, including accident forgiveness and vanishing deductible.
Nationwide’s highly rated mobile app allows users to file a claim, pay their bill, and contact roadside assistance from their smart device. Conscientious drivers can enroll in Nationwide’s user-based SmartRide program to save up to 40% for maintaining safe driving habits.
Nationwide was ranked #2 in J.D. Power’s 2020 U.S. Insurance Shopping Survey for providing a satisfying purchase experience, while it ranked below average on overall customer satisfaction for the J.D. Power 2020 Auto Insurance Study.
How to find the best Car Insurance
Once you’ve narrowed your search down to a handful of top-quality insurance providers, it’s time to consider what features you’re looking for in your auto insurance policy.
Car insurance policies don’t come with a single limit and deductible. There are typically several coverage limits based on the type of claim a customer might make.
More so, most claims are categorized either as collision or comprehensive claims. Car insurance policies can also offer coverage to help you with the financial repercussions of an accident, such as medical bills and lost wages.
Most states set minimum liability coverage limits for their residents, but minimum coverage may not provide enough protection for you. Instead of just relying on those minimums, consider your situation and needs and set your insurance policy coverage levels and deductibles accordingly.
How to find an insurance company with coverages that fit your needs
All the best insurance companies offer the same standard coverages — some of which are required by law — that offer protection against the cost of personal injury and property damage on the road.
- Liability insurance (for bodily injury and property damage)
- Comprehensive insurance
- Collision insurance
- Personal injury protection
- Uninsured or underinsured motorist insurance
Beyond these standard coverages, insurers may offer some of the following unique optional coverages or features to appeal to specific types of policyholders. None of these are required by law and may not fit your needs, but if they do, it may be worth going with an insurer that has the coverage over one that doesn’t.
Accident forgiveness: Your first at-fault accident won’t affect your driving record.
Vanishing deductible: The deductible on your comprehensive and collision insurance gradually declines for each year you’re accident-free.
Mechanical breakdown coverage: Insurance covers the cost of repairing gradual wear and tear to the vehicle as a substitute for a car warranty from the dealer.
Ride-share insurance: For those who use their personal vehicle working for ride-share companies, this insurance fills the coverage gaps in the insurance policies provided by those companies.
Gap insurance: If you lease or finance your car, this covers the difference between the amount you owe your lender and the value of the car in the event of a total loss.
Emergency roadside assistance: Covers costs of expenses to assist you when your vehicle breaks down, such as towing, battery service, flat-tire service, and fuel delivery.
Rental car reimbursement: Covers the cost of a rental car if your vehicle is being repaired in the shop after a covered accident.
In summary, almost all insurers will offer the standard coverages we listed. And many — but not all — offer the additional coverages, too. However, outside of standard coverages, the extent of features an insurer offers may differ from state to state.
Always browse an insurer’s website and quote tool, or talk to a customer service representative, to make sure you understand all the coverages available to you.
The best car insurance company for you might be a local company
We’ve made our recommendations above based on insurers that are widely available throughout the country. But we’ve often found that some of the best and cheapest insurers for drivers are locally based.
Click on your state of residence below to see our recommendations for the companies with the best customer service reputations and affordability near you.
- New Hampshire
- The New Jersey
- New Mexico
- Again, New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- Washington, D.C.
- West Virginia
Things to consider when looking for the best car insurance company for you
Avoid mistakes and get the most affordable car insurance rate by following the National Association of Insurance Commissioners’ shopping tips:
- Call or visit your state’s insurance department website to find out what type of insurance your state requires. Most states require at least liability insurance with minimum coverage levels for bodily injury and property damage.
- Read auto insurance carrier reviews and ask friends and family members to recommend companies and agents.
- Request quotes from several companies and carefully compare the results. Pay attention to details like deductibles, payment options, discounts, and included and excluded services.
- Narrow down your options and then check with your state’s insurance department to ensure the company you choose is properly licensed.
- Ask insurance agents about details of the coverage. Will a history of speeding tickets affect your premium? Does the company consider credit history to determine rates? Will the coverage protect all drivers in your household? Does the policy cover rental cars when you travel?
- Always pay your premium on time. Otherwise, your coverage could lapse. Some insurers offer direct withdrawal from your checking account, which can help safeguard against lost coverage.
How to Get the Lowest Car Insurance Rates
If you don’t have the cash to cover a high deductible, yet can’t afford to pay a great deal in auto insurance premiums, don’t panic—there are plenty of other ways to reduce your rates.
Because different insurers use slightly different factors to determine how they’ll set the rates for your policy. Thus, only shopping around and comparing quotes from different insurance companies can result in substantial savings.
And choosing an insurance provider that offers numerous discounts that you’re eligible to claim can reduce your insurance costs even further.
Car Insurance Discounts
Rates of discount can vary from one company to another, but here are some of the most common car insurance discounts and how to qualify for them.
- Multi-product discount – Many insurance companies sell other products besides auto insurance (including homeowners insurance, life insurance, renters insurance, and so on). Buying more than one type of policy from an insurance company can get you a “bundle” rate.
- Multi-vehicle discount – Insuring more than one vehicle on a single policy may result in a discount.
- Loyalty discount – Sticking with the same insurance company through multiple renewal cycles may get you a better rate. Even if the company doesn’t promote such a discount, it’s worth asking if you can get one.
- Green discount – Drivers of hybrid cars or other green vehicles may be eligible for a discount on their insurance premiums.
- Good driver discount – If you haven’t had any accidents or traffic violations during the past three years, most insurance companies will give you a good driver discount. Some companies require as much as five years of perfect driving to earn this discount.
- Professional and organizational discounts – If you belong to specific organizations, such as the AARP, or are a member of certain professions, you may be eligible for a discount. Check with your employer, professional organization, and any other group with which you enjoy membership; you can also ask the insurance company if any such discount is available.
- Mature driver discount – Drivers age 50 and up who have taken and passed a licensed mature driver safety course may be eligible for this discount. Some companies set higher age requirements to qualify as a mature driver.
- Student discount – Students who meet certain requirements—such as landing on the honor roll or starting college—can sometimes get a discount on auto insurance.
Married couple discount – Believe it or not, you might qualify for a lower rate just by being married!
- Defensive driving discount – Passing a licensed defensive driving course can get you a discount on insurance, although you’ll likely have to retake the course every year or two to maintain the discount.
- Lump payment discount/prepayment discount – If you pay your entire insurance premium upfront instead of breaking it out into two installments, you can usually get a discount on the total.
- Homeownership discount – Owning a home may be enough to get you a discount, even if you don’t have your homeowner’s insurance through the same company as your auto insurance. Of course, getting both insurance policies from a single provider may allow you to combine this discount with the multi-product discount.
- Safety features discount – Certain vehicle safety features can get you a better rate. For example, anti-theft devices, daytime running lights, and anti-lock brakes are all desirable features to insurance providers.
- Reduced mileage discount – If you drive less than 10,000 miles per year, you can often get a better deal on your car insurance. Some insurers will require you to prove your low mileage by having you plug a mileage tracker into your vehicle.
- E-discount – Choosing to go paperless by opting to receive all your insurance communications via email will often result in a small discount.
- Automatic payments – Many insurers will provide a small discount for opting to have your insurance payments taken out of your bank account automatically.
Excellent Credit Helps You Get the Best Car Insurance
Many insurance companies, especially the larger ones, check your credit score before offering you a policy—and will often set your insurance rates based on whether or not you have good credit.
Further, residents of California, Hawaii, and Massachusetts are exceptions to this rule, as those states prohibit insurance companies from using credit scores to determine premiums.
If you have poor credit and don’t live in one of the three exempt states, consider requesting an extraordinary life circumstances exemption.
This exemption allows you to request insurance companies not to use your credit score when calculating your rate. This is particularly helpful if you can show that your poor credit results from specific circumstances beyond your control.
Such as serious illness, divorce, unemployment, and similar life catastrophes. The insurance company will likely ask you to provide documentary proof, so make sure you can back up your claim.
The single most effective way to fix credit problems, however, is to make all your credit card and/or loan payments on time, starting immediately.
On the other hand, if you can’t afford to make at least the minimum payments on all your debts, get in touch with some of your creditors to see if you can negotiate a deal. Many creditors will accept a somewhat smaller repayment if the alternative is forcing you into bankruptcy.
Once you’ve chosen a top-rated insurance provider and selected the correct policy limits, your work isn’t entirely done.
No matter how much you love your current policy, it’s still important to shop around every year to find more affordable or even cheap car insurance quotes from other providers.
If you get a much lower quote for the same type of policy from another company, you might take the quote to your current insurer and ask them to match it.
There’s an excellent chance that your current insurer will unearth another discount or two and reduce your premiums to keep your business. That way, you’ll get the best of both worlds: superior car insurance coverage and a competitive price. But know that it’s your need first. Before you choose the best. Be it as it may, this post has done well on this topic. Thus, the rest is what you will do yourself.
Don’t think too far, what exactly you are to do, read the ending part of the post.
In the End
To cap it all, if you read to this point, I trust the post was helpful. But, if proved otherwise. As a result, if there is a fact or info you would want me to correct or add to the post. Maybe a question, best of all, a thank you comment. It’s no big deal, use the comment box below. I delight to hearing from you.
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