Key Takeaways:
USAA is No. 1 in our rating, but its policies are only available to current and former military members and their families.
Auto-Owners was second in our rating and at or near the top of all subcategories we analyzed, including customer service and claims handling.
Car insurance rates vary based on many factors. Shopping around can help you find a policy that fits your budget.
Nobody likes to think about getting into a car accident, but it’s important to be prepared just in case. That’s where car insurance comes in. The right car insurance policy can protect you, your family, and your finances if you’re ever involved in an accident or your vehicle gets damaged.
In this article, we’ll cover everything you need to know about finding the best car insurance companies in the US. We’ll explain why car insurance is so important, what to look for when choosing a policy, and provide a detailed ranking of the top car insurance providers in the country.
Why is Car Insurance so Important?
Imagine you’re driving down the highway, and suddenly, you get into a minor accident. Your car and the other driver’s vehicle are also damaged. Without car insurance, you’d have to pay for all the repairs out of your pocket–which can get expensive quickly.
That’s why car insurance is so crucial. When you have a proper policy, your insurance company will cover the costs of repairs, replacements, and any damages to other drivers. This protects you from having to pay these hefty expenses yourself.
In most states, it’s required by law to have at least a basic level of car insurance coverage. However, experts recommend getting more than just the minimum required coverage to ensure you’re fully protected in case of an accident.
What to Look for in a Car Insurance Policy When shopping for car insurance, there are several factors to consider to ensure you get the right coverage for your needs and budget. Here are some key things to keep in mind:
Coverage Types and Limits: Understand the different types of coverage available, such as liability, collision, comprehensive, and personal injury protection. Make sure you have adequate coverage limits to protect yourself and your assets.
Deductibles: A deductible is the amount you’ll have to pay out-of-pocket before your insurance kicks in. Generally, higher deductibles mean lower monthly premiums, but you’ll have to pay more if you file a claim.
Discounts: Many insurance companies offer discounts like good driving records, multiple vehicles, safety features, etc. Be sure to ask about any discounts you may qualify for.
Customer Service: Look for an insurance company with a strong reputation for excellent customer service and efficient claims handling. Read reviews and ratings to understand how satisfied other customers are.
Cost: While cost shouldn’t be the only factor, finding an insurance policy that fits your budget is important. Get quotes from multiple providers to compare rates and coverage options.
Best Car Insurance Companies in the United States
The Best Car Insurance Companies Now that you know what to look for, let’s take a closer look at some of the top car insurance companies in the United States. Here’s a ranking of the best providers based on factors like customer satisfaction, coverage options, and overall value:
1] USAA
USAA (United Services Automobile Association) consistently ranks top for car insurance. However, it’s important to note that USAA policies are only available to active and former military members and their families.
USAA excels in handling customer service claims and offers some of the lowest rates on average. If you’re eligible for USAA, it’s worth considering.
Pros:
Available in all 50 states and Washington, D.C.
No. 1 for customer service, claims handling, and discounts
Cons:
Only available to military members, veterans, and their families
2] Auto-Owners Insurance
Auto-Owners Insurance is another top-rated car insurance provider known for its excellent customer loyalty and high likelihood of being recommended or renewed by policyholders.
While Auto-Owners only operates in 26 states, it offers competitive rates and performs well in customer service and claims handling.
Pros:
No. 1 for customer loyalty among companies in our rating
Some of the lowest sample rates we found for teen drivers and seniors
Cons:
Only available in 26 states
3] Nationwide
Nationwide is a great option for many drivers, offering various coverage options and discounts. It scores highly for customer service, claims handling, and overall satisfaction.
Nationwide’s rates are generally lower than the national average, making it a good choice for those looking for affordable coverage.
Pros:
Scores well for customer loyalty with strong survey responses
Rates are lower than the national average for all driver categories we researched
Cons:
The fourth-highest sample rates in our analysis for drivers with a DUI
4] State Farm
State Farm is one of the US’s largest and most well-known car insurance companies. It receives solid ratings, particularly for customer service and claims handling.
While State Farm’s rates are slightly above the national average, it offers competitive pricing for drivers with blemishes on their records, such as speeding tickets or accidents.
Pros:
Affordable premiums for motorists with less-than-perfect driving records
More than half of survey respondents say they’re very likely to renew their policies
Cons:
Sample premiums for senior drivers are higher than the national average
5] Geico
Geico is another major car insurance player known for its affordable rates and convenient online tools.
Geico ranks highly for being likely to be recommended and for offering good coverage options for seniors. Its rates are generally lower than the national average, making it a budget-friendly choice for many drivers.
Pros:
Sample rates are below the national average in all driver categories researched
Of those surveyed, more than 75% are likely or very likely to recommend Geico
Has a number of possible discounts to help lower costs
Cons:
Does not offer gap insurance
Other Notable Mentions:
Allstate: While Allstate’s rates are among the highest on average, it offers a wide range of discounts and strong customer service.
American Family: This company performs well in claims handling and discounts, with rates slightly above the national average.
Farmers: Farmers are known for their customer loyalty but tend to have higher rates on average.
Progressive: Progressive offers some of the lowest rates for drivers with a DUI on their record but scores lower in areas like customer service.
How to Find the Best Car Insurance for You Choosing the right car insurance company and policy is a personal decision that depends on your unique circumstances and needs. Here are some tips to help you find the best fit:
Understand your state’s insurance requirements: Ensure you know the minimum coverage levels required in your state.
Read customer reviews: Check out online reviews and ratings to understand how satisfied other customers are with a particular insurance company.
Customize your coverage: Consider the specific coverage types and limits you need based on your vehicle, driving habits, and personal assets.
Consider life events: If you’ve recently gotten married, added a teen driver to your policy, or experienced other major life changes, review and potentially adjust your coverage.
Get multiple quotes: Don’t just go with the first quote you receive. Shop around and compare rates and coverage options from several providers to find the best deal.
By taking the time to research and understand your options, you can find the best car insurance company and policy to protect yourself, your family, and your finances on the road.
Outlook on Car Insurance Rates It’s important to note that car insurance rates have been rising in recent years, which is likely to continue. Several factors contribute to these increasing costs:
Inflation and repair costs: As the cost of vehicle repairs and replacements continues to rise due to inflation and the increasing complexity of modern cars, insurance companies have to adjust their rates accordingly.
Distracted driving and accidents: With more drivers using smartphones and engaging in other distracting behaviors behind the wheel, accidents and insurance claims have increased, leading to higher premiums.
Climate change and severe weather: Severe weather events caused by climate change are damaging more vehicles, resulting in more insurance claims and higher overall costs for providers.
Rising medical expenses: If you or someone else is injured in an accident, the associated medical costs can be significant, impacting insurance rates.
Legislative changes: Any changes to laws or regulations regarding car insurance policies could also affect rates.
While these factors are largely out of your control, shopping around and comparing rates regularly is still important to ensure you’re getting the best possible deal on your car insurance coverage.
Remember, the key to finding the best car insurance is understanding your needs, researching your options thoroughly, and choosing a reputable provider that offers the right combination of coverage, customer service, and affordability. By taking the time to make an informed
decision, you can protect yourself, your vehicle, and your finances on the road.