Auto insurance is there for you during some of the most stressful times of your life. Whether it’s a little fender bender that gets your blood boiling or a full-on car wreck you caused, insurance is essential.
Think of it as a logical part of your financial planning. Imagine, for a second, that you hit an expensive car like a Mercedes or Porsche, and you were at fault.
Would you have the money to pay for those repairs without insurance?
There’s more to it than just expense, too.
First, you might be in trouble with the state for driving without insurance. Secondly, as you’re responsible for the accident, you’ll have to pay for the damages.
So, you can expect a civil suit from the other driver or their insurer. If you don’t have the cash to pay those expenses, you could lose assets that you own to pay for it.
You might be the most careful driver in the world, but an accident can happen in seconds. That’s why it’s important to partner up with the right insurer from the start.
To help you find that insurer, we’re going to look at the best car insurance companies and rate them on value, coverage, claims management, and customer service.
The Best Car Insurers This Year: Our Top 10
- Allstate Insurance
- Auto-Owners Insurance
- Liberty Mutual
- Root Insurance
- State Farm
- The Hartford
These are the top ten companies operating in the United States today. We advise getting quotes from at least two or three of them—if not all of them— to get the best possible deal.
Let’s take a closer look at what each of these companies has to offer.
The Top 10 Best Auto Insurance Companies
Allstate offers excellent coverage and the possibility of saving money through discounts. If you’re looking for the company providing the best discounts, this is it.
Clients give the company a big thumbs up, and there are very few complaints. Many people commented on how well the company arranged a rental car for them.
A significant advantage of this company is that it focuses on customer experience. You can access information through their website, or if you’d prefer to have someone to guide you, you can opt for instant chat, or go into one of the company’s branches.
- They have an extensive network of offices and agents.
- You get discounts for installing anti-theft devices, using passive restraint (such as airbags and automatic seatbelts), and bundling.
- The website is user-friendly.
- Other companies have better ratings overall.
- It’s more costly if you choose not to bundle your policies.
This insurer isn’t in the spotlight much. It appears that they prefer to focus on delivering the best customer service and products.
This was evident in a J.D. Power report issued where Auto-Owners insurance either rated among the best or better than most in each section.
The company gets kudos for settling claims as quickly and effectively as possible.
The company was founded in 1916, giving them over a century of experience in the field. This a good thing for the person being insured – you know they’re able to pay out your claim.
Auto-Owners insurance also has 6,300 independent agents, which is great because you can get your broker to assist you or get a full explanation of your options with ease.
- Well-established and highly-rated company
- Excellent customer service
- Claims processing is quick
- You have access to individual agents and therefore more hands-on advice.
- The company does offer some discounts
- If you aren’t able to get the discounts, the premiums are pricey.
- The website is a bit clunky and hard to navigate
Esurance is a subsidiary of Allstate, but they have some innovative products of their own. You get to choose what is most important to you and customize your policy accordingly.
Esurance was one of the pioneers when it comes to cutting out the broker or agent. You just fill in the step-by-step wizard on their site to create the perfect plan for you and ask for a quote.
We do need to warn you, though, that you’ll pay more for a customized plan than a generic one. On the upside, at least you’re not paying for coverage you don’t need.
With everything handled online, you can get a quote at a time when it suits you.
- A straightforward quote and application process
- You get to customize your coverage
- Rates for customized plans might be a little higher
GEICO’s mascot is one of the best-loved in the United States. Using a lizard as their spokesmodel gives you an idea of how innovative this company is.
Getting a quote is as simple as heading over to their website and completing a few forms. If you accept that quote, you’re also able to submit your claims and make payments on the site.
J.D. Power ranked Geico as average or above average in each category.
There are also some nice value-addons that you can take advantage of, too:
- Roadside assistance in an emergency
- Coverage for breakdowns
- Insurance for ridesharing
- Auto Repair Xpress
- Different riders to choose from
- Customer reviews are good
- Some level of customization is possible
- The premiums are not the best
- Claims can be difficult to process
For a more in depth review of GEICO, click here.
Liberty Mutual Insurance
Liberty Mutual Insurance has been operating since 1912. It now insures upwards of 1.5 million vehicles and is continuously praised for its excellent customer service ratings.
J.D. Power rated it better than most in the following categories:
- Local Agents
- Insurer Website
- Policy Offerings
With those strong approvals from J.D. Power, Liberty Mutual is a solid choice for auto insurance.
- Turnaround time for claims is 24 hours
- Standard plans offer excellent coverage, and you can add to this as necessary
- They’ll forgive your first accident— meaning that if an accident occurs, your premiums will stay the same.
- They incorporate new car replacement and better car replacement.
- They have a deductible fund: When you take up this option, your deductible decreases by $100 straight away. Then, each year afterward, it decreases by another $100
- The rates are not great if you choose not to bundle your insurance.
Progressive is another company with a solid reputation and a loyal fan base. J.D. Power praises the company for how well they handle claims, their competitive pricing, and innovative product design
Most impressive, perhaps, is that they insure over 18 million drivers. This translates into around one out of ten US drivers being insured by this company.
They offer the following attractive discounts: Safe driver, pay-in-full, multi-car, and multi-policy
We also love the Snapshot program, because it rewards clients who drive well. It’s based on how much driving you do and how well you handle your car. If you’re considered a safe driver, you’ll get a nice discounted rate.
If you bundle together your auto and home insurance, you’ll automatically save 5 percent without sacrificing coverage.
- Competitive quotes
- Name Your Price Tool allows you to set your budget upfront
- Get an extra 5 percent off by bundling your home and auto insurance
- Their Snapshot program customizes your rate in accordance with the way you drive
- Lease or loan payoff opportunity
- Roadside assistance
- If your driving record is less than stellar, you should avoid this company because you’ll pay higher rates.
Root Insurance is a new car insurance company that started out regional but is expanding rapidly and should be nationwide by 2020. Tech savvy consumers seem to love them.
Root has the most unique way of purchasing car insurance. They have you download an app that tracks your driving for 2-3 weeks. It tracks your speeds, your braking, how far you travel daily etc. At the end of 2-3 weeks they’ll take all that data and provide you with a quote.
At that point you can decline the quote and keep what you currently have OR accept the quote and switch carriers through their app.
- Great for safe drivers. You’ll most likely save money over other insurers.
- It’s easy to use.
- If you’ve got a lead foot, I wouldn’t even bother trying them.
State Farm Insurance is almost a hundred years old. Started in 1922, it has built a reputation as a highly-stable company that offers superb customer service. It has a high rating, is very well-established, and is a strong company.
State Farm has a range of agents and offices nationwide, allowing you to get that customizable advice that is so important.
The Insurance Information Institute found that State Farms pulls in over $40 million in premiums. This means that they top the list when it comes to the number of individuals insured.
The company provides customer support through:
- It’s offices
- Its mobile app
It also makes it simple to get your quotes on the internet if that is something that you’d prefer
- You have access to in-person advice.
- The website is user-friendly.
- The app is excellent.
- You have discounts available to you.
- We’d like to see them offer more discounts
Hartford is one of the oldest insurers operating in the United States. With more than two centuries under its belt, it has proved to be reliable and well-run.
Hartford received top marks in all categories of J.D. Power’s report—except for one. They were marked down for not having local agents.
Don’t assume that because the company is old, it’s old-fashioned. They use the most up-to-date tech to enhance customer experience and offer 24/7 support via the phone or through their site.
- You get discounts for having multiple policies with the company.
- The company received the highest ratings for management.
- You may renew your policy, guaranteed, for as long as you are able to drive.
- AARP members get the best benefits (which is a plus if you are a member)
- The claims process is more complicated than it needs to be
USAA’s best claim to fame is in client satisfaction. Clients of this company are happy with the settlements that they received when involved in an accident. J.D. Power awarded the company full marks in this area.
There is a catch, though. If you haven’t served in the United States military, or have no close family member that has, you don’t qualify for insurance through USAA.
This insurance is aimed at service people, veterans, and their nearest relations. The company is proud to support our troops.
- Client satisfaction levels are the best out of all companies.
- The company delivers top-notch service.
- There are a lot of different options.
- Premiums are affordable.
- Only available to those who are or were in the military or their immediate family (such as spouses and children).
There are a lot of factors to consider when it comes to understanding auto insurance, so it makes sense to do your homework before settling on any one company.
Choosing a favorite from the list above is a tough choice. The best option for you will depend on what your needs are. If you need the best deal possible, consider Allstate Insurance. They have the most diverse range of discounts.
Every company that we’ve covered above has a long-standing history and is highly rated. You can choose any of these companies with full confidence.