Having car insurance is the law in 48 out of 50 states -- so no matter what kind of vehicle you own or how much you use it, chances are you'll need to be covered.
If an accident occurs, a car insurance policy will provide bodily injury liability coverage or protection against property damage. Other types of specialized insurance can cover damage to your own car for a variety of reasons (collision coverage), medical expenses incurred due to accidents, plus incidents with uninsured or underinsured drivers. Some car insurance companies even have comprehensive car insurance coverage options that can be bundled with homeowner's insurance (if you own a home) or that can include roadside assistance. Depending on the insurance you get, you could have a coverage limit or full coverage, though most states require all drivers to at least have liability insurance.
The costs covered in an auto insurance quote can accumulate for an uninsured or underinsured motorist. Having comprehensive coverage can help keep out-of-pocket costs associated with car insurance premiums in check. Note that the monthly premium on your car insurance policy typically won't cover wear and tear on a vehicle, damage incurred by driving under the influence or by drivers not listed on the car insurance policy, and damage to the engine as a result of oil leakage.
There are an estimated 300 car insurance providers in the US, ranging from those operating at a nationwide level to smaller companies. So sorting through them to determine the best car insurance companies and offers can be intimidating. Before committing to a car insurance rate with a nationwide insurance company, it's worth checking to see if you have any well-reviewed statewide options in your area.
"Once you have a clear picture of how you use your car and your priorities, you're ready to shop for insurance," says Janet Ruiz, director of strategic communication at the Insurance Information Institute. "Generally, it's a good idea to compare policies from at least three different insurers. You'll want to consider fundamental factors such as coverage and price."
It's also worth delving into an insurance provider's history. "Be sure to check out the claims handling of the company before buying insurance," says Dan Karr, CEO and founder of ValChoice. "Insurance that won't pay a claim was a waste of money, no matter what the price."
There is also a lot that goes into a car insurance policy. A car insurance quote for "standard coverage" may include factors such as injury liability, property damage, accident forgiveness and roadside assistance. Having a teen driver on your insurance policy can also impact your insurance premium. Then there's gap insurance or personal injury liability insurance coverage and more. "Check prospective policies too for secondary options that could prove beneficial," says Ruiz, "such as glass coverage, which often comes without a deductible, or reimbursement for a rental car." How can you compare all these things as you're trying to choose which auto insurance coverage is best for you?
"Try to compare apples to apples when choosing your insurance policy," says Ruiz. "All of the policies that you review should have the same types and amounts of coverage. It is difficult to compare policies, for instance, if one provides $50,000 in property damage liability coverage, another only $30,000, and a third $100,000." Understanding what goes into insurance coverage will help you make the best decision for your particular situation, but where do you start?
You could do a deep dive into each auto insurance company's website to better understand their coverage level, but we're making it easier to find the best car insurance coverage for you by narrowing down the list. We've picked the 10 best insurance companies in the country, based primarily on audience satisfaction, as measured by the J.D. Power 2019 US Auto Insurance Study. The study measures five criteria: interaction, policy offerings, price, billing process and claims. 42,759 customers were polled from February through April 2019.
The top-scoring auto insurance policy overall was Geico, reporting high customer satisfaction levels in all regions of the country and making it the No. 1 auto insurer in the US. This insurance carrier is also routinely ranked among the cheapest car insurance coverage providers (and a big premium is a big expense), which undoubtedly contributes to the satisfaction.
That said, your auto insurance rates will ultimately be determined by personal factors, such as where you live, your credit score (for the best rates, a score of 770 or above is recommended) and the type of vehicle you drive, as well as its age and whether you've had an accident. The good news is that you can actually lower your insurance coverage costs if you maintain a safe driving record or work on your credit score -- or your grade point average.
Further, depending on your insurance provider, you can bundle your car insurance policy with life insurance, homeowners insurance or renters insurance, among others. As mentioned above, there are so many factors that go into so-called "standard coverage," it's all dependent on the kind of insurance product you're looking for.
"For young drivers, there are discounts for taking drivers' certification courses and maintaining above a B average," says Karr. "Several discounts are based on the vehicle, including safety features like remote engine shutoff, anti-lock brakes, and airbags. There are also discounts for storing the vehicle in a garage. Many insurers provide discounts for insuring multiple cars through the same company and for owning a home and insuring the home through the same company."
When you do find a solution, Ruiz explains how you can do your due diligence: "First, double-check that an insurer is licensed in your state by visiting the website of your state's insurance division, where you can also review information about consumer complaints filed against insurance companies. In addition, you can check review websites and talk to friends about their experiences with insurers. Finally, take a few minutes to make sure prospective insurers are in good financial standing. Financial ratings agencies will provide this information. Online tools will often provide ratings information as well."
5 things to know before you sign up for car insurance
1. What kind of coverage does your state legally require you to have? In most states, bodily injury liability coverage and property damage liability are necessary to drive, but you'll want to check the specifics of insurance premiums with auto insurance providers where you live.
2. What sort of coverage do you want? Most car insurance companies offer many different policies with various coverage options that cover a variety of damages and risks, so your first step should be to determine your risks and how to compensate for them.
3. Which auto insurers are best? We've got this covered in detail.
4. It's important to shop around. Even the cheapest car insurance company may not offer the best rates for someone in your situation. Likewise, you may want a more comprehensive plan that makes more sense at another car insurance company.
5. What payment plan is best for you? Some companies offer a variety of ways to pay (such as annually versus monthly, or with transfer of electronic funds), so you can figure out which one works best for you and then request it.
Before getting into the list, it's worth mentioning that not every car insurance company has your best interests at heart, both when offering auto insurance quotes or after you've been in an accident. A Buzzfeed News report from August revealed that State Farm, Farmers and Erie Insurance are three of a number of insurance companies that have paid off law enforcement to investigate their customers for fraud. All of those companies have been excluded from this ranking.
|
Geico |
830 |
|
Allstate |
826 |
|
Progressive |
818 |
|
Auto-Owners Insurance |
841* |
|
Esurance |
836* |
|
Liberty Mutual Insurance |
810 |
|
Nationwide |
808 |
|
Travelers Insurance |
818* |
|
Safeco |
810* |
|
USAA |
891* |
* Not available in every region of the US, or to every person in the US. This affects overall placement.
Geico's clever commercials ensure that it remains one of the best known car insurance options in the country, but its customers know the company for the great service and support it offers. Geico's 97% customer satisfaction rate speaks for itself, as does its long list of honors, including the most desired insurer according to Kanbay Research Institute. You know, just in case the gecko isn't enough to convince you that you want its insurance coverage.
Allstate was one of the rare car insurance companies ranked on every single one of J.D. Power's regional customer satisfaction lists -- and was No. 1 in Florida. Allstate prides itself on its scope of coverage options and offers a host of car insurance discounts that, depending on your circumstances, could easily make it the most cost-effective auto insurance policy available for many motorists.
A giant in the insurance world with over 18 million customers, Progressive manages to attract and retain so many satisfied customers with continued commitment to saving its customers money on their car insurance rates. Progressive was the first auto insurer to offer safe-driving discounts, which makes the company a great option for people with a good driving record. Even today, customers who switch to Progressive save an average of $699 per year.
Auto-Owners Insurance may not have the flashy marketing presence of the competition, but how many of them can say they've been around almost as long as cars have? Established in 1916, the company has nearly 3 million car insurance policy holders across 26 states. Its high rankings from J.D. Power might prompt you to check if it has coverage where you live.
Ranked the No. 1 auto insurer in California, Esurance in quickly making inroads around the country (the company operates in 43 states). A division of Allstate, Esurance promises customers that switching or signing up for car insurance can be as easy as possible, or "painless," as the company puts it.
Users agree with the assessment, as reviews on the website call attention to how fast and easy it is to sign up, either online or with the Esurance app. And calling all introverts, you likely won't have to talk with an insurance agent directly to get set up.
Operating globally, Liberty Mutual is the fifth-largest property and casualty insurer in the world. Still, the company makes it very clear that its business starts with you and the first step in that journey is getting an insurance coverage quote.
Most insurers offer free car insurance quotes on their websites, but Liberty Mutual offers you a discount for using its own -- you can save up to 12% off your rate by getting a car insurance policy quote online.
With over 90 years covering drivers, Nationwide has learned a thing or two about what keeps customers happy (and in turn, what keeps them customers). The company's list of visions and values shows exactly where its priorities lie.
Top ratings from a variety of outlets (such as A.M. Best, S&P and Moody's) would suggest that it's working. Those values extend to employees, as well -- Nationwide was ranked No. 53 in Fortune's most recent list of the "100 Best Companies to Work For."
Among the many plans Travelers offers is a car insurance coverage policy that you can customize based on your needs. Rather than upsell users, Travelers offers a host of resources (in the form of blog posts) designed to educate motorists prior to policy purchase. An informed customer is a happy customer.
A division of Liberty Mutual, Seattle-based Safeco has been in the car insurance business for over 85 years and has been a national presence for more than two decades. Safeco partners with local agents who can devote the time and attention that customers need in order to get all of their individual car insurance questions answered and requests met.
Judging entirely based on satisfaction, the United Services Automobile Association would take the top spot in our rankings. What affects the USAA's ranking is that its scope is narrower than those of most other auto insurers, as the company only offers coverage to service members, veterans and their families. That said, USAA offers prices that even beat Geico's, with customers who switch saving an average of $707 per year.
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