The Best Car Insurance Companies (2024): Expert Rankings and Insights
The Best Car Insurance Companies (2024)
Which car insurance company is best?
When you're looking for a car insurance policy that fits your budget, it's important to remember that the cheapest option may not be the best. That's why we've created a helpful resource to help you determine which car insurance companies are considered the best by customers and independent reviewers.
Our experts have compiled the top-rated car insurance companies based on a rigorous methodology. We looked at a number of factors, including customer satisfaction, price, and our own survey data to help you find the best car insurance carrier for your needs.
Our top rated car insurance carriers
Below you'll find the top three car insurance companies as rated by our experts. We looked at many different facets of each company, including financial stability, customer satisfaction, overall cost and more.
1st place: USAA
Thanks to its top-notch customer satisfaction scores, USAA received the highest overall rating according to our review methodology. Eligibility is limited to those in the military community.
2nd place: NJM
NJM also scored well in both third-party ratings and customer satisfaction survey to take 2nd place overall.
3rd place: Erie
Available in twelve Eastern and Midwestern states, Erie rounds out the top three with great scores all around.
| Rank | Company | Overall score |
|---|---|---|
| 1 | USAA | 4.6/5 |
| 2 | NJM | 4.6/5 |
| 3 | Erie | 4.6/5 |
| 4 | Amica | 4.5/5 |
| 5 | State Farm | 4.5/5 |
| 6 | American Family | 4.4/5 |
| 7 | The Hartford | 4.4/5 |
| 8 | Nationwide | 4.3/5 |
| 9 | Allstate | 4.3/5 |
| 10 | Mercury | 4.2/5 |
Methodology — how we reviews insurance companies
The team of insurance experts considers the company's standing in five main categories to come up with an overall rating. These metrics are weighted according to importance and are detailed below:
- Price (20%): Using the base profile detailed below, we compared the company's average rate with the national average. If it surpassed this average, we gave a lower rating; if it fell below, we awarded a higher rating.
- Coverage (20%): The highest-scoring companies offer a variety of coverage options, including bundling options, roadside assistance, telematics, beyond-basic coverage levels, and a variety of other coverage types.
- Customer service (30%): We averaged ratings from JD Power, the NAIC complaint index to come up with a rating for the company's customer service. In instances when a company is not rated, we may use alternative rating agencies such as the Better Business Bureau and Trust Pilot.
- Financial strength (10%): We use AM Best to determine a company's financial standing. In some cases when a company is not rated by AM Best, we may use an alternative measure such as Demotech.
Car insurance companies with the highest customer satisfaction
Among the ten largest insurers by market share in the United States, USAA took first place, topping nearly every category, followed by American Family Insurance and Travelers.
| Rank | Company | Customer Satisfaction Rating (out of 10) |
|---|---|---|
| 1st | USAA | 8.78 |
| 2nd | American Family | 8.40 |
| 3rd | Travelers | 8.15 |
| 4th | State Farm | 8.14 |
| 5th | GEICO | 8.07 |
| 6th | Allstate | 8.04 |
| 7th | Liberty Mutual | 8.0 |
| 8th | Farmers | 7.98 |
| 9th | Progressive | 7.96 |
| 10th | Nationwide | 7.53 |
Below you'll find the top companies for each of these individual factors.
Methodology:
These results are based on a survey of 2,722 U.S. insurance policyholders assessing satisfaction with their car and homeowners insurance providers. The survey was conducted using Survey Monkey and designed by our in-house team. It aimed to collect detailed insights from a census-balanced sample reflecting age, gender, and region.
Questionnaire
The questionnaire included demographic questions about age and gender identification and detailed inquiries into insurance experiences. Key topics:
- Duration with insurance provider and coverage specifics, including teen drivers.
- Claim filing experiences and satisfaction with claims handling.
- Customer service interactions, trust in providers, and likelihood of recommending their insurance.
- Use and satisfaction with digital tools and usage-based insurance programs.
Respondents rated their satisfaction on a Likert scale from 1 to 10 and provided qualitative feedback.
Data Analysis
Data were analyzed focusing on descriptive and inferential statistics to identify satisfaction trends and demographic impacts. Data cleaning and weighting were applied to ensure accuracy, alongside strict confidentiality protocols to protect data security.
Customer Satisfaction Survey: Categories
Our survey looked at six customer experience categories:
Best for claims satisfaction: Erie
No one wants to have to use their insurance. Still, you want the process to be as seamless as possible when you must. For this section, we asked respondents about their overall satisfaction with how their car insurance claims were handled by their company. Respondents who had not filed a claim with their current insurer did not answer this question.
The company that came out on top was Erie. USAA came in a close second, while Auto Club (AAA) rounded out the top three. Below is a list of the top five best insurance companies with the highest claims satisfaction scores:
| Rank | Company | Customer Satisfaction Rating (out of 10) |
|---|---|---|
| 1st | Erie | 8.61 |
| 2nd | USAA | 8.5 |
| 3rd | AAA | 8.31 |
| 4th | American Family | 8.3 |
| 5th | Allstate | 8.12 |
Best for customer service: USAA
The way you are treated by customer service can leave a lasting impression. This section focused on how satisfied customers were with the customer service received from their insurance company. This involved interactions including renewing a policy, paying a bill, or simply asking a question. USAA came out on top with the best customer service score overall. See who rounded out the top five below.
| Rank | Company | Customer Satisfaction Rating (out of 10) |
|---|---|---|
| 1st | USAA | 8.74 |
| 2nd | Erie | 8.57 |
| 3rd | Farmers | 8.22 |
| 4th | American Family | 8.16 |
| 5th | Travelers | 8.08 |
Most likely to recommend: Erie
One of the best indicators of satisfaction with your coverage is whether you would recommend it to friends or family. The following companies were considered the most likely to be recommended to others by current customers.
| Rank | Company | Customer Satisfaction Rating (out of 10) |
|---|---|---|
| 1st | Erie | 9.5 |
| 2nd | USAA | 9.3 |
| 3rd (tie) | GEICO | 9.1 |
| 3rd (tie) | Liberty Mutual | 9.1 |
| 3rd (tie) | AAA | 9.1 |
Most trustworthy: USAA
This part of the survey asked if customers perceive their insurance company as trustworthy. The following companies were deemed the most trustworthy among our survey respondents.
| Rank | Company | Customer Satisfaction Rating (out of 10) |
|---|---|---|
| 1st | USAA | 8.83 |
| 2nd | Erie | 8.51 |
| 3rd | American Family | 8.21 |
| 4th | AAA | 8.19 |
| 5th | Farmers | 8.03 |
Best for online satisfaction: USAA
Moreso than ever, a company's online presence is a major part of the customer experience. The insurance sector has, on the whole, been slower to embrace technological shifts. However, the following companies have made an impression on customers by providing good online experiences, whether through apps or company websites.
| Rank | Company | Customer Satisfaction Rating (out of 10) |
|---|---|---|
| 1st | USAA | 8.52 |
| 2nd | American Family | 8.35 |
| 3rd | Travelers | 8.3 |
| 4th | AAA | 8.2 |
| 5th | Progressive | 7.75 |
Best companies: Mid-sized and smaller
Outside of the top ten largest car insurers by market share, there are a number of other great companies that our respondents ranked. We found these carriers to be ranked the best.
Note: Due to the smaller size of these companies and limited responses, some of the rankings are determined from scores gathered from last year's survey.
Best companies by region
Some car insurance companies only serve a small portion of the country. However, this does not mean that they are inferior. In fact, there are a number of smaller carriers that offer top-of-the-line coverage options and exceptional customer service. We've put together a list of some of the best car insurance companies by region, highlighting regional and mid-sized carriers that offer great coverage options.
Northeast
Including the following states: CT, MA, ME, NH, NJ, NY, PA, RI, VT
- Erie Insurance
- New Jersey Manufacturers
- Amica
- Arbella
- Plymouth Rock
Southeas
Including the following states: AL, AR, DE, FL, GA, KY, LA, MD, MS, NC, SC, TN, VA, WV
- Farm Bureau Insurance - Tennessee
- Erie Insurance
- Alfa
- Auto-Owners Insurance
- North Carolina Farm Bureau
Midwest
Including the following states: IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD, WI
- Auto-Owners Insurance
- Shelter Insurance
- Indiana Farm Bureau
- Westfield Insurance
- Erie Insurance
Southwest
Including the following states: AZ, CO, NM, OK, TX, UT
- Texas Farm Bureau
- Auto Club of Southern California
- CSAA Insurance Group
- Country Financial
- Auto-Owners Insurance
West
Including the following states: AL, CA, HI, ID, MT, NV, OR, WA, WY
- Wawanesa
- PEMCO
- Grange Insurance
- CSAA Insurance Group
- Country Financial
Other rankings
We reviewed both national and regional auto insurance carriers in an effort to aid in your car insurance shopping. We evaluate insurance companies based on a number of factors, including customer complaints, fiscal strength, and reputable third-party reviews. Take a look at the overall scores of the most popular car insurance companies in the country below, and check out a similar ranking for the best home insurance companies.
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