Top-Rated Car Insurance Companies: Your Definitive Guide
Top-Rated Car Insurance Companies: Your Definitive Guide
When it comes to finding the right car insurance company, the options can seem overwhelming. However, based on our comprehensive research, we've identified the top-rated providers in 2024. Let's delve into the details of each to help you make an informed decision.
1. USAA:
- Rating: 4.9 out of 5
- Average Annual Rate: $1,335
- Pros:
- Available in all 50 states and Washington, D.C.
- Top-rated for customer service, claims handling, and discounts
- Cons:
- Limited to military members, veterans, and their families
- Savings vs Overall Average: $733
Why USAA Tops Our Rating: USAA excels in every aspect we evaluated, from customer service to discounts. It boasts the lowest average rate overall and offers competitive prices for various driver categories.
2. Auto-Owners:
- Rating: 4.7 out of 5
- Average Annual Rate: $1,619
- Pros:
- No. 1 for customer loyalty
- Competitive rates for teen drivers and seniors
- Cons:
- Available in only 26 states
- Savings vs Overall Average: $449
Why Auto-Owners Shines: Auto-Owners impresses with its top-notch customer loyalty and competitive rates, particularly for high-risk drivers like teens and seniors.
3. Nationwide:
- Rating: 4.1 out of 5
- Average Annual Rate: $1,621
- Pros:
- Strong customer loyalty
- Rates below national average
- Cons:
- Higher rates for drivers with DUI
- Savings vs Overall Average: $447
Why Nationwide Stands Out: With solid customer loyalty and competitive rates, Nationwide offers reliable coverage for various driver demographics.
4. State Farm:
- Rating: 4.0 out of 5
- Average Annual Rate: $2,150
- Pros:
- Affordable premiums for drivers with imperfect records
- High customer renewal rate
- Cons:
- Higher premiums for seniors
- Savings vs Overall Average: -$82
Why State Farm is Worth Considering: Despite slightly higher premiums for some demographics, State Farm provides affordable coverage options for drivers with blemished records.
5. Geico:
- Rating: 3.9 out of 5
- Average Annual Rate: $1,778
- Pros:
- Competitive rates across all driver categories
- Extensive discount options
- Cons:
- No gap insurance
- Savings vs Overall Average: $290
Why Geico Deserves Attention: Geico offers below-average rates and a plethora of discounts, making it an attractive option for cost-conscious drivers.
Best for Customer Service: USAA and Auto-Owners
USAA, the top-rated company in our report on the best auto insurers, is also No. 1 in our subcategory rating for customer service. Its policies are exclusive to military members, veterans, and their families. Auto-Owners, which is available to the general public, is second for customer service. Sixty-four percent of USAA policyholders surveyed described themselves as completely satisfied with the ease of contacting the company’s customer service, while 60% said they were completely satisfied with the service provided.
Auto-Owners’ customers provided similarly positive feedback: 61% were completely satisfied with how easy it was to get in touch with customer service and 61% were happy with the service they received.
Nationwide was No. 3 in this subcategory and State Farm was No. 4.
Best for Claims Handling: USAA and Auto-Owners
USAA and Auto-Owners were Nos. 1 and 2, respectively, for claims handling. When asked about the ease of filing a claim, 65% of USAA customers surveyed were completely satisfied; 67% were completely satisfied with how their claim was resolved. For Auto-Owners, those numbers were 44% and 61%, respectively.
American Family was No. 3 for claims handling, while Nationwide and State Farm are tied at No. 4.
Best for Customer Loyalty: Auto-Owners
Auto-Owners scored 4.9 out of 5 for customer loyalty. Sixty-four percent of its policyholders surveyed said they were very likely to renew their policy; 56% described themselves as very likely to recommend the company to someone shopping for car insurance. USAA was No. 2 with a score of 4.8. Nationwide (4.2) is third, while State Farm and Farmers are tied at No. 4 with scores of 4.0 out of 5.
Best for Seniors: USAA and Auto-Owners
Our rating of the best car insurance companies for seniors relied on survey results from respondents 55 and older. USAA, which only seniors with a direct or family connection to the military can purchase, was No. 1, followed by Auto-Owners. Both companies have competitive rates for this age group: USAA has the most affordable rates for female and male senior drivers, while Auto-Owners is the fourth-cheapest for female senior drivers and the third-cheapest for male seniors.
Erie, which has the second-lowest sample rates for female and male senior drivers, is No. 3, while Geico is no. 4.
Best for Discounts: USAA and Auto-Owners
The top companies in our rating for discounts, USAA and Auto-Owners, received similar feedback in this area from respondents to our survey. About 44% of both USAA and Auto-Owners policyholders surveyed indicated they are completely satisfied with policy discounts offered by each company. American Family was No. 3 for discounts, while Allstate and State Farm are tied at No. 4.
Most Likely To Be Recommended: Auto-Owners
Auto-Owners is the company in our rating that’s most likely to be recommended. The top spots in this subcategory are occupied by:
Most Likely to be Renewed: Auto Owners
Among companies in our rating, Auto-Owners is the No. 1 most likely to be renewed, with USAA No. 2. The top insurers are:
Choosing the right car insurance is an important decision and there are various factors that will shape what coverage is right for you. Here are tips for identifying the best insurance coverage to meet your needs:
- Understand your state’s laws. Stay up-to-date with the regulations and laws governing car insurance in your state. Depending on where you live, your minimum car insurance requirements will vary.
- Check customer reviews. Read what other people are saying about insurance companies. This feedback can give you a good idea about the company’s customer service, reliability, and claims processing.
- Customize your coverage. Make sure your insurance coverage fits your needs. When you know what you need you can avoid having too much or too little protection.
- Adapt to life events. As your life changes, so should your insurance. New life events such as getting married or adding a teen driver to your policy may change the insurance coverage you need. Shop around to find the best insurance coverage for your changing lifestyle.
- Lender requirements. If you’re financing a vehicle, know what insurance your lender requires you to maintain on your vehicle. Most lenders require you to purchase physical damage insurance coverage (comprehensive and collision) to protect their financial interest.
State/City | Overall Average Rate |
|---|---|
Alabama | $1,354 |
Alaska | $1,294 |
Arizona | $1,626 |
Arkansas | $1,814 |
California | $1,782 |
Colorado | $1,663 |
Connecticut | $1,567 |
Delaware | $2,231 |
Florida | $2,551 |
Georgia | $1,432 |
Hawaii | $1,241 |
Idaho | $992 |
Illinois | $1,266 |
Indiana | $1,190 |
Iowa | $1,215 |
Kansas | $1,486 |
Before purchasing a car insurance policy, it’s important to determine exactly what type of coverage you’ll need. Below are the seven major types of car insurance and what they cover.
Collision insurance provides coverage when your vehicle “collides” with something else, such as another vehicle or telephone pole. If you are involved in a single vehicle rollover or a hit-and-run accident, collision insurance may also cover repairs.
This type of insurance protects your vehicle if it is damaged by something other than a collision, such as a natural disaster, fire, theft, damage from an animal, or vandalism. Comprehensive insurance coverage is not usually required by state law, but purchasing a policy may be beneficial, especially if you don’t think you could cover the costs of an unexpected repair or possible vehicle replacement.
Full coverage car insurance is a combination of coverage that protects your vehicle in case of an accident or damages from outside circumstances. Most commonly, full coverage policies include liability, collision, and comprehensive coverage. In addition, full coverage could also include coverage required by your particular state, such as uninsured/underinsured motorist coverage, personal injury protection (PIP), or medical payments (MedPay).
Guaranteed asset protection, or gap insurance, is for drivers who finance or lease their vehicles. If your car is stolen or totaled, gap insurance covers the difference between your car’s value and your outstanding lease or loan balance. It does not cover any other accident-related costs.
For example, let’s say the actual cash value of your vehicle is $20,000, but the balance on your loan is $24,000. Should your car get totaled, gap insurance would cover the remaining $4,000 you’d otherwise pay out-of-pocket.
Liability car insurance coverage provides financial protection if you’re legally responsible for an accident that resulted in bodily injury, death, or property damage. It may also apply if someone else is driving your vehicle and is at fault for an accident. Typically, liability insurance is required by state law, however, the amount of coverage you need can vary. Note that liability insurance does not cover damages to your own vehicle.
If you borrow, rent, or share a car with someone else, you may qualify for a non-owner car insurance policy. This type of insurance provides basic liability coverage if you’re driving someone else’s vehicle and are at fault for an accident. It can also cover you if you’ve lost your license and require proof of insurance (SR-22) to reinstate your license. Non-owner car insurance limits usually match each state’s minimum car insurance requirements.
Uninsured motorist coverage, which is required in 20 U.S. states and Washington D.C., provides financial protection if you’re in an accident with a driver who does not carry liability insurance or leaves the scene of the accident without providing their insurance information. Uninsured motorist coverage is often bundled with underinsured motorist coverage, which protects you if you’re in an accident and the at-fault driver doesn’t have enough insurance to fully cover the damage they caused.
Our research found that the average cost of car insurance among companies in our rating is $2,068 per year. Remember that car insurance premiums are highly individualized and based on several considerations, so you could pay more or less than the average. The sample rates in our analysis are for comparison only.
*Rates are based on average sample quotes for male and female drivers ages 25, 35, and 60 who drive 12,000 miles per year, have medium coverage, good credit, and have a clean driving record.
Your car insurance premium can vary based on many of the following factors:
- Location. Factors such as traffic congestion, crime rates, and the likelihood of being in an accident can impact how much you pay for car insurance.
- Age and years of driving experience. Insurance companies often consider your age and the number of years you’ve been driving to determine your risk level. Insurers believe older drivers with more experience behind the wheel are less likely to be in an accident, so they tend to charge them lower insurance premiums.
- Gender. Insurance companies may use gender to calculate your premiums. This is common practice based on statistics that show men are riskier drivers which may result in them paying higher rates than women. Some states will not allow gender to be used in calculating premiums; you would need to check with your state or insurance agent.
- Car make and model. The make, model, and year of your car can make a difference in how much you pay for insurance. Factors such as safety features and costs for repairs may also be a consideration.
- Driving record. Maintaining a clean driving record may result in lower premiums. Insurance companies look at your driving history, including accidents, traffic violations, and claims to determine how much you’ll pay for car insurance.
- Coverage selection. The coverage you choose makes a difference in your insurance costs. Opting for higher-level coverage such as comprehensive, collision, medical payments, rental car reimbursement, or gap insurance is going to cost more than just selecting a liability policy.
There are many ways for drivers to save through discounts offered by insurers. Ultimately, the best way to find a premium that fits within your budget — and a policy that suits your needs — is to shop around and compare quotes from multiple insurers.
The amount of insurance you need depends on several factors. One of the most important indicators of how much coverage you may need is state requirements. Most states have laws that require drivers to carry a minimum amount of liability coverage. Some states also require drivers to carry other types of insurance, such as uninsured motorist coverage or personal injury protection (PIP).
The next thing to consider is any lender or lessor requirements. If you make monthly payments on your vehicle, your loan or lease agreement specifies how much coverage you need to carry. Refer to your lender, lessor, or financing agreement.
Comments
Post a Comment