Best Auto Insurance Companies | December 2022
Auto insurance offers vital protection to you and your family by covering one of your biggest assets and protecting you from liability as a driver. The best auto insurance companies are the ones that can offer you the most coverage for your situation at rates that you can afford. But where can you find "the one"? Here is our list of the best auto insurance companies in the United States.
Looking for a great car insurance company, but not sure where to start? Finding a great auto insurance company that will keep your costs down can be a challenge. SuperMoney has you covered. Our editors have conducted a thorough research on the best car insurance companies based on their premiums, discounts, financial stability, and customer satisfaction levels. Our goal is to show you the best car insurance options and help you choose the best company for your needs.
Below, you can find our picks for the very best car insurance companies on the market. Compare their rates and terms side by side, and request auto insurance quotes to find out what you qualify for.
Guide to choosing car insurance companies
Shopping for a great car insurance company? Nowadays, getting the right policy with the right provider can be a challenge. The best car insurance companies offer plenty of coverage and service options and are known for their great customer service. A good auto insurer will make it easy for you to get a quote, sign up, understand and manage your policy and resolve claims.
With a slew of coverage options on the market, it's hard to find the best car insurance company for your needs. The good thing is that you can now do your research online, get accurate car insurance quotes, and compare all of the major car insurance companies.
Not sure where to start? Don't worry. SuperMoney is here to help! We'll teach you exactly what to look for when shopping for auto insurance. Then we'll walk you through the very best auto insurance companies of 2020. Below, you can compare car insurance rates side-by-side and learn the best features of each company. Once you've got a lay of the land, you can choose the very best car insurance company for you!
What makes a great car insurance company?
Finding the best car insurance should not be a difficult job. However, you will need lots of information on details such as auto insurance coverage, car insurance rates, property damage liability, travelers insurance, and many other details.
Below, we are highlighting some of the crucial factors that make a car insurance company great.
The right coverage options
Do you want to cut costs by limiting your coverage? Or do you want the best coverage that money can buy? Not every auto insurance company offers the same coverage options.
Not sure what you need? First, find out which coverage options are required by your state. Then, consider your car's value, the cost of auto repairs, your driving record, and your budget. After weighing all the factors, decide on which coverage options you'd prefer, and choose an insurance company that provides these options.
What coverage options are available?
The most common coverage types include:
- Collision coverage repairs or replaces your vehicle after an accident.
- Comprehensive coverage repairs your car if it is damaged by a covered cause other than a car accident.
- Bodily injury liability kicks in if you were responsible for an accident. It covers your legal fees and the other person’s medical bills and lost wages (if applicable).
- Property damage liability pays for property damage to the other party if you cause an accident.
- After an accident, Personal Injury Protection (PIP) covers medical bills that exceed your health insurance. Also, it can reimburse you for any lost wages.
- Medical payments coverage is like PIP, but it also covers any passengers in your car and any other family members who drive your car. Plus, medical payments coverage still kicks in even if you're injured in someone else's car or as a pedestrian.
- Uninsured/underinsured motorist applies if you're in an accident with another driver who doesn't have insurance. This coverage covers your medical bills and, in some states, property damage.
- Guaranteed asset protection kicks in when a car is totaled. It reimburses the owner for the difference between what they still owe on their car and the amount that insurance covers.
- Rental car reimbursement covers the cost of renting a vehicle when yours is being repaired after an accident.
Coverage limits and deductibles
When shopping for a great car insurance company, start by looking at the coverage that they offer! Every state requires its inhabitants to pay for a specific set of coverage options. When assessing a car insurance company, make sure that it will meet your state's minimum requirements.
Next, check the cost of the deductibles. Most insurers offer more than one deductible option. Typically, the higher your deductible, the lower your premium, and vice versa. Get a quote to find out what options are available for you.
Some of the top features that the best car insurance companies pride themselves on include dividends, usage-based programs, and more. A good idea when considering features is to divide them into "must-haves," "should-haves," and "nice-to-haves."
For instance, "must-have" features on good auto insurance include:
- Coverage on your extra equipment
- Windscreen covers
- Personal belongings coverage
- Loss or theft of keys
- Protected no claims discount
- Car rescue coverage (roadside assistance and/or removal of your vehicle from the scene of the accident for free)
- Guaranteed repairs
- 12-month guarantee on all work done
Similarly, a "should-have" policy should cover the following:
- Replacement of your vehicle with a brand new car of the same make and model
- Coverage on your stereo and satellite navigation
- Hotel expenses
- 24/7 helpdesk
- Legal expenses coverage
- Breakdown coverage
Next are the "could-have" features which only a few insurance companies provide, and most users want to see when choosing auto insurance:
- Foreign use (same coverage when driving your car abroad)
- Child car seat coverage
- Enhanced courtesy car (equivalent size to your own vehicle)
Last but not least are the things you should watch out for, which include:
- Accidental damage excess: Make sure you review the amount of money you must pay if a claim for accidental damage was made.
- Windscreen replacement excess: Replacing your windscreen may not be covered in your auto insurance policy.
These are only some common examples of features offered by insurance companies. When looking for car insurance, you should also consider how stable the firm's financial resources are, which is the next factor we are reviewing below.
Financial strength (stability)
A successful auto insurance company is one that has plenty of financial resources held in reserve. Obviously, these would act like a deposit that would be used if they need to pay insurance claims, especially if there is a disaster and the company is hit with a large number of claims.
Fortunately, there is a rating that directly measures financial stability, where "A+" is the highest rating known as "Superior," while "A" and "A-" equate to "Excellent." All of these ratings are proudly shared by professional auto insurance companies.
Car insurance rates
Cost is always an important factor. The average cost of car insurance in 2020 is roughly $199/month. Of course, your auto insurance rates will depend on your driving record and the extent of your coverage. Look for companies that offer good coverage, discounts, and affordable prices.
It's always tempting to get the cheapest possible auto insurance premium. However, price isn't the only thing you should consider. If the price is really low, you may end up spending more in the long run, especially if the car insurance company is unable to process your claims or denies them when you need their protection most. Most young drivers or people inexperienced with insurance don't know this.
On the other hand, a good car insurance company will be there to provide discounts as part of their pricing model. Discounts on car insurance rates come in many shapes and forms – you can get discounts for young drivers, senior discounts, discounts based on good driving, loyalty packages, and safety equipment discounts.
To make sure you're getting the best rate available, be sure to get a quote from five (or more) different auto insurance companies. Then compare them side by side and choose the best deal for your budget.
How easy is it to get and manage your auto insurance policy? Does the company have an accessible website? What about a mobile app? Are there agents near you? If not, do they have a phone line with decent hours? All of these questions impact your overall experience and satisfaction with the company.
Different insurers provide different platforms to file and review claims. Before committing to a car insurance company, find out what their process looks like. Is it easy to file a claim? How long does it take for them to review claims? Make sure they provide platforms that suit your preferences. If you like face-to-face interactions, choose a company with brick-and-mortar locations in your area. If you prefer remote service, find one with a great mobile app.
How does the company treat its customers? Do they quickly resolve problems, or does it take a long time? Are they easy to get in touch with when there is a problem?
These are some of the commonly asked questions related to customer service. As you probably know, good customer service is a top characteristic for every brand, regardless of its industry. When choosing the best car insurance company, it should be present for you 24/7, preferably by phone.
If quality customer service is your priority, you should carefully review their customer support features. Many car insurance companies only offer customer service through email or online chat or only work during regular hours. In case of emergencies and times when you need immediate assistance, 24/7 customer service is beyond important.
Read reviews from past customers to find an auto insurer with a customer service team you can trust.
Last in our list of important factors when choosing auto owners insurance is customer satisfaction. High customer satisfaction ratings can reassure you that a company cares about its clients.
Review sites like ours can help you find customer satisfaction ratings and get information about the top insurance companies.
Auto insurers know that this information is public and can be accessed by anyone. This provides them with an incentive to provide the best possible customer service. That is why most of them are committed to resolving customer issues in a timely manner.
How to get the best deal on car insurance?
Below, we are listing some tips that can help you get the best car insurance quote.
- Lower the risk: If you want to lower your risk, you should ideally drive a car from a low insurance group, be accurate about your mileage, drive safely, and, if possible, smooth out the risk by adding a second driver.
- Lower the price: If you want to get a lower price, you should consider annual over monthly installments and only pay for what you absolutely need. For example, a full coverage policy is not always needed (with all the add-ons) if you have an old car or don't drive that much. Sometimes it makes sense to buy some coverage, such as roadside assistance, separately. Another way to lower your premiums is to increase your deductible.
- Shop around: The best way to get a good deal on your auto insurance is by shopping around and seeing all of the available options. Many car insurance companies have promotions and discounts for male drivers, juniors, seniors, or drivers with a clean track record.
If you don't have much time to do all of this, you can rely on us when searching for the best auto insurer for your needs.
When shopping for car insurance, it's important to weigh coverage options and claim satisfaction against total cost. Consider your driving record, your budget, the cost of repairs on your car, and your own preferences. Do you want to file a claim in person or online? Would you rather cut costs upfront or pay more now to save on costly auto repair?
Which are the largest and most popular car insurance companies?
Some of the largest and auto insurance carriers include household names because of their national marketing campaigns.
The largest auto insurance company in the country in terms of market share is State Farm, followed by Geico, Progressive, and Allstate. Here is the list of the 10 largest auto insurance companies by market share and premiums written.
|Rank||Group/company||Direct premiums written||Market share|
|1||State Farm Mutual Automobile Insurance||$40,878,781||16.10%|
|2||GEICO (Berkshire Hathaway Inc.)||34,892,004||13.8|
|5||USAA Insurance Group||15,231,169||6|
|7||Farmers Insurance Group of Companies||10,533,343||4.2|
|8||Nationwide Mutual Group||6,245,588||2.5|
|9||American Family Insurance Group||5,776,711||2.3|
|10||Travelers Companies Inc.||4,903,033||1.9|
State Farm Auto Insurance
State Farm is the largest private passenger auto insurer in the country. It offers plenty of insurance options and financial products. Both are sold through State Farm agents.
State Farm is also one of the most popular options because of its affordable auto insurance rates. The rental car and travel expenses coverage are also big favorites.
One of the features worth mentioning is the Steer Clear Driver Program, a driver training course available online via an agent or mobile app. This program gives drivers under 25 and with no at-fault accidents major savings on their insurance options.
If you are driving for a ride-sharing company (such as Lyft or Uber), State Farm also has a Rideshare Insurance policy that covers both your personal and ridesharing use.
The customer satisfaction levels for State Farm are above average. Their website is easy to navigate, and the mobile app lets you view your insurance card, see your policy information, request a quote, or submit a claim online.
Drivers can enjoy many benefits under the State Farm auto insurance. There are discounts for good driving, student programs, vehicle safety, and add-ons, multiple vehicles, etc.
All in all, State Farm is a big name in the insurance industry. Because of its numerous discounts, different programs for drivers, generous rental car and travel expenses coverage, and customer satisfaction levels, it is among the industry leaders.
GEICO is an auto insurer that focuses on selling directly to customers online, without any agents involved. This allows the company to offer low rates with plenty of policy discounts. Users love the GEICO mobile app and turn to their website for more information on each coverage.
GEICO has plenty of discounts that can reduce your insurance premiums. There are discounts for good drivers, multi-policy ones, military discounts, discounts for students and seniors, etc.
The GEICO liability insurance coverage includes bodily injury liability and property damage liability. The medical coverage includes medical expenses resulting from a car accident and any treatments, lost wages, or other accident-related expenses as part of the Personal Injury Protection (PIP) program.
However, GEICO could improve its accident forgiveness program (which is not available in all states). Also, finding a local agent can be difficult, and there is no gap insurance as part of the company's offering.
Still, GEICO is one of the cheapest car insurance providers with stellar 24/7 customer service. Overall, Geico can be a perfect option for insurers looking for auto, homeowners, renters, RV, boat, motorcycle, and more options.
Progressive is the third-largest insurance company in the United States. It is a publicly-traded company that was established in 1937 and prides itself in providing customers with flexibility and transparency when comparing their options. You can purchase auto insurance in-person, online, or over the phone. Progressive has more than 35,000 employees and over 400 branches.
Allstate is the second-biggest publicly traded property and casualty insurance company in America. Similar to State Farm, Allstate relies on a large team of local agents. It employs more than 46,000 people.
Esurance, a subsidiary of Allstate, offers an alternative to customers who prefer a self-directed experience. On the other hand, Allstate is geared towards customers who value the personal attention and service of a dedicated agent.
USAA was founded in 1922 by 25 Army officers who struggled to get the insurance they wanted and chose to insure each other’s vehicles. Currently, USAA has millions of members associated with the U.S. military. USAA is often the best choice for veterans and military service members.
Liberty Mutual has been in business for around 100 years. It is not only one of the largest insurance carriers in the United States, but also operates in 17 countries. However, what makes it so popular is its high claim satisfaction with customers.
You can buy Liberty Mutual auto insurance online, over the phone, and through a local Liberty Mutual agent or broker. A nice perk of Liberty Mutual is that its rates are guaranteed for a year.