Car insurance is a type of policy that provides coverage for vehicles in the event of damage, theft, or accidents. It is a legal requirement in many countries and is essential for protecting drivers financially.
Choosing the right car insurance company is important as it can greatly affect the level of coverage and the amount of compensation you receive in case of an accident. With so many insurance providers available, it can be challenging to determine which one is the best fit for your needs.
In this article, we will discuss the key factors to consider when choosing a car insurance company. We will cover the types of coverage available, the company’s reputation and financial stability, and ways to save money on car insurance premiums. By the end of this article, you will have a better understanding of what to look for in a car insurance company and be better equipped to make an informed decision.
The Best Car Insurance Companies
When it comes to car insurance, it can be difficult to choose the right company for your needs. With so many options available, it can be overwhelming to sort through all the information. To help make your decision easier, we’ve compiled a list of the top 10 car insurance companies, along with their overviews, pros, and cons.
- American Family – Best for Low Level of Complaints
- Auto-Owners – Best Cost for Drivers Who Have Caused an Accident
- Nationwide – Good for Usage-based or Mileage-based Insurance
- USAA – Best for Military Members & Veterans
- Geico – Best Overall Car Insurance Rates
- Travelers – Best Price for Gap Insurance
- Westfield – Best Family Discounts
- Erie – Best Grade from Collision Repair Professionals
- Progressive – Best Price for Drivers With a DUI
- State Farm – Best Renewal Discount
A. American Family Overview: American Family is a well-established insurance company that has been around for over 90 years. They offer a variety of insurance products, including car insurance, and have a strong reputation for customer service.
Pros:
- A variety of discounts available, including safe driving discounts, multi-policy discounts, and more.
- High customer satisfaction ratings and a strong reputation for customer service.
- A network of over 3,500 agents across the country.
Cons:
- Some customers have reported higher-than-average premiums.
- Limited availability in some states.
B. Auto-Owners Overview: Auto-Owners is a regional insurance company that operates in 26 states. They offer a variety of insurance products, including car insurance, and are known for their personalized service.
Pros:
- Strong financial ratings.
- High customer satisfaction ratings and a reputation for excellent customer service.
- A variety of discounts available, including multi-policy discounts and safe driving discounts.
Cons:
- Limited availability in some states.
- Some customers have reported difficulty with the claims process.
C. Nationwide Overview: Nationwide is a well-known insurance company that offers a variety of insurance products, including car insurance. They have a strong reputation for customer service and offer a wide range of coverage options.
Pros:
- A variety of discounts available, including safe driving discounts and multi-policy discounts.
- High customer satisfaction ratings and a reputation for excellent customer service.
- A wide range of coverage options, including liability, collision, and comprehensive coverage.
Cons:
- Some customers have reported higher-than-average premiums.
- Limited availability in some states.
D. USAA Overview: USAA is a financial services company that offers a variety of products, including car insurance. They are known for their excellent customer service and competitive rates.
Pros:
- Excellent customer service and high customer satisfaction ratings.
- A variety of discounts available, including safe driving discounts, multi-policy discounts, and more.
- Competitive rates for military members and their families.
Cons:
- Limited availability to military members and their families.
- Limited coverage options for non-military members.
E. Geico Overview: Geico is a well-known insurance company that offers a variety of insurance products, including car insurance. They are known for their catchy commercials and competitive rates.
Pros:
- Competitive rates and a variety of discounts available, including safe driving discounts, multi-policy discounts, and more.
- High customer satisfaction ratings.
- An easy-to-use online platform for managing your policy.
Cons:
- Some customers have reported difficulty with the claims process.
- Limited availability in some states.
F. Travelers – Travelers is one of the largest and oldest insurance companies in the United States. The company offers a wide range of insurance products, including car insurance. Travelers has a strong reputation for its financial stability, customer service, and claims processing. It also offers unique features, such as accident forgiveness and gap insurance.
Pros:
- Comprehensive coverage options
- Strong financial stability
- Accident forgiveness
- Good customer service
Cons:
- Higher premiums compared to other insurers
- Discounts are limited
G. Westfield – Westfield is a regional insurance company that operates in 21 states. The company has been in business for over 170 years and offers a range of insurance products, including car insurance. Westfield is known for its personalized customer service and claims handling.
Pros:
- Personalized customer service
- Good claims handling
- Competitive premiums
Cons:
- Limited availability
- Limited discounts
C. Erie – Erie is a regional insurance company that operates in 12 states and the District of Columbia. The company offers a range of insurance products, including car insurance. Erie is known for its competitive premiums, comprehensive coverage options, and excellent customer service.
Pros:
- Competitive premiums
- Comprehensive coverage options
- Good customer service
- Generous discounts
Cons:
- Limited availability
I. Progressive – Progressive is one of the largest car insurance companies in the United States. The company offers a range of insurance products, including car insurance. Progressive is known for its competitive premiums, innovative tools, and discounts. The company also offers unique features, such as usage-based insurance and pet injury coverage.
Pros:
- Competitive premiums
- Innovative tools and features
- Generous discounts
Cons:
- Customer service can be inconsistent
- Limited availability of some features
J. State Farm – State Farm is one of the largest insurance companies in the United States. The company offers a wide range of insurance products, including car insurance. State Farm is known for its excellent customer service, competitive premiums, and comprehensive coverage options.
Pros:
- Excellent customer service
- Competitive premiums
- Comprehensive coverage options
- Generous discounts
Cons:
- Limited availability of some features
- Some customers may experience higher premiums than other insurers
In conclusion, these top 10 car insurance companies offer a range of products, features, and discounts. It’s essential to research each company and compare their premiums, coverage options, and customer service to determine which one is right for you.
How Much Does Car Insurance Cost?
Car insurance costs an average of $2,067 a year, based on Forbes Advisor’s analysis of rates from large car insurance companies. That’s $172 per month, on average.
| Coverage | Average annual car insurance cost for good drivers | Average monthly car insurance cost for good drivers |
|---|---|---|
| USAA | $1,412 | $118 |
| Auto-Owners | $1,628 | $136 |
| Geico | $1,716 | $143 |
| Westfield | $1,759 | $147 |
| Travelers | $1,852 | $154 |
| State Farm | $1,959 | $163 |
| Nationwide | $2,041 | $170 |
| Erie | $2,144 | $179 |
| Progressive | $2,157 | $180 |
| American Family | $2,176 | $181 |
| Farmers | $2,381 | $198 |
| Safe Auto | $2,647 | $221 |
| Allstate | $3,000 | $250 |
| Rates are based on a female driver, age 45, insuring a Toyota RAV4 with liability coverage of 100/300/100 ($100,000 in bodily injury liability per person, $300,000 per accident, and $100,000 in property damage liability) and collision and comprehensive insurance with a $500 deductible. | ||
| Coverage | Average annual car insurance cost for good drivers | Average monthly car insurance cost for good drivers |
|---|---|---|
| USAA | $1,412 | $118 |
| Auto-Owners | $1,628 | $136 |
| Geico | $1,716 | $143 |
| Westfield | $1,759 | $147 |
| Travelers | $1,852 | $154 |
| State Farm | $1,959 | $163 |
| Nationwide | $2,041 | $170 |
| Erie | $2,144 | $179 |
| Progressive | $2,157 | $180 |
| American Family | $2,176 | $181 |
| Farmers | $2,381 | $198 |
| Safe Auto | $2,647 | $221 |
| Allstate | $3,000 | $250 |
| Rates are based on a female driver, age 45, insuring a Toyota RAV4 with liability coverage of 100/300/100 ($100,000 in bodily injury liability per person, $300,000 per accident, and $100,000 in property damage liability) and collision and comprehensive insurance with a $500 deductible. | ||
Factors That Impact the Cost of Car Insurance
Your car insurance cost will vary depending on several factors that typically include:
- Your driving record
- Your age and years of driving experience
- Where you live
- Car insurance coverage selections
- Deductible amount (if you buy collision and comprehensive coverage)
- Vehicle model
- Your car insurance history, such as whether you’ve had continuous coverage or lapses
- Your credit-based insurance score
Factors to Consider When Choosing a Car Insurance Company
When selecting a car insurance company, it is important to consider several factors to ensure you receive the best coverage and value for your money. Here are five key factors to consider:
A. Coverage options: It is important to review the various coverage options offered by the insurance company. Does the policy cover the specific needs of your vehicle and lifestyle? Some of the coverage options include liability, collision, comprehensive, and personal injury protection.
B. Pricing and discounts: The cost of insurance can vary greatly from company to company, so it is essential to compare prices and discounts. Some insurers may offer discounts for things like safe driving, multiple policies, or being a member of certain organizations.
C. Customer service and support: Customer service is another important factor to consider when selecting an insurance provider. You want to ensure that the company provides quality service and support in the event of an accident or claim. You can research customer service ratings and reviews to get an idea of the level of service provided.
D. Financial strength and stability: An insurance company’s financial strength and stability are important factors to consider. You want to select a company that is financially sound and able to meet its obligations in the event of a large number of claims.
E. Reputation and reviews: Lastly, it is important to review the company’s reputation and reviews. This includes looking at their ratings with organizations like the Better Business Bureau and reading customer reviews to get an idea of their overall reputation.
By considering these factors, you can select an insurance company that meets your needs and provides you with the coverage, pricing, and service that you require.
Car Insurance by State
| State | Average annual cost for full coverage |
|---|---|
| Alabama | $1,809 |
| Alaska | $2,323 |
| Arizona | $1,696 |
| Arkansas | $2,061 |
| California | $2,462 |
| Colorado | $2,489 |
| Connecticut | $1,730 |
| Delaware | $2,462 |
| Florida | $4,326 |
| Georgia | $2,181 |
| Hawaii | $1,633 |
| Idaho | $1,021 |
| Illinois | $2,345 |
| Indiana | $1,454 |
| Iowa | $1,238 |
| Kansas | $1,693 |
| Kentucky | $1,979 |
| Louisiana | $3,629 |
| Maine | $1,216 |
| Maryland | $3,349 |
| Massachusetts | $2,333 |
| Michigan | $2,995 |
| Minnesota | $2,360 |
| Mississippi | $1,704 |
| Missouri | $2,323 |
| Montana | $1,770 |
| Nebraska | $1,538 |
| Nevada | $3,342 |
| New Hampshire | $1,411 |
| New Jersey | $2,240 |
| New Mexico | $2,104 |
| New York | $4,769 |
| North Carolina | $1,307 |
| North Dakota | $1,319 |
| Ohio | $1,112 |
| Oklahoma | $2,291 |
| Oregon | $1,459 |
| Pennsylvania | $3,600 |
| Rhode Island | $2,715 |
| South Carolina | $2,387 |
| South Dakota | $1,821 |
| Tennessee | $1,720 |
| Texas | $2,938 |
| Utah | $1,955 |
| Vermont | $1,037 |
| Virginia | $1,486 |
| Washington | $1,829 |
| West Virginia | $1,688 |
| Wisconsin | $1,905 |
| Wyoming | $1,341 |
Car Insurance Companies FAQ
Which company has the best car insurance?
According to Forbes Advisor’s analysis, American Family, Auto-Owners, Nationwide and USAA have the best car insurance.
These companies score the highest based on low rates, coverage selections, complaints and collision repair.
How can I find the best price on car insurance?
The key to finding a good deal is to get car insurance quotes from multiple companies. That’s the only way you’ll know what companies are going to charge and which companies are coming in with the lowest rates.
Another good savings strategy is to bundle auto insurance with another policy, such as homeowners or renters insurance. Buying more than one policy from the same company typically results in a decent discount.
What car insurance discounts should I look for?
Discounts on vehicle safety equipment, such as airbags, are easy to get. Make sure to get a bundling discount by buying from the same company if you need more than one type of insurance policy.
Good driver car insurance discounts are common. If you have a teen or young adult driver, you may be able to get a good student discount. And you may be able to get a small discount for things you would do anyway, like going paperless by receiving insurance bills and policies electronically.
Conclusion
In conclusion, we encourage readers to take action and carefully evaluate their car insurance options. Don’t simply choose the first provider that comes to mind or select the cheapest policy available. Instead, take the time to research and compare multiple options, and don’t hesitate to ask questions or seek guidance from an insurance professional if needed. By doing so, you can ensure that you have the protection you need and the peace of mind you deserve on the road.
