Choosing an auto insurance company is a huge financial decision that we all have to make. If you’re fortunate enough to sign on with a reputable, reliable company, then you’re in luck. Selecting a good auto insurance company gives you the peace of mind to know that if you get into an accident, you’ll be in good hands. You want to know that if you make a claim, you won’t have to worry that it will be denied.
Sadly, far too many people find out too late that their car insurance company isn’t trustworthy. They go to make a claim and then experience a rude awakening. The only way to avoid making this mistake is to do your research before you purchase your insurance policy. The best auto insurance companies not only are highly rated by consumer rating institutions, but they also have strong financial health and the ability to pay even the most expensive claims. Continue reading below to learn more about the characteristics of a good auto insurance company and to see our list of the ten best auto insurance companies.
Consumer Reports Auto Insurance Company Survey
So, what makes for the best auto insurance company? There is no single right answer to this, and in reality, an insurer that is great for one driver may not be so great for another. A recent survey by Consumer Reports was distributed to 28,241 auto insurance customers and ranked twenty-two insurers according to two criteria:
- How quickly claims were paid
- If there were any problems with the claims process
These auto insurance company ratings were scored on a scale of 1 to 100. The results of the survey brought some interesting things to light. First, all of the companies surveyed scored over 80. Secondly, the best auto insurance companies, according to consumers who returned the survey, are smaller ones that you may not have heard of.
Another interesting – and disturbing – fact was that even among these top-rated insurers, 10%–26% of all respondents reported having problems receiving payments on claims. In some cases, these insurance customers wound up waiting over two weeks before receiving a claims check.
Who Came in First
The Consumer Reports survey was distributed to auto insurance customers who had filed claims during a recent 18-month period. It found that 86% of respondents were “highly satisfied” with the way their claims were handled. The highest-rated auto insurance companies – those that scored in the top 8% – were New Jersey Manufacturers Insurance, Arbella, and Auto-Owners Insurance.
Keep in mind that these companies may not offer policies in all states or may have strict eligibility rules that prevent some people from buying policies from them. So if you haven’t heard of them, don’t worry. Most people haven’t.
Watch out for Suspiciously Low Prices
As 19th-century philosopher John Ruskin reportedly said, “There is scarcely anything in the world that some man cannot make a little worse and sell a little more cheaply. The person who buys on price alone is this man’s lawful prey.”
Because of this, Consumer Reports issued the following warning with its findings:
“Saving on car insurance is not only a matter of finding the lowest premium. An insurer can charge less in premiums but cost you more overall by low-balling loss estimates, hassling the repair shop to cut corners, and forcing you to pay extra for the manufacturer’s replacement parts if you choose them over cheaper knockoffs. It can also unfairly jack up your premiums after an accident.”
What this means is that the least expensive auto insurance policy is not necessarily the best. You should do your research to find a reputable insurer with high ratings from not only Consumer Reports but from J.D. Power and AM Best as well.
What to Look for in an Insurance Company
Unfortunately, working with some auto insurance companies can turn out to be a real-life nightmare. They might disappear or become unresponsive after you get into an accident. They might make it a hassle to file a claim. Their customer service might be downright terrible.
When you pay a lot of money for insurance coverage, you deserve an insurance company that’s dependable and trustworthy. Insurers like this, however, can sometimes be hard to find. To avoid the pitfalls of an unreliable auto insurance provider, make sure to find a company with strong customer satisfaction ratings, good customer service, extensive coverage options, strong financial ratings, and most importantly, affordable coverage.
Get Insurance Quotes from a Reputable Source
The Internet has made it easy to get dozens of auto insurance quotes in just a few minutes. Not all companies, however, let you compare rates from only the top-rated insurance providers.
4AutoInsuranceQuote.com is different. We don’t just recommend any auto insurance company to you; we recommend the best auto insurance companies in the industry. By using our quote comparison tool, you will be given insurance rates from the highest-rated, most reputable insurance companies, including those listed in our top ten list below.
Our Top Ten Best Car Insurance Companies List
The following ten auto insurance companies have been chosen for several reasons, and they have a few things in common. Their customer service is top-notch, their rates are low, and they have insanely high customer satisfaction rates. While it may be slightly different than the Consumer Reports list mentioned above, the factors and values we considered when ranking these companies are very much the same.
GEICO’s customer service is second to none, and their large customer base makes it possible for them to charge low premiums. If you’re looking for an affordable car insurance policy with excellent coverage options, GEICO might be right for you. (Read more about GEICO here.)
As their slogan says, with Allstate, “you’re in good hands,” and that is the truth. Their customers love them, so there’s a pretty good chance you will too. Allstate was one of the first to offer accident forgiveness, and they continue to add new features that change how we pay for auto insurance. (Read more about Allstate here.)
State Farm is another auto insurance provider that is sure to please. They’ve grown to become the largest insurance provider in North America. Claims agents are always friendly, and they provide you with a lot of coverage for an affordable price. (Read more about State Farm here.)
With 24/7 support and friendly agents, Esurance’s customer service is hard to beat. Their prices are competitive, as well. (Read more about Esurance here.)
Arbella doesn’t waste your money on ads or flashy commercials. They let their work speak for itself. Arbella thrives on referrals and word of mouth. Policyholders love Arbella with good reason too. Arbella’s hassle-free claim processing seems to be their most popular feature. (Read more about Arbella here.)
American Family Auto Insurance
Although smaller than the other companies on our list, American Family aims to please. They pay claims promptly and get high reviews from all major publications. Unfortunately, they are only available in 19 states. If you are lucky enough to be in a state that has American Family Insurance, you might want to give them a try. (Read more about American Family here.)
As an old, conservative insurance company, Liberty Mutual prides itself on reputation. They are personal, competitively priced, and have short wait times when it comes to claims. (Read more about Liberty Mutual here.)
Progressive is another company you might recognize from TV. Getting started with them is simple, easy, and inexpensive too. Dealing with Progressive is incredibly stress-free. With Progressive, you will never have a problem with a claim. (Read more about Progressive here.)
“Triple-A” is more than just roadside assistance and travel accommodations. Their auto insurance coverage is of the highest quality. If you get into an accident, they will be by your side every step of the way. (Read more about AAA here.)
Farmers is known for its great auto and home insurance coverage options. If you’re thinking about combining policies, give Farmers a shot. They have many highly customizable insurance options. (Read more about Farmers here.)
Things To Remember
The lowest-priced car insurance policy is not always the best. When shopping around, carefully look at auto insurance companies, and do your research. Remember that information on how insurers handle claims and how they set rates are public record and are generally not difficult to find.
People who have particular auto insurance needs may be better served by going to an independent car insurance agency rather than a single company. Independent agents represent several insurers and can usually help you find good coverage for your unique situation.
Although the list above represents our favorite choices, there are other companies not listed that are also deserving of recognition. By entering your zip code above and comparing quotes, you’ll be presented with insurance quotes not only from companies in our top ten list but also from other highly rated auto insurance companies in the United States.