UPDATED: Sep 15, 2020
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There are many factors that go into determining the best auto insurance companies. We’ve compiled a car insurance company name list featuring the best companies around. Finding the best affordable auto insurance companies doesn’t have to be a hassle.
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.
The best auto insurance companies are not only highly-rated by consumer rating institutions, but they also have strong financial health and the ability to pay even the most expensive claims. Understanding auto insurance is the best way to save money.
Shop around to get the best coverage at the cheapest price from top-rated auto insurance companies. Enter your ZIP to compare auto insurance quotes from the best auto insurance companies in the USA.
Consumer Reports Auto Insurance Company Survey
So, what makes a company one of the best car insurance providers? There’s 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 22 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 one 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-rated 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 auto insurance companies, 10-26 percent 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.
This is why it’s important to look at ratings for reputable auto insurance companies, not just look for the cheapest prices.
Why does price matter in auto insurance?
Everybody wants to keep their rates low, so many people only look for cheap car insurance companies. But sometimes a great price does not equal great coverage or customer service.
Let’s look at the average cost of auto insurance of some of the best car insurance service providers in the country. This will give you an idea of the rates you can expect to pay.
|Companies||Average Annual Rates for Low Coverage||Average Annual Rates for Medium Coverage||Average Annual Rates for High Coverage|
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High or full coverage auto insurance is about $345 per month. Low or liability only coverage averages $312 per month. If you receive a quote that is a lot lower than these averages, it might not be the deal you think it is. 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 low-cost auto insurance isn’t always great. You should do your research to find a reputable insurer with high ratings from not only Consumer Reports but from J.D. Power and A.M. Best as well.
J.D. Power ranks auto insurance companies based on customer satisfaction. Factors like pricing, available coverage, and customer service are used to rank companies for every part of the U.S.
A.M. Best looks at the financial stability of companies to determine if they’re creditworthy. There are multiple ratings, from A++ to D. A good rating means that the company is financially stable and can meet its obligations.
No matter what company you go with, certain factors will greatly affect your auto insurance rates.
Your driving record is one of the biggest factors that determine your car insurance rates. Driving safely will keep your rates as low as possible.
Who came in first?
The best car insurance companies Consumer Reports survey was distributed to auto insurance customers who had filed claims during a recent 18-month period. It found that 86 percent of respondents were “highly satisfied” with the way their claims were handled.
Who are the top auto insurance companies in this survey?
The highest consumer rated auto insurance companies — those that scored in the top eight percent — 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.
What should you look for in the best auto insurance companies?
Unfortunately, working with some auto insurance companies can turn out to be a real-life nightmare. A bad company might disappear or become unresponsive after you get into an accident. It might make filing a claim a hassle. The 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.
Why should you get auto 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’ll be given the best auto insurance quotes from the highest-rated, most reputable insurance companies, including those listed in our top 25 list below. Enter your zip code below to view companies that have cheap auto insurance rates. Secured with SHA-256 Encryption
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Our Top 25 Best Auto Insurance Companies List
The following list of car insurance companies compiles 25 companies that have been chosen for several reasons, and they have a few things in common. The best insurance companies have top-notch customer service, their rates are low, and they have insanely high customer satisfaction ratings.
While it may be slightly different from 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 its large customer base means it can charge low premiums. If you’re looking for an affordable car insurance policy with excellent coverage options, Geico might be right for you.
As its slogan says, with Allstate, “You’re in good hands,” and that is the truth. Allstate’s customers love the company, so there’s a pretty good chance you will too. Allstate was one of the first to offer accident forgiveness, and it continues to add new features that change how we pay for auto insurance.
State Farm is another auto insurance provider that’s sure to please. It’s grown to become the largest insurance provider in North America. Claims agents are always friendly, and State Farm provides you with a lot of coverage for an affordable price.
With 24/7 support and friendly agents, Esurance’s customer service is hard to beat. Its prices are competitive, as well. Esurance not only offers a wide range of discounts, but it also has an extensive list of policy options.
Arbella doesn’t waste your money on ads or flashy commercials. This company lets its work speak for itself. Arbella thrives on referrals and word of mouth. Policyholders love Arbella with good reason too. Its hassle-free claims process seems to be its most popular feature.
American Family Auto Insurance
Although smaller than the other companies on our list, American Family aims to please. It pays claims promptly and gets high reviews from all major publications.
Unfortunately, American Family auto insurance is only available in 19 states. If you’re lucky enough to live in one of these states, you might want to give this company a try.
As an older, conservative insurance company, Liberty Mutual prides itself on reputation. It’s got competitive pricing with a personal touch and short wait times when it comes to claims.
Progressive is another company you might recognize from TV. Getting started with Progressive is simple, and inexpensive too. Its claims process is known to be problem-free.
“Triple-A” is more than just roadside assistance and travel accommodations. Its auto insurance coverage is of the highest quality. If you get into an accident, AAA will be by your side every step of the way.
Farmers is known for its great auto and home insurance coverage options. If you’re thinking about combining policies, give Farmers a shot. Customers appreciate the highly customizable insurance options.
USAA is ranked as one of the best insurance companies in the United States year after year. USAA scores very well for price, customer service, and claims satisfaction. The only catch is that USAA is only available to active duty or retired United States military personnel and their families.
Amica offers customized car insurance policies based on your budget and coverage needs. The Lincoln, Rhode Island-based company is one of America’s oldest insurers.
Today, Amica isn’t one of the country’s largest car insurance companies, although it consistently ranks as one of the best companies in terms of overall customer satisfaction, and it took home the top prize in the J.D. Power 2017 U.S. Auto Claims Satisfaction Study.
Erie is another car insurance company that’s highly rated by organizations and policyholders alike. The company has a particularly strong presence in the mid-Atlantic region.
One of the unique things about Erie is that all transactions — including claims — go through your own Erie insurance agent, giving Erie a personalized touch you may not get with other insurers.
NJM Insurance Group formerly only served customers in New Jersey (NJM was originally called the New Jersey Manufacturers Casualty Insurance Company). Today, however, NJM provides well-rated car insurance to nearly one million policyholders in New Jersey and Pennsylvania.
The company has strong ratings for its customer service and claims satisfaction, and the only drawback is that NJM currently only serves two states.
The Hartford is particularly popular among drivers over 50. In fact, The Hartford only sells car insurance to AARP members, so you need to be over 50 to qualify. Unique features offered by this company include lifetime renewal eligibility, one-year low premium lock-ins, and high customer service ratings.
Auto-Owners Insurance is a Fortune 500 company that has sold car insurance across the United States for over 100 years. Just like Erie Insurance above, Auto-Owners Insurance uses agents to handle all claims and transactions, giving the company a more personalized experience over other insurers.
The company is praised for its affordable rates, personalized service, and strong claims satisfaction, although it’s currently only available in 26 states.
The Hanover tends to be more expensive than its competitors, although the company offers more premium services than an ordinary American car insurance company. The Hanover offers home care services, for example, along with automatic veterinary expense coverage for pets and a wide range of potential discounts.
Nationwide has grown to become one of America’s largest insurance and financial services companies. The company is best known for its car insurance, although it’s not particularly well-rated compared to other providers on this list.
Despite the below-average customer service, Nationwide offers competitive prices and unique features like AutoWatch, which lets you monitor your car’s progress while undergoing repair.
Despite the name, Travelers isn’t just for people who travel. It’s a well-rated car insurance company for all types of drivers. Travelers is particularly popular for its wide range of discounts. If you sign up for the Intellidrive driver tracking program, for example, and drive safely, then you can save up to 20 percent off your premiums.
21st Century Insurance is a wholly-owned subsidiary of Farmers Insurance Group. However, the company continues to offer its own car insurance policies today. Generally, 21st Century is known for offering good-value car insurance that gets the job done without excelling in any particular category.
MetLife is America’s largest employee benefits provider, although the company also offers car insurance. MetLife car insurance is a particularly good option if you’re part of an organization that has a deal with MetLife because you can get discounts of up to 50 percent. The company ranks average for customer service and claims satisfaction.
Mercury Insurance is known for offering basic, low-cost car insurance policies with no frills. If you want no-nonsense car insurance that gets you on the road at a reasonable rate, then Mercury Insurance is one option. However, the company is poorly-rated for customer service.
Safeco is a subsidiary of Liberty Mutual Group, although the company continues to sell its own car insurance policies. Safeco isn’t known for its affordable rates, although the company does offer a range of discounts that can drop prices substantially.
Safeco’s RightTrack driver tracking program can drop rates by 30 percent, for example, and drivers who drive fewer than 8,000 miles per year qualify for unique discounts.
MAPFRE is a Spanish insurance giant that has slowly entered American markets over the last decade. In 2007, MAPFRE purchased the Massachusetts-based Commerce Insurance Group.
Today, MAPFRE has continued to expand across the United States and worldwide, offering competitively-priced car insurance with the average customer service you would expect from a multi-billion dollar insurance conglomerate.
You’ve seen the television advertisements for The General. The Nashville, Tennessee-based company specializes in providing cheap car insurance to high-risk drivers. Many of The General’s policyholders are unable to get affordable rates from traditional insurance providers, so they turn to The General.
Don’t expect spectacular customer service or claims satisfaction from The General; the company specializes in barebones car insurance for drivers who just want to get on the road.
Things To Remember
When you’re looking for auto insurance companies, the lowest-priced car insurance policy is not always the best. When shopping around, carefully look at multiple auto insurance companies, and do your research. Remember that information on how insurers handle claims and how they set rates is public record and 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.
Are you ready to buy the best auto insurance for you? By entering your ZIP code below, you’ll be presented with the best auto insurance companies rates from a variety of companies.