Car insurance is one of the most significant investments you’ll make. In addition to being legally mandated for drivers in almost every state, auto insurance protects you from financial devastation in the event of an accident. Every driver has a specific set of preferences to consider when selecting the right car insurance provider, but considerations such as the type of car you drive, the age of the drivers you are covered, the availability of incentives, the business’s financial strength, and the rating of the customer service would all be part of the decision-making process.
It is essential to consider many factors when investigating the best car insurance companies, including financial strength, customer service ratings, and average premiums. You want affordable car insurance from a car insurance provider, and you don’t want to overpay.
We’ve ranked companies based on three categories:
- Auto insurance premiums
- Customer review
- Tech basis
In the tech basics category, we looked at features that we think auto insurance providers should have in 2021: digital auto insurance ID cards accessible from mobile applications, user-based insurance or pay-per-mile insurance, and virtual insurance claims that do not require in-person encounters.
|Car insurance companies|
|New Jersey Manufacturers Insurance Co.|
|Auto-Owners Insurance Group|
Best auto insurance provider to satisfy claims: Amica Mutual
As far as nationwide carriers are concerned, Amica is at the top of the list when it comes to claims satisfaction. Amica is known for its best in class customer service and quick response times from agents. But it may be more priced than other carriers, and it may be picky when it comes to customers—not all would be able to find reliable coverage with Amica.
Best auto insurance provider for teenage drivers: State Farm
Teen and young adult drivers are notoriously expensive to insure because auto insurance firms see them as more dangerous than adult drivers. But State Farm provides ways to offset the expense of introducing a teenage driver to your policy, with a decent student discount and a Steer Clear program for drivers under 25, which monitors driving activity with an app containing informational quizzes and videos. Drivers who complete the Steer Clear program may receive a discount that lasts until they turn 25.
Best auto insurance provider for savings and discounts: GEICO
Although auto insurance’s price depends primarily on individual factors such as your age, driving background, address, credit score, and the make and model of a car you drive, some providers are more reliable than others. GEICO is one of the most common carriers out there, and its wide variety of discounts and reliably competitive rates are two of the reasons why so many people choose GEICO. Of course, the best way to ensure that you get a fair deal for auto insurance is to compare various providers’ rates.
Choosing the right insurance provider for cars
Choosing the right car insurance company for you is not as easy as having a few quotes and going for the most economical alternative. However, that strategy may work for others. It’s essential to make sure you’re comparing apples to apples—one company can give you a $750 six-month policy, and another may offer you a $900 policy, so take a look at the information before you go to the lower-priced option.
Be sure you compare the same benefit limits and deductibles—the first provider policy could be cheaper because it immediately sets low coverage limits, which may leave you paying out of pocket when you genuinely use the insurance. You may also want to consider third-party reviews, particularly claims of satisfaction. If you file a lawsuit, you’re going to want the organization to come through and give you the help you need.
Here are some of the variables that need to be considered when evaluating automobile insurance companies:
Discounts – The best auto insurance providers will make up for the
cost of your premiums by providing discounts on your car insurance.
Many of the discounts are shared among various insurers, such as the safe driver discount provided by nearly every insurer to people who have regularly demonstrated good driving. But the size of the discount can vary, so be sure to compare it. Popular types of discounts to be pursued include:
- Good student discounts for maintaining above a certain GPA
- Bundling discounts for combining your auto and home coverage or for buying multiple policies through the same insurance agency
- Affiliation discounts for belonging to specific groups or organizations
- Discounts for paying your policy in whole or going paperless
- Discounts for having certain safety features on your vehicle, like an anti-theft device
- Usage-based discounts that are awarded based on safe driving habits often tracked through a smartphone app
Discounts can add up to significant savings, so when you’re looking around for car insurance providers, be sure to take a look at the discounts available to each carrier.
Claims and customer satisfaction – Another measure to consider when selecting a car insurance provider is the quality of their customer service and claimants’ satisfaction. You’d never have to file a claim in the perfect world, but many drivers would end up filing a claim at some point. It’s nice to do your homework ahead of time, so you’re not caught off guard by lousy service down the line.
You can also do a little objective analysis beyond just looking at the company’s satisfaction rate statements. Try calling the provider to see the periodic hold time and how long it takes to get a natural person on the line. If it takes hours to contact someone for a general inquiry, imagine how difficult it would be to try to get someone on the line when you’ve just finished your car.