Choosing the Best Car Insurance Companies for your car could be stressful after all there are so many companies out there portraying to be the best.
In this article, we choose the 3 of the Best Car Insurance Companies in the industry for you and provide you the detailed reviews of these car insurance companies. This will help you understand why they are best and what they offer.
Lets First understand the types of Car Insurance Policies, Average Cost of Insurance and What Factors affects the Cost of Car Insurance.
Types Of Car Insurance Policies.
Most auto insurers offer 6 standard types of car insurance. These include:
- Liability Car Insurance: Most companies Cover Bodily injury liability insurance (BI) for other drivers and passengers if you are at fault in a collision, and property damage liability (PD) covers other cars or property if you are at fault in a collision.
- Collision insurance: Collision coverage protects your vehicle, regardless of who is at fault.
- Comprehensive insurance: Comprehensive coverage pays for damages to your vehicle caused by environmental factors i.e. theft, or vandalism.
- Medical payments (Med Pay): Med Pay covers any medical expenses for you and your passengers after a collision.
- Personal injury protection (PIP): PIP covers medical bills, lost wages, and death benefits for you and your passengers, regardless of fault.
- Underinsured/uninsured motorist coverage (UIM/UM): This type of coverage protects you if you’re in a car accident with a motorist with too little coverage or no coverage at all.
Average Car Insurance Cost :
According to rate estimates, its mostly observed that a 35-year-old driver with clean driving records and good credit pays between about $1,000 and $2,500 per year on average for full coverage insurance.
Car insurance prices depend on many factors, including your age, location, credit score, driving record, and type of vehicle.
What Affects the Cost of Car Insurance?
The cost of car insurance is influenced by a variety of factors, some of which are in a driver’s control and some of which are not.
It’s good to Understand things you’re able to control ensuring you’re getting the best insurance rates.
Here are some of the most common factors that affect car insurance costs:
- Location: Insurance Rates are higher in larger, more urban populated areas. These areas will often face higher auto insurance rates. Insurers’ Costs to these companies increase with the higher & increased traffic and vehicles per capita in bigger cities.
- Age: Drivers under the age of 25 and elderly drivers above age 50 are usually given high insurance premiums. Insurance companies consider these types of drivers as higher risk mainly due to lower age/ higher age and high Adeline/medical conditions. New drivers, regardless of age, will also have higher auto insurance costs.
- Driving history: If you have an at-fault accident, moving violations or a DUI/DWI on your record, a car insurance policy will cost more.
- Credit score: A high credit score indicates to insurers that a driver is reliable and financially responsible, so their auto insurance policy will cost less. Having a poor credit score can increase your rates (except in California, Hawaii, Massachusetts, and Michigan).
- Vehicle type: Often, drivers with pricey sports cars pay more for the best car insurance because repairs are more expensive after an accident.
- Deductible: A lower deductible leads to a higher premium.
Points to Consider while Rating Auto Insurance Company:
When ranking these car insurers, we considered the below important points
- State availability
- Breadth of coverage
- Pricing and satisfaction scores from experts like J.D. Power.
- AM Best financial strength ratings and complaint volume as reported by the National Association of Insurance Commissioners (NAIC).
Let us now look at our 3 of Best Car Insurance Companies.
1. USAA: Low Rates for Military
USAA is our first choice for the car insurance company that is best. It has consistently topped J.D. Power auto insurance studies for being one of the best car insurance providers in terms of customer satisfaction and value.
The company is well known for its high customer ratings and affordable coverage options, including accident forgiveness. However, it has strict eligibility and not everyone qualifies for coverage.
USAA auto insurance is only available to members that are military veteran,s and their families, which greatly restricts who can purchase coverage.
It’s one of the best options available if you are eligible for a USAA insurance policy.
Beyond the standard types of car insurance, USAA offers the following optional coverage
- Roadside assistance
- Rental car reimbursement
- Accident forgiveness
- Glass coverage
- Guaranteed asset protection
- Car replacement assistance (CRA)
- Rideshare insurance
USAA received an a++ strength that is financial from AM Best and an A+ rating from the Better Business Bureau (BBB).
The auto insurer made up 6.01% of the market share in 2021, according to the NAIC. Though it’s not the auto insurer that is largest, USAA still has reputable financial strength. In 2021, the ongoing company wrote $15.73 billion in private passenger auto insurance premiums.
While USAA does not have many locations that are physical policyholders are still impressed by the company’s customer service.
USAA earned the score that is top of the J.D. Power 2022 U.S. Auto Insurance StudySM in every U.S. region except California, though it’s unranked due to its eligibility criteria.
USAA is known for its affordability as well. It offers the cheapest car insurance on average compared to any other provider we researched. Our rate estimates show good drivers pay about $1,054 per on average for full coverage car insurance with USAA year. The company also offers discounts based on driver safety, multiple policies (like bundling auto and home insurance), safety features such as airbags, and more.
#2 Geico: Editor’s Choice
If you don’t qualify for USAA insurance coverage, Geico is worth considering as your top choice. The company offers reputable services, a wide selection of coverage, and a car that cheap rates, according to our rate estimates.
Besides the standard coverage, Geico offers helpful add-ons such as:
- Emergency roadside assistance
- Rental car reimbursement
- Mechanical breakdown insurance (MBI)
- Rideshare insurance
Geico received an A++ (Superior) rating from AM Best, meaning the company has the backing that is financial pay customers’ insurance claims. A larger auto insurer like Geico comes with more financial stability compared to a smaller, local company.
Geico also has a strong customer service reputation. According to the J.D. Power Auto Insurance Study, Geico performed better than average in every region except the Mid-Atlantic, Southwest, and Texas.
The study surveyed customers on claims, billing to their satisfaction, price, policy, and more. Additionally to 2022 insurance survey that polled 1,000 respondents found nearly 12% chose Geico as their insurance provider in January.
Regarding cost, Geico’s rates are some of the most affordable we’ve seen. Our rate estimates show that drivers pay about $1,308 per year on average for full coverage car insurance from Geico. These rate estimates apply to 35-year-olds with good credit and records that are driving.
Our estimates put Geico in the top three companies for affordability compared to other national providers.
On top of that, the insurer offers several ways to save money, including a good driver discount (up to 26% off), a good student discount (up to 15% off), and a multi-vehicle discount (up to 25% off).
#3 State Farm: Most Popular Provider
State Farm is another strong choice when it comes to finding the best auto insurance in the industry. Our January 2022 insurance survey found the insurer is the most popular provider among the 1,000 respondents surveyed, with 13% stating they purchased State Farm insurance coverage.
Beyond the standard types of coverage, State Farm offers:
- Emergency road service coverage
- Car rental and travel expenses coverage
- Rideshare driver coverage
Our cost estimates show good drivers pay an average of about $1,481 annually for full coverage insurance with State Farm. This ranks State Farm among the most affordable providers that are national.
As the biggest car insurance company in the country, State Farm is no stranger to claims satisfaction — the company has an A++ rating from AM Best.
According to the NAIC, State Farm accounted for 15.93% of the auto insurance market share in 2021. State Farm also had fewer complaints than the industry average in 2020, though customer reviews on the BBB are mixed.
We chose State Farm as one of the nation’s best car insurance companies in part because of the usage-based and safe driving discounts it offers to young drivers.
There are two discount programs available through mobile apps:
- Drive Safe & Save: State Farm tracks and rewards safe driving habits through the Drive Safe & Save mobile app. By reducing driving behaviors such as quick accelerations, hard braking, and speeding, drivers can earn up to 30% off their premiums. This program is not available in California, Massachusetts, or Rhode Island.
- Steer Clear: Teens and new drivers can receive course training, mentoring, driving practice, and a program certification to encourage good driving habits. After completing the scheduled program, drivers get a discount on their premiums.
Other State Farm auto insurance discounts include those for good grades, safe driving, defensive driving, vehicle safety features, and course completion that is driving. The company does not offer a military discount.
Hope you liked out article on 3 of Best Car Insurance Companies, please read our other article on Best Health Insurance Companies 2022