If you want the best protection money can buy, buying an auto policy
from one of the best car insurance companies is essential. By buying a
high quality policy from a reputable provider, you’ll gain both peace of
mind and protection from life-changing financial losses.
While there are plenty of companies to choose from, the best car
insurance companies offer certain features that help them stand out.
In addition to policies that can be tailored to your unique insurance
needs, they generally offer superior customer service, an up-to-date
website where you can pay your bill or check your policy details, and a
top notch claims process that makes recovering from an auto accident as
seamless as possible.
Because car insurance has become such a competitive space, shopping
around for the best automobile insurance rates is crucial. Where one
company might charge higher rates due to your age or driving history,
another might offer special discounts based on an entirely different set
of criteria.
Most of the time, the only way to find out how much you’ll pay is to apply for several quotes and compare them side by side.
This post was created to introduce some of the best car insurance
companies in the business, plus provide an overview of how each business
operates.
Best Auto Insurance Companies In 2017
When your goal is finding the best policy at an attractive price, it
pays to compare several of the highest rated companies side by side.
When figuring out which companies to highlight, we looked at
Reviews.com Auto Insurance Study and
J.D. Power’s 2016 Auto Claims Satisfaction Study. From those studies, we handpicked several companies that received high ratings across the board.
Thus, the best auto insurance companies In 2017 are;
- Liberty Mutual
- Allstate Insurance
- USAA
- Auto-Owners Insurance
- Progressive
- State Farm
- The Hartford
Liberty Mutual Insurance
Founded in 1912,
Liberty Mutual Insurance insures more than 1.5 million vehicles and has some of the top customer service ratings.
Why you might like Liberty Mutual:
- Ranked “among the best” by J.D. Power's 2016 U.S. Insurance Shopping Study
- Great standard coverage, as well as the option to add:
- Accident forgiveness: Your insurance rates won't go up when you're involved in your first accident.
- New car replacement: If you total your car when
it's less than a year old and has fewer than 15,000 miles, they'll
reimburse you the cost of a new car, not just the depreciated value.
- Better car replacement: You'll be reimbursed for a car that is one model year newer and 15,000 fewer miles than your totaled car.
- Deductible fund: Reduce your deductible by $100 when you add this feature, and then another $100 every year after that.
- 24-hour claims service
Why you should keep looking:
- Policies can be expensive if you are purchasing a single policy.
USAA
USAA
received extremely high marks from J.D. Power’s Claims Satisfaction
Survey, including 5/5 in overall customer satisfaction. In addition,
USAA customers were extremely satisfied with their final settlement
after an accident, which is one of the most important indicators or a
high quality insurance company.
The biggest downside to USAA is that it is only available to members
or former members of the United State military and their close family
members. So, if you’re in the general public, you won’t have the
opportunity to buy a policy from USAA.
Why you might like USAA:
- Top ratings, including overall customer satisfaction
- Superior customer service
- Diverse policy options to meet anyone’s needs
Allstate Insurance
If you’re looking for a car insurance company that offers high quality insurance policies with the opportunity for discounts,
Allstate Insurance
should be on your short list. Allstate received fairly high ratings
across both studies mentioned in this article, with its highest marks
received from customers who reported a positive rental car experience.
Allstate Insurance offers the best of both worlds when it comes to
the user experience. With brick and mortar offices and agents placed all
over the country plus a user-friendly and helpful website, customers
have the opportunity to get in-person help or access information online
at any time.
Why you might like Allstate:
- Most areas have a physical office and local agents
- Multiple opportunities for discounts for bundling, anti-theft devices, and passive restraint
- Consumer-friendly website
Why you should keep looking:
- Several comparable companies received higher ratings across the board
- Can be expensive if you don’t bundle policies
Auto-Owners Insurance
While Auto-Owners Insurance keeps a fairly low profile, they receive
extremely high marks across the board. In fact, J.D. Power awarded
Auto-Owners Insurance the highest rating in their 2015 Auto Claims
Study, with a 5/5 in every category except for rental car experience.
That puts Auto-Owners Insurance ahead of the pack in terms of overall
customer satisfaction whenever a claim is filed.
The fact that Auto-Owners Insurance has been around since 1916 should
also put consumer’s minds at ease. During that time, they have
exhibited financial stability consistently. Auto-Owners Insurance also
has 6,300 independent agents, meaning you can buy your policy directly
from an individual who understands your needs.
Why you might like Auto-Owners Insurance:
- High ratings for customer service and claims experiences
- Individual agents who care
- Variety of discounts available
Why you should keep looking:
- Policies can be expensive if you don’t qualify for discounts
- Website isn’t as user-friendly as it could be
Progressive
Progressive Insurance is known for its constant barrage of
advertisements, but they also have a solid base of customers who seem
quite happy with their products. Although they didn’t receive the best
marks possible from J.D. Power’s 2015 Claims Study, they come in
extremely competitive when it comes to pricing.
Other benefits Progressive offers include plenty of opportunity for
discounts, a solid online presence, and their Snapshot program, which
rewards good driving behavior.
Why you might like Progressive:
- Plenty of available discounts and competitive pricing
- Great online presence
Why you might keep looking:
- Other companies receive higher ratings across the board
- Scarce individualized attention from agents
State Farm
Founded in 1922, State Farm Insurance has a history of financial
stability and customer service satisfaction. With physical offices and
agents dispersed throughout the country, State Farm is also known for
offering individual service that simply cannot be matched by online-only
firms.
The company’s biggest benefits include its brick-and-mortar stores
and agents, the many discounts it offers, and its strong mobile app.
State Farm also makes it easy and painless to get quotes online, which
means you don’t have to head into a local office if you don’t want to.
Why you might like State Farm:
- Local offices and agents provide in-person help
- Great mobile app and website
- Plenty of discounts available
Why you might keep looking:
- Average ratings from J.D. Power
The Hartford
With more than 200 years of history in business, The Hartford has
built an excellent reputation for customer service and claims
processing. As of today, the company is still receiving high marks from
companies like J.D. Power. In its 2015 Auto Claims Satisfaction study,
The Hartford received excellent marks (4/5 or 5/5) in every category
except for service interaction.
Although The Hartford is an old company, they still offer some of the
best technology in the business. Using their website, you can shop
around for and even apply for a new policy. Plus, you’ll have 24/7
access to agents either on the phone or online.
Why you might like The Hartford:
- Multiple policy discounts
- Top ratings for claims management
- Guaranteed renewals of your policy as long as you can drive
Why you might keep looking:
- Low ratings for service experiences during the claims process
- The best benefits go to AARP members
Why you might keep looking:
- Only available to U.S. military members, veterans, or their close family members
HOW TO PICK A POLICY WITH THE BEST AUTO INSURANCE COMPANIES
Knowing which companies received the highest marks year after year is
just part of the battle. Beyond researching the best auto insurance
companies on the market, you’ll also need to decide which type of policy
to buy – and how much coverage you really need. On top of those
factors, you'll need to consider how high your deductible should be.
Consumer Reports offers an
extremely helpful guide that
highlights the steps you can take to find the best policy for your
needs. Even if you’re fairly happy with your policy, they suggest
shopping around to compare rates at least every two or three years. That
way, you have a good idea of where car insurance rates are headed and
how much you could save if you switch. Plus, it never hurts to shop
around. Based on your age, your driving record, and other factors, the
policy you have now could be considerably cheaper if you switched firms.
Here are some tips to consider as you shop around and compare policies:
Pick a top-rated insurer
By checking auto insurance ratings, you gain insight from each
company’s existing customer base. Consumer Reports suggests reading
through the most recent auto insurance claims and satisfaction studies
to see which companies consistently come out on top.
Set the right deductible
No matter whether you buy liability coverage or full coverage for
your vehicle, you need to pick a deductible that meets you needs.
Consumer Reports suggests choosing a higher deductible if you want to
save on monthly premiums, but setting a lower deductible if you want to
avoid a large out-of-pocket expense in the event of a car accident. “If
you have a good driving record and haven’t had an at-fault accident in
years, or ever, opting for a higher deductible on collision coverage
might be a good bet,” writes Consumer Reports. Just remember to keep
that much cash on hand in case you need it.
Don’t buy state minimum coverage if you truly want a high quality auto policy
While state minimum coverage is less expensive in the short-term, it
can prove extremely costly if you have a claim that far exceeds the cap
on the policy you purchased. By investing in a policy that offers more
generous coverage limits, you can save yourself some heartache and
protect your personal property in the event of a costly accident.
Ask friends and family for recommendations
While reading auto insurance provider reviews and ratings is a smart
move, you can also ask family and friends for their recommendations.
General ratings can help you gauge the quality of any company; however,
personal reviews tend to hold more weight. Ask friends and family
members whether they have had a good experience with their auto insurer
before you purchase a policy. You may be able to nail down the best
insurer for your needs based on the suggestions of others.
Get quotes from multiple companies
If you’ve read plenty of insurance company reviews and still can’t
decide, it might help to get several quotes to compare. Depending on
where you live and other factors, one company could offer a much better
deal on auto insurance than the rest. In this scenario – where one
company is much cheaper over all – you should figure out
why the price is so affordable. Are you comparing apples to apples?
Compare similar policies
Speaking of an “apples to apples” comparison, this part of your
search is crucial. To find the right auto insurance company and policy
for your needs, you need to compare similar auto insurance policies
among multiple providers. This means comparing policies with the same
levels of coverage and a similar deductible.
HOW TO CHOOSE CAR INSURANCE COVERAGE LIMITS
While you can buy a similar level of auto insurance coverage from
multiple insurers, it might be wise to tailor your policy to your
specific needs. The higher your coverage limits, the more you’ll
generally pay for your premiums. However, having higher coverage limits
also means more security in the event of a catastrophic accident. The
same is true for your deductible as well; with a lower deductible,
you’ll pay a lot less out-of-pocket if an accident should occur. On the
flip side, you’ll pay higher premiums to have a lower annual deductible.
As you navigate the intricacies of comparing policies among different
insurers, it’s important to decide on the coverage limits you’re
comfortable with as well. Consider these tips as you move forward with
the purchase of a new auto insurance policy to meet your needs:
Consider your assets
If you own your home and have plenty of other assets, you should
consider buying a policy with higher coverage limits than what is
normally offered. For more peace of mind, consider buying the top tier
of auto coverage to protect your family. With more coverage in place,
you can ensure you won’t run out of coverage in the event of a
catastrophic accident – or worse, get sued by someone who plans to go
after your assets in court.
Of course, some people also buy a generic umbrella policy to kick in
in times like these. With an umbrella policy, you’ll have additional
coverage to tap into if your auto insurance policy’s limits have been
reached, or if someone sues you in a court of law.
Take your car payment into account.
If you paid cash for your car or paid it off slowly over time, it’s
your right to choose an auto insurance policy with any limits you
desire. If you financed your car and still owe money, on the other hand,
your lender might dictate the type of policy you have to buy.
Most lenders who carry auto loans will require you to add
comprehensive coverage with collision benefits to your policy. This type
of coverage is definitely more expensive, but it will help defray the
costs if you should damage or total your car while you’re still making
payments.
Gap coverage is another type of coverage that will “bridge
the gap” between what your car is worth and how much you owe. Since many
newer cars tend to lose value quickly, this type of coverage can be a
smart purchase towards the beginning of your auto loan.
Figure out what kind of driver you are
If you’re a reliable driver who has never been in an accident, having
the highest levels of coverage may be the last thing on your mind. If
you’re not a great driver or have been in several accidents, on the
other hand, you may be keenly aware of just how important those coverage
limits are.
At the end of the day, the type of driver you are and how often you
drive may play a part in the coverage limits you select. If you drive
infrequently, you may be more comfortable with lower or average limits.
If you drive at high risk times or commute back and forth to work, on
the other hand, more or better coverage might help you sleep better at
night.
Decide how much you can afford to pay if you have an accident
Coverage limits play a huge role in how much your auto insurance
premiums cost, but so will your deductible. Since you’ll be required to
pay your deductible in full to access your insurance benefits after an
accident, it’s important to make sure your deductible is affordable
enough you can cover it with your savings. The right auto policy for
your needs will have the right combination of healthy coverage limits
with an annual deductible you can actually afford.
WANT THE LOWEST AUTO INSURANCE RATES? DO THIS.
While auto insurance rates are extremely competitive, they still vary
widely depending on the company you use and the type of policy you
purchase. With that being said, there are still plenty of ways to keep
your costs lower than average. If price is an important consideration in
your search, consider these tips:
Ask about discounts
Some of the best car insurance companies offer discounts on anything
from bundled policies to good credit, zero claims, theft protection
devices, and more. Others offer discounts for paying your six-month
premium in-full or installing an electronic device that lets the company
monitor your driving habits over the long haul.
Allstate Insurance, for example, offers
Drivewise – a
discount program for customers who install a tracking device into their
vehicle. By letting Allstate monitor your driving habits, you can
qualify for a discount of
up to 30 percent.
Take advantage of low mileage discounts
If you work at home or have a short commute to work, some car
insurance firms will extend a discount. Low mileage discounts can also
apply if you carpool to work and share miles and expenses.
Qualifying for a low mileage discount may require you to prove how
much you drive each year. Further, each auto insurance company has their
own limits on how many miles you can rack up and still qualify for this
discount.
The best way to find out if you qualify for a low mileage discount is
to ask your auto insurance agent when you apply for coverage – or even
after you qualify.
Shop around.
If your goal is saving money, the most important step in your search
for car insurance is shopping around. Auto insurance rates can easily
vary by hundreds of dollars per year with the same car and driver. If
you want the best shot at affordable rates, it’s crucial to shop around
with at least 5-6 auto insurance firms.
Fortunately, shopping around online or over the phone is easy.
Most
of the time, a quick phone call or online inquiry is all it takes to get
a handful of new auto insurance quotes in minutes. Make sure to shop
with private companies and insurance brokers who may be able to offer a
car insurance quote from different insurers.
Also, don’t base your decision on price alone. Where securing an affordable policy is important, the
quality of
your auto insurance policy is equally crucial. Buying a cut-rate policy
won’t leave you better off if you get in a wreck and really need
coverage. When shopping for a policy, you should focus on price
and value.
Consider raising your deductible
Whether you’re shopping around for a new auto insurance policy or
planning to keep the one you have, raising your annual deductible is a
smart way to save on your monthly premiums.
If you want a $500 deductible to access your auto coverage, your
insurance will be more expensive than if you chose a $1,000 deductible
from the start. To save money, you should choose the highest deductible
you can reasonably afford to pay.
If you do choose to go with a higher deductible, make sure you keep
enough cash on-hand to cover it at any time. If you have a $1,000
deductible on your auto policy, for example, you should set aside at
least that much in an account – or make sure you keep enough cash to
cover your deductible in your regular emergency fund.
Reduce coverage on older cars
While you might consider full coverage on your cars, that doesn’t
mean you need it. Where full coverage is smart on newer cars, liability
insurance coverage may be a smarter move for older, paid-off models.
To find your break-even point, check out how much your car is
actually worth on a website like Kelley Blue Book. If the cost of full
coverage on your car is nearly as much as the car is worth itself,
converting your policy to liability only can help you save money without
jeopardizing your financial life.
Keep your credit in good shape
Most of the best auto insurance companies check your credit before
they extend a new policy. If your credit is excellent, this will only
help you get the best auto insurance rates. If your credit is poor, on
the other hand, you might be asked to pay a whole lot more.
To keep your credit in good health, check your credit score and
report frequently. While Credit Karma lets you see an estimate of your
credit score for free at any time, AnnualCreditReport.com is a
government-approved website that lets you see your full credit report
from all three credit reporting agencies once per year for free.
Keep insurance costs in mind when you choose a car
The newer your car is, the more expensive your car insurance premiums
will likely be. Also consider the fact that some car models with
expensive replacement parts can cost more to insure regardless of age.
Consumer Reports suggests asking your car dealer to show you the
“Relative Collision Insurance Cost Information Booklet,” produced
annually by the National Highway Traffic Safety Administration. That
way, you’ll be in the best position to avoid models with insurance costs
that are higher than most.
CONCLUSION
When shopping around on the best deal for auto insurance, it’s
important to look at more than just premiums. The best auto insurance
companies should offer more than affordability – they should also
receive good ratings and reviews from their existing customer base, same
goes for life insurance,
burial insurance and health insurance.
The best way to find this out is to complete some research on your
own. Look at some of the recent studies completed and read through them,
then read as many online reviews as you can find. Also, make sure to
shop around and compare rates among the handful of companies you feel
comfortable with. The more you shop around and compare, the better off
you’ll be.
