10 Best Auto Insurance Companies in 2024

State Farm, Geico, and Progressive take our top spots for the best auto insurance companies because they offer diverse coverage options, low rates, and solid customer service.

While doesn’t always have the cheapest auto insurance, State Farm is the overall best of the major auto insurance companies. State Farm has the highest-rated auto insurance because of its extensive network of agents, diverse coverage options, and the Drive Safe and Save program.

Our Top 10 Picks: Best Auto Insurance Companies

Read on to explore the top-rated auto insurance companies and what they offer you. Then, use our free quote comparison tool to compare multiple companies and find the best rates for your needs.

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#1 – State Farm: Top Pick Overall

Pros

• Extensive network of local agents: State Farm has a huge network of local agents ready to help drivers.
• Discount availability: With 13 discounts, State Farm offers convenient options most drivers can take advantage of to save. Read our State Farm auto insurance review to explore discount options.
• Financial stability: State Farm auto insurance reviews get great financial ratings, meaning you won’t have to worry about claims being paid.
• Coverage options: State Farm offers plenty of add-ons to customize your policy with, including roadside assistance plans and rideshare insurance.

Cons

• Rates can be high: Drivers with low credit scores should compare State Farm insurance rates with other companies as they’ll likely find lower prices.
• Limited online tools: State Farm offers a more personalized touch to its insurance. While that’s great for drivers looking for a traditional insurance experience, it’s not ideal for people who prefer to do things online.
• Mixed reviews: Some drivers love their State Farm experience, while others complain about the customer service and claims resolution process.

#2 – Geico: Best for Affordable Rates

Pros

• Convenient online tools: You can easily get quotes, sign up for coverage, manage your policy, and start claims on Geico’s website or mobile app.
• Affordable rates: Geico is a top-rated auto insurance company for many reasons, but one of the biggest is that it consistently offers low rates.
• Specialty discounts: Originally founded to provide car insurance for government employees, Geico offers specialty discounts for federal workers. Read about Geico’s other discounts in our Geico auto insurance review.

Cons

• Fewer local agents: Geico focuses more on its online experience, so drivers looking for person-to-person help will have a harder time getting in touch.
• High rates for high-risk drivers: Geico is usually affordable, but high-risk drivers will probably find better rates elsewhere.

#3 – Progressive: Best for Drivers on a Budget

Pros

• Snapshot: Safe drivers can save by signing up for Snapshot, Progressive’s UBI program.
• Name Your Price Tool: Enter your monthly insurance budget into Progressive’s Name Your Price tool to get a list of coverage options that fit.
• Low rates for high-risk drivers: High-risk drivers looking to save might find the lowest rates with Progressive.
• Loyalty discounts: Progressive offers increasing loyalty discounts, depending on how long you’ve been a customer. Learn about other discount options in our Progressive auto insurance review.

Cons

• Large rate increases after accidents: Most insurance companies increase rates after an at-fault accident, but the increase is more significant at Progressive.
• Snapshot can increase rates: Unlike many UBI programs, Snapshot can increase your insurance rates if you don’t drive safely.

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#4 – Allstate: Best for UBI Savings

Pros

• Drivewise: Drivewise can save you up to 40% on your insurance. Read our Allstate Drivewise review to see if it’s a good fit for your driving. Alternatively, low-mileage drivers should explore our Allstate Milewise review.
• Wide network of agents: Allstate has one of the largest networks of local agents in the country, meaning it’s easy to find help when you need it.
• Extra coverage options: You’ll have plenty of customization options when you shop at Allstate. Explore what Allstate offers in our Allstate auto insurance review.

Cons

• Higher rates: Allstate car insurance rates are typically more expensive than many of its competitors.
• Below-average customer ratings: Although it’s one of the largest insurance providers in the country, Allstate insurance reviews score below the national average.

#5 – USAA: Best for Military Members

Pros

• Low rates: Regardless of where you live, USAA is almost always the cheapest insurance option. Learn how USAA offers such low rates in our USAA auto insurance review.
• Specialized coverage: USAA’s purpose is serving military members and their families. To that aim, USAA offers special coverage and discounts meant specifically for the military.
• Superior customer service: USAA consistently receives high marks for its customer service experience.

Cons

• Membership eligibility: Only active and retired military members and their families are eligible for USAA membership.
• Limited discounts: USAA offers fewer discounts than many of its competitors.

#6 – Liberty Mutual: Best for Customizable Coverage

Pros

• Unique coverage options: Liberty Mutual offers a variety of ways to customize your coverage, including better car replacement and original parts replacement. Explore other coverage options with our Liberty Mutual auto insurance review.
• Excellent discounts: Liberty Mutual offers 17 ways to save on your insurance, including a hard-to-find alternative energy discount.
• Easy-to-use website: Many customers praise Liberty Mutual for making it easy and convenient to manage their policies online.

Cons

• Average customer service: Liberty Mutual’s customer reviews are mixed, with some complaining about their experiences with representatives.
• Rates can be high for some drivers: High-risk drivers will likely find cheaper rates with another company.

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#7 – Nationwide: Best for Personalized Service

Pros

• On Your Side review: Car insurance can be confusing, but Nationwide has you covered with the On Your Side review. A representative will evaluate your current coverage once a year to make sure you’re not paying for insurance you don’t need.
• Vanishing Deductible: Nationwide offers the Vanishing Deductible program, which reduces your deductible by $100 for every year you spend claims-free.
• Plenty of discounts: Nationwide offers a respectable 11 discounts to help drivers save. Popular choices include safe driving and good student discounts.

Cons

• Limited availability: Despite its name, Nationwide does not sell insurance in all 50 states.
• Average rates: While Nationwide isn’t the most expensive option on the market, it’s also not the cheapest. See how much you might pay in our Nationwide auto insurance review.

#8 – Farmers: Best Discount Selection

Pros

• Signal app: Download the Signal app and enroll in this UBI program to save up to 30%.
• Impressive number of discounts: With a whopping 23 available discounts, Farmers offers a way for almost every driver to save.
• Excellent coverage options: If there’s room in your budget, Farmers offers a variety of optional coverages like customized equipment insurance.

Cons

• Not available in all states: Although it manages policies in all 50 states, you won’t be able to purchase new auto coverage in Florida.
• Lacking customer loyalty: Despite offering excellent coverage options, Farmers struggles to keep its customers. Read more customer reviews in our Farmers auto insurance review.

#9 – Travelers: Best for Safe Drivers

Pros

• IntelliDrive: Save up to 30% on your policy by signing up for IntelliDrive and regularly practicing safe driving habits.
• Flexible coverage options: There are plenty of ways to customize your Travelers policy, including rideshare and gap insurance. Explore all your add-on options in our Travelers auto insurance review.
• Claims Forgiveness: Travelers offer two add-ons that forgive at-fault accidents, which prevents your rates from increasing.

Cons

• Limited availability: Travelers is only available in 42 states.
• Average rates: Travelers’ insurance rates stay relatively close to the national average. It’s not the most expensive option, but you’ll also find cheaper rates elsewhere.

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#10 – American Family: Best for Customer Service

Pros

• Excellent customer service: American Family has a reputation for providing excellent customer service.
• Bundling discounts: Earn a discount by purchasing other American Family products with your auto policy, like homeowners insurance.
• KnowYourDrive: Safe drivers can save up to 30% by enrolling in American Family’s KnowYourDrive program.

Cons

• Availability limited: American Family sells insurance in just 19 states. Find out if you can purchase a policy in your state in our American Family auto insurance review.
• Lacking online tools: American Family focuses more on the traditional method of selling insurance through representatives and lacks many of the online options its competitors offer.

Best Auto Insurance Companies Rates

While many factors affect which company has the best auto insurance, prices always play a significant role. Check below to see the average rates for minimum insurance from the most reputable car insurance companies.

Minimum Coverage Auto Insurance Monthly Rates by Age and Gender

Check below to compare full coverage rates from the best car insurance companies.

Full Coverage Average Monthly Auto Insurance Rates by Age and Gender

You’ll notice that there’s a significant price difference between minimum and full coverage insurance. While minimum insurance is your cheapest coverage option, experts agree that most drivers benefit from more protection.

The Best Auto Insurance Companies for Your Needs

The annual economic cost of car accidents in the United States is an estimated $242 billion. Here are a few relevant auto insurance statistics provided by the National Highway Traffic Safety Administration:

• Average automobile liability claim for property damage: $3,231
• Average liability claim for bodily injury: $15,443
• Average collision insurance claim: $3,144
• Average comprehensive insurance claim: $3,144

There are numerous auto insurance companies of varying types and sizes, so choosing the best insurance for a vehicle may be just as risky as driving without insurance.

It turns out that the best auto insurance companies from 2015 are still the leading insurance companies today. However, only 10 auto insurance companies dominate 72% of the national private passenger auto insurance market.

Even more unbelievable is that only four of these 10 auto insurance companies share 51% of the same market.

We aren’t here to tell you which company to choose, but we are here to inform you of nearly every aspect to consider when making your choice. For this reason, we list the companies in alphabetical order.

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Factors That Determine The Best Auto Insurance Company

Several factors determine the success of an auto insurance company. One definition of success is the length of time a company has been in business. Keep this in mind in our summaries of the top car insurance companies.

Another way to define the success of an insurance company is by how others rate them. Customer satisfaction is essential, especially for people changing from their current insurers.

After a long commitment to one car insurance company, you would expect quick and efficient service when you need it. After all, you are buying a service, and your insurer should make its service worth your time and money.

If you are involved in an accident, being put on hold for 10 minutes, or being told by a machine that an agent will get back to you as soon as possible, only to find they never take the call can be frustrating.

Each of the companies we cover below has excellent customer ratings, not just for auto insurance but for their other products.

Our third standard focuses on the companies with the highest market share, as those insurers consistently rank higher for customer service and claims paid. In addition, most insurance shoppers frequently overlook financial strength, which is a significant factor.

After all, signing up with a financially unstable company may mean that by the time you’re involved in an accident and file a claim, the company may be facing bankruptcy and be unable to pay out.

Finally, the cost of the policy is also a significant factor to consider. Review the rates we’ve provided to determine which companies offer lower rates than others. However, the only way you’ll know for sure is by seeking out an actual quote.

The Best Auto Insurance Rates By Driver

Not just laws affect your rates; many companies offer better and more affordable coverage depending on many other factors.

The following sections will discuss national average monthly rates for the top 10 auto insurance companies based on demographics. If you are looking for the best coverage for drivers over 50 or the best coverage for younger drivers, we have that information below.

Now, let’s look at some of the best-ranked auto insurance companies.

The Best Auto Insurance Rates by Gender

Statistically, males are more likely to take risks than females. For that reason, they typically see higher car insurance rates.

The following table compares the average annual rates from the top 10 auto insurance companies by gender. We have removed teenage drivers from the table below since their age heavily influences their rates rather than gender. Find out about male and female auto insurance rates below.

Auto Insurance Monthly Rates by Age, Gender, & Coverage Level

All but two companies charge from $3 to $23 more monthly to insure a male driver than a female driver.

Progressive charges pennies more for females than males. Surprisingly, Geico charges almost $2 a month more for females. Add Geico to your list if you’re a male and you’re worried about your gender affecting your auto insurance rates.

Remember that some states have already outlawed auto insurance rates based on gender:

• California, Hawaii, Massachusetts, Montana, Pennsylvania, North Carolina, and Michigan have barred auto insurance companies from determining rates based on gender. (Read More: Auto Insurance Companies Pulling Out of California)
• Montana was one of the first states to outlaw determining rates based on gender and marital status. The law came into effect in 1985.
• In July 2020, Michigan passed a new law prohibiting insurance carriers from determining rates based on anything but driving record, age, vehicle a driver chooses to drive, and location.

Keep a close eye on your state legislation because it may not be too long before other states start to follow suit.

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The Best Auto Insurance Rates by Marital Status

Getting married can lower your auto insurance rates. The savings come from bundling multiple policies or adding more than one vehicle to the same auto insurance policy.

In the table below, we compare average monthly rates from the top 10 companies based on marital status. Once again, we removed teenage drivers from the table below since their age more heavily influences their rates than their marital status.

Auto Insurance Monthly Rates by Marital Status

If you are single, Geico, Travelers, and USAA provide the best rates. If you are married, then Allstate, American Family, and Farmers provide the best rates.

Interestingly, not all companies give married couples a break. Drivers who get married while holding a policy with State Farm, Travelers, and USAA will see an increase in auto insurance rates.

Geico and State Farm have very similar rates for single and married people, with a difference of as little as $2 a month.

Read More: Best Insurance Providers for Married Couples

The Best Auto Insurance Rates by Credit Score

Depending on your state, your credit score might heavily impact your auto insurance rates. People with poor credit sometimes pay two to three times more than people with good credit.

Ultimately, you will be the one to decide which car insurance company best serves your needs. However, to help you make that choice, you may first need to determine the target audience for each company. To that end, we’ve gathered pertinent data about each of the top 10 companies.

Find out which of the top 10 insurance providers care the most about your credit score by looking at the rates below.

Full Coverage Auto Insurance Monthly Rates by Provider & Credit Score

You will have a rate based on your credit score when you purchase your first policy, and this rate may change in the future if your credit score dips or improves.

For this reason, we have looked at the jump in rates from good credit to fair credit and from fair credit to poor credit.

Farmers, Progressive, and Travelers are the most forgiving of drivers who move from a good credit score to a fair one.

Progressive, Nationwide, and Travelers are the most forgiving for drivers who move from a fair credit score to a poor credit score. So if your credit isn’t the best, Progressive may be your best bet.

Read More: Best Auto Insurance Companies That Don’t Check Credit.

The Best Auto Insurance Rates by Driving Record

If there’s one factor that insurance companies can use in determining rates that is non-discriminatory, it’s your driving record.

Suppose you are a dangerous driver who’s caused multiple accidents or committed numerous traffic violations. In that case, you’ll be considered a high-risk driver and receive auto insurance rates higher than average.

Look at the table below to see how the top 10 insurance companies weigh various traffic violations against your auto insurance rates.

Auto Insurance Monthly Rates by Driving Record & Provider

When you purchase your first six-month policy, your rates are based on your driving record when getting the policy.

If you already have a driving record with a speeding ticket, American Family, Geico, or USAA are your best bets.

Geico, State Farm, and USAA have better rates for those with an accident, and Progressive, State Farm, and USAA have better auto insurance rates for drivers with a DUI.

The Best Auto Insurance Rates by Commute

The more you drive, the more your chance of getting into a car accident increases. If you regularly drive during hectic times of the day, like rush hour, this might impact your auto insurance rates.

Driving less than average can help you save money and qualify for low-mileage discounts. However, driving more than average could lead to higher overall rates.

In commute distance, a shorter commute is considered 10 miles or 6,000 miles per year. A long commute is considered 25 miles or 12,000 miles per year.

Although the monthly increase is typically small for longer commutes, your drive time does raise your rates. For example, Farmers, Progressive, and Nationwide have the smallest rate jump at less than $3 monthly between short and long commutes. 

The Best Auto Insurance Companies for Teens

Now, let’s look at how much auto insurance from the top 10 auto insurance companies will cost a teenager or a driver under 25. Again, young drivers get charged the most for auto insurance.

Not only do insurers equate age with driving experience, but fatal crash statistics back up this claim.

With that in mind, see the average rates teenagers pay monthly for auto insurance with the top 10 companies in the table below.

Farmers Teen Full Coverage Auto Insurance Monthly Rates by Provider

On a national level, Geico, Nationwide, and USAA are some of the best auto insurance companies for young drivers since they charge the least for their rates. 

The Best Auto Insurance Rates for Young Drivers

Moving on to drivers in their 20s and 30s, you’ll see a substantial decrease in these auto insurance rates. Although, drivers in this age group are the most likely to need comprehensive coverage.

Check out the average monthly rates from the top providers for drivers in their 20s and 30s in the table below.

Auto Insurance Monthly Rates for 25 to 34-Year-Olds

On a national level, Geico, Travelers, and USAA charge the least for covering single drivers in their mid-20s to mid-30s.

The Best Auto Insurance Rates for Mature Drivers

If you’re between 30 and 50, you’re getting some pretty competitive average rates. In fact, your rates will likely be slightly lower than drivers in their 20s.

In the table below, check out the average monthly rates from the top providers for drivers in their 30s through their 50s.

Auto Insurance Monthly Rates for 35 to 59-Year-Olds

On a national level, State Farm, Travelers, and USAA charge the least for covering drivers in their mid-30s until age 60.

The Best Auto Insurance Rates for Senior Drivers

If you’re in your 60s, you’re probably paying some of the lowest auto insurance rates in the country.

See how much auto insurance costs monthly on average for drivers older than 60 in the table below.

Auto Insurance Monthly Rates for 60-Year-Olds

On a national level, American Family, State Farm, and USAA charge the least for covering drivers 60 and older.

Read More: Cheap Auto Insurance for Drivers Over 80

The Best Auto Insurance Companies by Vehicle

The type of car you drive will influence your auto insurance rates. Like luxury SUVs, vehicles that are more expensive to repair or replace almost always cost more to insure than economy sedans.

Similarly, some car models are more likely to be stolen than others. Like sports cars, some vehicles are considered high risk because the temptation to drive recklessly is just too strong.

The cheapest vehicles to insure will be safe, reliable, and relatively inexpensive to fix or replace. See more details about average monthly auto insurance rates based on car models from the top 10 insurance providers in the table below.

Auto Insurance Monthly Rates by Vehicle Type

On a national level, Geico, State Farm, and USAA charge the least for used and new sedans and used SUVs and trucks. Also, car insurance rates on used vehicles are lower than for new cars.

However, the companies that provide the best rates for a new SUV and a new truck are Geico,  Nationwide, and USAA. In addition, USAA auto insurance is consistently among the most affordable, though exclusive.

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The Best Auto Insurance Companies by Coverage Level

You may ask yourself, “Should I try to find affordable auto insurance or the best coverage?” After an accident, a policyholder with insufficient coverage will have to pay for losses above the payout limits. This is a spot in which you do not want to be.

The Insurance Institute for Highway Safety tracks all accident and repair statistics and reports them as insurance loss ratios. A visit to the website will reveal the perceived risk of driving each vehicle’s make and model. Some cars do not perform well in crashes.

In addition, expensive vehicles cost more to repair or replace, and insurance companies charge more to insure them.

Auto insurance coverage levels refer to the differences in the cost of coverage based on the minimum requirements (low coverage), slightly above the minimum (medium coverage), and well above the minimum (high coverage).

Below, you will find the monthly rates from the top 10 insurance providers based on coverage levels.

Auto Insurance Monthly Rates by Coverage Level

American Family, Nationwide, and USAA provide value regarding coverage, whether you are going from low to medium coverage, medium to high coverage, or low to high coverage.

While full coverage auto insurance is more expensive, it provides the best protection and saves you from substantial out-of-pocket expenses.

The Best Auto Insurance Companies by Region

If you plan to move to a new state, these tables may help. When moving to a different state, your current carrier may not have the best car insurance rates, even within the same region.

In some cases, neighboring states have much cheaper auto insurance. As a result, moving there and commuting to work or riding the subway may be more feasible.

We’ve broken down the 50 states into regions so you can take a quick look at the average rate of your current (or future) insurance company.

Midwest

Let’s start with the Midwest. Find your state in the table below and see which company offers competitive rates near you.

Auto Insurance Monthly Rates by Company in the Midwest

There is a $183 monthly difference between the highest and lowest rates per state. Some companies have a difference of $1,583 a month or less. However, we’re specifically referencing Allstate’s rates in Michigan. As you can see, it pays to shop around.

Northeast

Next, let’s take a look at the Northeast. If you’re a New Englander, find your state in the table below to determine what companies offer the lowest monthly rates on average near you.

Auto Insurance Monthly Rates by Company in the Northeast

For the Northeast, the difference between the highest and lowest rates for each state is between $183 and $567 monthly. Therefore, the spread isn’t quite as wide as the Midwest.

Southeast

Now, we move to the Southeast. Check out the monthly auto insurance rates by state for the Southeast down below.

Auto Insurance Monthly Rates by Company in the Southeast

With 14 states, the Southeast is the largest region in the nation. The discrepancy between the highest and lowest rate isn’t quite as drastic as in the Midwest, but it’s close.

Drivers in the Southeast expect to pay a difference of up to $1,333 a month, depending on which company they choose.

Southwest

Next, we shift over to the Southwest, the smallest of the regions. Find your state below.

Auto Insurance Monthly Rates by Company in the Southwest

The playing field is smaller in the Southwest—only four states exist. Their situation is similar to the Northeast.

Drivers in the Southwest will see a difference between the highest and lowest rates, somewhere between $175 and $342 a month, so that’s still worth the time to research and choose the best company for you.

West Coast

Finally, we move to the West Coast. Please look at the chart below.

Auto Insurance Monthly Rates by Company in the West Coast

Regarding auto insurance rates, the West is the most fortunate region in the United States. There is only a $150 and $308 monthly difference in rates, depending on the company drivers choose in each state.

Regardless of what part of the country you live in, one thing is clear: Shopping around for auto insurance pays off. To truly find the best company for you, you will want to seek multiple quotes from the best car insurance companies.

The Best Auto Insurance Companies by State

The state in which you live has a huge influence on your rate. Every state is different, and that difference usually has a lot to do with the laws. For example, one dividing factor between 11 states and the remaining 39 is whether their laws are at-fault-based or no-fault-based.

Typically, no-fault states require drivers to purchase a certain amount of personal injury protection (PIP), which is elective in most at-fault states. However, some no-fault states, such as Michigan, New Jersey, and Florida, have outrageous rates.

In the table below, you can click on the link for different states for an overview of local auto insurance laws and rates. You can also view the average monthly rates by the top companies for full coverage auto insurance. 

Auto Insurance Monthly Rates by Company and State

Find out which states have the cheapest auto insurance rates to get the most affordable coverage near you.

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Financial Ratings of The Best Auto Insurance Companies

The table below shows these three figures for the top 10 companies in the auto insurance market for 2018 and indicates whether they’re rising, falling, or remaining steady based on the NAIC data from 2015 through 2018.

Check out our company reviews to see more specific trend data for these three figures.

Highest Rated Auto Insurance Companies

State Farm, Geico, and Progressive are the top three auto insurance companies in the NAIC market share. In addition, expect these three companies to be in the top 10 in all other research data across the internet.

It’s assumed that any company’s goal is to increase profits. Still, competition and financial stability are seen chiefly in market share and loss ratios, especially in the top 10 companies.

Note that loss ratios can fluctuate yearly, but they should still stay in the safe zone between 60% and 70%. A loss ratio that is lower than 60% shows the company is not paying out on claims. Conversely, a loss ratio above 70% indicates the company may be losing money.

Financial success is a critical aspect of choosing a successful insurance company. Several financial rating companies rank insurance companies based on their financial information, claims, growth, etc.

The Top Four Auto Insurance Companies Based on Market Share

Allstate, Geico, Progressive, and State Farm have dominated the auto insurance industry for quite some time.

We looked as far back as possible on NAIC’s website (2004) and found something interesting. In 2018, these four companies claimed over half the entire auto insurance industry’s market share, but it hasn’t always been that much.

In 2004, these four companies claimed only 41%. In a roughly 15-year period, they fought for and gained 10% of the market share from other companies in the top 10.

Comparing market share in 2004 and market share in 2018 shows who has won the battles and who might win the war. See what we mean in the table below.

Best Auto Insurance Companies by Market Share: The Top Four

As you can see, Geico has grown the most over the last 15 years, followed by Progressive, while State Farm and Allstate have lost market share.

But, when you look at the period between 2013 and 2018, Geico has been closing the market share gap with State Farm, and Progressive has been closing the gap in market share with Geico.

Based on 2018 financials, State Farm is well in the lead in total direct premiums written. Both Geico and Progressive conquered Allstate in 2013 and 2017, respectively.

What sets these four auto insurance leaders apart from one another? There are a few key differences:

• Allstate offers only an agent-based model.
• Geico offers internet-based policies dealing directly with customers and partners with investors.
• Progressive offers both agents and internet-based policies.
• CState Farm is a mutual company owned by its customers, all shouldering risks and rewards equally.

It’s uncertain which business model will win the war, but you have options as the consumer. Your unique needs and preferences will ultimately determine the best auto insurance company for you.

Customer Reviews of The Best Auto Insurance Companies

Judging an auto insurance company by rates and financial stability is a great start, but what about customer service? When choosing or changing auto insurance companies, examining new and recurring customer satisfaction ratings is essential.

Read More: 10 Best Auto Insurance Companies According to Reddit

You should also look into the company’s claims filing process. Getting into a car accident is stressful enough. You don’t want to learn that your insurer’s claims process is slow, confusing, and frustrating when it’s too late.

Fortunately, J.D. Power’s professionals collect data on new and recurring customer satisfaction ratings. As a result, J.D. Power is a well-known go-to source for customer ratings. Here’s a look into the 2019 J.D. Power Rating Scores.

J.D. Power Auto Insurance Regional Ratings

The “*” is an indicator that means the company is not available in all United States areas.

J.D. Power’s comprehensive surveys are completed by over 40,000 participants, making the results trustworthy and reliable.

For example, one of the questions in a 2011 survey that J.D. Power asked of respondents was about the speed and frequency auto insurance companies pay claims and treat customer interactions:

• When companies quickly settled claims for their policyholders, the ratings on this variable were high
• For other companies that regularly deny claims or are slow to pay, customers rated these businesses as poor

Any auto insurance policyholder wants to be sure that their claim will be handled quickly and efficiently if they ever need to file a claim.

No one anticipates having a claim denied when they are in an accident. Companies that settle claims quickly can keep their customers happy and retain their consumer base.

We share data from two of J.D. Power’s annual surveys: the U.S. Auto Claims Satisfaction Study and the Insurance Shopping Study.

Power Circle Ratings

J.D. Power uses “Power Circle Ratings.” These ratings are calculated based on the range between the highest and lowest scores per survey item and award a company in that range with one to five circles.

Five circles mean the company is among the best, and one circle is the lowest possible rating. J.D. Power may assign one or more power circles to any company; however, the company only publicly announces and publishes two power circles or higher ratings.

In other words, Power Circle Ratings work like a distribution curve grouping the companies in the top 10% to 20%.

Essentially, companies that did exceptionally well in a category look more appealing than companies that only did well in the same category. Distribution curves work particularly well in a competitive environment.

The table below shows J.D. Power Circles awarded in two categories: satisfaction of new customers and satisfaction of customers who file a claim. We also provide some definitions for what the circles mean. Check it out.

J.D. Power Ratings and Complaint Ratios

Keep reading to learn about the complaint ratios of top insurance companies.

Complaint Ratios

The NAIC also tracks official complaints about how auto insurance companies do business. This agency calculates a complaint ratio for each company and compares it to the collective national complaint ratio.

The complaint ratio is determined by the number of complaints per year per $1 million of premiums earned by the total annual premiums.

In 2018, the collective national complaint ratio was 1.15; a ratio lower than 1.15 is good, and one higher than 1.15 is not so good. But you’ve got to look at both sides of the coin.

For example, USAA has some of the country’s best rates, and J.D. Power awarded them five Power Circles for handling claims. However, they have one of the highest complaint ratios under the collective national complaint ratio of 1.15.

Nationwide is in a similar situation. J.D. Power awarded them three Power Circles for handling claims, though they have the lowest complaint ratio out of the top 10 companies.

It’s difficult to say if any of the official complaints submitted for both USAA and Nationwide were related to handling claims, but this is an excellent example of how important it is to do your research about each company from every angle.

All 10 of our company reviews provide additional customer satisfaction ratings from Consumer Reports and the Better Business Bureau to dig into consumers’ opinions.

Auto Insurance Discounts from The Best Auto Insurance Companies

The best insurance companies often have many different auto insurance discounts that you can stack together to get major savings. For example, insurers love to create discounts for major life changes, like college, marriage, and even employment.

However, you can also get discounts based on your car and the safety features or anti-theft devices installed. You can also receive discounts for customer loyalty and safe road choices.

Some discounts might only be for a few percentage points, but others can lead to 30% or even 40% in savings.

Often, a car insurance company applies the more significant discounts they provide when drivers use that company’s usage-based driving app, or drivers have specially designed equipment installed in their vehicles.

For example:

• American Family, Nationwide, State Farm, and Travelers offer their highest discounts when drivers use their usage-based programs.
• Geico offers its best discount for drivers who have airbags in their vehicles.
• Liberty Mutual provides a significant discount if you sign up for vehicle recovery services.
• Allstate and Progressive reward customers for having good driving records when they sign on.

Because laws and discounts can change, we have included data based on as many of these characteristics as possible. This should help you consider one of the nation’s top 10 auto insurance companies.

In the table below, we have listed by the company the total number of discounts advertised or confirmed, the highest percentage discount, and our opinion of what kind of customer each is best for. 

Auto Insurance Discounts From Top Providers

Just because an auto insurance company has the best rates doesn’t mean you’ll genuinely value its offerings. Hopefully, the data above will help you find the provider most compatible with your needs.

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Additional Tips for Finding the Best Auto Insurance Company

When you search online, you’ll find dozens of lists showcasing the top insurance companies. While this may seem overwhelming, it doesn’t have to be because some basic companies stand out on everyone’s list.

The chances are that you will be happy with your policy if you receive an affordable quote from any of these companies. But ultimately, the best auto insurance company is the one that fulfills your individual needs the most.

The best way to find your ideal company is to do plenty of research, make a shortlist, and finally get quotes and pick the right one. 

Keep the following tips in mind while you comparison shop:

• There are several different auto insurance companies.
• Finding the best auto insurance company depends on your personal needs.
• Insurance companies receive their ratings based on their financial stability and customer service.
• A company’s ability to pay claims filed is also important.

Also, remember that some regional and smaller companies have been around for a long time and have provided excellent service and have rates that are comparable to the national companies. However, smaller car insurance companies do not appear on many lists because they are not national.

If you are looking to buy auto insurance, you know that there are dozens of auto insurance companies from which you can choose.

The numerous options lead to many concerns, such as choosing the best company with the lowest rates and that has the best policy for your needs.

The good news is that quite a few reputable and successful auto insurance companies sell products you can afford. You’ve already read our overviews above about most of those companies.

You’re now familiar with what type of driver each insurer caters to, what regions of the country those companies are cheapest in, and what auto insurance discounts and options are readily available.

If you still need help choosing the right insurer, read on for a few more tips to keep in mind.

The Best Auto Insurance Companies: The Bottom Line

The bottom line is that the best companies for auto insurance receive their high ratings for a reason. They have consistently provided excellent service and products to their customers.

We covered the familiar companies that have made it into the coveted top insurance companies list in depth for you above. The best way to find the right company is to compare personalized auto insurance rates. Get started with our free online comparison tool.

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