How to Research Auto Insurance Companies in 2024 (Follow These 5 Steps)
How you research auto insurance companies is by checking their financial stability to ensure they can cover claims and reviewing customer feedback and satisfaction ratings for insights into service quality. With thorough research, you can find rates from as low as $30/mo for minimum coverage.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Oct 25, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 25, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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How to research auto insurance companies involves checking their financial stability through rating agencies, reviewing consumer satisfaction ratings, and comparing quotes on reliable comparison websites.
It is essential to thoroughly research and compare insurance companies because not all auto insurance companies offer the same thing. This way, you can ensure that you select a financially stable company capable of efficiently and fully paying any claims.
Enter your ZIP code into our free comparison tool above to get started on finding the right car insurance.
- Step #1: Assess Financial Stability – Review ratings from AM Best
- Step #2: Check Consumer Satisfaction Ratings – Use J.D. Power for insights
- Step #3: Review Consumer Complaints – Check BBB and state sites for complaints
- Step #4: Use Comparison Websites – Compare rates on insurance comparison sites
- Step #5: Explore Auto Industry Websites – Find reviews on industry-specific sites
5 Steps to Research Auto Insurance Companies
To research auto insurance companies, start by assessing their financial stability and evaluate customer satisfaction ratings, and consumer complaints. In addition, comparison websites allow you receive multiple quotes at once, making it easier to compare companies and decide which one is the best for you.
Step #1: Assess Financial Stability
One of the most important car insurance factors to consider when buying auto insurance is the company’s financial stability. Insurance companies are financial institutions that must have significant amounts of money set aside as financial reserves. These funds allow insurance companies to pay claims quickly and easily when policyholders file them.
During catastrophic events, such as tornadoes, earthquakes, or hurricanes, policyholders may file many claims, and insurance companies with strong financial reserves can pay those claims quickly. You can research the financial stability of an auto insurance company by visiting the website of an insurance rating organization.
Read More: Who are the reputable auto insurance companies?
AM Best, Fitch, and Standard & Poor’s are the most popular rating companies. Each regularly evaluates insurance company financial reserves, credit ratings, and corporate financial strength.
Auto insurance companies with ratings of A+, A, or A- are in excellent financial condition. Insurance companies with lower grades have smaller financial reserves in place, less favorable credit ratings, or are less financially strong.
Step #2: Evaluate Consumer Satisfaction Ratings
Another aspect to consider in your car insurance research is the insurance company’s consumer satisfaction rating. J.D. Power and Associates conducts annual surveys to evaluate how happy consumers are with insurance company customer service, claims processing, rates, and overall response to their needs. See our ranking of auto insurance companies with the best customer service.
To give you an idea of how companies compare, here’s a table showing customer satisfaction scores for Allstate and State Farm from a recent J.D. Power survey:
Allstate & State Farm Customer Satisfaction (out of 1k) & J.D. Power Ratings (out of 5)
| U.S. Region | Allstate Customer Satisfaction | State Farm Customer Satisfaction Rank | Allstate J.D. Power Rating | State Farm J.D. Power Rating |
|---|---|---|---|---|
| California | 808 | 824 | 3 | 4 |
| Central | 844 | 828 | 4 | 3 |
| Florida | 847 | 834 | 5 | 3 |
| Mid-Atlantic | 816 | 834 | 2 | 3 |
| New England | 830 | 844 | 4 | 4 |
| New York | 831 | 845 | 3 | 4 |
| North Central | 822 | 841 | 3 | 4 |
| Northwest | 816 | 820 | 3 | 3 |
| Southeast | 813 | 853 | 2 | 4 |
| Southwest | 826 | 831 | 3 | 5 |
| Texas | 836 | 835 | 3 | 3 |
These types can help you decide when searching for a new auto insurance company.
Step #3: Review Consumer Complaints
You can also research an insurance company through the Better Business Bureau. The BBB will certify insurance companies that work with customers to resolve problems and are committed to providing excellent customer service.
A.M. Best and NAIC Complaint Index for Top Auto Insurance Companies
| Companies | A.M. Best Rating | NAIC Complaint Index |
|---|---|---|
 | A+ | 1.0 |
 | A | 1.2 |
 | A | 1.3 |
 | A++ | 0.8 |
 | A | 1.1 |
 | A+ | 1.4 |
 | A+ | 0.9 |
 | A++ | 1.0 |
 | A++ | 1.2 |
 | A++ | 0.7 |
The BBB also keeps records about insurance companies with high numbers of complaints filed with the BBB. If you’re wondering, “Where can I find unbiased reviews of auto insurance companies?” your state insurance website is another valuable resource for information about auto insurance companies.
Each state maintains an informational website with information about insurance companies licensed to operate within its borders.Michelle Robbins Licensed Insurance Agent
In addition to licensing information, you can find information about consumer complaints and lawsuits filed against auto insurance companies.
Step #4: Utilize Comparison Websites
Another way to research auto insurance companies is through insurance comparison websites. Many comparison websites contract with multiple insurance companies and agents to provide auto insurance quotes.
As a result, you can receive quotes from several companies and only enter your information one time. This makes it easier to compare online auto insurance companies and better understand which ones offer reasonable coverage rates.
Many comparison websites have consumer forums where visitors can ask questions and discuss problems or issues they have had with insurance companies.
Step #5: Explore Auto Industry Websites
Many websites dedicated to the auto industry have a section specifically on car insurance. Auto industry websites can also provide information about the safety of specific car models, including insurance industry evaluations and repair rates.
These websites may provide detailed reviews of auto insurance companies, including consumer satisfaction, premium rate evaluations, and everyday consumer complaints.
Another source of information is insurance company websites. Almost all auto insurance companies have corporate websites that provide detailed information about their company.
You can learn about their other insurance and financial products, company history, customer service philosophy, and corporate structure.
Most auto insurance company sites provide detailed information about their coverage and policyholder benefits. Additionally, you can gain insight into how easy or difficult it may be to file a claim online or speak with a customer service representative.
Unbiased comparison sites also provide a great opportunity to compare rates (Read More: Where to Compare Auto Insurance Rates).
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More About Researching Auto Insurance Companies
Are you still wondering how to research auto insurance companies? The best way to find car insurance is to research potential insurance companies thoroughly. While a company may have a snazzy television commercial tempting you to buy car insurance from them, advertising low rates doesn’t guarantee they will provide you with the best insurance coverage possible.
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— AutoInsurance.org (@AutoInsurance) June 5, 2023
You can now search for auto insurance using our free auto insurance comparison tool by entering your ZIP code below for free online auto insurance quotes.
Frequently Asked Questions
How do I research auto insurance companies?
When researching auto insurance companies, consider their financial stability and customer feedback. Look into their ratings, customer reviews, and any complaints against them to ensure you get the best deal.
Where should I start my research on auto insurance?
To begin researching auto insurance, consider steps like identifying how much car insurance you need, gathering information about different insurance companies, comparing coverage options, rates, and discounts, reading customer reviews and ratings, seeking recommendations, and utilizing online resources and tools for further research.
Why is it important to research auto insurance?
Researching auto insurance is crucial for finding the best coverage options at competitive rates, complying with legal requirements, and making informed decisions about protecting your vehicle and yourself in case of accidents or other incidents.
What factors should I consider when researching auto insurance?
When researching auto insurance, consider factors such as coverage options, auto insurance deductibles, premiums, discounts, customer service, and the financial stability of the insurance.
How can I evaluate the reliability of an insurance company during my research?
To evaluate an insurance company’s reliability, consider financial ratings, complaint ratios, customer reviews, and industry rankings and awards.
What should I do once I’ve completed my auto insurance research?
After conducting your research, you should narrow down your options, contact each insurer for a detailed quote, review policy documents, clarify any questions or concerns, make an informed decision, and complete the application process to purchase your chosen auto insurance policy.
What resources can I use to research auto insurance?
Resources for researching auto insurance include insurance company websites, comparison websites, state insurance departments, consumer reviews, and independent agents/brokers who can provide personalized guidance and access to multiple insurance carriers. Our comprehensive guide teaches you how to find auto insurance agents in your area.
What is the best site to compare car insurance?
A common question is, “What is the best website to compare auto insurance?” Several reputable sites can help you find the best rates and coverage options. Some of the top choices include:
These sites provide valuable tools and resources for comparing different auto insurance policies, ensuring you make an informed decision.
What are the top 3 auto insurance companies in the US?
The top three auto insurance companies in the U.S. typically include State Farm, Geico, and Progressive, which are known for their market share, customer satisfaction, and competitive pricing.
Which insurance company has the most complaints?
While complaint rates vary, companies like Allstate and State Farm have historically received more complaints than others. Review the National Association of Insurance Commissioners (NAIC) Consumer Complaint Index for the most current data.
Who is cheaper, Geico or Progressive?
Geico is cheaper than Progressive, with minimum coverage available for about $30 per month, while Progressive charges around $39 monthly. However, remember that your driving history and location can also affect pricing. For the most accurate rates, consider getting quotes from both companies. Learn more about Geico’s rates in our Geico auto insurance company review.
Which insurance company insures the most cars?
State Farm is the largest auto insurance provider in the U.S., insuring the most vehicles across the country. They have a reputation for reliable coverage and customer service. Geico and Progressive also rank high, with large market shares and millions of cars insured.
State Farm’s dominance is partly due to its extensive network of agents, while Geico and Progressive attract customers with competitive rates and strong online tools. All three companies offer a range of coverage options and discounts, making them popular choices for various drivers.
Who is the most trusted insurance company?
USAA, State Farm, and Amica are frequently recognized as some of the most trusted insurance companies due to their exceptional customer service, strong claims handling, and financial stability. USAA, in particular, is highly rated for its service to military members and their families, while Amica consistently ranks high in customer satisfaction.
State Farm’s vast network of agents also adds a personal touch to its reliable service. Trustworthiness can vary, so it’s advisable to check reviews and ratings.
How do people choose insurance companies?
People choose insurance companies based on several factors, including price, coverage options, customer service reputation, recommendations from friends or family, and online reviews. Many also use comparison tools to evaluate their options. If you’re wondering how to pick a car insurance company, it’s essential to weigh all of these factors to ensure you choose the one that best meets your needs.
What six factors should you consider when you are buying auto insurance?
When buying auto insurance, consider the following factors:
- Coverage options (liability, collision, comprehensive)
- Premium costs and deductibles
- Discounts available
- The insurance company’s financial strength and stability
- Customer service and claims handling
Remember to check customer satisfaction ratings, as they can provide valuable insight into other policyholders’ experiences.
Is there a database for insurance policies?
Do insurance companies have a central database? There isn’t a centralized database accessible to the public for all insurance policies. However, various state insurance departments provide databases for checking the status of insurance companies, and some sites allow consumers to review policy options.
Which insurance company has the highest customer satisfaction?
According to recent surveys and studies, companies like USAA and State Farm consistently rank high for customer satisfaction due to their excellent service and support. J.D. Power and Consumer Reports are good sources for these ratings. See what customers have to say in our USAA auto insurance review.
How do you know if an insurance company is financially stable?
To determine if an insurance company is financially stable, you can check its ratings from independent agencies such as A.M. Best, Moody’s, or Standard & Poor’s. These agencies evaluate the insurer’s financial health and ability to pay claims. Some of the best auto insurance companies for paying claims are recognized for their strong ratings from these agencies.
A higher rating indicates stronger financial stability, ensuring the company can meet its obligations to policyholders during claims. Additionally, reviewing the company’s history and performance over time can provide further insight into its long-term reliability.
Get started today with our easy auto insurance rate comparison tool. Enter your ZIP code below to find the best rates for your needs.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.