In putting together this article on the best car insurance companies today, we looked at many factors regarding the price you pay and how your driving history affects price. Other factors at play that can alter the price you pay includes your coverage level and credit history. Besides price, customers are looking for an auto insurance company that offers excellent customer service, and quick payouts when needed.
Best Car Insurance Companies
How to Pick the Best Car Insurance Company
We all have to get auto insurance and hope we never need it. But when we are involved in an auto accident, the main thing is that the car insurance we pay for works quickly and efficiently, with no hassles or delays. With all this in mind, we have assembled the following list based on customer surveys to offer our list of the best car insurance companies today.
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*Note that some of these companies such as USAA offer excellent customer service but are only available to members of the government and the armed forces and their families. Others such as American Family are highly rated for claims handling, but coverage is only available in 19 states.
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The bottom line is that the best car insurance company for you depends on your specific needs, but the following list offers America's top-rated companies and explains their individual pros and cons.
Top Rated Car Insurance
Despite the fact that it is only open to government, military personnel, veterans and their families, USAA holds the top rating, followed by American Family, then the big three for national coverage and price are State Farm, Geico, and Nationwide insurance.
AAA
While it ranks well in customer loyalty and most likely to renew, AAA ranks poorly in claims handling and customer service. It comes in tied at sixth place overall and rates are higher than the national average.
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Pros: Provides GAP insurance and offers a large variety of driver discounts.
Cons: Insurance rates are higher than the national average.
USAA
The Number One rated car insurance company in terms of cheapest insurance, customer service, USAA is also the company rated most likely to be recommended and that most customers are most likely to renew. America Family offers slightly better claim handling and ties with USAA on customer loyalty.
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Pros: Available in all 50 states and rated number one in customer service and satisfaction.
Cons: Limited to members of the government, military, veterans, and their families.
American Family
Number One in customer loyalty, American Family is also at the top for claims handling but ranks lower when it comes to the cheapest car insurance. Year over year, American Family has moved up the rankings over last year, improving its rating in every category.
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Pros: Number one in claims handling and rated highly in customer service.
Cons: Many competitors have lower rates and America Family is only offered in 19 states.
State Farm
The popular State Farm comes in at third place overall. It ranked Number Two for best car insurance company for seniors and ties with American Family for customer service, coming in at Number Three for claims handling. Its rates are the third lowest in the nation.
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Pros: Comes in highly for customer service and claims handling. Premiums are below the national average.
Cons: Policies are only available through a local agent.
Geico
Coming in at fourth place, Geico ties with Nationwide for best overall company, finishing highly for claims handling, customer service, and customer loyalty. It offers cheap rates, coming in behind USAA for affordable insurance.
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Pros: Low rates for teen drivers and some of the lowest rates overall. Scores high on claims handling.
Cons: Has higher rates for drivers with DUI than most carriers.
Nationwide
Tied with Geico for customer service, Nationwide comes in at Third Place for claims handling and is also high with customer loyalty. It is in the top five insurance companies for being most likely to recommend.
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Pros: Above average scores for claims handling and customer service with affordable rates for drivers with poor credit.
Cons: Higher rates than many competitors and premiums for DUI are high.
Farmers
Tied with Travelers for best overall company, Farmers is rated Number Three for claims handling, and Number Four for customer service. It also ranks high for customer loyalty but offers some of the highest rates overall.
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Pros: Ranked highly for customer service and claims resolution.
Cons: Average premiums are higher than most insurance companies.
Travelers
Travelers is tied for fourth place in customer service and ranks high in claims handling but is lower in customer loyalty and most likely to recommend. Rates are below the national average for teen drivers, seniors, and those with a DUI.
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Pros: Average rates are lower than the national average
Cons: Low ratings for claims handling.
Allstate
Allstate comes in at sixth place for customer loyalty and is lower in terms of customer service, claims handling, and most likely to renew. It is among the most expensive car insurance companies on our list including for senior drivers.
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Pros: According to customers, it is easy to open a policy.
Cons: Much higher rates than the national average.
Progressive
At number ten in our rankings, Progressive did poorly in customer loyalty and customer service, as well as the category of likely to recommend. It did a bit better in claims handling, but overall, its rates are higher than the national average.
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Pros: Lower rates for drivers with poor credit or a DUI.
Cons: High rates for teen drivers and ranks last for customer loyalty.
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Summary
For those in the Armed Forces, USAA is hard to beat and for those in the 19 states that it covers, American Family rates high on our list. But for most drivers from coast-to-coast, State farm, Geico, and Nationwide currently offers the best overall car insurance coverage. That said, your personal preference for car insurance has much to do with your age, your driving record, your credit score, and where you live as well as what you drive. Finding the best car insurance company for you also depends on what features are most important such as quick claims handling and excellent customer service.
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When it comes to cost, we found that the average annual premium for car insurance today is $1,547. With that in mind, the cheapest car insurance is available from USAA, Geico, State Farm, and Travelers, in that order. Highest rates were seen at AAA, Farmers, and Allstate. As you've no doubt heard in many car insurance TV commercials, the best way to shop price is to compare quotes from several companies. Note that some of the survey information provided herein was compiled by US News, Forbes, and Nerdwallet.
