A comprehensive guide to the best car insurance companies in the USA

If you are a car owner in the USA, you might have an idea about various types of car insurance coverage available and the implications of not having a car insurance. Out of the 50 states in the US, as many as 47 states require you to mandatorily have an auto insurance coverage if you own a car. In New Hampshire, even if you do not have a car insurance, you are still required to be financially responsible to compensate the person you injure or damage done to the property while driving. In Arizona and Virginia, you can still drive without insurance but are required to pay a hefty sum to the state department as a collateral or fee.

The situation means you cannot avoid this necessary expense no matter what you do? So, what should you do to cut down on auto insurance expenses? You need to find best car insurance rates available in your states by finding the best car insurance companies in the USA.

Top 5 Auto Insurance Companies In Your Area

 

Before moving ahead to enlighten you about different car insurance options available in the country, let us shed some light upon auto insurance regulations and the types of car insurance coverage available in the country.

Car Insurance in the United States of America

If you ought to drive a car in the United States of America, you need to comply with a State’s Minimum Car Insurance Requirements. Generally, four different types of basic coverage are included in minimum car insurance requirements. These are:

  • Bodily Injured Liability
  • Property Damage Liability
  • Personal Injury Protection
  • Uninsured/Underinsured Motorist Protection

While the former two are compulsorily required, the latter ones, namely, personal injury protection and uninsured/underinsured motorist protection are optional in many states.

You are only required to fulfill minimum insurance requirements but it is not ideal to have just the minimum insurance coverage for your car.  Although keeping up with the state minimum requirement is what is needed to drive legally in your state, purchasing the state minimum insurance requirements is usually not the best choice.

Remember, if your insurance is not enough to pay for damages in case of an accident, you might attract a lawsuit that will surely add up to the cost. So, instead of cutting on your insurance cost by reducing the coverage, you should think of other ways to make insurance economical for yourself. If you are looking for the best car insurance rates for your car, you need to find the best car insurance company in your state.

 

If you are looking to shop around for car insurance in 2018, we are here to help you make an informed decision. According to majority of insurance buyers, only two factors impact their buying decision: cost of the car insurance and claims disbursal mechanism. If we take these two pointers into consideration, we have a list of best car insurance companies that can offer car insurance at the most economical rates. Let’s have a look:

  • Amica Mutual: Trusted, Reliable & Renowned

According to J.D. Power’s Customer Satisfaction Report, 2015, Amica enjoys second highest ratings in terms of customer satisfaction among 20 car insurance companies. Along with that, the survey concluded that most of the customers of Amica had a very pleasant experience during the claims process.

What Makes Amica one of the best car insurance companies in the USA?

  • Great customer satisfaction ratings: According to an auto insurance study, Amica scores a perfect score in 4 out of 7 categories in terms of customer satisfaction.
  • Financially-strong company: Amica enjoys ‘Superior’ financial stability rating from rating agency- AM Best.
  • No Repair Restrictions: Amica empowers their customers to choose any body shop for repairs and reimburses for the same without limiting their choice.
  • Additional Coverage Facilities: Amica gives an option of upgrading their coverage in lieu of an additional sum. The Platinum Choice Coverage by Amica offers full glass coverage, identity fraud monitoring, prestige rental coverage and even offer rewards for good driving.

Major Turn-offs on Choosing Amica

  • Lengthy & Tiresome Quote Process: It is quite hard to get an official quote from Amica Mutual. You are required to talk to their representatives on phone even if you start the quotes process online.
  • Less Online Resources: Amica’s website is not ideal when it comes to solving insurance buyers queries. There are very less online material for customers to understand the insurance policy they are thinking of buying.

State Farm: Customer-centric Insurance Company offering best car insurance rates

One of the largest car insurance companies in America, State Farm has a huge base of more than 18000 agents to help customers solve their queries and buy insurance easily. The company has invested heavily in technology to simplify the claims process. Its Pocket Agent mobile app enables insurance buyers to send a picture of your car damaged in an accident and file for claim instantly through an agent. Based on its services and hassle-free shopping experience, it can be termed as one of the best companies when it comes to client servicing.

What Makes State Farm one of the best car insurance companies in the USA?

  • Hassle-free claims handling: The company has more than 18000 agents across the country along with online portal and a mobile app. Customers can use any of the mediums to file claims and get excellent support.
  • Excellent Financial Position: State Farm enjoys a ‘Superior’ rating from A.M. Best along with a stable outlook
  • User-friendly Online Quote Platform: State Farm has a simple and feature rich online tool that makes it easier for customers to get quotes in less than five minutes.

Major Turn-offs on Choosing State Farm

  • Lack of common discounts and important coverage: When it comes to driver discounts, State Farm has limited options. It doesn’t offer common discounts such as pay-in-full and automatic pay. But that can be ignored considering that they are not quite useful when it comes to saving money on car insurance. The company also doesn’t offer new car replacement or stacked uninsured motorist coverage.

 

The Hartford: Maximum policy options for customers

The Hartford is one of the largest car insurers and surely deserves a spot in the best car insurance companies list. With the widest range of policy options, extra benefits and great discount options, it can be ideal for someone looking for great coverage at an economical cost. Do you know the company also provides customized quote based on your car driving pattern? So, this one is definitely worth considering if you want the best car insurance rates in the USA.

What Makes The Hartford one of the best car insurance companies in the USA?

  • Extensive coverage for mechanical breakdown: The Hartford is one of the few insurance providers that offers a breakdown coverage for repairs that are not covered under car’s warranty
  • Interesting & rewarding benefits: Along with a great range of coverage options, insurance buyers can benefit from the Hartford’s rewarding benefits such as roadside assistance program.
  • Convenient purchase experience: Buying a policy from The Hartford is really simple. This is justified by a perfect score in terms of overall purchase experience in a survey by J.D. Power.

Major Turn-offs on Choosing The Hartford

  • Few online resources: There is hardly any online material available for buyers to understand policies.
  • Low claims satisfaction rating: According to an industry survey by J.D. Power, The Hartford does not have a great track record of customer satisfaction in terms of claims - 2 star rating for service interaction.

USAA: Reputed &Highly Revered Car Insurance Provider

USAA is one of the best in terms of reputation, purchase experience and claims settlement. The company only provides car insurance to the member of a US armed forces and their relatives. So, if you have someone in the military, no company can provide a better experience than USAA. Though the pre-imposed condition means that you might find it hard to get a quote, but if you manage to have an insurance from USAA, your car insurance woes will be sorted for life.

What Makes USAA one of the best car insurance companies in the USA?

  • Great purchase experience: According to the 2016 industry report by J.D. Power, USAA is the best when it comes to a delightful purchase experience. The company ranks first nationwide in terms of purchase experience.
  • Financially-stable operations: USAA enjoys great financial stability rating from A.M. Best. The highest rating- ‘Superior’ is what USAA is known for.

 

Major Turn-offs on Choosing USAA

  • Restriction: Only members of the military or their family members can buy an insurance from USAA.
  • Lack of coverages: USAA doesn’t have key vehicle coverages such as GAP insurance, new car replacement coverage and interior vehicle coverage to the insurance buyers.

Best car insurance rates don’t fall out from the sky

If you are thinking that you will be able to find cheapest car insurance without an effort, you are wrong. Car insurance companies have become smart over the years. They tend to optimize their price based on the comfort level of a customer with them. This means that while you stick to the same insurance provider for years, they will slowly inflate the annual premiums by analyzing your propensity to spend on insurance.

This means you should not be comfortable with a single insurance provider for life. You need to research from time to time to find the best car insurance rates. The more you research, the more will you be less likely to be prone to the problem of price optimization. Companies spend hundreds of dollars annually on tracking online activity of their consumers. So, if you are browsing car insurance quotes online, your insurance provider will not be able to frame you in an unjustified quote based on analytics.

Tips to get the best car insurance rates from insurance providers

Relying just upon the best car insurance company doesn’t safeguards you from escalating car insurance costs. You need to spend time and energy in taking measures to keep your annual car insurance premium low. While researching and comparing online quotes help, here are few more tips that will help you make the right decision from the list of best car insurance companies in the USA:

  • Combine multiple insurance policies: Insurance providers offer collective packages that can help you lower down insurance cost. For example, if you have a car insurance with one company, ask for a quote if you agree to shift your home insurance with the same company. Having multiple insurance policies for same company provide benefit through discounts and lower insurance premiums.
  • Check out for group insurance schemes: If you are part of a community or corporate organization, you can ask your employer for available insurance options. Large corporate often end up getting huge discounts from insurance providers as they collectively buy insurance for their employees.
  • Ask for a higher deductible: If you can afford to cover expenses due to an accident yourself, you can increase your deductible. This is the amount you pay upfront and can help you lower your coverage cost significantly. Make sure you are financially-capable of paying a deductible else you will land up in trouble in case of an accident.
  • Maintain a solid credit score: If you have a strong credit score, you will be able to get a better deal from an insurance provider. The best car insurance companies scrutinize your credit ratings before providing you a quote. If your credit rating is poor, they can deem you as a high risk prospect that will increase your car insurance rates.

What next?

Now that you know everything about best car insurance companies and things to do for getting best car insurance rates, it is time to use that knowledge to research and grab the best offers on car insurance. Always make sure that a car insurance quote is personalized. So, the more you will work on reducing cost, the more benefit you will receive in the long run. If you are still having troubles getting the best car insurance rates, you can always compare multiple policies online.