Best Car Insurance Companies of 2024
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Last Updated: December 13, 2023
Having car insurance by your side can help with costlier expenses associated with road accidents and auto repairs. It provides full coverage if you ever get involved in a car accident, from legal fees and lost income to the injured person's medical expenses. But with so many options in the automotive industry, how can you find the best car insurance company to return the best value to your investment?
Not all car insurance companies are created to deliver the best-intended results. Most car insurance providers claim to offer excellent coverage, but they lack additional perks. The best car insurance company is the one that gives its customers more than just the coverage they want at an affordable price. Along with coverage premiums, the best car insurer ensures a hassle-free way to manage policies and make payments.
To help you find a professional car insurance company that can save you money and frustration, we will review 4 top car insurance providers available in the market. This comprehensive guide will help you decide about buying car insurance.
The Best Car Insurance Companies
American Family Insurance
The American Family is the best overall car insurer for its excellent performance. It is the ninth-largest auto insurance company in the U.S. Compared to other car insurers, and the American Family offers more coverage options. The seller also sells multiple life insurance products, including whole life insurance for seniors and children. Excellent ratings from the AM Best and the Better Business Bureau (BBB) ensure that the American Family is one of the trustworthy car insurers.
Along with premium coverage options, the American Family also offers some additional perks, such as:
- Accidental death and reimbursement coverage
- Gap insurance
- Ridesharing insurance
- Accident forgiveness coverage
- Original equipment manufacturing coverage
The insurer lets its customers save on their auto insurance policy in several ways. You can enjoy car insurance discounts by insuring multiple vehicles, meeting American Family's criteria for a good driver, completing a defensive driving course, and driving fewer than 75,000 miles annually.
Pros
- Wide range of incentives and discounts
- A variety of coverage options
- Fewer customer complaints
- Strong brand reputation
Cons
- Not available in all states of the country
State Farm Auto Insurance
State Farm is another superb choice when finding a professional car insurance provider in the U.S. A report by the National Association of Insurance Commissioners reveals that State Farm is the largest auto insurance provider in the United States based on market share.
State Farm also features the highest average J.D. Power score, making it one of the best choices for customer satisfaction. Being the most prominent auto insurance provider in the U.S., this company is no stranger to claiming satisfaction. In addition, the full coverage premiums of the State Farm are some of the lowest around, whereas the minimum coverage premiums are just average.
An A++ rating from the AM Best indicates that State Farm has superior financial health. Along with minimum and maximum coverage premiums, the company also offers:
- Rideshare driver coverage
- Car rental coverage
- Travel expenses coverage
- Emergency roadside assistance
Beyond standard auto insurance, State Farm offers a full range of other insurance products. You can also save hundreds of dollars on your car insurance through the discount programs of State Farm. For example, with the Drive Safe & Save discount program, you can enjoy 30% off your coverage premiums.
Pros
- Amazing discount options
- Higher customer satisfaction
- Accident forgiveness
- Largest auto insurance company in the United States
- Superior financial stability
Cons
- Lacks gap insurance
- Higher NAIC complaint index score
USAA Auto Insurance
USAA deserves to be among the best car insurance companies for its premium coverage options. The company stands out from the competition for earning a higher ranking on multiple factors. USAA also has a higher J.D. Power customer satisfaction score, ensuring you're in good hands. USSA is one of the companies you can rely on regarding value and customer satisfaction. You will find numerous high-coverage options, including accident forgiveness, on the official website of the USAA.
USAA has strict eligibility requirements, unlike other car insurance companies, and not every driver qualifies for coverage options. The company is best suited for veterans and military members. Along with comprehensive coverage, the USAA also offers some additional perks, such as:
- Rideshare insurance
- Car replacement insurance
- Glass coverage
- Guaranteed asset protection
- Accident forgiveness
- Rental car reimbursement
- Roadside assistance
Although USAA is an online car insurance provider, policyholders are still impressed by the company's excellent customer service. In addition, the company receives an A++ rating from the AM Best for its strong financial position and an excellent rating from the Better Business Bureau.
USAA is famous for its affordable high-coverage options and exemplary customer service. The company may demand you to pay up to $1,054 per year for full coverage car insurance. In addition, USAA offers several discounts and incentives based on your safety, multiple policies, and safety features.
Pros
- Fantastic discounts and incentives for military members
- Higher customer satisfaction rating
- Affordable average premiums for minimum coverage
- Good ratings from Better Business Bureau and the AM Best
- Greater brand reputation
Cons
- Only available for military members, veterans, and their family members
Nationwide Auto Insurance
Nationwide is another excellent addition to the best car insurance companies list. The company is famous for offering one of the broadest car insurance networks, with coverage available in 47 states. So if you're looking for bundle insurance products from a financially strong company, Nationwide is the best option.
Nationwide also excels from the crowd regarding the lowest average car insurance rates. It is an ideal option if you can bundle your insurance products to save on overall coverage. Like other affordable car insurance companies, Nationwide also features an A+ rating from the Better Business Bureau and A++ from the AM Best, indicating that you're getting the best deals at unbeatable rates.
Unlike other car insurers, Nationwide features an easy-to-use website to file and tack claims, pay bills, view documents, and manage policies. The company also has an interactive mobile app for its SmartRide program to track your driving habits and offer incentives for safe driving.
Pros
- Availability in 47 states of the country
- Lower average premiums for full coverage options
- Fewer complaints from the customers
- Wide variety of coverage options
- Generous extras
- A good rating from the Better Business Bureau
Cons
- Average premiums for minimum coverage are high
- Not available in all states
Things to Consider When Finding the Best Car Insurance Company
In most states, car insurance is necessary if you lease or own a car. If you aim to find a car insurer offering all the benefits you need at competitive rates, you should be careful when finding the best car insurance company. By considering the following factors, you can find a significant car insurer that can go above and beyond your expectations:
The Level of Coverage
Determine whether you selected a car insurance company that offers the coverage you need. For example, some car insurers may not provide collision coverage, which pays to fix your car by yourself following a car accident. Instead, find a company that offers a variety of plans with different premiums based on the level of coverage you need.
Reputation
Having a reputable car insurance company by your side is the best way to ensure you will get the best value for your money. Avoid closing a deal with an insurance company having so many negative reviews from customers. This could signify that the company delivers inconsistent services or does not care about customer satisfaction.
Financial Strength
The prime objective of car insurance is to protect you from financial liability in the event of an accident. But if the company does not have a strong financial position, would it be able to protect you from financial loss?
Before choosing a car insurance company, research its financial strength and check if it has an excellent rating from the AM Best. A higher rating from AM Best ensures that the company is stable enough to pay for insurance claims to its clients.
Licensing
Licensing is among the most critical factors when searching for the best car insurance company. A company's licensing status shows whether it meets all the standards of the car insurance industry or not.
How We Chose The Best Auto Insurance
Evaluating insurance companies and their quotes to select the best and cheapest options involves a systematic approach. Here's what you need to consider:
- Coverage Options: The first thing to check is whether the insurance company provides the coverage you need, such as liability, collision, comprehensive, personal injury protection, and uninsured/underinsured motorist coverage.
- Premiums: Compare the premium amounts of the different insurance companies. You'll pay this for the policy, usually every month. Remember, cheaper is only sometimes better. You want a policy that provides good value for the money.
- Deductibles: You'll have to pay out of pocket before your insurance starts to cover costs. Higher deductibles usually mean lower premiums, but make sure you can afford to pay the deductible in the event of an accident.
- Discounts: Check if the insurance companies offer any discounts you might be eligible for, such as safe driver discounts, discounts for having multiple policies, or discounts for having safety features in your car.
- Company Reputation: Look at reviews and ratings for insurance companies. This includes checking their financial stability (which affects their ability to pay claims), customer service reviews and claims satisfaction ratings.
- Claim Process: Evaluate the claim process of the insurance companies. It should be straightforward and user-friendly. Some companies offer features like online claim filing and tracking, which can make the process easier.
- Policy Limits: Look at the policy limits of each company. This is the maximum amount the company will pay out for a claim. Ensure the limits are high enough to protect you financially in a major accident.
- Extras: Some insurance companies offer extra features like accident forgiveness, roadside assistance, or rental car coverage. While these may increase the cost of the policy, they can provide valuable protection and convenience.
Considering all these factors, you can evaluate and compare different insurance companies and their quotes effectively, helping you choose the best and cheapest insurance option that meets your needs.am for your needs.
Best Car Insurance: Bottom Line
Car insurance is necessary to drive safely and avoid financial loss in an accident. Auto insurance policies also cover your cars against theft or other damage. Closing a deal with a responsible insurer is vital to get the best value from your car insurance policies. The best car insurance provider will offer the level of coverage you need with generous extras at affordable prices.
The Car Data Reviews Team
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