Knowledge is a Basic Human Right

ADVERTISEMENT

ADVERTISEMENT

Auto Insurance in USA: Best & Top-Rated car insurance companies

137

If you are living in the USA and you have not yet registered for any insurance especially on Car insurance or automobile insurance then this is the time to do so, there are many benefits you can get as an insured person in the auto insurance company because the future remains untold until it happens, therefore, it will be best to secure or safeguard your property and life by becoming an insured member of a well-registered company in the USA, relax and read through this article on Auto insurance in the USA to learn more about how the auto insurance companies operate.

Auto Insurance

Auto insurance is an agreement between you and the insurance company that protects you against financial loss in the event of an accident or theft.

ADVERTISEMENT

This can be called either Vehicle insurance or car insurance, or auto insurance, they all offer protection against property damage, personal injury protection, and bodily injury liability coverage.

Auto insurance provides coverage for: Property – such as damage to or theft of your car, Liability – your legal responsibility to others for bodily injury or property damage, Medical – the cost of treating injuries, rehabilitation, and sometimes lost wages, and funerals expenses.

Auto insurance policies are generally issued for six-month or one-year timeframes and are renewable. The insurance company sends a notice when it’s time to renew the policy and pay your premium.

ADVERTISEMENT

The Auto Insurance Company Operations

Auto insurance in the United States and elsewhere is designed to cover the risk of financial liability or the loss of a motor vehicle that the owner may face in any accidents.

These may be damage to your own vehicle for a variety of reasons; collision coverage, roadside assistance, car accident with uninsured drivers plus personal injury protection, and medical expenses incurred due to accidents.

Some car insurance companies even have comprehensive options that can include roadside assistance or that can be bundled with homeowner’s insurance.

There are many options for drivers looking for coverage, drivers are required by law to have car insurance in 48 states.

Furthermore, most states require a motor vehicle owner to carry some minimum level of liability insurance. States that do not require the vehicle owner to carry car insurance include Virginia, where an uninsured motor vehicle fee may be paid to the state, New Hampshire, and Mississippi.

The insurance premium a motor vehicle owner pays is usually determined by a variety of factors and either way these factors affect us.

The factors include; type of covered vehicle, marital status, credit score, whether the driver rents or owns a home, the age, and gender of any covered driver, their driving history, and the location.

Ways to find the top car insurance companies

  • Visit your state insurance commissioner’s website to find complaints and other information about companies in your area.
  • Ask your agent or a customer service representative any questions you have to make sure you’re getting all the coverage you need.
  • Consider smaller auto insurance companies, too. Small companies offer rates well below large competitors in many locations.
  • If you’ve had tickets, DUIs, or other violations, be sure to shop three and five years after the incident, when surcharges can drop significantly.

What limitations influence car insurance rates (Auto Insurance in the USA)

Auto insurance rates will ultimately be determined by personal factors, such as: where you live, your credit score (for the best rates, a credit score of 770 or above and the type of vehicle you drive, as well as its age and whether you have an accident on your driving record.

Note: The good news is that you can actually lower your insurance coverage costs if you maintain a safe driving record.

Insurance rates increase after an accident for a six-month full coverage policy

Rank
Company
Clean record
One accident
Rate increase
1 Erie $1,612 $2,010 25%
2 State Farm $1,623 $2,020 24%
3 Farm Bureau $1,742 $2,325 33%
4 Geico $2,017 $3,194 58%
5 American Family $2,135 $3,260 53%
6 Auto-Owners $2,192 $2,750 25%
7 Nationwide $2,201 $3,292 50%
8 Progressive $2,321 $3,569 54%
9 MetLife $2,379 $4,003 68%
10 Travelers $3,002 $3,610 20%
11 Farmers $3,582 $5,031 40%
12 Allstate $3,585 $5,488 53%

Various Insurance Companies available in the USA

1. State Farm

State Farm is the largest auto insurance company in the U.S. and possesses 16% of the total available market share structure.

They operate as a mutual insurance company, meaning that it’s owned by its policyholders. and employing approximately 60,000 employees and has nearly 19,000 agents.

State Farm is a great auto insurance company for anyone who wants a local agent, a personalized experience, and cheaper-than-average rates.

Among the largest widely available car insurers in this list, State Farm offered the cheapest car insurance rates in most parts of the U.S.

in summary: 

  • Average six-month premium: $307
  • Market share: 16%
  • Premiums written: $41.1 bn
  • ValuePenguin rating: 4/5
  • J.D. Power customer satisfaction score: 881

2. Geico (Auto Insurance in the USA)

Geico is one of the best auto insurance companies offering low rates, national availability, and an easy shopping experience.
The company’s size allows it to employ more than 40,000 people across nine regional offices, three service centers, and three claims centers.
Geico’s clever commercials ensure that it remains one of the best-known car insurance options in the country, but its customers know the company for the great service and support.
This insurance carrier is also routinely ranked among the cheapest car insurance coverage providers (and a big premium is a big expense), which undoubtedly contributes to the satisfaction.
According to Kanbay Research Institut, Geico’s 97% customer satisfaction rate speaks for itself, as does its long list of honors.
In summary:
  • Average six-month premium: $390
  • Market share: 13%
  • Premiums written: $35.2 bn
  • ValuePenguin rating: 4/5
  • J.D. Power customer satisfaction score: 871

3. Progressive

Progressive offers especially competitive rates to drivers with previous accidents. However, claims satisfaction ratings and coverage options are average.

ADVERTISEMENT

Progressive the third-biggest insurance company in the country was established in 1937. The company employs more than 35,000 people and has over 400 offices. Progressive is a publicly-traded company.

Progressive was the first auto insurer to offer safe driver discounts, which makes the company a great option for people with a good driving record.

It manages to attract and retain so many satisfied customers with a continued commitment to saving its customers money on their car insurance rates.

In summary:

  • Average six-month premium: $394
  • Market share: 12%
  • Premiums written: $32.3 bn
  • ValuePenguin editor’s rating: 3/5
  • J.D. Power customer satisfaction score: 856

4. Allstate (Auto Insurance in the USA)

Allstate is the second-largest publicly traded property and casualty insurance company in America similar to State Farm.

It typically has better-than-average claims satisfaction ratings, but higher rates. However, the insurer offers a variety of discounts that can make policies more affordable for customers.

According to Allstate, the Esurance brand targets self-directed and brand-sensitive customers, while Allstate is geared towards customers who enjoy local and personal services.

They offer a host of car insurance discounts that, depending on your circumstances, make it the most cost-effective auto insurance policy coverage option available for many motorists.

Finally, Allstate offers many types of insurance — auto, home, motorcycle, off-road vehicles, renters, term-life, and more — and will offer deals to customers who bundle.

in summary:

  • Average six-month premium: $624
  • Market share: 9%
  • Premiums written: $23.8 bn
  • ValuePenguin editor’s rating: 3/5
  • J.D. Power customer satisfaction score: 876

5. USAA

USAA is one of the best auto insurers in the country and you’ll enjoy extremely competitive rates, great customer service, and speedy claims responses. The only downside is USAA’s restricted membership.

USAA was founded by 25 Army officers who decided to insure each other’s vehicles in 1922 and headquarters is in San Antonio.

Today, the company serves millions of members associated with the U.S. military, including current and former service members, the family of service members, and cadets or midshipmen.

USAA is one of the most cost-effective insurers out there, offering prices that even beat Geico’s customers who switch save an average of $707 a year.

What affects the USAA’s ranking is that its scope is narrower than those of most other auto insurers, as the company only offers coverage to service members, veterans, and their families.

in summary:

  • Average six-month premium: $223
  • Market share: 6%
  • Premiums written: $15.2 bn
  • ValuePenguin editor’s rating: 4.5/5
  • J.D. Power customer satisfaction score: 890

6. Liberty Mutual

Liberty Mutual’s rates vary by location more than the typical insurer, and customers rank the company’s claims satisfaction process as below average.

It is one of the largest insurance companies in the U.S. and has been around for over 100 years, including a large international presence.

This auto insurance offerings can be accessed via its call center, website, a local Liberty Mutual agent or broker, or representatives from its network of regional subsidiaries.

in summary:

  • Average six-month premium: $627
  • Market share: 5%
  • Premiums written: $12.1 bn
  • ValuePenguin editor’s rating: 3.5/5
  • J.D. Power customer satisfaction score: 867

7. Farmers (Auto Insurance in the USA)

Farmers offer decent discounts, coverage options, and great customer service. However, Farmers’ non-competitive rates may be cost-prohibitive for some shoppers.

It’s hard to find an insurance company that offers more products than Farmers. It offers basic auto insurance, pet insurance, and even investment products among a variety of other insurance products.

Farmers began as an insurance company providing coverage to farmers’ vehicles and employing nearly 13,000 people, underwriting more than 19 million policies across 50 states.

in summary:

  • Average six-month premium: $553
  • Market share: 4%
  • Premiums written: $10.7 bn
  • ValuePenguin editor’s rating: 4/5
  • J.D. Power customer satisfaction score: 872

8. Nationwide

Nationwide is below average for affordability, and its customer reviews tend to veer negative. They offer standard coverages and discounts you’d expect from a large national insurer.

Nationwide has a motto called “On Your Side” that influences how auto insurance claims are handled, and how policies and premiums are determined.

The company also recommends getting an annual checkup to ensure policyholders understand their benefits and new discounts or changes to keep premiums steady and coverage adequate.

in summary:

  • Average six-month premium: $466
  • Market share: 3%
  • Premiums written: $6.6 bn
  • ValuePenguin editor’s rating: 3.5/5
  • J.D. Power customer satisfaction score: 876

9. American Family

American Family is a solid choice for auto insurance. The company offers decent rates, which have the potential to be great when policyholders utilize some of its many discounts.

Today, the company is one of the biggest insurance companies in the U.S. and the largest insurer by market share in the state of Wisconsin.

The company is known for its extensive discount catalog that can make its already decent rates even more affordable for customers.

in summary:

  • Average six-month premium: $387
  • Market share: 2%
  • Premiums written: $5.8 bn
  • ValuePenguin editor’s rating: 4/5
  • J.D. Power customer satisfaction score: 862

10. Travelers (Auto Insurance in the USA)

The company has more than 30,000 employees and 13,500 independent agents and brokers in multiple countries — including the United States, Canada, and Brazil.

Travelers issued their first auto insurance policy in 1897, travelers are more than 160 years old, making it one of the oldest insurance companies operating today.

They offer a rate pricing program known as IntelliDrive, which determines your rates by assessing your safe driving behavior.

Moderate complaint ratings and a variety of discounts make Travelers a good choice for auto insurance coverage.

  • Average six-month premium: $623
  • Market share: 2%
  • Premiums written: $5.5 bn
  • ValuePenguin editor’s rating: 3.5/5
  • J.D. Power customer satisfaction score: 861
ADVERTISEMENT

Comments are closed.