mmarshall

Most of us need good insurance when we drive. This is an interesting write-up of the major auto insurance companies in the American market, and what each one excels or fails in. It goes past the silly cartoons, white suits/sneakers, cave-men, lizards, and other ad-gimmicks to see the companies for what they actually are.

https://www.bankrate.com/insurance/c...nce-companies/

The Best Car Insurance Companies for 2020

The best car insurance companies

The insurance market has a seemingly endless number of car insurance companies, but we’ve narrowed the list for you. Auto insurance doesn’t come in a one-size-fits-all package. Factors such as your age, credit rating and budget can determine the insurance provider that best fits your needs.

Company Bankrate Rating J.D. Power 2019 Claims Satisfaction Score AM Best Financial Strength Rating Average Full Coverage Yearly Premium
State Farm 3.93/5 3/5 A++ $1,681
Geico 3.96/5 3/5 A++ $1,260
Progressive 3.76/5 3/5 A+ $1,910
Allstate 3.75/5 3/5 A+ $1,896
USAA 4.92/5 5/5 A++ $1,484
Farmers 3.39/5 3/5 A- $1,540
The Hartford 3.76/5 3/5 A+ $1,572
Erie 4.42/5 3/5 A+ $1,141
Amica 4.60/5 5/5 A+ $1,449
Nationwide NA 3/5 A+ $1,533

We looked closely at the individual rankings for each provider and scored them based on their ratings across the board. Certain insurance companies, like State Farm, were rated highly by multiple research companies. Our rankings account for the average ratings of these companies by multiple sources.

Best overall: Amica Mutual

Amica Mutual has a long history of providing great coverage and customer service. The provider ranked #1 in J.D. Power’s 2020 U.S. Auto Insurance Study in the New England region and #1 in the nation in Power’s 2019 U.S. Auto Claims Satisfaction Study. Amica offers all of the usual coverages, like personal injury protection and uninsured and underinsured motorist, along with great addons, including roadside assistance and glass coverage. We particularly like Amica’s Platinum Choice Auto package, which features a bundle of benefits, including accident forgiveness, no-deductible full glass coverage and identity fraud monitoring.

Pros

• Ranked #1 in auto claims satisfaction study
• Ranked #1 for overall customer satisfaction in New England
• No-cost lock replacement for lost keys

Cons

• Few local offices
• No senior or military discounts
• Not available in all states

Driver Type

Amica is the best choice for drivers who care about good coverage and great customer service, and are willing to pay a premium for it. Amica doesn’t offer the cheapest policies, but they’re the best in nearly every other category.

Discounts

• Defensive driver discount program through SafetyServe
• Legacy discount for people under 30 whose parents have had an Amica auto policy for at least 5 years
• Loyalty discount if you’ve been insured with Amica for at least 2 years

Best coverage options: Progressive

Progressive is our top pick for drivers who want the best coverage options. Get an online quote, enter the rate you’d like to pay for a car insurance policy and Progressive will show you the coverage options available in your price range. Additionally, the company makes shopping easier for high-risk drivers with its Name Your Price online tool. High-risk drivers can redeem their driving record with Progressive’s usage-based Snapshot program. Using a mobile app, Snapshot monitors your driving habits and rewards you with discounts when you follow the rules of the road. Overall, Progressive has good ratings. In J.D. Power’s 2019 U.S. Auto Claims Satisfaction Study, the company received a 3-star rating. It also ranked highly in several regions based on J.D. Power’s 2020 U.S. Auto Insurance Study.

Pros

• Gap insurance available
• Custom equipment and parts coverage
• Online rate comparison tool

Cons

• Below average claims handling
• Expensive rates compared to other providers on this list

Driver type

Progressive is best suited for drivers who care about coverage options and want to customize their policy to fit their unique needs. The company offers a number of discounts and add-on options that you can choose from.

Discounts

• Use the Name Your Price tool to get the lowest rate for the coverage you need
• The Progressive Snapshot program can save safe drivers an average of $145 a year on their insurance
• Drivers who stayed with their previous auto insurance provider for an extended amount of time without lapses in coverage qualify for a discount when they switch to Progressive

Best cheap car insurance: Geico

In our studies of top car insurance companies, Geico consistently offers the lowest rates for most drivers. As a Berkshire Hathaway company, Geico has earned the top A.M. Best financial rating and second highest market share, 13.8%, in the United States. The company earned a 3-star rating in J.D. Power’s 2019 U.S. Auto Claims Satisfaction Study, and was rated the best car insurance company in three regions in J.D. Power’s 2020 U.S. Auto Insurance Study. Founded in 1936, Geico originally offered insurance exclusively to federal employees and military members. Today, Geico provides insurance products from coast to coast and employs over 40,000 people.

Pros

• Very affordable rates
• Automobile equipment discounts
• Highly rated mobile app

Cons

• No replacement cost coverage option
• Limited local agents
• Few optional coverages

Driver type

Geico car insurance is for the driver who is looking for a low rate. It’s also best for drivers who want a minimal amount of coverage without the fancy (and expensive) extras.

Discounts

• Federal employees qualify for the Eagle discount, which comes with an 8% discount
• Active military service members can save up to 15% on their car insurance
• Any military service member who goes on emergency deployment can get a discount up to 25% on their car insurance

Best for customer service: Allstate

Launched as a division of Sears, Roebuck and Co. in 1931, Allstate has provided quality customer service for countless American motorists. In the 2020 J.D. Power U.S. Auto Insurance Study, Allstate ranked among the top auto insurance providers in most U.S. regions and earned top billing in the Florida region. Allstate continues to operate local agencies in all 50 states and Washington, D.C., with dedicated agents to help you file a claim or purchase additional coverages.

Pros

• Available everywhere
• Good mobile app and online tools
• Discounts for teen drivers

Cons

• Below average claims satisfaction rating
• Limited optional coverages
• Limited discounts

Driver type

Allstate is a great insurance provider for any driver. However, it’s best for drivers who care about good customer service and efficient claims handling. Allstate is also a great option for drivers who often move around. With agents in every state, you won’t have to worry about losing Allstate as your insurance provider if you move.

Discounts

• With the Allstate Drivewise program, safe drivers can save up to 25% on their car insurance, plus 10% for signing up
• If you sign a policy with Allstate at least one week before it becomes effective, you qualify for a discount
• Drivers can save money on their insurance if their car is a current model year or one year prior and they’re the first owner

Best if you want a local agent: State Farm

State Farm sold its first automobile insurance policy in 1922. In its nearly century-long history, the provider has grown to offer products through 19,000 agents who service more than 80 million policies. State Farm offers a full line of automobile, health, life and property insurances, as well as banking and investment products. But what sets State Farm apart is its traditional approach to offering local, dedicated agents to serve your needs. State Farm earned a 3-star rating in J.D. Power’s 2019 U.S. Auto Claims Satisfaction Study, and was ranked as the best car insurance provider in New York and the Mid-Atlantic regions in J.D. Power’s 2020 U.S. Auto Insurance Study.

Pros

• Available nationwide
• High claims satisfaction rating
• Wide range of discounts

Cons

• Average rates
• No military or senior discounts
• Few optional coverages

Driver Type

State Farm is one of the best car insurance companies for drivers who prefer to work with an agent, rather than manage their policy online. The company has 19,000 agents around the country, so it’s easy to find an agent in your area.

Discounts

• Drivers who enroll in State Farm’s Drive Safe and Save program can save between 5-50% on their insurance
• Young drivers who enroll in the Steer Clear program qualify for a discount of up to 15% on their car insurance premium
• Accident-free discount for drivers who have been insured by State Farm for at least 3 years and haven’t had a chargeable accident

Best for military families and veterans: USAA

Active military members, veterans and their qualified family members can’t find a better auto insurance company than USAA. The provider tailors its car insurance coverage to fit the needs of military members, with reduced rates for low annual mileage and up to a 60% discount for vehicles stored during deployment. For qualified members, USAA offers a full portfolio of financial products, including checking and savings accounts, investment products and retirement accounts. USAA has exceptional ratings, and is consistently ranked as one of the best insurance companies on the market. In J.D. Power’s 2019 U.S. Auto Claims Satisfaction Study, USAA received a perfect 5-star rating.

Pros

• Excellent customer service and claims satisfaction ratings
• Good online and mobile tools
• Available nationwide

Cons

• Limited to military families and veterans
• Must be a member to receive a quote
• Recent billing-related regulation violations

Driver Type

Naturally, USAA is best for drivers who qualify for its service—either active military members, their immediate family members or veterans. It’s also a good choice for drivers who want top-notch customer service and a personalized customer experience.

Discounts

• Drivers whose parents had a USAA car insurance policy can save up to 10% on their own policy
• Military members who garage their vehicle on base can save up to 15% on comprehensive coverage
• Drivers who don’t use their car frequently can qualify for savings with the Annual Mileage discount

Best for young drivers: Erie

Erie makes hitting the road a little easier for young drivers, with loads of benefits that can also put their parents’ minds at ease. All Erie policies include roadside assistance and rental car coverage and pay up to $350 for personal items damaged in an auto accident. Standard policies also pay up to $500 per pet if your fur baby sustains an injury while riding in your automobile and up to $75 for locksmith services, if you carry collision or comprehensive coverage. Parents with unmarried kids under 21 who haven’t left the nest can save up to 20% by adding their young drivers to their existing auto policy. Erie ranks about average with J.D. Power, with a 3-star rating in the 2019 U.S. Auto Insurance Study.

Pros

• Ranked #3 in auto claims satisfaction
• Standard policies include roadside assistance
• Good rates for young drivers

Cons

• Only available in 11 states and Washington, D.C.
• No good student discounts
• No legacy discounts
• No mobile app

Driver Type

We recommend Erie for young drivers and newly licensed drivers. Erie is one of the only car insurance companies that offers a discount for drivers under 21 who live with their parents. This is different than a good student discount which Erie doesn’t offer.

Discounts

• First accident forgiveness after three years
• The Erie Rate Lock program guarantees that you’ll pay the same rate until you make a change to your policy
• Diminishing deductible program lowers your deductible by $100 for every consecutive claims-free year, up to $500

Best for drivers 50 and over: The Hartford

Available in all states and Washington, D.C., The Hartford offers a full line of auto coverages through a unique partnership with AARP. The Hartford offers one-stop shopping for active seniors, providing insurance for ATVs, boats, classic cars, golf carts, RVs and snowmobiles. The Hartford’s Advantage Plusauto plan comes packed with benefits, including hybrid vehicle discounts, accident forgiveness, emergency expense coverage and a disappearing collision deductible if you don’t file a claim. The Hartford received a 3-star rating in J.D. Power’s 2019 U.S. Auto Claims Satisfaction Study.

Pros

• ATV, boat, classic car and RV coverages
• Good customer service and claims satisfaction
• Unique partnership with the AARP

Cons

• Only available to AARP members in some states
• Poor online tools
• Problematic mobile app

Driver Type

The Hartford has a partnership with AARP which provides services to people 50 and older. Any AARP member will qualify for discounted car insurance through The Hartford. Because of that, we recommend this provider for any AARP member.

Discounts

• Guaranteed rate protection for one year
• First accident forgiveness
• Disappearing deductible

Best for those with poor credit: Nationwide

Nationwide offers a full range of standard coverages, along with great optional coverages, including accident forgiveness and vanishing deductible. Nationwide’s highly rated mobile app enables you to file a claim, pay your bill and contact roadside assistance from your Android or Apple device. Conscientious drivers can enroll in Nationwide’s user-based SmartRide program to save up to 40% for maintaining safe driving habits. Nationwide was ranked #2 in J.D. Power’s 2020 U.S. Insurance Shopping Survey.

Pros

• Local offices
• Affordable prices
• SmartRide usage-based program

Cons

• Not available in all states
• Below average claims satisfaction rating
• No homeowner discounts

Driver Type

Nationwide offers affordable rates, so it’s ideal for drivers who have a poor credit score. Having a low credit score puts drivers in the high-risk category, which usually means paying a higher than average premium.

Discounts

• Accident-free discount
• Affinity member discount

Best for comprehensive coverage: Farmers

Farmers Insurance offers all the standard auto insurance you need, including collision, comprehensive, liability, medical payments and uninsured and underinsured motorist coverages. But Farmer’s pulls ahead of the pack with its optional coverages, offering customized equipment, new car replacement, original equipment manufacturer and spare parts coverage, to name a few. Farmers gets decent reviews from customers, and was rated 3-stars in J.D. Power’s 2019 U.S. Auto Insurance Study.

Pros

• Easy claims process
• Highly rated mobile app
• Alternative fuel discounts

Cons

• Lower than average customer satisfaction ratings
• Lower than average claims satisfaction ratings
• No loyalty discounts

Driver Type

Farmers stands out for offering comprehensive coverage options for drivers. If you’re looking for a wide range of coverages and ways to customize your policy, we recommend checking out Farmers.

Discounts

• Drivers who own a hybrid or electric vehicle, or use an alternative fuel source for their vehicle, can save money on their insurance
• Good students under age 25 are eligible for savings on their insurance premium
• Drivers over 55 who complete a state-approved driver safety program are eligible for a discount

Comparing small and large car insurance companies

The table below includes information about the largest car insurance companies based on their market share.
Insurance Company NAIC Market Share Amica Mutual .50% Progressive 12.25% Geico 13.78% Allstate 9.33% State Farm 16.14% USAA 6.01% Erie Insurance 1.34% The Hartford .80% Nationwide 2.47% Farmers 4.16%When shopping for car insurance, there are a few advantages to choosing a large carrier. Companies like State Farm, with almost 10 percent of the market share, have more credibility because they have so many members. You could also assume that companies with a higher market share offer the best prices because so many people use their service.

On the other hand, there are perks to going with a smaller company. Smaller insurance providers tend to offer a more personalized experience and better customer service.

If you’re most concerned about price, know that smaller providers do tend to charge higher rates. Larger providers will generally offer cheaper rates and discounts that help you save even more money.

What should you look for when shopping for car insurance?

Avoid mistakes and get the most affordable car insurance rate for you by following the National Association of Insurance Commissioners’ shopping tips:

1. Call or visit the website of your state’s insurance department to find out what type of insurance the law requires. Most states require at least liability insurance, with minimum coverage levels for bodily injury and property damage.
2. Read auto insurance carrier reviews and ask friends and family members to recommend companies and agents.
3. Request quotes from several companies and carefully compare the results. Pay attention to the details, including deductibles, payment options, discounts and included and excluded services.
4. Narrow down your options, then check with your state’s insurance department to make sure the company you choose is properly licensed.
5. Ask insurance agents about details of the coverage. Will a history of speeding tickets affect your premium? Does the company consider credit history to determine rates? Will the coverage protect all drivers in your household? Does the policy cover rental cars when you travel?
6. Always pay your premium on time. Otherwise, your coverage could lapse. Some insurers offer direct withdrawal from your checking account, which can safeguard against lost coverage.

Methodology

Bankrate Rating

Bankrate’s ratings are calculated using weighted averages of scores on several important qualities of auto insurance carriers, including price, customer satisfaction, financial strength and more. We considered ratings from the following during this process:

• J.D. Power: We used J.D. Power & Associates to gauge customer satisfaction. This source rates providers based on how customers rated their overall satisfaction, policy offerings, price, billing process and policy information, interaction and claims.
• AM Best: AM Best is an independent organization that rates an insurance provider’s financial strength and ability to pay claims.
• Consumer Reports: Consumer Reports is another organization that rates providers and how well they can assist customers.
• S&P Global: This organization also analyzes how easily a provider can meet its financial commitments. It is usually a tool for investors to evaluate a company’s credit rating.
• Fitch Ratings: Fitch’s ratings also evaluate a company’s credit rating.
• Moody’s: Moody’s also evaluates a company’s credit rating.

These ratings are intended to help you easily compare auto insurance providers. We will continue to update them as we review more carriers and additional third-party information is made available.

mmarshall

FWIW, my experience has been that GEICO offers the best combination of low price, customer service, and what they offer for the money. But each person's needs....and experience....is different.

Hoovey689

iTrader: (16)

I use AAA because they can bundle home and auto. It's not the cheapest, the but the sole reason I went with them is so I don't have to go to the DMV. You can get your registration stickers at a AAA branch etc..

mmarshall

A number of companies offer discounts for home/auto bundling...yes, AAA is one of them.

SW17LS

I have Allstate, and have always been happy (I have a great agent who I've known for a long time) but I am absolutely overpaying.

The guy that ran into the back of me has Erie, and my business partner has Erie. I gotta say, I've been really impressed with Erie from a claim perspective. The estimator came out to my house and used the combo to gain access to the garage and did the estimate while I was away, no way Allstate would have done that. My experience getting rear ended last year (lucky me) was the other guy had Geico, and the claim experience between the two is night and day. Talking to my shop too, they HATE Geico, they're cheap, take forever to get supplements approved and require they come back out etc. It took over a week to get a supplement for a couple more hours of paint work on my bumper repaint, and they had to send somebody out with Geico, with Erie they approved the supplement same day.

I got a quote from the same Erie agency that the guy who hit me uses and its a lot cheaper, I may switch.

mmarshall

Yes, I also know some people who don't like GEICO....and they tend to be picky abut who they first take on. Over the years, though, I have found them to offer me a lot for the money. A few years ago, they sent me (in writing) a member-for-life policy, as long as I keep up on the premiums (and I have never paid more than $800 a year, even when the Lacrosse was new). That means they can't (or won't) drop me for any other reason than non-payment.

SW17LS

I don't have any experience with them as a insured customer, my only experience is on the claim end trying to get my car fixed. Basically, they're cheap...which they kinda have to be in order to offer lower premiums.

Wilson2000

I've been with Farmers my entire adult life, about 45 years. My first two agents were great but each eventually retired. My new agent is a ghost! I've been researching a good company to switch to. Consumer Reports did a comparison last September and they rated four companies above the rest (with Farmers in the middle). From the top down: Amica; USAA; Auto-Owners; Erie. I'll get quotes from all four. Erie sounds like a winner, but, I don't care for the name!

SW17LS

I would look into Erie, everybody I know who has them is very satisfied.

DaveGS4

iTrader: (2)

Long time Erie for both auto and home here, switched from State Farm in early 90s. Have been happy with them.

SW17LS

Erie has some good commercial options also for those of you with businesses that own vehicles, etc.

davyjordi

i have geico for auto and i have my home insurance bundled with them as well. i've actually had to use geico once for a totaled auto claim and they paid me kbb value for the worth of the car, so i remained satisfied enough with them to renew my policy year after year for about five years now.

TriC

Erie is only offered in about a dozen Midwest and Mid-Atlantic states. I switched to them last November and, with the same coverage (home, auto, and umbrella), saved more than 40% compared to Nationwide, a company I had been with for more than 45 years.

I'm convinced that a part of the reason for the savings is that Erie isn't paying for hurricane or wildfire damage. In addition, they don't really advertise much.

mmarshall

Allstate had a bad reputation many years ago, but seems to have improved quite a bit over time. My brother has had them for a number of years, and been satisfied with them. So did my late mother and father. I had them myself, for a number of years, before switching to GEICO in the early 1980s...I found that GEICO had the same level of service/coverage (or better) for significantly less money. They didn't sell their policies through typical agents, but directly from the company itself. In fact, I had some trouble signing up, at first, from the regular employees and supervisors over the phone...there was apparently a sticking point with an earlier claim I had had with Allstate on my Plymouth K-Car. A couple days later, I got a phone call, at work (that was in the days before E-Mail and texting), from one of the GEICO vice-presidents, personally offering me a policy, which he would sign off on. Needless to say, I accepted...and have been happy ever since.


Yes, the article says that Erie was apparently a good company for young drivers.



If you really feel that you would be happier with Erie, fine, but it often pays to stay with the same company and build up a lot of good time with them, particularly if you don't make a lot of claims or cost them a lot of money. They like regular customers that don't bleed them dry with a lot of accidents or liabilities....and are more likely to give those customers discounts or policy-renewals.

mmarshall

One complaint I have with most insurance companies (there may be some rare exceptions) is that almost nobody gives an honest one-year policy any more.....they do six-month ones now, and have done so for decades. One of several reasons why I switched to GEICO in the early 1980s is that they were still giving real 12-month policies...but, sure enough, that didn't last very long (if my memory is right, just a couple of years), then they joined everybody else with the six-month crap.

Not that there's anything really wrong per se with the six month policy, but, it just makes for more records, clutter, paperwork, and checks or credit card deductions being paid. And, to my knowledge, most states don't actually require the six-month term (states generally regulate the insurance industry, not the Federal Government). The explanation I got for this is that companies use the six-month policies, instead of the older one-year ones, to drop risky or habitually-negligent drivers ASAP, without having to wait a year....their attitude is the quicker they drop them, the more money they save.