Best Car Insurance Companies – Not all car insurance companies are the same. We polled over 10,000 drivers to learn more about their car insurance experiences, with an emphasis on critical areas such as customer service, claims to handle, and customer loyalty.
We rated the best car insurance companies of 2023 based on that data to help you select the finest one.
What Is the Best Car Insurance Company?
The top car insurance company, according to our 2022 statistics, is USAA, but its insurance policies are only available to members of the military community. If that doesn’t work for you, the next best alternative is State Farm, which ranks second in our research.
We studied rate data as well as feedback from consumers to find the best car insurance companies, paying special attention to customer service, claims management, customer loyalty, and policy renewal. We also asked survey participants if they would suggest their current insurer to a driver looking for new insurance.
If you are looking for auto insurance, this list might assist you in comparing insurers based on the aspects that are most important to you. Though USAA and State Farm lead the pack, one of the other eight firms in our assessment may be a better option for you. As a result, before purchasing or renewing your coverage, compare many insurers and their rates.
Top Rated Car Insurance Companies
- STATE FARM
- AMERICAN FAMILY
In our ratings, USAA is the finest insurance business. According to our 2022 poll, USAA customers are the most satisfied, and they are the most willing to renew their insurance and refer USAA to other drivers. In addition, USAA had the lowest rates in our survey, outperforming the national average by 35%.
USAA insurance products, such as auto, homeowners, and renters coverage, are solely available to service personnel. As a result, not all drivers will be qualified for coverage from this company.
2. STATE FARM
State Farm ranks second in our ranking, with above-average scores in all of our sub-ratings, including Claims Handling and Customer Loyalty. It also performed well in our ranking of the Cheapest Car Insurance Companies in 2022. Its average premiums for drivers with less-than-perfect driving records were the lowest in our assessment for individuals who couldn’t secure coverage with USAA.
Farmers tie for the third position in our ranking and top spots in many of our sub ratings. It is ranked first in Claims Handling and second in Customer Service and Customer Loyalty. Farmers lose points in our assessment compared to other insurers for Most Likely to be Renewed, where its score of 4.0 is lower than the category average of 4.2. It also has one of the highest average annual rates among the companies in our ratings.
Since our 2021 review, Nationwide has risen two spots to tie for third place. Nationwide ranks second in our Customer Loyalty and Most Likely to be Recommended sub ratings and ranks above average in all other subtracting categories. Nationwide also has lower-than-average rates for some drivers, particularly those with a clean driving record or bad credit.
Geico ranks third in this year’s assessment, with average scores in categories including Customer Service, Claims Handling, and Customer Loyalty. Its premiums are what set it apart, earning it the No. 2 spot in our ranking of the Cheapest Car Insurance Companies in 2022. For teen and senior drivers, as well as those with bad credit, it ranks just behind the top-rated USAA.
Allstate has moved up three spots to equal for sixth place in this year’s Best Car Insurance Companies assessment. It is also ranked fourth in our Most Likely To Be Recommended subtracting, despite receiving slightly below-average scores in most of our other subtracting categories. Its rates are among the highest in our survey, but Allstate may offer a competitive rate for some drivers, such as those with a speeding ticket on their record.
This year, Travelers climbed two spots to tie for sixth place. Travelers’ customer service score is lower than that of seven other insurers in our analysis, but it ranks first in our Claims Handling subrating category and third in Most Likely to Be Renewed. Travelers also has an above-average policy renewal score and rates that are typically cheaper than the national average.
Progressive takes the No. 8 spot in our analysis. Overall, customers are generally satisfied with the ease of opening a policy, but Progressive places last in our Best for Customer Loyalty category and have below-average scores in every other subrating in our survey. Progressive customers also report being less likely to renew their policy or recommend the insurer to other drivers. However, persons with a DUI may be able to unlock savings with Progressive. Its rates for those drivers are among the lowest in our study.
AAA is new to our Best Car Insurance Companies ranking, and it shares the eighth slot with Progressive. Its scores are below average in every category we looked at. It does, however, rank sixth in our Most Likely to be Renewed category, ahead of Allstate, Farmers, Progressive, and American Family. In our survey, AAA also has the highest average premiums, but drivers considering AAA should seek a quote to see if their particular rate is more reasonable.
10. AMERICAN FAMILY
This year, American Family fell four spots to No. 10 in our rankings. It receives the lowest scores in the majority of subrating categories, with the exception of Progressive, which has a slightly higher score in our Best for Customer Loyalty category. Despite low credit scores, American Family does offer reasonable rates for some drivers, particularly teen drivers, those with weak credit, and those with a DUI or accident on their record.
ALSO READ : Top 10 Insurance Companies in USA 2023
What Is the Best Car Insurance Company?
USAA is the top overall car insurance company, according to our data and consumer poll results. However, USAA insurance policies are only available to active and retired military personnel, as well as their families. In our survey, State Farm scores second, making it the top car insurance carrier for drivers who aren’t qualified for USAA membership.
Despite the fact that USAA and State Farm have the highest ratings, it’s a good idea to investigate and compare multiple insurers who made our Best Car Insurance Companies of 2022 list. This can assist you in locating coverage that meets your requirements.
USAA also swept all five of our customer feedback sub-rankings. However, not all policyholders will be eligible for USAA membership. As a result, we’ve determined the runner-up in each category so that all customers can learn about the greatest alternative in each of these categories.
If price is a significant factor in your decision, you should obtain and compare car insurance quotes. Though our study includes average rate data, your personal car insurance rate will be determined by your age, location, driving record, credit score, and the preferred type and amount of coverage, among other factors, so it’s critical to research your options based on current demographic characteristics. A quote can assist you in precisely estimating costs and determining which insurance provides the greatest value.
Best for Customer Service: USAA and State Farm
USAA and State Farm are ranked first and second, respectively. Sixty-five percent of USAA customers who haven’t made a claim are ecstatic about their customer service experience. Among those who have filed a claim, that figure drops just slightly, with roughly 64% of USAA customers indicating that they are extremely satisfied with the insurer’s customer service.
If you are not eligible for USAA coverage, you should think about State Farm. Almost 60% of State Farm customers who haven’t filed a claim are extremely pleased with their customer service experience. State Farm, like USAA, has slightly lower customer satisfaction scores among customers who have filed a claim. 56% of survey respondents were entirely satisfied with their customer service experience.
How Much Does Car Insurance Cost?
According to our most current research, the average cost of car insurance is $1,539 per year. Your premium, however, may be greater or cheaper based on a number of factors, including:
Location of the driver’s record
Coverage type and extent
Car insurance discounts are available.
With any insurance, there are frequently a number of reductions available that take into consideration various demographic criteria, driving record, and even active driving evaluation. Car insurance quotes are the simplest way to determine how much you may have to pay. You can obtain car insurance rates online or by contacting an agent via email, phone, or in person.
How Much Car Insurance Do I Need?
The amount of insurance you require is determined by numerous factors. State requirements are a crucial indicator of how much coverage you may require. Most states have regulations requiring drivers to carry a certain amount of liability insurance. Other types of insurance, such as uninsured motorist coverage or personal injury protection, are also required in some areas (PIP).
The following consideration is any lender or lessor requirements. Your loan or lease agreement defines how much coverage you must carry if you make monthly payments on your vehicle. Consult your lender, lessor, or loan agreement for more information.