1. USAA
Our stats show that USAA is the best insurance provider, yet the general people cannot use it. American Family, which is ranked No. 2, may offer the best auto insurance for many individuals.
Pros:
- Available in Washington, D.C. and all 50 states.
- According to a study of policyholders, rated No. 1 for customer service
Cons:
Policies that only apply to military personnel, veterans, and their families
In our ranking of the Best Car Insurance Companies of 2023, USAA is the top insurer. The organization ranked first in the majority of the areas we examined, including customer service, most likely to be recommended, and most likely to be renewed, according to our findings. In the section of customer loyalty, USAA and American Family were tied for second place in the claims handling scores.
With low average rates across several categories, the business also took first place in our ranking of Cheap Car Insurance Companies.
The majority of customers will want to discover more about what other insurers have to offer as USAA vehicle insurance is only offered to those who are part of the military community.
2. American Family
Pros:
- In our research of customer surveys, claims processing ranks first.
- In the same poll, received top marks for customer service
Cons:
- operates only in 19 states
- Many rivals provide more affordable prices
With a score of 4.3 out of 5, American Family came in second in our overall ranking of the best auto insurers and ranked well in the most of the areas we looked at. The business ranks first in both Customer Loyalty and Claims Handling, where it is tied for first place. American Family came in second or third in every other subcategory. The firm placed fifth overall in our ranking of Cheap Car Insurance Companies and is directly in the middle of insurers in terms of cost.
American Family rose eight positions to No. 2 overall, demonstrating the highest ratings rise from the previous year.
State Farm
Pros
- Highly regarded by current customers for customer service
- Frequently, premiums are less than the national average.
- Only a local agency may be used to acquire insurance.
Cons:
State Farm placed third in our ranking with a score of 4.2. The business did well in all of the subcategories we included in our ranking, and it was ranked No. 2 in the category of Best Car Insurance Companies for Seniors. In the subcategory of claims handling, State Farm is tied for third place with American Family and tied for second place with American Family in terms of customer service.
State Farm scored highly in a number of rate-specific areas, including the price of insurance for elderly and young drivers, and its prices are the third-lowest we discovered overall.
In general, it’s one among the most affordable businesses for motorists who have received a speeding ticket or been in an accident, and it’s the most affordable after a DUI.
Geico
PROS:
- Of the firms in our evaluation, it provides some of the lowest average yearly rates.
- Based on comments from policyholders, receives high marks for claims management, customer loyalty, and customer service.
Cons:
In our investigation, drivers with DUIs often had higher rates than the bulk of suppliers.
In our ranking of the Best Auto Insurance Companies of 2023, Geico and Nationwide are tied for fourth place with a score of 4.1. The firm dropped one position from the previous year, when it tied for third place with another company. Every segment in our ranking saw Geico place in the top half, including top-5 rankings for Customer Service, Claims Handling, and Customer Loyalty.
Additionally, it is among the list’s least expensive auto insurance providers. In our ranking of Cheap Car Insurance Companies, Geico came in second place overall, trailing only USAA. Geico offers competitive prices in a variety of areas, including inexpensive premiums for drivers wanting basic coverage and young drivers.
Nationwide
Pros
- According to a poll of policyholders, customer service and claims management received above-average ratings.
- rates that are affordable for drivers with bad credit
Cons:
- Average minimum coverage costs are higher than those charged by rivals.
- Drivers with DUIs pay greater premiums than the national average.
With a general score of 4.1, Nationwide is equal with Geico for fourth place in our ranking. The business is ranked No. 4 in the subcategory of customer service, No. 3 in the subcategory of claims handling, and No. 6 in the field of customer loyalty. In the Most Likely to be Recommended and Most Likely to be Renewed categories, it came in the top five.
Nationwide came in at No. 6 overall in our ranking of the best cheap auto insurance providers, right in the center.
Farmers
Pros
- Customer service receives great reviews from current policyholders.
- The majority of surveyed clients are content with how disputes are resolved.
Cons:
- According to our data, most other insurers’ average yearly rates are greater.
Together with Travelers, Allstate, and AAA, Farmers is ranked No. 6 overall among the Best Car Insurance Companies of 2023. The organization is ranked No. 3 in claims handling, No. 4 in our customer service area, and No. 6 in our customer loyalty category. In the subcategory “Most Likely to be Renewed,” farmers came in bottom.
In our survey, Farmers frequently gives some of the highest prices on average, and in our most recent ranking of affordable auto insurance providers, they came in ninth place.
Travelers
Pros:
Lower below the national average, the average yearly rate
Cons:
Policyholders polled give it low grades for processing claims
In our ranking, Travelers remains in the same spot it had the year before at No. 6, where it is tied with four other insurers. In our ranking, Travelers ranks No. 4 in Customer Service, which is the greatest position it can get in any of the subcategories. It came in lowest in the Most Likely to be Recommended category, sixth in customer loyalty, and seventh in claims handling.
With premiums below the national average in all of the categories we looked at, including those for teen drivers, young adults, and elderly drivers, as well as the price of coverage after a ticket or DUI, Travelers has affordable overall rates.
Allstate
Pros:
- According to client comments, it is simple to start a new insurance.
Cons:
- Rates are substantially higher than the norm for the country.
The highest position Allstate held in any of our subcategories was sixth in Customer Loyalty and Most Likely to be Recommended. Additionally, it was ranked No. 6 overall among the Best Automobile Insurance Providers in 2023. It came in seventh or below in the subcategories of Customer Service, Claims Handling, and Most Likely to be Renewed.
The firm is among the most costly in our ranking, with premiums that are more expensive than the national average in every pricing area we looked at, including rates for juvenile and elderly drivers, prices after a speeding citation, and rates after an accident. It was ranked No. 10 in our ranking of affordable auto insurance providers.
Car Insurance Types
It’s crucial to decide precisely what kind of coverage you require before buying a vehicle insurance policy. The seven main categories of auto insurance and what each one covers are shown below.
Vehicle collision insurance
When your car “collides” with another object, such a telephone pole or another car, your collision insurance will pay for the associated damage. Collision insurance may also cover repairs if you flip your car or are engaged in a hit-and-run, depending on your insurance coverage and where you live.
Detailed auto insurance
This kind of insurance covers your car in the event that it is harmed by something other an accident, including a fire, a natural catastrophe, theft, or vandalism. Although having a policy may be advantageous, comprehensive insurance coverage is typically not mandated by state law, especially if you don’t believe you could afford the costs of an unforeseen repair or potential car replacement.
Auto insurance with full coverage
A set of coverages known as full coverage auto insurance safeguards your automobile in the event of an accident or external factors that cause damage. Full coverage insurance often cover liability, collision, and comprehensive risks. Full coverage may also include any coverage mandated by your state, such as medical payments (MedPay), personal injury protection (PIP), or uninsured/underinsured motorist coverage.
Gap coverage
Gap insurance, often known as guaranteed asset protection, is for car owners who loan or lease their automobiles. Gap insurance pays the difference between the value of your automobile and the remaining lease or loan debt if it is stolen or damaged. Any further accident-related expenses are not covered by it.
Let’s suppose, for illustration purposes, that the loan debt is $24,000 while the real cash worth of your car is $20,000. Gap insurance would reimburse the final $4,000 you’d otherwise have to pay out-of-pocket if your automobile was declared wrecked.
Auto liability insurance
If you are found to be legally at fault for an accident that caused property damage, physical injury, or both, liability vehicle insurance coverage offers you financial security. It can also be relevant if someone else was operating your car at the time of the collision. State laws often mandate liability insurance, but the precise level of protection you need might vary. Remember that damage to your own car is not covered by liability insurance.
Auto insurance for non-owners
You can be eligible for a non-owner auto insurance coverage if you borrow, rent, or share a vehicle with another person. If you are at fault for an accident while driving someone else’s car, this sort of insurance offers minimum liability coverage. It can also protect you if you’ve misplaced your license and need an SR-22 to have it reinstated. Each state’s minimal auto insurance requirements are often met by non-owner automobile insurance limits.
Auto insurance for uninsured drivers
Financial protection is offered if you are involved in an accident with a driver who does not have liability insurance or flees the scene of the accident without disclosing their insurance information thanks to uninsured motorist coverage, which is mandated in 20 U.S. states and Washington, D.C. Underinsured motorist policy, which covers you if you’re in an accident and the at-fault driver doesn’t have enough insurance to properly cover the damage they did, is sometimes combined with uninsured motorist coverage.
How much does automobile insurance run?
Our most current study shows that the typical yearly cost of auto insurance is $1,547, or around $127 per month. To avoid paying more or less than the average, keep in mind that vehicle insurance premium prices are extremely customized and dependent on a number of factors.