Buying Car Insurance is a must for car owners. Car owners usually select car insurance companies based on the quote. However, the cost is not the only option when it comes to the selection of car insurance companies. You should consider multiple other factors such as customer services score and rating, claim settlement ratio, coverage, and features they offered. You should also consider your unique needs, preference, and availability of insurance companies in your state.
To help you, we have shortlisted the 10 Best Car Insurance Companies in the USA that you should consider while buying car insurance. These car insurance companies are shortlisted based on their quality coverage, customer service, and competitive rates.
7 Best Car Insurance Companies of 2023
#1 State Farm
State Fram is the best insurance company for teen drivers. State Farm offers a policy at a reasonable rate to young adults and teenagers. State Farm is the largest auto insurance company in the United States and is known for its extensive agent network, strong customer service, and comprehensive coverage options.
State Farm offers online quotes via mobile apps. However, when it comes to offering personal services they provide excellent services via physical office network and via agent network. Pros and Cons of State Farm Insurance company are given below.
- Highest possible rating for financial strength
- Higher than average customer satisfaction rating with J.D. Power
- Multiple Coverage Options and discounts are available
- Reasonable rate for a teen and young adult driver
- No Gap Insurance Offered
GEICO is one of the best car insurance companies that offer multiple discounts to customers. GEICO offers affordable rates and various options for car insurance on the online platform.
GEICO website has multiple useful tools and features. GEICO also offers the facility to raise claims and monitor policies and payments online. The pros and Cons of GEICO are given below.
- Robust Online Platform and Mobile App
- Multiple Discount Options
- Highest Rating for Financial Strength
- Useful Tools available on the website
- Customer Services are poor and the Rating is low.
- No Gap Insurance available
Progressive is the best insurance company that offers discounts. Progressive has a very good market share in terms of auto insurance. Progressive also offers a snapshot program for safe driving habits. The pros and cons of Progressive are given below.
- Highly Rated Mobile App
- 24×7 Customer Support
- Discount Options
- Above average rating for customer satisfaction
- Claim Settlement satisfaction rating is low.
USAA is only available to military members, veterans, and their families, USAA consistently receives high ratings for its customer satisfaction and comprehensive coverage. They often offer competitive rates.
USAA got a higher rating in J.D. Power and it is a highly rated insurance company for customer satisfaction and claim satisfaction. The pros and Cons of USAA are given below.
- Multiple discount and coverage options
- Higher Rating for Financial Strength
- Good Customer Satisfaction
- Affiliation with the Military is required
Allstate is one of the oldest insurance companies and offers online services including claim settlement. The reward scheme for safe drivers with a safe driving bonus every six months is a unique feature of this company. Pros and Cons of Allstate are given below.
- Online Dashboard Type Platform
- Multiple Discount Schemes
- Safe Driving Bonus
- Average claim satisfaction rating
- Mobile application experience is poor
#6 Amica Mutual
Amica Mutual is often praised for its personalized customer service and high customer satisfaction ratings. They offer comprehensive coverage and various discounts. Amica Mutual is famous as best for Gap Insurance. This insurance company provides unique features of interior vehicle coverage. The Pros and Cons of Amica Mutual are given below.
- Easy Online Quote Process
- Strong Rating for Finance
- Gap Insurance available
- Market Share is Low
#7 Liberty Mutual
Liberty Mutual offers a range of coverage options, including features like new car replacement and better car replacement. They have competitive rates and a user-friendly online platform. You can consider Liberty Mutual as the best for customization. This insurance company offers additional discounts for buying a policy online.
- Product Customization Options
- Multiple Discount and Coverage Options
- User-Friendly Online Platform
- Lower Claim Satisfaction Rating
6 Types of Car Insurance
Car Insurance is usually classified into 6 types and this classification is purely based on the insurance coverage types offered.
#1 Liability Insurance
Liability Insurance refers to coverage that protects you financially if you’re found at fault in an accident and cause bodily injury or property damage to others.
#2 Personal Injury Protection (PIP)
A personal injury protection plan is a special type of protection plan that pays medical expenses for you and your passenger in case of an accident, regardless of who is at fault in the accident.
#3 Collision Insurance
Collision Insurance is a special type of insurance that pays for the repair or replacement cost of your vehicle after an accident. The damage can be caused either by another vehicle or by an object, such as a tree or fence.
#4 Comprehensive insurance
Comprehensive insurance as the name suggests is complete insurance coverage that pays for the repair and replacement of a vehicle after an accident that takes place whether another vehicle is involved in the accident or not.
#5 Uninsured motorist insurance
Uninsured motorist (UM) insurance is a special type of insurance that protects you in case you are involved in an accident where a driver has less or inadequate insurance to cover the losses.
#6 Gap Insurance
Gap Insurance is optional car insurance that covers the gap between the amount owed on a car loan or lease and the actual cash value of the vehicle in case of total loss.
Factors that Influence Car Insurance Premiums
You can save money on the car insurance premium by taking care of the factors that affect the car insurance premium.
- Driving History – Driving history is extremely important when it comes to insurance premiums. In case you have a bad driving history insurance premium is likely to be more. To save on premium you need to opt for a driving course.
- Type of Car – The type of car also affects insurance premiums. If you are driving a special car new one your insurance policy will cost you more.
- Gender and Age – Teenage and Young Adult likely to get more premium rates as car insurance companies also formulate their insurance rate based on the age and gender of drivers.
- Credit History – Credit History also plays an important role in car insurance. If the driver has a good credit history premium of insurance would be low.
- Location – Your location where you live also matters when it comes to car insurance. Some states have higher car insurance premiums compared to others.
- Mileage – Many insurance companies offer a discount for low-mileage drivers. High-mileage drivers need to pay more for insurance policies.
- Marital Status – Married drivers need to pay a low insurance premium compared to single drivers.
You should compare quotes, and coverage options, and read customer reviews to find the best fit for your specific requirements.