AUTOMOBILE BEST INSURANCE COMPANIES
The Best Car Insurance Companies
Amica: Best Overall Car Insurance Company
Amica was the strongest company overall in my research, and ranked number two in J.D. Power’s 2015 customer satisfaction report — that means out of 11,469 surveyed drivers, it had the second highest satisfaction rating among more than 20 different companies. It also received the highest Consumer Reports rating among auto insurance providers. Consumer Reports even noted that an overwhelming number of customers reported “relatively few” problems during the claims process.
- A high J.D. Power satisfaction rating: Amica received a perfect score in 4 out of 7 categories in J.D. Power’s 2015 auto insurance study.
- High financial stability ratings: Amica boasts a “Superior” financial stability rating from A.M. Best, which is the highest rating available.
- No repair facility restrictions: Unlike most every other insurer, Amica has zero restrictions on which body shop you use for repairs.
- “Platinum Choice” coverage: Amica offers an additional tier of coverage called Platinum Choice, which costs more, but includes identity fraud monitoring, full glass coverage, prestige rental coverage, and rewards for good driving.
- Best array of coverage: Amica offers the most driver and vehicle coverage of all my top recommendations. Its list includes GAP insurance and interior vehicle coverage, which aren’t offered by State Farm, The Hartford, or USAA.
- Quote, the process is less than desirable: Whether you start online or over the phone, you will eventually wind up on the phone to get an official quote — that can tack an extra 20 to 30 minutes to the process.
- Fewer driver discount opportunities: Amica is missing a few key driver discounts, including pre-pay, low mileage, and military discounts. Consequently, it scored only 46 out of 100 in my driver discount evaluation.
- Few online resources: There are a few FAQs on the site, but Amica lacks in-depth online materials to help customers get a complete grasp on their purchases without having to talk to someone. Additionally, some policy changes require direct assistance from an Amica agent, which can be time-consuming.
State Farm: Best Car Insurance Company for Customer Service and Interaction
State Farm is the largest car insurance company in the nation, per the Insurance Journal in 2016. Fortunately, it’s also one of the best — especially when it comes to the customer service experience. In 2015, State Farm received high praise from J.D. Power for its service interaction and claims handling. And of all the insured drivers I surveyed, it received the most positive remarks by far.
It is incredibly easy to get in touch with State Farm. You can call one of the company’s 18,000 agents, go online, or even send a picture of your damaged car with your smartphone using the Pocket Agent mobile app. Compare that to Amica, which doesn’t allow you to connect with an agent via an app, or file a claim through an agent. State Farm also gets high marks for a pain-free shopping experience that lets prospective customers call their local agent or chat with a representative online if they have any questions.
- Superior claims handling: No other insurer makes it easier to file a claim — a fact corroborated by its high service rating, 18,000 agents nationwide, and excellent mobile app. Sure, most other auto insurers offer the basic trifecta of the phone, app, and email contact to agents, but State Farm’s is the easiest to use by far.
- Great financial standing: State Farm has an A.M. Best outlook of stable, and a “Superior” overall rating — the highest given.
- Best online quote tool: Out of all the competition, State Farm has the simplest online quote tool. In less than five minutes, it’ll guide you completely through the process, replete with thorough examples of coverage options.
- Missing a few common driver discounts: Like Amica, State Farm lacks two extremely common discounts: pay-in-full, and automatic payments. These two discounts don’t save a ton of money, but are definitely nice options to have — and are offered by my third pick, The Hartford.
- Lacks a couple of important coverage: Unlike its competitors, State Farm doesn’t offer stacked uninsured motorist or new car replacement coverage. That could be a deal breaker for someone who lives in a state with an incredibly high rate of uninsured drivers.
The Hartford: Best Car Insurance Company for Policy Options
The Hartford is only the nation’s 11th largest insurer, but it still packs a punch. In fact, it had the highest score in my 12-category feature evaluation (92 out of 100). It also offers a wide range of policy options and benefits (including rates based on how much you actually drive your car and a new car replacement program for cars totaled shortly after purchase) and was the only insurer to score a perfect 100 in my vehicle-discount evaluation.
- Mechanical breakdown coverage: Mechanical breakdown insurance helps cover the cost of repairs that aren’t covered by your car’s warranty. The Hartford is the only one of my top picks that includes this coverage.
- Useful policy benefits: The Company provides not only a solid set of coverage but also a great selection of policy benefits. For instance, frequent travelers will appreciate The Hartford’s towing and roadside assistance programs.
- Excellent purchase experience: The Hartford is one of two national providers to receive a perfect “Overall Purchase Experience” score from J.D. Power.
- Less-than-average claims satisfaction: The Hartford received a perfect score in my claims management evaluation, but according to J.D. Power, customers are still less than satisfied — it received only a 2-star rating for service interaction.
- Fewest online educational resources: The Hartford offers the fewest online learning materials among this field of competitors.
USAA: Best Car Insurance Company for Members of the Military
Throughout my research, I found that the company’s stellar reputation holds true. If you are a member of the US armed forces or are related to one, there is no better option than USAA.
It is one of the three highest-rated automotive insurers in the country. The only downside is its limited availability: USAA only services the immediate families of active and former members of the military. Given those restrictions, the quote process is a bit more intense compared to its competitors, but that’s a small price to pay for its exemplary service.
- Rated no. 1 nationally for purchase experience: USAA received the only perfect score in J.D. Power’s 2016 report.
- Solid financial stability: A.M. Best gives USAA the highest possible stability rating: “Superior.”
- Membership restrictions: USAA is only available to members of the military and their immediate family.
- Missing three key vehicle coverages: USAA doesn’t offer GAP insurance, interior vehicle coverage, or new car replacement coverage.
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Other Car Insurance Companies to Consider
Progressive is worth noting due to its variety of discounts and special coverages that could shave a decent amount of green off your monthly bill. For example, the Snapshot tool allows Progressive to reward you based upon your driving habits. Have an anti-theft device? There’s a discount for that too. The company also offers pet injury coverage — which is included with collision and comes standard in most states. However, Progressive’s scores across the board were only average, and I couldn’t justify recommending it over my top picks. And, despite what Flo, Progressive’s famous, peppy insurance cashier, would lead you to believe, its mobile apps ratings average out to just under 3 out of 5 stars.
If you live in the South, Midwest, or Mid-Atlantic regions, Erie Insurance is worth your consideration. Erie has consistently received high marks from J.D. Power and Consumer Reports, but didn’t make it into my top four recommendations due to limited availability — it only serves residents in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and certain parts of DC.
Outside of that, Erie is one of the best commercial auto insurers, offering policies that come standard with coverage for road service, lawyer fees, and loss of earnings. It also has particularly comprehensive coverage options that include extras such as money toward rental cars after a crash (this is usually an add-on policy with most insurers).
Auto-Owners Insurance is available in 26 states located primarily in the South and Midwest. It uses an agent-only model that promotes customer relationships, so if you prefer talking to a human being, Auto-Owners is a great choice. The company also scored a nearly perfect score in J.D. Power’s 2015 satisfaction report, falling short only in the realm of its rental car experience.