Best Car Insurance Companies in the United States

Best Car Insurance Companies in the United States, as you have came here by seeing this title definitely you have a car and you want to ensure it. 

United States  has a car culture. According to an estimate about 80 percent of American population owned cars. And this is the reason it has largest number of Insurance companies in the world.

Such a big number of Insurance companies in USA might confuse you to select a better one for you as every company has its own pro and cons in its policy. 

These Insurance companies might differ in their certain policies and premiums but their core business model are same. You can read about Insurance and the business model of these companies in the below link.

What is Insurance? | Business Model of Insurance Companies

Is car insurance really necessary?

Car Insurance is not fuel like without it your car will not run. But in expert opinion, having car Insurance really worth it.

If you are heavily dependent on your car and use it on daily basis, then having Insurance for it gives you the peace of mind knowing that you are covered financially in case of any accidents. Life is full of un-expectancy and no one knows what would happen while driving.

But if you don’t use your car too much or have purchased it just for show case, you can omit car Insurance.

Things to Consider When Buying Car Insurance

Brand Reputation

It is recommended to consider this factor while purchasing not just for Car but any Insurance policy. Going with the trusted Insurance brand having good market image is better for true Insuring. Ultimately it will provide you good reliability and less fraudulence.

Coverage

This is one of the crucial factor to consider when buying car Insurance as your whole outcome is dependent on it. How much amount and how broad coverage your Insurer would provide you during damages is worth considering and it is written in the policy documents.

Different insurance companies offer different extent of coverages. Hence, one must carefully study the coverage before opting for a plan.

Premium

Is is the amount of money a policy holder has to pay on regular basis for their coverages. Different Insurance provider charges different premiums for their policy.

The premiums depends on various factors like car price, car age, driver age, driver history, area locality etc. As it goes in vain in case you don’t claim for coverage, it is advised to go with the company who charged affordable premiums.

Add-On Coverage

Add-on coverages includes additional benefits such as zero dep coverage, consumables, engine protection, key and tyre protection, and RTI (return to invoice).

So one should also look for add-on coverages in their policy which can protect car owner against any financial loss.

Claim Settlement Ratio (CSR)

Every time a policy holder claims for the coverage doesn’t mean that he/she is going to get it. The company first verify your claim and their if found legitimate forward it for approval. What the chance of approval of a claim generates a term called CSR.

Claim Settlement Ratio (CSR) is actually percentage of insurance claims settled by an insurance company compared to the total number of claims received.

So you should go with the Insurer having good CSR ratio with good customer satisfaction. There are various other factors to consider while buying a car Insurance but the above are the crucial ones.

Out of lots, here we have provided a list of some of the trusted Insurance companies for car in USA. For making the list we have considered the asset of the company, trust value among policy holder, premium cost and few others.

List of Best Car Insurance Companies in the United States

Erie Insurance

5 rating by Forbes

Eric Insurance is one of the renowned Insurance company providing policy for auto, home, commercial and life insurance. In 2021 Fortune magazine ranked it 347th among the largest public U.S. companies, in terms of revenue.

The company provide policy which are affordable and happily accepted by the policy holder with some add-ons giving you benefits you won’t always find in other typical policies.

The general policy includes following coverage –

  • Property Damage Liability
  • Personal Injury Protection
  • Bodily Injury Liability Coverage
  • Uninsured or Underinsured Motorist Coverage
  • Collision Coverage
  • Comprehensive Coverage

Downside :- You will have to depend on ERIE agent for majority of your task rather than to do all things online.

USAA

5 rating by Forbes

The United Services Automobile Association (USAA) is one of the trusted finance companies in the US which also has renowned rank in the Fortune 500 companies. Started in 1922 by a group of U.S. Army officers to ensure their auto, the company now has pawed in the Insurance ground vey well.

USAA car insurance policy are widely purchased as it offers consistently good prices and have a very high trust value provided you should be eligible for it.

USAA sells insurance only to active, retired, and separated veterans with a discharge type of “Honorable” from the U.S. military and their eligible family members.

The Car Insurance policy by USSA contains following coverages –

  • Vehicle protection
  • Liability coverage protection
  • Passenger protection
  • Other protection like rental reimbursement and accident forgiveness

Downside:- Only available for active military members, veterans and their families.

State Farm

4.5 rating by Forbes

State Farm is the largest property and casualty insurance provider in the United States which was ranked 36th by Fortune 500 in 2019. It is also the largest auto Insurance company in America with very high trust value.

Even though its rate are little bit higher, but the company is widely selected car Insurer in the united states as it provides wide variety of options with flexible policies and other offers.

The general policy includes following coverage –

  • Bodily injury liability
  • Uninsured motorist bodily injury liability
  • Underinsured motorist bodily injury liability
  • Property damage liability

Downside:- Policies are comparatively expensive than others providing same level of coverage.

Travelers

4.5 rating by Forbes

Having headquarters in New York city, Travelers Insurance company is one of the big name for providing commercial and personal property Insurance in the United States that is ranked No. 98 in the 2021 Fortune 500 list of the largest United States Corporations. It also operate in other countries like Canada, UK.

The travelers offers average to high rates for auto Insurance so its policies are generally not taken by who are is search for low rate Insurance, but those who qualify for the discounts found it really helpful. and stable.

The policies include following coverage –

  • Comprehensive coverage
  • Liability coverage
  • Personal injury protection
  • Medical payments coverage
  • Uninsured and underinsured motorist coverage

Downside :- The policies are generally expensive 

Auto-Owners Insurance

4 rating by Forbes

Auto-Owners company is one of the oldest Insurance company in USA started in 1916 provides policies to not just for vehicle but also for life, home and business.

Providing services offline through agents, currently the company has more than 6000 agents all over the country. Business Insider describes Auto-Owners Insurance as one of the best homeowners insurance companies for 2020 while Forbes listed Auto-Owners Insurance as one of the best car insurance companies considering customer happiness.

Known for providing Insurance policies at affordable rates with good financial stability and have good customer claim satisfaction, the company provides following coverages in their car insurance policy –

  • Liability coverage
  • Comprehensive and collision coverage
  • Roadside assistance coverage
  • Gap coverage
  • Diminished value coverage

Downside :- You will have to depend on offline agent for all of your task rather than to do things online.

Geico

4 rating by Forbes

Standing as Government Employees Insurance Company (GEICO), it is the second largest Insurance company in the united states after State Farm owned by Berkshire Hathaway. It is one of the most popular name in Insurance serving more than 17M policy holders.

Geico is known for providing low rate on auto policies and have service available both offline through agents and online through sites and apps. Providing good customer satisfaction, the company has very low complaints rates. If you’re in the military or are part of an emergency deployment, or a loyal customer  you could receive 15%-20% discounts on policies.

Geico Insurance provides following coverages in their auto Insurance policy –

  • Bodily injury liability
  • Uninsured motorist bodily injury liability
  • Underinsured motorist bodily injury liability
  • Property damage liability
  • Uninsured motorist property damage liability

Downside :-  High rates for drivers with a DUI conviction and and offers are available only to certain categories people.

Nationwide

4 rating by Forbes

Nationwide, ranked #25 in Fortune’s “100 Best Companies to Work For” is one of the Insurance and financial services companies in US. Nationwide offers Insurance for lots of vehicle from cars, classic cars, RVs, motorcycles, ATVs, scooters, golf carts and boats to snowmobiles.

The company is known for providing policy at quite affordable rates even to those who has poor credit and high rated customer services. For customers with good credit scores and good driving habits, Nationwide provides lots of offers like Multi-policy discount, Defensive driving discount, Anti-theft discount etc.

In its averaged price policy, Nationwide provides following coverages –

  • Property damage liability
  • Uninsured motorist property damage liability
  • Bodily injury liability
  • Underinsured motorist bodily injury liability

Downside :-  Currently its services are going low and not provide low rates to young drivers.