Paying for car Insurance is one thing we have to do; never mind that we hate it. Americans spend an average of $125 per month on car insurance. Although many new drivers rank the cheapest insurance company as the best car insurance company, the reality about the best car insurance policies is more complicated.
The reputation of the insurance provider, customer service, insurance options, and discounts are also important. There is no universal best car insurance company because the effectiveness of an insurance policy depends on the driver’s age, location, accident history, credit history, and other factors. We have compiled a list of five best five car insurance companies that meet the needs of most people.
Best Car Insurance Product FAQ
1. What Is Car Insurance?
Although car insurance policies differ, most policies usually cover the driver, the car, and others who might be involved in an accident. In all 50 states, it is mandatory to have a car insurance policy of some sort.
2. Can I Pay Auto Insurance Monthly or I must Pay Annually?
This depends on your insurance company. Most companies allow drivers to choose either option but they encourage annual payments by giving discounts to drivers who pay the whole amount for the year.
3. What Happens if I Want to Change my Policy or Insurance Companies?
You can freely change your insurance policy or insurer at the end of your policy. But changing the policy before the expiry of the policy will usually attract a cancellation fee.
4. Where Can I Buy an Insurance Policy?
You can buy policies online on the website of the insurance company. Other companies require you to buy insurance policies through the company’s agent. You can find the contact info of insurance agents on the websites of insurance companies. We recommend that you first compare insurance quotes from various companies to explore your options before you commit to an insurer.
5. What Factors Determine Insurance Premiums?
Insurance companies levy higher premiums to drivers whom they believe are at a higher risk of being involved in an accident. They usually require young drivers (below 25 years) to pay more in premiums than older drivers. They charge male drivers slightly more than females. Having a DUI record, accident history, or a poor credit rating may increase your premiums. Sometimes, insurance companies can even refuse to give insurance policies to some people they perceive to be “high risk” drivers.
6. Do Auto Insurance Policies Cover Me When I am Driving a Rental Vehicle?
Most insurance policies cover you when you drive a rental vehicle. Check with your insurance company for specifics.
7. Why Do Insurance Companies Sometimes Deny Accident Claims
Insurance companies will reject a claim when they believe you were driving recklessly or lied about the accident.
8. Will the insurance company Replace My Stolen Car?
This depends on the policy. Comprehensive policies normally replace stolen vehicles.
How We Reviewed
One of the most important factors people consider when choosing an insurance company is the claims process. We have considered the ease or difficulty of each company’s claims process and the perceived reliability of insurance companies for honoring claims. We have also checked out the history and financial strength ratings of the companies. We have also considered the price of the insurance policy.
An insurance company will not benefit you if it does not have a presence in your state. We have, therefore, checked the geographical coverage of the insurance companies as part of our review process. We also factored in the coverage options of the companies as well as the number and size of discounts the companies offers.
The cost and ease of getting an insurance policy differ with the age, accident history, and credit history of the driver. So we have analyzed the offers of the different insurance companies towards people in different demographics when compiling our list of the best car insurance companies. Finally, we factored in another important factor in people’s minds when choosing an insurer–customer service.
Overall Price Range of Car Insurance
The pricing of insurance policies differs with age, accident history, DUI records, and even academic performance of the drivers. Monthly premiums for drivers aged 16 average $345 while premiums for $25-year-olds average $112. Monthly premiums for drivers aged 30 are about $100 while those for 45-year-olds are about $96. 60-year-olds should expect to pay an average of $91 in car insurance every month.
What We Reviewed
Progressive insurance was launched back in 1937 as a dedicated car insurer. The company claims to have over 18 million drivers or one in 10 U.S. drivers insured with the firm. The company offers several discounts including safe driver discount and multi-policy discounts. Although the company started out as an auto-only insurer, it now offers a wide variety of insurance services. Like most insurance companies, you can get savings by bundling home and auto insurance policies with this company.
The company has a usage-based coverage program called Snapshot which enables safe drivers to save on their premiums. Under this program, driving data is conferred to the company through a device installed in the vehicle. They use this data to calculate premiums. Safe drivers can save up to $130 on premiums. The company has a very detailed and responsive website. We were impressed with the possibility of getting a personalized insurance policy based on the coverage options you opt for. Progressive insurance company has a complete suite of services including loan or lease payoff coverage and roadside assistance.
According to Finder.com, the average car insurance rate for Progressive in New York is $1,574.
Where to Buy
Esurance is the best car insurance company for ease of buying a policy. The company, which has been in business since 1999, returns detailed online quotes quickly and offers an option of buying an insurance policy 100 percent online. We loved that the quote is detailed and a coverage counselor is available to guide you if you are not sure of the policy you want. The company also has an intuitive mobile app that comes in handy when making a claim.
Esurance arguably has a greater selection of discounts than any other company on our list. Insurance discount packages include those for claim-free policyholders, Alumni of Pac-12 schools, safe drivers, and more. The company also has several supplemental coverage options including car replacement, property protection, mechanical breakdown, and more.
According to Finder.com, the average cost of Esurance auto insurance in New York is $3,555 per year.
Where to Buy
State Farm insurance combines a strong presence in all US with a variety of coverage options. The company has a strong financial position as evidenced by its solid performance in the Standard and Poor ratings. The company has about 18,000 agents nationwide and has some of the best financial ratings of US insurance companies. The company, which was founded in 1922, provides 24/7 support and customers can file claims online or through the company’s mobile app.
The company offers standard insurance policies including rideshare coverage in 37 states. Students who maintain an average GPA of 3.0 or more stand to save up to 25 percent on insurance with this company. However, compared to the likes of Liberty Mutual, the coverage portfolio of State Farm is not impressive.
According to Finder.com, the average nationwide cost of State Farm car insurance is $2,212 in New York.
Where to Buy
Liberty Mutual is the sixth largest insurance company in the U.S. This Fortune 500 company has been in business for over 100 years and it offers a wide variety of policies in 40 states. The company offers several auto insurance coverage options including vandalism loss protection, personal property coverage, new car replacement, medical payments, personal injury, towing/labor, roadside assistance, and collision coverage.
One of the outstanding features of their policies is accident forgiveness. Unlike most other insurance companies, Liberty Mutual won’t increase your premiums after your first accident. The company new car replacement feature compensates for the value of a brand new car if your totaled car is less than a year old. The company has an optional better car replacement service in which they can replace your car with a newer one if the vehicle has been driven less than 15,000 miles. Liberty Mutual also has one of the best car insurance coverage options for rental cars. The company offers unlimited rental coverage if the rental car is repaired at a dealer approved by the company.
The company has standard multi-policy discounts and mechanical parts replacement coverage no matter the age of the car. Their towing/labor and roadside assistance coverage is operational 24/7 and the company will pay for this service if you are covered.
The average annual cost of Liberty Mutual insurance in New York is about $2,365.
Where to Buy
Allstate insurance company has been in business since 1931. Allstate auto insurance prides itself in having a streamlined claims process. The company has a Claims Satisfaction Guarantee in over 40 states. The company’s premiums, however, are on the high side compared to most insurance companies. The company has a big network of agents and over 3,500 repair shops nationwide.
Allstate has several resources online including video tutorials on insurance terms, tips on choosing the right coverage, and more. Buying insurance from
this company is not as easy as the process of Esurance.
According to Finder.com, the average annual insurance cost of Allstate is $1,488.
Where to Buy
The best car insurance company varies according to the age, driving history, vehicle model, and location of the driver. It is therefore misleading to claim one insurance company is better than the others.
However because of the variety of rideshare coverage options State Farm offers, it is the best car insurance company for Uber and Lyft drivers.
State Farm and Allstate are the most reliable car insurance companies for claims as evidenced by their favorable ratings by J.D. Power.
Student drivers can enjoy the variety of discounts offered by Allstate. Progressive is the best car insurance company for young drivers, drivers who have accident history, and more “risk drivers”