14 Best Car Insurance Companies of 2020

14 Best Car Insurance Companies of 2020

Do you hold the title to a motor vehicle?

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Do you drive that motor vehicle on roads maintained by local, state, or federal transportation authorities?

If you answered yes to both questions, then you must carry auto insurance – no ifs, ands, or buts. The Insurance Information Institute has a handy guide to minimum insurance requirements in all 50 states.

Uninsured drivers avoid paying auto insurance premiums, of course. That’s a significant expense — $1,457 per year for the average American driver, according to an Insure.com analysis. But they’re also playing with fire. Penalties for driving without insurance vary widely by state, but they’re often stiff, per FindLaw. If you’re caught driving without insurance, expect to face a combination of hefty fines – up to $2,000 or more, depending on the state – and reinstatement fees, temporary license or registration suspension (or both), and prison time, even for a first offense.

Fortunately, affordable, high-quality auto insurance coverage abounds, even for those without perfect driving records. Read on for more about the best auto insurance companies for U.S. drivers right now.

Best Auto Insurance Companies

To earn a spot on this list, auto insurers must demonstrate:

  • Adequate financial stability, as measured by leading third-party evaluator AM Best
  • High claim satisfaction ratings per J.D. Power, the gold standard in driver customer satisfaction metrics
  • Aboveboard business practices, as measured by complaints lodged with state insurance commissioners and reported by the National Association of Insurance Commissioners.

These listings incorporate subjective data about each insurer’s available policy discounts, claims processes, and customer loyalty perks. They also account for geographical coverage, with insurers doing business in many states favored over those with more limited coverage.

1. Auto-Owners Insurance

  • A.M. Best Financial Strength Rating: A++ (Superior)
  • J.D. Power Overall Satisfaction Rating: 4 out of 5 (Better Than Most)
  • Auto Insurance Complaints: 71
  • Great For: Excellent customer service; local agent relationships

The name says it all. Auto-Owners Insurance has grown into a multifaceted insurance provider with offerings ranging from homeowners insurance and renters insurance to life insurance and commercial insurance. But it remains devoted to the motorists it was founded to serve.

In keeping with its roots, Auto-Owners retains an agency-based business model that’s increasingly rare. You must go through a local agent just to get an auto insurance quote, though that’s not as daunting as it sounds. Auto-Owners’ main website effortlessly funnels quote-seekers to agents in their area, and responses are timely. The inquiries I’ve sent out – to multiple local offices in different parts of the country – have been answered within one business day.

Auto-Owners offers exemplary front-end customer service, a claims experience that’s second to none, and a financially stable organization. It’s no coincidence that Auto-Owners’ auto insurance arm has an unusually low incidence of consumer complaints. You’re less likely to escalate a service complaint to your state insurance commissioner when you’re on a first-name basis with your primary point of contact.

Auto-Owners has some valuable fringe benefits, including 24/7 tow service anywhere in North America and deductible-reduction programs. These programs may significantly lower your out-of-pocket expenses when you’re involved in an accident with another Auto-Owners policyholder or experience a loss that affects your home and vehicle, such as severe weather.

Auto-Owners is Michigan-based, and its agents are most plentiful in the heartland. Entire swathes of the country, including California and Texas, are outside its network. But if you’re fortunate enough to have an Auto-Owners’ agent between you and the nearest state line, you’re in for an auto insurance treat.

2. Erie Insurance

  • A.M. Best Financial Strength Rating: A+ (Superior)
  • J.D. Power Overall Satisfaction Rating: 5 out of 5 (Among the Best)
  • Auto Insurance Complaints: 293
  • Great For: Excellent customer service; hands-on (yet flexible) local agent relationships

With operational bases in about a dozen states, Erie Insurance has the smallest trade area of any company on this list. But it more than makes up for that with excellent customer service, above-average bundle discounts, and surprisingly competitive premium pricing for a company that lives and dies by its agency-centric model.

Erie really shines on the bundle front. Combine your auto policy with life, renters, homeowners, or other policies, and you could snag a premium discount of 30% or more – though that’s by no means guaranteed.

Like Auto-Owners, Erie requires you to get a quote through a local agent. However, you can shop around for agents and don’t have to complete the transaction with your original selection. Erie has an average of 1,000 agents per state served, though their concentration is densest in jurisdictions closest to its Western Pennsylvania home base.

In addition to impressive bundle discounts, Erie earns high marks for excellent customer service and relatively low complaint volumes, though the modest coverage area no doubt plays a role there. Should you need to make a claim, you can count on your local agent to keep the process as painless as possible.

3. USAA

  • A.M. Best Financial Strength Rating: A++ (Superior)
  • J.D. Power Overall Satisfaction Rating: 5 out of 5 (Among the Best)
  • Auto Insurance Complaints: 1,042
  • Great For: Excellent customer service; tons of discounts

Auto insurance was USAA’s original claim to fame. It’s now a diversified consumer financial services company offering everything from cash-back credit cards to flood insurance, but it remains a top choice for discerning drivers who qualify for membership.

Unfortunately, most drivers don’t qualify for USAA membership. Only servicemembers (active, retired, and honorably separated) and eligible immediate family members (mainly spouses and children) are eligible. That’s less than 5% of the U.S. population.

Still, USAA auto insurance is a great deal for those lucky enough to qualify for it. It aced the J.D. Power Customer Satisfaction rankings, and it earned the highest possible score on Temkin’s (now XM) customer service scale for five years running and online experience scale for four years running…….Read More>>

 

Source:- moneycrashers

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