List of Top Car Insurance Company in the United States

Any form of insurance is generally to protect individuals against damage, injury, loss, and the likes. It is very important to underwrite most things, including life. That’s why most countries, especially the developed countries made it mandatory for their citizens to ensure their lives and properties as well. Let’s get started with the List of Top Car Insurance Company in the United States

List of Top Car Insurance Company

In the United States of America, for instance, citizens and non-citizens must insure their lives and properties. Although the insurance policy is made by the government, it is private companies that carry out the insurance activities. Every insurance company has its specific policy different from others. This is why it is somewhat confusing to know which to choose whenever one is ready to key in for particular insurance. So, how can one go about choosing the right insurance company or know the best among the rest? If we are going to provide an answer to that, this one article won’t be enough.

However, instead of attempting to generally talk about all insurance companies, we are specifically going to focus on car insurance companies where we shall look at the factors to be considered in choosing the best car insurance company and the top ones available in the USA.

What’s Car Insurance

Insurance might not be a new word but it is assumed that not everyone will be able to comprehend the meaning of car insurance. If that’s the case, what’s car insurance?

Car insurance otherwise called auto insurance or motor insurance is a form of insurance particularly for cars, trucks, motorcycles, and other road vehicles.

 The insurance is made to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. The insurance can also be issued to protect ones against car theft, and damage to the car or motor sustained from events other than traffic collisions.

There are various types of car insurance, they include collision coverage; collision damage waiver; GAP insurance; and no-fault insurance. Each type varies with legal regulations depending on the state, country, or region.

How Does A Car Insurance Works in the US

We already know that car insurance covers damage to your vehicle and protects you financially if you’re liable for someone else’s injuries or damages. As well as paying medical bills if you or your passengers are injured in an accident or you’re hit by an uninsured or underinsured driver.

However, car insurance doesn’t cover wear and tear, people who regularly drive your car but aren’t listed on your policy.

As far as the US is concerned, virtually every state requires you to ensure your car before driving it, which means it is a must for you to ensure your car in the US.  With that, it is obvious that car insurance policy is state-made but there are some differences in each of the states of the US concerning the policy.

When you want to underwrite your car, you head straight to an insurer (which is a private company) and pay a car insurance premium which is an amount of money you pay your car insurance company in exchange for coverage. There are always options to either pay monthly or in full.

So, when your car is damaged or you sustained an injury in an accident with the car or any other thing happen (which is included in the policy you signed for), you will pay something called deductible which is the out-of-pocket expense you pay before your insurer will cover your claim.

For instance, you have $1,000, hit a street light pole, and your car repairs cost $2,000. You’ll pay $100, and your insurer pays the remaining $1,000. You can choose your deductible amount from the options offered by your insurer.

Factors That Determines Car Insurance Rates

Insurers have many factors that they use in determining your car insurance rate known as rating factors. A rating factor is an individual characteristic of a customer used to price car insurance premiums. Examples of rating factors are age, driving record or vehicle type, location, gender or marital status, etc. The less risky your rating factors are, the cheaper your car insurance policy will be.

Below are the top rating factors often used by car insurance companies:

1. Age: Age is a very significant rating factor this is because insurers assume that drive recklessly (like they get into accidents) compare to other adults, so teen drivers as very risky and potentially expensive clients to insure. With that, teens premiums are often expensive while adult drivers’ premiums are often affordable.

2. Driving History: Another factor that determines what you will pay for insurance is your driving history. This is important because car insurance companies see a driver’s past as an accurate predictor of their future performance. So in short, if you have bad driving records, your insurance premium will likely be higher than someone with a good driving history.

3. Credit Score: Another rating factor is the credit score. According to available data, it was revealed that drivers with poor credit file more claims than do drivers with better credit. And when they do file claims, they are generally more expensive than claims from drivers with good credit. This brings about differences in insurance premiums.

Also Read: Top 10 International Student Loan Lenders in the USA

4. Driving Experience: This determinant is simple logic – the more experience you have behind the wheel, the less likely you are to make the mistakes that lead to violations and claims. This helps the insurance company to how risky you are and to know the premium you are to pay.

5. Location: In a part in this article, we have stated that each state has its car insurance policy and it serves as the rating as well. location functions as a rating factor on two levels: state and zip code. The state you are in determines the premium amount and likewise, car insurance is priced by ZIP code to help insurance companies adjust for the external rating factors associated with the particular area.

Note: These are mainly the most important rating factors, there are up to 10 other rating factors which the insurance premium but are less important and can be overlooked.

Factors To Consider In Choosing The List of Top Car Insurance Company

There are many car insurance companies for customer base in the US and it is quite difficult to decide on that policy and insurers. But knowing the right one to choose will greatly help you sooner or later.

It is necessary to note that not all car insurance policies are the same, and each car insurance company offers something unique to its customers. That been said, we are now going to look at factors to consider in choosing the best car insurance company in the US.

1. Customer Service Reputations: In selecting the best car insurer suitable for you, you need to check customer service ratings of various companies by browsing the net to get a sense of what policyholders feel about the company, and alternatively, you can check your state’s department of insurance website to see how many complaints have been lodged about the company.

2. Real Quotes from Insurers: Having selected a particular car insurance company for having good customer service, you should go get a quote from that company and compare it with other companies to examine how affordable their offer is. Remember that your rating factors determine how affordable your quote will be.

3. Suitable Coverage: Generally, all car insurance companies will cover the core car insurance coverages such as damages insurance, collision insurance, etc but only some might other additional benefits like roadside assistance or accident forgiveness, that suits your demand, you should ensure that forms the reason for going for the company.

4. Financial Stability Ratings: Checking the financial stability ratings of the insurance company is very important. Remember the main goal of the insurance is to have something to fall on to whenever there is an uneventful occurrence. So, if the insurer’s financial strength rating is weak, it is more or less than you didn’t insure your property. The industry standard for financial strength ratings is A.M. Best.

List of Top Car Insurance Companies In The U.S

We have briefly examined how you can choose the best car insurance company, we still feel the need of helping you to list the top car insurance companies in the United States of America for easy selection. Here we go!

1.  State Farm

State Farm is a group of insurance and financial services established in 1922 with headquarters in Bloomington, Illinois, United States. It is the largest auto insurance company in the U.S. and owns 16% of the total available market share. State Farm currently employs approximately 60,000 employees and has nearly 19,000 agents. It has 343 offices and 30 operations centres across the U.S.

It offers many coverage options, from auto insurance for teen drivers, or insurance protection for rental cars to insurance for sports cars and more. It is among the largest widely available car insurers in the country and offered the cheapest car insurance rates.

Its service has good ratings and customers are eligible for 24/7 roadside assistance coverage.

 2. Geico

Geico has been an issuer in the U.S since 1936. It is known for its advertisements featuring an animated gecko. The company’s car insurance offers coverage for more than just cars. Whether you have a car, truck, collectable car, or an ATV, Geico has the policy to insure it. It serves as an underwriter to more than 16 million auto policies, which insure more than 24 million vehicles.

The company’s premiums are quite a bit lower than the national average cost of car insurance in the U.S. and at the moment, the average cost of minimum coverage in the U.S. is $565 per year. Its customer’s service ratings are impressive and have quite some discount which rate depends on State.

3. Progressive

This is another top insurance company in the U.S which was established in 1937. The company offers the ability to buy auto insurance in-person, online, or by phone. Alternatively, customers can sign up through independent insurance agents. It has up to 36,000 employers and up to 400 offices across the country.

Progressive offers various car insurance programs and discounts to help lower your premium without sacrificing coverage. Its customer satisfaction scores are mostly average and it received a below-average ranking for claims service.

4. All-State

Allstate is the second-largest publicly traded property and casualty insurance company in America. It was established in 1931 and its headquarters is in Northbrook, Illinois. The company currently employs more than 46,000 people and has many offices across the country.

Its average annual full coverage premium is $1,92 while the annual minimum coverage premium is $696. It has a discount program for good driving habits known as Drivewise telematics which can amass you a 40% discount if you maintain good driving habits and can as well earn you rewards points, which can be redeemed for car rentals, magazine subscriptions, gift cards, and merchandise.

Its customer service rating is on average but below average in some states, so if you are considering using this insurer, try to review the policy of the state you are in first.

5. USAA

The headquarters of this financial company can be found in San Antonio, Texas, United States and it was founded by 25 Army officers who decided to insure each other’s vehicles in 1922. The company serves millions of individuals associated with the U.S. military, including current and former service members, a family of service members, and cadets or midshipmen.

Its average annual full coverage premium is something around $1,225 while the average annual minimum coverage premium is $384 which makes it among and cheapest car insurance, especially for veterans and military service members.

It has lots of discount pecks and very high customer service ratings. Its weakness is that it only serves individuals associated with the U.S. military.

6. Farmers

Farmers’ headquarters is in Los Angeles, US. It is one of the top insurance companies with satisfactory customer service ratings and financial strength ratings. It virtually offers all kinds of insurance: life insurance, pet insurance, auto insurance, property investment, just name it.

Its offices can be found across all the 50 states in the US with over 13,000 employers underwriting its numerous policies. It has quite some sumptuous features that can’t be found in another insurer. For instance, if you drive for transportation providers like Bolt, Uber, etc, you can purchase ridesharing coverage and you may also be able to purchase OEM coverage, which will source original manufacturer parts for your vehicle if it is damaged.

Farmers began as an insurance company providing coverage to farmers’ vehicles. Since then, it has evolved to become the seventh-largest insurance company in the country.

7. Liberty Mutual

Founded in 1912  with headquarters in Boston, Massachusetts. It is an international multi-purpose organization that sells property and casualty, health, and life insurance policies.

Liberty Mutual is the third-largest property and casualty insurer in the United States. The company’s auto insurance policies are easy to purchase, manage and bundle with other Liberty Mutual policies. It has different auto discounts on its website to help customers get the best price on their car insurance.

Their financial strength rating is high but the customer service rating is below average.

8. Esurance

This insurance company is a subsidiary of Allstate. It was established in 1999 and it sells auto, home, motorcycle, and renters insurance direct to consumers online and by phone. Its primary competitors are other direct personal insurance writers, mainly GEICO and Progressive.

The insurance brand’s strength lies in mobile experience rather than its pricing and customer service. It, however, has a below-average rating in customer service ratings and its pricing is a bit above the average.

Conclusion

Car insurance protects you against damages, injuries, and many more. There are many car insurance companies in the U.S and we have helped in providing the top ones available for you to be able to choose from while you want to ensure your vehicle or to use in comparing their rates with others. We hoped this has helped you, and if there’s anything you will like us to include that’s provided, kindly drop a comment below.

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