The Top 5 Auto Insurance Companies
Auto insurance is designed to minimize the financial burden that may arise if you’re involved in an accident. Almost every state requires drivers to have a valid insurance policy to use state roads. It makes sense – there are over six million accidents a year in the United States!
When buying an auto insurance policy, you should look for providers with good rates and attractive discounts. But you also need to weigh factors such as the company’s claims satisfaction, financial strength, and overall services. To help you make your decision, here are the top five auto insurance companies in the country.
USAA
Average annual premium: $1,255
The JD Power Auto Insurance 2020 study awarded USAA the highest scores for overall customer satisfaction and auto claims satisfaction. This company offers auto insurance in all 50 states, but is only available to active military personnel, veterans, and their family members.
Customers may qualify for the following discounts:
- Safe driver
- Defensive driving course
- Multi-vehicle
- Students
Pros
- Excellent digital experience (both website and mobile app)
- Multiple discount options
- Ride-share insurance available
Cons
- Must be a military, veteran, or family member to qualify
- No agent access
GEICO
Average annual premium: $1,676
GEICO stands out as the most affordable option for drivers with poor credit. If you have bad credit, you can get a quick online quote to see if you qualify for auto insurance coverage and what rate you can get.
Once you’ve signed for GEICO’s auto insurance, you may qualify for one or more of these discounts:
- Federal employee
- Military personnel
- Good driver
- Student
- Safety features discounts (airbags, anti-lock and anti-lock brakes)
Pros
- Generous discounts available
- Excellent third-party ratings
- Connectivity with Amazon Echo or Google Home
Cons
- Gap insurance not available
- Accident forgiveness not available in some states
Allstate
Average annual premium: $2,034
Allstate is the second-largest publicly-traded insurance company in the U.S. It has a presence in all 50 states and Washington, D.C., and it has a cluster of agents spread across the country.
Allstate insurance coverage goes beyond just auto insurance. It also covers rideshare vehicles, sound systems, and reimburses expenses for rental cars.
If you are looking to insure with Allstate, you may qualify for one or more of these discounts:
- Smart student
- Full-time student with good grades discount
- Anti-theft device
- Anti-lock brakes
- Safe driving
Pros
- Offers ride-share insurance
- Generous perks
- Innovative Drivewise program (track driving habits, trip data, and earn reward points)
Cons
- Below average customer satisfaction ratings
State Farm
Average annual premium: $1,656
State Farm has been in operation for over a century. It has maintained its network of employees across the country, giving customers a personalized experience with its 19,000 agents.
You can buy auto insurance just for your car or bundle it with coverage for other vehicles such as off-road vehicles, boats and motorcycles to enjoy multi-vehicle discounts of up to 20 percent.
Customers may also qualify for the following discounts:
- Defensive driving course
- Good student
- Steer clear discount (drivers below 25)
Pros
- Strong third-party ratings
- Multiple discounts available
- Very affordable rates
Cons
- Ride-share insurance only available in some states
- Lower customer satisfaction ratings
Farmers Insurance
Average annual premium: $2,364
Farmers Insurance is one of the largest auto insurers in the United States. In addition to auto insurance, you can also buy one of the optional coverages, including accident forgiveness, customized coverage, and new car replacement. You also get ride-share insurance for Uber and Lyft to extend your personal auto policy.
Customers may qualify for these discounts:
- Multi-vehicle
- Multi-policy (bundled)
- Good student
- Teen driver
- Professional group membership
Pros
- Multiple coverage options for auto insurance
- Accident forgiveness offered
- Great customer service and claims handling
Cons
- High premium rates
- Not available in all states
Choosing an Insurance Provider
Whether you are looking for the cheapest auto insurance or the auto insurer with the best customer service, you should compare several policies before making your final decision. Begin your search with these five providers, but don’t hesitate to branch out to other providers. The more quotes you get, the better deal you can secure.