Top Car Insurance Companies

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top car insurance companies

What Are The Top Car Insurance Companies?

Nothing could be worse than paying for your car insurance premium for years only to find out that when you actually file a claim, the company’s claims support staff is so incompetent that it makes filing a claim near impossible or even worse, they refuse to pay your claim; now what?

Save yourself a HUGE headache and only get quotes from the top car insurance companies. Many smaller companies also offer competitive rates and customer service on par with the industry’s best insurance companies. However, don’t play around with “cut rate” car insurance providers that will leave you high and dry just when you need them the most.

Unless you live in New Hampshire, carrying car insurance is required by law in the United States of America. If you want to abide by the state car insurance laws in your area, as a car owner, you need to have a car insurance in place. With some car insurance companies here today and gone tomorrow, you can’t afford to sign up with just any company. You need to sign up with the best car insurance companies available to you.

 

Why Do People Look For The Top Car Insurance Companies?

There are a dozen reasons why you, as a policyholder, need to look into car insurance. Here are a few of them.

  • You are required under your state law to carry car insurance (except if you live in New Hampshire).
  • You realise that you are being overcharged for your policy.
  • The company you have your car insurance with doesn’t have homeowner’s coverage. This makes your car insurance rate high as it is not possible for you to bundle the two coverages together to save.
  • Bad experiences with: claims adjuster, claims department, customer service department, or the company’s insurance agent.
  • Your car insurance company becomes insolvent.
  • All your other lines of insurance such as life, health and home are with another company and you want a “one-stop shop” insurance provider.
  • Lack of discounts at your current insurance provider.
  • No accident forgiveness or Name-Your-Own-Price features in place.
  • Found out your current insurance provider has a very bad reputation.
  • You got married and moved over to your spouse’s car insurance policy.

What’s The Criteria When Looking For A Car Insurance Company?

  • A reputable, well established car insurance company that offers policies that perfectly balances quality (coverage) and price.
  • It’s important to keep in mind that you may not find the cheapest car insurance policy that serves all your requirements. In fact, the cheapest car insurance may not be the best car insurance and it could be quite the opposite in most cases.
  • Three quotes is not enough these days. Your car insurance research should focus on identifying the top 10 car insurance companies and choosing one company off that list.
  • Compare coverages and prices of these top insurance providers.
  • Never ask for the “bare minimum” coverage in order to save money. It rarely actually saves you money if you get into an “at-fault” auto accident.
  • Simply do a Google search and check online customer reviews about insurance companies. The customers are not getting paid and they will give you an honest view of their experiences with a particular insurance company.

No.ElementRange of points that can be earned or deducted (maximum to minimum)
1Type of Business0 to -41
2Time in Business8 to -10
3Competency Licensing0 or -41
4Complaint Volume20 to 2
5Unanswered Complaints20 to -21
6Unresolved Complaints10 to 1
7Serious Complaints15 to 0
8Complaint Analysis8 to -12
9Complaint Resolution Delayed0 or -5
10Failure to Address Complaint Pattern0 or -5
11Government Action0 to -30
12Advertising Review0 to -41
13Background Information5 or 0
14Clear understanding of business0 or -5
15Mediation/arbitration0 to -41
16Revocation0 or -10

Other Key Methods to Follow When Selecting A Reputable And Reliable Auto Insurance Company

  1. Go to the insurance website run by your State Department

For example, if you live in Houston, you can visit the Texas Department of Insurance website to find out which are the top companies listed there. You can even get a quote on that website. To access any state department’s website page, all you have to do is a Google search. Alternately, you can search for the top Houston car insurance companies in that search and get results on the top companies listed there. You can also click the link above and go right to the Texas Department of Insurance website.

  1. Car insurance companies with low consumer complaint rates is a good sign.

The Better Business Bureau (BBB) website is the perfect place where consumers can file a complaint against their insurance provider if they have a major problem with them. It is not difficult to find consumer complaint ratios on all the insurance companies in any state. This is also a good way to figure out companies you can continue research on and companies to avoid at all costs right off the bat.

Keep in mind that your aim is to identify companies that have a low consumer complaint ratio. This typically means that they are keeping their customers happy. For example, Amco Auto Insurance in Houston is just one of many A+ rated car insurance companies. They are rated A+ based off 16 factors as shown on the chart below. I suggest that you also look up the companies you are considering before signing your name on the dotted line.

For a more extensive rating system breakdown for Amco Auto Insurance’s BBB rating, please click here.

  1. Top companies listed on auto insurance ranking sites gives a realistic picture.

Another way to find out what are the top 10 car insurance companies in your state is to visit ranking sites. In America, one of the companies popular for ranking car insurance companies through surveys is JD Power. On this ranking site, you can find some of the top car insurance companies listed according to consumer preference. Factors taken into account by JD Power includes claims handling, coverage options, rates and customer satisfaction.

Another auto insurance ranking company that you should check is insure. Through surveys, this company obtains feedback from over 4000 policyholders in America to compile their data. Customers offer ratings based on factors such as value for price, customer service, types of packages and claims processing.

  1. Financial strength ratings must be carefully considered.

The insurance company you deal with must have a strong financial backing. This will ensure that they can honor their discounts, coverage limits and rates with customers.

If you live in the United States of America, you can choose from top companies like Allstate, GEICO, Progressive and State Farm as all of them are financially strong. If you wish to choose smaller companies, it is important to conduct thorough search as there may not be a lot of information on them. This does not mean they are not reputable; you just need to dig a little deeper to get key information on them.

One of the major advantages of choosing from the best auto insurance companies is that it gives you extra confidence in knowing that your claims will be processed and paid as quickly as possible.

Financial rating can give you an exact picture about the ability of a company to pay out on claims. Paying for damages and covering policyholders is much easier for a company with strong finances. This is something you must research on when you’re trying to answer the question as to what are the top 10 car insurance companies. Standard & Poor’s and AM Best are the two major financial strength rating companies in the USA. You can log on to these websites, create an account, search for almost any company in the USA and see their credit and financial strength rating. Keep in mind, BBB, Standard & Poor’s and AM Best all have their own unique rating systems which are all slightly different.

  1. Ask for suggestions and recommendations from your auto body shop or mechanic

You can certainly get a clear perspective about the best auto insurance companies from local body shops and mechanics. They will most likely know the most reliable car insurance companies as they deal with them regularly, which ones pay fast and which ones are easy to work with.

  1. If you are in doubt, handover the responsibility to an insurance broker.

If you are still unable to decide on which insurer to choose, the next best option is to handover the responsibility to the best insurance broker in your area. The best insurance broker in your town will be able to give you a clear idea on the top 10 car insurance companies you should choose from.

Insurance brokerage firms will make all efforts to ensure that you are satisfied with the insurance company you have chosen. They understand that only happy customers continue to do business with them. You can find many auto insurance broker sites by doing a Google Search. Ask for free quotes and choose a company that works with the top insurance providers only.

List of Top Car Insurance Companies

Based on above mentioned factors, here is a comprehensive list of the top 10 car insurance companies. For consistency, all credit and financial strength ratings have been supplied by Standard & Poor’s:

1. Allstate

One of the top rated car insurance companies in America, Allstate has established a reputation for offering a wide range of policy options at highly competitive rates. Some of the great value incentives offered for consumers by Allstate includes accident forgiveness and safe driving incentives. In existence for the past 70 years, this provider has consistently featured at the top of the best insurance companies list. If you choose Allstate as your insurance provider, it is easy to find the perfect package that suits your individual needs as this company offers an extensive range of policies.

Standard & Poor’s Ratings: AA-

Issuer Credit Rating     
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTAA-29/01/2009EESTABLE28/05/2013
Financial Strength Rating
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTAA-29/01/2009EESTABLE28/05/2013

Standard & Poor’s Ratings Definitions

Allstate Website

Allstate Support Page

 

2. State Farm Insurance

Apart from offering customers a range of policies, State Farm Insurance also offers discounts. If you shop smart, you can save up to 40% with this company. For those who are wondering as to what are the top 10 car insurance companies, State Farm Insurance could be the answer in terms of affordability.

Standard & Poor’s Credit Ratings: AA

Issuer Credit Rating
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTAA27/11/2002EESTABLE25/10/2010
Financial Strength Rating
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTAA27/11/2002EESTABLE25/10/2010

Standard & Poor’s Ratings Definitions

State Farm Website

State Farm Support Page

 

3. GEICO

People living in all American states can get car insurance from the Government Employees Insurance Company (GEICO). This company is wholly owned by Berkshire Hathaway Inc. (which in turn is run by investor Warren Buffet), and is one of the popular insurance companies due to its mascot.

One of the major aspects that has placed GEICO right at the top as far as customer preference is concerned is that they offer a variety of payment options. Apart from offering affordable auto insurance policies, this company also promises exceptional customer service.

Standard & Poor’s Credit Ratings: AA+

Issuer Credit Rating
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTAA+4/02/2010EESTABLE23/06/2014
Financial Strength Rating
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTAA+4/02/2010EESTABLE23/06/2014

Standard & Poor’s Ratings Definitions

GEICO Website

GEICO Support Page

If you want to read more about comparison between Geico and Progressive, please visit our article Geico vs Progressive.

4. Progressive

Progressive was established back in 1937 and has established a reputation for being one of the top car insurance companies in America. Apart from auto insurance, this company also offers other products such as snowmobile and RV loans, watercraft loans, bike and Segway loans.

Progressive operates through brokers and independent operating agents and has the distinction of selling the most number of commercial auto policies. One of the most innovative offers from Progressive is the “name-your-price” feature. This feature allows customers to counter offer the quote they receive from the company.

Standard & Poor’s Credit Ratings: AA

Issuer Credit Rating     
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTAA10/06/2010EESTABLE10/06/2010
Financial Strength Rating
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTAA10/06/2010EESTABLE10/06/2010

Standard & Poor’s Ratings Definitions

Progressive Website

Progressive Support Page

If you want to read more about comparison between Geico and Progressive, please visit our article Geico vs Progressive.

5. Nationwide

Established in the year 1925, Nationwide was originally called The Ohio Farm Bureau Federation. From its humble beginnings, this insurance provider and financial services company has grown to be one of the top auto insurance providers in the USA. The company also holds the distinction of being listed among the top financial services companies in the world.

Servicing millions of customers across the country, Nationwide offers affordable insurance options. Officially renamed as Nationwide in 1955, this insurance provider is one of the most financially stable companies today.

Standard & Poor’s Credit Ratings: A+

Issuer Credit Rating
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTA+25/07/2001EESTABLE8/07/2011
Financial Strength Rating
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTA+25/07/2001EESTABLE8/07/2011

Standard & Poor’s Ratings Definitions

Nationwide Website

Nationwide Support Page

 

6. AAA Insurance

The American Automobile Associations, also known as the AAA Auto Insurance is a non-profit organization founded in Chicago in 1902. This federation of auto clubs offers auto insurance policies apart from other services such as emergency road service, towing and first aid for its members.

Standard & Poor’s Credit Ratings: Api

“Under S&P’s system, the letter “A” in “Api” means the company has strong financial security characteristics but could be more vulnerable to poor business conditions than insurers with AA or AAA ratings.”

Issuer Credit Rating     
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTApi15/12/2011EE|U
Financial Strength Rating
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTApi15/12/2011EE|U

Standard & Poor’s Ratings Definitions

AAA Website

AAA Support Page

 

7. Liberty Mutual Auto Insurance

Those who ask as to what are the top 10 car insurance companies in the world should know that Liberty Mutual is one of the most financially stable and sound companies with an “A” credit rating. This company was established in the year 1912 and offers life and home insurance in addition to its auto cover. It is also one of the cheapest car insurance companies offering affordable policies for consumers. This full service company has a presence in at least twenty (20) countries across the world offering global customers quality financial services.

Standard & Poor’s Credit Ratings: A

Issuer Credit Rating     
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTA17/07/2014EESTABLE17/07/2014
Financial Strength Rating
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTA17/07/2014EESTABLE17/07/2014

Standard & Poor’s Ratings Definitions

Liberty Mutual Website

Liberty Mutual Support Page

 

8. 21st Century Insurance

21st Century Insurance offers customers auto insurance and also a variety of other insurance products in collaboration with the top car insurance companies in the USA. Known for good customer service, this company has established a reputation for being very reliable which accounts for its popularity.

Standard & Poor’s Credit Ratings: AA

Issuer Credit Rating     
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTAA10/06/2010EESTABLE10/06/2010
Financial Strength Rating
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTAA10/06/2010EESTABLE10/06/2010

Standard & Poor’s Ratings Definitions

21st Century Insurance Website

21st Century Insurance Support Page

 

9. GMAC

Since the company was established back in 1939, it has gained a strong presence in the American market. This insurance provider is known for customizing policies based on individual requirement and budget. General Motors Acceptance Corporation (GMAC) has a strong presence in regions such as Europe, Asia and Latin America. In the USA, this insurance provider has gained a reputation for being reliable and efficient in terms of claims processing. The company also offers a wide range of products.

Standard & Poor’s Credit Ratings: BB+

Issuer Credit Rating     
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Foreign Currency LTBB+29/09/2011EEPOSITIVE6/09/2013
Local Currency LTBB+29/09/2011EEPOSITIVE6/09/2013

Standard & Poor’s Ratings Definitions

GMAC Website

GMAC Support Page

 

10. American International Group (AIG)

Popularly known as AIG, the American International Group is one of the most affordable insurance providers in the world. If you are considering as to what are the top 10 car insurance companies in the world that you can afford, AIG is the perfect choice. This provider offers auto insurance customers a range of products at discounted rates. AIG offers significant savings on skillfully bundled products. There is no surprise that this company has a presence in over one hundred and thirty (130) countries worldwide and is a global leader in financial and insurance services. AIG provides asset management and retirement services apart from auto insurance.

Standard & Poor’s Credit Ratings: A+

Issuer Credit Rating     
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTA+6/05/2013EESTABLE6/05/2013
Financial Strength Rating
Rating TypeRatingRating DateRegulatory IdentifiersCreditWatch/ OutlookCreditWatch/ Outlook Date
Local Currency LTA+6/05/2013EESTABLE6/05/2013

Standard & Poor’s Ratings Definitions

AIG Website

AIG Support Page

 

How to choose the Top Car Insurance Company

Now that I have presented as much information as possible on the whole car insurance selection process and offered my list of the top 10 car insurance companies in the USA, you are ready to make an informed decision for you and your family.

Simply go through this listing of the top 10 car insurance companies and start your research by comparing quotes and services that each company offers before signing up. I know that it is an overwhelming amount of information, however, take your time before making your selection. The process itself is not as challenging as it seems. Simply choose a car insurance company that you feel comfortable to deal with and which offers excellent customer service and coverage for the best price.

 

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