The cheapest car insurance isn’t necessarily the best. People should make sure to choose a policy that will be there for them. The best car insurance companies aren’t necessarily the cheapest. Businesses should consider that it’s not worth choosing a cheap policy that doesn’t protect them against theft, accidents, and other issues.
We rank car insurance companies with one thing in mind: customer satisfaction. We gather information from current customers about their experience with the brand and use that data to help you find the best policy for your needs.
What Is the Best Car Insurance Company?
The best car insurance company in 2021 is USAA, but you need to have a military affiliation to get it. If you don’t qualify for USAA, State Farm is the second-best insurer based on our data.
For this study, we interviewed real customers of nine auto insurance companies across the United States. These people had all filed claims with these companies. The insights these interviews give us about how well each company serves its customers can help you decide which car insurance company deserves your business.
We surveyed consumers to find out what companies they thought were the best of the best. These are the companies that will most likely be renewed and recommended by their policyholders. They are the best insurance companies in the country. We also identified which companies were the best at handling customer service, claims handling, and customer loyalty.
Also Read: What Is Health Insurance?
Top Ranked Car Insurance Companies
USAA is the best car insurance company for the third year in a row. It tops J.D. Power’s customer satisfaction rankings in every category, including claims processing. Customers say they are very satisfied with USAA’s customer service, and love the easy process for filing a claim, as well as the frequent updates on claim status.
The only disadvantage of USAA is that it’s not available to all consumers. The company only offers its services to veterans, military members, and their families. As a result, many people will be unable to purchase insurance from USAA.
2. State Farm
A large number of survey respondents say that State Farm made it easy to file a claim. Many people also said that they planned to renew their policy. This means that State Farm is the best auto insurance company for people without military affiliations.
You can trust State Farm to be a good value when you need to file a claim. However, when we asked customers if they were satisfied with the status updates during the claims process, State Farm scored slightly lower than the industry average.
Geico is ranked third in customer satisfaction of car insurance companies. If you’ve filed a claim with them, you probably found the process to be fast and easy. Geico also has high marks for its ability to retain customers, who are likely to recommend the company to friends and family.
However, Geico didn’t score as high as some other insurance companies. Geico offers low rates and good customer service, but other insurance companies offer low rates and good customer service as well.
Nationwide is a solid choice for car insurance, but it’s not the top pick. It has some weaknesses that keep it from ranking higher than third compared to other car insurance companies. Nationwide has some upsides and some downsides that keep it from ranking higher than third compared to other car insurance companies.
According to the respondents, Nationwide did not provide sufficient information about the status of their claim or did not resolve it in a timely manner.
In this new era, Farmers must be sure to consider their entire customer experience. While Farmers is a strong contender in the claims process and customer service, their satisfaction is less than outstanding when it comes to whether or not customers would recommend the company to friends and family.
6. American Family
American Family ranks at the bottom of the list for customer satisfaction. However, policyholders are likely to renew and even recommend American Family to others. This suggests that American Family’s customer loyalty is extremely high. Although it may need to improve its claims process, American Family has many satisfied customers.
On our list of the best insurance companies, Progressive is No. 7. This company earns high scores for the ease of filing a claim and customer service.
But wait. Progressive is still behind most competitors in these areas. Many other companies have higher satisfaction ratings in terms of value. In addition, a higher percentage of Progressive customers plan not to renew than any other company.
Travelers customers are not happy. As you would expect from a low-ranked insurer, Travelers customers did not report high satisfaction in most areas measured by our survey.
In the eyes of customers, Travelers offers a poor value. The company’s claims processing is largely to blame. Most customers would not recommend Travelers to friends or family, and many would not renew their policies.
The majority of Allstate customers who filed a claim reported satisfaction with the process. However, they were dissatisfied with nearly every other aspect of their experience. In fact, Allstate has the highest rates compared to its competitors, which results in low perceived value.
Allstate has a problem with retention. In fact, Allstate customers are less likely to renew their policies when compared to customers of other insurance companies.
Who Has the Best Car Insurance?
In addition to naming the best companies overall, our research determined who has the best customer service, claims handling, and customer loyalty. We also discovered which companies have the highest renewal rates and friend referral rates.
USAA is at the top of almost every category. However, not everyone will meet its strict membership requirements. For that reason, we’re telling you about the runner-up in each category so that you can still learn about the best option available.
We asked people who filed a claim with their insurance company in the last five years to rate their experience. They were split into two groups, those who opened a policy in the last five years and those who filed a claim.
The second group was asked more questions about their satisfaction with the process during and after filing the claim, as well as their satisfaction with how the claim was handled.
These ratings are based on the information below to determine the company with the best customer satisfaction in specific areas.
Best for Customer Service: State Farm
If you have a problem getting approved for USAA, State Farm may be a good option for you. A recent survey of a variety of insurance companies shows that customers are generally more satisfied with State Farm.
A huge advantage of State Farm is that it has all those offices. In most areas, you can actually go to a physical location and interact with a real person. This creates personal service that other insurers can’t match.
One survey respondent noted that she knows that she can visit the office of the company she shops with in person and talk to an employee who is a member of her community.
Best for Claims Handling: Nationwide
Car insurance isn’t something you want to use, but if you need it, Nationwide is your best option. Car accidents are inevitable, but that doesn’t mean you have to suffer through the claim process. With Nationwide, you can file a claim quickly and with as little hassle as possible.
In a recent Nationwide survey, 76% of respondents were completely satisfied with how easy it was to file a claim. In addition, 62% were completely satisfied with the status updates on their claims, and 74% were completely satisfied with how their claims were resolved.
Best for Customer Loyalty: State Farm
State Farm ranks highest among the companies in our study when it comes to customer loyalty. State Farm has customer loyalty scores that are generally high and largely positive customer feedback. Customers consistently praise the company for its competitive rates and good customer service.
Most Likely to be Recommended: Geico
Geico customers are most likely to recommend the company to friends and family. This is an excellent measure of overall customer satisfaction. In fact, 41% of survey respondents who had not filed a claim said they’d be very likely to recommend Geico, and of those who had filed a claim, that number went up to 49%.
Most Likely to be Renewed: State Farm
One of the top ways to keep customers is to keep them happy. The best way to do that is by keeping them informed and having a great service team. State Farm has the highest customer retention rate, which means that most customers renew their policies and stay with the company. The reason for this is that about 61% of customers who file a claim say they are likely to renew their policy, and another 20% say they probably will.
How Much Car Insurance Do I Need?
What kind of car insurance do you need? It depends on your state’s laws. Each state has its own rules for car insurance, including the minimum amount of coverage you should carry. If you don’t follow your state’s laws, you could face negative consequences. To find out what your state’s requirements are, check out our state guides .
Frequently Asked Questions
Who are the top car insurance companies?
It’s not enough to provide great customer service. You must also make sure your customers are well-served. The leading insurance companies for customer satisfaction are USAA and Geico. The largest share of the market belongs to State Farm, Geico, and Progressive.
Who has the best car insurance?
State Farm is the best car insurance company for people who do not meet USAA’s membership requirements and who therefore cannot get USAA’s excellent car insurance.
Who has the cheapest car insurance?
The best car insurance companies in the US are USAA, Geico, and State Farm. If you don’t qualify for membership with USAA, Geico and State Farm offer the cheapest rates for most drivers.
How much car insurance do I need?
If you drive a car, you need to have insurance. State law requires minimum coverage. But how much do you really need? No matter your situation, you might need more than state minimums.
How do I find the best car insurance?
The top car insurance companies offer good customer service at affordable rates. We’ve ranked nine of the top national car insurance companies to show what they charge to different types of customers, as well as insight from real customers of these companies.