If you own a car, it’s almost inevitable that you will also have to deal with car insurance. While it might not be the most exciting topic, auto insurance is essential for anyone who owns a car. If something unexpected happens, or if you get into an accident, having sufficient auto insurance can help reduce the financial impact of these unfortunate events.
You don’t need auto insurance to register your car. But if you drive without coverage, you’ll be on the hook for any costs after an accident. Even small collisions can have big consequences. A new report released in January 2022 by Consumer Reports found that crash-related expenses can average $8,300 per claim.
Premiums range widely based on factors like where you live, your age, and whether or not you have a clean driving record. There are many auto insurance companies to choose from. Some are better than others. The best car insurance companies offer affordable rates with high coverage limits and helpful customer service agents who won’t try to upsell you on unnecessary services.
However, some auto insurers fall short of this mark in some way or another, so we think it’s important for consumers to understand which auto insurance companies they should avoid before purchasing a policy and which ones they should consider instead.
When it comes to finding the best auto insurance company and the ones to avoid, there are several factors that you should take into account. The type of car you own, your age and gender, where you live, and even your credit score can all play a role in determining which company will give you the best coverage at an affordable price.
With that said, here are some of the top auto insurance companies and some tips on how to avoid getting ripped off when buying a policy.
4 Best Auto Insurance Companies
From our research, USAA is the best auto insurance company. The research was based on customer reports, and it turned out that most customers were willing to renew their policies with the USAA insurance company. The customer’s level of satisfaction was high, seeing that they recommended the USAA insurance company to other drivers.
United States Automobile Association (USAA) is an insurance company established in 1922, and it’s available in all 50 states in America. USAA is available only to military personnel, veterans, and their family members. So if you want to join the USAA insurance and get car coverage, you will either be a member of the military (active or retired) or a qualified family member.
Types of Coverage USAA offers:
- Rideshare insurance
- Roadside assistance
- Uninsured and underinsured
- Rental reimbursement
There are 12 other car insurance discounts offered by USAA Company and the coverage listed above. USAA gives a discount for good students, low mileage, safe driving, and on completion of a defensive driving course successfully. There are also other discounts that are military-specific. You get an extra discount when you park on a military base or if your family has different policies with them and discounts for generous vehicle storage.
USAA also has good customer service, and you can easily get their agent to help you get a policy.
- They have an exceptional customer support
- They offer exclusive resources to the customers
- They also provide several investments and banking services.
- Their policy is limited to only military family
- You must be a member of USAA before you can purchase a policy, even if you are a military officer or family member
- Although they have good ratings, customers still complain about some of their services and policies.
2. AMICA MUTUAL
Amica mutual has no restriction for people to purchase their insurance policies, unlike USAA. You become a part-owner of the Amica mutual company once you purchase one of their policies. There are no shareholders here as what public companies are known for.
It is the oldest mutual auto insurance company in America and came out second on our list because of its policies and services, which are customer friendly. Amica Mutual operates in all the states in America except Hawaii.
Because it’s a mutual company, your first year as a customer is quite expensive. After your first year, you get an annual premium rebate which is equivalent to 20% of what you paid in the first year.
Types of Coverage Amica Mutual offers:
- Medical payments
- Personal injury protection
- Gap insurance
- Underinsured/uninsured motorist bodily injury and property damage
- Accident forgiveness
- Rewards for good driving
- Platinum Choice Auto
In addition to the coverage, they also offer discounts on loyalty, autopay, student away at school, teen driver training, defensive driving course, anti-theft devices, etc.
- Free replacement of airbag after it deploys
- High rate of customer satisfaction
- Replacement of lock in the case of stolen keys
- Operates in all of USA except Hawaii
- Not all of Amica Mutual’s policy is available nationwide
- No rideshare insurance
Visit Amica Mutual
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3. STATE FARM
State Farm is the number 3 best insurance company on our list because of its policy of putting their customer first. Due to its preferred services and policies for car drivers, people who cannot be a part of the USAA or Amica Mutual can choose this.
State Farm insurance is amongst the most affordable auto insurance provider. Its offers young drivers a discount for safe driving and a mobile app that tracks their driving habits. It is available in all the states in America.
Types of Coverage State Farm offers
- Uninsured or underinsured motorist coverage
- Bodily injury
- Property damage liability
- Rideshare driver coverage
- Emergency road service coverage
State Farm also offers discounts to its customers if they use the mobile app, drive safe, drivers under 25 without at-fault accidents, pass the defensive driving course, good student discount, good driving, install anti-theft devices in vehicles, etc.
- Available in all states in America
- Covers travel expenses
- Doesn’t offer accident forgiveness
- Doesn’t offer gap insurance
Visit State Farm
Geico is a popular and one of the most affordable choices for auto insurance. According to our research, Geico offers good services to its customers, a wide range of coverage, and affordable insurance rates. They offer discounts to drivers with no violations, and they have an app that manages their policies online and helps with filing claims and making quotes. Having a 24 hours customer service and an easy-to-use mobile app, Geico is a good option for anyone looking for the best auto insurance company.
Types of Coverage Geico offers:
- Bodily injury
- Property damage
- Medical payments
- Personal injury
- Comprehensive coverage
- Uninsured motorist
- Emergency road service
- Rental Reimbursement
In addition to this coverage, Geico also offers discounts to its drivers for installing anti-theft devices, good driver, using seat belts, defensive driving, good student, customer loyalty, military personnel, emergency deployment, passing the driver’s educational course, etc.
- Geico offers convenient insurance policies
- They offer affordable rates
- Benefits those who want to have multiple insurance policies
- Geico is not favorable to people with frequent car accidents
- It doesn’t offer gap insurance
3 Major Insurance Companies To Avoid
This is a big decision with potential repercussions. The last thing you want is to get burned by an auto insurer who treats their customers badly or operates underhanded business practices.
That’s why it’s important to research your options thoroughly before choosing the auto insurance company so as not to fall into the wrong companies. Based on customer reviews and analysis by leading consumer websites, here are some of the worst auto insurance companies to avoid.
Research has identified that Allstate does not put its customers first. The CEO Thomas Wilson states that Allstate’s “obligation is to earn a return for our shareholders.” It has been known since its inception in the mid-’90s to value profits over its policyholders. This disreputable act was made known to the public by American Association for Justice (AAJ) in 2008.
To illustrate how poorly Allstate insurance company treats their customers, CEO Wilson in 2019 received more than $16,300,000 compensation while most of their injured customers got little or nothing at all.
Allstate has also been criticized for its highly confusing policy language that makes policyholders believe they have certain coverage when in reality, their claims are denied. Most critics believe that the company wants to collect a premium from their customers and leave them believing that they have coverage only to find out the policy covers nothing when they face disaster.
Allstate makes of two strategies, one through a computer program Colossus used to evaluate claims. This computer program was designed to discourage accident victims with injuries sustained from car accidents from seeking legal aid, thereby reducing the number of payouts.
The second one is done through Allstate consulting company to convince customers to accept an extremely low payout offer. If a customer rejects accepting the extremely low payout offer, Allstate will deny the customer’s claim by all means. CNN named Allstate and some other companies in a bid to expose their disreputable attitude of denying customers’ claims.
All of this mentioned has made Allstate insurance company number 1 on our list of insurance companies to avoid.
This is an insurance company that was established to help disabled people. Research has shown that the company is against the people it is meant to protect. They are known for delaying and, most times, denying claims from their customers. The CEO McKenney Rick earns over $9.7 million yearly, while their disabled clients are left with unanswered claims. The media has investigated their company lots of times and ascertained the claims of UNUM Company abusing their client’s claims are true.
To further illustrate why this insurance company should be avoided. According to a file in Casetext.com, UNUM mistreated one of their employees, a woman who had a genuine case of sclerosis confirmed by a medical doctor. UNUM insisted that the woman came up with false claims about college money for coverage. This happened for over three years, and the insurance company only complied with the claims after she had gone to court to fight for her benefit. UNUM claims to put its customer’s interests first, but they do the opposite in reality.
For this reason, UNUM appears on the list of auto insurance companies to avoid.
AIG is the world’s largest insurance company and is known for maltreating its customers. This auto insurance company is only concerned with increasing its profit yearly. The CEO of AIG insurance company earns over $19 million yearly but doesn’t have the resources to settle their customer’s claims. The company has been charged with multi-billion-dollar crimes and is now labeled Enron.
AIG keeps looking for different means to increase its income, notwithstanding the numerous issues raised in both criminal and civil courts at the expense of their customers. It is noted that AIG is designed to deny coverage claims by creating unnecessary loopholes for the claimant to fall into and lose his claims.
When it comes to the law court, they are also known for not playing fairly, which has led to their lawyer being sanctioned over wrongful tactics in discovering claims and proceedings. The only way to receive your claim from AIG is to fight for it. So unless you are not a good fighter, avoid this insurance company.
The best auto insurance companies will save you money and provide excellent customer service and value for money. When choosing an auto insurance provider, you need to find the right balance between cost and quality. The wrong provider can cost you a lot more in the long run, with some insurers refusing to pay out on claims or forcing customers to spend hours on hold simply to make a claim.
Fortunately, we have made a list of the 4 best auto insurance companies and the ones to avoid. So if you’ve read this article to this extent, you would have decided on the best auto insurance company and stay far away from the ones listed above to avoid.