With so many car insurance companies out there, finding the best car insurance can be overwhelming. Each company offers different coverage options, extras and discounts that can seriously impact your budget. Some insurers claim to offer the lowest rates in town, while others promise the best service. Insurance company ads always talk about great customer service and savings, but without evidence, you just want proof. To help you find the top car insurance providers nationwide, I’ve gathered data on customer satisfaction and average pricing from major companies.
Every car insurance company wants to claim they’re the best because they’re competing in one of the most competitive industries around. Some companies have higher claim approval rates and lower prices. Others have outstanding customer service with prices that might surprise you. Here’s what I found after digging into this for a week:
The biggest and most trusted providers – Most people know Allstate, Farmers, Nationwide, GMAC and other recognizable auto insurers. But here’s something interesting: your local hometown discount broker might actually be the best car insurance company in your area. Brokers work with many top auto insurance companies and often get better treatment from carriers. They don’t make much money, if any, from their services, but they know where customers are and how to get the best quotes and discounts.
Medical costs – Some car insurance plans make you pay 100% of medical costs from an accident, no matter who caused it. These policies cost way more than traditional ones because they completely ignore whether the other driver can pay. If you’re in an accident, regardless of fault, expect to get billed for medical costs and vehicle damage. If the accident wasn’t your fault, you shouldn’t have to pay these expenses yourself. Buy a policy that includes an accident benefits rider so you’re covered for all medical costs.
The right deductible – Every state sets limits on how much you pay out of pocket before your insurer covers the rest. Your deductible is what you pay first, before insurance kicks in for the remaining costs. Some states cap your deductible amount, while others let you raise it to keep premiums down. Learn your state’s laws and pick a policy with the smallest deductible you can afford.
The best car insurance company – After an accident, your insurance company should send you a check covering what they paid for medical bills and other damages. You need to know what those costs will be before signing anything. Ask each company how long you have to file an accident claim before they start making payments. Make sure your company gives you at least twelve months for accident benefits, since that’s typically how long you must wait before filing a car insurance claim.
The cheapest car insurance company – When comparing rates, don’t just look at the lowest price. Cheapest might not mean best, especially if your insurer doesn’t actually give you a good rate. The cheapest car insurance company might not offer you proper coverage at all. Focus on choosing a highly rated insurer with years of experience and a solid track record.
Another factor in car insurance rates is your deductible amount. When you consider the cost of replacing another car after an accident, you might save money overall. If you raise your deductible, though, you’ll pay more money long-term. Before making this decision, read your auto policy details carefully to make sure raising your deductible won’t actually increase your overall rate. If you can save money in the end, it might be worth considering.