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It’s not hard to find a list of the cheapest car insurance companies, but what if you’re looking for the best-rated car insurance companies? If you want to find a great insurance plan from a quality company with the best ratings, keep reading to know where to start.
Best-Rated Car Insurance Companies
Several factors come into play when it comes to deciding what makes a great car insurance company. For many, that means the lowest rates. Some drivers want the best coverage and benefits. But the best way to decide if a car insurance plan is going to be worth your time is to listen to the other customers who already tried them out for you.
Best Car Insurance Rates By Region
The J.D. Power 2021 U.S. Auto Insurance Study is a great way to measure customer happiness with their insurance providers. This study, which has been conducted for over 20 years, collected the opinions of just shy of 39,000 car insurance customers in early 2021 to see what they thought of their insurance company. The study was broken down into 11 regions and states. Look below to find your state or region to see which company was the best-rated where you live.
- California: Wawanesa, for a second consecutive year.
- Central: Shelter.
- Florida: State Farm.
- Mid-Atlantic: NJM Insurance Co.
- New England: Amica Mutual, for a ninth consecutive year.
- New York: State Farm, for a second consecutive year.
- North Central: Erie Insurance.
- Northwest: State Farm.
- Southeast: Farm Bureau Insurance – Tennessee, for a 10th consecutive year.
- Southwest: American Family, for a second consecutive year.
- Texas: Texas Farm Bureau, for a 10th consecutive year.
If you want to take a look at all of the best-rated options for your region or state, you can check out the breakdown for each in the study.
Best Car Insurance Rates Overall
According to ValuePenguin, the best-rated car insurance in the nation was State Farm. ValuePenguin also broke down the best car insurance companies into several subcategories:
- Company with the cheapest rates: Erie Insurance.
- Best company for drivers with accidents in their driver histories: Farm Bureau Insurance.
- Best company for drivers with bad credit: Nationwide.
- Best company for young drivers: Root.
- Best company for military families: USAA.
Though these car insurance companies are considered some of the best-rated in the nation, each driver’s experience is their own. The best car insurance company for one driver might not be the best option for another. Keep reading to get some guidance on how you can find the best car insurance for your situation and needs.
What Affects Your Car Insurance Rates
At the end of the day, there is not a single, one-size-fits-all car insurance to recommend to you. This is especially true when it comes to comparing rates from the best rated car insurance companies. There are quite a few factors that come into play when a car insurance company is deciding how much to charge you for your insurance. Let’s get into a few things that might affect your car insurance rates.
Younger drivers will pay more for car insurance on average than older drivers. Insurance companies consider a lack of experience a higher risk to insure than a driver with years of accident-free driving under their belt.
Your Vehicle’s Make and Model
The safer your vehicle is, the more likely it’ll cost less to insure it. Other factors include the age of your vehicle, your vehicle style, what style of vehicle it is, and so forth.
Drivers with spotless records will most likely be paying less for the same insurance plan than someone who has been in a few wrecks would pay. The more traffic violations and accidents a driver has been involved in, the more of a high-risk driver they’re considered to be.
Do you live in a place that has notoriously high rates of accidents and traffic injuries? You’ll probably pay more for insurance than someone in a different zip code or even the next city over.
These are just a few examples of the many factors car insurance companies are going to take into account when coming up with a policy rate for you. Other factors include your credit score, annual mileage, state requirements, and more.
Tips on How to Shop for Car Insurance
Familiarizing yourself with how insurance plans work is an important task you should take on before you start making inquiries. Below, you’ll find a few things to keep in mind as your search for your ideal car insurance, whether you’re signing up for your first plan or you want to switch to a better one.
Set Your Goals
Before you start shopping for your car insurance, think about what you want from your insurance company. Do you want a company that’s going to offer as many benefits as possible, such as roadside assistance, rental reimbursement, and so on? Are you looking for the best-rated car insurance company when it comes to customer support? Do you simply want the lowest rates possible? Once you know what you want from your insurance, you can start shopping around to compare quotes.
The quotes are key. When you ask for a quote on car insurance, you’re asking the company to estimate how much it’s going to charge you for the insurance plan you’re considering. These quotes are free. Though the companies check your credit report to create these quotes, the process doesn’t affect your credit score. Keeping this in mind, you should ask for as many quotes from as many companies as you need to make sure you have the best rate for the plan you’re looking for.
Know the Types of Plans
You’ll generally run into three primary types of car insurance plans while you shop: liability, collision, and comprehensive. Liability insurance helps you pay for the damages the other driver in a collision receives. Collision insurance helps you pay for the damages you receive during a collision. Comprehensive insurance helps you pay for the damages caused by bad luck, such as fire, hail, and theft.
Take a look at the blog section to keep learning everything you need to know about car insurance. With plenty of resources to educate yourself with, navigating through the sometimes confusing world of insurance can get much clearer.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.