Money Magazine Rates Car Insurance Companies
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Money Magazine Rates Car Insurance Companies

| Dec 22, 2020 | Firm News |

For the majority of Americans, car insurance is a necessity. Without it, we would be exposed to the financial risks of collision, theft, or liability in the event of an at-fault accident. As a must-have, however, car insurance can be expensive and rates are expected to continue increasing in the near future.

At its core, car insurance is an investment of sorts — a safeguard against unwanted expenses. As a responsible driver, you’re likely interested in getting the right type and level of protection for yourself and your vehicle. At the same time, you might also be looking for the best way to save on premiums without compromising on coverage.

With car insurance, it’s usually standard procedure across the Internet to recommend the most affordable option. And yet, there is an argument to be made that paying more upfront can save a lot of time and money if the insurer is more likely to properly support you during a potential claim.

That said, in these difficult financial times, it’s all about balancing needs with expenses. That’s why we decided to prioritize — based on research — those companies that offered the most inexpensive rates while not sacrificing coverage, efficient claims processing, and customer service.

Amica Mutual stands out with its most robust car insurance package, Platinum Choice Auto. The package includes all the standard coverage options plus up to $5,000 for rental reimbursement with no daily limit, full glass coverage, and identity fraud monitoring. Perks that no other company offers include no-cost airbag replacement after it deploys, lock replacement in the event of stolen keys, $1,000 for bail bonds, and wage reimbursement if you’re required to appear in court.

Platinum Choice Auto also includes Advantage Points, a program where policyholders earn rewards for good driving, renewing policies, and referring others. Advantage Points can also reduce or even eliminate your deductible. It’s worth noting that some features vary by state.

Amica Mutual has the top spot in J.D. Power’s overall customer satisfaction index ranking. And with an A+ rating from A.M. Best, this mutual insurer is also on solid financial ground.

If you are ever in an accident, you can easily file a claim online, over the phone, or through Amica’s mobile app. The company offers a wide range of discounts that allow drivers to save up to 30% on their premiums.

3rd Party Ratings

A.M. BEST RATING
A+

JD POWER RATING
Highest Overall
State Farm
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State Farm offers great savings on standard policies and a selection of specialty policies few other companies can match. For example, if you own a classic automobile or a sports car, are a teen driver, or plan on renting a car, there’s a State Farm policy that’s tailor-made for your car insurance needs. The company also has programs designed to help drivers save. With their Drive Safe & Save program, drivers can pay up to 30% less after having their driving practices monitored and analyzed. Likewise, State Farm’s Steer Clear program lets drivers under 25 complete course training that may result in a reduced premium.

Another coverage option offered by State Farm caters specifically to rideshare drivers. As a driver for transportation network companies such as Uber and Lyft, you are covered by a company-provided basic car insurance policy. Unfortunately, that may not be enough to fully protect you. With rideshare coverage, however, drivers are protected with all standard coverages except liability while the rideshare app is open on their phone.

As the largest car insurer in the U.S., State Farm has an above-average customer satisfaction ranking of 878 with J.D. Power and a superior A++ rating from A.M. Best.

3rd Party Ratings

A.M. BEST RATING
A++

JD POWER RATING
Above Average
(878-1,000)
Farmers
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Farmers Insurance offers a broad range of discounts and other ways to save on car insurance premiums. For starters, those who offer essential services, such as doctors, nurses, firefighters, teachers, and police officers, are eligible for a premium reduction. There are also discounts for homeowners, good students, cars with airbags, drivers with 2+ vehicles, and teenagers whose parents have good driving records. Eligibility for these discounts and their size varies depending on your place of residence and other factors.

Farmers Insurance offers another way to save through its innovative Signal program, where the company monitors your driving through a mobile app. After ten safe trips, you’ll receive a 5% discount on your policy. Once you renew the auto policy, that discount may increase up to 15%, depending on the score calculated by the app.

Another way to pay a lower premium with Farmers is by raising your deductible. In some cases, depending on your state, you can raise your deductible as high as $2,500. That’s a higher deductible option than almost any other insurance carrier offers. And not only does Farmers allow you to buy a policy with a substantial deductible, they actively encourage it. Of course, in the event of a collision, you’ll have to pay more out-of-pocket, so make sure you have the resources to do so — and consider how much you drive and how accident-prone you are.

Farmers received an A- rating from A.M. Best and a high J.D. Power customer satisfaction ranking of 865 on a 1,000-point scale.

3rd Party Ratings

A.M. BEST RATING
A-

JD POWER RATING
High (865/1,000)
Travelers
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In five minutes or less, Travelers can give you a quote using basic personal and car information. You don’t even have to provide a driver’s license number. If you request your quote while you’re still insured with another company, you’ll receive up to a 10% discount.

Travelers also offers policyholders a chance to save money through its IntelliDrive program. If you agree to have your driving monitored for 90 days using a smartphone app, you could end up paying less in your policy’s first term. Upon renewal, if you completed the program safely, you may receive an additional discount of up to 20 percent.

Travelers offer all the standard car insurance policies required by state law, ranging from bodily injury liability and collision, to medical bill payments and comprehensive. In addition, the company also offers a long list of supplemental coverages which include roadside assistance and rental car coverage.

Travelers has a superior A++ rating from A.M. Best, and their J.D. Power overall customer satisfaction index ranking is 865 — based on a 1,000-point scale.

3rd Party Ratings

A.M. BEST RATING
A++

JD POWER RATING
High (865/1,000)
Progressive
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Progressive offers you the most control when it comes to how much you want to pay for your auto policy. It does this through its well-known Name Your Price tool, which neatly reverses the usual method of getting an insurance quote. You provide some basic information (address, vehicle make and model, owned or leased) and then state what you can spend. Progressive will then provide you with available policy options that may be within your budget. You can also compare their quotes to their competitors’ so you’re aware of other alternatives and their possible cost.

Another feature that’s geared toward helping drivers save is Progressive’s Loyalty Reward program, in which every policyholder is automatically enrolled. The program’s perks range from small accident forgiveness to bigger benefits such as continuous insurance discounts.

Progressive has garnered a J.D. Power overall customer satisfaction ranking of 856 (based on a 1,000-point scale), as well as a superior A+ rating from A.M. Best.

3rd Party Ratings

A.M. BEST RATING
A+

JD POWER RATING
High (865/1,000)
GEICO
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GEICO has a reputation for being one of the most affordable car insurance companies. Despite this, we’d encourage you to always shop around and compare rates. GEICO is also the second-largest car insurance provider in the United States. Despite their size, the National Association of Insurance Commissioners recorded fewer than 300 complaints against them in 2019 — a very low number. The national average Complaint Ratio for Private Passenger auto is 1.00; anything above that is considered high. GEICO has a ratio of 0.74, a very low number that speaks for itself.

Nationwide
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Nationwide offers its policyholders a free annual car insurance assessment called the On Your Side Review. Its purpose is to help policyholders further understand their policy and benefits, receive all applicable discounts, and make changes to their policies after major life events.

Liberty Mutual
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Like many other auto insurers, Liberty Mutual offers various discounts. Unlike the others, however, it doesn’t limit the number of discounts you may be eligible for. This feature may reduce your premium substantially. The company’s website also provides a useful tool in the form of a coverage calculator that may help point you in the right direction.

Allstate
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Allstate offers policyholders a chance to save on their premiums by driving safely with its Drivewise program, easily activated on their mobile app. Additionally, if you’re trying to understand the confusing ins and outs of car insurance, the company’s website provides drivers with a wealth of information, helpful articles, and videos. Allstate also has high social media responsiveness on platforms like Twitter, replying directly to users on weekends.

QuoteWizard
BEST COMPARISON TOOL
VIEW RATES
This is an excellent comparison tool if you want to see a variety of quotes from different providers, side by side. QuoteWizard also claims that the information they provide is geared toward helping drivers save on car insurance premiums. This tool might be most beneficial for drivers who want to double-check information from other sources before committing to one insurance company.

MOST & LEAST EXPENSIVE STATES FOR CAR INSURANCE
Most Expensive States for Car Insurance
AVERAGE ANNUAL EXPENDITURE
Louisiana
$1,443.72
Michigan
$1,358.62
Florida
$1,356.90
New Jersey
$1,350.28
New York
$1,349.72
D.C.
$1,334.11
Rhode Island
$1,300.60
Delaware
$1,221.29
Connecticut
$1,168.33
Maryland