Top 10 Best Auto Insurance Companies in USA
How do you know which auto insurance companies are truly the best? In order to find the best auto insurance companies in the United States, you need to first define what makes an auto insurance company the best. One of the main factors in determining this ranking is customer satisfaction, and that’s why J.D. Power is so highly regarded as a source of industry research and analysis. To create our list of top 10 best auto insurance companies in the United States, we looked at customer satisfaction surveys from J.D.
#1 - Allstate
The Allstate Corporation, or Allstate as it is commonly known, is an insurance company based in Northbrook, Illinois. Founded in 1931 by Leonard L. Berry and friends John Lewis and Maurice L. Nichols, Allstate has grown to become one of America's biggest auto insurance companies. #2 - State Farm: State Farm Mutual Automobile Insurance Company was founded by retired farmer George Mecherle with $US4 million dollars he borrowed from his former employer, a Sears-Roebuck distributor. The first State Farm office opened for business on May 22nd 1922.
#2 - State Farm
State Farm is an American mutual auto insurance company headquartered in Bloomington, Illinois. The company also sells life insurance and home insurance. As of September 2013, State Farm had over 26 million customers globally and is a member of both Fortune 500 and S&P 500 stock market indexes. It is ranked 44th on Fortune magazine's list of largest corporations by revenue.
#3 - Farmers
One of America’s largest auto insurance companies, Farmers Insurance has deep ties to agriculture. The company was started in 1928 by a group of farmers who wanted to help each other with their crops and lives. Since then, it has grown significantly and now works with 25 million people, providing insurance for their cars, homes and businesses. When working with Farmers, customers can choose between deductibles of $100 and $1000. They also offer several discounts if your car is stolen or damaged by weather-related events.
#4 - Liberty Mutual
Liberty Mutual boasts a market share of over 8 percent, making it one of America’s largest auto insurance companies. A subsidiary of Liberty Mutual Group, it also owns and operates other brands like Safeco and Holliday Fenoglio Fowler (HFF). Liberty Mutual is famous for its presence at motorsports events such as IndyCar races and off-road competitions. It has pioneered many auto-related innovations that have been embraced by the industry and consumers alike, some examples being Snapshot technology which helps keep rates low and AutoPay which allows you to pay your premiums automatically from your bank account. The company has been voted among America’s best employers by Forbes Magazine consecutively for four years now!
#5 - USAA
If you are an active or retired member of a branch of the US military, or an immediate family member, you should definitely check out USAA. Based on customer service and overall financial strength, USAA consistently ranks near or at the top when it comes to auto insurance companies in terms of value and service. Their coverage is broad and varied for your cars, motorcycles, boats, recreational vehicles and much more. In addition to offering a broad spectrum of insurance coverage options for your vehicles (automobile), they also provide additional personal lines coverage for your homes (residential), as well as commercial automobile insurance that can be purchased separately from their auto policies. It’s not surprising that USAA scores highly with J.D.
#6 - Erie Insurance Group
Erie Insurance Group ranks as one of America’s most trusted auto insurance companies, not to mention a top performer overall. The company boasts more than 50 years of experience and serves more than four million customers across 14 states. Erie is also known for its remarkable claims-handling ability, but we were also especially impressed by its solid performance with low-mileage drivers: 47 percent received discounts ranging from 5 to 15 percent! Overall we were pretty pleased with Erie’s average combined J.D. Power & Associates rating for price satisfaction, customer service satisfaction and agent courtesy and frequency of claims handling; unfortunately, it did score at or below average on our other major criteria: financial stability and rating quality.
#7 - Travelers
Founded in 1897, Travelers is one of the largest auto insurance companies. It has more than a million customers and was named among America’s most-admired companies by Fortune magazine for 2011. For its part, Fortune called Travelers one of America’s best-run companies. (Travelers ranked number 14 on our list.) Travelers had strong financials when we looked at it last year; we were impressed with its A+ credit rating from Standard & Poor’s and other financial data that showed shareholders were enjoying above-average returns. Its stock also received high marks from investors who are surveyed by Zacks Investment Research as part of their stock screen software that monitors investments using certain criteria to find better stocks to buy.
#8 - Nationwide
We talked about Nationwide before, and there’s a reason it’s repeated here: at more than 10 million customers, it's one of America's biggest auto insurance companies. It’s also one of its most popular. The average J.D. Power rating for Nationwide is 4 out of 5 stars. A few key factors make Nationwide stand out when compared to other top auto insurance companies: Strong claims handling process; Good communication with customers; and Above-average car insurance discounts offered to customers who have been with them for three years or longer. Each point above helps drive its high customer satisfaction ratings across all demographics and markets studied by J.D. Power.
#9 - Esurance
Esurance has a great reputation when it comes to service, and that’s what makes them one of our favorite auto insurance companies. They’re available via phone 24/7, 365 days a year; they provide discounts for bundling other insurance coverages with your auto policy; and they offer cheap rates (sometimes up to 50% less than their competitors). Since 2005, Esurance has been helping their customers save money on their car insurance while providing them with reliable customer service. If you choose Esurance as your company for auto insurance, you can rest assured knowing that you are dealing with an experienced company that knows how to protect their customers from losses and also make sure they receive fair rates for what they pay. Even better?
#10 - Mercury General
Established in 1938, Mercury is one of America’s largest auto insurance companies. In addition to auto insurance, they also offer home, life and commercial lines of insurance. Their company headquarters are located in Irvine, California and they have more than $16 billion assets under management. They are a subsidiary of Mercury Insurance Group Holdings. Mercury has an A+ rating with A.M. Best Company for financial strength.