INSURANCE: Top 6 Car Insurance Companies of 2020

Reliable Car insurance is a necessity to keep yourself safe financially in the event that you have to file a claim. It has the potential to save you thousands of dollars in exchange for a small monthly premium. However, car insurance companies must do more than tote affordable coverage to keep up with the demands of consumers. Today’s best auto insurance companies must have high customer satisfaction scores, a straightforward claims process and better accessibility such as tools like smartphone apps.

We’ve analyzed recent reports from J.D. Power, AM Best, Consumer Reports, the Better Business Bureau (BBB) and the National Association of Insurance Commissioners (NAIC) to bring you the top car insurance companies.

PICKS FOR THE BEST CAR INSURANCE COMPANIES

  • Best overall: Amica Mutual
  • Best for customer service and interaction: State Farm
  • Best for discounts: Progressive
  • Best policy options: The Hartford
  • Best for tech-savvy consumers: Geico
  • Best for members of the military: USAA

AMICA MUTUAL

This is the best overall car insurance company. Amica was the strongest company overall in our research and received the highest rating in the New England region in J.D. Power’s 2019 customer satisfaction report. The insurer also received the highest Consumer Reports rating among auto insurance providers — as it has every year since at least 1999. Consumer Reports noted that an overwhelming number of customers reported “relatively few” problems during the claims process.

ProsCons
A high J.D. Power satisfaction ratingFewer driver discount opportunities
High financial stability ratingsFew online resources
No repair facility restrictions
“Platinum Choice” coverage
Best array of coverage options
Discounts on multi-line and multi-auto policies

STATE FARM

This is the best for customer service and interaction. State Farm is the largest car insurance company in the nation, per the Insurance Information Institute in 2019. Fortunately, it’s also one of the best — especially when it comes to the customer service experience. In 2019, State Farm received high praise from J.D. Power for its service interaction and claims handling. And of all the insured drivers we surveyed, it received the most positive remarks by far.

It is incredibly easy to get in touch with State Farm. You can call one of the company’s 19,000 agents, go online or even send a picture of your damaged car with your smartphone using the State Farm mobile app. Compare that to Amica, which doesn’t allow you to connect with an agent via an app or file a claim through an agent.

State Farm also gets high marks for a pain-free shopping experience that lets prospective customers call their local agent or chat with a representative online if they have any questions.

ProsCons
Superior claims handlingMissing a few common driver discounts
Great financial standingLacks a couple of important coverages
Best online quote tool

PROGRESSIVE

This is the best for discounts. Progressive is the fourth-largest auto insurer in the U.S. and offers an impressive array of discounts and special coverages that could significantly reduce your monthly bill. For example, the Snapshot tool allows Progressive to base your rate on your driving habits. Progressive also earned an “A+ Superior” stability rating from AM Best, so the company is on solid financial footing to cover any claims.

ProsCons
Pet injury coverageRoom for improvement
Widely available discount options
Solid consumer experience

THE HARTFORD

This is the best policy option. The Hartford is only the nation’s 13th largest insurer, but it still packs a punch. It offers a wide range of policy options and benefits, including rates based on how much you actually drive your car and a new car replacement program for cars totaled shortly after purchase.

ProsCons
Mechanical breakdown coverageMerely average claims satisfaction
Useful policy benefitsFewest online educational resources
Excellent purchase experience

GEICO

This is the best for tech-savvy consumers.

We’ve all seen the ads: The gecko with the charming accent, the cavemen, the “wee” piggy and that camel who loves Wednesdays. Catchy advertising aside, what makes Geico stand out from its competitors? Like most car insurance companies, Geico advertises low rates (“15 minutes could save you 15 percent or more on your car insurance”). But what else?

According to J.D. Power’s 2019 U.S. Insurance Shopping Study, “The last decade of seemingly non-stop direct-to-consumer advertising and heavy investment into digital self-service technologies have driven roughly one-fourth of auto insurance customers to adopt direct distribution models that bypass agents in favor of do-it-yourself tools.” Geico’s response to this seems to be its very popular mobile app.

Geico is the second-largest car insurance provider in the United States. While it’s considered second-tier by Consumer Reports (listed under parent company Berkshire Hathaway Insurance Group), customers rate Geico high in the categories of ease of reaching an agent, promptness of response, agent courtesy and timely payment.Not bad in terms of customer service.

ProsCons
Superior mobile appDoesn’t offer gap insurance
Good number of discountsPredominantly digital experience

USAA

This is the best for members of the military.

Throughout our research, we found that USAA’s stellar reputation holds true. If you’re a member of the U.S. Armed Forces or you’re related to one, there is no better option. USAA is one of the three highest-rated automotive insurers in the country.

The only downside is its limited availability: Only active service members, veterans, and their families are eligible. Given those restrictions, the quote process is a bit more intense compared with its competitors, but that’s a small price to pay for its exemplary service.

ProsCons
Flawless purchase experienceMembership restrictions
Solid financial stabilityMissing three key vehicle coverages
Predominantly digital experience

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