The Best Auto Insurance Companies for 2021 [Expert's Choice]

We researched and rated the top 20+ Car Insurance Companies, in detail, so you don’t have to.

Hi, I’m Tony Arevalo, I’ve worked for years as an insurance agent. Through my experience I’ve realized the difficultness and hesitations clients have in making a decision on the best car insurance for them. My team and I have taken the time to do in depth research on top Auto Insurance Companies available in the Market, so you don’t have to.

Our goal is to find the right company for you and make it simple and easy to get connected with them. You can rest assured that you’ll be able to choose a quality insurance provider.

The Evaluation Method We Used to Determine These Scores

There are many factors that go into determining which is the best insurance provider. We categorized and prioritized them based on the following:

Each companies rank is based on scores from these categories:

-We generated quotes from each carrier on the list of car insurance companies and used a ratio of the price to the national average cost in order to score the company.

-National Association of Insurance Commissioners: NAIC consumer complaint ratio

J.D. Power’s Customer Claims Satisfaction Score: this score is based on over 11,000 customer surveys on these companies’ claims processes.

J.D. Power’s Insurance Shopping Study Score: this score is based on a survey of over 15,000 recent purchasers of insurance with categories that include policy offerings, the insurer’s website, call center representatives, etc.

The Best Car Insurance Companies of 2021

1. Amica – Customized Policies Based on Your Budget and Coverage NeedsAmica Mutual Car Insurance Logo

Based in Lincoln, Rhode Island, Amica is one of the oldest car insurance companies in the US. Unlike other insurance companies, this company isn’t owned by businessmen. Instead, it’s a mutual company—the owners are customers who chose to purchase a dividend policy.  

Although Amica is not one of the biggest car insurance companies around, they are certainly the highest consumer rated, based on our research. They offer policies that you can fully customize according to your budget and coverage needs. Amica car insurance policyholders are entitled to a myriad of additional features at no extra cost.

Who is Amica best for?

Amica is best for people who are looking for one company that can provide all their insurance needs and offer various opportunities for them to save money. Amica is also an excellent choice for those who are looking to purchase dividend policies that can provide financial returns in the long run.

  • Fully customizable car insurance policy based on your budget and desired coverage
  • Discounts available for those who sign up and pay online
  • Highest-ranking company in overall customer satisfaction in the J.D. Power 2019 US Auto Claims Satisfaction Study
  • Getting an official quote can be tiresome it takes more time than average to go through the online quoting process
  • Lacks some crucial driver discounts
  • Lacks online resources offering information about their products, requiring customers to call an Amica agent if they have policy questions

Read Our Expert Review of Amica Mutual Auto Insurance

2. Erie Insurance – The Best Car Insurance Company in the Mid-AtlanticErie Auto Insurance Logo

Erie Insurance is another company that’s highly rated for their excellent coverage options. They offer excellent rates, a wide variety of coverage options to choose from, and top-notch customer service. Erie Insurance offers a ton of extras with their auto policy. Some are built in, which means you won’t have to pay an additional fee to take advantage of them. Meanwhile, others can be added on to your coverage for a minimal fee.

What sets this company apart from the others is the fact that all transactions—including claims—go through their agents. This means you’ll only be dealing with one person from the moment you request a quote up until you need to make a claim. No more having to repeat yourself over and over, because only one person will be handling your account.

The best thing about getting a car insurance policy from this company is the ERIE Rate Lock feature. This feature guarantees policyholders will be protected from hikes in their car insurance rates when they renew their policy, year after year. In short, they’ll pay the same premium they were first quoted, even if it’s already their fifth year in, as long as they didn’t add any additional policy features.

Who is Erie best for?

Erie is best for people who want a more personalized service since all transactions are handled by an agent. You won’t have to call a hotline and get transferred from one department to another if you have a concern that needs to be addressed. All you need to do is to get in touch with your agent, and they will take care of everything for you

This company is the best car insurance for those who don’t expect to change their vehicles or drivers for the next couple of years because they’ll be able to take advantage of the ERIE Rate Lock.

  • ERIE Rate Lock®
  • Competitive rates
  • Offers discounted rates of up to 30%, depending on your state
  • Limited coverage area
  • No option to apply for or manage your policy online

Read Our Expert Review of Erie Auto Insurance.

3. Auto-Owners Insurance – Award-Winning Claims ExperienceAuto-Owners Insurance Logo

Auto-Owners Insurance is a Fortune 500 company that was founded in 1916 in Mt. Pleasant, Michigan, but relocated to Lansing in 1917. This company has won numerous awards over the years, including the J.D. Power and Associates Highest in Customer Satisfaction with the Claims Experience Award for three consecutive years from 2008 to 2010. To this day, Auto-Owners Insurance is still considered one of the top car insurance companies in the US based on their stellar customer service, quick and easy claims process, and affordable car insurance premiums.

Like Erie Insurance, all transactions done with Auto-Owners are sent through their agents. Many consider this a plus point because the person they’ll be dealing with is familiar with their account. However, those who are more comfortable with handling their policies online may not be too happy that they have to call their insurance agent each time they need to change something in their account.

This company aims to pay what they owe in the quickest possible time, which is why they have a 24-hour claims hotline you can call anytime to follow up on your claim. They also have an online portal where you can check the status of your claim anytime.

Who is Auto-Owners best for?

Auto-Owners is the best car insurance for those who like to build long-term personal relationships with their insurance agents. It’s also good for people who aren’t risk takers when it comes to trying out new insurance companies, as Auto-Owners has been around for a very long time and is considered one of the most stable insurance companies in the US.

  • Affordable rates
  • Offers various discounts
  • Personalized service
  • Has seven disaster teams around the country who are ready to help policyholders in the event of a catastrophic natural disaster
  • Only available in 26 states
  • It is impossible to get a quote online; you need to call an agent to get one

Read Our Expert Review of Auto-Owners Car Insurance

Best Car Insurance for Millenials

1. Geico Insurance – Affordable Rates with a Feature-Packed Mobile AppGeico Auto Insurance Logo

Geico is the best car insurance company to get a policy from if you’re looking for one that offers affordability and accessibility altogether. In this day and age, one of the things that millennials look for when they are trying to decide on a particular service is accessibility. This means they will most likely go with the company that offers the most convenience, as in accessibility through the internet. Geico meets these criteria to a T.    

Geico’s website is one of the best around. Through the site, you can request a quote through their free car insurance estimator, make adjustments, pay for your policy, file a claim, etc. They even have a dedicated portal for policyholders. Meanwhile, their mobile app is unbeatable. It is jam-packed with features, such as a payment portal and access to almost all your account details—which means you can take care of your car insurance issues even when you’re on the go.

Who is Geico best for?

Geico is perfect for individuals looking for a company that can provide them with affordable rates and easy online access. It is also one of the best car insurance options for those who are over 50 because of their Prime Time Contract feature.

This feature is especially designed for those who are over 50 years old and may have trouble renewing with their previous insurance company because they’re considered high-risk due to multiple traffic tickets. With Prime Time Contract, these individuals can continue to renew their policy as long as they stay with Geico.

  • Affordable rates
  • Ease of accessibility through their mobile app
  • Prime Time Contract feature
  • Offers a multitude of discounts
  • Young drivers with a record of past vehicular accidents may have a higher premium
  • All transactions will have to be done online or through their 24-hour hotline

Read Our Expert Review of Geico Auto Insurance

2. Progressive – Average Rates with Opportunities to Lower Your Premium FurtherProgressive Insurance Logo

What sets Progressive apart is their ability to offer very affordable prices to drivers with a record of past accidents. Progressive is probably the best company to purchase a policy from if you have a record of past accidents and can’t afford to pay a high premium. Compared to what their competitors offer drivers in this predicament, Progressive’s auto insurance rate is significantly lower.

Another thing that makes Progressive stand out is their Snapshot program. This program gives drivers the opportunity to lower their premiums if they exhibit safe driving habits. The policyholder’s driving behavior will be monitored through a device that can be plugged into your car’s diagnostic port. You can also just download the mobile app to your smartphone, and it can monitor your driving habits.

Progressive Insurance has been given an A+ grade by A.M. Best Rating Services. This means the company is in great financial health and policyholders need not worry about the company going bankrupt. 

Who is Progressive best for?

Progressive is the best car insurance for drivers who have a history of being involved in a car accident. While most insurance companies will quote these types of drivers with high premiums, Progressive is a little more forgiving. Based on our research, their quotes are over 40% lower than the average quote of all companies reviewed.

  • Great for drivers with a history of being involved in a car accident
  • Snapshot program
  • Offers comprehensive policies and discounts
  • Average ratings in customer service
  • Average ratings in claims process

Read Our Expert Review of Progressive Auto Insurance

Best for Auto Insurance Retirees

The Hartford AARP® Auto Insurance ProgramThe Hartford Car Insurance Logo

Hartford is one of the very few insurance companies in the US to offer a policy program that is especially tailored to drivers over 50 and retirees. There are a few qualifications an individual needs to meet before he or she can be part of the AARP insurance program. Here is the list of criteria you need to meet in order to qualify for the program:

  • Must be 50 years old and above
  • A valid driver’s license in the state where you live
  • The vehicle registration for the car or cars you drive
Discounts Offered

If you’re one to compare car insurance rates, don’t forget to count the discounts. Hartford offers various discounts car owners can take advantage of, such as Safe Vehicle and Driver Training discounts. If your car is equipped with anti-theft devices and an airbag, you will be entitled to the Safe Vehicle discount. If you drive a hybrid or an electric vehicle, you can take advantage of their Vehicle Fuel Type discount too.

  • Offers lifetime renewal eligibility
  • One-year lock-in on your low premium
  • High customer service rating
  • Limited to AARP members over 50 years old
  • Complaint ratio higher than average

Read Our Review of The Hartford (AARP) Auto Insurance

Best for Military Servicemen


USAA Auto Insurance Logo If you are member of the military or if your spouse is or was, USAA is the best car insurance company for you. This company is one of the three highest-rated insurance companies in the US. However, you need to be a USAA member before you can take advantage of their exemplary products and services.
To become a USAA member, you must be any one of the following:

  • An active military member
  • A retired military member
  • A widow, widower, or child of a USAA member
  • A cadet or midshipman
Discounts Offered

USAA’s discount offerings are the same as you would get from other insurance companies. You can take advantage of their multi-policy discounts, anti-theft equipment discounts, multi-vehicle discounts, and more. You may also qualify for additional discounts if you are proven to be a safe driver or have taken a defensive driving course.

  • Offers excellent car insurance prices, especially for young drivers.
  • Additional discounts and VIP services are available for members on active duty
  • Only available for individuals who are qualified to become USAA members

Read Our Expert Review of USAA Auto Insurance

Best for Car Insurance for Customer Service

State FarmState Farm Auto Insurance Logo

State Farm is the biggest car insurance company in the US. While they are not known to offer the most affordable rates, they have some of the highest ratings when it comes to their customer service. They have thousands of agents around the country and are always ready to cater to the needs of their policyholders, as well as to those who are shopping around. So while they may not be the cheapest auto insurance company, the personalized customer service they provide all of their customers more than makes up for it.

State Farm has been given an A++ rating by A.M. Best for their financial stability. This is the highest rating an insurance company can receive from A.M. Best. Policyholders can be assured that they will receive their payout once their claim is approved.

Who is State Farm best for?

State Farm is one of the best car insurance companies for people looking for one that can provide them with excellent customer service. Since the company offers a wide range of insurance products, it’s also best for those who have different needs but would prefer to stick to one company. However, it’s important to note that State Farm’s rates are a little more expensive than its competitors.

  • Excellent customer service
  • Offers multiple lines of insurance coverage
  • Rates are higher than other insurance companies
  • Discounts are subject to approval

Read Our Expert Review of State Farm Auto Insurance

Other Companies Worth Looking Into

1. EsuranceEsurance Logo

Esurance does not always look good on paper. However, if you take a closer look at what the company can offer, you’ll see that they’re definitely worth considering if you’re looking for the best auto insurance company to get a policy from.

While they don’t exactly offer rock-bottom prices for their insurance policies, you have the opportunity to lower your premium with their excellent discounts. They have almost every type of discount offered by most companies, and then some. Some of the discounts that are exclusive to Esurance are the following:

  • Switch & Save: You have to be insured by another company at the time you purchase your policy from Esurance to qualify for this discount. The discount entitles you to 5% off of your Esurance policy up until your second year of renewal.
  • Fast 5: This is the easiest discount program to qualify for. All you need to do is request your auto insurance quote online, and you’ll automatically get a 5% discount on your policy’s premium. However, you can only take advantage of this discount once. The discount will go away when you renew your coverage.
  • Pac-12 Discount: This discount program is only available for students and alumni of Pac-12 schools who are living in Arizona, Colorado, Oregon, and Utah. If you qualify for this program, you will be entitled to up to a 15% percent discount on your policy.
Who is Esurance best For?

Esurance is one of the best car insurance companies for those who want to manage their policies though a mobile app. It is also best for those looking to make a switch and are shopping around for an insurance company that can give them the best rates.

  • Offers excellent discount programs
  • A+ A.M. Best rating
  • Very useful mobile app
  • No in-person customer service
  • Their basic rates are a little higher than competitors

Check Our Expert Review of Esurance Auto Insurance. 

2. Liberty Mutual Liberty Mutual Insurance Logo

Based on the data from 2017, Liberty Mutual is the sixth largest auto insurance company in the US. This company is an excellent choice if you are looking for an insurance company that has features like accident forgiveness. Should you encounter an accident, this company is connected to a network of auto repair shops. All you need to do is bring your car to any one of these sites, and you get a lifetime repair guarantee.

It is very easy to get in touch with Liberty Mutual. They have a comprehensive website, a very useful app, and local agents who are always ready to help.

Who is Liberty Mutual best For?

Liberty Mutual car insurance is best for people who are interested in bundling their car insurance with their other coverage needs, like home, renters, or condo. Through Liberty Mutual’s bundles, they will be able to enjoy significant savings.

Liberty is also suitable for those who like to handle their policies on their own through online tools.

  • Transparent rates and discounts
  • Fully functional online portal
  • Great mobile app
  • Rates are on par with competitors
  • Almost all transactions will have to be done through their online portal

Check Our Expert Review of Liberty Mutual Auto Insurance.

3. Allstate

Allstate Car Insurance Logo

Based on our research, Allstate offers various discounts and features with their policies. However, they aren’t very popular among those shopping for affordable car insurance simply because their rates are higher than the best rated car insurance companies in the US. Why, then, did we include this company on our list?

First of all, Allstate is the third largest insurance company in the US, and it is rated as A+ by A.M. Best for financial stability. Next, it is J.D. Power rated for overall satisfaction in 2019. Last, they offer excellent discounts and features with their policies.

Who is Allstate best for?

Allstate is one of the best companies for people who prefer a personal service and don’t mind paying a premium for it.

  • Personalized customer service through local agents
  • Great discounts
  • Rates are very high
  • No option to maintain your account online or through a mobile app

Read Our Expert Review of Allstate Auto Insurance

4. AAA Auto InsuranceAAA Auto Insurance Logo

To take advantage of AAA’s affordable car insurance offerings, you will first need to be a member of the AAA Auto Club. The club is a federation of automotive clubs all around the US. They offer numerous benefits to their members, including roadside assistance and various discounts, not to mention their very affordable policies.

First, though, you have to become a AAA member, which is something to keep in mind when you’re shopping around and comparing car insurance prices. You can start the process by visiting their website and entering your ZIP code. You will then be directed to the local club in your area, where you’ll be able to choose what type of membership you’d like to sign up for.

AAA memberships come in three tiers: Classic, AAA Plus, and AAA Premier. They’re priced differently and come with different sets of benefits. If you’re wondering if becoming a member is worth it, the simple answer is yes, it definitely is! The federation also has tie ups with various insurance companies all over the country, and members can take advantage of lower premiums, which are exclusive to AAA members.

However, it’s important to keep in mind that rates and discounts vary by state.

Who is AAA best for?

AAA Auto will be the best car insurance for those who are already AAA members or are looking to become one. It’s also good for those who frequently travel because it comes with roadside assistance, emergency fuel delivery, flat tire service, and much more.

  • Unbeatable rates
  • Extra member benefits
  • Variety of discounts members can take advantage of
  • Policyholder savings dividend (2017’s average dividend was $182)
  • Must be a member before purchasing a policy
  • Limited coverage


  • Profession
  • Multi-Policy
  • Loyalty
  • Good Driver
  • Good Student
  • Driver Training
  • Car Club

Read Our Expert Review of AAA Car Insurance

5. American Family InsuranceAmerican Family Auto Insurance Logo

While American Family is more popular for their home insurance offerings, their car insurance is also worth the spotlight. Whether you choose their basic coverage or their ride-share driver policy, you’ll find they have almost everything you need in their coverage. American Family also offers the most comprehensive list of discount opportunities out of all the car insurance companies in the US.

American Family is the ninth largest insurance company in the US. Despite this, they have received significantly fewer customer complaints compared to the larger companies on the list. They’ve received a grade of A from A.M. Best for their financial stability.

Who is American Family best for?

If you’re looking for a policy where you can include your teenage children in your coverage without having to pay an arm and a leg, American Family is the best car insurance for you. It’s also good for those looking to bundle their auto and home insurance policies.

  • Unbeatable discounts
  • Affordable rates
  • Offers Teen Safe Driver discount
  • Has a very useful mobile app
  • Only available in 19 states
  • It takes some time before you can receive a quote, as the company underwrites policies in-house

Read Our Expert of American Family Auto Insurance

6. MetLife Car InsuranceMetLife Auto Insurance Logo

Metlife is a pretty solid company in terms of the car insurance coverage offered. The good thing about this company is the fact that they offer unique savings opportunities and exclusive features for their policyholders. This is especially true if you are part of an organization or labor union that has a deal with MetLife, because the company offers group-based discounts that can slash as much as 50% off your premium. However, their rates are nothing to write home about. If anything, when you compare their car insurance rates to their competitors, they’re just average.

Who is MetLife best for?

MetLife is a good option all around if you are more interested in the amount of coverage their insurance policies offer and the special features you can take advantage of. However, if you are looking to enjoy a substantial amount in savings, we highly recommend that you shop around for quotes some more to see if you can get a better deal.

Nonetheless, if you are looking for an insurance company that can give you very attractive group-based discounts for members of your organization, you won’t find a good car insurance company that can give you a better deal than MetLife.

  • Very attractive group-based discount packages
  • Offers decent coverage and special features in their policy
  • Offers discounts policyholders can easily take advantage of
  • Rates for individual customers are even with its competitors
  • Customer service rating is a little below average
  • Their online quote feature can be a little difficult to use

Read Our Expert Review of MetLife Car Insurance

7. NationwideNationwide auto insurance logo

Nationwide has been in business for over 85 years and is one of the biggest insurance and financial service companies in the world. They’re most popular for their car insurance policies, but they also offer other insurance products you can take advantage of if you’re looking for a company to handle all your insurance needs.

The biggest downside to this company, however, is their customer service. When conducting research for our auto insurance reviews, we found that communicating with their insurance agents and customer service representatives can be cumbersome. Their customer service representatives often give inconsistent answers for concerns related to customer policies, claims, and even matters related to the quote an interested party has received.

We also found that while their records are updated, they were uncoordinated, which is probably why Nationwide agents and customer service representatives often give conflicting answers. This is somewhat disappointing considering that Nationwide’s motto is “On your side”—a mentality aimed at keeping their customers informed and happy.

Who is Nationwide best for?

Despite the fact that this company’s customer service is below average, they’re still a car insurance company worth looking into because they offer very decent coverage. If you are someone who likes to keep tabs on your car while it’s being repaired at the shop, you’ll enjoy Nationwide’s AutoWatch online feature. Through this, you’ll be able to monitor your car’s progress while it’s in the shop and even see photos of your car as it’s fixed.

  • Comprehensive insurance coverage
  • Has a network of auto body shops
  • AutoWatch feature provides peace of mind
  • Customer service is below average

Read Our Expert Review of Nationwide Auto Insurance

8. Travelers Car InsuranceTravelers car Insurance Logo

Travelers is one of the good car insurance companies to purchase an insurance policy from if you’re a new driver or if you’ve just purchased a new car. While their rates are only comparable to their competitors, what sets them apart are the numerous discounts you can unlock if you choose to buy a policy from them.

The Travelers Intellidrive is a discount program that’s exclusive for policyholders. It is a voluntary program that’s very suitable for those who have great driving habits. You can take advantage of as much as 20% off your annual insurance premium if you are proven to exhibit good driving habits.

Who is Travelers best for?

If you’re willing to partake in their discount programs, Travelers is the best company for you. Otherwise, you may have to shop around and compare car insurance prices some more to ensure you’ll be getting the best deal for your car insurance. It is also a great choice for those who just purchased a new vehicle because it offers some excellent accident forgiveness plans.

  • Offers numerous money-saving opportunities
  • Has an A++ rating from A.M. Best based on financial stability
  • Slow claims process
  • Average customer service

Read Our Expert Review of Travelers Auto Insurance

9. Hanover Insurance The Hanover car insurance logo

Based on our research, Hanover’s policies are generally higher than their competitors in some states in the US. However, this company is one of the most established insurance providers in America. As such, you can rest assured that you’ll be in good hands if you choose to purchase your insurance policy from them. This makes them worth getting a quote from to add to your car insurance comparison table.

Who is Hanover best for?

Hanover does not cater to a specific driver demographic. They’re best for most people looking for an insurance policy that covers all the bases. It is also best for pet owners—if your pet is injured during a car accident, your policy will cover their veterinary expenses, as well as reimburse funeral costs in case of death.

  • Offers Home Care Services, which helps if a policyholder was injured during a car accident and needs help at home while recuperating
  • Offers the standard set of discounts
  • There have been reports of policies getting interrupted because Hanover’s premium payment processing is delayed
  • Low customer service scores.

Check Our Review of Hanover Auto Insurance

10. Safeco Safeco Auto Insurance Logo

A subsidy of the Liberty Mutual group, Safeco was founded in 1923, and today it’s the fifth largest insurance provider in the country. If you’re looking for free car insurance quotes, this company has over 9,000 agents across the US who can provide them. Aside from their agents, they also have a 24-hour claims hotline that’s manned by friendly and competent customer service representatives.

If you choose to purchase your policy from Safeco, you won’t ever have to worry about the company’s financial stability. It’s very stable all on its own, but the fact that it is backed by the Liberty Mutual group ensures that you’ll be putting your money on the most reliable insurance company around.

Safeco doesn’t offer the most affordable rates, but if you are able to unlock their discount offerings, you will see that you can still enjoy some savings.

Who is Safeco best for?

Safeco Insurance is the best car insurance for those who don’t really drive their cars too much, or drive less than 8,000 miles per year, because you can take advantage of their low-mileage discount. It’s also a great option for drivers who have a clean driving record because it qualifies them for the Safeco Safety Rewards discount program.

However, if you are someone who is more comfortable with having access to your account online or through a mobile app, Safeco is not the company for you.

  • Offers affordable insurance policies for experienced drivers
  • The Safeco RightTrack program can qualify you for up to a 30% discount on your premium
  • Not for young drivers
  • Offers higher rates than some of the other insurance companies on our list

Check Our Review of Safeco Car Insurance

11. Mercury Car Insurance Mercury Auto Insurance Logo

Mercury is the best car insurance company for you if you are looking for a no-fuss insurance company that can give you the best rates. This company will give you a policy that covers all the basics you’ll find in policies from other companies but at the most affordable rate you can imagine. Even young drivers can enjoy the exceptionally low rates that this company has to offer.

The downside to Mercury, however, is the fact that since their rates are already very affordable, they don’t put much on the table in terms of discounts. Also, their customer service leaves much to be desired. Based on our research, their claims process can be very frustrating.

Who is Mercury best for?

If your only aim is to get insured without having to pay an arm and a leg, Mercury is for you. It is one of the best car insurance companies for those who aren’t interested in all the frills that most companies offer these days. However, keep mind that you’re going to have to deal with mediocre customer service if you decide to go with this company.

  • Very affordable policies
  • Includes mechanical breakdown insurance
  • Poor customer service

Check Our Review of Mercury Auto Insurance

12. Farmers Farmers Car Insurance Logo

Last on our list is Farmers Insurance. They offer the usual features their competitors do, as well as some other options that are exclusive to their policyholders, including No Fault, No Foul; New Car Pledge; and Farmers Rideshare.

Farmers offers some attractive discount packages that you can take advantage of if you meet the requirements—it’s perks like these that make Farmers one of the 10 best auto insurance companies in the US. For example, they have a discount option called Signal; it’s a voluntary program where you download and sign up for their app and allow it to monitor your driving behavior. This program automatically entitles you to a 3% discount off your premium.

Who is Farmers best for?

Farmers is also one of the very few insurance companies that offers extended coverage for customized equipment. This means that in case of an accident, your customized parts are covered by your policy and you can file a claim for them. If you’re a rideshare driver, you’ll also like the coverage that Farmers can give you.  

  • Excellent discount offerings
  • Affordable policy premiums
  • Good customer service
  • Process of filing a claim can be confusing because it varies from state to state

Check Our Review of Farmers Car Insurance

What Is the Difference Between Buying Car Insurance from an Agent vs. Buying Online Car Insurance?

In this day and age, it’s pretty hard to imagine how we survived without the internet and all the conveniences it has to offer. These days, we no longer need to head out to a shopping center to spend hours going through one rack after another and then lining up at the cashier to pay. Doing all our shopping with just a few clicks of a button has certainly made our lives a whole lot easier, but is buying online the best way to go?

Buying your insurance policy online is certainly convenient. All you need to do is head on to the website of the company you wish to purchase your policy from, answer a few questions, and submit. Then you just need to wait, and you’ll receive your quote within 24 to 48 hours via email. Easy, right?

Now if you like the auto insurance quote you received, you can proceed with the next step by going back to their website. If you want to make some changes, you can do so online too! You can also renew your current policy through your insurer’s website. Imagine being able to get all of that done with just a few clicks of your mouse.

However, there are also a few disadvantages to buying online. First of all, keep in mind that you won’t be interacting with an agent who will be explaining everything to you. That said, in order to determine just what type of coverage you need, you will have to do your research and learn a thing or two about auto insurance. Next, if you have questions or concerns, you’ll have to call the company’s hotline for answers. Last, you have to be computer and internet savvy, as you need to know your way around the internet to find the insurer’s website and then navigate through it to find the right page.

While buying your auto coverage policy online is the most convenient option, it isn’t for everyone. There are some people who really prefer interacting face to face with an agent so they can get their questions answered and also get the assistance they need when they’re trying to decide what type of policy they should get.

The Different Types of Insurance Agents

There are two types of insurance agents you will come across while shopping around for an auto insurance quote. We all know how persuasive insurance agents can be—some more so than others. Knowing what type of insurance agent you are dealing with will provide you with better footing when trying to decide which insurance company and what type of coverage is best for your needs.

  1. Captive Agents

Captive agents work for one specific company, so they will only try to sell you a policy from the company they represent. This type of insurance agent is usually affiliated with very large companies—think SuperBowl ads!

Working with a captive agent—or a direct agent or direct writer—has a lot of benefits. First off, you’ll be dealing with an agent who knows every single aspect of the policy you’re being offered. They can also give you a few tips on how you’ll be able to unlock certain discounts, which can help lower your car insurance rates.

They’ll know what add-ons to offer you based on your needs, and they’ll ensure that your coverage meets state requirements. Finally, you receive an individualized service because you only deal with the agent who has handled your account from the beginning.

  1. Independent Agents

Independent agents, or “brokers,” are part of a privately owned business or agency that sells insurance policies from different companies. They’re authorized to sell policies from the different companies they’re affiliated with, but they don’t represent these companies. Rather, their clients are the people shopping for a policy. Independent agents make sure that their clients get the best coverage for their needs at an affordable price. So when you meet with a broker, expect to be presented with a number of options.

However, direct agents are better able to offer cheap car insurance policies. They can also offer some attractive sign-up “gifts” or packages.

However, an independent broker will explain the pros and cons of each company, the discounts they offer, and any other details of the coverage you’re interested in. One of the biggest advantages of working with a broker is you won’t have to change agents if you decide to switch to another insurance company in the future. This is great, especially if you value personalized service.

Shopping for Car Insurance Online

More and more online car insurance companies have sprouted up over the past two decades, and it doesn’t look like this trend is going to die down any time soon. If anything, we might see more and more insurance companies fully migrating their businesses online as the years go by. This really shouldn’t be surprising for us since we now live in an age where almost everything we do is connected to the internet.

Online insurance companies are a little like captive agents, but the difference is they operate mainly via phone or internet. Yes, insurance agents will call you and try to sell you a policy. As annoying as these insurance telemarketers can be, it’s really hard to not get tempted by the rates of the policies they’re offering.

The same can be said when you shop for your insurance online. A quick Google search for “inexpensive car insurance” or “car insurance near me” would yield more than a dozen pages full of websites of companies providing cheap quotes.

One thing you need to keep in mind when shopping for a policy online is to always do your research on the company you’re thinking of buying from. Read reviews and customer complaints, and see how they’re rated by the relevant organizations. Another thing you should remember is you need to be knowledgeable in the terminologies used in the insurance industry, because you will have to “build” your own coverage policy through the insurer’s website.

That said, the process of acquiring a cheap car insurance quote online is not for everyone. If you’re not computer savvy or don’t really have the time to bother with these sorts of things, it might be best if you just stick with a direct agent or a broker.

How to Buy the Best Car Insurance

It’s undeniable that the premium for a policy can put a big dent in your budget. This is even more true if you have more than one vehicle that needs to get insured every year. The good news is there are ways you can get the best deal for your insurance coverage. Here are some tips that can help:

1. Shop Around

The best way to determine that you are getting the best deal for your car coverage is to shop around and compare car insurance quotes. Almost every insurance company you’ll come across will claim to have the most affordable car insurance rates in the country, but premiums vary from person to person since they’re calculated based on individual needs. Get at least five quotes from different insurance companies and compare their rates along with the inclusions in the policies they’re offering.

2. Check Out Local Insurers

It is only natural to think that “brand name” insurance companies are the best. After all, they didn’t earn their excellent car insurance ratings by providing less than stellar service, right? While this may be true, you still shouldn’t discount the fact that smaller companies can provide the same quality of service at a much more affordable price.

“Brand name” companies spend a lot on their marketing efforts. You see them on billboards, in TV and radio ads, in newspapers and magazines, and even on your Facebook newsfeed. These ads cost money, and this adds to these companies’ overhead expenses. To put it simply, big insurance companies are more likely to offer higher premiums because their operational costs are much higher than those of smaller firms.

3. Check Discount Opportunities

Every insurance company has a set of discount opportunities you can take can advantage of if you’re able to meet certain requirements. Make sure to check these out when making your car insurance comparisons. Some discounts are pretty easy to qualify for, like installing anti-theft devices, using an auto-payment service, and paying on time. You usually get higher discounts by bundling your auto and homeowners insurance.

4. Make Sure You’re Getting the Right Coverage

Different companies offer different types of coverage options to meet the needs of specific drivers. For example, if you don’t drive your car much, consider signing up for a low-mileage coverage rather than a more comprehensive one.

5. Be Careful of the Add-ons

Add-ons are great if you’re able to use them. However, these can add up. Make sure to scrutinize every add-on you sign up for and analyze whether you will really be able to take advantage of it throughout the lifetime of your policy.

The 5 Common Types of Car Insurance

One of the best ways to save with your car insurance company is by only getting the right amount of coverage. By doing so, you’ll be able to save as much as 50% off your usual premium. In order to do this, however, it’s important you know what the different types of auto coverage available are.

1. Liability Insurance

This is the most common type of car insurance. Liability insurance protects you in the event that you are caught in an accident that has been proven to be caused by your actions. Most states have a requirement for the amount of liability coverage drivers should have. If going above the minimum requirement is affordable for you, this type of car insurance will save you a lot of money if you’re involved in an accident that was your fault.

2. Collision Coverage

Having collision coverage ensures that if your car is involved in a collision accident, your insurance company will pay for the repairs. If your car is totaled in the collision, you can file a claim for the value of your car. However, we only recommend this type of coverage for brand new cars or older vehicles with a high market value.

3. Uninsured and Underinsured Motorist Coverage

This coverage is fairly inexpensive but is definitely worth adding to your policy. It ensures that in the event you have an accident involving an uninsured driver or one whose liability coverage is too low to cover all damages, your insurance will cover the excess.

4. Comprehensive Coverage

A comprehensive auto insurance policy covers other types of damage, beyond just a road accident involving a car. This includes acts of God, damage caused by hitting a deer, theft, a broken windshield caused by kids throwing stones, and so on. This type of coverage is a great addition to your policy if you can afford it.

5. Personal Injury Protection Coverage

This protects you and your passengers from any costly medical bills incurred if you get injured in a car accident—no matter whose fault it was. Personal injury coverage is unavailable in some states, optional in others and mandatory in Oregon, Utah, North Dakota, Kansas, Arkansas, Minnesota, Michigan, Kentucky, Hawaii, New York, Massachusetts, Maryland, New Jersey, District of Columbia, Delaware, and Florida. 

Should I Purchase Add-on Coverage?

If you can afford it, why not? Add-on coverage can give you peace of mind because you’ll know that you are protected. However, these add-ons can really put a dent in the total sum of your premium, so it’s worth considering exactly what you need and then investigating the costs of these add-ons among different companies as you make your car insurance comparisons.

Frequently Asked Questions

Whose is the best auto insurance?

As much as we would like to recommend one company and say they’re the best, most insurance policies are not the same for everyone. We recommend you educate yourself about the different types of insurance policies, get quotes from different companies, scrutinize the different coverage packages they offer, and then decide which one is best for you. Nonetheless, we would bet that Erie, Amica, Auto-Owners, USAA, or Geico will be among the best insurers for you after a quote comparison.

How does car insurance work?

Car insurance is an insurance policy that’s specially designed to protect car owners from the exorbitant costs involved in vehicular accidents and damage. Car owners can choose what types of coverage they would like to include in their policy based on their needs and driving behavior. In the event that they get into an accident or their car gets damaged, they can file a claim and their insurance company will pay for nearly the all the costs related to the accident.

How can I get cheaper car insurance?

The best way you can a good deal on your insurance policy is to shop around. Compare insurance quotes, see the discount opportunities they’re offering, and sign up for their discount programs. If you have other insurance needs, like homeowners insurance, signing up with a company that allows you to bundle it with your car policy will give you the opportunity to enjoy significant savings.

How much is car insurance per month?

The monthly premium for car insurance varies greatly depending on your location, driving history, and state requirements, not to mention several other factors. Based on our study, we found that the monthly premiums for car insurance are typically the most expensive in the state of Louisiana, where rates are around $150 per month. In comparison, the lowest rates were found in Idaho, where residents only pay $35 per month as their average car insurance cost.

Which is the cheapest car insurance company?

Car insurance companies don’t give a standard quote for their policies. They calculate your premium based on your driving history, the state of your vehicle, and a couple of other factors. For this reason, it’s almost impossible to name one company and say that they offer the cheapest policy around.

However, companies like Progressive, Erie and Geico are known to offer affordable coverage packages. To see which company is offering the best deal, you may also want to look at the local insurers in your area to see what they have to offer. 

Why is my car insurance so expensive?

There are many factors that can affect your insurance premium. Here’s a list of some of the factors that can affect your car insurance rate as you compare car insurance quotes:

Drivers under 25 (especially young male drivers) usually have higher rates because they’re considered high-risk drivers. Still, students can get a discount for maintaining good grades.

Your location can affect your policy’s rate. Those living in cities or high-risk areas for auto-related theft will see higher premiums.

Your driving history also impacts your premium. Any parking tickets hidden up your sleeve? Have you been involved in a car accident before? A DUI in your history can increase your premium by up to 77%! Meanwhile, traffic violation tickets can add 22%.

Your car is a big factor affecting your insurance premium. High-end cars are more expensive to insure if you are buying comprehensive and collision coverages. That’s because a premium car such as Tesla is much more expensive to repair than a Toyota Corolla after all.

How much coverage do I need in my car insurance policy?

Choosing the best car insurance coverage is crucial to ensuring you’ll be protected in case of an accident. In general, a combination of Collision and Liability coverage is good enough, but we would prefer full coverage.

Keep in mind that while more coverage or higher limits will give you peace of mind, this can significantly increase the rate of your basic premium. Also, you will need to check with your state’s car insurance coverage requirements to ensure your policy meets its standards.

What is the difference between full coverage and liability insurance?

The difference between full coverage car insurance and liability insurance is simple and quite easy to understand. Liability insurance covers those you inflict damage on in the event that you caused the accident. On the other hand, a full coverage insurance policy is a combination of collision and comprehensive coverage. It covers the costs involved in repairing the damages caused to your vehicle, be it from a collision, act of God, theft, etc.

When is a good time to shop for car insurance?

In the retail world, the best time to go shopping is during the off season so you can get the best deal. Unfortunately, the same does not apply to car insurance policies, since there is no “off season” when you can get cheap car insurance quotes. However, you can still get a good deal when you buy your policy at the right time.

The best time to shop for car insurance actually depends on your policy and the reason for switching. Is your current policy up for renewal? Are you dissatisfied with the quality of service you’re receiving from your current insurer and want to switch midterm?

The best time to start shopping around for car insurance is when you receive your renewal paperwork. Your future premiums will be indicated in the paperwork, and if you find that your new rates are higher than what you can afford or are willing to pay, it’s time to shop around for a more affordable policy. Shopping ahead will give you enough time to gather and compare car insurance quotes from different companies, thus ensuring you’ll get the best deal.

However, switching your insurance midterm is a different story. You need to make sure that your payments are up to date and you have a standing with your current insurer. This will make the process easier and can help keep your new premiums a little more affordable.

You may also want to pick a good date for your payment schedule. Your due date will normally be the day you purchased your policy—say for example you bought your policy on the 10th of January, your succeeding due dates will always be on the 10th of every month. You may want to pick a date that’s more convenient to ensure you’ll be able to make your payments on time.

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