Car Insurance: Top 5 best car insurance companies [Updated]14 min read
As a car owner do you know the importance of car insurance to you?
As a citizen of the U.S, when budgeting to get a new car for your personal use, it’s very crucial that you also plan for car insurance that will get you covered when any unplanned evil happens to your car in the future.
We have released some articles concerning other aspects of insurance you need to know to ensure good life and also minimize expenses.
When you are insured by a car insurance company, you’re certain that when calamities hit you in life, you’ll still stand strong financially, because the auto insurance company that insured you will take care of all the expenses that follow that calamity.
We elucidated the top 5 best car insurance companies in their descending order according to user ratings and reviews from the internet.
Let’s get started…
Top 5 Best Car Insurance Companies
- Erie Insurance
- State Farm
- Auto-Owners Insurance
We explained in detail other necessary info you should know about each company listed above in the later sections in this article. Continue reading below…
How Much Is Car Insurance per month in the US?
According to Nerdwallet, car insurance in the United States of America costs an average of about $133 per month. Although, upon the type of car insurance that you requested and also the location that you based, the price may likely vary.
Moreover, the national price for auto insurance on average per year ranges within $1,592 – this is statistics gotten from the calculation which was carried out in 2021.
Some factors that can affect the price of car insurance
Though it’s called car insurance which is specifically for cars, certain factors will determine the price of auto insurance for every individual who wishes to be insured by an insurance company.
These factors include but are not limited to:
- The age of the individual that is applying for the auto insurance and his/her driving experience
- Driving record of the individual (applicant)
- The region where the individual resides
- Type of car insurance that the individual selects
- Your vehicle type
- The former auto insurance history of that individual
The type of car insurance that you’ll surely need
While requesting car insurance, you should be aware that this auto insurance has various types. Below are the three (3) core auto insurance types you should have an idea about:
Car liability insurance
This is the type of car insurance that pays insured users for the properties that will damage when an accident or uncertainty occurs. It also covers the injuries that individuals are likely to have when such harmful effects happen.
It is advisable to purchase the type of auto insurance that covers almost everything that should be taken care of when such calamities happen to an individual.
As of today, over 40% of people that are under auto insurance in the United States of America are in this category of auto insurance because of what it covers for them.
Collision and comprehensive insurance
From the name, it constitutes two different aspects of the auto insurance policy. Although both of them seems to be similar to each other, this type of auto insurance is responsible for paying bills that may result from car accidents, calamities such as earthquake, fire outbreak, floods, collision with trees or other objects, some harmful materials that may fall from tall trees or sky, etc.
This type of car insurance is recommended for individuals who are using leased cars or loaned cars because when anything happens to the car, the main owner of the car will request refurbishing.
Nevertheless, if you own your car, you may skip this type of auto insurance policy.
Uninsured motorist coverage (UM)
This is another type of car insurance that nobody should neglect because it covers the health of the individual that will likely be involved in the uncertainty when it occurs.
They focused on paying the medical bills and other related bills and expenses that will arise when a collision occurs or when crashes take place. Currently, in the United States, this type of auto insurance is compulsory in certain regions why it is quite optional in the other states within.
Some car insurance discounts that an individual should expect when getting insured
As an individual who is seeking certain discounts on your auto insurance, there are something’s you can do to get huge discount rates alongside your car insurance. They are listed below:
- By having a good driving record for the past few years
- When you pay your auto insurance for the upcoming years in full
- By ensuring more cars in your auto insurance policy
- When you purchase multiple insurance policies (such as home, health, auto) from the same insurance company
- Also when you have at least one college student in your car insurance policy
How to find the best car insurance price for yourself
In some regions in the U.S where auto insurance is mandatory for every car owner, it is advisable that you first purchase a auto insurance policy (when you’re ready to buy your car) before getting your new car.
The reason for the statement above is because in some regions (in the United States), you will not be allowed to drive your car off from the company you purchased your car from without presenting your car insurance policy.
Moreover, you need to first sit down and calculate the type of car you wish to buy; this will help you to know the auto insurance package that will suit the new car you’re about to purchase.
Furthermore, the prices in different auto insurance companies also vary. This is why we have detailed the top 5 best car insurance companies in this guide. We are sure that the info we disclosed in this guide will help you to choose the best price you can afford for your auto insurance.
Most of these auto insurance company’s quote are listed online; maybe on their company website or so.
The Top 5 Best Car Insurance Companies Explained
In this section of this guide, we will explain in detail all you need to know about the top 5 best car insurance companies listed above.
#1. Erie Insurance
Erie Insurance is an insurance company that focused on issuing insurance policies for motorcycles, cars, boats, classic cars, recreational cars, etc.
As an interested individual, you can as well buy an insurance policy for RVs, golf carts, snowmobiles, etc.
While purchasing your insurance from Erie insurance company, there are a lot of things that are quite optional but you may decide to include it in your auto insurance policy. They include:
- Roadside car insurance services (such as towing, supply of emergency fuel, etc.)
- Protecting the individual from his loaned car
- Your car movement expenses (transportation or towing as the case may be)
Erie Insurance Ad-don
Erie insurance company also gives extra car insurance features for all drivers, including total damage or harm that may happen to their new car, by replacing it with the last model of your damaged car.
Some discounts you should expect from Erie car insurance
While planning to purchase your car insurance policy from the Erie auto insurance company, there are several discounts you will be exposed to. They include:
Reduced usage discount
This type of discount applies to those that don’t usually use their cars regularly. So if you are a traveler that moves from one state to another and your car is mostly idle, you’ll be eligible for this kind of discount.
According to Erie, if you stayed up to 90 days or above during your car insurance policy and your insured car is not being used either by you or another person, they will grant you this discount.
Safe driving discount
This discount is for drivers who have a clean record of not any single accident or crash in the past few years. You can utilize this discount if you have that kind of driving record.
Drivers who have more than one vehicle that is under a auto insurance policy are eligible to enroll in this Erie’s insurance discount.
#2. USAA Auto Insurance
USAA is another amazing car insurance company that insures its users on motorhomes, cars, motorcycles, boats, etc.
USAA insurance is available for almost everybody in the United States of America, including drivers, U.S soldiers – both retired and active, male and female, spouse and children, etc.
Another interesting thing about the USAA auto insurance policy is that they take care of every crash when an accident happens and also they offer another unique feature known as accident forgiveness insurance.
USAA auto insurance company also gives special insurance features for Uber drivers.
Some discounts you should expect from USAA insurance
Although the USAA insurance company has several features for their users, yet there is more to expect from their discount rates. Some of them are:
As a family man, if you have the USAA insurance maybe for your car or other insurances, they will give you a huge discount for partnering with them.
This discount comes when you intend to purchase a premium auto insurance policy for your vehicle.
New vehicle discount
For people that just purchased their new car, the USAA insurance company will give you a discount for it. Also if the car you want to get an insurance policy for is about 3 years or less, this insurance company will give you a discount on it.
This discount implies to people that normally store their cars for some time. USAA is ready to give its users up to 60% discount if they fall in this category.
#3. State Farm
The State Farm regardless of how its name sounds is another quality big auto insurance company in the United States. They are well-known in all the regions of the U.S. currently, they offer insurance policies on RVs, cars, boats, motorcycles, etc.
Some discounts you should expect from State Farm
The State Farm auto insurance company is quite popular in all the regions of the United States and they offer unique and amazing discounts in most of their insurance policies.
These discounts include but are not limited to:
Safe driver discount
In this discount, State Farm auto insurance company is willing to give a discount to all the drivers that have a good driving record; this includes accident-free and excellent driving practices.
Every driver who has an excellent driving record for the past 1 to 3 years is fully qualified to receive this discount while purchasing their auto insurance policy from the State Farm insurance company.
#4. Travelers Insurance
Travelers Insurance is another wonderful insurance company in the U.S. they also focused on giving insurance policies on cars, boats, motorcycles, etc.
Also, this insurance company offers insurance coverage on roadside car assist, towing, and other related coverage.
Moreover, there is an additional policy from this insurance company that covers drivers that loan their car.
Discounts from Travelers Insurance Company
This insurance company known as Travelers are popularly known for their huge discount rates majorly for their customers and drivers who constantly purchase an assorted policy from their company.
Other discounts from the Travelers insurance company are:
People who have assorted cars that are registered under an insurance agency will enjoy this discount only and only if they registered it with the Travelers insurance company.
Travelers give a discount to drivers that own a house. The discount is not actually for the house but because they have invested to have their own home coupled with the car they intend to purchase an insurance policy for.
New car discount
Driver or car owners that just purchased a new car will enjoy this discount from Travelers insurance. According to Travelers, users can enjoy up to 10% discount on their new cars.
#5. Auto-Owners Insurance
Auto-owners insurance is known for issuing an insurance policy on cars, boats, motorcycles, RVs, etc. if you are a tourist, Auto-Owners insurance covers all the insurance policies you’ll ever need as a tourist.
This insurance company also offers roadside assistance, loan coverage, and other related packages that come with their insurance policy.
One of the amazing features of this insurance company is that they sell diminished value insurance coverage to their users.
Moreover, they additional policies to eligible customers such as – collision merit. Here users will be compensated when their cars collide with an object or get damaged when an accident happens.
Discounts from Auto-Owners auto insurance
As a registered customer, the Auto-Owners’ insurance will surely grant you assorted discounts regardless of the category that you belong to. Whether you’re a student, aged person, single, house owner, etc.
Below are some discounts that you will receive when you purchase auto insurance from an Auto-Owners insurance company:
This is the type of discount that Auto-Owners gives their users who usually pay their premium auto insurance fee online. On the other hand, they are categorized as paperless customers.
Like other insurance companies, Auto-Owners insurance also gives discounts to customers who purchase other insurance policies such as life insurance, home insurance, health insurance, etc. from their company.
If you own assorted cars and you wish to purchase an insurance policy for those cars, Auto-Owners insurance company will surely give you a decent discount for patronizing their company.
Which insurance is best for a car in the USA?
From the user’s review, below are the top auto insurance companies in the United States of America.
- USAA – Known as the overall car insurance company.
- State Farm – Known as the sure car insurance company.
- Clearcover – Known for digital presence.
- Geico – Known for high-risk drivers.
- Travelers – Known for budget drivers.
- Erie – Known for robust coverage.
- Auto-Owners – Known for discounts.
Do you need car insurance in the US?
As a citizen in the US, you will surely need a auto insurance policy for your car because a lot of states in the US mandate that every citizen must be insured by a auto insurance company.
As a driver in the United States, to prevent uncertainty and other related risks, we recommend that you purchase a auto insurance policy for your vehicle.
Moreover, some states in the US like New Hampshire allow their citizens to drive their cars even without any insurance policy.
How much is car insurance in NY monthly?
In New York, the average price of car insurance for drivers is $1,085 annually, or about $90 if you wish to pay monthly.
Although the figures above are tagged as the minimum auto insurance you can get in New York. This means that there are several auto insurance policies more costly than the one listed above, but there are a lot of advanced features and coverage that are attached to those premium car insurances.
Which car has the cheapest insurance?
According to users’ reviews online, Subaru Outback has the cheapest auto insurance; and it ranges from $1,392 as the average price annually.
Does Geico have the cheapest insurance?
According to USNews, Geico has the cheapest car insurance among other car insurance companies out there.
These insurance are due for drivers that have a good driving record for the past few years, and those who are void of crashes.
We discussed in detail the top 5 best car insurance companies in the United States of America. We as well covered other sub-topics that will enable you to understand more about auto insurance.
The type of auto insurance you’ll ever need was explained in this geode. Also, the cost of auto insurance in your region in the U.S and the factors that will affect your auto insurance policy were as well discussed.
Other FAQs about car insurance were elucidated here also. We recommend that you go through the content slowly to find any info you’re searching for.
Thanks for reading…