Shopping for car insurance can be a drag. But at The Lazy Coin, we’ve got your back with all the tips and tricks to make it a breeze.
Regardless of whether you’re looking to switch up your car insurance for better rates or getting it for the first time, it is essential to compare car insurance quotes from various companies.
- Car Insurance Companies to Avoid
- Top 10 Best Car Insurance Companies
- The Lazy Coin’s Fave Car Insurance Picks
- The Lazy Coin’s Tips for Picking Out Car Insurance
Why Comparing Car Insurance Quotes Matters
So many companies out there promise perks like accident forgiveness and vanishing deductibles to catch your eye. But the real deal is how they handle customer complaints and satisfaction after a claim. That’s where The Lazy Coin steps in to rate these companies based on how they treat their customers.
How to Compare Car Insurance Providers
When you’re shopping for car insurance, here’s what you should look at:
1. Repair Shop Networks
Find out if the insurance company has a network of preferred repair shops. Using these shops can sometimes lead to better service and guarantees on repairs, as well as faster claim processing.
2. Coverage Options
Not every company offers the same types of coverage. Some might not have what you need, like rental car reimbursement or roadside assistance.
3. Accident Forgiveness
Some insurers offer accident forgiveness programs, which prevent your rates from going up after your first at-fault accident. This can be a huge benefit, especially for younger or less experienced drivers.
4. Customer Loyalty Programs
Check if the insurance company rewards long-term customers. Some providers offer discounts or perks for staying with them over the years, which can add up to significant savings.
5. Claims Satisfaction Ratings
Look beyond basic customer service ratings and dive into claims satisfaction scores. This shows how smoothly and fairly the company handles claims, which is crucial when you actually need their help. Sites like J.D. Power and Consumer Reports offer these insights.
6. Financial Strength
A company’s financial strength matters because it affects their ability to pay out claims. Make sure they’re financially stable.
7. Digital Experience and App Quality
In today’s tech-driven world, a company’s app and online platform can make a huge difference. A user-friendly app can simplify everything from filing claims to paying your bill, saving you time and hassle.
8. Policy Customization
Some companies let you customize your policy more than others. Look for options that let you tailor your coverage to fit your needs.
Worst Car Insurance Companies According to Customers
Shopping for car insurance can be a drag, but knowing which companies to avoid can save you a ton of headaches. Let’s break down the ones that just don’t make the cut based on billing, policy details, options, customer interaction, claims, and price.
1. Travelers and Geico
Geico might have a cool app and lots of coverage options, and both Geico and Travelers might seem like they have good prices, but their customer service is seriously lacking. Geico users often feel like they’re just a number, with impersonal service and bad claims processing. Travelers? People complain about surprise rate hikes and poor communication when they need to file a claim.
2. Allstate
Allstate has a bunch of agents across the country for personalized help, but it comes with high premiums. Even though they offer discounts, qualifying for them is tough. Plus, folks have trouble canceling policies and dealing with uncaring agents.
3. Nationwide
Nationwide has a strong online game and lots of coverage options, but they drop the ball with slow claims processing and unclear pricing. Customers get frustrated when the company can’t explain coverage exclusions.
4. Progressive
Progressive is known for its discounts and customizable plans, but their customer service and claims handling leave a lot to be desired. Some users have a hard time getting reimbursed for rental cars after an accident.
5. Liberty Mutual
Liberty Mutual offers a bunch of coverage options and a user-friendly website, but their pushy sales tactics and unresponsive service are big turn-offs. Many people complain about low settlement offers and difficulties getting claims paid.
The Lazy Coin’s Fave Picks
Our analysts have a soft spot for three standout companies: USAA, Amica, and NJM Insurance Company (NJM).
USAA
USAA is a champ in car insurance studies. They topped Consumer Reports’ list this year and scored high with J.D. Power. The catch? They only cover military members, veterans, and their families. Check out our guide on USAA for more details if you’re eligible.
Amica
No military ties needed here! Amica Mutual often ranks high for customer satisfaction. This year, they nailed the #1 spot in J.D. Power’s U.S. Auto Claims Satisfaction Study. Learn more about Amica in our detailed guide.
NJM Insurance
NJM shines in both Consumer Reports and J.D. Power rankings. They’ve even earned a special certification for auto claims from J.D. Power, proving they go the extra mile.
8 Best Car Insurance Companies
Here’s our rundown of the best companies, focusing on customer experience. We average scores from Consumer Reports and J.D. Power to create our list.
- NJM Insurance Group
- Amica Mutual
- Erie
- Auto-Owners
- State Farm
- American Family
- Automobile Club Group (AAA)
- The Hartford
Honorable Mention
USAA – Amazing if you qualify, but not included in the rankings due to limited eligibility.
The Decline in Car Insurance Rankings
The decline in customer satisfaction among car insurance companies this year, as highlighted by J.D. Power’s study, reflects a concerning trend. The average drop of 12 points in satisfaction scores can be primarily linked to two key issues: rising premiums and prolonged repair times. As customers face higher costs and longer waits for repairs, their frustration with insurance providers intensifies, contributing to the overall decrease in satisfaction ratings. This situation underscores the need for insurance companies to address these challenges to improve customer experiences and regain trust.
More About the 8 Best Car Insurance Companies
Want more info on our top picks? We’ve got you covered with AM Best Financial Strength Ratings (FSR) for each.
1. NJM Insurance Group
- Grade: 87.8
- FSR: A+
NJM started in New Jersey and now offers auto insurance in a few states. They provide various coverage options and discounts to help you save.
2. Amica Mutual
- Grade: 86.7
- FSR: A+
Founded in 1907, Amica is owned by its policyholders. They offer standard auto coverage and lots of discounts.
3. Erie
- Grade: 85.2
- FSR: A+
Based in Pennsylvania, Erie Insurance offers standard auto policies and several optional add-ons for extra coverage.
4. Auto-Owners
- Grade: 75.8
- FSR: A++
This mutual insurance company offers multiple lines of insurance, including auto. They provide various coverages and common discounts.
5. State Farm
- Grade: 75.6
- FSR: A++
State Farm is the largest auto insurer in the U.S. They offer standard coverages and extra options like rideshare insurance.
6. American Family
- Grade: 74.7
- FSR: A
American Family offers auto insurance and other lines of insurance. They have various coverages and discounts.
7. Automobile Club Group (AAA)
- Grade: 74.4
- FSR: A+
Part of AAA, they offer auto insurance with a AAA membership. Coverage options and discounts vary by region.
8. The Hartford
- Grade: 70.5
- FSR: A+
The Hartford offers car insurance for AARP members, including standard and additional coverages.
The Lazy Coin’s Tips for Shopping for Car Insurance
1. Ask about Usage-Based Insurance
If you don’t drive a lot, consider a usage-based insurance (UBI) plan. These plans, like Progressive’s Snapshot or Allstate’s Drivewise, use telematics to track your driving habits. Safe and infrequent drivers can score significant savings compared to traditional plans.
2. Get Clear on Membership and Alumni Discounts
Some insurance companies offer special discounts for members of certain organizations or alumni of specific colleges. For example, being a member of a professional association or a sorority/fraternity can earn you lower rates. It’s worth checking with your insurer to see if you qualify for any of these unique discounts.
Final Thoughts
Close to 30% of young people have never compared car insurance quotes. Shopping around is a great way to save money and ensure you’re getting the best deal. Remember, quality car insurance is about more than just premiums.