Which Companies Offer Car Insurance? The Biggest & Most Stable Car Insurance Companies in '20

Drivers should narrow down their priority when selecting a car insurance company - is it cost? service? coverage? Rank the top 3 priorities and then rank companies according to how well they meet said priorities starting with priority 1 onward.

Each individual person may have drastically different needs and wants for an auto insurance provider. Two necessary steps are, 1) knowing your state's minimum requirements, and 2) creating a list of what you are looking for. Are you looking to get full coverage, liability coverage? What deductible amount are you financially comfortable with? Do you want to bundle it with rental insurance or homeowner's insurance?

Once you have identified your needs and wants, you can use one of the many internet services to identify your zip code's top auto insurers, one option is the MoneyGeek comparator. Also, be sure to see if your employer or university has a partnership with a particular company.

When it comes to car insurance, there are many different benefits a given plan can offer, which can make it difficult to do an outright price comparison. If you're trying to compare prices between companies, you'll want to make sure the plan details are consistent (bodily injury liability, collision coverage, etc.).

Assuming you have internet access, there are some excellent websites that offer comparisons of the different companies that provide auto insurance. Some offer estimates and some connect you with quotes from the companies.

First, they have to understand what their needs are by doing the following:

• Educate themselves on the minimum insurance coverage required by law and then build from there.
• What stage are they in the family life cycle? How many insureds will be on the policy? Are they teenagers or older drivers?
• Understand all other factors that influence the price of coverage, such as the make and model of the car you drive and their risk tolerance.
• Do they want to have an actual agent that they can call if necessary?

Get quotes from at least four companies for exactly the same coverage.

I was asked to write this article shortly after I spent a weekend watching YouTube videos of Supercars in London and Monaco. The Bugattis and Bentleys caught my eye. But reality quickly set in even before I checked their sticker prices. Where could I possibly drive these cars in Pittsburgh? The potholes and steep hills would be the end of them. There would be nowhere to park them, including my garage (too small.) And even if I could afford a gently used one, the annual maintenance, replacement parts, and insurance costs would be out of reach. One estimated insurance premium for a Bentley was $50,000 with a $50,000 deductible per claim.

I use this story to highlight the fact that the car insurance selection process must begin before you purchase a car. And that a myriad of factors, only some of which are under your control, will impact the amount of your insurance premium.

It is obvious that make, model, and price of a car are considered. And that the age and driving record of the driver are also key factors. But it might not be as obvious that ZIP codes can have an impact. Statistics related to traffic levels, rates of accidents, and crimes such as theft and vandalism, are tracked by ZIP code.

All these factors (and many more) represent a level of risk. Car insurance companies are not uniform in how they assess each of those risks. As a result, the highest premium quotes might be three times the cost of the lowest quotes in any given location. And drivers with different circumstances, might receive different premium quotes for the same vehicle, in the same city.

Unless you recognize the factors that impact car insurance premiums, you might end up paying more than you need to or even worse, choosing a vehicle that you can’t afford to insure.

With many options for auto insurance providers, what is the best way for drivers to create a list of car insurance companies that meet their needs?

When selecting a car insurance company, a driver needs to know three things; what coverage is mandatory, what categories of coverage are provided by car insurance companies, and which personal circumstances will have an impact on the premium.

The driver will also have to identify what risk level is acceptable. The purpose of insurance is to lessen risk, by sharing any loss with a pool of other insured drivers. Car insurance will never eliminate risk, but it can be used to avoid a significant negative financial impact. And it is important to remember, that it is good news if your annual premiums are never paid back to you. That means you never had to make a claim.

1. Mandated Coverage

First on the list is to identify what level of coverage is mandated by your state. This information is provided on each State Insurance Commissioner Website. Most states require a minimum level of car insurance, though a few allow drivers to provide some other method of financial responsibility for damages, both personal and property liability coverage. Some states have as many as 8 types of coverage that are required. This is the starting point.

In addition, lenders and lessors usually require a certain level of insurance coverage.

2. Categories of Insurance Coverage There are four main categories of car insurance coverage: Liability, Comprehensive, Collision, and Specific Endorsements or Add-Ons.

Liability provides coverage for damages done to people and property resulting from a collision with another vehicle. It covers Bodily Injury, Property Damage, Personal Injury Protection, and Uninsured or Underinsured Motorist Protection. Bodily Injury protects from lawsuits against the driver if responsible for an accident. Personal Injury Protection covers the cost of injuries to you and others. Uninsured or underinsured coverage is for when the at fault driver does not have adequate insurance.

It is quoted using a series of three numbers. For example, 100/300/50 represents $100,000 Bodily Injury per Person/$300,000 Bodily Injury per Accident/ $50,000 Property Damage per Accident.

Uninsured driver percentages, insurance fraud incidents, and lawsuits are tracked by ZIP code.
And while a driver’s health insurance might seem like duplicate coverage, the complexity of submitting multiple claims can be avoided by having adequate liability coverage.

Note that while some states have adopted “no-fault” rules, that doesn’t mean that a driver does not have liability. It is designed to reduce litigation.

Comprehensive provides coverage for damages not resulting from a collision with another vehicle. It covers theft, vandalism, fires, explosions, flying or falling objects, weather-related damage, and even civil unrest.

Again, ZIP code can determine the level of risk for many of these factors, as evidenced by daily news articles.

Collision provides coverage for vehicle damage, including repairs or replacement.

While this is partially based on the book value of the vehicle, Zip code can also be a factor based on average repair costs.

Optional Endorsements or Add-Ons are offered by most car insurers. They include a long list of items such as Roadside Assistance and Towing, Glass Coverage, Rental Reimbursement, GAP Coverage – for when the amount paid for a totaled car is less than an outstanding loan or lease agreement amount, and Accident Forgiveness.

Each of these categories of coverage will mitigate, but not eliminate, financial risk. Damages related to Comprehensive, Collision, and Other Endorsements are easier to quantify and have reasonable limits. In addition, they can be covered by building up healthy emergency funds. Liability risks are less certain and can be much more significant, especially if lawsuits are filed. Collision coverage is sometimes dropped for aging vehicles. But vehicle age is not a factor in liability coverage. In fact, it could increase liability, if maintenance has been neglected.

3. Personal Circumstances Impacting Premiums

It is important to provide all relevant information to a car insurance company. Failure to disclose information or to provide updates related to a change in circumstance, can result in claim denials and possibly discontinuation of coverage.

However, it is difficult to know exactly what is relevant. In addition, some information can be used to lower premiums as well as raise them. That is why it is important to ask what factors they consider, and what programs they offer to reduce premiums. It is a good idea to review coverage every year.

Many of the relevant factors are widely known, such as number, age, and driving records of all drivers in the home. Others are less obvious, such as how long is your commute, where do you park your car, what is your education level, credit score, and occupation.

It is also important to disclose if you are using your vehicle for business purposes – including food deliveries, even meals on wheels or other volunteer activities. With the growth in part-time work, with multiple employers, this is becoming a common occurrence. And it will probably require you to have a commercial car insurance policy.

Selecting what coverage is important must be done on an individual basis. For example, if it is a multiple car policy with several drivers, the need for a rental car might not be as critical as for someone who lives alone and has a long commute.

The links provided at the end of this article can help to identify relevant factors.

All of these risk factors need to be weighed, along with the premium costs related to the various levels of coverage. And choices for handling risk can include other options like emergency funds can be identified.

Identifying a List

Once a driver has identified the level and type of coverage required, the next step is to research car insurance companies and to obtain premium quotes.

Drivers often select car insurance based on recommendations by family members or friends. However, using the Internet can help to make a more informed decision. It provides the following information:

Premium Rates by ZIP Codes and Best Auto Insurance Companies for 2020 Ranked by:

• Claims Service
• Customer Service
• Price Value
• Website/Apps Ease of Use
• Specific Categories – Life Events, Age, Accidents, Bad Credit, Speeding Tickets, Insurance Bundles, Safe Driver, Teen Driver, Young Driver, Senior Driver

The website also identifies which companies are best for select factors such as senior drivers, adding a teen driver, accident forgiveness, or even speeding tickets.

This will help to identify a list of car insurance companies that will fit your needs. And remember, one company does not fit all!

And it shows that the Premium is not the only factor to be considered.

The best way to compare auto insurance offers is through mobile apps and websites such as MoneyGeek.

Busy customers who do not have time to do extensive research can reliably infer a certain level of service and coverage from well-known car insurance agencies.

While well-known car insurance companies are not always the most affordable option, they do have some advantages. For some customers being able to bundle is a decisive advantage. Bundling can discount prices to levels that make it competitive with the most cost-affordable insurer. Bundling could also help to alleviate some of the stress associated with keeping up with another bill.

Another benefit of a well-known insurance company is their regional or national presence. If you are more likely to relocate or have children who may go to college in a different state, you may feel more comfortable knowing your current provider will continue to cover you and your family through these changes.

I find that even well-known companies can have poor reviews, so customer service is a better indicator of quality than brand recognition (though better customer service will likely come at a higher price as well). So when choosing between brands, you'll also want to consider how much it's worth paying a higher price in exchange for a smoother insurance claim experience in the event of an accident.

The main benefit is awareness of the company’s service record and the good (or bad) reputation it might have. Insurance is a product you pay for but would prefer to never use (as would the insurance company). If you do ever need it, you would have certain expectations of customer service and outcomes.

The primary benefit of getting auto coverage from a well-known company is the level of credibility and stability that they provide. By emphasizing the relationship that the consumer has with their agent, you are tangibilizing the intangible for the consumer, which conveys trust. Also, agents are local and are part of the community, whereas online providers are "anonymous," and there is not a chance to build a long term, consistent relationship with your customer. Having said that, that's fine for some consumers who are only basing their decision on price and want basic insurance. However, the problem with this is that most consumers who purchase this way don't realize that when they have a problem and need to use their coverage, they typically don't have enough coverage and will end up paying more because everything is charged separately. Had they purchased from a well know company through an agency, all of this could be explained to them on the front end and they can make a more informed decision, often times saving them money in the long run.

Consumer Reports has a list of well-rated car insurance companies. You want a company that charges low premiums and pays claims without a lot of trouble. How much they spend on advertising--i.e., how well-known they are--is less important.

Well known car insurance companies spend significant amounts of money on advertising. And while advertising messages can be manipulative, they can also identify what areas they specialize in.

They are also more likely to be financially sound.

And finally, their infrastructures will be broad enough to provide coverage nationally, as well as locally, with multiple options for obtaining claim estimates, and obtaining repairs and other services. That is why Website/Apps – Ease of Use is now a factor when selecting a car insurance company.

None in my opinion. All insurance companies offer similar coverages and customer service levels

Some websites provide comparison tools which can be helpful.

To find the best auto insurance provider, you need to identify what type of driver you are. Do you have a history of getting traffic tickets or in car accidents? If you answered yes to one of the above, be sure to keep in mind, providers increase their rates by very different amounts. In examining insurance rate increases for an average driver who received a speeding ticket, MoneyGeek found among nine providers, the range was from 15% to 42%. While among the same providers, increases in rates as the result of an accident ranged from 28% to 85%.

So, while the annual car insurance rate and the deductible are important, understanding how rates may change is vital to finding the best provider, especially when considering coverage for more than one person or one vehicle.

Independent Insurance Agents

I compare the process of selecting a car insurance company to booking a vacation. While the Internet provides multiple tools for obtaining premium quotes (or hotel, car rental, and airfares,) unless you are an expert, using an Independent Insurance Agent (or travel agent) is often the best way to go.

Independent Insurance Agents represent multiple insurance companies and can work with the customer to find the best fit. They are also more familiar with car insurance terminology and can also ask you the important questions about your own circumstances.

Bundling Insurance Products

Another option is to ask for a quote from the insurance company that handles your home or life insurance policies. Most insurers will offer discounts for bundled policies.

Finalizing the Decision

Selection of the best car insurance company and level of coverage is done based on a cost/benefit analysis and an assessment of risk. It is important to recognize how much a premium will change at different levels of coverage. If the savings are significant, they can be used to build an emergency fund. If not, it might be better to pay more for peace of mind.

It is also important to review coverage every year, and to shop around for a better price. The industry is very competitive at the moment, so more favorable rates might be available. And updates in personal circumstances can require coverage and premium adjustments.

It doesn’t cost anything to shop around. But the cost of the wrong coverage can be substantial.