Car ownership has unanticipated costs. Everyone's least favorite subject: insurance. Car insurance companies frequently get a bad rap, thanks in part to negative customer reviews. This makes determining the best auto insurance for you difficult.

What does “best” car insurance company even mean?

The answer differs widely from consumer to consumer. If saving money is your biggest concern, you’ll probably value cheaper premiums over all else. If you’ve had bad experiences with customer service, you’ll want a company known for its superior service and reliability.

Other variables to consider are whether an insurer covers drivers with poor driving histories or gives discounts to teen drivers with high grades.

Best Car Insurance on a Budget

Auto insurance prices are determined by several criteria, including your age, region, and driving record. As a result, the cheapest vehicle insurance differs depending on the driver.

Here is a list of companies that provide low-cost vehicle insurance.

Erie Insurance Group

You may not be familiar with Erie Insurance Group. This is because, as of February 2019, it is only available in 12 states plus the District of Columbia. However, when compared to other insurers, Erie's prices are often lower, particularly in Pennsylvania and Virginia.

Erie Insurance Group ranked first in the J.D. Power U.S. Auto Claims Satisfaction Study, in addition to having low prices.

Check out Erie if you reside in Wisconsin, Illinois, Ohio, Indiana, Kentucky, Tennessee, Pennsylvania, West Virginia, Virginia, North Carolina, Maryland, DC, or New York to see if you may save money.

Average Annual Rate: $1,052

Geico

You've definitely seen Geico advertisements with the irritating British gecko. However, that gecko's promise of saving you 15% or more on auto insurance might be accurate for you.

Geico is the country's second-biggest insurance and is accessible in all 50 states. Drivers in New York and Utah stand to save the most with Geico.

Geico fared approximately average in most areas in the J.D. Power U.S. Claims Satisfaction Study but earned five out of five in the Rental Experience category, which focuses on customers' experiences with receiving rental automobiles while their own vehicle is being repaired.

The average annual rate is $1,067.

American Family

American Family is the third most cheap insurance provider, and it is also available nationally. In all areas, it rates average in the J.D. Power U.S. Claims Satisfaction Study.

If pricing is your primary issue, it's absolutely worth getting a quotation to see how it compares in your region.

Average Annual Rate: $1,099

Best Car Insurance Customer Service

Many variables influence customer satisfaction. We used the aforementioned J.D. Power U.S. Claims Satisfaction Study to find the most dependable auto insurance provider.

The research ranks insurance providers in seven categories: repair procedure, general satisfaction, first claims reporting process, estimate process, rental experience, claims service, and settlement.

Here are the top three, in no particular order:

Erie Insurance

In addition to being the cheapest auto insurance provider, Erie received high scores in the J.D. Power research, outperforming several of its more well-known competitors. It earned five out of five stars in all areas except the repair procedure, which garnered four out of five stars.

Overall Satisfaction: 5/5

USAA

USAA provides insurance to active service troops, veterans, and their families. It finished second in the J.D. Power survey, receiving top scores in all areas except estimate, which earned four out of five.

Overall Satisfaction: 5/5

Amica Mutual

Amica Mutual finished third in the J.D. Power survey, despite earning knocks in a few areas. It received four out of five stars for initial notice of loss and estimate procedure. The repair procedure received a three-out-of-five rating, but the rental experience received a two-out-of-five rating.

Overall Satisfaction: 5/5

Best Car Insurance for Teens

It is common for teen drivers to have difficulty obtaining inexpensive insurance. A novice driver's lack of experience and maturity reflects negatively on them, resulting in higher rates. However, there is still hope for young drivers searching for adequate insurance coverage.

State Farm

State Farm provides several insurance discounts to young drivers. The High Student Discount provides reductions of up to 25% for drivers under the age of 25 who maintain good marks in school. If you take driver's ed classes, you can potentially earn a driver training discount.

The Steer Clear safe driver discount utilizes an app to track your journeys, as well as safe driving tutorials and quizzes.

Erie Insurance

Erie Insurance is suitable for both inexperienced and experienced drivers. The Youthful Driver Discount is available to unmarried drivers under the age of 21 who reside at home.

The Youthful Longevity Discount is intended for drivers who have been covered by an Erie policy for several years in a run, whether their own or their parents.

Finally, the Driver Training Discount offers lower rates ranging from 5% to 20% to drivers under the age of 21 who finish an authorized driver training course.

American Family

American Family has a Teen Safe Driver program that might save you money on your insurance costs. The concept uses an app to monitor your driving habits and provide methods to improve your driving safety.

You will receive a 10% reduction on your insurance rate after 3,000 miles or one year in the program.

Top Car Insurance for a Bad Driving Record

If you have a poor driving record, you may likely have difficulty obtaining inexpensive auto insurance. But don't despair: some vehicle insurance companies provide low-cost plans even to poor drivers.

Geico

Geico may be your best choice if you have a history of risky driving. Geico may save you up to 20% on your vehicle insurance if you have a history of speeding, reckless/careless driving, or running a stop sign.

Progressive

Finding an auto insurance provider willing to take a risk on a motorist with a DUI on their record might be difficult. Progressive may be your safe haven. This insurance provider is also an excellent choice if you have an accident on your driving record for which you were at fault. Depending on your specific scenario, you may save 30-40%.

How to Choose the Best Car Insurance Company For You

Even if you currently have insurance, Consumer Reports suggests looking around for the best rate. This will show you the many alternatives accessible to you, allowing you to make the best selection depending on your needs and budget.

SmartFinancial, a digital marketplace, will do the comparison for you. You might be paying as little as $22 per month and saving more than $700 per year.

It only takes one minute to obtain estimates from various insurers, allowing you to compare all of the best rates sides by side. Yes, in just one minute, you could save $715 this year. That's a lot of money back in your pocket.

So, if you haven't looked at your auto insurance rates in a while, discover how much you may save with new coverage.

What Types of Claims Are Covered?

The required minimum level of coverage varies based on where you reside. To find out what those minimum standards are, go to the website of your state's insurance commissioner. In Ohio, where I reside, for example, just liability insurance is needed by law.

However, you may opt to purchase more than the bare minimum to properly secure yourself and your possessions.

Enquire with your insurance agent about the coverage they provide. If you only get basic liability insurance, make sure to read the small print to discover what sorts of claims it covers. The same is true if you include items like physical damage coverage or anything above and beyond the bare minimum.

What Is Excluded?

You should be aware of what is and is not covered, just as you should be aware of what is not. Some plans, for example, may not cover you if you are in an accident with an uninsured driver, a victim of vehicle theft, crash with an animal, or your car is destroyed in a natural catastrophe.

Request a list of what isn't covered so you can assess the possibility that these exclusions will apply to you. For example, if you reside in a hurricane-prone location, you should make sure your automobile is insured for natural catastrophes. If you frequently travel on country roads, you'll want to be covered in case you encounter a deer.

Can I Choose Who Performs Repairs?

When your automobile is damaged, some insurance companies will select the auto repair business that will repair it. This is generally due to an arrangement between the repair shop and the insurance company, in which the shop makes a deal with the insurance company in exchange for directing consumers their way.

This usually works out OK, but if you have a favorite mechanic, you might not enjoy being instructed where to take your car to be repaired. Alternatively, if you have a large deductible, you may wish to seek a second pricing estimate before agreeing to a repair order.


What Are the Costs?

The monthly premiums are the most noticeable expenditures of any insurance plan. However, if you have a high deductible, you may face significant financial difficulties in the event of an accident.

A large-deductible means you'll have to pay more for a repair out of pocket before your insurance coverage kicks in and covers the remainder. If you have enough money saved up, you might be able to get away with a greater deductible and a cheaper monthly cost. However, if you don't have a safety net, going with a smaller deductible and higher premiums may be a better option.

What Additional Coverage Is Offered?

Liability insurance generally only covers harm to other people or property when you are at fault. Under liability insurance, the cost of fixing your own automobile may be borne by you. As a result, you may want to consider purchasing additional coverage to protect yourself in several circumstances.

Comprehensive coverage protects you if your automobile is destroyed by something other than an accident, such as a natural disaster.

Collision coverage pays to repair your automobile after an accident, regardless of whether the accident was your fault or not.

Uninsured motorist coverage protects you if you are involved in an accident with a driver who does not have insurance. You would be accountable for any damage to your car if you did not have this sort of insurance, which might cost you a lot of money.

Personal injury protection, commonly known as "no-fault" coverage, assists in the payment of medical and other costs regardless of who was at fault in the event. It may also compensate for missed earnings and transportation to medical visits. Some states require this sort of coverage, while others make it an optional extra.

How to Save Money on Car Insurance

You have several options for ensuring that you receive the greatest deal on vehicle insurance, regardless of the provider you select.

Bundle Your Insurance

It is advantageous to use the same insurance company for all of your insurance requirements. When you combine goods like houses, vehicles, and personal property insurance, most insurance providers give discounts.

Drive Safely

Being a responsible driver can pay off. The longer you go without an accident, the cheaper your insurance premiums will be. Others utilize technology, such as apps, to monitor your driving habits and provide a discount if you use the app to improve your driving skills.

Pay in Full

Paying your annual vehicle insurance premium in full may qualify you for a discount. It's worth thinking about if you have adequate funds and wish to spend less on auto insurance overall. If you are unable to pay in full, inquire about a discount for participating in an auto-pay arrangement.

Driver Training

Regardless of your age, many insurance companies will give you a discount if you finish driver training classes.


Car Safety Equipment

Anti-theft devices, airbags, and safety technologies featured in new automobiles may qualify you for a discount. Make a note of them before requesting a quote.

Choosing the appropriate vehicle insurance coverage may be a stressful process, but it is worthwhile to browse around and evaluate all of your alternatives before signing on the dotted line.

Catherine Hiles, her husband, and their two children live in Ohio. By day, she supervises a team of writers and graphic designers, and in her leisure time, she works on her own writing.