Choosing the right car insurance is an important decision. In addition to having a significant impact on your monthly budget, the wrong coverage could be financially catastrophic after an accident. It is important to find a balance between monthly costs and the right level of coverage. In addition, there are several other important factors that should be taken into consideration when choosing an insurance company.
Value Rating: Value is often a highly subjective metric; everyone’s financial priorities are different. However, understanding how an insurance company measures up when comparing their cost versus what they provide can give a general indication of which companies are best overall.
Customer Complaint Rating: The last thing anyone wants after dealing with the stress and trauma of a car accident is difficult to work with insurance representatives. A high customer service rating is a strong indicator that your account managers will help in diffusing the pressure of the situation.
Financial Strength Rating: Choosing an insurance company in sound financial shape is one of the most important factors to consider. Most practically, a healthy company has a very low risk of defaulting on its obligations, which could one day be an insurance claim that you file.
J.D. Power Overall Rating: J.D. Power is one of the leaders in providing respected consumer reports on a number of industries. Since most consumers don’t have the time to audit every company they do business with, J.D. Power does it for them. A good rating from J.D. Power is usually an indication that the company is worth doing business with.
Here are the highest rated car insurance companies according to these metrics:
The United Services Automobile Association, or USAA, is a Fortune 500 company that has been in business since 1922. USAA is the highest-rated choice in every category; unfortunately they will only accept current or former members of the United States Military and their families.
Customer Satisfaction: USAA has received a customer service rating of 4.9 out of 5. The general consensus is that employees at USAA truly believe in what they are doing and have the happy customers to prove it.
Financial Strength: USAA has been in business for about 92 years and has successfully built up a strong company with stable financials. There is no doubt that USAA is a company that will be around for a long time.
J.D. Power Rating: J.D. Power has given USAA an overall rating of 5 out of 5, which makes sense given their overall level of customer service, the quality and value of their products and their stable company finances.
Overall Value: If you qualify for car insurance through USAA, the choice is a no-brainer.
Amica Mutual is an insurance company that has been in business since 1907. As one of the oldest insurance companies in the United States, Amica Mutual comes with a solid reputation and over a century of foundation. If you’re willing to spend a little extra money, Amica Mutual provides very strong coverage.
Customer Satisfaction: Amica Mutual has a customer satisfaction rating of 4.9 out of 5, giving it one of the highest ratings in the industry. Customers are consistently happy with their services.
Financial Strength: With 3,200 employees, 40 offices and over 100 years in business, Amica is one of the most financially stable insurance companies in the United States, with a rating of 4.9 out of 5.
J.D. Power Rating: J.D. Power has given Amica an overall rating of 4.5 out of 5. Although that is not as good as USAA, it is the best rating of the remaining options on this list.
Overall Value: Although Amica has strong ratings, their policies are also fairly expensive, with a value rating of 3.2 out of 5. You will get great car insurance with Amica and you will be paying for it.
Nationwide is a financial and insurance services company that has been in business since 1926. They are currently one of the largest and most well known insurance companies in the United States. In terms of ratings, Nationwide is almost as solid as Amica and is slightly more affordable.
Customer Satisfaction: Nationwide is well known for their high level of customer service, with a rating of 4.9 out of 5. Although this is a great rating, it is on par with the other companies on this list.
Financial Strength: Nationwide has gone through a number of mergers and other financial changes in recent years. Although they still have a financial strength rating of 4.3 out of 5, it is the lowest such rating on this list.
J.D. Power Rating: Due to a number of factors (many of which are a result of recent financial changes), J.D. Power has given Nationwide an overall rating of 3.5 out of 5.
Overall Value: Despite their financial discrepancies, Nationwide scores better than Amica in overall value, with a rating of 3.5 out of 5.
Allstate was founded in 1931 and is the second largest personal insurance and financial services company in the United States. They are also one of the most recognizable. Although Allstate seems like a strong option and is typically the most affordable, their J.D. Power ranking is the lowest of the four.
Customer Satisfaction: Allstate’s customer satisfaction is in line with the rest of the list, with an impressive 4.9 out of 5.
Financial Strength: Allstate is in a slightly better financial state than Nationwide, with a rating of 4.4 out of 5. This indicates that Allstate is likely to be a successful company for many years to come.
J.D. Power Rating: Despite their great customer service, financial strength and name recognition, J.D. Power has given Allstate the lowest overall rating of companies on this list, with 3 out of 5.
Overall Value: Allstate is tied with Nationwide for overall value, with 3.5 out of 5.