Auto insurance is a necessity for drivers in the
USA, but it can also be a source of confusion and frustration. With so many
options and factors to consider, how do you find the best auto insurance company for your needs?
In this article, we will explore some of the most popular auto insurance companies in
the USA, based on their market share, customer satisfaction, coverage
options, and pricing. We will also provide some tips on how to compare and choose the right auto insurance policy for you.
Also read: What are the average prices for car insurance in Miami?
What is auto insurance and
why do you need one?
Auto insurance is a contract between you and an
insurance company that protects you from financial losses in case of an
accident, theft, or other damage to your vehicle. Depending on the type and
level of coverage you choose, auto insurance can pay for:
·
The repair or
replacement of your vehicle
·
The medical
expenses of you and your passengers
·
The property
damage or bodily injury you cause to others
·
The legal
fees and lawsuits resulting from an accident
·
The rental
car or towing expenses while your vehicle is being fixed
Auto insurance is required by law in most states in
the USA, and the minimum coverage varies by state. However, the minimum
coverage may not be enough to cover the full cost of an accident, especially if
you are at fault or the other driver is uninsured or underinsured.
That is why it is advisable to purchase more than
the minimum coverage to protect yourself and your assets from potential
financial losses.
What are the types and
levels of auto insurance coverage?
Auto insurance coverage can be divided into two
main categories: liability and physical damage.
Liability
coverage pays for the damage or injury
you cause to others in an accident. It includes bodily injury liability, which
covers the medical expenses and lost wages of the other driver and their
passengers, and property damage liability, which covers the repair or
replacement of the other driver’s vehicle and other property.
Liability coverage is mandatory in most states, and
the minimum limits vary by state.
Physical damage coverage pays for the damage or loss of your own vehicle in
an accident or other event. It includes collision coverage, which covers the
repair or replacement of your vehicle after an accident, and comprehensive
coverage, which covers the repair or replacement of your vehicle after a
non-collision event, such as fire, theft, vandalism, hail, or animal collision.
Physical
damage coverage is optional, but it may be required by your lender or lessor if
you have a loan or lease on your vehicle.
In addition to liability and physical damage
coverage, you can also purchase additional coverage options to enhance your
protection, such as:
Uninsured/underinsured motorist coverage, which
pays for your medical expenses and vehicle damage if you are hit by a driver
who has no insurance or insufficient insurance.
Medical
payments coverage, which pays for your medical expenses and funeral costs,
regardless of who is at fault in an accident.
Personal
injury protection coverage, which pays for your medical expenses, lost wages,
and other expenses, regardless of who is at fault in an accident. This coverage
is mandatory in some states, also known as no-fault states.
Gap coverage,
which pays the difference between the actual cash value of your vehicle and the
amount you owe on your loan or lease if your vehicle is totaled in an accident.
Roadside
assistance coverage, which pays for the towing and labor costs if your vehicle
breaks down on the road.
Rental
reimbursement coverage, which pays for the cost of renting a car while your
vehicle is being repaired after a covered claim.
The level of coverage you choose depends on your
personal preferences, budget, and risk tolerance. Generally, the higher the
coverage, the higher the premium, but also the lower the deductible and the
out-of-pocket expenses in case of a claim.
A deductible is the amount you have to pay before
the insurance company pays for the rest of the claim. An out-of-pocket expense
is the amount you have to pay beyond the deductible and the coverage limit.
You should know: What types of car accidents are not covered by insurance in the USA?
How to compare and choose
the best auto insurance company for you?
There are many factors to consider when comparing
and choosing the best auto insurance company for you, such as:
The reputation and financial strength of the company, which indicate its ability to pay
claims and provide quality service. You can check the ratings and reviews of
the company from independent sources, such as J.D. Power, Consumer Reports, AM
Best, and the Better Business Bureau.
The coverage options and discounts offered by the company, which determine the extent
and cost of your protection. You can compare the coverage options and discounts
from different companies and see which ones suit your needs and budget. Some of
the common discounts include multi-policy, multi-vehicle, good driver, good
student, low mileage, anti-theft, defensive driving, and loyalty discounts.
The price and value of the policy, which reflect the premium and the benefits you
get from the company. You can compare the quotes from different companies and
see which one offers the best value for your money. You can also adjust the
coverage level, deductible, and payment frequency to see how they affect the
price and value of the policy.
The customer service and claims experience of the company, which influence your satisfaction
and peace of mind. You can check the customer service and claims experience of
the company from online reviews, testimonials, and complaints. You can also
contact the company directly and see how they respond to your questions and
concerns.
What are the Most Popular Auto Insurance Companies in the USA?
According to the National Association of Insurance
Commissioners (NAIC), the most popular auto insurance companies in the USA
based on their market share in 2020 are:
·
State Farm, with a market
share of 16.1% and an average annual premium of $1,279. State Farm is the largest auto insurance company
in the USA and has a high customer satisfaction rating and a low complaint
ratio. It offers a wide range of coverage options and discounts, as well as a
network of local agents and online tools.
·
Progressive, with a
market share of 13.7% and an average annual premium of $1,826. Progressive is the second-largest auto insurance
company in the USA and has a competitive pricing and a high customer loyalty
rate. It offers a variety of coverage options and discounts, as well as a
unique feature called Name Your Price, which allows you to customize your
policy based on your budget.
·
Geico, with a market
share of 13.6% and an average annual premium of $1,250. Geico is the third-largest auto insurance company
in the USA and has a low average premium and a high customer satisfaction
rating. It offers a comprehensive range of coverage options and discounts, as
well as a convenient online platform and mobile app.
·
Allstate, with a market
share of 9.4% and an average annual premium of $2,135. Allstate is the fourth-largest auto insurance
company in the USA and has a high customer satisfaction rating and a low
complaint ratio. It offers a diverse range of coverage options and discounts,
as well as a personalized service from local agents and online tools.
·
USAA, with a market share
of 6.4% and an average annual premium of $1,364. USAA is the fifth-largest auto insurance company
in the USA and has the highest customer satisfaction rating and the lowest
complaint ratio. It offers a superior range of coverage options and discounts,
as well as a dedicated service for military members and their families.
However, it is only available to eligible customers who have a connection to
the U.S. military.
Other popular auto insurance companies in the USA
include Liberty Mutual, Farmers, Nationwide, Travelers, and American Family.
Each of these companies has its own strengths and weaknesses, and you should
compare them carefully before making a decision.
Conclusion
Choosing the most popular auto insurance in the USA is not a simple task, as there are many factors and options to consider. However, by following the tips and information in this article, you can make an informed and confident choice that suits your needs and budget. Remember, the best auto insurance company for you is the one that provides the best coverage, price, value, and service for your situation.
