Best Car Insurance Companies For 2020

car insurance is a legal requirement in most states, but it is also a critical financial safety net in the event of a collision or other damage, regardless of whether you are wrong. In exchange for a monthly premium, the best auto insurance gives drivers peace of mind and can save thousands of dollars. To determine the best auto insurance companies for 2020, we look at the latest ratings from JD Power, AM Best, consumer reports, and the National Association of Insurance Commissioners (NAIC). Then we use our rating system, SimpleScore, to compare discounts, customer satisfaction, coverage options, digital accessibility, and customer service for each major provider.

How to choose the best insurance company for you

This is not a travel sister: the auto insurance premium may not meet the needs of your best friend. Because of this, there is no right auto insurance company for every driver. Auto insurance is regulated across the country, and coverage costs may vary depending on where you live. It means that your friend or neighbor can pay a different amount depending on their specific location, coverage and driving record. If you are considering changing your auto insurance company and want to make sure you get the best coverage for your needs, here are the steps to follow.

6 best car insurance companies for 2020

Amica Mutual: the best overall
State farm: the best for customer service
progressive: the best for discounts
Hartford: The Best Policy Options
Geico: the best for smart technology consumers
USAA: Best for Military Personnel

Verify state required coverage

In almost all countries, the law requires drivers to have some form of auto insurance or evidence of financial responsibility. Each state has insurance level requirements and the minimum coverage each driver must have. For example, Virginia has minimum insurance requirements, but drivers can override a premium payment by paying $ 500 per state each year. This fee does not give the driver insurance, but allows you to drive at your own risk. Use the guide from the Insurance Information Institute to define the insurance requirements for your state.

On the minimum amount of insurance required for your country, you must determine whether you live in the absence of an error or an error condition. In the absence of a failure, your car insurance will pay for damages to your vehicle and medical bills after an accident, regardless of the cause of the accident. In the event of an error, the person who caused the accident is responsible for covering the losses of the other driver.

Perfect states include: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.

Know your opponent

Most coverage options will be deductible - the amount of money you have to pay out of pocket for the covered loss before entering your insurance policy. Both drivers in conflict, included and without insurance / without insurance, will have discounts.

Although you don't have to unsubscribe from coverage options to save money only, there are times when it doesn't make sense to get additional coverage. A classic example is collision coverage. If the value of your car is very close to the deductible, you may not receive compensation from the insurance company after the loss.

Let's say your car is worth $ 1,000 and your discount is $ 1,000. If you are in an accident and your car is damaged by $ 800, you will not receive insurance compensation because your discount will cover the full cost. It is always important to determine the types of coverage that are best for you, especially if you have a low-value vintage car.

Shopping around

Risk is not the only factor that auto insurance companies use to calculate their average. Many insurance companies also use "price improvement," which means they set prices based on how much customers want to pay.

Large insurance companies analyze a large amount of personal customer data, such as social media posts, credit scores, and even online shopping habits. They then run the data through a proprietary algorithm to estimate the probability that you purchase or renew your current policy each year. By doing this, they can increase their premium enough to increase their profit margins without attracting your attention and your purchase requirements for a new policy.

Buying every year or two is the best way to avoid this practice and will help you find the cheapest auto insurance options. For most auto insurance companies, getting a quote is an easy online process that can be done in minutes. You only need to provide information such as address, vehicle information and driving record. Even if you love the current auto insurance company, you're likely to be aware of your online activity, so the more quotes you get, the less likely you are to point out that you won't jump to get a better deal.

Consider discounts

If you want a policy that has a lot of additional coverage, the final price can be a bit confusing. Especially when you think car insurance is not something you actively use every day. One way to reduce this financial burden is to take advantage of discounts offered by discount providers. When you go shopping, find discounts that suit your needs. Here are some common discounts offered by most service providers:

Defensive driving discount
Good driver discount
Low mileage discount
Safe driver discount
Multiple driver discount or multiple policy
Are there any student discounts?

How does car insurance work?

Auto insurance is the way you pay for damage after a car accident - damage to you and your car, and in some cases, to other drivers' cars.

In the event of a collision or accident, the withholding amount is the amount you pay before your insurance company enters to cover the rest. The higher the deductible, the more you will have to pay before the document becomes effective. For example, if the deductible is $ 1,000 and you have $ 1,200 damage to your car after the collision, you will pay $ 1,000 and the remaining amount will be covered by insurance.

After the collision, you are not paid to cover damages automatically. You must file a claim. Start by calling your insurance agent, regardless of whether you are wrong or not. You will need to keep all medical documents or invoices and take pictures of the damage to your vehicle. The claims process should be somewhat painless, although you should always check to make sure you are satisfied with your return.

How to Choose the Right Amount for Car Insurance Coverage

The minimum auto insurance in the state in which you live. You have to know it to drive legally. This minimum is established to create an insurance baseline to cover all drivers on the road, so it may not be the ideal amount to cover your case. In some cases, the minimum coverage will not be enough to protect you from financial ruin if it causes a car accident or barriers. It is important to understand how much coverage you need before you start buying a policy.

The mandatory coverage you must have is: physical injury and property damage. Although there are additional coverage options that may be appropriate and can prevent you from paying thousands of dollars out of pocket if you are involved in or cause a car crash.

Liability for physical injury.
Car rental coverage
Uninsured / Uninsured Driver Coverage
Collision insurance
full insurance
Protection against personal injury.
Liability for property damage
Secure the gap
New car replacement

Below is a comparison of the coverage provided by our top auto insurance companies and a breakdown of each type of coverage. Please note that not all coverage is available in all states.

Full coverage versus selecting the minimum required coverage

You should compare prices that contain more than the minimum coverage required in your state to get a better idea of car insurance costs. Here are the top 10 most populous states and the difference in average annual premiums between the full coverage policy and the state's minimum requirements. You will notice that the annual total coverage rate is significantly higher in each state. But the universal auto insurance policy is not something you should choose not to save only on money. You don't want to be uninsured after a collision.

National Car Insurance Assessments and Industry Statistics.

Some insurance companies only serve these regional areas, such as the New York Central Mutual and the Texas Farm Bureau. Others, like Allstate and State Farm, sell auto insurance to customers in all fifty states.

When choosing an insurance company, think about the advantages and disadvantages of regional and national service providers. Regional service providers often outperform national options because they have fewer clients, allowing them to allocate more time to each document holder. So if customer service and actor availability are important to you, a regional option may be best for you.

However, since regional insurance providers have fewer clients, they also tend to get higher premiums and lower discounts. Domestic providers win on price, with cheaper premiums and discounts that help save money. Most service providers across the country have an online experience, which can be a problem for some document holders.

Top 10 Car Insurance Companies by Market Share

Here are the top 10 private car insurance companies for the Insurance Information Institute and their market share, according to 2019 statistics. State Farm owns the majority of the market share in written premiums in 2019 with 16.1% , which is likely due to high customer satisfaction and first-class claim processing.