8 Best Car Insurance Companies

8 Best Car Insurance Companies

What Is Car Insurance and Why Do I Need It?

Vehicle and auto insurance is a legal requirement in the US. Only three states (Virginia, New Hampshire and Mississippi) do not require the vehicle owner to have car insurance.

However, even in these states, a fee or cash bond must be paid to the state’s respective administrative board.

Vehicle insurance protects the user from any financial liabilities after a collision where the owner of the insurance was not at fault.

It also allows car owners to make claims against other parties. If you have suffered physical damage during a collision, you can seek compensation.

According to data collected by the Chartered Financial Analyst (CFA) Institute, car insurance brokers paid 67 cents for every US dollar of a claim from 2016 to 2019.

If you are involved in an accident and do not have insurance in place, there will be serious repercussions.

Firstly, it is likely that you will be breaking the law. If the accident is your fault, you may be sentenced to jail. If it is not your fault, you will incur a fine, and you will have to fund all the compensation from your own pocket.

There are different levels of protection that offer the user varying benefits. Minimal cover may not cover the driver from any accidental damage to their vehicle.

In this article, we will outline the levels of cover to look for and the types of insurance deals best suited to your car. We will also outline eight of the best car insurance companies in the US today.

What to Look For in Car Insurance

Here are the best things to keep in mind when signing up for car insurance.

Company Stability

Checking how long the company has been running for and the return on its policies is an essential part of choosing car insurance.

You must be sure that you are choosing a reputable company that is stable. If it is not, the car insurance you sign up for may falter.

Choose an insurance broker that has been running for a long time and that offers other products.

If they can sustain other insurance packages that apply to housing and health, for example, it is likely the business is well developed.

Assure that they are an authorized broker as well. If you are dubious about the credentials of an insurance broker, it is best to look elsewhere.

Level of Cover

There are six types of car insurance in the US; three are primary and three are add-ons:

  • Liability – Pays for the other party’s expenses after an accident and is required in most states
  • Collision – Covers the costs of repair after an accident, no matter who is at fault
  • Comprehensive – Covers the cost of damage to a vehicle even if it was caused by an accident
  • Personal injury protection – Pays for all the medical expenses after an accident
  • Uninsured motorist – Covers vehicle damage and medical expenses after an accident with an uninsured driver
  • Medical payments – Pays only for the direct medical expenses caused by an accident

The first three policies are usually required in most of the states where car insurance is a legal requirement.

Collision is the most basic type of cover, while comprehensive is more detailed.

The final three categories are required by law in some states, but they are not a legal requirement across all the states where you need car insurance.

The type of coverage of the policy package you choose depends on where you live, what you are using your car for and the type of vehicle you drive.

For example, if you are traveling between different states for work and use your car extensively, you may want to choose a package that contains all possible legal requirements.

However, if you do not use your car much and don’t drive outside of a state that only requires liability cover, this may be a better option.

Analyze how you use your vehicle to choose the best level of cover.

Claim Payments

Check how often payments are made on claims and how much compensation on average a policyholder is entitled to.

It is also a good idea to check what they have paid out on and how easy it is to make a claim.

If the claim process is difficult and rarely pays out, the payment protection offered by the insurance broker is not worth it.

Find insurance brokers with clear payout policies. Looking up the reviews of an insurance broker will help you determine how easy this process has been for previous customers.

Customer Service Ratings

Choose an insurance broker with a good customer service network.

Accidents and collisions are stressful enough. You do not want to be dealing with an incompetent support network.

Check how you can report accidents or make a claim, how easy it is to make changes to your policy and reviews from other customers.

A good insurance broker makes sure that its customers can easily report any problems.

Costs and Bonuses

The cost of a policy is the first factor most people take into consideration.

If you are looking for the cheapest deal, ensure that you are getting the coverage that is legally required in your state.

You may also be entitled to add-ons with your policy. Some insurance companies provide packages that offer a range of bonuses, including:

  • Key coverage
  • Complimentary vehicle coverage in case you break down
  • Breakdown coverage

Insurance price comparison sites are the best way to compare policies from different insurance companies.

8 Best Car Insurance Companies

8 Best Car Insurance Companies
8 Best Car Insurance Companies

1. USAA

The auto coverage services that USAA offers save customers $725 on average per year.

They also have great customer service options. Their online updates and chat facility are available 24/7.

USAA prioritizes ease of use and access with the policies you sign up to. With USAA mobile, policyholders get access to all proofs of their insurance coverage.

You can also add other drivers to your policy, making it a great insurance broker for families.

Getting a quote is easy, and USAA proves to be one of the most competitive insurance brokers for price.

U.S. News & World Report named USAA the cheapest insurance company in the US for the last three years.

Visit USAA

2. Confused.com

The price comparison site is one of the most renowned services in car insurance.

Users can get a quote in less than five minutes, plus access to a range of discounts and rewards.

Approximately 96% of Confused.com users recommend the site, and the reviews highlight how easy the service is to navigate.

There are over 120 trusted brokers to compare on Confused. All of them have a good existing record and are stable brokers.

Confused.com also provides great advice to first-time buyers. It is a great tool for learning more about how you can be savvy with car insurance.

There is also access to utility services. Through Confused.com, you can compare the prices of different electricity providers, broadband providers, and even your mobile phone provider.

If you have specific requirements, Confused.com is a great place to explore these options too.

For example, if you own a heavy vehicle like a truck or motorhome, you can check the insurance prices at Confused.

It is a one-stop shop for all auto insurance providers.

Visit Confused.com

3. Hastings Direct

Hastings Direct specializes in car, van and bike insurance, but you can also get home insurance.

Managing your insurance accounts through Hastings Direct is made as simple as possible. All of your policies can be managed under one account online or through the mobile app.

Hastings Direct also judges your driving to determine a fair quote on the price of your insurance. The Hastings Direct Youdrive app is an innovative way to arrive at the best price for you.

Most insurance providers come to a quote from a list of questions, but Youdrive determines your prices by your actual driving ability in real-time. This is a great tool for conscientious drivers.

They have also maintained a Defaqto five-star rating since 2012 and have customer service available for 24 hours.

Visit Hastings Direct

4. Tempcover

Temporary auto cover is a great option for people who are traveling abroad or have a vehicle for a fixed amount of time.

Tempcover gives customers the option to choose insurance policies that can be decided down to the hour.

It has a staple of excellence on Trustpilot with over 18,000 reviews and has been operating for over a decade.

They also offer temporary van and bike insurance.

Getting a quote from Tempcover is simple. All you need is the vehicle’s registration details and the amount of time you intend on using the vehicle.

It takes around two minutes to get a quote. Tempcover is one of the quickest ways to get insurance for temporary transport.

Visit Tempcover

5. AAA

The American Automobile Association (AAA) started off as a roadside assistance company. It has developed into a competitive insurance broker with great prices and high customer satisfaction.

AAA has over 50 branches across the US. Help is at hand, whichever state you reside in.

In 2018 it was included in the top 25 insurance companies by the National Association of Insurance Companies (NAIC).

Membership to AAA costs around 50to50 to 100 annually and comes with a range of benefits. Full coverage includes:

  • Bodily injury liability
  • Property damage liability
  • Collision insurance
  • Personal injury protection

Discounts are applied to policyholders who have taken insurance on a second vehicle and who are safe drivers.

They also offer options for students and have a package called teen driver training. This prioritizes new and inexperienced drivers.

The AAA has transformed itself into one of the most specialized insurance brokers. Their packages can be a little more expensive than others, but they are comprehensive and will cover all your needs.

Visit AAA

6. Gocompare

Like Confused.com, Gocompare offers price comparisons on registered insurance companies. They specialize in car, home, pet, life and even motorhome insurance.

It is one of the easiest platforms to navigate, and users can get a list of quotes in under 10 minutes.

It has a rating of 4.8 out of five stars based on over 32,000 reviews on Trustpilot. Gocompare ensures its customers have easy access to customer service.

It also boasts having over one million customers. Gocompare is one of the most used price comparison sites for insurance policies.

They include over 140 insurance providers, and each of them has specialties to fit with the policy you are looking for.

You can set up for auto-renewal and save your search options. This spares users from going through the process of looking for policies each year.

Visit Gocompare

7. Carole Nash

Carole Nash insurance specializes in motorbike insurance, but also car and other vehicle insurance options.

You can get a quote completely free. Some of their bonuses include rider cover and breakdown cover.

They have been operating for over 30 years and pride themselves on their call-center expertise. Customers will not be left waiting without a policy or help.

They mostly operate out of the UK but have features such as European breakdown cover so that their policyholders can be covered wherever they travel.

Visit Carole Nash

8. 1st Central

1st Central is a growing insurance company that is quietly on the rise. It offers 24-hour customer service options and has over 1,000 dedicated staff members to help you.

The car insurance policies have fantastic reviews. 1st Central is a market-led broker, so they give extra attention to what their customers are saying.

Some features include a courtesy car when using their approved network and no-claims discount.

If you need to make a claim, they have staff at hand, so you can do this at any time.

Discounts are provided on multi-car insurance and if you need to insure someone else in the same household.

1st Central specializes only in car and auto insurance, so they are good at the specifics. If you have felt underwhelmed by insurance brokers in the past and need some expertise, 1st Central may be for you.

Visit 1st Central

Final Thoughts

Choosing the right car insurance is dependent entirely upon your personal preferences and how you use your car.

Ensure that you analyze beforehand what you use your vehicle for, the mileage you cover annually, and even the cost of the car without any modifications.

Most comparison sites and insurance brokers will lead you through these questions, but it is good to get an idea for yourself beforehand.

Once you are ready to choose an insurance provider, decide what you are looking for. You might need excellent customer service, specialized expertise or even just to be able to browse the market.

The eight insurance providers listed above give you all these options. Take the time to work through their websites and pick the best provider for your needs.


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