Who are the Best Rated Car Insurance Companies?

Car insurance companies vary in terms of coverage, policy options, discounts, and even customer rating, so who are the best-rated car insurance companies?

Finding a list of car insurance companies is pretty easy, but understanding the ratings can be much more difficult.

Industry rating agencies such as A.M. Best, Standard and Poor’s, and J.D. Powers and Associates certainly provide a lot of insight into these companies, but for the most part, drivers can’t tell the difference between an A++, A-, or A rating (they are all A’s), and who are these rating agencies anyway?

Drivers are concerned with company reputation, and no matter what positive ratings a particular provider wins, most drivers will simply ask friends about the best-rated car insurance companies today.

This is especially true with the viral power of social media and can be clearly seen from the success of Geico car insurance commercials.

We use Geico car insurance commercials as an example since Geico does not advertise their ratings but simply attempts to connect with humor. Behind the scene, however, Geico is owned by Warren Buffet’s Hathaway Berkshire corporation and has solid industry ratings, but the bottom line is you probably have a friend who is a Geico customer and doesn’t have a clue how they are rated — except whether or not they provide good customer service and were there to pay a claim.

If you really want to dig into industry ratings, then view a car insurance comparison chart, but it’s probably safe to say you probably won’t learn much more except that many of the same car insurance companies you are considering relatively all look the same.

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How are industry ratings important?

Industry ratings certainly do play a big role for investors, and while most car insurance industry ratings may confuse many drivers, they can be used to identify weak car insurance companies. You certainly want to avoid any car insurance company with extremely low ratings.

Car insurance is only as good as the company who is behind you in the event of a claim, so choose one who will have your back.

Who are the best rated car insurance companies?

There are many different types of car insurance companies depending on your personal needs, so we have listed some of the best-rated car insurance companies here according to industry ratings and market share.

This is not a complete list of all the best car insurance companies, but it can help provide some guidance to possibly making your car insurance comparison search a little quicker.

Amica Mutual

The Amica Mutual insurance company won the J.D. Power’s 2010 award for “Highest Customer Satisfaction among National Auto Insurers”. What is noteworthy here is that Amica has won this award for 11 straight years and 9 for its homeowners insurance products.

USAA Car Insurance

Although USAA car insurance is closed to the general public (open only to members of the US military and families), they are still rated by J.D. Power and Associates. In 2010, USAA car insurance achieved the same recognition (five stars) in all categories as Amica Mutual. However, due to the restrictive access of their policies, they could not officially qualify for the award.

So in theory, USAA auto insurance also achieved a perfect score for “Customer Satisfaction among National Auto Insurers” but just didn’t walk away with a trophy.

Auto-Owners Insurance

In the same national study by J.D. Power and Associates, the Auto-Owners Insurance company was the only company to score a 4/5 in all categories, which included Overall Satisfaction, Contacting the Insurer, Policy Offerings, Billing and Payment, and Pricing.

State Farm

State Farm has almost a 20 percent market share of all car insurance policies in America with over 75 million policyholders and holds an A++ rating from A.M. Best based on their operational performance and finances, which is the highest possible rating any insurance company can attain.

Geico

Geico has almost $30 Billion in assets, and even though the company is owned by Warren Buffet’s Berkshire Hathaway corporation, you can rest assured the company has some of the strongest financial ratings around, including a A++ rating from A.M. Best and an AA+ rating from Standard and Poor’s strength.

Geico is the third largest car insurance company in the US with just over an 8 percent market share.

Allstate

With over a 10 percent market share Allstate also has attracted some of the best ratings in the industry, although generally lower than Geico and Allstate but still high enough to certainly make Allstate a worthy candidate for your car insurance needs.

Allstate car insurance ratings include an A+ rating from A.M. best and an AA rating from Standard and Poor’s.

Are these the best car insurance companies?

No. This is only a partial list of the best-rated car insurance companies, and ratings often change. There are more than 200 licensed car insurance companies nationwide, and many have high industry ratings.

Due to the personal nature of choosing a provider, it’s almost impossible to determine which car insurance is the best for any particular profile as there are many intangible factors that are never rated.

The best thing you can do to find an auto insurance company is to shop around, compare car insurance reviews, and ask friends and family members for recommendations. We can help you locate insurance providers in your ZIP code, but the choice of which company to use is ultimately with you.

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Written by:

Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Written by Jeffrey Johnson

Insurance Lawyer

Reviewed by:

Laura Walker

Licensed Agent for 10 Years

Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker

Licensed Agent for 10 Years

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