For millions of drivers, auto insurance is essential to protect you and your finances.
In fact, auto, health, and homeowner’s insurance are commonly considered among the top coverages Americans should have. Those policies can help people avoid major financial losses or bankruptcy due to events such as accidents, health problems, and other disasters.
To help get the best car insurance, experts suggest customers should shop around, examine how they are being served, how quickly questions on coverage and claims are answered and what services are provided.
Insure.com just ranked the best U.S. auto insurance companies for 2021. The independent consumer website reported USAA, State Farm and Auto-Owners respectively captured the top three spots. The website’s findings were based on a survey of 3,274 current customers. In its survey, Insure.com asked respondents about their auto insurer overall and questioned them on many subjects. Those topics included claims, pricing, customer service, website and app and if they would recommend the insurer.
The website recommends when selecting an insurer, find one that meets your needs but do not overpay. Insure.com ranked 15 major carriers to help find the best insurance companies. To do that, it examined companies’ customer service metrics. It also asked policyholders to talk about their experiences.
And while price is significant in selecting a car insurer, Insure.com reports it is essential to know you are being served right if you must file a claim. Learning if members would recommend policies and if they plan to renew coverage are key indicators to show a person’s satisfaction with their company and coverage.
In another survey, “The Average Cost of Car Insurance in 2021,” The Ascentdivulged some interesting and stunning findings. For instance, the financial product website revealed that a low credit score is nearly as bad for your insurance rate as driving under the influence.
Some of The Ascent’s other top findings include:
- The average car insurance is $1,569 for a one-year, full-coverage policy.
- Teens pay the most for car insurance, totaling more than twice the cost of any other age group.
- People in their 50s have the lowest car insurance, paying an average annual full-coverage rate of $1,365.
- Young male drivers pay higher rates than young female drivers, yet there is little difference by gender for motorists 25 and older.
- Hybrids are the costliest type of car to insure with sedans being next.
- USAA has the lowest car insurance rates at $885 per year, followed by Geico and State Farm.
The Ascent reported it’s crucial to compare auto insurance rates, claiming the right choice could mean hundreds of dollars in savings.
They can choose insurance companies that offer lower prices and adjust coverages depending on whether they want more protection or a cheaper plan. For example, they can also work on improving credit to qualify for the best possible rates. Every driver should get multiple auto insurance quotes.
And, of course, drivers control how they drive, which is often the most important factor in the cost of their car insurance policy. The ones who follow the rules of the road and avoid accidents benefit in the long run by scoring cheaper insurance.
How To Choose The Best Car Insurance
Here are some tips to be mindful of when shopping around for car insurance, based on information from The Ascent, Insurer.com and research by BLACK ENTERPRISE.
1. Try to get lower auto insurance costs by selecting an insurer that offers lower prices and adjust coverages depending on whether you want more protection or a cheaper plan. Keep in mind the better your credit score, the greater your chance to get the best rate.
2. The safest drivers — those who follow rules and avoid accidents – typically win by getting less costly auto insurance.
3. Do your homework on customer service and claims handling. Check the company’s reputation for being responsive to customer needs, along with being prompt in taking care of your claim hassle-free.
4. In terms of discounts, do not just look at how many offered. Instead, focus on which discounts are best for your situation. For instance, if you qualify for low mileage, student away, multi-car, occupation and safe driver discounts choose a company that offers all that. Also, be sure to ask about all available discounts. For instance, you may be able to get a discount if your vehicle has antilock brakes. See if you can get a discount if you do not drive your car often or if you take a defensive driving class. Ask for a list of all discounts to see if you qualify.
5. Check with the A.M. Best rating agency to learn if the insurer you are pondering has the financial resources to pay claims.
6. Compare pricing and options. After deciding how much coverage you need, compare quotes from at least three companies to see who has the best rates. Be careful as some carriers may have big discounts but a higher base rate, making it more costly than others. One perhaps is a bit cheaper and has the same coverage versus the others, potentially saving you money going that route.
7. Be aware there are four basic kinds of car insurance coverage. They are property damage liability, bodily injury liability, collision, and comprehensive. Carefully do your homework or discuss with a professional which one fits your circumstance. You might also want to see if you have protection against an uninsured or underinsured driver in an accident caused by such motorists.
9. Pass on towing insurance. A better option is perhaps is to join an auto club like AAA. Along with towing, you may qualify for roadside when needed.
10. Ask about bundling. Some insurance companies offer nice discounts to protect all your property with one insurer. Multiple-policy discounts can apply to combinations of home, auto, and life, and even potentially to motorcycle insurance.