Who Has the Best Car Insurance?
In addition to determining the best car insurance companies overall, our survey helped us determine how these companies stack up in five key areas. We identified the companies with the best customer service, claims handling and customer loyalty. We also noted the companies that policyholders are most likely to renew with or recommend to a friend.
USAA swept all five of these subrankings in addition to taking the top spot in our overall ranking for the Best Car Insurance Company. However, not all policyholders will meet USAA’s membership requirements. For that reason, we’ve identified the runner-up in each category so that all consumers can learn about the best option in each of these areas.
We asked policyholders to rate their experiences with their insurance companies on a five-point scale and explain their reasoning. Respondents were split into two groups, those who opened a policy in the last five years and those who filed a claim. The latter group was asked additional questions about their satisfaction with the process during and after filing the claim, as well as their satisfaction with how the claim was handled.
This information was compiled into the subrankings below to determine the company with the best customer satisfaction in specific areas.
Best for Customer Service: State Farm
If you don’t qualify for USAA but customer service is your top priority, check out State Farm. Our survey shows that State Farm customers are generally happier than customers of rival companies.
One of State Farm’s specific advantages is that many areas have local offices. This provides a more personal customer service environment when compared against insurers that offer primarily phone- and web-based interaction. One survey respondent noted, “I know if I ever have a problem, I can visit their office and speak face to face with an actual person who is a member and supporter of our community.”
Best for Claims Handling: Nationwide
The best possible outcome with car insurance is that you’ll never have to use it, but that’s unlikely. When it comes time to file a claim, Nationwide is the best choice for consumers who want a claims process that’s as pain-free as possible. Of survey respondents who had filed a claim with Nationwide, 76% were completely satisfied with the ease of claims filing, 62% were completely satisfied with claim status updates, and 74% were completely satisfied with the claim’s resolution.
Best for Customer Loyalty: State Farm
Our survey’s scoring methodology measures customer loyalty based on the answers to a range of questions. After USAA, State Farm enjoys the best customer loyalty of the companies in our rankings, with generally high scores and positive customer feedback. Survey respondents noted competitive rates and good customer service as highlights of the State Farm experience.
Most Likely to be Recommended: Geico
Our survey shows that Geico customers are most likely to recommend this company to friends and family. This is an excellent measure of overall customer satisfaction. About 41% of survey respondents who had not filed a claim said they’d be very likely to recommend Geico, and of those who had filed a claim, that number went up to 49%.
Most Likely to be Renewed: State Farm
If a car insurance company retains most of its customers at policy renewal time, it’s doing something right. Our survey shows that aside from USAA, State Farm is best at customer retention, which indicates high satisfaction. About 61% of State Farm customers who filed a claim are very likely to renew their policy, and another 20% reported that they are likely to renew.
How Much Car Insurance Do I Need?
How much car insurance you need depends on how much coverage you are legally obligated to get, as well as how much coverage you need for your situation. Each state has certain legal requirements for car insurance, and not meeting them can result in negative consequences. Check out our car insurance state guides to see the legal car insurance minimums in your state.
A Snapshot of Our State Insurance Buying Guides