Consumer Reports Says These Are The Best Car Insurance Companies

Finding the right car insurance for you can be a tricky proposition. Every state in the United States — with the exception of New Hampshire — requires vehicle owners to have some level of car insurance, and even New Hampshire requires some proof of financial responsibility in a collision. There are big-name insurance companies like Allstate and State Farm, along with a plethora of regional insurance companies. When people have to sign up for a new policy, they need to consider how much they are paying for coverage, what services the insurance company actually provides, and whether they feel the company is being direct in communicating what exactly a particular policy entails, as it is not uncommon for a company to obfuscate what it actually does through jargon.

For some people, finding the cheapest car insurance policy available is all they care about, but for those who want to take all of these things into consideration, a great resource to help choose your next insurance policy is Consumer Reports. The publication has surveyed over 40,500 individual car insurance policyholders across 36 insurance companies about their experiences, and, by and large, people are not terribly happy with the service their insurance company provides, particularly those with coverage through one of the big-name national brands. Only a handful have earned a recommended designation from Consumer Reports, and here we are going to look at the top five car insurance companies based on the publication's findings, seeing what exactly these companies offer that sets them apart.

There is only one car insurance company that operates in all 50 states and Washington, D.C., that was able to earn a strong recommendation from Consumer Reports, placing fifth on its overall list: the United Services Automobile Association, more commonly known as USAA. Although it is available everywhere, that does not mean anyone can get a car insurance policy from the company. The only way you are able to qualify for USAA coverage is if you are an active member or veteran of the U.S. military. This eligibility also extends to the spouses, children, or widows/widowers of service members. Some federal agency employees, both current and former, may also be eligible for coverage. That may drastically reduce the number of people who can get USAA coverage, but for those who can get it, they are generally quite happy with it.

First and foremost, there are the savings. USAA policyholders surveyed by Consumer Reports have reported a median savings of $584 per year. These kinds of savings are massive for anyone, but particularly those with lower incomes. This certainly explains why USAA tied for first among policyholders who earn under $50,000 per year. USAA also offers other ways of getting discounts, such as bundling car insurance with a home insurance policy or being a military-bound student with good grades. Respondents also give glowing remarks regarding USAA's ability to handle claims effectively. Seniors also rank this as the best car insurance company. Although its eligibility pool is limited, there is very little evidence of poor customer satisfaction among those who can get USAA coverage.

At the number four position, we go from the most accessible car insurance company to the least with NYCM Insurance Group. If the NY in the name did not give it away, this is a company that is only eligible for people in the state of New York. While that means the vast majority of people reading this will not be able to get a policy with NYCM, those who do live in New York have an option that is generally well reviewed by those surveyed by Consumer Reports. Part of what makes it so well-liked is, in fact, its specificity. Respondents greatly appreciate how well the company handles claims, particularly regarding the specifics of the locale.

It being a smaller company with a limited clientele means that people are reportedly receiving personalized care. Policyholders are very positive about NYCM's customer service and its ability to answer any questions the person might have concisely, rather than being stuck on an endless loop of automated phone calls like other insurance companies put you through.

In terms of cost, NYCM does offer a number of discounts. These can range from bundling insurance policies, discounts for students with good grades and seniors, and discounts for those with a commercial driver's license. That being said, Consumer Reports has found that premiums have started to go up for policyholders, and there is no dividend policy for refunds, as many other companies provide. So, New Yorkers may be spending a little more on insurance with NYCM, but people seem to be pleased with what they're getting for the price.

If you have heard of Amica Mutual Insurance Company, the third-place finisher on Consumer Reports' list, you might assume that this is another company that is available all over the United States, but that is not exactly true. People can sign up for a car insurance policy with the company in every state (and Washington, D.C.) except for one: Hawai'i. Typically, an exclusion like that also means Alaska is out of the picture too, but you can still get Amica insurance there.

There are two major things policyholders have reported to Consumer Reports that they greatly appreciate about Amica. The first is its employees' attentiveness. Whether you need help with a claim or any other customer service, you will be greeted by someone who is responsive and helpful, which is not always the case with a big national brand like this. The other is that Amica puts together policies that are easy to process for policyholders. They clearly lay out what the coverage is without trying to dupe you. That is helpful considering Amica also offers home, life, umbrella, and other types of insurance.

Where Consumer Reports respondents push back on Amica a bit is with the price. Current policyholders have seen premium prices rise in recent years, and switching to Amica is about as common as switching away from the company. That said, this is a mutual insurance company, and dividend policies are available to get some money back for drivers in good standing, though these policies are not available in every state. Despite the potential costs, Amica customers are generally satisfied.

The top two car insurance companies on Consumer Reports' ranking are both regional institutions. In second place, we have NJM Insurance Group, the more limited regional option among the top two. NJM is only available in five states, all of which are around the Rust Belt area of the United States. They are Connecticut, Maryland, New Jersey, Ohio, and Pennsylvania. Like Amica, this is another mutual insurance company, and policyholders can receive dividend payments during profitable years. NJM also offers property and umbrella insurance policies as well.

Those surveyed by Consumer Reports have nothing but good things to say about the company. Policyholders appreciate that they are being sold their policies directly by the company and that they are presented with terms that are incredibly clear and concise. NJM also works with independent agents to make the insurance experience all the more personable for the policyholder. Among all respondents, NJM also had the second-lowest premium price increases among the companies in the survey, and people noted that the company generally had lower premium costs.

The only true downside of NJM is its regionality. All of these benefits sound great, but unless you live in one of those five states, you are not going to be able to get in on them. For those lucky enough to be in those states, though, they have an insurance option that Consumer Reports has found to be near universally liked.

Erie Insurance is ranked first on Consumer Reports' list of the best car insurance companies. This is another regional company, but it has a slightly larger footprint than NJM. It is available for car owners in 12 states and the DC. These are all on the East Coast of the United States and include Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Wisconsin. Coverage is also available in Washington, D.C.

There are two key places where Erie Insurance beats all of the competition in Consumer Reports' findings. This is the company that policyholders said handled their claims the fastest and most effectively. Nobody wants to deal with insurance claims for weeks, if not months, on end, and with Erie, people have found the process to be simple and quick. The other area where Erie ranked the best was in how small the premium price increases were. When price hikes are being seen in every single part of life, minimizing those increases is crucial. Erie also scored highly on policy clarity and customer service attentiveness.

There is one wrinkle with Erie Insurance, and that is you cannot get a quote online for a policy. Erie offers policies through a network of independent agents, and only they can provide an actual policy quote. Going to the Erie Insurance website just sends you to potential agents to set you up. This is certainly an oddity, especially with our ever-expanding reliance on the internet, but Consumer Reports has found that once people sign up with Erie Insurance, they are immensely happy with the service.