Affordable car insurance may be in the eyes (and pocketbooks) of the beholder. Here are a few leading providers in several categories
When you start looking for affordable car insurance companies, you may think that you have to sacrifice quality in order to get insurance at prices you can afford. Luckily, this is not the case. In fact, some of the nation's leading car insurance providers offer customers some of the most affordable rates. In these cases, affordable car insurance doesn’t have to translate to cheap insurance.
Low-cost specialty companies
According to the U.S. Census Bureau and the Federal Trade Commission, there are more than 2,000 companies licensed and registered in the United States to sell and service car insurance. Given that broad range of options, it’s no surprise that there are some companies that have decided to focus on the niche market of low-cost, no-frills car insurance coverage. States license and regulate car insurance companies and states also set minimum required levels of car insurance for licensed drivers. Most of these no frills insurers peg the coverage they offer to these state minimum levels and promote themselves heavily to younger drivers (who typically pay more for coverage) or to drivers that have had a licensed suspended due to an accident, a serious violation, or even a past DUI conviction.
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While you probably can’t count on getting exemplary service with these low-budget companies, some are actually subsidiaries of larger, more full-service insurers and you may be surprised at how many service features flow downhill from the larger parent company to these affordable providers:
Safe Auto Insurance – this company makes no bones about what its target audience is. It promises to affordably put you in compliance with your state’s insurance requirements. There is a very youthful demographic they openly court, starting with the selection of former Saturday Night Live cast member Norm MacDonald as its chief spokesperson. The company sponsors college events (like fraternity and sorority bowling tournaments) and invites customers to post selfies and even music videos of unique versions of the company jingle in offbeat and unexpected settings.
The company also heavily cross-promotes with the burgeoning Mixed Martial Arts (MMA) leagues and events. The rates for coverage with the company are low, but there isn’t much infrastructure to rely on for follow-up and claims management. (They are also one of the few national carriers routinely servicing those hard-to-insure markets like drivers with previously suspended licenses.)
Titan Insurance – this is a subsidiary company of Nationwide and it seems to be focused on the hard-to-insure and the low-rate market of drivers just seeking the legally required minimum levels of coverage for their state. They offer direct sales in 23 states and while it can be hard to find one in certain areas, they do have storefronts and agents available in many of the markets they do business in. The company website stresses its ability to get young drivers hooked-up with low cost insurance. They also have extensive details online (including a number of client testimonials) stressing its ability to insure the hard-to-cover drivers.
The General – it’s hard to miss this insurer’s television commercials featuring the short little, white-mustachioed army general barking about low rates for coverage (especially if you’re an insomniac using late-night television to try to get to sleep.) This mostly online car insurance provider is a wholly owned subsidiary of American Family Insurance.
While it does write car insurance policies directly, it primarily serves as an online broker sending you multiple car insurance quotes from itself and other carriers. The General stresses its ability to find you low-cost car insurance that will meet the minimum requirements of your state, with particular emphasis on low down payments and flexible payment options.
Esurance – another subsidiary provider, Allstate wholly owns this primarily online resource. It offers direct-to-consumer car insurance coverage in 42 states. While keeping nearly everything online allows them to offer very competitive rates, they don’t completely skimp on options. There isn’t the heavy emphasis on minimum requirements with Esurance. In fact, this provider stresses its ability to get you higher levels of coverage at affordable rates. The provider is currently taking a jab at some of its competitors that suggest you can get competitive quotes in 15 minutes by stressing that it can deliver you quotes in 7-1/2 minutes. Esurance offers a full range of coverage options, innovative discounts and an online customer service feature it calls its Coverage Counselor. Oddly enough, Esurance often outranks its parent company (Allstate) in surveys ranking value, affordability and customer service.
Some regional options
Your state may have a number of very good and affordable insurance companies based right there that can get you full coverage at good rates. In fact, there are a couple of regional car insurance companies that not only rank well on surveys for affordable car insurance coverage, they routinely outclass some of the larger, national firms for claims processing and overall customer service.
Erie Insurance Group – this is one of the larger regional insurance companies in the country, started in 1925 and still based out of Pennsylvania. It has an excellent reputation for value and service. Erie is also loved by its customers. It offers a full range of insurance products and services in 11 states plus the District of Columbia.
In its most recent annual report on car insurance companies, J.D. Power & Associates and A.M. Best scored the insurer 89 out of a possible 100 points. It routinely has some of the fewest consumer complaints logged against it and when current customers were asked if they would recommend the company to family and friends and if they plan to renew a current policy when the time comes, 90-plus percent said yes to both questions. The company also features an impressive and growing list of car insurance discounts it offers customers.
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Auto-Owners Insurance – perhaps the nation’s largest regional car insurance provider, this company sells a full range of insurance products and services in 24 states (mostly in the Midwest.) This insurer ranks number three overall on the J.D. Powers/A.M. Best list of affordable car insurance companies based on customer satisfaction. It features some very innovative add-ons, including specific car insurance coverage for pets injured in a car accident. It also offers a fairly generous new car replacement option.
Other leaders in service and value
When it comes to finding affordable car insurance with one of the nation’s largest car insurance companies, the task isn’t as impossible as it may seem. This is a highly competitive market and insurers are always looking for ways to keep customers with them for a long time. Excellent service is one key, as is the extension of car insurance premium discounts. Here are some bigger players still offering that local touch:
USAA – this company is the fifth or sixth largest car insurance company in the county (depending on the survey) but it acts like it just got started. It consistently outranks companies far larger than it in surveys on customer satisfaction and value. In fact, the J.D. Power/A.M. Best survey gave it 99 of a possible 100 points in its latest survey. Perhaps one reason is that it is somewhat elite in that you have to qualify for membership to have access to its insurance products. USAA is dedicated to fulfilling the insurance and financial planning needs of current and retired members of the armed services (and immediate family members.) It’s one way it can keep a lid on costs and extend that savings to its customers. It offers convenient claims processing and a full range of coverage options and generous discounts. It offers a convenient mobile app, 12-month insurance policies and accident forgiveness with all of its plans.
MetLife – Snoopy seems to smile on these drivers as MetLife customers are finding more and more affordable options with this company. Drivers who buy insurance through this company have the opportunity to get a vanishing deductible (a feature which decreases your deductible for certain options for every year of safe driving) and this insurer has some impressive discounts, especially when you combine different types of insurance in a single, bundled package.
Amica – this is another national car insurance company that outperforms its ranking for size. One advantage that Amica has over some of its competitors is its structure. Amica is the nation’s oldest mutual car insurance company. As a mutual insurer, the company doesn’t have “shareholders” in the traditional sense. Customers are shareholders and at the end of each year, dividends are issued to customers. These dividends can then be redeemed as cash or can be credited toward discounts on products (like car insurance.) In the past ten years, Amica has issued dividends to car insurance customers roughly equivalent to 20 percent of the annual premium they pay (and that’s on top of the generous discounts Amica customers can apply for up front.)
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The Hartford – one of the oldest insurance companies in the country, this provider has lost substantial ground to some larger companies in recent years, but it still provides a full array of car insurance coverage options. It also ranks well in annual surveys for customer service, claims handling and value.
One caveat about the affordability of car insurance purchased through The Hartford: the best deals are found in the car insurance plan The Hartford underwrites and supports for members of AARP.
One of the best ways to ensure that you are getting the most affordable car insurance coverage you can is to compare car insurance on a routine basis. The growing number of websites and online quoting tools makes this much easier. Of course, spending some direct time speaking with a local, licensed car insurance agent is another way to be sure all your questions are answered and that you can see some sample coverage plans before you have to buy. You can even take the results of your online research with you and challenge an agent to meet or beat the rates you’ve found. Reply! can be of some assistance in this endeavor as we can connect you to local car insurance professionals dedicated to getting you the broadest and most affordable coverage available to you.