Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

Full Bio →

Written by

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

Full Bio →

Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 20, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Here's what you need to know...

  • One aspect that is very important when trying to choose the most reliable auto insurance company is financial health
  • Consumer satisfaction is another area that should be part of your consideration for putting car insurance companies on your preferred list
  • Financial health is extremely important because insurance companies must have resources to pay for injury claims for an auto accident

There are literally thousands of auto insurance companies in the United States.

Finding the perfect insurance company is often a matter of conducting research on your own and narrowing down the list until you have a few companies that offer exactly the products and services you need with the best financial protection possible at a good price.

Auto insurance ranking systems vary, depending on what is being measured. In most cases, information is available on the internet, so you can research a potential auto insurance company from the comfort of your own home.

Our FREE online car insurance comparison tool is available right now when you enter your zip code above to get started!

Financial Health

One aspect that is very important when trying to choose the most reliable auto insurance company is financial health. Insurance companies are financial organizations.

They use premiums from policyholders to invest and build their financial reserves. Financial reserves are important because they are what insurance companies use as a resource to pay claims filed by policyholders.

Financial health is extremely important because insurance companies must have resources to pay for injury claims for an auto accident. In 2011, many insurance companies were hit hard when tornados cause billions of dollars in damages in the United States. In the

In the southeast, in particular, insurance companies in strong financial health were able to pay claims quickly and efficiently.

By contrast, less financially stable insurance companies had difficulty paying claims and many went out of business entirely.

AM Best, Fitch, and Standard and Poor’s are independent agencies that monitor and evaluate the financial strength of financial institutions, including insurance companies. They publish their findings and rankings on their websites.

Insurance companies with superior rates have grades of “A++.” Insurance companies with excellent financial strength have grades in the “A” range. Insurance companies with good financial health are issued grades in the “B” range.

Insurance companies receiving grades of “C” or below are unhealthy financially. Grades are based on financial reserves, credit rates, financial policies and length of time offering insurance services and products.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Consumer Satisfaction

Consumer satisfaction is another area that should be part of your consideration for putting car insurance companies on your preferred list. Consumer satisfaction includes several different factors.

Customer service, claims processing and accessibility are usually included aspects of consumer satisfaction. The majority of your contact with an insurance company will be through the customer service department.

Claims processing is also important. Highly rated auto insurance companies have their claims automated. They allow you to file claims over the telephone, through their website or by talking to an agent in person.

Automated claims eliminate the need for a claims adjuster to view your car in person. Instead, your body shop can submit an estimate, receive authorization and submit bills online to your insurance company.

Insure.com recently published a consumer satisfaction survey which has been cited by Fox News and Forbes Magazine. Insure interviewed thousands of consumers around the United States about their auto insurance company experiences.

They evaluated claims processing, premium rates, and customer service. They also asked consumers about whether they would recommend their car insurance company to others and if they plan on renewing their auto insurance policy with their current auto insurance company.

Consumer Reports also regularly evaluates auto insurance companies. They publish their findings on their website and in their subscription magazine.

Consumer Complaints

Consumer complaints are another good measure of an insurance company. Almost all insurance companies have at least a few complaints filed against them.

Consumers often file complaints when claims are denied or they have difficulty getting a claim processed. Additionally, complaints can be the result of dramatic increases in premium rates for established customers.

The Department of Consumer Affairs regulates the insurance industry in every state. When you visit your state’s Department of Consumer Affairs website, you can find out if an insurance company can legally operate in your state.

Additionally, you can learn about complaints and lawsuits filed against an auto insurance company. The Department of Consumer Affairs investigates complaints and issues any disciplinary action if appropriate.

You can also find out about consumer complaints from the Better Business Bureau. The Better Business Bureau reports on consumer complaints from the public and helps individuals resolve problems. You can find out information about companies on their website.

Once you have selected several car insurance companies selected, it is time to start requesting car insurance rate quotes.

When comparing rate quotes, look at a minimum of three companies and consider all of the benefits they offer. Additionally, ask about potential discounts or if you can lower your rates by bundling car insurance with renters or homeowners insurance.

Car insurance is certainly not a “one size fits all” buying process. Look for auto insurance companies with high consumer satisfaction scores, strong financial health and low levels of consumer complaints.

Enter your zip code into our FREE auto insurance tool below to get quotes from reputable companies! With a list of companies that meet these requirements, you can make an informed consumer decision.

References:

  1. https://www.allstate.com/tools-and-resources/car-insurance/help-lower-auto-premiums.aspx
  2. http://www.ambest.com/home/default.aspx
  3. https://www.forbes.com/forbes/#18aba46937dc
  4. http://www.consumerreports.org/cro/index.htm
  5. https://www.bbb.org/
  6. http://www.latimes.com/la-homeauto-story4,0,4097410.story