The following are the main types of car insurance coverage:
– Required Insurance Coverage:
– LIABILTY auto insurance, to pay for damage to the cars and property of others, and bodily injury to others, that you cause.
– UNINSURED MOTORIST coverage, pays for medical bills for you and your passengers if you’re harmed by someone without auto insurance.
– (PIP) personal injury protection, in states that have “no-fault” insurance laws, pays your medical bills no matter who caused the accident.
Optional – but important – Insurance Coverage:
– COLLISION insurance coverage, pays for repairs of damages to your insured car, regardless of fault – even if you back up into a pole.
– COMPREHENSIVE insurance coverage, protects you from theft and vandalism, and non-collision types of damage – such as flooding and falling objects.
– Accident forgiveness coverage: If you cause a car accident, your insurance company will “forgive” the accident and your insurance premiums won’t increase. This is typically limited to one forgiven accident per policy for a certain amount of time.
– Gap insurance: If your car is totaled, gap insurance covers the difference between what you owe on a car loan and what your car is worth.
– Rental reimbursement insurance: Pays for a rental car or substitute transportation while your car is being repaired under an insurance claim.
1) Amica Insurance: Ranked second highest for overall auto claims satisfaction in 2020. “Advantage Points” program for good driving, renewing a policy and referring other drivers. These points can be used to keep your current rate even after an accident. Amica also offers free glass repair, free lock replacement and free airbag repair after deployment.
2) Allstate: This insurance giant ranked eighth overall for claims satisfaction. They offer a variety of discount programs, plus a strong personal service attribute provided by their large network of local agents and claims offices.
3) Chubb Insurance: Specializes in insuring high-end cars and high income individuals. Collision coverage will pay for repairing your car with original manufacturer-made parts and you can even get extra high liability limits, up to $10 million.
4) Farmers Insurance: Personal service provided by a network of local agents. Discounts available for students with good grades and members of certain professional groups. Discount also available for bundling other insurance (such as home owner’s) with them.
5) Geico: Ranked first in overall customer satisfaction in many regions of the U.S. Many discount programs offered, especially for government employees, active military and veterans. They also offer mechanical breakdown coverage for newer cars.
The best auto insurance company for you may not be one of the large, national insurers. There are some smaller, regional based companies that also offer good coverage, service and rates. The following are the best of these regional companies:
– Auto-Owners Insurance provides coverage in 26 states in the middle of the country.
– Erie Insurance Company does business in the Northeast, Midwest and Appalachian regions.
– NJM Insurance Group is only available in Connecticut, New Jersey and Pennsylvania.
The price of auto insurance varies from company to company. Of course, you should not select a company by price alone, but also strongly consider the company’s ratings and reputation. Having a cheap premium won’t be so great if the insurance company won’t pay a claim or cancels your policy right away after any claim.
The companies with the lowest average cost:
USAA; Erie; Auto-Owners; State Farm; Geico and Progressive
The companies with the highest average cost:
Farmers; The Hartford and Allstate
Also, remember that with any company you can reduce your cost by not buying any unnecessary “fluff” coverage and by choosing higher deductibles.
– Newer or younger drivers should shop around carefully, as many insurance companies will charge much more for these types of drivers.
– Keeping your car in a garage, or at least parked off the street, can often reduce your insurance costs.
– Most car insurance coverage will not protect your personal belongings left in the car.
– Some car insurance includes roadside assistance / towing coverage. However, if you belong to an auto club, you should not spend extra for this.