Top 10 Auto Insurance Companies: A Great, But Hardly Comprehensive List

While there are dozens of high quality auto insurance companies out there, they can’t all make the top 10. Therefore, when Yahoo! released just such a list on Thursday, there were several exclusions. Of the ones that did make it, there were some pretty familiar faces. In fact, for the third year in a row USAA was named the best auto and home insurer in the country. 

It was closely followed by State Farm, another mainstay, at number two, and then Farmers, GEICO, and the Auto Club of Southern California, rounding out the upper five.

 

Methodology

Each company was ranked based on claims processing and customer recommendations. These totals were combined for an overall score.

According to the Yahoo! Report, surveys were conducted among 3,835 insurance customers nationwide in February and March 2014 to collect 9,586 company reviews.

Only current customers of insurers were surveyed. The survey was not open to the public. “We collected reviews for auto, home, health and life insurance carriers,” the report stated. “Consumers answered questions about their levels of satisfaction with their insurers, and each answer was assigned a point value. Points were then averaged and totaled for each company.”

 

Here’s the full breakdown:

1. USAA

Overall score: 93.9

Claims processing: 4.5 stars

Customers who recommend: 83%

 

2. State Farm

Overall score: 92.7

Claims processing: 4.5 stars

Customers who recommend: 81%

 

3. Farmers

Overall score: 91.5

Claims processing: 4.5 stars

Customers who recommend: 74%

 

4. GEICO

Overall score: 91.1

Claims processing: 4.5 stars

Customers who recommend: 75%

 

5. Auto Club of Southern California

Overall score: 90.5

Claims processing: 4.5 stars

Customers who recommend: 81%

 

6. Nationwide

Overall score: 90.5

Claims processing: 4.5 stars

Customers who recommend: 76%

 

7. Liberty Mutual

Overall score: 90.2

Claims processing: 4 stars

Customers who recommend: 74%

 

8. Allstate

Overall score: 90

Claims processing: 4 stars

Customers who recommend: 78%

 

9. American Family

Overall score: 89.5

Claims processing: 4 stars

Customers who recommend: 76%

 

10. The Hartford

Overall score: 89

Claims processing: 4 stars

Customers who recommend: 76%

 

What To Keep In Mind

Even though satisfaction ratings are higher for some than others, keep in mind that these ratings were taken among just 15 of the largest insurers in the nation. In other words, it wasn’t all inclusive, and it’s definitely not indicative that your experience through any of the ones represented on this list will be better than the experience of using a smaller carrier. It could be, but it’s not a given.

What the list does show, is how effective these larger companies are at pleasing their clients. To that end, the top 10 does very well, and it’s made doubly impressive by the fact that they’re juggling more claims and more customers. However, small carriers can also deliver quality customer service, fast claims processing, and a willingness to stand by their clients.

Think about it as you might the differences between small colleges and large universities. You can get a great education at either place. While smaller schools excel at personalized care, and thus boost their students’ learning experience through more one-on-one instruction, larger universities attract top talent and give students more opportunities than a lot of smaller schools.

If you value one-on-one care, then you might prefer a smaller provider. But if you prefer the peace of mind that one of the larger companies provides than a USAA or State Farm is a great choice.

 

In Summary

Ultimately, there is great care to be found at both large and small auto insurance companies; but knowledge is the most valuable resource you have at your disposal. In other words, know what your policies cover and what your pricing options are. By empowering yourself, you can have a lot more than 10 quality choices for your insurance needs.

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Farmers - The Hartford - State Farm - Kemper Direct - Nationwide - Allstate - New York Life