Best Car Insurance for 2020

Types of Coverages Offered

  • Pet coverage
  • Personal item coverage
  • Glass repair coverage
  • Roadside assistance
  • Rental car reimbursement
  • Locksmith coverage
  • Erie Rate Lock program
  • First accident forgiveness
  • Diminishing deductible program
  • New car protection
  • Better car protection
  • Rideshare coverage
  • Non-owners insurance

Discounts available

  • Safe driving
  • Car safety features
  • Multi-vehicle
  • Multi-policy
  • Reduced mileage
  • Young drivers
  • Annual payment plan

Further Reading on Erie Insurance

Factors that affect your insurance cost

State’s minimum requirements

Every state has a minimum amount of car insurance coverage that drivers are required to carry. The more coverage that’s required, the more expensive your insurance premium is. But even if you’re paying a higher rate, you can still take advantage of discounts that can help lower the cost.

Financial situation

When you file a car insurance claim, you’re required to pay a deductible before the insurance company reimburses you for the loss. Your deductible is an out-of-pocket cost, and the lower your deductible is, the higher your insurance premium is.

Vehicle

The vehicle you drive has a big impact on your car insurance rate. Certain makes and models, like SUVs and luxury cars, are much more expensive to insure than sedans. The age and mileage of your car will also affect your rate. Typically, newer cars with low mileage cost more to insure than older cars.

Driving record

Before you can buy car insurance, the company reviews your driving record to determine your past claims history and recent violations. If you have filed insurance claims in the past or have accidents or speeding tickets on your record, you can expect to pay more for your car insurance.

How much coverage you need

The more car insurance coverage you need, the more money you’ll pay. If you choose to raise your policy limits above the standard amount, your rate will increase. You’ll also pay a higher car insurance premium if you add endorsements to your policy. 

Credit Score

Your credit score is one of the biggest factors that goes into your car insurance rate. A driver with a poor credit score will pay significantly more for their insurance than a driver with a good credit score. 

Location

Car insurance prices vary by region. According to the Insurance Information Institute, Louisiana, Michigan and Florida have the highest rates, whereas North Dakota, Maine and Iowa have the lowest rates. The risk of severe weather, the number of uninsured drivers, and the type of state contribute to the cost of insurance in a given state.

Marital Status

Surprisingly, your marital status has an impact on your car insurance premium. Married people tend to pay less for insurance than single people. Additionally, married couples often qualify for a discount if they insure two vehicles on the same policy. 

Gender

Gender is another thing that impacts your car insurance rate. Men typically pay less for their insurance than women. However, there are currently seven states that do not consider gender when calculating car insurance rates. Those states include California, Hawaii, Massachusetts, Montana, North Carolina, Pennsylvania, and Michigan.

Claims History

For an insurance company, it’s much riskier to insure a driver with a history of claims. That’s why drivers who have filed insurance claims in the past pay more for their insurance. Not only do claims-free drivers pay less, but they usually qualify for a discount because of it.

Discounts 

Most insurance companies offer discounts, and if you qualify for one, it can lower your rate. Some examples of common discounts are policy bundling, having safety features in your car, taking a defensive driving course, being a good student, being claims-free, and paying your annual premium in full.

Methodology

Reviews.com scores products, services and companies using five quantifiable criteria to help readers choose the best one for them. For the best car insurance companies, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company and averaged the scores to produce our very own Reviews.com rating. These ratings were produced with you, our readers, in mind, and are meant to be a helpful tool to simplify the process of choosing which car insurance company is best for you. Since auto insurance rates vary widely among different profiles, we encourage you to continue researching options that fit your specific needs.

FAQs

It’s difficult to say which auto insurance company is the best. Every insurance company has their strengths and weaknesses, and each company is best suited to a specific type of driver. Based on our research, Amica is the company with the best overall score.

Based on our research and careful evaluation, the best auto insurance companies are USAA, State Farm, Geico, Progressive, Liberty Mutual, Amica and Erie.

Every insurance company has its downsides. Some only offer basic coverages, some offer very few discounts, and many companies struggle with customer service. There isn’t one company that stands out as the worst.

State Farm and Progressive are both rated highly in terms of claims satisfaction.

USAA is consistently rated the best in terms of customer satisfaction. The company offers affordable policies, great discounts and fantastic customer service, but only if you’re an active or retired military service member or a family member.

About the Authors

Elizabeth Rivelli is a Rhode Island-based copywriter and content marketing consultant. She has expertise writing about home, auto and business insurance, and has been published in widely-read publications, including the Simple Dollar, Bankrate and Decision Data. Elizabeth holds a BA in Communications from Northeastern University in Boston.

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