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Best Car Insurance Companies For 2021

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Find out our top picks for the best car insurance companies in 2021, and discover who’s got the best rates, customer service, and claims processing.

Best Car Insurance Companies For 2021

Drivers who switch car insurance save an average of $500 on their insurance policies.

Most people only compare rates every couple of years, though, according to the Car insurance Report 2020 by Finder, which can add up to a lot of overspending.

At Minority Mindset, we recommend checking your car insurance rates at least once a year to ensure that you’re getting the best rates. 

This article outlines some of the best car insurance companies in the nation to help you find the best rates, customer service, discounts, and benefits.

How To Find The Best Car Insurance Rates

To rank the best car insurance companies of 2021, we compared reviews, reports, rankings, and studies from several sources, including Consumer Reports, Reviews.com, Insure.com, Motor1, and JD Powers.

Please be sure to compare several companies before purchasing auto insurance since different companies charge varying rates, even for identical policies.

Top (Largest) Insurance Companies

Before we jump into the highest-rated car insurance companies, let’s take a brief look at the top insurance companies in the U.S. 

The following five largest insurance companies control more than 55% of the U.S. car insurance industry:

  1. State Farm Insurance
  2. Geico Insurance (Berkshire Hathaway)
  3. Progressive Insurance
  4. Allstate Insurance
  5. USAA Insurance

State Farm is the #1 largest insurance company. It covered one out of every six policies in the United States and wrote more than $40.9 billion in car insurance premiums in 2019.

Sometimes, an insurance company’s size provides advantages to policyholders, such as excellent app support, quick claims processing, and 24/7 customer service.

Other times, small insurance companies win over customers with superior customer service and attention to detail.

Car AccidentWhile an insurance company’s size can be advantageous, smaller companies are also worth considering when shopping for auto insurance.

Our Picks For Top Car Insurance Companies

We’ve chosen six car insurance companies as the “best of the best” for 2021, all based on a balance of factors such as customer service, policyholder reviews, and industry recognition. 

Each company excelled in at least one area, and many are recognized for several reasons, which we explain in their reviews below.

Our top six best insurance companies for 2021 (in no particular order):

  • State Farm: Best for customer service
  • Amica Mutual: Best for overall customer satisfaction
  • Geico: Best for low prices and easy-to-use digital app and website
  • NJM: Best for residents of Connecticut, New Jersey, Ohio, and Pennsylvania
  • USAA: Best for U.S. military members, their children and spouses, and pre commissioned officers
  • Auto-Owners: Best reputation for financial strength and stability

Three of the car insurance companies on our list (State Farm, Amica Mutual, and Geico) are available to almost all residents of the U.S. 

Auto-Owners, USAA, and NJM have location or affiliation restrictions that we’ve explained in their reviews below.

Continue reading to find out why customers love these auto insurance companies!

State Farm Auto Insurance

State Farm Insurance, the biggest insurance company in the nation, gets high rankings for several reasons:

  • Named Best car insurance company for customer service by Reviews.com.
  • Named Best car insurance for students by Motor1.
  • State Farm is the #1 top writer of private passenger auto insurance in the U.S.
  • Named one of the top ten car insurance companies for 2021 by Insure.com.
  • Ranked fourth in Best Car Insurance Companies by U.S. News & World Report.
  • Ranked #1 car insurance company for the Mid-Atlantic and New York regions by J.D. Power.
  • Holds an A+ rating with the Better Business Bureau.
  • Ranked A++ (Superior) financial strength from AM Best Financial.

People most often buy car insurance from State Farm because it’s recommended by a friend or family member (30%), offers the best price (20%), or was the car insurance company their parents had (15%).

87% of State Farm reviewers at Insure.com say they would definitely or probably recommend the company, and 96% say they would renew their policies with them.

Discounts offered by State Farm include:

  • Multi-policy
  • Multi-vehicle
  • Driver training/defensive driving
  • Academic achievement
  • Factory-installed safety devices, such as airbags
  • Anti-theft devices
  • Good driving record
  • Three-year Accident-free
  • Three-year claim free
  • Discounts for teens and students

Benefits provided by State Farm include:

  • Roadside assistance
  • Car rental expenses for named maintenance 
  • Car rental and travel expenses when needed due to accident
  • Rideshare coverage available, if you drive for Uber or Lyft

State Farm Apps: When your car is insured through State Farm, you get several communication options, including a selection of apps (six altogether).

Why customers love State Farm:

  • Excellent discounts
  • High claims satisfaction ratings

Michael of Opelika, AL’s review on Consumer Affairs, states that he’s been with the company 14 years and had only one auto claim in that time. 

“The damage was minimal and State Farm responded beautifully.”

State Farm proves that big companies can provide outstanding customer service and satisfaction despite their size.

Amica Mutual Auto Insurance

Amica auto insurance has a strong reputation for customer service, claims, and policy review.

  • Ranked second highest in overall customer satisfaction by J.D. Power US Auto Claims Satisfaction study 2020. 
  • Named Best overall car company by Reviews.com.
  • Ranked 5/5 for claims, service, and policy review by Consumer reports.
  • Ranked A+ financial strength by AM Best Financial.

94% of Amica customers have formed long-lasting relationships with the company, and its team is nationally recognized for customer service.

Discounts offered by Amica include:

  • Loyalty
  • Multi-coverage
  • Multiple autos
  • Claim-free
  • Homeownership
  • Family
  • Paid in full
  • Autopay
  • Online billing
  • Anti-theft
  • Safety features
  • Defensive driver training
  • Good student
  • Student away at school

Benefits provided by Amica include:

  • 25% discounts on multiple-car policies
  • 20% discount when you insure both car and home through Amica
  • Full glass coverage
  • Roadside assistance
  • Rental car reimbursement

Why customers love Amica Mutual:

Amica’s dividend policy options, multiple discount options, and roadside assistance are its customers’ favorite advantages.

Verified reviewer Samuel of Boca Raton, FL, writes:

“Every contact with them leaves me with a positive impression as to how good they are. Claims processing has been trouble free on the few occasions that I have needed them. They settle claims promptly and painlessly. I recommend them highly.”

Amica provides car insurance in all U.S. states except Hawaii. 

Geico (Berkshire Hathaway) Auto Insurance

GEICO, a subsidiary of Berkshire Hathaway, Inc., is well-known for its low prices and easy online services.

  • Ranked #1 Highest Customer Satisfaction Among Auto Insurers 2020 in the Northwest and North Central regions, by J.D. Power US Auto Claims Satisfaction study 2020. 
  • Ranked A++ financial strength by AM Best Financial.

People most often buy car insurance from Geico because it makes it easy to file claims, provides good value for the money, and offers lower-than-average rates.

More than fifty percent of reviewers at Insure.com say they would recommend the company, and 95% say they would renew their policies with them.

Discounts offered by Geico include:

  • Good driving history and habits
  • Driver training courses
  • Driver affiliations
  • Customer loyalty
  • Safety features
  • New vehicle
  • Good student
  • Emergency deployment
  • Federal employee
  • Military
  • Multi-vehicle
  • Multi-policy

Benefits provided by Geico include:

  • Accident forgiveness after a specified time period
  • Outstanding mobile app
  • No-drop promise/guaranteed renewal
  • Roadside assistance
  • Rental reimbursement
  • 24/7 customer service

The Geico app provides customers with access to most insurance needs, such as ID cards, roadside assistance, photo estimates, and Apple Business Chat, to communicate with agents.

Geico Car Insurance

Why customers love Geico:

  • Outstanding app and website
  • Low rates

Policyholder “claysman” writes:

“I have been with GEICO for about a year. Whoever designed their website is an absolute genius! It is hands down the easiest site to use even with something complicated. And I’m an idiot with computers! LOL Thanks web designer!!!”

Geico offers coverage in every U.S. state and the District of Columbia.

NJM

Available only to Connecticut, New Jersey, Ohio, and Pennsylvania residents, NJM auto insurance consistently appears in “best of” lists for top auto insurers.

  • Ranked #1 in the U.S. for customer satisfaction with auto claims by J.D. Power US Auto Claims Satisfaction study 2020. 
  • Rated 4.8 (out of 5) stars on Trustpilot, averaged from more than 5,000 reviews.
  • Ranked second for Best Claims by Consumer Reports.

NJM’s competitive rates, good customer service, and strong financial standing make it a customer favorite across several insurance review sites. 

90% of Consumer Reports reviewers were “completely satisfied” with their experience with NJM insurance. Five out of five reviewers give NJM 5-star ratings for claims, service, and policy review.

Discounts offered by NJM include:

  • Bundled insurance policies
  • Multi-vehicle
  • Defensive driving
  • Driver training
  • Electronic payment
  • Full coverage
  • Good student
  • Mature driver
  • New car
  • Annual payment
  • Paperless
  • Vehicle safety equipment

Benefits provided by NJM include:

  • Pays dividends to its policyholders.
  • Sent checks to stay-at-home policyholders through its Policyholder Relief Program in 2020.
  • Allows electronic payments through its website.

The NJM optional SafeDrive app monitors driving and provides feedback on driving performance in exchange for a participation discount on auto policy premiums.

Customers love NJM because of the level of professionalism that customer service agents provide, its 24/7 claims processing, and the fact that they deal with local agents.

Trustpilot reviewer Susan B Lagatta writes:

“NJM lowered my stress! Incredibly responsive, cheerful, helpful, and generous in offering to do more. Exceeded expectations! Having NJM contact the body shop and send the necessary documents was a bigger service than I would’ve thought. Thanks”

NJM is available only to residents in the following states: Connecticut, New Jersey, Ohio, and Pennsylvania.

USAA Auto Insurance

USAA auto insurance is only available to “U.S. military members and their spouses, as well as children of USAA members,” and pre commissioned officers.

  • Ranked #1 best car insurance company by U.S News.
  • Rated 5-stars, #1 car insurance company by Forbes Advisor.
  • Rated best insurance company for customer satisfaction by CNet Roadshow editors.
  • Ranked A++  (superior) financial strength by AM Best Financial.
  • Ranked #1 best Uber & Lyft insurance company by Insurify.

86% of USAA reviewers at Insure.com say they would recommend the company, and 94% say they would renew their policies with them.

Discounts offered by USAA include:

  • Bundled insurance policies
  • New vehicle
  • Multi vehicle
  • Annual mileage
  • Save Driver
  • Defensive driver
  • Driver training
  • Good student
  • Family discount
  • Length of membership
  • Military installation

Benefits provided by USAA include:

  • Members save an average of $707 when they switch from other car insurance companies.
  • Flexible payment plans
  • Accident forgiveness after five years
  • Rideshare coverage available
  • Roadside assistance

Why customers love USAA : 

USAA is a charitable company that provides several discounts and competitive rates to policyholders.

Reviewer Thersa Groton of New York writes on Consumer Affairs:

“My husband first signed up with USAA in 1949. I became a member upon our marriage. My two sons also went on our policy when they began driving in the 1970’s, and when we adopted a daughter, she too was on our policy. It is now 70 years later and I am still driving and still more than satisfied with USAA’s service.”

USAA auto insurance is only available to U.S. military members and their spouses and children, or pre commissioned officers.

Auto-Owners Insurance

Auto-Owners car insurance is one of the nation’s largest insurers and has a reputation for exceptional financial strength and stability.

  • Rated A++ (Superior) by AM Best Financial Strength Company.
  • Ranked third highest in overall customer satisfaction by J.D. Power US Auto Claims Satisfaction study 2020.  
  • Certified as a Great Place to Work®.
  • Ranked third overall best insurance company Insure.com.

People most often buy car insurance from Auto-Owners because it offers the best price (33%) and because it was recommended by a friend or family member  (26%).

83% of Auto-Owners reviewers at Insure.com say they would definitely or probably recommend the company, and 96% say they would renew their policies with them.

Discounts offered by Auto-Owners include:

  • Multi-policy discount
  • Multi-car
  • Good payment history
  • Paperless billing + on-time payments
  • Annual payment
  • Advance quote
  • Safety features
  • Favorable loss
  • Higher deductibles
  • Good student (“B” or higher)
  • Student Away At School
  • Teen driver monitoring

Benefits provided by Auto-Owners include:

  • Road Trouble service
  • New car replacement
  • Rental car coverage

Customer Center benefits: Auto-Owners car insurance provides its customers with online bill pay, document review, claims status, and easy access to agent contact information.

Why customers love Auto-Owners:

  • Outstanding customer service
  • Financial stability

One reviewer, Elaine of Amherst, OH, writes that Auto-Owners is people-oriented and provides great customer service:

“Very people oriented staff. Understanding, compassionate. Great customer service. Claims department acts immediately to file claim, home visit if necessary and compensation is done very quickly.”

Auto-Owners Insurance is available in 26 states. If you’re looking for a long-term relationship with a car insurance company, Auto-Owners may be right for you.

How To Choose The Best Car Insurance Company

The best car insurance company for you depends on several factors, including:

  • Your age
  • Where you live and drive
  • Your Driving history
  • How much driving you do
  • What type of car you drive
  • How many cars you drive
  • Willingness to bundle insurances with the same company
  • What benefits matter most to you
  • Credit rating
  • Homeowner status

Most of us are looking for the best rates with companies that have a good reputation, and that’s why we love Insure.com.

To find out more about discounts and strategies that can cut your car insurance costs, check out this guide by Minority Mindset:

If you’re wondering what type or how much car insurance to buy, these Minority Mindset guides will help you understand the different types of auto insurance:

To find the lowest car insurance rates, visit Insure.com.

Recommended by MSN Money, Smart Money, and Barron’s, Insure.com is a free service that helps you compare auto insurance quotes by matching you with up to 20 insurers in your area. 

Try Insure.com today to find the best prices on auto insurance in your area!

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