Best Auto Insurance Companies for 2019

Affiliate Disclosure
Close
Auto-Owners Insurance

Editor's Take

Auto-Owners Insurance provides their customers a total of eleven ways to save money on their car insurance. Receive discounts for such things as paying on time, bundling your auto policy with other AOI products, or going paperless.

AOI also offers their customers with multiple options when choosing an auto policy. In total they offer 10 different coverage products so you can choose the policy that best fits you, your car, and your lifestyle. No matter which policy you choose, you get free protection on any rental, common loss deductible and a free pass on your deductible if you’re involved in an accident with another AOI member.

Policy Features

  • Discounts
    Yes
  • Apply Online
    No
  • Offers Multiple Products
    Yes

Details

  • Multiple coverage options
  • 11 ways to receive discounts
  • Free perks with every policy

User Reviews

Company reviews by real customers like you

Load user reviews
Geico

Geico

0 Review(s)

Editor's Take

Geico has one of the best insurance mobile apps on the market, but also has exceptional and responsive customer service. The rates are low, and you can apply entirely online. Additionally, Geico can be your sole insurance company if you want, and can supply both homeowners insurance as well as rental insurance.

Policy Features

  • Discounts
    Yes
  • Apply Online
    Yes
  • Offers Multiple Products
    Yes

Details

  • File claims online, over the phone, or via the mobile app
  • Ridesharing coverage available
  • Superior financial strength to pay claims

User Reviews

Company reviews by real customers like you

Load user reviews
State Farm

State Farm

0 Review(s)

Editor's Take

With State Farm, you can save money when you buy both home and auto insurance through them. You’ll also save money when you have a clean driving record: go an extended time without any accidents or speeding tickets and State Farm will reward your safe driving.

Policy Features

  • Discounts
    Yes
  • Apply Online
    Yes
  • Offers Multiple Products
    Yes

Details

  • Get quotes online
  • 18,000 State Farm agents across the country
  • Largest auto insurance provider in the US

User Reviews

Company reviews by real customers like you

Load user reviews

Key Components of Car Insurance

Before evaluating policy features from different auto insurance companies, make sure you understand what each component actually means in order to make the best comparison possible. Here’s a breakdown of common terms so you know exactly what you’re getting for your money.

Deductible

Your deductible is the amount you’ll pay for each claim before the insurance company pays for an issue. It’s important to know this number, because you’re responsible for paying this amount when some kind of incident damages your vehicle.

The higher the deductible, they more you’ll pay out-of-pocket before you get any extra cash from your insurer.”

Here’s an example.

If you get into an accident and your car has $1,000 in damages, you’ll be responsible for a portion of that through your deductible. Say your deductible is $500. You would pay the first $500 and your insurance company would cover the next $500.

Premium

Your premium is the amount you pay for your car insurance policy. Payment schedules vary depending on your carrier, and can be either monthly, quarterly, or annually. Your premium amount depends on several different factors, including your car’s make and age, your own driving history, and the breadth of coverage you choose.

Coverage Limit

Another important component of your car insurance policy is the coverage limit. This is a maximum dollar amount that you’ll be able to receive for any qualified damage to your car, as well as damage to other property and people. Once the damages exceed this pre-determined number, you’ll be responsible for the balance.

Fault Insurance

Depending on which state you live in, your insurance company may only pay for expenses when you are deemed “at fault.” Other states do not require the assignment of fault. Do some research to discover if you live in an at-fault state or a no-fault state so you can fully understand your coverage details.

How Much Coverage to Get

Clearly, there are a lot of different issues at play when creating the ideal car insurance policy for your needs. How can you make sure you’ve actually got the right amount of coverage? Here are some tips to guide you through the process.

#1: Compare Deductible vs. Premium

The first comparison to look at with any insurance policy is the amount of your deductible versus the amount of your premium. The lower the deductible, the higher the premium will be since the insurance company ends up paying more for each claim you submit. Choose an amount that feels comfortable for you, then make sure you have the deductible amount in cash savings so you can pay it when needed.

#2: Consider Comprehensive and Collision Coverage

It’s important to understand the differences between comprehensive and collision coverage, then pick the policies that make sense to you. Comprehensive coverage applies when things like hail, fallen tree limbs, or vandalism cause damage to your car. Collision coverage covers accidents on the road, even if another driver is at fault and doesn’t have their own insurance policy to pay for your repairs.

In most cases, both types of coverage are equally important. Otherwise, you’ll receive no financial help if one of these common events happens in your life.

#3: Check if Extended Coverage is Worth It

Many auto insurance companies also offer extended coverage, which can give you more financial padding in case of a major incident with your car. Oftentimes, however, you may be better off padding your own financial cushion than making these extra payments to your carrier.

 

How Claims and Payout Work

When you do find yourself in some sort of car accident, no matter whose fault it is, you’ll need to navigate the claims process in order to receive payout on your vehicle’s damage.

If another driver is involved, you should exchange insurance information to get the ball rolling. Some states also require that you call the police to the scene of any accident, no matter how small it may be. This allows you to have the opinion of a third party to help narrate the sequence of events.

You’ll then need to meet with an insurance adjuster to assess the damage to the vehicle and the estimated cost of repairs. Once all involved parties agree on the costs, your insurance company may use one of these methods for distributing money and facilitating the repairs:

  • Send you to an authorized auto repair shop within their network
  • Let you take your car to your preferred mechanic
  • Service your car at their own repair center (for larger auto insurance companies)

When the work is completed, your insurance company remits payment either to you or directly to the repair company. But first, they’ll subtract your deductible amount, which you’ll need to pay yourself.

If your insurer doesn’t work directly with a repair company and you own your vehicle outright, you may be able to keep the insurance money and forego making the repair. While you probably don’t want to do this if there’s a serious mechanical issue with your vehicle, some people would rather keep the cash than pay for cosmetic repairs, such as a dented bumper. Also remember that you’ll only receive cash if the repair amount is above your deductible.

Frequently Asked Questions

How can you save on your car insurance?

There are many discounts available to help you save on your insurance policy. These include good credit, low mileage, comparing offers from different companies, bundling multiple insurance products, and raising your deductible.

When should you drop your full coverage?

Once your car hits a certain age or level of condition, you may consider dropping your full coverage. If your deductible is more than 10% of the vehicle’s value, for example, it might be time to switch to liability. Alternatively, look at your own finances and determine if you could afford to replace your car without getting any money from your insurance company.

What is GAP insurance?

Guaranteed Auto Protection (GAP) insurance, offers financial protection when you have an auto loan. In case of a total loss of the vehicle, your basic insurance policy only covers your car’s current market value. But if you financed a new car, your loan balance might be higher. GAP insurance pays off the balance so you’re not in debt over a car you can’t drive anymore.

Do you have to get car insurance?

Yes, auto insurance is required in every state, but each state has its own law on the minimum amount of coverage you need. If you don’t meet this minimum, you’ll pay a hefty fine each year since you’re putting others at risk of not getting reimbursed if your cause damage to them or their vehicle with your own car.

Get the Best Car Insurance Today

It’s smart to give your insurance policy a quick check-up to get the best coverage at the best price. Get a quote now!

Call Now! (517) 323-1200

with our top pick Auto-Owners Insurance

You are the one rating companies!

Become a part of the FundFirst Capital community by leaving a review for your own auto insurance company. Your honest feedback is the best way for other readers to make the best possible decision for their own insurance needs. Plus, you can browse other reviews to see if it’s time to make a switch for yourself.

Our score:

4/5 - 1 Review(s) -

We welcome feedback for our own website as well. Give us a score to let us know what you like about the content you’ve read, and where we can approve. It’s important to us that we continually engage and learn from our readers, so that together we can build a strong community of people helping each other improve their financial lives.