It's a great day when you get a good value on car insurance
If you’re looking for the top rated auto insurance companies in the United States there is one name you need to know; Best. The industry standard for rating insurance companies is the firm A.M. Best. Any analysis of the auto insurance industry would not be complete without looking at the firm’s ratings of the top auto insurance companies.
Over 100 years old, they use many criteria when ranking insurance providers, including comprehensive financial data to determine the soundness of the company and their ability to meet their ongoing obligations to policyholders. A complete description of their property insurance company rating criteria comprises 19 pages and is outside the scope of this article. Their ratings use a letter system similar to the ratings used in schools for years. A++ is the highest.
Another highly regarded insurance ranking firm is customer satisfaction reporting company J.D Power, who also ranks the cars themselves for customer satisfaction. Both Moody’s and Standard and Poors also rank insurance companies for credit worthiness and financial strength. This is obviously important, because you want your insurance company to be able to support you when you file a claim.
By examining information from these and other sources we’ve compiled a list of the top auto insurance companies in the U.S. Here the are (in no particular order):
Progressive Insurance (AM Best rating of A+)
Familiar to many consumers from their aggressive advertising campaigns, Progressive is one of the fastest growing insurance firms in the U.S. They were founded in 1937 and wrote premiums totaling $14 billion in 2006. Progessive’s JD power ratings are 3/5 across the board. The JD Power categories include overall experience, rates, billing and payment, and communication.
State Farm Insurance Group (AM Best rating of A++)
State Farm is the larges auto insurer in the United States, measured by the total number of vehicles insured. Started as an auto insurance company in 1922 by a retired farmer, it has grown into a full services financial firm that delivers all types of insurance, investments, and banking. State Farm has approximately 68,000 employees and 17,000 agents. JD power reports people like State Farm even better than Progressive. They received 5 out of 5 stars for communication, and 4s on everything else except for their rates, which nabbed 3 stars.
Nationwide Group (AM Best Rating of A+)
The Nationwide Group is one of the largest insurance companies in the U.S., but they too are a full service financial services firm extending their reach to investments and banking. They also sponsor NASCAR. Nationwide is actually a group of about 100 insurance and financial services companies. Like State Farm, they also started as an auto insurance company for farmers in the 1920’s. As an auto insurance company they started in Ohio, and expanded rapidly. In 1955 they changed their name to Nationwide. They have over $160 billion in assets. Like Progressive, Nationwide scored all 3s from JD Power.
GEICO (AM Best rating of A++)
Known as the only auto insurance company with a lizard as a mascot. GEICO is an acronym for Government Employees Insurance Company. True to their name GEICO was originally open only to government employees and their families. They have grown substantially, and are now the 3rd largest auto insurer in the U.S., with 9 million auto policies covering 15 million vehicles. In part due to their innovative lizard commercials they are the fastest growing auto insurance firm in the U.S. Since 1996 they have been a subsidiary of Berkshire Hathaway, Warren Buffett’s investment company. Gieco got overall high customer satisfaction scores from JD Power, but trailed the top scorers in overall experience and communication, getting 3/5.
USAA Group (AM Best rating of A++)
USAA shares a common theme among insurance companies. It also was founded in the 1920’s, in this case 1925. USAA was founded by Army officers and has stayed true to its origins. To this day, although USAA has 6.4 million customers, they are only open to current and former military service members and their families and ROTC members. They are a full integrated financial services company and include banking and investments in their services portfolio. Unlike most other insurance companies, they are privately held. USAA was one of only two companies to get perfect 5/5 from JD Power in all customer satisfaction categories.
Selective Insurance Group (AM Best rating of A+)
Selective is the 47th largest property and casualty insurer in the U.S., with 2,000 employees. Formed in New Jersey in 1926, Selective originally served auto and fire customers only. Currently they do business in 22 states throughout the Midwest and east coast. They have consistently been awarded the Ward Group’s Ward 50 award, bestowed on the top 50 insurance companies (out of over 3,000) by the Ward Group, a premier management consulting firm. In 2007 they were named one of Forbes 400 Best Big Companies in the U.S. for the 5th consecutive year.
Chubb Group of Insurance Companies (AM Best Rating of A++)
Seemingly one of the few insurance companies amount the top group that didn’t start in the 1920’s to insure automobiles, Chubb was started by a father and son team in 1882 as a marine insurance company. The firm was incorporated in 1967, and currently has over 12,000 employees in 28 countries throughout the world. They also have over 8,000 independent agents. They have over $50 billion in assets, and are the 176th largest US company.
Amica Insurance (AM Best rating of A++)
Amica is the oldest mutual auto insurer in the United States. Formed in Rhode Island at the dawn of the automobile in 1907, they have been consistently ranked at the top for customer satisfaction among national auto insurance companies by the prestigious J.D. Power organization. In fact, they have garnered the top rating in this category for 9 consecutive years, which is no mean feat. Amica was the only other company to get perfect 5s across the board from JDP. They also have been named to the Wards Top 50 on many occasions. Business week named Amica “Customer Service Champ” in 2008 as a recognition of their consistently high level of customer service.
What? No AIG? Maybe not, but the above companies have consistently proven themselves to be the top rated auto insurance companies in the United States. That requires great customer service, a reputation for customer satisfaction, and solid financial strength, so they are there when you need them.
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#1 by Dorsey - September 22nd, 2009 at 02:34
My wife and I have been with USAA for several years and are quite satisfied with our policy. First, their rates are very competitive even though we have had a few claims with them over the years. The claims we have submitted have always been handled quickly and professionally with none of the hassles I have experienced with other insurance companies.