RPP NEWS: Price is an important part of any insurance decision, but there is more to a car insurance company than its premiums. We analyzed rates, but also surveyed more than 9,500 consumers to learn how satisfied they are with their car insurance providers. That feedback, along with data we analyzed from other sources, helped us identify the top 10 insurers in 2023.
Key Takeaways
- USAA, the company that topped last year’s list, is No. 1 again in our 2023 rating of the best car insurance companies
- American Family, No. 2 overall this year, moved up eight places in the rating compared to 2022
- State Farm is No. 3 in the rating, while Geico and Nationwide are tied at No. 4
What Is the Best Car Insurance Company?
USAA holds the top spot in our rating of the Best Car Insurance Companies of 2023. The company’s policies, however, are only available to the military community, which includes active-duty personnel, veterans, and their spouses and children.
For those who don’t qualify for a USAA policy, our analysis found that American Family is the best overall option for car insurance. The insurer is No. 2 in our rating of the best car insurance companies, and ranks no lower than third in any of the subcategories we researched. State Farm is No. 3 in our overall rating, while Geico and Nationwide are tied at No. 4.
Our rating is intended to help consumers find a policy that suits them based on what they value in an auto insurer. We studied prices to give motorists a rough idea of what insurers charge based on factors such as driving history, age, credit history, and a customer’s desired level of coverage.
We also asked consumers to tell us how these companies perform in categories like customer service, claims handling, and customer loyalty to help drivers choose an insurance experience that’s a good fit for them.
Our rating is a good place to start. But we remind consumers that the best way to choose the right insurance policy is to shop around, learn what multiple insurers have to offer, and compare quotes.
USAA is the No. 1 insurer in our rating of the Best Car Insurance Companies of 2023. Our results placed the company at No. 1 in many subcategories we looked at, including Customer Service, Most Likely to be Recommended, and Most Likely to Be Renewed. USAA finished second to American Family in the Claims Handling scores, and is tied with American Family in the Customer Loyalty subcategory.
Best for Customer Service: USAA, American Family, and State Farm
USAA is ranked No. 1 in the Customer Service subcategory, while American Family and State Farm are tied at No. 2.
Our survey found that over 73% of USAA customers who have not filed a claim consider themselves completely satisfied with the customer service provided by the company. That number drops to 53% among USAA customers who have filed a claim. Since USAA’s car insurance policies are only available to members of the military community and their families, most customers will want to consider other insurers in our rating.
More than 65% of American Family customers who have not filed a claim expressed total satisfaction with the level of customer service provided, and the number is just under 58% among policyholders who have filed a claim. Those numbers among State Farm customers who responded to our survey are roughly 60% and 54%, respectively.
Nationwide, Geico, Travelers, and Farmers tied at No. 4 in this subcategory.
Best for Claims Handling: American Family
American Family is rated No. 1 in the Claims Handling subcategory with a score of 4.3, edging out No. 2 USAA, which earned a score of 4.2. Our survey results show that over 61% of American Family policyholders consider themselves completely satisfied with the ease of filing a claim, and 56% are completely satisfied with how their claims were resolved.
More than half of American Family’s customers, just under 52%, expressed complete satisfaction in regard to status updates they received from the company while their claim was in progress.
After American Family and USAA, there is a four-way tie at No. 3 in this subcategory between State Farm, Farmers, Geico, and Nationwide. Progressive, Travelers, and Allstate tie at No. 7, and AAA is at No. 10.
Most Likely To Be Recommended: USAA and American Family
USAA is the No. 1 insurer in the Most Likely to be Recommended subcategory, finishing ahead of American Family at No. 2. Our survey shows that 63% of USAA policyholders who have not filed a claim are very likely to recommend the company to others looking for car insurance. Among USAA customers who have filed a claim, that number falls to roughly 59%. USAA sells its car insurance products exclusively to members of the military community, so most people in the market for insurance will need to explore policies from other companies.
Just over 40% of policyholders with American Family who have not filed a claim say they are very likely to recommend the insurer to someone looking for a policy, while just over 62% of those who have filed a claim say they’re very likely to offer a recommendation.
Other companies likely to be recommended by their customers include State Farm, Nationwide, and Geico, the companies that are tied at No. 3 in our rating in this subcategory.
Most Likely To Be Renewed: USAA and American Family
Asked whether they would renew their policy with USAA, over 69% of customers who have not filed a claim said they are very likely to do so, according to our survey results. When policyholders who have filed a claim were asked the same question, the numbers didn’t move much: More than 66% described themselves as very likely to renew. Those results helped USAA attain the No. 1 rating in the Most Likely to be Renewed subcategory.
The No. 2 company in this subcategory, American Family, also did well in our survey of consumers. Among those who haven’t filed a claim, roughly 65% were very likely to renew with American Family, and among those who have filed a claim, the number increased, to over 68%. Nationwide and State Farm are tied at No. 3 in this subcategory. Geico is No. 5.
