Types of Coverages Offered
- Locksmith coverage
- Erie Rate Lock program
- First accident forgiveness
- Diminishing deductible program
- Rideshare coverage
- Non-owners insurance
- Safe driving
- Car safety features
- Reduced mileage
- Young drivers
- Annual payment plan
* Data provided by Coverage.com, price based on the state minimum required policy.
**J.D. Power’s 2020 U.S. Auto Insurance Study average rating. Based on a 1,000-point scale.
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.
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.
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.
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.
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.
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.
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 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.
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.
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.
What To Look For When Shopping for Car Insurance
Although insurers offer many similar services, coverage options and discounts, auto insurance policies vary from one person to another. Consider the following factors when shopping for car insurance.
- Your location: Insurance is state-regulated and prices differ according to ZIP code. Places with a higher rate of road accidents, theft and severe weather generally feature higher car insurance rates.
- Type of car: Newer car models are expensive to insure, as are SUVs and luxury cars. Budget cars with safety features and low rates of claims are usually cheaper.
- Your coverage requirements: Minimum liability insurance is mandatory in most states, but you may want additional collision and comprehensive coverage. Look for an insurer that offers the coverage options you need at the most reasonable price.
- Compare quotes: To determine the best annual premium rate, compare quotes from multiple insurers based on your location, coverage and budget. Online tools make it easy to collect quotes from different companies.
How We Selected the Best Auto Insurance Companies
We determined the best auto insurance companies based on their customer rating and experience, financial stability, and coverage. To compare auto insurance companies across the board, we then calculated a Reviews.com score based on the following:
- Customer Ratings– Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this factor using J.D. Power Auto Insurance Satisfaction Index.
- Coverage– As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options available.
- Confidence– It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this factor using AM Best.
- Online resources–For the first time in 21 years, J.D. Power reported in 2020 that interaction with websites and online tools had a bigger impact on customer satisfaction than agents. In our evaluation process, we weighed the availability, functionality and ease of use of each company’s digital services.
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.
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.