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When it comes to buying car insurance, not every driver needs the same types of coverage. Consumer Reports (CR) recently released its 2021 rankings on car insurance companies, which can help you decide which one will work best for you.
Since State Farm is the largest company in the industry, you might think it’s first place on the list. It scores well in the report, but it’s far from the best ranking. That distinguished position goes to USAA. You don’t have to go with State Farm just because it’s the largest company. Here’s how State Farm stacks up against the highest-rated insurance company.
State Farm is the biggest car insurance company in the U.S. | Twenty20
Why do people like USAA car insurance?
Consumer Reports created the rankings based on responses from 90,352 CR members who reported on their experiences with their companies. USAA Car insurance had the highest score for customer satisfaction. CR measured customer satisfaction for categories like the cost of premiums, handling of claims, and service.
USAA scored high on all of the categories. USAA offers affordable car insurance and is well-liked among policyholders. However, its services are only available to members of the military and their families.
How does State Farm compare to USAA?
State Farm isn’t even in the top 20 of CR’s rankings. However, in U.S. News and World Report’s 2021 Review of State Farm, while USAA still ranks first, State Farm is in second place. If you’d like to stick with State Farm, there’s still some good news. But you should note that the U.S. News study only surveyed 4,806 consumers.
State Farm has the third-lowest coverage rate out of all car insurance companies according to U.S. News. Coverage with State Farm costs an average of $1,169, while USAA charges an average of $875. But, at $2,802, State Farm has the highest average coverage rates for drivers with a bad credit history.
State Farm still stands out for its excellent customer service and has the second-highest satisfaction ratings. But U.S. News also mentions that your customer service experience might depend on the specific location or agent you’re working with.
This company might not be number one on the rankings, but you should still see decent car insurance rates overall. If you do have poor credit, you might want to consider shopping around for better rates elsewhere. GEICO can be a great option if you’re worried about your credit affecting insurance costs.
How can you find the most affordable car insurance?
According to Consumer Reports and U.S. News, USAA has one of the most affordable options for coverage. However, this company’s offers are only available to military members and their families. If you have bad credit, State Farm might also not be the best option for you.
You might be going along with high premiums because you don’t want to go through the hassle of comparison shopping. Jerry can help. This free app will do all the hard work for you. It’ll gather all the information it needs from your company for you without any phone calls or long forms.
Jerry will find you competitive quotes from 45 top insurance companies. The average user saves $879 a year! Use Jerry so you don’t have to worry about overpaying for car insurance.
