Which Auto Insurance Company Has the Best Auto Insurance Rates?

Matthew Lloyd
June 29, 2021
Matthew Lloyd

Which Auto Insurance Company Has the Best Auto Insurance Rates?

It is a necessity that everyone hates to pay—auto insurance. According to Bankrate, the average yearly cost for minimum coverage is $565 per year and for full coverage $1,674 per year.

The amount you pay for car insurance each year depends on various factors. This includes your driving record, the area you live in, the number of tickets or accidents you have, and the distance you drive to work. This is the reason why coming up on renewal time comparison shopping for the best auto insurance rates is important.

When you are shopping for car insurance you want to look at the coverage you actually need, not what your state’s minimum requirements are. We are going to take a look at options and discounts you need to consider and which companies are providing the best auto insurance rates in 2021.

What To Look For When Shopping for Auto Insurance

When comparing auto insurance companies you should consider more than just the annual premium. You also need to look at how customers rate them for customer satisfaction and their ability to pay out on claims. Another consideration is your own criteria for what you need from your auto insurance company.

When comparing companies you will find some providers have more local agents. Others offer special coverage options for fuel type, vehicle type, or benefits relative to your occupation.

The best auto insurance companies are those that are able to meet your personal requirements in all coverage areas. This includes personal injury protection and medical expenses. You also need underinsured motorist, and collision coverage at a premium you can afford.

Best Auto Insurance Companies in 2021

Here are our top three pics for purchasing auto insurance in 2021. This selection is based on policy options and discounts available to the average driver.

USAA

USAA offers insurance to military personnel, veterans, and eligible family members. The company received the highest scores in the 2020 J.D. Power Auto Insurance Studies for customer satisfaction and auto claim satisfaction.

In business since 1922, the business offers the cheapest premiums. The average annual premium for full coverage insurance is only $1,225. You may bundle your auto insurance with homeowners, life, health, and property insurance.

Extra discounts are also available for:

  • Good Driver Discount—maintain a clean driving record for at least five years
  • Driving Course Discount for drivers under 21 who complete driver’s training
  • Driving Course Discount for drivers of any age who complete a defensive driving course
  • Safe Driving Discount—up to 20% discount in states that participate in the SafePilot Program 
  • Multi-Vehicle Discount
  • Multi-Policy Discount—10% discount on property insurance when you bundle with auto coverage
  • New Vehicle Discount—if the vehicle has an anti-theft device installed
  • Vehicle Storage Discount—Up to 60% discount if storing vehicle due to deployment or other reason not driving
  • Military Installation Discount—15% discount for garaging vehicle on military base
  • Mileage-Based Discount—You pay less for driving less
  • Loyalty Discount—larger savings for remaining a USAA customer

Combine excellent premium rates with flexible payments, customizable coverage, and online policy management and you can’t go wrong with USAA.

Amica

Founded in 1907, Amica is one of the oldest auto insurance companies in the United States. For the past 20 years, they have received the highest customer satisfaction rating of all auto insurers in New England.

Amica receives top ratings for customer satisfaction. They also rank second overall in the J.D. Power Auto Claims Satisfaction Study.

Drivers have the option of receiving up to 20% back on their annual premiums through dividends. The dividend policy benefits option means your long-term policy is lower.

With a dividend payment option, it is usually 5% to 20% of your annual premium. You have the opportunity to use the dividends against the following year's premiums.

In addition to the standard coverage, Amica also offers several unique coverages. This includes legal benefits of $1,000 for bail bonds and lost wage coverage if you need to go to court on a claim.

There is no depreciation if you suffer a total loss on a new vehicle, free repair if your airbag deploys during an accident. If you lose your keys they offer free lock replacement.

Good for parents of teen drivers, the company offers young driver discounts. This includes a good student discount and student away at school discount.

Other discounts include being claim-free and loyalty. Premium reductions are available with multi-policy, multiple autos, and homeownership. You can even receive a discount for receiving policy information electronically.

With an average annual premium of $368 for minimum coverage and $1,318 for full coverage, this company is definitely worth looking at.

Geico

If the adorable personality of Martin, Geico’s gecko mascot, is not enough to attract your attention, maybe the fact that the company receives top honors in the 2020 J.D. Power Auto Insurance Satisfaction Study will draw you in. The company ranks high for customer respect, ease of use, and trustworthy security standards for personal information.

Geico is the 2nd largest insurance company in the United States and is available in Washington D.C. and all 50 states. It insures about 28 million vehicles.

The company offers five categories of automobile insurance discounts. In addition to auto insurance, you have the opportunity to bundle with renters, homeowners, life insurance, and more.

Not just for cars, Geico can meet your insurance needs for:

  • Motorcycle insurance
  • ATV insurance
  • RV insurance
  • Collector auto insurance
  • Commercial vehicle insurance
  • Personal watercraft and boat insurance
  • Mexico insurance
  • Rideshare and on-demand delivery driver insurance

Geico provides special discounts for federal employees and military members, providing savings discounts of 10% or more on premiums. Their app allows policyholders to access roadside assistance, mobile ID cards, vehicle damage estimates, vehicle service history, safety recall updates, and more.

Geico's average annual premium for minimum coverage is $363 per year and for full coverage $1,325 per year. They offer a wide range of discounts including 50 and older, new vehicle, good student, good driver, multi-vehicle, multi-policy, vehicle equipment, military and public service, seat belt use, and new vehicle.

Get the Best Auto Insurance Rates

Putting together the information necessary for a cost comparison on the best auto insurance rates is time-consuming. While we have highlighted our top three pics for 2021, the fact is no single insurance provider is best for everyone.

There are many great companies out there. Each company has different options and discounts that may or may not meet your needs. When you are shopping for car insurance the easiest way to obtain a cost comparison is to contact OfficialCarInsurance.com at (855) 336-3561 or use our convenient online form.

We are an online savings referral service that allows you to request insurance quotes from several companies through our alignment technology. Our company does not sell insurance and we do not represent any insurance provider. Give us a try today!