“Top-rated” lists of auto insurance companies are everywhere, but they often disagree with each other and can go out of date quickly. A better approach is to know which independent ratings matter and check them yourself for the companies you are considering. This guide shows you where to look and what the ratings actually mean.
Check three things: financial strength, customer complaints and claims satisfaction.
AM Best, the NAIC complaint index and J.D. Power studies are widely used, free sources.
The best company for one driver is not always best for another. Price and service both matter.
1. Financial strength: can the insurer pay claims?
Rating agencies such as AM Best, S&P and Moody’s grade insurers on their ability to pay claims. With AM Best, ratings in the “A” range (for example A++, A+ or A) indicate strong or superior financial strength. You can look up a company’s rating on the agency’s website, sometimes after a free registration.
2. Complaints: how does the insurer treat customers?
The National Association of Insurance Commissioners (NAIC) publishes a complaint index for insurers. A score of 1.00 is the national average. Below 1.00 means fewer complaints than expected for a company of that size; above 1.00 means more. Your state’s department of insurance may also publish complaint data.
3. Claims and customer satisfaction
J.D. Power publishes annual studies on auto insurance shopping, customer satisfaction and claims satisfaction, often broken down by region. These are based on large customer surveys and are useful for comparing how companies handle claims.
4. Coverage options and extras
Compare what each company offers beyond the basics: accident forgiveness, new car replacement, rideshare coverage, gap insurance, roadside help and a good mobile app. These features can matter more than a small price difference.
5. Price for your profile
Even a highly rated insurer is not right if it is much more expensive for you. Use the ratings to build a shortlist of three to five solid companies, then compare quotes. Our guide to comparing auto insurance online walks through this step by step.
Large national insurers vs. regional companies
Well-known national companies such as State Farm, GEICO, Progressive, Allstate and USAA (for military members and their families) offer wide availability and strong digital tools. Regional and mutual insurers operate in fewer states but sometimes score very well on service and price where they do business. It is worth including at least one regional company in your comparison.
A quick checklist
AM Best rating in the A range or better
NAIC complaint index at or below about 1.00
Good claims satisfaction in your region
The coverage features you need
A competitive quote for your situation
Frequently asked questions
Which car insurance company is the best?
There is no single best company for everyone. The best choice is a financially strong insurer with few complaints that gives you a good price for the coverage you need.
Are online reviews reliable?
Individual reviews can be useful, but unhappy customers are more likely to post. Complaint indexes and large surveys give a more balanced picture.
This article is general information, not insurance advice. Ratings change over time, so check current figures on each source’s website.
