Like a driver’s license and vehicle registration, auto insurance is an essential requirement to be able to drive in the United States. Below we offer a list of the best for this year
Among the fundamental requirements to be able to drive legally in the United States—in addition to the license and vehicle registration— car insurance plays an important role because it provides security and protection against possible unfortunate events. By purchasing a policy, even a very basic one, drivers obtain coverage for traffic accidents that is useful for various circumstances: from material damage and private property to injuries or death of someone involved.
In the country, beyond a preventive measure, car insurance is necessary to be able to operate a vehicle, since it is considered a mandatory requirement. In that sense, any driver who uses his/her privileges without a valid or current policy may be fined or sanctioned by the authorities at any time.
Best car insurance in the United States in 2023
According to the most recent US News insurance ranking, although each insurance company offers different benefits to each driver, it is possible to determine which of them is the most convenient, especially when considering rates, quality of service, and cost. scope.
In this type of search, the average driver chooses the best rates, that is, the cheapest car insurance, those whose policies provide basic coverage to comply with the laws. However, it is also important to consider other factors.
Below is a list of the five best car insurance options for the average customer for 2023 in the United States:
State Farm
State Farm stands out above all other companies in the sector due to the loyalty that its customers profess to it. At the same time, it offers some of the lowest rates on the market for the average customer, but also one of the highest for those with a bad credit history.
Despite this, it has very good scores in terms of customer service and complaint handling, two of the points that most concern people looking for this type of service. On average, the annual fee for a State Farm policy is approximately $1,200.
Farmers
Like State Farm, this company stands out for its service: it has high ratings for customer service and complaint resolution. However, their rates are very high compared to the national average, which leads their clients to look for other more convenient options. On average, a Farmer’s policy can be almost $2,000 a year.
Nationwide
Although it offers service nationwide, nationwide is particularly recommended for Nebraska customers, offering the best rates. It stands out in customer service and complaint handling, but also in the loyalty of its clients, who tend to make recommendations for its services.
However, it has some aspects against it: high rates on minimum coverage policies and also for drivers who have committed the crime of driving under the influence of drugs or alcohol (DUI or DWI). The average policy at this company is over $1,300 but remains below average.
Geico
Unlike the previous ones, Geico does not stand out for its customer service: its scores in this regard are average. The real reason why it stands out is because of its rates, which tend to be lower, even for those drivers with a bad credit history, as long as they have not committed crimes related to drugs or alcohol, since for them the rates multiply. The average policy at Geico is around $1,100 a year.
All State
This company stands out for the access it provides to its clients: in addition to facilitating the submission of claims, it also facilitates customer service, offering the necessary support during any process. However, it is below the previous ones due to the rates, which are higher than average, which places it among the most expensive options. The rate for a policy at Allstate exceeds $2,000 a year.
Above all, in first place in the rankings, is USAA, a company that brings together the best: lower rates and better customer service. However, it does not offer access to the average customer, as it is aimed at members of the military community, to whom it offers an average policy of $1,000 per year.
How is the auto insurance rate determined in the United States?
Although most companies offer average rates, it is important to keep in mind that this type of service depends on other factors that can affect the total amount payable, either in favor or against the client. Some of those factors are described below:
Credit history
People with a high credit history (over 600 points) may end up getting cheaper policies. This is due to the fact that – for insurance companies – drivers of this type involve fewer financial risks; That is, they are more responsible and pay their debts on time. On the other hand, people with low credit histories imply greater risk for the company and, therefore, greater investment in their protection.
Driving history
Drivers whose driving performance has been poor end up paying higher auto insurance rates. This trend is also due to the risk that companies must take to insure this type of client. Repeat offenders or people with driving under the influence (DUI or DWI) offenses may be further harmed.
Sex
Based on statistics, companies offer better auto insurance rates to women for several factors beyond the number of accidents related to them, which tends to be much lower compared to that of men. Women seek to choose safer vehicles, tend to travel fewer miles than men, and tend to wear seat belts more frequently.
Age
Among insurance companies, there is a criterion that also serves as an alarm when a person is under 25 or over 65 years old. In that sense, teenage drivers are affected at higher rates, as are elderly people. This is due to the inexperience of the first group and the decreased response of the senses in the case of the second group, risk factors that increase the possibility of being involved in an unfortunate event.
