Insurance

Top 9 Auto Insurance Companies

Top 9 Auto Insurance Companies

Best Auto Insurance Companies

  1. Geico

    This company is much more than geckos with funny accents and disgruntled cavemen. Their customer service is second to none, and their large customer base makes it possible for them to charge low premiums.

    Geico – Its History

    Geico has been around since 1936. It was started by Leo and Lillian Goodwin, and Philip Carlton. Initially, the company only offered automobile insurance to the families and employees of the federal government. The company was located in Washington DC, due to the large amount of federal employees in the region. In 1948, David Lloyd Kreeger bought Geico, along with a group of investors, and help transition the company into a mainstream automobile agency. Geico has also sold homeowners insurance and life insurance, but automobile insurance has always been its main focus. The company is currently owned by  Berkshire Hathaway, a public company that is the parent company for many companies.

  2. Allstate

    As there slogan says, with Allstate “you’re in good hands”, and that is the honest truth. Their customers love them, so there’s a pretty good chance you will too. Allstate was one of the first to offer accident forgiveness, and they continue to add new features that change the way we’re used to paying for auto insurance.

    The History of Allstate

    Sears Roebuck and Co. started offering a brand of tires called “Allstate,” in 1925. In 1931, the tires were expanded into an automobile insurance company, thanks to the collaboration of Sears’ chairperson Robert E. Wood and Carl L. Odell, Wood’s neighbor and an insurance broker. Starting in the 1950s, the company added to insurance areas. It now offers many types of asset insurance including homeowners, renters, off-road vehicle, flood and boat insurance. In the 1960s, the company started using the slogan “You’re in Good Hands.” This slogan continues to this day.

    The company has sponsored many sporting teams over the years, including college football, the Sugar Bowl, NASCAR and the USA Olympic teams. It frequently supports football events. In 2007, Allstate also started sponsoring soccer.

  3. State Farm

    State Farm is another auto insurance provider that is sure to please. They have grown to become the largest insurance provider in North America. Claims agents are always super-friendly, and they provide you with a lot of coverage for not much money.

    State Farm – Its History

    State Farm was started in 1922 by George Merchele. It was owned by its policyholders right from the start. However, it originally catered to farmers. Merchele wanted to deal with an insurance company that recognized that farmer’s didn’t need to pay the same rates as city drivers. This didn’t exist at the time so he started his own company. As the company grew, it started to branch out into other insurance niches, like homeowner’s insurance.

    The company has had five CEOs in its history, with family ties being an important part of the business. The first was founder George Merchele, followed by son Raymond Merchele. After the Mecherle’s came the Rust family. First Adlai Rust was CEO followed by his son Edward Rust, and then grandson Edward Rust Jr., who currently holds the title of CEO.

    The company has become one of the largest, most profitable companies in the United States with over 67,000 employees and a high ranking in the Fortune 500.

    (The company’s jingle, “Like a good neighbor, state farm is there”, was written by Barry Manilow.)

  4. Esurance

    Like the others, you are probably familiar with Esurance’s clever TV ads.  Esurance offers more than hot cartoon girls though. With 24/7  support and friendly agents, Esurance’s customer service is hard to beat.  Their prices are top notch too!

    The History of Esurance

    Esurance is a relatively new company. The company was formed in 1999 and is one of the first online insurance companies. In 2004, it started offering discount insurance to gay and lesbian couples, which was a milestone for insurance companies. In the same year, Esurance started an environmentally-friendly program that is designed to save costs and reduce waste. The “Save a Windshield, Plant a Tree” program is designed so that Esurance plants a tree for every customer that opts to repair a windshield instead of having it replaced.

    The company was originally owned by Folksamerica Holding Company Inc., before being bought by Allstate in 2011. Esurance has always been located in San Francisco, California. Esurance now offers some other types of insurance, like homeowners, and partners with other insurance companies to increase its geography and insurance plans.

  5. Arbella

    Arbella doesn’t spend on Superbowl ads or flashy commericals, they let their work speak for itself.  Arbella thrives on referrals and word-of-mouth.  The customers love Arbella, with good reason too. No hassles on claims seems to be their most popular feature.

    American Family Insurance – Its History

    American Family started out as Farmers Mutual Automobile Insurance Company in 1927. It was founded by Herman Wittwer, who wanted to sell auto insurance to farmers at a discounted rate. At the time, farmers were charged the same rates as city drivers even though they didn’t drive in much traffic and drove very little in the winter, and Wittwer wanted to change that.

    The company was successful and expanded its reach to include small towns and then major cities. Indeed, in 1938, it had over $1 million in assets and premiums. The company had different names and branches over the years. In 1963, it became American Family Mutual Insurance Company in order to represent its larger range of insurance policies and financial instruments offered.

    American Family Mutual Insurance entered the Fortune 500 list in 1996. It is now available in 19 states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington and Wisconsin.

  6. American Family Auto Insurance

    Although smaller than the other companies on our list, American Family aims to please. They pay claims promptly and get high reviews from all major publications.  Unfortunately, they are only available in 19 states.  If you are lucky enough to be in a state that has American Family insurance, you might want to give them a try.

    Liberty Mutual – Its History

    Liberty Mutual started in Massachusetts as a worker’s compensation insurance company, called Massachusetts Employees’ Insurance Association. It was founded in 1912, and by 1917, it had become Liberty Mutual Insurance Company and started offering automobile services. In 1937, Liberty Mutual had expanded to cover all 48 states.

    Over the years, the company has worked on increasing automobile safety. In the 1950s, it started a research center, Liberty Mutual Research Institute for Safety, which played a significant role in developing safer cars. The center has played a role in developing head rests, which prevent whiplash, and cars that are more ergonomically correct.

    The company continued to grow and in 1972, it had reached $2 billion worth of premiums. It continues to grow to this day. At the start of the 21st century, it opened global offices and has expanded to 16 countries outside of the United States.

  7. Liberty Mutual

    An old, conservative insurance company, Liberty Mutual prides itself on reputation. They are personal, competitively priced, and have short wait times when it comes to claims.

    Liberty Mutual – Its History

    Liberty Mutual started in Massachusetts as a worker’s compensation insurance company, called Massachusetts Employees’ Insurance Association. It was founded in 1912, and by 1917, it had become Liberty Mutual Insurance Company and started offering automobile services. In 1937, Liberty Mutual had expanded to cover all 48 states.

    Over the years, the company has worked on increasing automobile safety. In the 1950s, it started a research center, Liberty Mutual Research Institute for Safety, which played a significant role in developing safer cars. The center has played a role in developing head rests, which prevent whiplash, and cars that are more ergonomically correct.

    The company continued to grow and in 1972, it had reached $2 billion worth of premiums. It continues to grow to this day. At the start of the 21st century, it opened global offices and has expanded to 16 countries outside of the United States.

  8. Progressive

    Progressive is another company you might recognize from TV.  Getting started with them is simple and easy (and cheap too). Dealing with Progressive is incredibly stress free. You will never have a problem with a claim.

    Progressive – Its History

    Progressive was started by two lawyers, Joseph Lewis and Jack Green, who felt that the company would be a good investment. The 2 founders then made crucial changes to how the insurance industry functions – for example, they made changes to the existing insurance industry by allowing clients to make installments on their insurance payments, and building drive-in claim offices. In addition, their boldness is exemplified in their customer base – high-risk drivers, traditionally shunned by insurance companies, are welcomed with open arms.

    Progressive became a public company in 1971 and by 1987 it had over $1 billion in premiums. That amount doubled in 1994 – proof that their bold attempt at re-defining the insurance industry worked. True to its name, Progressive had other firsts over the years, like starting a 24/7 claims center that responds immediately to clients calls, and a comparison shopping service that showed their competitors’ prices. They also started a service in 1994 that brought company claims employees to the scene of an accident or wherever the client needed them. The company is now worth well over $14 billion and almost all of their services are available online.

  9. AAA

    Triple A is more than just roadside assistance and travel accommodations.  Their auto insurance is also top notch.  If you get into an accident, they will be by your side every step of the way.

    History of AAA

    In 1902, several motor clubs banded together to deal with a lack of roads that were suitable for cars. These clubs were the Chicago Automobile Club, Automobile Club of America, Automobile Club of New Jersey, Long Island Automobile Club, Rhode Island Automobile Club, Philadelphia Automobile Club, Princeton University Automobile Club, Automobile Club of Utica, and Grand Rapids Automobile Club – and together, they form what we know today as the AAA. AAA then merged with the American Motor League, which had been formed in 1895, but retained their current name.

    Originally, AAA only offered driver’s training, and making road maps and hotel guides. It wasn’t until the 1960s that they started selling insurance, and expanding into other travel-related services.

    Still, their expansion did not veer them off course from their main goal: improving roads, helping travelers and increasing safety, such as traffic safety programs taught in schools. Notably, AAA’s traffic safety programs have helped equip children with the know-how to keep themselves safe from the dangerous roads.

Things To Remember…

The lowest car insurance is not always the best. Compare auto insurance companies carefully when shopping around; information on insurance companies’ handling of claims and how they set rates are public record and generally not difficult to find.

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