Best Car Insurance Company for Paying Claims (Deals & Tips)

The best car insurance companies for paying claims are NJM Insurance Company, Amica Mutual, and Auto-Owners Insurance. However, Amica Mutual is an affiliate of Nationwide Insurance Company. While GEICO and USAA are the cheapest auto insurance companies for paying claims, they rank below NJM Insurance. Shop around and compare multiple companies to secure affordable rates from the best auto insurance company for paying claims.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Aug 31, 2021

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The Highlights

  • A.M. Best and J.D. Power release insurance performance ratings each year
  • GEICO is the cheapest car insurance company in the United States
  • On average, full coverage car insurance is about $90 a month
  • You can secure affordable car insurance through discounts

Are you searching for the best auto insurance companies for paying claims? Insurance rating agencies describe how insurance companies perform when paying out claims to customers.

But which car insurance companies are the best at paying out claims? And which auto insurance company is the cheapest?

Don’t worry – our guide answers these frequently asked questions. We’ll also show you how to deal with claims from other drivers.

After you learn everything about the best car insurance company for paying claims, enter your ZIP code in the free comparison tool above to compare multiple insurance companies in your area.

What is the cheapest car insurance company for paying claims?

The cheapest auto insurance quotes depend on several factors, such as age, gender, driving record, and credit history. When these factors are combined, the car insurance company can determine your monthly rates. But it doesn’t reveal how well companies pay claims.

The best way to determine how well an auto insurance company pays claims is to look at their financial strength ratings.

One of the best international rating agencies is known as A.M. Best.

We have ratings for the best auto insurance companies in the United States. Let’s compare each of the top companies’ ratings and average monthly rates:

Top Car Insurance Companies A.M. Best Ratings and Monthly Rates
Car Insurance CompaniesA.M. Best RatingsAverage Monthly Car Insurance Rates
AllstateA+ (Superior)$227
American FamilyA (Excellent)$160
FarmersA (Excellent)$206
GEICOA++ (Superior)$128
Liberty MutualA (Excellent)$284
NationwideA+ (Superior)$163
ProgressiveA+ (Superior)$202
State FarmA++ (Superior)$168
TravelersA++ (Superior)$205
USAAA++ (Superior)$115
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USAA is the cheapest insurance company, but it’s only available for the U.S. Armed Forces and their immediate families. GEICO is the following company that’s cheaper than all other companies on average. However, your rates may vary.

Try shopping with smaller companies like Auto-Owners Insurance, Erie Insurance, Esurance, and North Carolina Farm Bureau to secure rates from the cheapest car insurance companies for paying claims.

But the most affordable auto insurance company isn’t always best for paying out claims. Read on to see how J.D. Power ranks car insurance companies in the United States.

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What are the car insurance claim ratings from J.D. Power?

The best car insurance companies for paying claims are often listed in a press release, but we’ve compiled them here for you. Review the list below to see which auto insurance company has the highest J.D. Power satisfaction rating:

J.D. Power 2020 U.S. Auto Claims Satisfaction Study
Car Insurance CompaniesJ.D. Power Score (Based on a 1,000-Point Scale)
Allstate876
American Family862
Amica Mutual907
Auto Club of South California Insurance Group866
Auto-Owners Insurance890
Automobile Club Group858
COUNTRY Financial863
CSAA Insurance Group862
Erie Insurance880
Esurance871
Farmers872
GEICO871
Liberty Mutual867
MAPFRE844
Mercury849
MetLife886
National General815
Nationwide876
NJM Insurance Co.909
Progressive856
Safeco870
State Farm881
The Hartford888
Travelers861
USAA890
Industry Average872
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NJM Insurance Company, Amica Mutual, and Auto-Owners Insurance had the highest J.D. Power rating in 2020. Meanwhile, the top ten car insurance companies in the nation ranked below these companies.

Does it mean NJM Insurance is better than State Farm or Nationwide? No, but it means NJM Insurance performed better when paying out claims to customers in 2020.

How do car insurance companies pay out claims?

Auto insurance companies pay out claims in several ways. Check out this bulleted list to see examples of how car insurance companies pay claims.

  • A claim is paid after a no-fault driver presents two to three estimates of property damage expenses
  • Auto insurance companies pay out a claim after you’ve made a collision or comprehensive insurance deductible
  • The no-fault driver is reimbursed after giving your auto insurance company medical bills
  • You submit a list of services you paid for while you were injured (only works for personal injury protection)

Collision coverage, comprehensive insurance, and personal injury protection are no-fault coverage options. But collision and comprehensive coverage require you to pay deductibles before the claim can start.

What happens when a car insurance claim is made against you?

An auto insurance claim against you means you were at fault in an accident.

A highway patrol police officer usually determines fault. Law enforcement will give you a copy of your ticket, which may come with a summons to court.

The no-fault driver can file a claim with your car insurance company. Your liability coverage will pay for bodily injury and property damage costs.

But if you’re not at fault, the at-fault driver has to prove that you were at fault in the accident and that the assessment of law enforcement was wrong.

How To Dispute a Car Insurance Claim Against You

The best way to dispute an auto insurance claim against you is to check your police report and send it to your insurance company.

If you’re uninsured, you may want to find a lawyer. The law is strict on uninsured drivers. You could get sued, lose your driver’s license, or face hefty fines.

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How can I lower my auto insurance rates after filing a claim?

You can secure affordable auto insurance rates when you qualify for multiple discounts. No matter your situation, you can get car insurance bargains.

Here’s a list of the most impactful deals for drivers searching for cheaper auto insurance rates.

  • Anti-Theft Features Discount – Varies
  • Automatic Payments Discount – At least %2
  • Multi-Policy Discount – Up to 25%
  • Multi-Vehicle Discount – Varies
  • Paperless Billing Discount – At least 2%
  • Pay-In-Full Discount – Up to 5%
  • Defensive Driver Discount – Up to 40%
  • Safety Features Discount – Up to 15%

The best insurance companies allow you to stack your auto insurance discounts. The most important deal is the defensive driver discount.

Each company is different. Therefore, your savings will vary for each company and in each state. Idaho, Iowa, and Maine are the cheapest states for car insurance, but car insurance by state will vary depending on laws and requirements.

However, no matter where you live you can find the best cheap auto insurance company for paying claims by comparing quotes from multiple providers online. Always compare quotes before you buy car insurance so you don’t end up paying more than you need for coverage.

How to Find the Best Auto Insurance Companies for Paying Claims

GEICO and USAA may be great companies, but NJM Insurance Company and Amica Mutual outperformed them in auto claims satisfaction.

Some companies with better than average J.D. Power ratings don’t have the national reach like the top insurance companies. But others operate under some of the best companies in the nation.

Now that you know about the best car insurance companies for paying claims, use our free online quote tool to compare multiple insurance companies near you.

Are you looking for free insurance quotes?

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