The Top Auto Insurance Companies by Rating

The top auto insurance companies by rating are State Farm Mutual Automobile Insurance, Allstate Corporation, Berkshire Hathaway Incorporated, Progressive Corporation, and Farmers Insurance Group of Companies. Ratings are one of the many criteria drivers should consider when sourcing a provider.

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The above rankings are according to the Insurance Information Institute. These five auto insurance companies wrote the most private passenger premiums during 2011, totaling 87,681,365. They also hold 51.8% of the entire automobile insurance market shares.

Why These Five Are on Top

The five auto insurance companies listed above stand out due to a few common factors. They have time on their side for openers. Most have been in business for decades. However, this is not the only reason.

Many consumers today rarely rate their car insurance company based solely on longevity. To be the best, they have to provide drivers with something extra.

While many offer similar types of policies, they must exceed all expectations and deliver superior service. One of the reasons why State Farm remains a top auto insurance company is because of their visibility.

It is very difficult to travel anywhere in the United States or abroad without seeing the red and white overhead sign. Brand recognition is extremely important in these pressing economic times. In addition, since most are international, it helps with their success tremendously. When people know they can reach an agent anywhere, they stay with them.

How They Made It to the Top

Many consumers may not be familiar with the number three auto insurance company, Berkshire Hathaway Incorporated. However, they are definitely aware of one of their major subsidiaries–Geico.

Of course, the number of premiums is not the only reason why these five auto insurance companies are currently on top. There are other reasons that factor into the equation.

State Farm Mutual Automobile Insurance Company, for example, rates high because of their willingness to offer insurance to anyone who inquires. This can be a challenge at times, but they make it work.

They provide more policies to high-risk drivers than most of their competitors. They also provide the local touch. Like Allstate, State Farm has an enormous number of agents in local communities. They are in every state in America with multiple agents throughout.

It may not come as a surprise that Allstate tops the list.

They have been in business since 1931. Originally part of Sears Roebuck and Company, Allstate originally sold auto insurance through the Sears catalogs for very low rates.

Allstate continues to be an icon in the automobile insurance industry. They provide policies for all kinds of consumers. Their specialty has always placed a focus on the people and their needs. Allstate continues to look for new and innovative ways to obtain and retain their customers.

The remaining three, Berkshire Hathaway, Progressive, and Farmers are tops in their field because of the way they conduct business. They are all pioneers in their own rights.

Loyal Customers in the Competitive Market

There are a few reputable and independent companies that spend hundreds of hours compiling data. They use this information to calculate the feedback they receive. Using these numbers, they draw conclusions about insurance providers. The main three auto insurance rating companies are A.M. Best, J.D. Power, and Standard and Poor’s.

These rating providers use financial facts and customer feedback to create ratings. Each has a different emphasis; however, their assessments tend to be in line.

To rate the highest among so many companies, you must bring something new to the table. This could mean exceptional customer service or strong marketing strategies.

The one factor they all have in common is customer loyalty. They understand that customers stay with a company for one reason. They all spend millions of dollars each year ensuring that their customers are satisfied. The results speak volumes.

However, price is often part of a customer’s decision to leave a provider. Loyalty can only go so for.

Still, the belief that a provider has met a driver’s needs for years, and that they still get a competitive rate, is what retains customers in this business.

Ask anyone in marketing and they will tell you the same. The bottom line comes down to retention. According to Engagement Systems, in order to succeed in business, you must appeal to your customer. Apparently, these five are doing something right. They continue to lead the industry.

Remaining ahead of the Competition

There are virtually hundreds of auto insurance companies within the United States. If you factor in all of the smaller, independent agencies, the numbers increase. So how do they remain on top?

In addition to loyalty and brand recognition, the top five auto insurance companies have a secret. They know that there are other important steps. To keep a business thriving, you must stay one- step ahead. This means new products and services.

Take Allstate for example, they continually expand their product distribution. If it has wheels, they will find a way to insure you. This is also true for State Farm. They work with experts to find ways to research new products and are the first to launch them to the public.

Others, like Berkshire Hathaway, align themselves with other companies. They act as the background or silent partner. As the main financier for Geico, they only need to provide the start up capital for every new endeavor. As they grow, they reap the benefits and rewards.

They provide specialty insurance for half the cost of smaller companies. This helps them balance their products accordingly. It also insures many will never be turned away because of their current situation.

Customer Service Track Record

A proven customer service record of accomplishment is imperative in the auto insurance industry.

Your customer is your best advocate. These companies know this. They work diligently towards hand crafting each representative that touch their customers. They want their experience to be at a world-class level.

To a customer who needs help, an empathetic customer service agent is better than hitting the lottery. There is nothing more disheartening than hearing someone who clearly does not care. It speaks loudly for the company.

The best in their field leave their customers feeling confident. The worst cause a repeat call.

When the top auto insurance companies considered their representatives, they knew it was important. They did not simply want people who could answer questions. They wanted a staff with drive.

Processing an auto insurance claim is not very pleasant. However, they managed to turn these situations into positive experiences.

Geico was the first auto insurance company that provided round-the-clock support to their customers. This is what it takes to have a proven customer service track record.

According to J.D. Power, this company receives a 4 out of 5 rating for customer satisfaction.

Financial Stability

When it comes to financial stability, the top five auto insurance companies all rate extremely high. They are all traded publicly and have promising outlooks for the future. The most stable is Geico because it is a subsidiary of Berkshire Hathaway. However, State Farm and Progressive are very close behind.

In fact, Business Week has State Farm in a major upward trend. Their stability on Wall Street gives them another edge over their competition.

Although Allstate is no longer leading the way, they remain a major contender. Their reputation alone keeps them solid. Their customers are some of the most loyal in the world.They remain with Allstate because of years of dedication. They know they can trust them and this is an area where few others can compete.

Policies and Offers

Polices and offers must be clearly understood. Geico, for example, has one of the simplest car insurance policies in the industry. The verbiage is easy to read and comprehend. In fact, one of the previous slogans told the tale. You remember; it was so easy a caveman could understand.

While it may have made for clever marketing, the fact remains there is truth in this statement. Most of Geico’s customers prefer simplicity.

They do not care for a policy that is five pages long.

They also love the ease of the website. In fact, more than 40% of their customers use their online site. This includes for tasks like bill pay and signing up for new products. The offers are not masked behind anything extra. When you are qualified to receive a discount, it is automatic. Billing disputes are handled quickly and efficiently this shows their dedication to quality.

However, every top rated company is not the right choice for every driver out there.

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