It's hard to watch TV for 10 minutes without seeing an offbeat commercial from a car insurance provider, but there's more to which policies are the best than who provides the most laughs.
WalletHub has issued a new study that ranks the 10 best providers when it comes to cheap full-coverage auto insurance, which are policies that include comprehensive and collision coverage as well as a state’s mandatory minimum car insurance requirements.
Full coverage is required for leased or financed cars, but it is also recommended for most drivers, WalletHub said. "For example, full coverage is advisable on cars worth over $4,000, or if the driver cannot afford to replace the car on her own," the report said.
"Full coverage car insurance is more expensive than a basic liability-only policy," WalletHub said. "A full coverage policy with high liability limits will cost an average of $1,997 per year across the country. On the other hand, carrying your state’s minimum coverage will cost you an average of $717 annually. But, like the name implies, full coverage insurance provides the most protection for policyholders. Without full coverage, your insurance will not pay for damage to your own vehicle if you are at fault."
The following companies offer the best cheap full-coverage policies, according to WalletHub.
10. Nationwide
Average premium: $2,987
Discounts: 10
Average WalletHub user rating: 3.6/5
"Nationwide has a strong customer service record, given its low NAIC rating and high user rating on WalletHub," the report said. "This above-average reputation comes at the cost of expensive premiums, however."
9. State Farm
Average premium: $2,617
Discounts: 11
Average WalletHub user rating: 3.7/5
The largest auto insurance provider in the nation, State Farm has slightly more complaints than average, but a high WalletHub user rating. "Customers looking to save on a full coverage State Farm policy can take advantage of its 11 possible discounts," the report said.
8. Progressive
Average premium: $2,201
Discounts: 13
Average WalletHub user rating: 3.4/5
The company gets more customer complaints than average. "This mediocre customer service record results in Progressive ranking below several competitors with higher prices and fewer discounts," the report said.
7. Allstate
Average premium: $2,324
Discounts: 11
Average WalletHub user rating: 3.4/5
"Allstate’s main selling points for full coverage car insurance are its low premiums and its unusual variety of extra coverage options, which include accident forgiveness and new car replacement," the report said.
6. AAA
Average premium: $2,125
Discounts: 21
Average WalletHub user rating: 2.9/5
Offered only to the company's members, AAA insurance has low prices and includes the membership perk of free roadside assistance. But it does not have 24/7 live customer support, and higher than average customer complaints.
5. Mercury
Average premium: $1,919
Discounts: 8
Average WalletHub user rating: 2.2/5
Mercury has low prices, but receives more customer complaints than average. It offers insurance in only 11 states, including California, Texas, New York and Florida, the report said.
4. MetLife
Average premium: $2,391
Discounts: 5
Average WalletHub user rating: 3.4/5
MetLife stood out for its high satisfaction rates, but "its premiums are slightly more expensive than other high-ranking companies, making it a good choice for drivers who are willing to pay for quality," the report said.
3. USAA
Average premium: $2,002
Discounts: 12
Average WalletHub user rating: 3.1/5
This company only offers insurance to military members, members of their family, and veterans. "USAA also advertises discounted deployment rates that apply to service members posted anywhere overseas," the report said.
2. Geico
Average premium: $1,675
Discounts: 16
Average WalletHub user rating: 3.4/5
Geico is notable for offering up to 15% discounts for members of the military. "WalletHub’s editors also note Geico’s streamlined claims process and its many types of insurance, which can help drivers save by bundling car insurance with coverage for their homes or other vehicles," the report said.
1. Esurance
Average premium, $1,548
Discounts: 10
Average WalletHub user rating: 4.3/5
Esurance's 10 possible discounts include savings for safe vehicles and rate reductions for those with no at-fault accidents and drivers who use its telematics program, DriveSense. "Esurance is the best company for cheap full coverage car insurance because of its low rates, high customer satisfaction, and variety of discounts," WalletHub said.
The full report can be viewed here.
