Auto Insurance In The 21St Century: Better Or Worse?

When it comes to auto insurance, 21st Century and CSAA (AAA) are two of the most popular options, offering competitively priced policies across large portions of the US. But which is better? 21st Century is exclusive to California and offers higher rates than many other insurers in the area. On the other hand, CSAA is ranked among Insure.com's 2024 Best Car Insurance Companies, with 85% of customers saying they would recommend the company to others. CSAA also offers a wide range of discounts to its customers. So, while both companies have their pros and cons, CSAA's wider availability, competitive pricing, and high customer satisfaction ratings may tip the scales in its favour.

Customer satisfaction

21st Century Auto Insurance Customer Satisfaction

21st Century Insurance, owned by Farmers Insurance, offers car insurance exclusively to residents of California. While it provides standard coverage options and complimentary roadside assistance, there are some concerns about its customer service. The company has a high number of complaints regarding the difficulty of reaching customer support in a timely manner. Its NAIC Complaint Index is 1.86, indicating a higher-than-average number of complaints for its size. Additionally, 21st Century's rates are considered higher than those of many other insurers in the state, with an average premium of $120 for liability-only coverage and $261 for full coverage.

CSAA Insurance Group Customer Satisfaction

CSAA Insurance Group, a AAA-affiliated insurer, serves customers across the country and is ranked among Insure.com's 2024 Best Car Insurance Companies. In the Insure.com survey, CSAA received 4.05 out of 5 stars for customer satisfaction, with 75% of customers reporting satisfaction with their customer service. Eighty-five percent of CSAA customers stated they would recommend the company to others and renew their policies. However, CSAA fell short in the ease of service category, with only 75% of customers finding it easy and convenient to access policy documents and services. CSAA's average monthly premium is $217, the most expensive among the ranked companies.

When comparing 21st Century and CSAA in terms of customer satisfaction, CSAA appears to have a slight edge. While both companies have their pros and cons, CSAA's higher customer satisfaction ratings and recommendation rate suggest that their customers are generally happier with the service provided. However, it is worth noting that 21st Century's issues with customer service responsiveness may impact the overall customer satisfaction perception.

Discounts

21st Century Insurance is marketed as a low-cost car insurance provider. It offers a range of discounts to its customers, including:

• Anti-lock brake system discount: A 5% discount on bodily injury liability and property damage liability coverages for cars equipped with anti-lock brakes.
• Anti-theft device discount: A 5% discount on comprehensive coverage for vehicles with active anti-theft devices.
• Air bags/automatic seat belt discount: Savings of up to 30% for cars equipped with airbags and automatic seat belts.
• Driver training discount: A 10% discount on bodily injury, property damage, medical payments, personal injury protection, and collision coverages for drivers under 21 who complete a state-approved course. This discount is not available in California, Michigan, or North Carolina.
• Teen driver discount: Applicable to licensed single drivers under 19 who are the child/grandchild of the primary named insured and meet eligibility requirements.
• Good student discount: Applicable to drivers under 25 with a "B" or better grade average.
• Away at school discount: Available to unmarried students residing with the policyholder but attending school more than 100 miles away.
• Defensive driver discount: A discount applied to all vehicles on the policy when one primary driver completes an approved course. Valid for 36 months.
• Multi-car discount: Savings of up to 30% for insuring two or more vehicles on the same policy.
• Early shopping discount: Applicable when purchasing a policy seven or more days before the current policy's effective date, with no lapse in coverage.
• Mature driver discount: For drivers aged 55+ who have completed a state-recognized course in the last three years.
• New car credit: A one-term discount for vehicles with a model year equal to or greater than the current year.
• Alternative fuel discount: Applicable to vehicles with original factory-installed fuel types such as electric, ethanol, or compressed natural gas.
• Auto-homeowner policy discount: For customers who are also named on a Farmers Insurance homeowners policy.
• Auto-renter policy discount: For customers who are also named on a Farmers Insurance renters policy.
• Auto-specialty policy discount: For customers who are also named on a Foremost Specialty policy.
• Auto-life policy discount: For customers who are also named on a Farmers Insurance life policy.
• Transfer discount: For customers with prior insurance and no lapse in coverage from certain standard carriers.
• Group (occupation) discount: For customers employed by or retired from a company-approved occupation group.
• Early shopper discount: Available when purchasing a policy seven or more days before the current policy's expiration date.
• Paid-in-full discount: A discount for paying the policy upfront.
• Non-smoker and non-drinker discount (Idaho): Applicable to customers from Idaho who do not smoke or drink.

CSAA Insurance Group, on the other hand, is a AAA-affiliated insurance company. It offers various discounts, including:

• AAA membership discount: Available for drivers who are AAA members.
• AAA multi-car discount: A discount for insuring two or more vehicles with AAA.
• AAA multi-policy discount: A discount for drivers who also have an AAA homeowners, renters, condo, motorcycle, or life insurance policy.
• Loyalty discount: For long-standing AAA members with continuous auto insurance policies.
• Good driver discount: For drivers with a clean driving record.
• Mature driver discount: For older drivers who have completed an approved driver improvement course.
• Defensive driving discount: For motorists who have completed an approved driver improvement course.
• Teenage driver discount: For teenage drivers with a clean driving record and completion of an approved driving program, such as TeenSMART.
• Good student discount: For high school, trade school, or college students with a "B" average or better.
• Distant student discount: For students who live and attend school more than 100 miles away from home.
• Affinity discount: For AAA employees or employees/members of an approved employer, association, or organization.
• Advance shopping discount: For drivers who start a quote in advance and have at least six months of continuous prior insurance coverage.
• New car discount: For vehicles with an immediate prior, current, or future model year.
• Passive restraint discount: For vehicles with certain airbag configurations.
• Anti-theft recovery device discount: For vehicles with an operating factory or aftermarket recovery device or tracking system.

Coverage options

21st Century Insurance, now part of the Farmers Insurance Group of Companies, offers auto insurance exclusively to residents of California. It markets itself as a low-cost car insurance provider with free perks like roadside assistance.

The company offers standard coverage options such as:

• Liability coverage: This is required to drive legally in California and most other states. It covers expenses such as medical or car repair costs, and attorney fees if the insured is legally responsible for a collision that caused injuries or property damage.
• Collision coverage: This helps pay for repairs or replacement of the insured's vehicle, regardless of who caused the crash.
• Comprehensive coverage: This covers repairs or replacement of the insured's vehicle if it is damaged by something other than a collision, such as vandalism, fire, hail, flooding, or a natural disaster. It also covers collisions with animals and vehicle theft.
• Uninsured or underinsured motorist coverage: This covers medical costs after an accident caused by a driver who is uninsured or has insufficient insurance coverage.
• Rental reimbursement: This helps pay for a rental car or other transportation costs if the insured's car is undrivable due to a covered accident.

In addition, 21st Century offers antique or classic car insurance for vehicles that are over 19 years old, in good condition, and kept in a fully enclosed, locked garage.

CSAA Insurance Group, a AAA-affiliated insurer, offers auto, home, and personal lines of insurance to its policyholders through AAA clubs in 24 states. The company is ranked among Insure.com's 2024 Best Car Insurance Companies with 3.50 stars out of 5 stars.

CSAA offers the following coverage options:

• Collision coverage: This covers physical damage caused by a collision with another vehicle or an object, regardless of who was at fault.
• Personal liability coverage: This covers property damage and bodily injury liability resulting from a crash.
• Comprehensive coverage: This covers damage to the insured's car caused by something other than a collision, such as hail, a fallen tree, or vandalism.
• Uninsured and underinsured motorist coverage: This covers the insured or a covered family member if they are hit by a driver who doesn't have enough insurance or any insurance at all.
• Medical payments coverage: This helps with medical bills for the insured or anyone in their car during an accident.

Financial stability

21st Century Auto Insurance Financial Stability

21st Century Auto Insurance, a subsidiary of Farmers Insurance, boasts a high financial stability rating from AM Best. This rating reflects the company's solid financial standing and ability to meet its insurance obligations. However, it's important to note that in 2019, 21st Century's rating was downgraded, and they have more than twice the number of customer complaints compared to the average insurer, according to the National Association of Insurance Commissioners (NAIC) Complaint Index.

CSAA Insurance Group Financial Stability

CSAA Insurance Group, a AAA-affiliated insurer, also holds an impressive A credit rating for financial stability from AM Best. This rating indicates their strong financial position and ability to fulfil their insurance policy and contract commitments. Additionally, CSAA Insurance Group is ranked among Insure.com's 2024 Best Car Insurance Companies, further attesting to their financial stability and customer satisfaction.

When comparing the financial stability of 21st Century Auto Insurance and CSAA Insurance Group, both companies present strong cases. 21st Century Auto Insurance's high rating from AM Best showcases their financial robustness, while CSAA Insurance Group's A credit rating and recognition from Insure.com highlight their reliability. It's important to consider other factors, such as customer satisfaction, coverage options, and availability, to make a comprehensive decision between the two insurers.

Cost for high-risk drivers

When it comes to insurance for high-risk drivers, 21st Century could be a better option than CSAA. If you have an at-fault accident, speeding ticket, reckless driving citation, or a DUI on your record, 21st Century is likely to offer a lower rate than CSAA. This is because every insurance company prices policies differently after a violation.

For example, for drivers with a credit score of lower than 580, 21st Century offers lower rates than CSAA. However, for drivers with exceptional credit scores of 800 or better, CSAA may be the better option.

It is important to note that insurance rates are also influenced by factors such as driving history, location, and age, and it is always recommended to shop around and compare rates to find the best option for your specific circumstances.

In terms of customer satisfaction, CSAA has a higher rating than 21st Century. CSAA is ranked among Insure.com's 2024 Best Car Insurance Companies with 3.5 out of 5 stars, while 75% of its customers reported being satisfied with its customer service. On the other hand, 21st Century is part of the Farmers Insurance Group and offers standard auto insurance coverages, complimentary roadside assistance, and coverage for classic and antique cars.

Both CSAA and 21st Century have their pros and cons, and it is essential to get quotes and compare rates, discounts, perks, and financial stability before purchasing a policy.

Frequently asked questions