Best Auto And Home Insurance: Finding The Right Company

Bundling home and auto insurance can be a great way to save money, with some insurers advertising discounts of up to 30%. However, it is not always the cheapest option.

The best home and auto insurance bundles come from financially strong companies with great customer service and plenty of coverage options. According to various sources, the best companies for bundling home and auto insurance are:

- State Farm

- USAA

- Nationwide

- Erie Insurance

- Allstate

- Amica

- Auto-Owners

- Travelers

- American Family

Discounts and savings

State Farm

State Farm offers a bundling discount of up to $1,273 per year, which is one of the highest available. They also have a good range of other discounts, such as a 14% auto insurance renewal discount after being with the company for at least three years. They also have low-cost auto rates for drivers with a DUI. State Farm is available in all states except Massachusetts and Rhode Island.

USAA

USAA offers a 10% bundling discount and cheap rates for military members, veterans, and their families. They also have a range of other discounts tailored to military members, such as cyber insurance to protect electronic devices. USAA is available in all 50 states.

Nationwide

Nationwide offers a bundling discount of up to 20%. They also have other attractive discounts, such as their SmartRide program, which can save up to 40% for good driving, and their SmartMiles program for senior drivers or retirees who don't drive often. Nationwide is available in all states except Alaska, Florida, Hawaii, Louisiana, Massachusetts, New Jersey, and New Mexico.

Allstate

Allstate offers a bundling discount of up to 25%. They also have a wide range of other discounts, with opportunities to save up to 40% in total. Allstate is available in all 50 states.

Auto-Owners

Auto-Owners offers a bundling discount, although the exact amount is not specified. They also have a range of other discounts, such as loyalty, protective devices, claims-free, and new home credits. Auto-Owners is available in about half of US states.

Customer satisfaction

Erie Insurance

Erie Insurance has high customer satisfaction scores from J.D. Power and a below-average NAIC complaint index. They offer auto insurance for many different situations and affordable premiums.

State Farm

State Farm is the largest personal auto insurance company in the country and has an above-average J.D. Power overall satisfaction score. They offer generous coverage and discounts for good driving habits and have fewer complaints compared to other large competitors.

Amica

Amica has high marks for customer satisfaction and low consumer complaints. They offer free perks for good drivers, including accident forgiveness and a disappearing deductible. They also give customers the option to buy a dividend-paying policy, which can save money in the long run.

USAA

USAA has high customer satisfaction ratings and offer a discount for storing your car on a military base. Their auto insurance is only available to active military, veterans, and their families.

Auto-Owners

Auto-Owners has high customer satisfaction scores from J.D. Power and a low NAIC complaint index. They offer at-fault accident forgiveness as an add-on and various other types of insurance besides auto.

NJM

NJM has fewer complaints than most insurers of its size and high customer satisfaction rates. They offer perks such as free pet coverage and new car replacement. However, they are only available in five states.

Lemonade

Lemonade is a digital-first insurance company that exclusively operates via a highly-rated mobile app. They use artificial intelligence to offer useful online tools and lower-cost policies.

Coverage options

State Farm

State Farm offers a large array of additional discounts, including unique options like identity theft protection and roof replacement. It also provides add-ons such as accident forgiveness and new car replacement. State Farm has availability in 47 states for home and auto insurance, excluding California, Massachusetts, and Rhode Island.

USAA

USAA offers exclusive coverage options for military members and their families, including cyber insurance to protect electronic devices in the home. It also provides affordable policies and great customer service, with particularly attractive discounts tailored to military members. However, USAA is only available to military members, veterans, and their families.

Nationwide

Nationwide offers attractive discounts, such as its usage-based SmartRide® program, which can save up to 40% for good driving. Its pay-per-mile program, SmartMiles, is ideal for senior drivers or retirees who don't drive often. Nationwide is available in every state and territory except Alaska, Florida, Hawaii, Louisiana, Massachusetts, New Jersey, and New Mexico.

Erie Insurance

Erie Insurance provides unique add-ons such as new car replacement. It is limited to 12 states and Washington, D.C.

Allstate

Allstate offers a wide range of coverage add-ons, including vehicle service contracts and yard and garden equipment coverages. It also provides a large selection of additional discounts of up to 40%. Allstate is available across all 50 states and territories.

Financial strength

State Farm, USAA, and Nationwide are among the top auto and home insurance companies in the market, and all three boast an AM Best Financial Strength rating. State Farm, the top pick for best home and auto insurance company, has an A++ financial strength rating from AM Best. USAA, the second-best company, also has an A++ rating from AM Best. Nationwide, the third-best company, has an A.M. Best Financial Strength rating, although the specific rating is not mentioned.

Other notable companies with strong financial strength include:

• Allstate—A.M. Best Financial Strength rating
• Erie Insurance—A.M. Best Financial Strength rating
• American Family—one of the highest ratings from WalletHub editors and high marks for customer satisfaction
• Geico—offers one of the lowest rates for auto insurance and has one of the highest ratings from WalletHub editors
• Amica—offers dividend policies and has an A++ rating from AM Best
• Auto-Owners—available in 26 states and has an A++ rating from AM Best

Digital tools

• Online Quotes and Applications: Many insurance companies now offer the convenience of obtaining quotes and applying for policies online. This allows customers to easily compare rates and coverages from the comfort of their homes. Companies like Geico, Progressive, and State Farm are known for their user-friendly websites and online quote systems.
• Mobile Apps: Insurance mobile apps have become increasingly popular, as they provide customers with quick access to policy information, digital ID cards, and claims filing. For example, Geico's mobile app has received high user ratings for its functionality and ease of use.
• Live Chat and Online Chatbots: Some insurance companies have incorporated live chat and chatbot features on their websites, enabling customers to get quick answers to their queries. This enhances customer service and reduces response times.
• Digital Discounts: Insurance companies are also leveraging digital tools to offer discounts to customers. For instance, some companies may provide discounts for paperless billing and electronic documents, encouraging customers to manage their policies online.
• Usage-Based Insurance: Telematics and usage-based insurance programs are becoming more common. These programs use digital tools to track driving behaviour and offer discounts to safe drivers. Companies like Progressive and Nationwide have usage-based programs that can help lower insurance rates.
• Digital Claims Processing: Digital tools have streamlined the claims process, making it more efficient and convenient for customers. Policyholders can now submit claims online or through mobile apps, upload photos and documents, and track the status of their claims. This enhances the overall customer experience and speeds up the claims settlement process.
• Online Payments: Customers appreciate the convenience of making policy payments online or through mobile apps. Digital payment options provide flexibility and help ensure timely payments, reducing the risk of lapsed policies.
• Data Analytics: Insurance companies are utilising data analytics to improve various aspects of their business. They can analyse large amounts of data to identify trends, assess risks, and set competitive rates. Data analytics also helps them detect fraud and improve underwriting processes.

Frequently asked questions