BEST CAR INSURANCE COMPANIES OF 2016 .

The best auto insures offer more than just a low price

Price: It’s the single most important factor for a lot of car insurance shoppers. Choosing a policy based on rates alone could cost far more out of pocket when filing a claim, however, and, statistically speaking, that will happen to each driver at least once every 18 years. It pays to get the right amount of coverage, whether it’s the cheapest package or not.
The best auto insurance companies have more than just competitive prices; they also offer versatile coverage options, superior customer service, a solid financial report, and an excellent shopping experience. I researched all of those factors and discovered that only four of the nation’s biggest insurers impressed me enough that I would recommend them to family and friends.

1. Amica: Best Overall Car Insurance Company
Amica was the strongest company overall in my research, and ranked number two in J.D. Power’s 2015 customer satisfaction report — that means out of 11,469 surveyed drivers, it had the second highest satisfaction rating among more than 20 different companies. It also received the highest Consumer Reports rating among auto insurance providers. Consumer Reports even noted that an overwhelming number of customers reported “relatively few” problems during the claims process.

2. State Farm: Best Car Insurance Company for Customer Service and Interaction
State Farm is the largest car insurance company in the nation, per Insurance Journal in 2016. Fortunately, it’s also one of the best — especially when it comes to the customer service experience. In 2015, State Farm received high praise from J.D. Power for its service interaction and claims handling. And of all the insured drivers I surveyed, it received the most positive remarks by far.
It is incredibly easy to get in touch with State Farm. You can call one of the company’s 18,000 agents, go online, or even send a picture of your damaged car with your smartphone using the Pocket Agent mobile app. Compare that to Amica, which doesn’t allow you to connect with an agent via an app, or file a claim through an agent. State Farm also gets high marks for a pain-free shopping experience that lets prospective customers call their local agent or chat with a representative online if they have any questions.




3. The Hartford: Best Car Insurance Company for Policy Options
The Hartford is only the nation’s 11th largest insurer, but it still packs a punch. In fact, it had the highest score in my 12-category feature evaluation (92 out of 100). It also offers a wide range of policy options and benefits (including rates based on how much you actually drive your car and a new car replacement program for cars totaled shortly after purchase) and was the only insurer to score a perfect 100 in my vehicle-discount evaluation.

4. USAA: Best Car Insurance Company for Members of the Military
Throughout my research, I found that the company’s stellar reputation holds true. If you are a member of the US armed forces, or are related to one, there is no better option than USAA.
It is one of the three highest-rated automotive insurers in the country. The only downside is its limited availability: USAA only services the immediate families of active and former members of the military. Given those restrictions, the quote process is a bit more intense compared to its competitors, but that’s a small price to pay for its exemplary service.

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MICHIGAN AUTO INSURANCE RATES GO UP IN OCTOBER

LANSING – In October, an estimated 2 million Michigan drivers can expect to pay $40 more per vehicle for their auto insurance.

Auto insurers blame the rate increase on the removal of an $80 million tax credit from the state’s 2016-2017 budget. State lawmakers say the tax credit was unintentionally created in 2012 when they changed the organization that managed the auto insurers’ reimbursement fund, which took money out of the general fund.

The rate increase only affects customers of Michigan-based auto insurers, such as Auto-Owners, AAA or Frankenmuth Insurance. Michigan-based insurers provide service to one-third of Michigan drivers. The tax credit was never available to out-of-state insurers, such as State Farm.
“That money created a hole in the budget. We would have had to make cuts in a number of places,” said State Rep. Al Pscholka, R-Stevensville, who introduced H.B. 5457 along with Rep. Jon Bumstead, R-Newaygo, and Rep. Earl Poleski, R-Spring Arbor.

Prior to 2012, Michigan-based auto insurance companies paid money to a fund managed by the Secretary of State’s office. The fund would reimburse companies when they had to cover damage caused to their clients by uninsured drivers. To make the system more efficient, the Legislature had the Michigan Auto Insurance Placement Facility manage the fund, which accidentally made Michigan-based auto insurers able to receive a tax credit.

“Industry-wide, companies are very disappointed with the loss of this credit,” said Pete Kuhnmuench, executive director of the Insurance Institute of Michigan, which represents the Michigan insurance companies. “The burden is being forced upon the smaller pie of the (insured).”
Pscholka said if the tax credit helped save some insurance companies money, then their customers should have paid less. As a customer of Michigan-based auto insurer, Pscholka said he doesn’t remember receiving credit or paying lower rates.

Despite Michigan-based companies receiving the tax credit, the total average premiums across the board increased in the state from $1,172 in 2012, to $1,264 in 2013, according to the most recent data from the National Association of Insurance Commissioners.
Premiums have increased every year since 2009 and will likely continue to increase each year largely due to the fact that it’s mandatory for insured drivers in Michigan to have unlimited personal injury protection (PIP). This means if an insured driver gets in an accident, their insurance company will pay all their medical bills related to that accident for the rest of their life if necessary, where most states have offer limited PIP or make the coverage optional.

Companies also have to pay for the bills of anyone else injured in the crash, including the passengers of the other vehicle if the driver of that vehicle is uninsured.
Auto insurers operating in Michigan paid a total of $2.9 billion for PIP claims in 2012, according to the NAIC report, which equates to average payment of roughly $65,000 for each of the 44,620 claims. The rising cost of medical care also has an impact.
Kuhnmuench said the tax credit only helped slow the rate of the increasing premiums.
Both Kuhnmuench and Pscholka agree that reform needs to be made to make rates more affordable. Kuhnmuench said auto insurers would like to have PIP have a cap on the amount of coverage, which would lower rates for customers.
But that’s easier said than done.
“It’s been looked at for years,” Pscholka said. “Several bills have been introduced over the years, but they don’t have the votes.”
For now, Pscholka suggests people compare insurance company rates to see what best works for them.

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