Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Aug 30, 2021

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Key Takeaways

  • A.M. Best and J.D. Power share car insurance claim ratings annually
  • GEICO is the cheapest car insurance company in the nation for all drivers
  • Full coverage car insurance is about $90 a month on average
  • You can secure cheap car insurance rates through discounts

Are you looking for the best auto insurance companies for paying claims? How do you know which car insurance companies are the best at paying out claims? And which auto insurance company is the most affordable?

You can find the best car insurance companies for paying claims by comparing insurance ratings. Keep reading to find answers to answer frequently asked questions about filing car insurance claims and how to deal with claims from no-fault and at-fault drivers.

After you learn everything about the best car insurance company for paying claims, enter your ZIP code in the free online tool above to compare quotes from multiple insurance companies near you.

What is the cheapest car insurance company for paying claims?

GEICO and USAA are the most affordable auto insurance companies in the United States. But what makes both companies cheaper than competitors?

Cheap car insurance quotes depend on several factors, such as age, gender, driving record, and credit history. Where you live will also determine how much you pay for car insurance, and car insurance rates by state can vary wildly.

But auto insurance costs don’t specify how well insurance pays out claims. The best way to determine how well an auto insurance company pays claims is to look at its financial strength ratings.

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How do A.M. Best ratings show the best car insurance companies’ abilities to pay out claims?

A.M. Best – one of the best international rating agencies – releases performance ratings every year.

We researched the ratings and compiled them for you. Let’s compare each of the top companies’ ratings and average monthly rates.

Top Car Insurance Companies' A.M. Best Ratings and Monthly Rates
Car Insurance CompaniesA.M. Best RatingsAverage Monthly Car Insurance Rates
AllstateA+ (Superior)$227
American FamilyA (Excellent)$160
FarmersA (Excellent)$206
GEICOA++ (Superior)$128
Liberty MutualA (Excellent)$284
NationwideA+ (Superior)$163
ProgressiveA+ (Superior)$202
State FarmA++ (Superior)$168
TravelersA++ (Superior)$205
USAAA++ (Superior)$115
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For now, GEICO and USAA are the cheapest company for all other drivers. However, your rates may vary. Try shopping at smaller companies like Auto-Owners Insurance, Erie Insurance, Esurance, and North Carolina Farm Bureau.

Sometimes the cheapest auto insurance company isn’t always best for paying out claims. Read on to see how J.D. Power grades various car insurance companies in the nation.

What are the car insurance claim ratings from J.D. Power?

The best car insurance companies for paying claims are listed in J.D. Power’s Annual Auto Claims Study.

Review the list below to see which auto insurance company has the highest J.D. Power satisfaction rating.

2020 J.D. Power U.S. Auto Claims Satisfaction Study
Car Insurance CompaniesJ.D. Power Score (Based on a 1,000-Point Scale)
American Family862
Amica Mutual907
Auto Club of South California Insurance Group866
Auto-Owners Insurance890
Automobile Club Group858
COUNTRY Financial863
CSAA Insurance Group862
Erie Insurance880
Liberty Mutual867
National General815
NJM Insurance Co.909
State Farm881
The Hartford888
Industry Average872
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Amica Mutual, Auto-Owners Insurance, and NJM Insurance Company had the highest J.D. Power rating in 2020.

The top car insurance companies in the nation ranked below these auto insurance companies, proving that the cheapest may not always be the best when it comes to paying out claims.

How do car insurance companies pay out claims?

Auto insurance companies pay out claims in multiple ways. Look over these examples to see how car insurance companies pay claims.

  • A claim is paid after a no-fault driver submits two to three estimates of property damage expenses
  • Auto insurance companies pay out a claim after you’ve paid a collision or comprehensive deductible
  • The no-fault driver is reimbursed for bodily injury costs after presenting medical bills to the auto insurance company
  • You present a list of services you paid for while you were injured (usually for personal injury protection)

Collision coverage, comprehensive insurance, and personal injury protection are no-fault coverages.

But collision and comprehensive insurance require you to pay deductibles before any claims are paid out.

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What happens when a car insurance claim is made against you?

A car insurance claim against you means you were at fault in an accident.

Police officers usually determine fault. If you’re at fault, law enforcement will give you a copy of your traffic ticket, which may come with a summons to the local court. If you get into an accident in another state, you’ll have to report to that state’s local traffic court.

The no-fault driver can file a claim with your auto insurance company. Your liability insurance covers the bodily injury and property damage costs.

But if you’re not at fault, the at-fault driver has to prove that you were at fault in the car accident and that the police officer was wrong.

Can I dispute a car insurance claim against me?

Now sure how to dispute a car insurance claim against you? Start by checking your police report and sending it to your insurance company.

Don’t contact the other party directly. If the other driver’s insurance company is responsible for injuries and damages, contact them and file a claim.

When a company wrongfully ignores your claim, take your claim to an attorney and let them represent you.

If you’re uninsured, you may want to find a lawyer. The law is tough on uninsured drivers. You could get sued, lose your driving privileges, pay fines, or potentially face jail time.

How can I lower my car insurance rates after a claim?

You can expect your rates to go up after you file a claim, and you may be considered a high-risk driver if you are at fault for the accident. The easiest way to lower your auto insurance rates after a claim is to take a defensive driving class and ask about car insurance discounts. 

You can secure cheap car insurance rates when you qualify for several discounts. No matter your situation, you can still get auto insurance bargains.

What are the most effective car insurance discounts? Here’s a list of the most effective deals for drivers searching for cheaper car insurance rates:

  • Anti-Theft Discount: Varies
  • Automatic Payments Discount: At least %2
  • Multi-Policy Discount: Up to 25%
  • Multi-Vehicle Discount: Varies
  • Paperless Billing Discount: At least 2%
  • Pay-In-Full Discount: Up to 5%
  • Defensive Driver Discount: Up to 40%
  • Safety Features Discount: Up to 15%

The best insurance companies allow you to combine (or stack) your auto insurance discounts, but each company is different. Therefore, your savings will vary for each insurance company.

How to Find the Most Affordable Car Insurance Companies for Paying Claims

GEICO and USAA are excellent auto insurance companies, but NJM Insurance Company and Amica Mutual had better success paying out claims.

Now that you know about the best car insurance companies for paying claims, use our free online quote tool to compare multiple insurance companies in your area.