If you are looking for the best auto insurance companies for Alabama, we’ve got some resources to help. There are, of course, some qualifiers. One is how you define a car insurance company as the best. Another is which car insurance companies have the highest reported customer satisfaction. We’ll use several sources that you can use to arrive at the best auto insurance companies for Alabama. The rest is up to you.
Alabama Department of Insurance – Although the state’s department of insurance doesn’t list a complaint index of auto insurance companies like some other states do, there is some useful information on buying car insurance on the site. The page is entitled, “Consumer’s Guide to Auto Insurance,” and it’s a good place to start.
Top-Rated Auto Companies Doing Business in Alabama – If you want to know the financial strength of an auto insurance company doing business in Alabama, go to the A.M. Best site’s Consumer Insurance Information Center. Here you can look up any insurance company you’re considering. Reviewing the current listings, here are some that stand out:
- Alfa Mutual General, Alfa Mutual Insurance, Alfa Specialty Insurance – all headquartered in Alabama, each has an A.M. Best Company rating of A+.
- Allstate – three affiliated Allstate companies, headquartered in Illinois, each with an A+ rating.
- American Family – headquartered in Florida, carries an A+ rating.
- Amica Mutual – headquartered in Rhode Island, carries an A++ rating.
- Auto-Owners Insurance Company – Michigan-based insurer with an A+ rating.
- Geico – Maryland-based, insurer carries an A++rating.
- Progressive – four affiliated companies, headquartered in Ohio, each with an A+ rating.
- State Farm – this Illinois-based insurer has an A++ rating.
J.D. Power and Associates – Another important consideration for the best car insurance companies for Alabama is which ones have the highest overall customer satisfaction, as measured by an independent third-party. The annual J.D. Power and Associates 2010 U.S. National Auto Insurance Study provides a good look at the best-rated car insurers across five factors: interaction, policy offerings, billing and payment, price, and claims. Checking their list, the top car insurance companies (doing business in Alabama, although they may be headquartered elsewhere) are Amica Mutual, State Farm, and Geico. Amica Mutual is the JDPA award winner, and State Farm and Geico each have a four-circle JDPA rating. Allstate, American Family Group, Liberty Mutual, Nationwide and Progressive each have a three-circle JDPA rating.
Biggest Auto Insurance Companies in U.S. – Maybe you’re like many consumers who will go with a household name, one that friends and relatives also use for their car insurance. In that case, you may be interested in the following statistic. Nationally, there are six companies that account for 53.9 percent in direct written premium total in 2008. These include:
- State Farm – 17.8 percent U.S. market share
- Allstate – 11.0 percent market share
- Geico – 7.7 percent market share
- Progressive – 7.2 percent market share
- Farmers – 5.5 percent market share
- Nationwide – 4.7 percent market share
For more tips on car insurance, visit our section on car insurance where you can get additional tips and insurance quotes.
Bottom line: Do your research to find the best auto insurance companies for Alabama. Remember that there is no single best auto insurance company that works for every person in every circumstance. Be sure to ask for all available discounts to get the best rate possible.