Top Insurance Companies in US

Insurance Companies

What is insurance?

Insurance is a contract between an insurance company and the insurance taker, it is represented as a policy that assures in case of any financial risk or loss due to damage to the insured or his property, or if he’s liable for damage/injury caused to a third party, then insurance company will compensate against his losses.

How insurance works?

Insurance works as during the lifetime of a policy, if you make regular payments, known as premiums to the insurance company then if you make a claim your insurer will pay out for the loss that is covered under that policy.

Why do you need insurance?

Insurance is important for you if you’re not financially sound and ready for an emergency need of fund. When you buy insurance, the insurance company helps you in need of funds or at retirement in exchange for a fee.

Insurance helps mortgage lenders to know your home is protected, helps you on terms that’s covered in your policy. It provides protection against theft, damage from fire and water, and financial responsibility that could result from someone being accidentally injured on your property.

Not all people can afford repair cost, health care costs and legal expenses also auto insurance is also a legal requirement.

It helps you financially if you become disabled or have a critical illness also covers all your expenses like your daily expenses and mortgage while you focus on your health and recovery.

This covers your health benefits for your family in the event of a death. There are different types of insurances which help you in different areas.

How insurance premiums are calculated?

An insurance company takes two important factors into consideration while calculating the premium

First one is how likely is it that someone will need to make a claim and second is the person who wants to take a policy is a bigger or smaller risk than the ‘average’ policyholder like

For example, a young person with a high-powered expensive car can be charged higher premium as they are more likely to be involved in an accident than a mature, experienced driver with a cheap/low powered car.

To decide on the type of insurance you need think about:

  • why you need insurance cover
  • what do you want to include in your cover
  • how much you can afford to pay per monthly/quarterly/annually
  • how long you might need the insurance cover
  • whether you want cover for yourself or for loved ones

How to buy insurance

There are many ways you can buy insurance like you can research the information yourself before buying a policy, or seek professional advice if you are unsure about the kind of cover you need by insurance agents and consulting firms.

How to choose an insurance company?

You need to consider these terms while choosing the best insurance company for yourself

  • Always check if the insurance company is registered in your state so that you can go to state government if anything goes out of contract.
  • Understand the financial strength of the insurance company.
  • Select an insurance company that provides coverage according to your personal or business needs.
  • Always compare prices and discounts available but never buy a policy based on price alone – the cheapest policy may not cover all of your needs
  • Understand how you can interact with the insurance company/customer service of that company.
  • what exclusions the policy might have

Insurance Companies

Top insurance companies in US

United Healthcare Group – 48.9 million members

Anthem Blue Cross – 40.8 million members

Aetna – 22.1 million members

Best life insurance companies in USA (Source: Investopedia)

Overall: Prudential

Instant Issue: State Farm

Value: Transamerica

Car Insurance companies in USA (Based on a survey by US News)

  • USAA
  • State Farm
  • Geico
  • Nationwide
  • Farmers

Best home insurance companies (According to bankrate.com)

 NameRatingaverage annual premium for $250K dwelling coverage
USAA*4.8$992
State Farm4.7$1,503
Erie4.6$897
NJM4.6$355

Best insurance company for renters insurance (source: Forbes)

1. American Family Average (Average renters insurance cost:  $149)

2. Lemonade (Average renters insurance cost:  $154)

3. USAA :best for military/veterans (Average renters insurance cost:  $140)

4. Erie (Average renters insurance cost:  $140)

5. Progressive (Average renters insurance cost:  $220)

The 7 Best Small Business Insurance Companies of 2021

Overall:  State Farm

Best for Independent Contractors: Hiscox

General Liability Insurance: Nationwide

Best Workers’ Compensation: The Hartford

Commercial Property Insurance: Travelers

Business Owners Policy: Liberty Mutual

Commercial Auto: Progressive Commercial