Buying a home or new car are often reasons to celebrate. Less widely celebrated? The struggle to find affordable insurance policies to protect those very same purchases.


For homeowners in regions that have repeatedly borne the brunt of natural disasters, like wildfires and hurricanes, insurance premiums have become so onerous that an increasing number of Americans are forgoing insurance policies due to cost. And several insurers, unwilling to assume the risk these areas face, are pulling back on coverage. As a result, as of June, 88% of homeowners nationally held an insurance policy, down from 95% in 2016, according to Loretta Worters, vice president of media relations at the Insurance Information Institute (Triple-I).


But price hikes and reductions in coverage have been driven by more than natural disasters. Inflation, labor shortages and supply chain disruptions have also shaken the insurance market for both homeowners and car owners. Meanwhile, auto insurers have had to contend with rising auto accidents over the last three years, sending auto insurance higher by about 19% between August 2022 and August 2023, according to the Consumer Price Index.



To help consumers navigate these obstacles, Forbes’ has compiled its annual list of America’s Best Insurance Companies. Created in partnership with market research firm Statista, the rankings result from a survey of more than 15,000 people in the United States with an insurance policy in at least one of five categories: homeowners, renters, auto, permanent life or term life insurance.


Survey respondents were asked whether they would recommend their insurance company to others, and to rate their provider based on such criteria as cost, customer service, the guidance agents offered, company transparency, digital services and claims service. The ratings were then combined into a final score and, ultimately, 84 companies made at least one of the five lists.


Only five companies made the rankings in all five categories, including USAA (No. 1 in renters, No. 5 in homeowners, No. 5 in permanent life, No. 6 in term life, and No. 7 in auto) and Erie Insurance (No. 1 in permanent life, No. 5 in term life, No. 6 in auto, No. 7 in renters, and No. 8 in homeowners), as well as American Family Insurance (No. 4 in term life), Nationwide Mutual Insurance and State Farm.


Top-rated insurers led the pack by focusing on accessibility, efficiency and personalized customer service. David Russo, senior vice president of customer service at Erie Insurance, headquartered in Pennsylvania, says that their company offers digital capabilities that allow customers to connect “when, where and how they want,” coupled with “just the right amount of human touch to make a difference.”



Wisconsin-based American Family Insurance (AmFam) has invested in both technology and insurance advisor training to enable customers to contact them through its website, mobile app, text, email, live chats or old-school phone calls. “What we see with customers is the desire for a seamless omnichannel and the ability to interact with whichever channel they choose, whenever they choose,” says Tyler Whipple, American Family’s vice president of customer insights, analytics and technology.


AmFam and other insurers distinguish themselves by operating as mutual insurance companies, where, Whipple says, “our customers are our owners.” Within this structure, profits from premiums and investments are typically distributed to customers as dividends or reinvested in services and products that benefit policy holders. “Some people love the fact that certain mutual insurance companies offer dividends, so they feel like they’re making a little money,” says Worters at Triple-I. “Everybody wants to save money.”


Mitch Livingston, president and CEO of NJM in New Jersey (No. 7 in homeowners and No. 14 in auto), says that operating as a mutual company enables policy holders to “feel that they’re part of the company.”


Still, no amount of investment in the company can quell the concerns of policy holders living in areas that have been repeatedly plagued by natural disasters. “All these different disasters seem to be getting worse,” says Worters. “Tornado Alley is no longer Tornado Alley—it’s now dispersed into other states. And the wildfire season is no longer a season—it’s become much, much longer than it used to be.”