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Global Insurance Report 2023: Reimagining life insurance

Over the past decade, our publications have chronicled the increased instability the life insurance and retirement industry has experienced. They’ve also reckoned with the trends that have been causing industry players to rethink their operating models, such as digital transformations; the rise of environmental, social, and governance (ESG) concerns; and the shifting economic environment. More important, they’ve worked to inspire insurers to consider new avenues for value creation.

About the authors

This life insurance chapter of the Global Insurance Report 2023 is a collaborative effort by Vivek Agrawal , Ramnath Balasubramanian , Pierre-Ignace Bernard , Kristin Cummings Cook, Henri de Combles de Nayves , Alex Gestal, and Bernhard Kotanko , representing views from McKinsey’s Insurance Practice.

In February 2022, the inaugural McKinsey Global Insurance Report offered a comprehensive overview of the challenges and opportunities facing the global insurance industry. 1 “ Creating value, finding focus: Global Insurance Report 2022 ,” McKinsey, February 15, 2022. The 2023 report will be released in chapters and builds on that work with a new level of granularity and precision of recommendations for how insurers can accelerate growth and exceed performance targets.

This chapter covers life and retirement, including the major forces at play in the current life insurance industry, several ways insurers have adapted, and opportunities that life insurers and stakeholders can consider going forward—as well as the fundamental implications for their business models as a result.

Four paramount forces creating opportunities and obstacles for the industry

Over the past decade, the life and retirement industry has experienced increasing instability. Four paramount forces will continue to shape the industry globally over the coming decade.

1. Growing awareness of personal risk, and uncertain availability of socially funded benefits

More citizens are realizing that they are personally responsible for their future health and retirement costs: advanced economies’ governments have become more indebted, and government health and retirement programs—such as the United States’ Social Security program and Japan’s National Pension System—are experiencing funding gaps, resulting in a nearly $41 trillion global pension gap. 2 “The pension gap epidemic,” The Geneva Association, October 2016. This realization, however, is creating opportunity for insurers in the industry.

2. Near-term tailwinds from rising nominal rates, but real rates may remain low for long

Nominal interest rates will remain elevated in the foreseeable future as central banks look to get inflation under control. This is in sharp contrast to what we have seen over the past two decades, which have largely consisted of quantitative easing and ultralow nominal rates. In the near-term, life insurers may use these tailwinds to passively capture growth opportunities, especially as asset rotations on the investment side happen quicker than adjustments on the liability side, which results in higher spread.

3. The growing role of technology

Customer expectations are increasing when it comes to level of service, including the desire to integrate digital technology with conventional products. As such, many companies have shifted their business models to increase their adoption of disruptive technologies such as cloud computing and applied AI and have used more agile ways of working, as well as new talent attraction strategies.

4. Rise of Asian economies and the return of geopolitics

A new middle class has begun to emerge in Asia and other developing economies. In China, India, and Southeast Asia, the middle-class population is projected to grow to 1.2 billion people by 2030 and make up nearly 14 percent of the total global population. 3 Augusto de la Torre and Jamele Rigolini, “MIC Forum: The rise of the middle class,” The World Bank, 2011. However, seizing the full potential of these opportunities won’t be easy given renewed geopolitical risks and concerns.

An industry at the crossroads

These forces have been affecting industry performance, shifting the sources of value creation and accelerating structural changes. A look at the current dynamics in the industry offers a compelling case for action.

Disappointing performance and declining industry relevance

A confluence of factors, some in direct control of life insurers and others exogenous, has deeply affected the industry’s performance in recent years.

Nominal GDP growth has far outpaced premium growth. Life insurers have faced several challenges delivering growth and returns. In the past two decades, economies grew faster than insurance premiums, indicating insurers haven’t been growing at the same rate as the economies in which they operate. In the United States and Europe, nominal GDP grew at a CAGR of 4 percent over the past 20 years, but premium growth grew at a CAGR of 2 percent. In Asia (excluding Japan), economies grew at a CAGR of 10 percent while premiums grew just 3 percent.

The industry has struggled to generate returns in excess of cost of capital. Over the same period, the industry struggled to generate profitable returns after the cost of capital. Insurers have also struggled to change their performance relative to peers: of insurers that were in the bottom quintile of performance, nearly two-thirds remained in the bottom quintile ten years later.

Carriers have still not structurally addressed their cost base. Compared to other industries, life insurers have still not structurally addressed their cost base. Since 2003, costs as a share of revenues have increased by 23 percent for life insurers—compared to a 5 percent increase for P&C insurers—while other industries, including asset management, have been able to address costs. While these structural costs have been rising for two decades, the imperative to address them may have arrived.

Life insurers’ relevance in capital markets has declined. The lack of returns after cost of capital, muted growth, high volatility in earnings, opacity of risks and sources of earnings and value, and lack of individual insurer performance mobility have caused the global life insurance industry to gradually lose its relevance with investors, particularly in the public markets. This trend is most apparent in the United States, where the largest US life insurers’ share of market capitalization relative to other financial-services peers has decreased over the past 35 years—from 40 percent in 1985 to 17 percent in 2005 to only 9 percent in 2020. This is according to McKinsey analysis of data of the top 20 publicly traded life insurers, banks, and asset management and securities brokers in the United States.

Sources of value shifting

The value pools and sources of creation across the life insurance industry are not homogenous. Carriers face choices in products, components of the value chain, and geographies.

Huge dispersion in growth hot spots. While overall industry performance has been disappointing, across the globe there are some notable pockets of growth and opportunity. In the United States, products that provide principal protection with some upside based on market performance (fixed and fixed-indexed annuities and variable universal life, for instance)—as well as simple, protection-oriented products (such as accident and health products distributed through worksite channels)—are expected to grow more than 5 percent between 2021 and 2026. Over the same period, market-oriented annuity products where the customer bears most or all of the risk are expected to decline by more than 5 percent.

Value creation shifting to investment alpha. As interest rates have declined over the past two decades, the importance of investment alpha as a source of competitive advantage has increased. Despite near-term nominal tailwinds, low-for-long real rates will continue this shift toward investment alpha. Returns on conservative investment allocations have plummeted below the cost of holding traditional insurance liabilities, and in an environment in which it is cheap to raise capital, life insurers gain competitive advantage from growing high-yield assets.

Carriers are now weighing the risks and fiscal costs to operate in developing economies. Companies have started to rethink what it means to be a “global insurer.” Historically, life insurers looked toward markets that were similar to theirs—which also tend to be closer geographically—to expand market share and drive top-line growth. As technological advancements accelerated the globalization process, insurers began to expand globally, particularly into Asia, to diversify their portfolios and increase valuations. As the economics of the world have changed, insurers are weighing the risks and fiscal costs to operate in several regions.

Big structural changes in motion

Entrants and new sources of capital are disrupting and pushing the structural evolution of the sector.

Private capital–backed platforms gaining relevance. The past decade has seen a continuous rise of private capital–backed platforms—typically fully or partially owned by alternative asset managers, which find the life insurance industry attractive for several reasons. Primarily, they’re enticed by the opportunity to drive improvement in performance and by the potential to access “permanent” capital in form of a stable pool of liabilities, which can be deployed into various asset strategies, from traditional fixed income to more structured products or alternatives. 4 For more, see Ramnath Balasubramanian, Alex D’Amico, Rajiv Dattani, and Diego Mattone, “ Why private equity sees life and annuities as an enticing form of permanent capital ,” McKinsey, February 2, 2022. In turn, they can generate more predictable fee-based earnings streams while reducing the overall fundraising burden. In the United States alone, private capital–backed platforms account for almost $292 billion in general account reserves, making up about 9 percent of the industry stock, according to our analysis. These platforms also have significant market share in some categories of new business generation: among the leaders within each product line, private capital–backed platforms accounted for 40 percent of fixed-indexed annuities sales in 2021, up from 7 percent in 2011, and 19 percent of fixed-rate deferred annuities sales in 2021, up from zero a decade prior.

Structural shift toward more independent, third-party distribution. In recognition of the power of earning streams from distribution, investors have tended to reward the capital-light earnings generation of pure-play distributors, such as brokerages, independent marketing organizations, and field marketing organizations. Those players have generated 2.6 times the TSR of life insurance companies since 2010 and currently trade at nearly 2.8 times the price-to-earnings multiple of their life insurance counterparts.

Beyond continued innovation and the shift in value toward distribution, the industry is also experiencing a structural shift toward more independent distribution. Many companies have moved away from captive or affiliated distribution because of the increased commoditization of many insurance and annuity products and the increasingly open technology architecture and choice offered by insurance distributors. In the United States, third-party distributors are increasingly becoming more dominant, expanding their share of the market from 49 percent in 2010 to a forecasted 55 percent in 2021; conversely, proprietary distribution networks are declining in prevalence, from 30 percent to 26 percent during the same time period. In Europe and Asia, we can see a similar—although smaller—increase in third-party distributors. In the same timeframe, Europe increased its market share from 17 percent to 18 percent, and Asia increased its share from 8 percent to 11 percent. Within Asia, the share of third-party distribution is still low overall, and select insurers with high-quality, proprietary distribution will continue to see high value creation from this model.

On the horizon: Fundamental reimagination of life insurance business model

Insurers will have a dizzying number of options available to them in the coming years—as will investors. In the balance of this report, we detail how insurance companies will shift their priorities in the near future and how different types of insurance models can help determine how best to meet the objectives of their investors. The question is clear: what strategic strengths can insurers depend on to generate growth in the coming turbulence?

Four ‘unbundled’ business models to drive value creation

Traditionally, insurers have achieved profit and growth by identifying attractive products and markets, such as individual protection and annuities, and structuring their end-to-end value chain to support these products and markets. Ownership of most of the value chain was important to simplify operations and maintain control over the end-customer experience. Today, the industry is reconsidering this approach to the value chain in two notable ways: product bundling and functional unbundling.

When it comes to products, those that meet the needs of the same customer segments—such as retirement and wealth and asset management services or group and retail sales—are converging, which is pushing insurers into new territory. Some insurers will even go so far as to branch into the health and protection ecosystems if there is a demand from their customers. 5 For more, see Mathew Lee, Arielle Pensler, Neha Sahgal, and Matthew Scally, “ US workplace benefits: Connecting health, wealth, and wellness ,” McKinsey, October 3, 2022. Insurers are also expanding and evolving their product shelf, shifting the mix away from traditional and balance sheet–heavy products to capital-light products and combining distribution points to create a simpler, more integrated customer experience.

Looking ahead, insurers will increasingly “unbundle” their value chain and focus on sources of distinctive value creation while seeking partnerships or leaving the other parts of the value chain to those who are advantaged. Unbundling helps uncover value within the integrated business model and focuses on distinctiveness while creating new sources of growth and value. 6 For more, see Ramnath Balasubramanian, Rajiv Dattani, Asheet Mehta, and Andrew Reich, “ Unbundling value: How leading insurers identify competitive advantage ,” McKinsey, June 9, 2022.

Four insurance functions will take center stage during this change: product design and underwriting, balance sheet management, distribution, and technology and administration. Insurers can start by determining how the strengths of their business model map to these four functions (exhibit). Balance sheet specialists, for example, might consider finding a distribution partner, while distribution specialists tend to be best served by partners in product design and underwriting or balance sheet management. Those insurers can then use those strengths to differentiate themselves, achieve profitable growth, and appeal to investors.

Imperatives and priorities for life insurers

This shifting industry structure will create new opportunities for where and how life insurers create value, elevating the industry’s relevance to consumers and its attractiveness to investors. Insurers will have to chart a course through these shifts and choose their mode of value creation, which will be partly informed by their organizational goals and investor expectations. In the life and retirement industry, six themes dominate the investment attraction agenda: top-line or market share growth, diversification (via geographies and products), societal and customer impact, low volatility of results and dividends, ROE, and capital generation.

Insurance companies are likely to focus on some combination of these themes based on their ownership type and specific owners. Even within the broader classifications of insurers, however, individual insurers will have unique situations—and thus unique expectations. Below we offer a simplified overview of how four broad insurance models could respond to organizational goals and investor expectations by using their strengths to differentiate themselves in the industry.

Insurers backed by private capital and alternative-asset-management players. As they look to the future, these insurers will want to proactively develop new growth vectors, such as more flow-based business beyond pure legacy M&A and international or geographic expansion. They may also continue to strengthen risk management capabilities (given the relatively higher-risk profile of their investment portfolio), further enhance their investment management capabilities through more dynamic portfolio rebalancing, and develop additional sources of value creation beyond pure investment alpha (for example, by becoming more ingrained in operations and technology to find value).

Mutuals. As they look toward the future, mutuals may want to innovate more in their product offerings to capture growth through distinctive product specialization that better matches customer needs, as well as to transform their distribution and customer engagement capabilities. They also might have to focus on their operational efficiencies to bring down costs and focus on their quality of governance to improve productivity and capital allocation.

Stock-traded insurers. Going forward, stock-traded insurers need to address the issue of where they have unique competitive advantage and can generate capital, such as in certain geographies, lines of business, or parts of the value chain. For example, these insurers may build or partner with others to achieve table stakes investment-management capabilities, which would help them compete with insurers backed by private capital or alternative-asset-management players and take advantage of opportunities that others are slow to capture. They might also want to find innovative ways to harness their growth opportunities and ensure they are properly valued by investors.

State-owned insurers. As demand for life products changes and becomes more specific for each consumer, state-owned insurers should develop innovative products that are better suited to evolving customer needs. They also need to keep up with the pace of digital transformation seen in the private sector, all while balancing these large investments with their solvency position. Finally, these insurers may have to address talent attraction—for example, to improve their underwriting capabilities and compete with insurers in the private sector.

Life insurers have responded to broader trends and industry shifts by reevaluating their traditional business models. The industry will face persistent challenges in the coming years, such as returns after cost of capital and geopolitical risks, as well as new challenges and uncertainty, such as high inflation and volatile macroeconomic environments. Nonetheless, there are pockets of optimism and opportunity for those who can identify, invest in, and capitalize on their distinctive capabilities to meet the expectations of their owners and stakeholders. Ultimately, a changing industry landscape can allow insurers to overcome current performance challenges by transforming both where and how they generate value.

Vivek Agrawal is a senior partner in McKinsey’s Minneapolis office; Ramnath Balasubramanian is a senior partner in the New York office, where Alex Gestal is an associate partner; Pierre-Ignace Bernard is a senior partner in the Paris office, where Henri de Combles de Nayves is a partner; Kristin Cummings Cook is a consultant in the Stamford office; and Bernhard Kotanko  is a senior partner in the Singapore office.

The authors wish to thank Rajiv Dattani, Erik Harrison, Asheet Mehta, Jörg Mußhoff, Fritz Nauck, Katrine Pertsovski, and Andrew Reich for their contributions to this report.

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RESEARCH IN INSURANCE LIMITED

Company number 11360478

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Protecting the present and building a better future

At Chubb, we assess, assume and manage risk with insight and discipline.

Chubb is a world leader in insurance. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. We combine the precision of craftsmanship with decades of experience to conceive, craft and deliver the very best insurance coverage and service to individuals and families, and businesses of all sizes.

Chubb is also defined by its extensive product and service offerings, broad distribution capabilities, direct-to-consumer platform partnerships, exceptional financial strength and local operations globally. The company serves multinational corporations, mid-size companies and small businesses with property and casualty insurance and risk engineering services; affluent and high net worth individuals with substantial assets to protect; individuals purchasing life, personal accident, supplemental health, homeowners, automobile and specialty personal insurance coverage; companies and affinity groups providing or offering accident and health insurance programs and life insurance to their employees or members; and insurers managing exposures with reinsurance coverage.

Chubb has more than $225 billion in assets and reported $57.5 billion of gross premiums written in 2023. Chubb’s core operating insurance companies maintain financial strength ratings of AA from Standard & Poor’s and A++ from AM Best.

Chubb Limited, the parent company of Chubb, is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index.

Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs approximately 40,000 people worldwide.

A global leader in property and casualty insurance

We insure sailboats for weekend outings and cargo ships  for global trade.

We protect the bakery around the corner and the farmer who grows the wheat.

We protect  businesses large and small and the individuals who manage them.

We protect people  and the possessions they treasure most.

Chubb at a glance

Portfolio of leading businesses: Commercial

• Global leader in traditional and specialty P&C coverage for businesses of all sizes
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Portfolio of leading businesses: Consumer

• #1 personal lines insurer for high-net worth families in the U.S.
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Underwriting excellence

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Exceptional service

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Product and distribution breadth

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Financial strength

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Strong culture

• We practice our craft with precision and hold ourselves to exacting standards
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Proven leadership

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Building to thrive in a digital age

• We are transforming Chubb to be compelling in a digital age
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• Major initiatives include IoT devices, Chubb Studio and Chubb Blink 
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Read the Chubb Limited 2023 Annual Report

Featured in the Chubb Limited 2023 Annual Report is Chairman and CEO Evan Greenberg’s Letter to Shareholders, highlights of Chubb’s record-breaking financial results, a review of our business operations across products and geographies around the world, and our Form 10-K, Swiss statutory financial statements and compensation report.

Chairman and CEO Evan Greenberg’s 2023 letter to shareholders

In his annual letter to shareholders, Evan Greenberg, Chairman and CEO, reviews the company’s performance in 2023, including its record financial results, operating highlights and longer-term strategies that position Chubb for future revenue and earnings growth. He also shares his perspective on key issues affecting the company, the industry and the world, from the economy and trade to the current risk environment, the U.S.-China relationship, restoring America’s leadership role in global trade, operating in a digital age, and responsibly insuring the transition to a net-zero economy.

Click here to  download the letter to shareholders .

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Chubb’s culture is defined by who we are, the behaviors we expect of each other, and what we reward and recognize. Fueled by a can-do attitude, we practice our craft with precision and passion, hold ourselves to exacting standards, respect and value differences, and stand behind the promises we make. 

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Chubb’s top leaders have built their entire careers in insurance and managed their business lines through a variety of insurance cycles and economic conditions.

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Our approach to corporate governance is an important part of who we are and how we conduct ourselves every day, helping us mitigate and manage risks by providing clear lines of oversight and responsibility for management and the board of directors. 

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Good corporate citizenship lies at our core — how we practice our craft of insurance, how we work together to serve our customers, how we treat each other, and how we help to make a better world.

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We recognize our responsibility to ensure opportunity within our own organization by creating an atmosphere where all colleagues, regardless of who they are, feel comfortable to do their best, contribute to their fullest potential in support of our business objectives, and can advance and thrive in their careers. 

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Since 1792, when merchants Samuel Blodget and Ebenezer Hazard decided to enter the marine insurance business — and soon became the first company to cover not only buildings against fire, but also their contents — Chubb has been a leader and an innovator in the industry.

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Chubb has an extensive local presence globally, with insurance professionals and operations in 54 countries and territories. Nearly 40 percent of our business is transacted outside the United States.

From our newsroom

Chubb Reports First Quarter Per Share Net Income and Core Operating Income of $5.23 and $5.41, Up 15.5% and 22.7%, Respectively; Consolidated Net Premiums Written of $12.2 Billion, Up 14.1%, with P&C Up 12.4% and Life Insurance Up 26.3%; P&C Combined Ratio of 86.0%

Chubb Reports Fourth Quarter Per Share Net Income and Core Operating Income of $3.13 and $4.05, Respectively; Consolidated Net Premiums Written Up 11.9%, or 16.0% in Constant Dollars, with P&C Up 9.8% and a Combined Ratio of 88.0%, or 85.9% Excluding Agriculture

New Chubb and National Center for the Middle Market Survey Finds Middle Market Economic Confidence Rebounds from 2022 Mid-Year, but Still Trailing 2021 Historical Averages

Chubb Announces Global Climate Business Unit to Help Combat and Manage Climate Change

Chubb Announces Plans for New Philadelphia Office

Chubb to Launch New Technology Hub in Thessaloniki, Greece

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Hackers may have stolen the Social Security numbers of every American. Here’s how to protect yourself

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About four months after a notorious hacking group claimed to have stolen an extraordinary amount of sensitive personal information from a major data broker, a member of the group has reportedly released most of it for free on an online marketplace for stolen personal data.

The breach, which includes Social Security numbers and other sensitive data, could power a raft of identity theft, fraud and other crimes, said Teresa Murray, consumer watchdog director for the U.S. Public Interest Research Group.

For the record:

2:39 p.m. Aug. 15, 2024 A previous version of this article identified Teresa Murray as the consumer watchdog director for the U.S. Public Information Research Group. She works for the U.S. Public Interest Research Group.

“If this in fact is pretty much the whole dossier on all of us, it certainly is much more concerning” than prior breaches, Murray said in an interview. “And if people weren’t taking precautions in the past, which they should have been doing, this should be a five-alarm wake-up call for them.”

According to a class-action lawsuit filed in U.S. District Court in Fort Lauderdale, Fla., the hacking group USDoD claimed in April to have stolen personal records of 2.9 billion people from National Public Data, which offers personal information to employers, private investigators, staffing agencies and others doing background checks. The group offered in a forum for hackers to sell the data, which included records from the United States, Canada and the United Kingdom, for $3.5 million , a cybersecurity expert said in a post on X.

The lawsuit was reported by Bloomberg Law .

Last week, a purported member of USDoD identified only as Felice told the hacking forum that they were offering “ the full NPD database ,” according to a screenshot taken by BleepingComputer. The information consists of about 2.7 billion records, each of which includes a person’s full name, address, date of birth, Social Security number and phone number, along with alternate names and birth dates, Felice claimed.

Data of nearly all AT&T customers downloaded in security breach

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July 12, 2024

National Public Data didn’t respond to a request for comment, nor has it formally notified people about the alleged breach. It has, however, been telling people who contacted it via email that “we are aware of certain third-party claims about consumer data and are investigating these issues.”

In that email, the company also said that it had “purged the entire database, as a whole, of any and all entries, essentially opting everyone out.” As a result, it said, it has deleted any “non-public personal information” about people, although it added, “We may be required to retain certain records to comply with legal obligations.”

Several news outlets that focus on cybersecurity have looked at portions of the data Felice offered and said they appear to be real people’s actual information. If the leaked material is what it’s claimed to be, here are some of the risks posed and the steps you can take to protect yourself.

The threat of ID theft

The leak purports to provide much of the information that banks, insurance companies and service providers seek when creating accounts — and when granting a request to change the password on an existing account.

A few key pieces appeared to be missing from the hackers’ haul. One is email addresses, which many people use to log on to services. Another is driver’s license or passport photos, which some governmental agencies rely on to verify identities.

Still, Murray of PIRG said that bad actors could do “all kinds of things” with the leaked information, the most worrisome probably being to try to take over someone’s accounts — including those associated with their bank, investments, insurance policies and email. With your name, Social Security number, date of birth and mailing address, a fraudster could create fake accounts in your name or try to talk someone into resetting the password on one of your existing accounts.

“For somebody who’s really suave at it,” Murray said, “the possibilities are really endless.”

It’s also possible that criminals could use information from previous data breaches to add email addresses to the data from the reported National Public Data leak. Armed with all that, Murray said, “you can cause all kinds of chaos, commit all kinds of crimes, steal all kinds of money.”

Phishing attack hits L.A. County public health agency, jeopardizing 200,000-plus residents’ personal info

The personal information of more than 200,000 people in Los Angeles County was potentially exposed after a hacker used a phishing email to steal login credentials.

June 14, 2024

How to protect yourself

Data breaches have been so common over the years, some security experts say sensitive information about you is almost certainly available in the dark corners of the internet. And there are a lot of people capable of finding it; VPNRanks, a website that rates virtual private network services, estimates that 5 million people a day will access the dark web through the anonymizing TOR browser, although only a portion of them will be up to no good.

If you suspect that your Social Security number or other important identifying information about you has been leaked, experts say you should put a freeze on your credit files at the three major credit bureaus, Experian , Equifax and TransUnion . You can do so for free, and it will prevent criminals from taking out loans, signing up for credit cards and opening financial accounts under your name. The catch is that you’ll need to remember to lift the freeze temporarily if you are obtaining or applying for something that requires a credit check.

Technology and the Internet

Are you the victim of identity theft? Here’s what to do

If you’re a victim of identity thieves or a data hack, you need to act quickly. Here’s what to do to protect yourself.

Oct. 26, 2022

Placing a freeze can be done online or by phone, working with each credit bureau individually. PIRG cautions never to do so in response to an unsolicited email or text purporting to be from one of the credit agencies — such a message is probably the work of a scammer trying to dupe you into revealing sensitive personal information.

For more details, check out PIRG’s step-by-step guide to credit freezes .

You can also sign up for a service that monitors your accounts and the dark web to guard against identity theft, typically for a fee. If your data is exposed in a breach, the company whose network was breached will often provide one of these services for free for a year or more.

If you want to know whether you have something to worry about, multiple websites and service providers such as Google and Experian can scan the dark web for your information to see whether it’s out there. But those aren’t specific to the reported National Public Data breach. For that information, try a free tool from the cybersecurity company Pentester that offers to search for your information in the breached National Public Data files . Along with the search results, Pentester displays links to the sites where you can freeze your credit reports.

Atlas Privacy, a company that helps people remove their personal information from data brokers, also offers a way to check whether your info was breached in the National Public Data hack.

As important as these steps are to stop people from opening new accounts in your name, they aren’t much help protecting your existing accounts. Oddly enough, those accounts are especially vulnerable to identity thieves if you haven’t signed up for online access to them, Murray said — that’s because it’s easier for thieves to create a login and password while pretending to be you than it is for them to crack your existing login and password.

World & Nation

Trump campaign says its emails were hacked

Former President Trump’s campaign says it has been hacked and is blaming Iranian actors, saying they stole and distributed sensitive internal documents.

Aug. 10, 2024

Of course, having strong passwords that are different for every service and changed periodically helps. Password manager apps offer a simple way to create and keep track of passwords by storing them in the cloud, essentially requiring you to remember one master password instead of dozens of long and unpronounceable ones. These are available both for free (such as Apple’s iCloud Keychain) and for a fee .

Beyond that, experts say it’s extremely important to sign up for two-factor authentication. That adds another layer of security on top of your login and password. The second factor is usually something sent or linked to your phone, such as a text message; a more secure approach is to use an authenticator app, which will keep you secure even if your phone number is hijacked by scammers .

Yes, scammers can hijack your phone number through techniques called SIM swaps and port-out fraud , causing more identity-theft nightmares. To protect you on that front, AT&T allows you to create a passcode restricting access to your account; T-Mobile offers optional protection against your phone number being switched to a new device, and Verizon automatically blocks SIM swaps by shutting down both the new device and the existing one until the account holder weighs in with the existing device.

Your worst enemy may be you

As much or more than hacked data, scammers also rely on people to reveal sensitive information about themselves. One common tactic is to pose as your bank, employer, phone company or other service provider with whom you’ve done business and then try to hook you with a text or email message.

Banks, for example, routinely tell customers that they will not ask for their account information by phone. Nevertheless, scammers have coaxed victims into providing their account numbers, logins and passwords by posing as bank security officers trying to stop an unauthorized withdrawal or some other supposedly urgent threat.

People may even get an official-looking email purportedly from National Public Data, offering to help them deal with the reported leak, Murray said. “It’s not going to be NPD trying to help. It’s going to be some bad guy overseas” trying to con them out of sensitive information, she said.

It’s a good rule of thumb never to click on a link or call a phone number in an unsolicited text or email. If the message warns about fraud on your account and you don’t want to simply ignore it, look up the phone number for that company’s fraud department (it’s on the back of your debit and credit cards) and call for guidance.

“These bad guys, this is what they do for a living,” Murray said. They might send out tens of thousands of queries and get only one response, but that response could net them $10,000 from an unwitting victim. “Ten thousand dollars in one day for having one hit with one victim, that’s a pretty good return on investment,” she said. “That’s what motivates them.”

More to Read

Massive data breach that includes Social Security numbers may be even worse than suspected

Aug. 19, 2024

Editorial: A ransomware attack closed L.A. courts for two days. The public deserves a full accounting

Aug. 13, 2024

Column: Why hugely profitable corporations won’t spend enough to keep hackers from stealing your private info

July 17, 2024

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Jon Healey writes and edits stories for the Los Angeles Times’ Fast Break Desk, the team that dives into the biggest news of the moment. In his previous stints, he wrote and edited for the Utility Journalism team and The Times editorial board. He covered technology news for The Times from 2000 to mid-2005.

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• Best Homeowners Insurance

Best Homeowners Insurance Of August 2024

Updated: Aug 5, 2024, 7:38am

Our analysis of 14 home insurers finds that Westfield is the best homeowners insurance company. State Farm and USAA are also among our top picks. Our analysis included costs, complaints, and coverage options. Keep these factors in mind as you shop for home insurance. The best policies cover your house and the things you keep in it. Home insurance also provides liability coverage if you cause someone to get hurt or cause damage to someone’s property.

How We Chose the Best Homeowners Insurance Companies

We analyzed home insurance rates, complaints and other factors. Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate insurance companies, so all companies are measured equally. You can read more about our editorial guidelines and the methodology for the ratings below.

• 70 coverage details scored
• 33,200 rates analyzed
• 102 years combined insurance experience on the editorial team
• Compare Home Insurance Quotes
• Cheapest Home Insurance Companies
• How Much Is Home Insurance
• Home Insurance Discounts
• Home Insurance Calculator

Summary: Best Home Insurance Companies

Which home insurance companies offer extended replacement cost, which home insurance companies offer guaranteed replacement cost, which home insurance companies have a banned dog list, how to find the best homeowners insurance, expert round-up:, home insurance complaint comparison, methodology, other homeowners insurance companies we rated, best homeowners insurance frequently asked questions (faqs).

*USAA home insurance is available only to members of the military, veterans and their families.

Best for Price

Average cost for $350,000 of coverage

$1,344 yearly/$112 monthly

Online quotes

Westfield has the lowest average prices among the top-scoring companies in our analysis. We also like its expanded dwelling coverage, including extended replacement cost and guaranteed replacement cost coverage. Westfield’s Estatepak home insurance is designed for high-value homes, and Wespak Estate combines luxury home coverage with auto insurance.

• Low rates among the companies we evaluated.
• Low complaint level indicates overall customer satisfaction.
• Some Westfield home insurance policies include equipment breakdown coverage.

More: Westfield Home Insurance Review

Westfield is known for its personalized approach to home insurance, offering customizable coverage options tailored to individual needs. Their customer service and claims handling are typically reliable, providing peace of mind to policyholders.

 – David Perkins, founder of Assured Claim Service 

• Offers homeowners insurance in only 10 states.
• Customers may encounter a banned dog list.

Westfield has consistently had a low complaint ratio to state departments of insurance compared to the industry average over the past three years.

Westfield sells home insurance in these 10 states:

• Pennsylvania
• West Virginia

Great for Bundling Auto and Home

$1,298 yearly/$108 monthly

We found that State Farm has decent prices and the highest average discount for bundling home and auto insurance among the companies we evaluated. Dog owners will like that the company doesn’t have a banned dog list.

• Average 23% savings when you bundle home and auto insurance.
• Offers an option for extended replacement cost coverage that extends your insurance limit when rebuilding costs are more than your stated dwelling coverage amount.
• No banned dog list.

More: State Farm Home Insurance Review

State Farm is often recognized for its broad national presence and generally reliable customer service, making it a staple in the home insurance market. Their ability to offer extensive resources and a stable claims process makes them a dependable choice for many homeowners. We often encounter clients who appreciate State Farm’s straightforward approach to claims and their comprehensive coverage options.

– John Christ, founder of Prestizia Insurance

• Complaint levels are at the industry average but many top competitors have much lower levels.
• Doesn’t offer guaranteed replacement coverage, which increases dwelling coverage to replace your home after a problem covered by your policy, regardless of a house’s rebuilding costs.
• State Farm agents will be knowledgeable about the company’s products but won’t help you compare other insurers.

State Farm has been consistently near the industry average for home insurance complaints, though higher than top competitors.

State Farm offers home insurance in all 50 states and Washington, D.C.

Best for Military and Veterans

$1,270 yearly/$106 monthly

We found that USAA delivers low prices and quality service to military members, veterans and their families. Those who are eligible should definitely consider USAA insurance. We also like that customers can take advantage of a variety of discounts through the USAA perks program, including hotels, rental cars and cruises.

• Excellent home insurance rates.
• Low complaints indicate quality customer service.
• Offers extended replacement cost for dwellings.

More: USAA Home Insurance Review

USAA is a highly reputable insurer known for its excellent customer service and competitive rates. They offer a wide range of coverage options to meet the needs of homeowners, including comprehensive coverage for both the structure of the home and its contents. Overall, I highly recommend USAA to homeowners who are looking for a reliable and affordable insurance provider.

– Paige Robinson, owner of House Buyers

• Available only to active military personnel and veterans and their families.
• Doesn’t offer guaranteed replacement coverage, which covers costs to rebuild your home, regardless of amount, if it’s destroyed.

USAA has much better complaint levels than the average. This result can signify strong customer satisfaction.

USAA sells home insurance in all 50 states and Washington, D.C.

Great for High-Value Homes

$1,157 yearly/$96 monthly

We like Nationwide’s competitive rates and that it offers both extended and guaranteed replacement cost coverage. High-net-worth homeowners will probably like Nationwide’s Private Client insurance, which includes a cash-out option if your home is destroyed and you decide not to rebuild. That coverage also reimburses you for accidental breakage of items such as crystal and china, and equipment breakdown coverage for appliances and home systems.

• Low-cost average home insurance rates for varying levels of coverage—all well below the national averages.
• “Dwelling replacement cost plus” options provide extended coverage if your house is destroyed.

More: Nationwide Home Insurance Review

Nationwide offers comprehensive home insurance coverage with additional options for policyholders to enhance their protection. Their strong financial stability and large presence make them a reliable choice for homeowners seeking peace of mind.

– David Perkins, an insurance expert and founder of Assured Claim Service

• Not available in Alaska, Florida, Hawaii, Louisiana, Massachusetts, New Jersey and New Mexico.

Nationwide’s recent complaint level for home insurance is lower than in previous years.

Nationwide offers home insurance is available in 43 states and Washington, D.C. It is not available in Alaska, Florida, Hawaii, Louisiana, Massachusetts, New Jersey and New Mexico.

Best for High Liability Limits

$1,810 yearly/$151 monthly

We think homeowners will appreciate Chubb’s excellent customer service and extended replacement cost coverage. Owners of high-value homes will appreciate Chubb’s high liability coverage limits. The company also offers the option to receive a cash settlement if your house is destroyed and you don’t wish to rebuild. Top-notch service includes Chubb’s Wildfire Defense Service for clients in wildfire-prone areas. This includes wildfire preparation and firefighting service when fires threaten a home.

• High liability limits available up to $100 million.
• Expanded benefits, including GreenWise, which pays to replace damaged items with environmentally-friendly materials, low-impact processes and efficient heating and cooling technology.
• Chubb’s HomeScan program helps prevent damage by finding leaks, missing insulation and faulty electrical connections.

More: Chubb Home Insurance Review

Chubb is targeted toward the high-end market and offers some of the most comprehensive coverage available, which is a boon for clients with high-value properties that require more than just basic coverage. They handle claims with utmost professionalism and detail, ensuring that their affluent clientele receives the level of service they expect.

– Patti Yencho, owner and agent at Professional Insurance Advisors

• Home insurance rates are higher than many competitors but policies include superior coverage.

Chubb has consistently had extremely low levels of complaints about its home insurance. This reflects strong customer satisfaction.

Chubb offers home insurance policies in all 50 states and Washington, D.C.

Great for Coverage Perks

$1,256 yearly/$105 monthly

We found that Erie stands out from many competitors for its competitive rates, good customer service and superior dwelling coverage options. Erie is worthy of being a top contender if you live where it’s available. With both extended and guaranteed replacement cost options, you can make sure you have ample funds to rebuild your house.

• Low complaint level indicates good customer service.
• Erie’s Extended Water covers natural disaster floods, which aren’t typically covered by standard home insurance, and other water damage.
• Erie’s SecureHome policies include several perks such as coverage for misplacing and lost jewelry, watches, silverware, guns and more.

More: Erie Home Insurance Review

Erie Insurance is known for its exceptional customer service and competitive rates. They offer a range of coverage options and discounts, making them a popular choice among homeowners looking for affordable yet reliable insurance protection.

– David Perkins, founder of Assured Claim Service

• Available in only 12 states and Washington, D.C.
• Has a banned dogs list.

Erie has very low complaint levels about its home insurance, and much better than the industry average.

Erie sells home insurance in 12 states and Washington, D.C.:

• North Carolina

Great for Extended Coverage for Dwellings

American family.

$2,020 yearly/$168 monthly

We like American Family for its extended and replacement cost coverage, which allows you to exceed dwelling coverage limits if you need to rebuild your home. We also like its multiple types of home insurance discounts.

• Low complaint levels for home insurance.
• Offers a variety of discounts, such as a “renovated home” discount if you’ve updated your electrical, heating or plumbing systems.
• Doesn’t have a banned dog list.

More: American Family Home Insurance Review

American Family insurance offers customizable home insurance policies with additional options for policyholders to tailor their coverage to their specific needs. Their focus on customer satisfaction and community involvement sets them apart in the industry.

• Higher than average home insurance rates.
• Not available in many states.

American Family home insurance has had low complaint levels over the past three years.

American Family offers home insurance in 19 states:

• North Dakota
• South Dakota

Great for Discounts

Auto-owners.

$1,525 yearly/$127 monthly

We’re impressed by Auto-Owners many policy discounts, including price breaks for being claims-free, being mortgage-free, having an automatic generator back-up, having protective devices, paying in full and more.

• Competitive home insurance rates.
• Additional coverage types such as equipment breakdown and home cyber insurance.
• Provides both extended replacement cost and guaranteed replacement cost coverage.
• Level of home insurance complaints against Auto-Owners to state insurance departments is very low.

More: Auto-Owners Home Insurance Review

Auto-Owners often gets overlooked, which is a shame. Very strong customer satisfaction ratings. Their niche is well-maintained, not-too-unusual homes. If your house fits that profile, they’re absolutely worth a look.

– Samuel Green, CEO of Blue Insurance

• Has a banned dog list, which could restrict your coverage if you have a canine breed on the list.
• Only available in 26 states.

Auto-Owners’ home insurance consistently has lower complaints than the average—a good sign of customer satisfaction.

Auto-Owners is available in these 26 states:

• South Carolina

Extended replacement cost is a feature that typically provides a certain percentage of money above your dwelling coverage amount if your house costs more to replace than the dwelling limit provides. This is valuable coverage in cases where local construction costs have spiked and made your dwelling coverage insufficient.

Guaranteed replacement cost coverage is a step above extended replacement cost. It guarantees that the insurer will pay any amount necessary to rebuild your house after a disaster. It is harder to find, but some of the best home insurance companies offer it.

Some insurers have official lists of banned dog breeds . If you own one of these breeds the dog may be excluded from your liability insurance or you could be denied coverage altogether.

We suggest taking these steps to find the best home insurance.

1. Determine How Much Coverage You Need

Review each basic coverage type and adjust the limits to fit your specific needs. Here are the main coverage types to consider.

2. Compare Home Insurance Quotes

It’s smart to compare home insurance quotes from multiple insurance companies. Insurers’ rates can vary considerably for the same coverage, so it’s good to compare quotes from at least three companies.

3. Ask About Home Insurance Discounts

Insurance companies offer many home insurance discounts that can reduce your policy costs. Here are common ones.

What’s the best home insurance isn’t the same for everyone. Here’s how to find the best home insurance for you.

EXPERT TIPS

Tips for Finding the Best Home Insurance

George Hosfield

Advisory Board Member

Les Masterson

Insurance Editor

Ashlee Valentine

Insurance Managing Editor

Michelle Megna

Insurance Lead Editor

Examine the Roof Coverage

Roof claims are one of the most common (and expensive) claim types and the terms of roof coverage can vary significantly. Some policies provide coverage for the full replacement cost of the roof. Others only provide the current “actual cash value” which may be a fraction of the total cost. Some policies have separate, higher deductibles for roof claims. When comparing policies, be sure to understand these nuances.

Get the Right Dwelling Coverage Amount

Your home insurance company or agent should be able to provide an estimate of how much it would cost to rebuild your house. This should be your dwelling coverage amount. One common mistake I’ve seen is that people confuse this amount with the real estate market value, but it’s not the same. And don’t include land value.

Ask About a Bundling Discount

Our research finds that home insurance discounts can save you hundreds on your policy. One of the best discounts is bundling home and auto policies. We found that State Farm beats competitors with an average 23% multi-policy discount. Make sure to ask about how much you can save by bundling.

Look for Insurers That Specialize in High-Value Homes

We suggest owners of high-value homes focus on insurers that specialize in high-value homes such as Chubb. They can provide high levels of liability coverage and have special coverage options that address the needs of these homeowners.

Get Multiple Quotes So You Know What’s a Good Deal

When shopping for home insurance, I recommend making sure you get quotes for the same coverage from at least three insurers. That will allow you to accurately compare each company.

Nearly all of our top picks for the best home insurance companies have complaint levels that are below the industry average.

Ask an expert

We Answer Your Questions

Penny Gusner

Insurance Senior Writer

Is replacement cost the same as real estate value?

Kathryn P., Danbury, Connecticut

A home’s replacement cost is not the same as its real estate value. Replacement cost is the amount you would need to rebuild your home using current building costs. Real estate value is a property’s value if you were to sell it and includes land value. A home’s replacement cost is typically less than its real estate value. I suggest focusing on replacement cost when buying home insurance so you don’t buy more coverage than you need.

Does home insurance cover flood damage?

-Michael I., Brentwood, Tennessee

No, standard homeowners insurance doesn’t cover flood damage. You instead typically need to buy a separate flood insurance policy either through the National Flood Insurance Program or a private insurer that sells flood coverage. NFIP policies are capped at $250,000 dwelling coverage but I’ve found that you may be able to find higher levels with a private insurance company.

When should you not file a home insurance claim?

-Ron T., St. Louis, Missouri

Filing a home insurance claim can increase your rates at the next renewal time, so you want to make sure you won’t pay more to fix your home or replace your items in the long run. For instance, if you have a $1,000 deductible and you’re reporting a loss of, say, less than $1,500, it likely wouldn’t be wise to file a claim, since you’ll likely pay more over time because of the possible rate increase.

How do you figure out how much liability insurance you need?

-Don D., Phoenix, Arizona

When choosing a liability insurance amount, think about your assets and savings, which could be at risk if you’re sued. A policy’s liability coverage generally only goes up to $500,000. If you need more coverage, you can buy umbrella insurance, which will offer liability coverage of $1 million and up.

Besides a home insurance company’s costs, what else is important when deciding on an insurer?

-Joseph M., Martinsville, Virginia

An insurance company’s offerings, financial stability and customer satisfaction may all be factors when choosing an insurer. For instance, extended replacement and guaranteed replacement coverage are options not offered by all insurers. These coverage upgrades provide higher dwelling coverage if your home is damaged or destroyed and inflation and/or higher building costs exceed your policy’s coverage limit. If that extra coverage is important to you, narrow your options to companies that offer that coverage.

To find the best home insurance companies we analyzed costs around the country, policy information and complaints against insurers. We scored companies based on these factors:

• Home insurance rates (50% of score): Based on average rates for each insurance company for homes with dwelling coverage of $200,000, $350,000, $500,000 and $750,000. Source: Quadrant Information Services .
• Complaints (20% of score): Based on complaints about home insurance that were upheld by state insurance departments. Source: National Association of Insurance Commissioners.
• Availability of extended and/or guaranteed replacement cost coverage (20% of score): Extra dwelling coverage is valuable in the event of large disasters, when construction materials and labor costs tend to spike. We gave points to companies that offer either extended or guaranteed replacement cost coverage. Source: Forbes Advisor research.
• Banned dog lists (10% of score): Banned dog breed lists can make homeowners ineligible for coverage. (A company’s banned dog list might not be applicable in all states.) While any homeowners insurance company could potentially ban any dog with a biting history, not all put a ban on specific breeds. Source: Forbes Advisor research.

Read more: How Forbes Advisor rates home insurance companies

Here are other companies we analyzed.

Looking for Homeowners Insurance?

Who has the cheapest home insurance?

Based on our analysis, the cheapest home insurance companies are Progressive, Nationwide, Erie, USAA and State Farm.

Those are good starting points, but the cheapest home insurance for you will vary depending on your location and the type of house you’re insuring. Shop around for a few home insurance quotes. And if you’re also getting car insurance quotes , ask about a discount for bundling auto and home insurance with the same company.

What does homeowners insurance cover?

Homeowners insurance covers your house, other structures on your property like a detached garage, personal property like furniture and clothing, liability insurance, additional living expenses and medical payments coverage.

HO-3 is the most common type of homeowners insurance policy and it covers your house for any problems except those specifically excluded in the policy. It additionally covers personal property for specific problems named in the policy, such as fire, theft and smoke damage.

How do I file a homeowners insurance claim?

Contact the home insurance company or your insurance agent to file a home insurance claim over the phone, through the company’s website, chat, email or app, depending on the company. You want to document the loss by providing information about the cause, when it happened and a list of what was lost.

If your home was damaged, you should try to prevent more damage, such as boarding up a broken window. We wouldn’t suggest fixing the problem before contacting your insurance company. The insurer may want to send an adjuster to observe the damage. You should also keep damaged items so the insurer can document. Once the insurance company is done with its investigation, the insurer will offer a claims payout.

Next Up In Homeowners Insurance

• Cheapest Homeowners Insurance
• Homeowners Insurance Discounts
• How Much Is Homeowners Insurance?
• Homeowners Insurance for Veterans
• Best Home and Auto Insurance Bundle
• Homeowners Insurance Tips

Get Forbes Advisor’s ratings of the best insurance companies and helpful information on how to find the best travel, auto, home, health, life, pet, and small business coverage for your needs.

Les Masterson is a deputy editor and insurance analyst at Forbes Advisor. He has been a journalist, reporter, editor and content creator for more than 25 years. He has covered insurance for a decade, including auto, home, life and health. Before covering insurance, Les was a news editor and reporter for Patch and Community Newspaper Company and also covered health care, mortgages, credit cards and personal loans for multiple websites.

George Hosfield is senior director and general manager of home insurance solutions at LexisNexis Risk Solutions. In this role, he manages all aspects of the personal lines property business, including overall strategy, profitable growth, new product development and partnerships. He is responsible for several industry-leading data solutions, including LexisNexis® Rooftop and LexisNexis® Current Carrier Property®.   George has been with LexisNexis for more than 20 years, working in a variety of operational and strategic roles in both the LexisNexis Legal & Professional and LexisNexis Risk Solutions divisions.

You're reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Warren Buffett Is Buying Shares of This Company. Should You Do the Same?

• Berkshire Hathaway sold a lot of stocks in the first half of 2024.
• But it significantly increased its stake in the Zurich-based insurer Chubb.
• Chubb still looks like a cheap evergreen investment for a volatile market.
• Motley Fool Issues Rare “All In” Buy Alert

The Oracle of Omaha is bullish on this insurance giant.

Warren Buffett's Berkshire Hathaway ( BRK.A 0.87% ) ( BRK.B 0.96% ) owns one of the world's most closely watched investment portfolios. That's why it was alarming when it sold its shares of several blue chip stalwarts -- including Apple , Bank of America , Paramount , and HP -- throughout the first half of 2024.

Buffett famously told investors to "be fearful when others are greedy and be greedy only when others are fearful," and his recent moves suggest that investors are getting too greedy after the S&P 500 index repeatedly set new highs over the past year.

Image source: Getty Images.

But amid all that selling, Berkshire increased its stake in the American-Swiss insurance giant Chubb Limited ( CB 0.23% ) . It initially purchased 8.1 million shares of Chubb in the third quarter of 2023, increased its position by 12 million shares in the fourth quarter, and bought another 5.8 million shares in the first quarter of 2024.

That represents a 6.4% stake in Chubb, and those shares now account for 2.3% of Berkshire's entire portfolio. Should investors follow Buffett's lead and invest in this leading insurer?

How fast is Chubb Limited growing?

Chubb is the world's largest publicly traded provider of property, supplemental health, and casualty insurance. It's based in Zurich, Switzerland, does business in 54 countries and territories, and employs about 40,000 people worldwide.

The current company was created after ACE Limited acquired the original Chubb Corporation and inherited its brand in 2016. It subsequently acquired additional companies like Healthy Paws and Catalyst Aviation to expand its portfolio. From 2016 to 2023, it grew its revenue at a compound annual growth rate (CAGR) of 7% as its earnings per share (EPS) rose at a CAGR of 14%.

Chubb provides a diverse range of insurance products, so it's generally simpler to gauge its long-term growth through its consolidated net premiums and its core operating income. It notably experienced a slowdown during the onset of the COVID-19 pandemic in 2020, but its business recovered quickly over the following three years.

Data source: Chubb Limited.

In the first half of 2024, Chubb's consolidated net premiums rose 12.9% year over year as its core operating income increased 15.7%. It attributed that expansion to its robust growth in property and casualty (P&C) underwriting, life insurance, and investment income.

Analysts expect Chubb's revenue and core operating income per share to both rise about 9% for the full year. Based on those expectations, Chubb still looks dirt cheap at 12 times forward earnings. It also pays a forward dividend yield of 1.35%.

Should you follow Warren Buffett's lead?

It's easy to see why Warren Buffett likes Chubb. It's well diversified, has a wide moat, and its low multiple should also limit its downside potential. Top insurance companies are also usually evergreen stocks which are resistant to economic downturns.

Furthermore, Berkshire Hathaway already directly owns insurance companies like GEICO, Gen Re, and Alleghany. Its own insurance underwriting and investment businesses generated 40% of its total operating earnings last year. Therefore, it makes perfect sense for Berkshire to invest in a resilient sector it knows well as the more macro-sensitive sectors face unpredictable headwinds.

Chubb isn't an exciting investment, but its stock has steadily risen more than 70% over the past five years as it's repurchased more than 10% of its shares. So if you're worried about elevated interest rates, geopolitical conflicts, or other macro headwinds crushing your high-growth stocks this year, it might be a smart idea to buy a few shares of Chubb.

Bank of America is an advertising partner of The Ascent, a Motley Fool company. Leo Sun has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and HP. The Motley Fool has a disclosure policy .

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Ping An Leads Multi-Party Effort to Release Report on Climate Change Adaptation and Disaster Risk Management

(Hong Kong, Shanghai, Aug 15, 2024)  Ping An Insurance (Group) Company of China, Ltd. (hereafter “Ping An”, the “Company” or the “Group”, HKEX: 2318 / 82318; SSE: 601318) has published a report, “Climate Change Adaptation and Disaster Risk Management: Current Practices and Future Perspectives for the Insurance Industry” (hereafter “the report”), in a joint effort with Southern University of Science and Technology, Tsinghua University, Risk Lighthouse International Pt Ltd, and Ernst & Young (China) Enterprise Consulting Co. 

Against the backdrop of long-term climate change, the insurance industry is confronted with substantial challenges arising from the exacerbation of disaster risks. The frequent incidence of catastrophic events implies that insurance companies need to bear greater compensation liabilities and the associated payout pressures. The report outlines the impact and challenges of climate change on the insurance industry and describes how the Chinese and international insurance industries are responding to climate change. It also discusses the innovative measures to improve climate risk resilience and put forwards policy recommendations for climate change response. Furthermore, the report features Ping An’s sustainable development practices and experiences in responding to climate change in recent years, to provide a multi-perspective analysis of how the insurance industry can turn climate change challenges into development opportunities.

Richard Sheng, Ping An’s Board Secretary and Brand Director, said, “In recent years, extreme weather events have become more frequent around the world, which has endangered the safety of people's lives and their properties and led to massive social and economic losses. We are hoping that this report can help the industry to better respond to the challenges and opportunities brought by climate risks and refine the insurance system. Together, we will write a new chapter of green development, give full play to the functions of insurance as an economic shock absorber and a social stabilizer, and lead China's insurance industry to comprehensively respond to climate change. In the future, Ping An will develop technology finance, green finance, inclusive finance, pension finance and digital finance, to provide high-quality financial services for economic and social development and promote the concept of sustainable development.”

In recent years, climate change risks have had an increasing impact on human society and economic activities and have become a global challenge. The insurance industry, as a stabilizer of the social economy, plays an important role in mitigating and adapting to climate change. Ping An actively promotes the concept of sustainable development through its business activities. As of the end of 2023, Ping An’s green insurance premium income amounted to RMB37.3 billion, representing nearly 49% year-on-year (YoY) growth. Its green loan balance amounted to RMB146.3 billion, representing a YoY growth of 25.7%. Its green investment of insurance funds amounted to RMB128.6 billion, up 19% YoY, and 100% of investments of insurance funds were covered by requirements for integrating ESG into investment management.

Going forward, Ping An will strive to exert its influence in the industry in the field of sustainable development. By actively developing relevant insurance products, such as green insurance and climate risk insurance, Ping An will work with the government, insurance industry, public sector, and scientific research institutions to improve the society’s ability to respond to the risks of climate change and natural disasters. Ping An will support the implementation of China's climate change strategy and contribute to the high quality sustainable economic and social development.

To access the full report, please click here  (only Chinese available).

To access the English summary of the original report, please click here .

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Understanding Science

How science REALLY works...

• Much scientific research is funded by government grants, private companies, and non-profit organizations.
• Though funding sources may occasionally introduce bias to scientific research, science has safeguards in place to detect such biases.

Who pays for science?

Today, we all do. Most scientific research is funded by government grants (e.g., from the National Science Foundation, the National Institutes of Health, etc.), companies doing research and development, and non-profit foundations (e.g., the Breast Cancer Research Foundation, the David and Lucile Packard Foundation, etc.). As a society, we reap the rewards from this ​​ science  in the form of technological innovations and advanced knowledge, but we also help pay for it. You indirectly support science everyday through taxes you pay, products and services you purchase from companies, and donations you make to charities. Something as simple as buying a bottle of aspirin may help foot the bill for multiple sclerosis research.

Funding for science has changed with the times. Historically, science has been largely supported through private patronage (the backing of a prominent person or family), church sponsorship, or simply paying for the research yourself. Galileo’s work in the 16th and 17th centuries, for example, was supported mainly by wealthy individuals, including the Pope. Darwin’s  Beagle  voyage in the 19th century was, on the other hand, funded by the British government — the vessel was testing clocks and drawing maps for the navy — and his family’s private assets financed the rest of his scientific work. Today, researchers are likely to be funded by a mix of grants from various government ​​ agencies , institutions, and foundations. For example, a 2007 study of the movement of carbon in the ocean was funded by the National Science Foundation, the U.S. Department of Energy, the Australian Cooperative Research Centre, and the Australian Antarctic Division. 1  Other research is funded by private companies — such as the pharmaceutical company that financed a recent study comparing different drugs administered after heart failure. 2  Such corporate sponsorship is widespread in some fields. Almost 75% of U.S. ​​ clinical trials  in medicine are paid for by private companies. 3  And, of course, some researchers today still fund small-scale studies out of their own pockets. Most of us can’t afford to do cyclotron research as a private hobby, but birdwatchers, scuba divers, rockhounds, and others can do real research on a limited budget.

An imperfect world

In a perfect world, money wouldn’t matter — all scientific studies (regardless of funding source) would be completely ​​ objective . But of course, in the real world, funding may introduce biases — for example, when the backer has a stake in the study’s outcome. A pharmaceutical company paying for a study of a new depression medication, for example, might influence the study’s design or interpretation in ways that subtly favor the drug that they’d like to market. There is ​​ evidence  that some biases like this do occur. Drug research sponsored by the pharmaceutical industry is more likely to end up favoring the drug under consideration than studies sponsored by government grants or charitable organizations. 4  Similarly, nutrition research sponsored by the food industry is more likely to end up favoring the food under consideration than independently funded research. 5

Take a sidetrip

Find out more about  the tobacco industry’s manipulation of scientific research .

So what should we make of all this? Should we ignore any research funded by companies or special interest groups? Certainly not. These groups provide invaluable funding for scientific research. Furthermore, science has many safeguards in place to catch instances of bias that affect research outcomes. Ultimately, misleading results will be corrected as science proceeds; however, this process takes time. Meanwhile, it pays to scrutinize studies funded by industry or special interest groups with extra care. So don’t, for example, brush off a study of cell phone safety just because it was funded by a cell phone manufacturer — but do ask some careful questions about the research before jumping on the bandwagon. Are the results consistent with other independently funded studies? Does the study seem fairly designed? What do other scientists have to say about this research? A little scrutiny can go a long way towards identifying bias associated with funding source.

1 Buesseler, K.O., C.H. Lamborg, P.W. Boyd, P.J. Lam, T.W. Trull, R.R. Bidigare, J.K.B. Bishop, K.L. Casciotti, F. Dehairs, M. Elskens, M. Honda, D.M. Karl, D.A. Siegel, M.W. Silver, D.K. Steinberg, J. Valdes, B. Van Mooy, and S. Wilson. 2007. Revisiting carbon flux through the ocean's twilight zone.  Science  316:567. 2 Mebazaa, A., M.S. Nieminen, M. Packer, A. Cohen-Solal, F.X. Kleber, S.J. Pocock, R. Thakkar, R.J. Padley, P. Poder, and M. Kivikko. 2007. Levosimendan vs dobutamine for patients with acute decompensated heart failure: The SURVIVE randomized trial.  Journal of the American Medical Association  297:1883-1891. 3 Bodenheimer, T. 2000. Uneasy alliance: Clinical investigators and the pharmaceutical industry.  New England Journal of Medicine  342:1539-1544. 4 Als-nielson, B., W. Chen, C. Gluud, and L.L. Kjaergard. 2003. Association of funding and conclusions in randomized drug trails: A reflection of treatment effect or adverse events?  Journal of the American Medical Association  290:921-928. 5 This research focused on studies of soft drinks, juice, and milk. Lesser, L.I., C.B. Ebbeling, M. Goozner, D. Wypij, and D.S. Ludwig. 2007. Relationship between funding source and conclusion among nutrition-related scientific articles.  Public Library of Science Medicine  4:41-46.

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Analysts Offer Insights on Financial Companies: Futu Holdings (FUTU), Fidelis Insurance Holdings Ltd. (FIHL) and ASX Limited (OtherASXFF)

Analysts have been eager to weigh in on the Financial sector with new ratings on Futu Holdings ( FUTU – Research Report ), Fidelis Insurance Holdings Ltd. ( FIHL – Research Report ) and ASX Limited ( ASXFF – Research Report ).

Futu Holdings (FUTU)

J.P. Morgan analyst Katherine Lei maintained a Buy rating on Futu Holdings on August 14 and set a price target of $90.00 . The company’s shares closed last Friday at $61.51.

According to TipRanks.com , Lei is a 3-star analyst with an average return of 1.9% and a 52.0% success rate. Lei covers the Financial sector, focusing on stocks such as Industrial and Commercial Bank of China, Agricultural Bank of China, and Bank of Communications Co.

Currently, the analyst consensus on Futu Holdings is a Strong Buy with an average price target of $83.20, a 33.8% upside from current levels. In a report issued on August 13, Bank of America Securities also reiterated a Buy rating on the stock with a $77.60 price target.

See the top stocks recommended by analysts >>

Fidelis Insurance Holdings Ltd. (FIHL)

In a report issued on August 15, Pablo Singzon from J.P. Morgan maintained a Hold rating on Fidelis Insurance Holdings Ltd., with a price target of $19.50 . The company’s shares closed last Friday at $18.60.

According to TipRanks.com , Singzon is a 3-star analyst with an average return of 6.5% and a 55.2% success rate. Singzon covers the Financial sector, focusing on stocks such as Baldwin Insurance Group, Kinsale Capital Group, and GooseHead Insurance.

Fidelis Insurance Holdings Ltd. has an analyst consensus of Moderate Buy, with a price target consensus of $20.90, representing a 16.4% upside. In a report issued on August 15, Evercore ISI also assigned a Hold rating to the stock with a $19.00 price target.

ASX Limited (ASXFF)

J.P. Morgan analyst Siddharth Parameswaran maintained a Hold rating on ASX Limited on August 16 and set a price target of A$60.00 . The company’s shares closed last Tuesday at $40.15.

According to TipRanks.com , Parameswaran is a 4-star analyst with an average return of 6.6% and a 67.0% success rate. Parameswaran covers the Financial sector, focusing on stocks such as Insurance Australia Group Limited, QBE Insurance Group Limited, and Insignia Financial Ltd.

ASX Limited has an analyst consensus of Moderate Sell, with a price target consensus of $40.06, which is a -0.2% downside from current levels. In a report released today, Morgan Stanley also maintained a Hold rating on the stock with a A$58.00 price target.

Read More on FUTU:

• Is FUTU a Buy, Before Earnings?
• Futu Holdings price target lowered to $77.60 from $81.20 at BofA
• Futu Holdings put volume heavy and directionally bearish
• Futu to Report Second Quarter 2024 Financial Results on August 20, 2024
• Futu Holdings call volume above normal and directionally bullish

Australian Stock Exchange News MORE

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MarketWatch Guides is a reviews and recommendations team, independent of the MarketWatch newsroom. We might earn a commission from links in this content.  Learn More

David Straughan is a content manager and veteran journalist who specializes in the automotive and finance industries. He combines rigorous data analysis, exhaustive research and conversations with high-level experts to reveal the human stories behind the numbers.

Taryn Azimov is a Raleigh-based editor specializing in the automotive industry. Her diverse editorial background spans five years. In her free time, she enjoys journaling, exploring coffee shops and spending time with her children.

Key Takeaways:

• The difference between the cheapest provider for you and a more expensive one could be hundreds of dollars per year.
• Car insurance quote marketplaces are the fastest way to get multiple quotes to compare.
• In addition to rates, you’ll also want to compare car insurance companies by coverage, industry reputation and customer experience. We’ve made that easy for you.

Comparing car insurance quotes can be an effective way to save money on auto coverage. It’s often difficult to find rate estimates that apply to your driver profile without sifting through endless tables and text or providing your personal information.

To get actual quotes to compare — and eventually purchase car insurance — you’ll have to hear from the providers themselves. After years of working with more than a hundred insurers and hearing from thousands of auto insurance customers, we at the MarketWatch Guides team have found that the most comprehensive way to compare quotes is to use a comparison marketplace tool to get personalized quotes in just a few minutes. 

Compare Car Insurance Rates

Why Trust Us? How We Learned What We Know

We at the MarketWatch Guides team have spent more than 800 hours researching auto insurance to bring you information you can rely on to help you make the best possible decision about your policy and provider. Here’s where our information comes from:

• Research into 130 of the country’s top auto insurance providers
• 9.1 million car insurance rate estimates from Quadrant Information Services
• 8,500 data points about the coverage, availability, industry reputation and customer sentiments of each company in our study
• Surveys totaling more than 8,500 car insurance policyholders

Why Trust Us? How We Put Our Advice To the Test

To verify our advice and get a first-person perspective of the auto insurance shopping process, we also sent one of our team members, Connor Bolton, into the field. In search of a new auto policy, Bolton compared our suggested process to other ways of getting car insurance quotes.

There are a few terms you’ll see used in this and other auto insurance content that may be a little confusing. Here’s what they are and what they mean.

• Premium: The cost of your auto insurance policy.
• Quote: An offer from an auto insurance provider that includes a premium price.
• Rate: A more general term used to refer to the cost of a car insurance policy.
• Estimate: An approximate valuation of what rates are likely to be based on factors considered.

Estimates can be very helpful, which is why we’ve included many of them for a wide variety of driver profiles. But to get an accurate rate for your premium, you’ll have to get actual car insurance quotes. To do that, use any of the ZIP tools on our page when you’re ready.

Comparing Car Insurance Quotes: What Matters Most

The cost you see on car insurance quotes is likely your number one point of comparison. But sometimes paying a little more than the cheapest quote can be worth it.

When shopping for car insurance, we recommend that you consider these four things: cost, coverage, industry reputation and customer experience. However, most carriers have similar products so coverage is typically not the only reason to choose one carrier over another.

Major factors that drivers should consider when comparing car insurance quotes are the types of coverage — including liability, collision, comprehensive and uninsured motorist coverage, policy limits, deductibles, an insurer’s financial strength and the quality and reputation of its claims service. Jeungbo Shim , Associate Professor in the Risk Management and Insurance Program at the University of Colorado at Denver

We also surveyed 2,000 insurance customers on what they look for and nearly half said cost and discounts:

Car Insurance Cost (and the Factors That Drive It)

The table below shows the national average minimum- and full-coverage rate estimates from top national providers based on our standardized driver profile.

Note that we use the term “estimates” for this and other rate tables on this page. The reason you’re seeing “estimates” rather than “quotes” is that insurers use a long list of factors about you and your vehicle to calculate what you pay. The good news is that we can give you a better idea of what your premiums are likely to be, based on some of the key factors that apply to you. 

While there are many factors that go into rate calculations, there are four that have the largest impact on your premiums, according to our research. In the list below, we listed the main factors that influence your rates, stacked in order of importance:

• Age: Younger drivers typically pay much more than middle-aged drivers for coverage. Teen drivers usually pay the highest rates.
• Credit score: In states where car insurance companies can use your credit score as a factor in your rates, it can have a substantial impact on your premiums. People with higher credit scores typically pay much lower rates than those with lower scores.
• Location: Rates vary significantly between states based on differences in regulations and local risk factors. Even within states, there can be large differences between ZIP codes in average premiums.
• Driving history: A clean driving record will get you the lowest rates on car insurance. Any “dings” on your record such as an accident, speeding tickets or a DUI.
• Other factors: Information such as your gender of record, marital status and the car you drive also impact your rates — but usually to a lesser degree than the factors listed above.

MarketWatch Guides Tip: About Our Rates

In the following sections, we use a series of tables to display average rate estimates based on different combinations of factors. Outside of the specific variables explored in the tables, all other factors fit our standard driver profile which includes the following details:

• 35 years old
• Male and female drivers
• Clean driving record
• Good credit score

Minimum-coverage rates at the state level are based on minimum coverage requirements for that state. At the national level, minimum-coverage rates are based on a combined average of state rates.

Full-coverage rates are based on a standard policy that includes the following:

• $50,000 bodily injury (BI) liability coverage per person per accident
• $100,000 BI liability coverage total per accident
• $50,000 property damage (PD) liability coverage per accident
• $500 comprehensive and collision coverage deductibles

Compare Car Insurance by Credit Score

In most states, a poor credit score could increase your premium by as much as 103% for standard coverage and 140% for minimum coverage. This is partly due to the fact that insurance companies associate poor credit with the risk of not maintaining required payments — similar to how lenders use scores. Lower credit scores are also correlated with a higher rate of claims filing .

Chris Johnson, Senior Producer at All About Insurance, said car insurance shoppers are often surprised by just how much of a difference their credit score can make. 

Almost daily I run across insureds who have no idea how much their credit score factors into their insurance premiums. I see swings as much as $700 annually between poor credit and excellent credit. In addition, many carriers will deny coverage to insureds who do not have an acceptable credit score for their programs. Generally, auto insurers correlate higher credit scores with more stability, less likelihood for initiating claims as well as less chance for a policy canceling due to non payment.

California, Hawaii, Maryland, Massachusetts, Michigan, Oregon and Utah have outlawed the practice of using credit scores as a determining factor in car insurance rates. In all 43 other states, it can play a significant role.

In the table below, you can compare car insurance estimates for good credit and poor credit car owners of different ages.

Car Insurance Rates by Credit Score

Compare car insurance by state.

Auto insurance premiums vary quite a bit between states for two main reasons: differences in minimum insurance requirements and variations in local risk factors. For how and why rates change from one state to the next, we created guides to auto insurance for every state, which you’ll find linked after the map below. 

How To Read Car Insurance Requirements

You’ll often find an insurance policy summarized by a series of numbers separated by slashes. Each number represents the limit for a specific type of coverage on a policy. 

For example, you may see a policy summarized as 50/100/50. In most cases, this breaks down like this:

• $50,000 in BI liability coverage per person
• $100,000 in BI liability coverage per accident
• $50,0000 in PD coverage

You can also use this system to list state car insurance requirements. To refresh your memory, these are the abbreviations you’ll see in the table below and what they mean:

• BI: Bodily injury liability
• PD: Property damage liability
• UM/UIM: Uninsured/underinsured motorist
• PIP: Personal injury protection

Compare Car Insurance by Driving Record

Any marks on your driving record can raise your premiums because insurance providers will view these customers as a higher-risk. The good news is that, with time, these marks fall off of your record and your rates can go back down again — yet another reason to comparison shop car insurance quotes every other year or so.

See average rates and estimates from insurance providers for different driving record infractions in the table below. You can use the tabs to navigate.

MarketWatch Guides Tip: What Is an SR-22 Form?

An SR-22 form is a filing sometimes referred to as a “financial responsibility form” that most state motor vehicle departments require for high-risk insurance policies. You may be required to have an SR-22 form if you’ve had your license suspended or revoked, been caught driving without insurance or had serious or multiple infractions on your driving record, such as a DUI.  In most cases, the need for an SR-22 expires after three years, except in the case of a DUI when it may take as many as five years for the requirement to expire. When you have satisfied the need for an SR-22, your insurance provider will file an SR-26 form with your state government to officially certify cancellation of the SR-22 requirement.

Compare Car Insurance Companies

There’s more to comparing car insurance than just rates. The ideal auto insurance provider is a company that offers the coverage you need with a strong reputation within the industry and with customers. In the following sections, we’ll compare each company by individual categories.

Compare Car Insurance Companies: Coverage

In our most recent auto insurance survey, coverage offered was the second-most important consideration for car insurance buyers, with 99% indicating it was important to them. Options like roadside assistance, trip interruption, rental coverage and others can help take care of some of the other costs associated with an insurance loss that aren’t covered under basic policies.

Types of Basic Coverage

You’ll find the same basic types of coverage that make up minimum liability and full coverage policies at every provider. What varies between insurers is the add-on coverage options they offer.

• Bodily injury (BI) liability : Covers medical care and related expenses for other parties injured in a collision you’re found at fault for.
• Property damage (PD) liability: Covers repairs and replacements for other parties damaged in an accident for which you are found at fault.
• Uninsured/Underinsured motorist (UM/UIM): Covers medical and property damages caused by a driver who lacks sufficient coverage.
• Personal injury protection (PIP): Covers you and your party’s medical expenses and lost wages following an accident, no matter who is at fault.
• Collision : Covers your vehicle following an accident, regardless of who is at fault.
• Comprehensive : Covers your vehicle from damage sources other than a collision, including weather, theft, fire, vandalism and more.

Minimum and Full Coverage: What You Should Know

Minimum coverage policies are those that only meet the state minimum auto insurance requirements for liability coverage. They always include BI and PD coverage. In some states, they include UM/UIM or PIP coverage and sometimes both.

Minimum coverage insurance is the cheapest coverage you can buy. These policies keep you in compliance with state laws and cover damages to other parties in an accident you’re found at fault for, but for the most part that’s it. As a result, they open you up to serious financial risk.

Full coverage policies, on the other hand, cover much of that risk. These policies include comprehensive and collision coverage alongside liability and other required insurance. While they cost more, they protect your assets and finances in addition to others.

How To Choose Between Minimum and Full Coverage

The vast majority of insured drivers — around 76%, according to an Insurance Information Institute (III) analysis of National Association of Insurance Commissioners (NAIC) data — have either comprehensive or collision coverage, or both. And while we and other insurance experts recommend full coverage for most drivers, it may not be the right choice for you. Here are some things to consider.

Minimum coverage might be right for you if:

• You simply need the cheapest car insurance you can find
• The value of your vehicle doesn’t justify the extra expense of full coverage
• You drive less than 500 miles per month
• You mostly use other ways of getting around, such as public transportation or a bicycle
• You could get by without a car for an extended period of time

You should strongly consider full coverage if:

• Not having access to a vehicle would negatively impact your life
• You can’t afford to replace your vehicle if it is totaled
• You live in an area with elevated risk factors such as frequent severe weather, high theft rates or wildfires
• You don’t have the cash to pay for repairs out of pocket
• You simply want the peace of mind that comes from reducing your financial risk

Additional Coverage Options To Consider

Car insurance providers also offer add-on policies such as rental car reimbursement to help you cover some of the adjacent costs that come with an insurance loss. The selection of these coverages varies between providers, making them a useful point of comparison worth considering.

The table below shows which providers typically rank high across the U.S. in the coverage category.

MarketWatch Guides Tip: Choosing Your Coverage

In many cases, you may not have a say in whether or not you buy full coverage. Many lenders require you to have full coverage on your vehicle if they are financing it. This also tends to be true when you lease a vehicle. Make sure you get the required coverage for your car to fulfill your end of your auto loan or lease agreement.

Compare Car Insurance Companies: Industry Reputation

Just like in any industry, some insurers are more reputable within the auto insurance industry than others. If the provider you choose has a reputation for handling claims poorly, isn’t in good financial standing or hasn’t performed well in industry evaluations, the money you save on a policy may not matter. 

Paying for your policy is your end of the agreement. Handling claims in a satisfactory manner is theirs. A company’s reputation within the industry can tell you a lot about whether or not you can trust your insurer to be there when you need them.

The claims experience can vary depending on the situation and claims adjusters involved. Our team members have experience filing claims with different companies. Here’s what Victoria Addison said about filing a claim with Progressive:

I didn’t really have any issues with the process and felt I received quality service. If I could change anything, it would have been the ability to use a mechanic of my choice for the repairs.

Another team member recounted their experience with State Farm:

I had a very hard time getting someone who knew my case on the phone. I would call the customer service number from the app and end up with a generic customer service rep. They would have to transfer me to a case officer who was constantly out of office. I must have left 10 voicemails. […] I will say that the actual State Farm agent I’ve had for over 10 years is great. When I call him he answers, he’s able to help me navigate the process and when he calls corporate I get a call back much faster.

We reached out to State Farm for a comment and received the following response:

As an organization, we take pride in our customer service and are committed to paying what we owe promptly, courteously and efficiently. State Farm values the relationships we have with our customers. If a customer has any questions, we encourage them to reach out through their agent, online at StateFarm.com or by calling 1-800-STATE-FARM.

Compare Car Insurance Companies: Customer Experience

Customer service is where you’ll find some separation between insurance providers. Some companies are known for providing polite, professional and otherwise helpful customer service, while others are not.

Customer Reviews

When we asked for tips on comparing car insurance companies, Prachi Gala , assistant professor of marketing in the Coles College of Business at Kennesaw State University, told us that customer reviews online can be a valuable source of information.

Check customer reviews and seek recommendations to gauge overall satisfaction with the insurer’s services Prachi Gala, Assistant Professor of Marketing and Professional Sales at Kennesaw State University

You can find ratings scores and reviews for auto insurance companies on sites such as Google, Trustpilot, the Better Business Bureau (BBB) and more. We thought it would be helpful to provide some additional context for those review scores and combine them into one, easy-to-compare metric. You’ll find our combined customer review score for each provider in their listing.

Customer Experience: Tools and Features

Another aspect of the customer experience is the actual experience of interacting with your insurer and your policy. Some companies provide a useful array of apps and online services that make it easy to understand and use your car insurance policy. Others fall short in this department. 

This part of the policyholder experience is becoming increasingly important. That’s why we’ve made it a more significant part of our analysis.

Compare Top Car Insurance Carriers Head-to-Head

Our research team took the time to create and document detailed, head-to-head matchups between car insurance providers to help you find the right one. See direct comparisons of the most popular providers by following the links below.

Car Insurance Discounts and Bundling

Car insurance discounts don’t just save you money, they are also a useful point of comparison between providers. Most car insurance companies offer at least a few discounts on coverage, but the discounts they offer vary from one provider to the next.

Car Insurance Discounts

Seeing which discounts are available and applying them is one of the last steps in getting a new auto policy. You’ll have to check with an agent to learn which discounts apply in your area. But learning which providers have discounts that apply to you can help you narrow down your choices.

These are some of the most common car insurance discounts you’ll find on the market:

• Multi-car: Insurers typically offer a discount for insuring more than one car under the same policy.
• Military: Many insurance companies offer a discount to active duty and retired military members. Sometimes this discount is extended to close family members.
• Retiree: Drivers who are of retirement age may qualify for a discount on their auto policy.
• Good student: Some insurers offer a discount for maintaining good grades while you’re in school.
• Safe driving: If you’ve gone for a predetermined period of time — often three years — with no violations or at-fault accidents on your record, you may qualify for a discount on car insurance.
• Drivers education: Many insurers offer a discount for completing an approved safe driving course, even if you have a clean driving record.
• Autopay: Switching from manual payments to automatic billing can often get you a discount on car insurance.
• Paperless billing: Insurance companies often offer discounts for opting out of getting paper bills in the mail and instead handling it completely online.
• New car: You may be able to qualify for a discount with some insurers if your car is a recent model year.
• Safety feature: Insurers often offer discounts for having additional safety features such as side airbags, anti-theft devices or anti-lock brakes installed.

Read more: Car Insurance Discounts

Bundling Your Insurance

You’re almost guaranteed to find a discount for “bundling” insurance policies with every provider. Sometimes referred to as a multi-policy discount, this refers to when insurers offer savings — often significant — for bringing home insurance and other insurance products onto the same policy under the same insurer.

Here are some of the types of insurance you may be able to bundle with your auto policy:

• Homeowners insurance
• Renters insurance
• Motorcycle insurance
• Pet insurance
• Life insurance
• Boat insurance
• RV insurance
• Umbrella insurance

What Now? Your Next Steps

If you’ve made it this far, you now know everything you need to compare car insurance quotes and get the best price on the best policy from the best provider for you. When you’re ready to get started, you can use the ZIP widget below to get multiple car insurance quotes from EverQuote, a convenient comparison marketplace. If you want to learn a little more about how the process works, keep reading.

MarketWatch Guides Tip: Choosing Car Insurance Coverage

When determining which company to choose, make sure to compare apples to apples. This means, for example, comparing similar quotes from different companies to the coverage they offer. If you find that one company offered you a middle of the road rate but provides the best coverage out of three to five companies you shopped around with, that might give you the most peace of mind.

Steven Gattuso , assistant professor in the economics and finance department at Canisius University, told us that squaring up your coverage needs ahead of time is critical to getting an accurate quotes comparison.

When comparing prices, make sure that you are comparing apples to apples. You may have one insurer who tells you that they can save you money on the premium but does so by reducing coverage. Steven Gattuso, Assistant Professor of Economics and Finance at Canisius University

How To Get Personalized Auto Quotes

There are a few ways to get car insurance quotes. Not all of the ways are easy or efficient. So, whatever you choose, there are a few steps to the process.

First, auto insurers need some key information about you and your vehicle to generate a quote. Secondly, preparing this information ahead of time and having it ready can significantly cut down on the time you spend shopping for a policy.

Information You May Need To Get a Quote

Insurance providers vary in what they ask for, but in general, you’ll need at least a few of the following pieces of information:

• Vehicle identification number (VIN)
• License plate number
• Drivers license number
• Contact information
• Home address, including ZIP code
• Coverage choices
• Vehicle make, model, year, trim and features
• Additional installed equipment
• Current auto policy details
• Marital status
• Homeownership status
• Military service history
• Approximate credit score

Why Use a Comparison Tool for Car Insurance Quotes  

Earlier this year, our auto insurance team member Connor Bolton tested out the three main methods of getting car insurance quotes and choosing a policy. We’ll go over his experiences in this next section to provide a better idea of what getting quotes and comparing them actually looks like.

After wrapping up the experiment, we asked Bolton which method he would use when it came time to shop for car insurance again. For him, there was no comparison.

I would recommend comparing online and through brokers since it is easier to find the best and cheapest option.

What To Expect With Comparison Tools

We firmly believe that online quote tools are the best way to get and compare car insurance quotes. They allow you to receive multiple offers quickly after entering your information just once. But it’s still a process. That’s why we’ve created a guide to prepare you for that process and help you get through it as quickly as possible.

How Do Comparison Tools Work?

The tool you’ll find on this page and others like it will guide you through the process one step at a time. At each step, you’ll be asked a question about your vehicle and personal information.

Once you complete the process and provide your contact information, your responses will be shared with insurers. Companies that can provide the coverage you’re seeking will then reach out to you with actual quotes that you can compare.

How Much Time Does the Comparison Tool Process Take?

Different tools vary in how long they take and how involved they are. The process for the EverQuote tool we use takes about seven minutes in total. If you do not have all your information at hand, it will likely take longer.

What Information Do I Need To Provide?

You’ll need to provide the comparison tool with the same information you’d need to hand over to agents, brokers or other online quote retrieval services. This includes information about your vehicle, your driving habits and record, your demographic features and a few other details. 

Our tool guides you through these questions one at a time to help simplify the experience.

For the most efficient process, it’s a good idea to prepare this information ahead of time. Skip back to our list of information you’ll need to learn what to get ready before you start the quote retrieval process.  

What Happens After I Submit My Information?

Once you complete the process, you’ll start receiving communications from representatives of different companies about car insurance quotes. These will come in the form of calls, emails and text messages.

In our experience, companies start reaching out almost immediately. Agents may try to reach you for up to a few days after you submit your information. This can be overwhelming, but you can easily opt out by responding to calls, texts or emails and asking to stop communication.   

MarketWatch Guides Tip: How To Get Cheaper Car Insurance Quotes

Once you find a policy and provider you like, start looking for discounts you qualify for to save on your annual rate. If you enjoy a good challenge, are consistently trying to be a better driver and don’t drive often, signing up for a telematics program could save you a good amount. Finally, don’t be discouraged if you don’t qualify for many discounts, you can always work toward qualifying for one in the future.

Emily Goener , assistant professor of business communications at the St. Cloud State University Herberger Business School, also gives a few of her best tips for getting cheaper rates now and setting yourself up for lower premiums in the future.

When researching companies, watch for discounts you may qualify for — such as military, good student and more. Try to maintain a safe driving record and good credit scores. Insurance companies consider both factors when preparing quotes. Finally, shop often. You may qualify for new discounts or changes in company ratings, so be sure to review your policies annually. Emily Goener, Instructor of Business Communication at St. Cloud State University

Comparing Car Insurance Quotes: The Bottom Line

Taking the time to source and compare auto insurance quotes is one of the best ways to save money on coverage. There are many ways you can do that, but a quote comparison tool is an efficient method that you can start right now.

Compare car insurance quotes quickly with your ZIP code below to find the best rate and coverage for your needs.

Compare Car Insurance Quotes: FAQ

Below are some frequently asked questions about comparing car insurance quotes.

Who typically has the cheapest car insurance?

Based on a standardized profile in 2024, Geico typically offers the cheapest rates in terms of national average. However, car insurance quotes are unique to individual drivers, so the cheapest rates for you may very well come from a different provider.

Is Geico cheaper than Progressive?

Geico is cheaper than Progressive for many drivers, but not always. Car insurance quotes are tailored to an individual and their vehicle, so while Geico may have cheaper premiums than Progressive for some drivers, the opposite is also true. Progressive tends to have comparatively affordable rates for high-risk drivers.

Who pays the cheapest car insurance?

Middle-aged drivers with good credit scores and clean driving records typically pay the cheapest rates for car insurance. 

Our Methodology For Comparing Car Insurance Companies

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Cost and Discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities are both taken into consideration.
• Industry Standing (20% of total score): Our research team considers market share, ratings from industry experts and years in business when giving this score.
• Customer Experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also consider the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
• Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements score highest in this category.

Our credentials:

• 800 hours researched
• 130+ companies reviewed
• 8,500+ consumers surveyed

*Data accurate at time of publication.

If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides. com .

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The compensation may impact how, where and in what order products appear, but it does not influence the recommendations the editorial team provides. Not all companies, products, or offers were reviewed.