If longevity is an important consideration when you select companies to do business with, then Amica might be a car insurance company you should take a look at. It is the nation’s oldest mutual car insurance provider. It was started in Providence, Rhode Island in 1907 as the Automobile Mutual Insurance Company of America (thus Amica) offering automobile, fire and theft insurance. It might be an understatement to call them pioneers in car insurance for at the time they formed, the U.S. Census estimated that there were only about 25,000 cars on the road. Today, while they aren’t the largest car insurance provider, they may be the best regarded.
All the coverage options…plus
If you do take time to consider Amica for your next car insurance policy, you’ll find you can build a plan with all the standard coverage options, including:
- Liability (both personal injury and property damage)
- Personal injury protection (PIP) or medical payment
- Uninsured/underinsured motorist
- Towing and labor (Amica’s roadside assistance program)
You will want to be sure that whatever package of coverage options you are considering keeps you in compliance with your state’s laws regarding minimum car insurance requirements. All states have liability levels required of licensed drivers. As a way of encouraging you to get more liability coverage than the mere minimums, Amica offers a lower rate on policies that exceed state minimum levels of liability.
In addition to these standard policy coverage options, every Amica car insurance policy comes with these extra features (at no extra cost to policyholders):
- No depreciation on your new vehicle in the event it is declared a total loss (either through theft or as a result of a serious accident) within the first year of ownership
- No deductible for lock replacement when your keys are lost or stolen
- No deductible for glass repair (if total replacement is not necessary)
- No deductible for repair or replacement of a deployed air bag
- Full reimbursement for any lost earnings/wages should you need to attend court in a claims case (at Amica’s request)
- Up to $1,000 for bail bonds
Amica’s platinum option
For slightly more premium dollars, drivers can get a number of additional benefits with their car insurance coverage. Amica offers a Platinum Choice Auto package. In addition to having the coverage options and levels in place (such as collision and comprehensive) adding this extra level of protection comes with:
- Good driver rewards and discounts
- Identity theft/fraud monitoring services
- Extended full glass repair and replacement services
- Prestige rental car services
(Not all of these services are available in all states, so be sure to consult with an Amica representative to see which ones are available where you live and drive.)
Impressive ratings…and discounts
While Amica is only the 23rd largest car insurer in the country (with just under $1 billion in annual, direct premium written) it plays above its level when it comes to customer loyalty and satisfaction. In its annual survey of car insurance companies, J.D. Power and Associates consistently has Amica in one of the top two slots. In its most recent survey, Amica scored 99 out of a possible 100 points overall. The insurer also had impressive ratings in categories such as fewest complaints, value, claims and customer service, and overall consumer experience. The company also maintains an AA++ (superior) rating from the A.M. Best survey of insurers.
Perhaps one reason why the company ranks so well is due to the impressive number of premium discounts drivers can apply for through the company. Amica offers these discounts to drivers:
- Multi-line or bundling discounts
- Multi-car discounts
- Loyalty discounts (stay with Amica a long time and they will reward your continued support)
- Tenure discounts (if you’ve been with another insurer for a while and decide to switch to Amica, it could get you a lower starting premium base rate)
- Paid-in-full discounts
- E-discounts (if you handle your billing and policy sign-ups online you can enjoy a discount)
- Automatic bill-pay (arrange to have your monthly premium automatically deducted from an account and save)
- Anti-theft devices discounts
- Safety devices discounts
- Driver’s training discounts (mostly applies to new and teen drivers)
- Defensive driving classes discounts (in some states this only applies to senior drivers)
- Good student discounts
- Student away discounts (if you have a child attending school full time and the school is more than 100 miles away from home, you all may qualify for lower rates)
One other advantage drivers find with Amica is through its structure as a mutual insurer. A mutual insurance company shares the wealth, so to speak, with its customers. It doesn’t have “shareholders” in the typical sense of the word. When you buy a policy from a mutual insurance company like Amica, you essentially become a shareholder, eligible for perks and benefits that come with that status.
In Amica’s case, they have consistently issued dividends to its shareholders/customers for more than 100 years. According to their own reporting, car insurance policyholders routinely receive “dividends” that equal about 20 percent of the annual premium paid in to policies. These dividends can be used for any purpose, including further lowering your annual car insurance costs.
(Note: this article is intended solely for informational purposes and is in no way a promotion or solicitation. The author is not affiliated in any way with Amica or any other car insurance provider.)
Jeffrey Davidson is a writer and advisor with more than 25 years of experience working with insurance companies and financial institutions. He currently writes about auto insurance products and services for Reply!. You can find his accompanying article on other mutual car insurance company options.