Can the regional Preferred Auto Insurance Company beat bigger nationwide providers in terms of coverage?

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If you live in Tennessee, you may already be familiar with Preferred Auto Insurance Company. Read on to find out whether the auto insurance coverage options and benefits offered by this company are on par with those offered by bigger nationwide providers?

While Preferred Auto Insurance Company is a local provider servicing Tennessee and doesn’t find a spot in our list of the best car insurance companies in the industry, it has been around for the past 19 years. In our review of Preferred Auto Insurance Company, we analyzed the availability of different coverage options, sample costs, online reputation, customer reviews, and more so that we can help you make the best decision.

We recommend getting multiple car insurance quotes before making a decision. To get quotes from Preferred Auto Insurance Company along with other top providers in your area, fill out the form below or call our team at (855) 518-0148.

 
 

In This Article:

Preferred Auto Insurance Company Overview

Preferred Auto Insurance Company is a small, privately-held auto insurance company based out of Memphis, Tennessee. It was founded in 2000 and owns 18 captive retail agencies. At present, Preferred Auto provides car insurance only in Tennessee. The company’s public profile on LinkedIn describes it as specializing in “non-standard and high-risk auto insurance.” 

A quick online search for Preferred Auto Insurance Company may bring up the Preferred Auto Insurance Agency as well as the Preferred Mutual Insurance Company. However, Preferred Auto Insurance is different from both these organizations. While Preferred Auto Insurance Agency is a full-service insurance agency based in Riverside, California, the Preferred Mutual Insurance Company operates in the Northeast (New York, New Jersey, New Hampshire, and Massachusetts). 

 


 

Preferred Auto Insurance Company Coverage Options

As part of our research into Preferred Auto Insurance Company, we took a deep dive into the different coverage options and compiled the highlights below. Though, it is still not a complete list of the company’s agreements, duties, or exclusions. We recommend talking to an agent or reviewing the Preferred Auto Insurance Company policy form for more details. 

In general, Preferred Auto Insurance Company provides the following types of coverage.

Liability Coverage 

Liability coverage is required in all states and covers the other party if in accidents where you’re at fault. 

If you purchase liability coverage from Preferred Auto Insurance Company, this will help pay for any bodily injury or property damage. The amount will be subject to the limit of liability you have chosen for the coverage.

Preferred Auto Insurance Company will also pay some supplementary benefits like the following:

  • Up to $100 for bail bonds for traffic violations resulting from a covered auto accident
  • Certain legal expenses such as premiums on appeal bonds and bonds
  • Other reasonable expenses incurred at the company’s request
  • Up to $50 for emergency first aid administered to others at the scene of the covered auto accident

Medical Payments Coverage

If you have purchased medical payments (MedPay) coverage from Preferred Auto Insurance Company, the company will reimburse funeral and medical expenses due to auto injuries.

The medical expenses should be within one year of the accident and exclude the cost of services like acupuncture, experimental treatments or products, and chiropractic care. 

Uninsured Motorist Coverage

Uninsured motorist coverage from Preferred Auto Insurance Company offers benefits in the case of bodily injury and property damage caused by an uninsured motorist in an accident.

Under this coverage, loss of use is not considered property damage.

Comprehensive And Collision Coverage 

If you have purchased comprehensive and/or collision coverage, Preferred Auto Insurance Company will pay to repair or replace your damaged vehicle. 

Comprehensive coverage applies to damages to your car due to natural causes like storms and earthquakes, fire, theft, vandalism, etc. 

Collision coverage, as the name suggests, applies to damage that occurs in a collision.

You’ll also receive up to a maximum of $200 for towing and storage charges in the case of covered accidents. If your vehicle was stolen, you may receive $15 per day up to a maximum of $450 for alternate transportation expenses. 

 


 

Preferred Auto Insurance Company Quotes And Claims

When choosing an auto insurance company, you want to make sure that its services are easy to navigate, as to not add to your stress if you do need to file a claim.

We found the Preferred Auto Insurance Company website to be simple and functional with an online quote tool, a policy form, a contact number, and a portal for existing customers. The Preferred Auto Insurance portal can be used to make online policy payments, schedule payment reminders, and view policy details. However, you have to decipher the coverage through the company’s policy form

How Much Will My Insurance Cost?

Preferred Auto Insurance Company offers two types of discounts: homeowners discount and transfer discounts (for currently insured customers). We used the online quote tool on the website to analyze sample plan costs, and this is what we found. 

For the purpose of this example, we chose a 2015 Honda Accord with two drivers in their 30s, married, with current insurance, and for a plan duration of six months. The cost will go up if either or both of the drivers need an SR-22 certificate.

  • Base premium for liability coverage: $110 for bodily injury coverage of $25,000/$50,000 and $208 for property damage coverage of $15,000. This is the minimum car insurance coverage required in Tennessee under state law. 
  • Premium for underinsured motorist (UM) coverage: $69 for UM bodily injury coverage of $25,000/$50,000 and $68 for UM property damage coverage of $15,000.
  • Premium for medical limit coverage of $1,000: $25
  • Premium for comprehensive coverage and collision coverage with a $500 deductible: $152 and $507 respectively

Remember, this is just one example, and your premiums may look different. Average car insurance payments vary based on your age, credit history, driving record, violations, and many other factors.

Filing A Claim With Preferred Auto Insurance Company

Like most auto insurance providers, Preferred Auto Insurance Company requires prompt notification of how, when, and where the accident occurred, along with the names and addresses of any injured persons and witnesses. 

You may also be required to submit to any physical exams, provide access to relevant medical records and documents, or give written or recorded statements of the circumstances of the accident.

If you claim your benefits under collision and comprehensive coverage, Progressive Auto Insurance Company will ask you for written proof of loss, and you will have to submit this within 60 days from the date of request. 

You should also file a report with the police within 24 hours of the accident if you’re seeking benefits for damage to your vehicle under uninsured motorist coverage or if the accident involved a hit-and-run or unknown driver.

 


 

Customer Reviews For Preferred Auto Insurance Company

Because Preferred Auto Insurance has a limited availability, there are not many online customer reviews. 

The firm has only one review and one complaint on the Better Business Bureau over the last three years. While not accredited with the Better Business Bureau, Preferred Auto has an A+ rating, which we think is a good sign.

Google offers just 22 reviews and a two-star rating. Yelp lists 25 reviews and a higher rating at five stars. 

If you’re considering Preferred Auto Insurance Company, we recommend calling and getting a feel for the customer service for yourself. 

 


 

Frequently Asked Questions

What insurance is best for cars?

Our research ranks USAA as the best car insurance company in the country with affordable rates and great customer service. Other companies that made it to the top five are Geico, AAA car insurance, Progressive, and State Farm.

Should you get extra insurance when renting a car?

There is no one-size-fits-all answer to this question. While some personal car insurance policies and credit cards may offer some type of protection for rental cars, the extent of that coverage can vary depending on:

  • Your insurance provider
  • Your coverage options
  • The credit card you used to rent the car
  • The make and model of the car you’re renting

We recommended checking with your insurance company and credit card company to confirm if the coverage and benefits they provide can be applied to your rental car. 

What are the 10 best insurance options?

At present, the 10 best auto insurance companies in the industry are USAA, Progressive, Geico, State Farm, AAA, Farmers auto insurance, Root Auto Insurance, Allstate car insurance, The Hartford auto insurance, and Liberty Mutual auto insurance.

Do I need more than the required minimal coverage?

While it can be tempting to save money by purchasing only the minimum coverage, even a small accident can quickly set you back by thousands of dollars if you don’t have adequate coverage. Regardless of whether you buy your car insurance coverage from Preferred Auto Insurance Company or some other provider, we recommend that you buy as much coverage as you can reasonably afford and avoid putting your assets on the line in the event of a crash. 

What is preferred insurance?

Preferred insurance, whether car or life insurance, is offered to customers who fall into the lowest risk category and are the least likely to file a claim. Drivers with preferred car insurance typically pay low premiums based on their driving experience, record, and other characteristics.

 


 

Our Verdict: Preferred Auto Insurance Company

If you live in Tennessee and belong to the non-standard or high-risk category of drivers and need car insurance, Preferred Auto Insurance Company could be one of your options. If you choose the minimum liability auto insurance coverage, its rates are definitely on the lower end of the spectrum. 

However, if you travel a lot and are looking for better customer service, you might want to consider going with a bigger national provider. 

We recommend shopping around for the best coverage and comparing all your quotes before you make a decision. Don’t forget that the lowest quote may not always give you the best coverage. Sometimes, it is worth paying a little more in premiums to avoid a whole lot of stress and confusion later on. Use this tool or call (855) 518-0148 to explore all of your options:

 
 

 


 

Our Recommended Providers

We also looked into the 12 best auto insurance providers in the country based on different factors, such as availability, coverage options, financial strength, customer satisfaction ratings, and more. 

 

USAA

USAA is the best option for military families. Our team gives USAA a 5-star rating out of 5. It is known for being affordable, available nationwide, and having great customer service. USAA not only offers basic car insurance coverage but it also offers roadside assistance, rental reimbursement, accident forgiveness, and total loss coverage. For more information about coverage, read our USAA insurance review

 

Geico

Geico is another great option for car insurance. Our team gives Geico 4.5-stars out of 5 with the title of "Best Insurance Company Overall" in our review. Geico offers competitive pricing, wide coverage options, and good customer service. It also provides great discounts for students, military members, and federal employees. For more information, read our Geico review

 

State Farm

If you prefer a company with a strong technological presence, you should consider coverage from State Farm auto insurance. State Farm offers multiple mobile apps that allow you to manage your insurance and get discounts. Their Drive Safe & Save™ app is a usage-based option that rewards good drivers. They also offer student discounts. Read our State Farm insurance review for more information about coverage. 

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