Can the regional Preferred Auto Insurance Company beat the coverage of bigger nationwide providers?
If you live in Tennessee, you may already be familiar with Preferred Auto Insurance Company. But are the auto insurance coverage options and benefits offered by this regional company 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 on our list of the best car insurance companies in the industry, it has been around for over 20 years. In this review of Preferred Auto Insurance Company, we analyze the availability of different coverage options, sample costs, the company's reputation, customer reviews, and more to help you decide if it's the right provider for you.
We recommend getting multiple car insurance quotes before making a decision. To get free quotes from Preferred Auto Insurance Company along with other top providers in your area, fill out the form above or call our team at (844) 246-8209.
In this article:
- Preferred Auto Insurance Company Overview
- Preferred Auto Insurance Company Coverage Options
- Preferred Auto Insurance Company Cost And Discounts
- Customer Reviews For Preferred Auto Insurance Company
- Our Take On Preferred Auto Insurance Company
- Our Recommended Providers
- Frequently Asked Questions
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 retail agencies. Currently, Preferred Auto specializes in providing non-standard and high-risk auto insurance only in Tennessee.
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 a separate entity. 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
Preferred Auto Insurance Company offers many coverage options. The list below lays out the highlights, but 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:
- Bodily injury liability coverage: This coverage is required in Tennessee. It covers the other party's medical bills after an accident where you’re at fault.
- Property damage liability: This coverage is required in Tennessee. It covers the other party's repair bills after an accident where you’re at fault.
- Medical payments coverage (MedPay): This reimburses funeral and medical expenses for yourself and your passengers due to auto injuries.
- 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 after an accident.
- Comprehensive coverage: Comprehensive coverage pays for damages to your vehicle due to natural causes like storms and earthquakes, as well as fire, theft, vandalism, and more.
- Collision coverage: Collision coverage pays to repair damage to your own vehicle after an accident.
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 also receive $15 per day up to a maximum of $450 for alternate transportation expenses.
Preferred Auto Insurance Company Cost And Discounts
Preferred Auto Insurance Company offers two types of discounts: homeowners discounts 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, wanting a plan duration of six months. The cost would go up if either or both drivers needed 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 other factors.
Customer Reviews For Preferred Auto Insurance Company
Because Preferred Auto Insurance has limited availability, there are not many online customer reviews.
The firm has only one review and one complaint on the Better Business Bureau (BBB) over the last three years. While not accredited with the BBB, Preferred Auto has an A+ rating, which is a good sign.
Google offers just 30 reviews and a 2.1 out of 5.0-star rating. Yelp lists over 25 reviews and a higher rating, at 5.0 stars.
If you’re considering Preferred Auto Insurance Company, we recommend calling and getting a feel for the customer service for yourself.
Our Take On 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 the free tool below or call (844) 246-8209 to explore all of your options.
Our Recommended Providers
We also looked into the best auto insurance providers in the country based on different factors, such as availability, coverage options, financial strength, customer satisfaction ratings, and more.
USAA: Best For Military
USAA is the best option for military families. Our team gives USAA a perfect 5.0-star rating. 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 auto insurance review.
Geico: Best Overall
Geico is another great option for car insurance. Our team gives Geico 4.5 out of 5.0 stars and the title of best overall insurer. 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 auto insurance review.
State Farm: Best For Students
If you prefer a company with a strong technological presence, you should consider coverage from State Farm. 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 auto insurance review for more information about coverage, costs, and more.
In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.
- Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
- Availability: We consider availability by state as well as exclusions for specific groups of drivers.
- Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
- Cost and Discounts: Our research team reviews sample quotes for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
- Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
- Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.
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