The leading auto insurance company may be seen as a three way tie between GEICO, Amica and USAA; depending on who is doing the rating. Since the answer to this question will be a bit different for everyone, we decided to look at a wide array of ratings and studies into car insurance providers.
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The criteria for rating these companies vary, but there are some that seem to stand out. The rest of this article will look at some of those ratings and discuss which companies come out on top, which are bottom of the barrel, and why.
Why don’t some of the largest auto insurance companies get great customer reviews?
According to the Consumer Search site, some of the largest auto insurance companies also spend the most money on auto insurance advertising. Of several large auto insurance companies receiving negative to neutral reviews by sites like Epinions.com, only GEICO shows improved customer ratings for “overall satisfaction” according to J.D. Power and Associates.
Amica receives first place for the best auto insurance company in terms of customer approvals. J.D. Power has given Amica top ranks for 11 consecutive years. The Better Business Bureau gives Amica an “A+:” rating
State Farm remains picky about their auto insurance policyholders and has a high customer complaint overturn rate.
United Services Auto Association (USAA) is a great resource for members of the military. USAA gets top ratings for customer service, claims, and auto insurance rates. High net worth individuals (HNWI) give USAA lots of praise, according to The Luxury Institute. The company receives highest financial grades by Standard & Poor’s, Moody’s, Weiss, Fitch, and A.M. Best.
J.D. Power and Associates report that Chubb Insurance and American Family Insurance receive high auto insurance ratings from customers. AAA of Southern California also receives customer praise. New Jersey Manufacturers Insurance, selling only to a small universe of people living in New Jersey and Pennsylvania, also gets customer service marks.
Where do I get information about large auto insurance companies?
For many customer service-related reasons, companies like AIG, Allstate, Liberty Mutual, Mercury Insurance, and Progressive receive lower reviews. The American Association for Justice’s “10 Worst List” includes a sampling of auto insurance company names that most people recognize. In addition:
- J. D. Power and Associates, in a 2009 survey of 25,000 21st Century Insurance (formerly owned by AIG and now owned by Zurich Insurance), says the company gets low customer service scores.
- Allstate received about 1,400 customer complaints from 2008 to present, according to the Better Business Bureau headquarters in Arlington, Virginia. Better Business Bureau notes Allstate’s responsiveness to complaints and gives the company an “A+” rating. Similarly, the AAJ says that Allstate receives low scores for claims payments. J.D. Power and Associates show that Allstate’s auto insurance premium rates appear to be “average” in the field of thousands of auto insurance companies.
- AAJ reports that Liberty Mutual also makes the “10 Worst List.” The company scored “average” ratings according to J. D. Power.
- American Family Mutual and Nationwide get “average” ratings for claims service. AAJ reports that customers complain about repairs completed with non-original auto parts.
- Travelers Insurance gets “average” marks in consumer surveys.
- The Hartford receives “above average” marks for claims services, according to J.D. Power. Consumer Reports says the company is considered one to avoid. Policyholders say that auto insurance rates increase after submitting an auto insurance claim.
- Mercury Insurance received low scores for claims, according to J.D. Power and Associates. The company ties tor last place with Commerce Insurance. Mercury paid fines of $500,000+ since 2006, according to the “San Francisco Chronicle.”
How do I get information about auto insurance ratings from reliable, neutral reviewers?
Your state’s insurance department is the best place to start to find information about customer complaints in your state. Large insurance companies, like many businesses operating across state lines, may seem like different companies from state to state. That’s why your state insurance department watches each insurance company permitted to operate within its borders. Additional resources include:
- Better Business Bureau reviews
- Epinions reviews
- Nationally recognized credit rating agencies such as Standard & Poor’s, Moody’s, A.M. Best, Weiss Ratings, and Fitch Ratings review each insurance company for financial strength and ability to pay claims
- Consumer Reports reports
- J.D. Power and Associates reports
- American Association for Justice (AAJ) reports
Can I compare auto insurance quotes without bias?
Yes. By using a third party tool like the one on this page, you can get online rate quotes that are not influenced by a loyalty to any single car insurance provider. Provide your home zip code to request competitive auto insurance quotes today!