Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Oct 13, 2020

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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Things to Remember

  • Travelers Insurance is rated fifth from the bottom in the worst-rated auto insurance companies list.
  • The Commerce Insurance Company scored two of five possible in the customer satisfaction dimensions.
  • AIG is absolutely the worst of the worst, according to the J.D. Power and Associates research.
  • The most popular auto insurance companies are sometimes among the worst.

Auto insurance company ratings are performed by several consumer agencies, as well as federal and state governments.

Auto insurance companies are often rated on indicators, such as market share, as well as other factors like customer satisfaction. One popular agency that rates auto insurance carriers is J.D. Power and Associates.

In their latest ranking using data from 2009, J.D. Power and Associates names the Five Worst Auto Insurance Companies in America.

If you find that your insurance provider has the dubious honor of being listed on this ranking of the worst-rated car insurance companies, you may want to consider shopping around for another insurance carrier.

Don’t settle for less than the best. Use our FREE auto insurance comparison tool now by entering your ZIP code above.

Worst-Rated Auto Insurance Companies

What are the worst insurance companies?

A few of the infractions that place auto insurance companies on “worst” lists include:

  • Refusing to pay claims
  • Poor customer service
  • Raising premiums
  • Putting profits before policyholders

Some of these are the worst insurance companies in America for paying claims, which is pretty much the only job insurance companies have.

Sites that provide consumer comments, reviews, and rankings will provide insight into which companies to avoid when purchasing auto insurance.

Often, you’ll find patterns in the worst car insurance reviews, such as poor customer relations, errors in billing, etc. Again, should your insurance company be one that is not favored by current and former customers, consider shopping around for a new company.

Finding reliable auto insurance companies and cheap auto insurance rates is possible through an online car insurance comparison.

No matter what type of auto insurance you’re seeking to purchase, it’s always a good idea to compare online auto insurance companies and policies.

Websites that offer auto insurance comparison tools are a great place to start.

Simply enter your ZIP code into the input box and click “Start” to find great car insurance rates for coverage in your area.

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The Five Worst Auto Insurance Companies List

Each company in the “worst” list of bad auto insurance companies scored two out of five possible points on the J.D. Power and Associates dimension of customer satisfaction.

Let’s look at the five worst-rated car insurance companies for consumers in America.

#1 – Travelers Insurance

Travelers Insurance is rated fifth in the worst auto insurance companies list.

The reason Travelers is ranked above the other four is that this company scored a bit higher on the dimension of contacting the policyholder.

However, Travelers has appeared on a few different “worst” lists in recent years. If you’re a current customer of Travelers Insurance, you may want to weigh your other options.

#2 – 21st Century Insurance

Though 21st Century provides many conveniences for customers, such as the option of purchasing and managing their policies and filing an auto insurance claim online, this company scores very low in the customer satisfaction metrics.

However, on other lists, 21st Century has appeared as one of the better companies on other measures.

Your best bet is to compare this company with others using many criteria.

Even with this ranking, 21st Century scored a bit higher than many carriers in the “Pricing Satisfaction” category.

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#3 – Commerce Insurance Company

The Commerce Insurance Company scored two out of five possible in the customer satisfaction dimensions (as did Travelers).

Research this company using a comparison tool before purchasing a policy.

Commerce may offer policy options that are not available with other companies.

Perform your due diligence and make sure that you’re an educated consumer before purchasing any car insurance policy.

#4 – GMAC Auto Insurance

GMAC is another company that consistently appears on “worst” lists.

Scoring near the very bottom on the J.D. Power and Associates customer satisfaction evaluations, this company does not currently enjoy a great reputation.

Customer reviews tend to reflect dissatisfaction.

If this is your insurer, consider shopping around for another company.

Use a comparison tool to find a company that will provide great customer service and pay claims as expected.

#5 – AIG Auto Insurance

AIG is absolutely the worst of the worst, according to the J.D. Power and Associates research. In this research, AIG consistently scored low on all dimensions of customer satisfaction.

AIG appears on many “worst” lists.

If you find that your insurance company is listed as one of the worst, consider changing carriers!

Switching to another auto insurance provider is not a difficult process and you may find that you can save a considerable amount of money on your premium in the process.

Use a cheap online auto insurance quote search to save money and get the best auto insurance company, as well as the best policy and rates, for your needs.

No matter what company provides your auto insurance, if you’re not 100 percent happy with their products or service, research other options.

Even if your company is considered one of the most popular auto insurance companies, it may be favorable to change. Get instant online quotes by using the quote tool below.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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Auto Insurance Company Ratings

When talking about the worst auto insurance companies, there are ways to compare them that aren’t exclusively word-of-mouth. There are companies that rates them in different ways.

A.M. Best is a rating agency that measures the financial stability of insurance companies.

This video talks about A.M. Best ratings and what they mean.

J.D. Power rates companies based upon their cusotmer service ratings. So, if you’d like to be able to easily speak with a competent representative, this is pretty important for you.

Other companies, such as Moody’s, S&P, and more, also rate auto insurance companies based on their financial strength.

This table shows the nation’s top insurers so you can see how they compare.

Highest Rated Auto Insurance Companies
Insurance CompanyA.M. Best RatingsDirect Premiums Written
(in Billions)
Market Shares
(in Percent)
Loss Ratios
(in Percent)
AllstateA+ (Superior)$22.7 (↑)9.19% (↓)56% (↓)
American FamilyA (Excellent)$4.7 (↑)1.9% (↑)69% (~)
FarmersA (Excellent)$10.5 (↑)4.26% (↓)61% (~)
GEICOA++ (Superior)$33.1 (↑)13.41% (↑)71% (~)
Liberty MutualA (Excellent)$11.8 (↑)4.77% (↓)62% (~)
NationwideA+ (Superior)$6.7 (↓)2.73% (↓)58% (↓)
ProgressiveA+ (Superior)$27.1 (↑)10.97% (↑)62% (~)
State FarmA++ (Superior)$41.9 (↑)17.01% (↓)63% (↓)
TravelersA++ (Superior)$4.7 (↑)1.9% (↑)60% (~)
USAA
(Military &
Family Members)
A++ (Superior)$14.5 (↑)5.87% (↑)77% (~)
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These are objective ratings for you to use when deciding which company to choose.

Some auto insurance providers will also allow you to purchase a policy online. No need to put up with constant premium increases. It’s fairly easy to cancel auto insurance with one insurer and start with another.

It’s not always easy to sort through the best and worst auto insurance companies to find the right one for you. We can help. Enter your ZIP code below and start comparing local auto insurance quotes now.