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What auto insurance company statistics can help me choose?

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Things to Remember...
  • Insurance companies are financial institutions
  • They have financial reserves set aside to pay policyholder claims
  • Large financial reserves are important because if there is a catastrophic event, such as a tornado, hurricane or earthquake, numerous claims will be filed by policyholder

There are many auto insurance company statistics available on the internet. All you have to do is conduct a Google search on “auto insurance statistics” and you will get literally thousands of results.

In order to sort all the information out and make sense of it, it is important to understand what statistics and information is helpful in choosing the right car insurance company.

Enter your zip code into our FREE auto insurance comparison tool and to find the perfect policy for you and your family!

How Auto Insurance Works

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Although you may think you know how simple car insurance is, the reality is that it is actually a very involved industry. Insurance companies are financial institutions.

They have financial reserves set aside to pay policyholder claims.

However, they also use the money you pay them in premiums to make investments and grow those financial reserves.

The stronger an insurance company is, the larger its financial reserves will be.

Large financial reserves are important because if there is a catastrophic event, such as a tornado, hurricane or earthquake, numerous claims will be filed by policyholders.

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Qualities of an Excellent Auto Insurance Company

When you evaluating information regarding a potential auto insurance company, there are several qualities you should look for in reviews.

Financial stability is a primary characteristic that is extremely important.

Financial stability means that the insurance company has strong financial reserves and the ability to withstand events that result in large numbers of claims.

Another quality to look for is excellent customer service. Customer service agents should be available around the clock and easily accessible.

Look for companies with customer service that is available online, over the telephone or in person.

Find out if they are able to file a claim for you, help you with billing questions or provide assistance if you need a rental car.

Price is also another quality you should evaluate carefully. Almost all auto insurance companies now offer some sort of discounts to lower premium policy rates. You may find that you qualify for multiple discounts.

You also should look for a car insurance company that has a low number of complaints and lawsuits against them.

Almost all auto insurance companies will have a few complaints against them, however, if you find there are a large number of complaints or lawsuits against an insurance company, avoid using their services.

Sources of Auto Insurance Company Statistics and Reviews

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You can find statistics from a wide variety of sources. The easiest way to understand statistics and reviews is to examine what is specifically being evaluated and apply that information to the knowledge you already have at hand.

Financial Stability Review Websites – Independent financial review organizations periodically review auto insurance companies and publish their findings online. AM Best, Standard and Poor’s and Fitch evaluate auto insurance companies’ financial reserves, financial practices, credit rates and overall financial stability and issue letter grades.

Grades in the “A” range are considered superior, grades in the “B” range are considered good and lower grades indicate less financial stability.

Consumer Satisfaction Reviews – Independent consumer satisfaction organizations perform regular reviews of insurance companies and publish their findings online.

JD Powers and Associates conducts an annual survey of auto insurance companies, interviewing thousands of people across the United States about their experiences with their car insurance companies.

Consumer Reports also performs frequent evaluations of car insurance companies and publishes their findings on their website and in their magazine publication.

Insurance Comparison Websites – Insurance comparison websites can provide you with premium rate quotes from multiple insurance companies in a very short period of time. Comparison websites also often have recommended insurance companies and articles about insurance-related topics.

Department of Consumer Affairs – Each state has a Department of Consumer Affairs that regulates insurance companies operating in their state. On your state website, you can find information regarding insurance companies licensed to operate in your state.

You can also find out information regarding the status of an insurance agent and broker licenses. The Department of Consumer Affairs also publishes information about lawsuits and complaints filed against auto insurance companies.

Better Business Bureau – The Better Business Bureau works with consumers to mediate and resolve consumer complaints. They also publish information regarding consumer complaints on their website and information about auto insurance companies. The Better Business Bureau has a certification program for companies demonstrating dedication to consumer satisfaction and customer service.

Evaluating reviews and statistics should be part of your purchasing process so that you get more than just the best premium rate possible.

Our FREE car insurance comparison tool can give you reliable rates to compare when you enter your zip code below!

FREE Auto Insurance Comparison

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