Finding The Best Auto And Home Insurance Company

Finding the right auto-homeowners insurance company is essential to ensuring you get the best coverage for your needs. Here are some key factors to consider when making your decision:

- Cost: Getting multiple quotes from different insurance companies is crucial in finding the most affordable option for you. However, it's important to remember that the cheapest option may not always be the best, as you also need to consider the level of coverage offered.

- Coverage Options: Different insurance companies will offer varying levels of coverage, so it's important to understand what is and isn't covered in each policy. Look for a company that offers coverage options that align with your specific needs, such as natural disaster protection or identity theft coverage.

- Customer Service: You want an insurance company that will be there for you when you need them. Look for companies with high customer satisfaction ratings and low complaint indices, as this indicates they provide timely and responsive service.

- Discounts: Many insurance companies offer discounts for things like bundling policies, having safety features in your home, or being claims-free. Taking advantage of these discounts can help lower your premiums.

- Financial Strength: It's important to choose a financially stable company with a strong ability to pay out claims. You can check a company's financial strength through ratings from agencies like AM Best.

- Availability: Not all insurance companies are available in every state, so be sure to check that the company you're considering offers coverage in your area.

Discounts

• Multi-policy or bundling discount: Also known as a multi-line discount, this is offered when you purchase multiple types of insurance policies, such as homeowners and auto insurance, from the same company. This can save you anywhere from 7% to 25% on your insurance premiums.
• Claims-free discount: You may be eligible for this discount if you haven't filed a claim in several years.
• Payment discounts: Some companies offer a discount if you pay your insurance premium in full or if you opt for paperless billing.
• Loyalty discount: You may be rewarded with a discount for staying with the same insurance company for a certain number of years.
• Protective device discounts: Installing security systems, fire safety equipment, or water leak detection devices in your home may qualify you for a discount.
• Renovated home discount: If you've recently upgraded your home's electrical, heating, or plumbing systems, you may be eligible for a discount.
• New home discount: Some insurance companies offer a discount if your home is new or if you're a new homeowner.
• Automatic generator back-up discount: Having a back-up generator can earn you a discount with certain insurance companies.
• Mortgage-free discount: If you own your home outright, some companies will offer you a discount.

In addition to these common discounts, it's always a good idea to ask your insurance agent or company about any other discounts that may be available to you. You may be surprised at the number of ways you can save on your insurance premiums!

Customer satisfaction

• J.D. Power's 2024 Property Claims Satisfaction Study ranked Amica, AIG, and Erie Insurance as the top three companies for customer satisfaction. Erie Insurance ranked highest overall with a score of 856/1,000, followed by Amica with a score of 844.
• Erie Insurance and Amica Mutual also took the top two spots in J.D. Power's 2023 U.S. Home Insurance Study, with Auto-Owners in third place.
• USAA is another company that consistently receives high ratings for customer satisfaction. It is the No. 1 rated home insurance company according to US News, and it also ranked highly in J.D. Power's studies.
• State Farm, the largest home insurance company in the U.S., ranked above average in J.D. Power's Property Claims Satisfaction Study.
• Lemonade, a relatively new online-only insurance company, also prioritizes customer satisfaction with its use of AI to provide fast quotes and claim payments.
• When considering customer satisfaction, it's important to look beyond rankings and consider personal experiences and recommendations from friends and family.

Coverage options

When it comes to coverage options, there are a few key things to consider when choosing a good auto-homeowners insurance company. Firstly, it is important to understand the different types of coverage offered by the company. This includes dwelling coverage, which protects the structure of your home and any attached structures, and personal property coverage, which covers your belongings in the event of theft, fire, or other covered perils. Liability coverage is also important, as it provides financial support and legal protection if you are held responsible for injuries or property damage. Additionally, consider whether the company offers additional living expenses coverage, which can help with temporary housing and living expenses if you need to leave your home due to a covered loss. When reviewing coverage options, it is also worth considering the company's customer service and claims handling ratings, as well as their financial strength and stability. By comparing these factors, you can make an informed decision about which auto-homeowners insurance company is right for you.

Financial strength

There are several independent agencies that rate the financial strength of insurance companies, including A.M. Best, Fitch, Kroll Bond Rating Agency (KBRA), Moody’s and Standard & Poor’s. Each agency has its own rating scale, standards, and population of rated companies.

A.M. Best, for example, rates insurance companies on a scale ranging from "Superior" to "Poor". NerdWallet recommends considering insurers with ratings of A- or higher, as companies with lower ratings may not be as safe a bet and often have higher rates of complaints relative to their size.

When assessing the financial strength of an insurance company, it's important to look at ratings from more than one agency, as they often disagree. It's also a good idea to check these ratings annually, as they can change over time.

Complaint data

When looking for a good auto-homeowners insurance company, it is important to consider complaint data. This can give you an idea of the quality of customer service and help you make an informed decision. Here is some information on complaint data and how it can be used to find a good auto-homeowners insurance company:

• The National Association of Insurance Commissioners (NAIC) provides valuable information on insurance complaints. They collect and compile data on complaints from all states, allowing for a comprehensive overview of customer satisfaction.
• The NAIC's complaint data covers various aspects, including reasons for complaints, types of insurance or coverage involved, and how the complaints were resolved. This detailed information can provide insights into the specific issues customers are facing.
• The NAIC also offers a Consumer Insurance Search tool, which allows users to look up company profiles. These profiles include valuable information such as the number of justified complaints, financial overview, and licensing reports.
• In addition to the NAIC, individual state insurance departments also track and publish complaint data. For example, the Texas Department of Insurance (TDI) makes its insurance complaint data available on the Texas.gov Open Data Portal, where users can visualize and analyse the data.
• Analysing complaint data can reveal which companies have the most and least complaints. For instance, in a study by ValuePenguin, Geico customers were found to be the most likely to complain about claims, while Chubb customers were the least likely.
• It is important to consider the size of the company when interpreting complaint data. The NAIC's Complaint Index takes this into account by comparing the number of complaints a company has received relative to its size. This allows for a more accurate assessment of customer satisfaction.
• When choosing an auto-homeowners insurance company, look for one with a low Complaint Index. For example, Nationwide has a Complaint Index for car insurance of 0.43, meaning their customers are only 43% as likely to file a complaint as customers of another insurer.
• In addition to the quantity of complaints, pay attention to the specific issues being raised. Are there common themes or areas of concern? For example, in the ValuePenguin study, 68% of all complaints across insurers were related to claims handling, with unsatisfactory settlement offers and claim delays being the top two issues.
• Keep in mind that complaint data may vary by state. For instance, while claims-related complaints were most common overall, in Maryland, 79% of complaints were related to underwriting, specifically non-renewal and insurance surcharges.
• Utilise both national and state-level complaint data to get a comprehensive understanding of customer satisfaction and identify any regional trends or issues.

By considering complaint data and analysing both the quantity and nature of complaints, you can make a more informed decision when choosing an auto-homeowners insurance company. This will help you select a company with a strong track record of customer satisfaction and avoid potential issues with claims handling or other areas of concern.

Frequently asked questions