Auto Owners Insurance: A Mutual Company?

Auto-Owners Insurance Group is a mutual insurance company that was established in 1916 and is headquartered in Lansing, Michigan. It is among the nation's largest insurers, providing insurance to nearly 3 million policyholders. The company offers multiple lines of insurance, including life, home, auto, and business insurance, and is known for its exceptional financial strength and stability. Auto-Owners Insurance Group is rated A++ (Superior) by AM Best Company and has been recognised as a Great Place to Work®. As a mutual insurance company, Auto-Owners Insurance Group is owned by its policyholders, returning profits to them in the form of dividends or reduced premiums.

Auto-Owners Insurance Group is a mutual insurance company

The company is represented by a vast network of 48,000 licensed agents in 26 states, offering a comprehensive range of insurance products, including life, home, auto, and business insurance. Auto-Owners Insurance Group stands out for its commitment to the independent agency system, ensuring that its policies are sold exclusively through local and independent insurance agents.

As a mutual insurance company, Auto-Owners Insurance Group is owned by its policyholders rather than outside investors. This structure prioritises the interests of its members, aiming to provide insurance at a reasonable cost. Profits are returned to the policyholders, either through dividends or reduced premiums. The company's focus is on offering exceptional customer service and competitive rates, reflected in its excellent ratings and multiple awards for customer satisfaction.

Auto-Owners Insurance Group is rated A++ (Superior) by AM Best Company, a leading insurance rating authority. This rating underscores the company's strong financial position and stability. The group has also been a member of the Fortune 500 since 2003, further emphasising its financial prowess and stability.

Auto-Owners Insurance's history and headquarters

Auto-Owners Insurance Group is a mutual insurance company that was founded in 1916 by Vern V. Moulton and four other associates. The company was established in Mount Pleasant, Michigan, but moved its headquarters to Lansing, Michigan, in 1917, where its home office has remained ever since. At the time of its founding, Auto-Owners Insurance consisted of one book of policyholder names and $174.25 in assets.

In January 1929, Vern V. Moulton was named president, a position he held until late 1957. In December 1935, the company expanded to its first state outside of Michigan, writing insurance in Indiana. By June 1951, the company had grown to 400 associates and unveiled its new $1.5 million four-story home office in downtown Lansing. This provided much-needed space, as the associates had previously been working in various buildings scattered throughout the city.

In 1966, Auto-Owners Life Insurance Company was established, and in December 1976, the company moved its operations into its current home office, relocating from downtown Lansing. In July 2016, Auto-Owners Insurance celebrated its 100th anniversary, and as of April 2017, the company writes insurance in 26 states and employs more than 4,700 associates.

The company's insurance products

Auto-Owners Insurance Group is a mutual insurance company that provides life, home, car, and business insurance. Their policies are sold exclusively through local and independent insurance agents within their 26 operating states.

Home Insurance

Auto-Owners offers homeowners insurance, including policies for renters, rental dwellings, mobile homes, and more. Their home insurance covers repairs to the structure of your home and any attached structures. It also provides coverage for separate buildings on your property, such as a standalone garage or storage shed. Personal property coverage is included in their policies, which pays for your belongings if they are destroyed in a fire or another type of accident. Personal liability coverage is also provided, which pays out if someone is injured on your property or if you cause damage to someone else's property. Guest medical payments are covered up to a limit of typically $5,000 or $10,000. Additional living expenses are also covered if you need to temporarily leave your home due to covered damage.

Car Insurance

Auto-Owners Insurance offers a range of car insurance policies, including coverage for classic cars, modified or converted vehicles, and rental cars. Their Road Trouble Service provides assistance if you are stranded on the road due to issues like flat tires or dead batteries. They also offer a Purchase Price Guarantee to protect your investment if your new car loses value.

Business Insurance

Auto-Owners provides business insurance for various types of companies, from small town businesses to large multi-state operations. They offer broad coverages, including property, liability, crime, and inland marine insurance. Their independent agents work with business owners to tailor custom policies to ensure they have the right coverage for their unique needs.

Life Insurance

Auto-Owners Insurance also offers life insurance policies to provide financial protection and security for you and your loved ones.

Customer service and ratings

Auto-Owners Insurance has received positive reviews for its customer service, with some customers praising its staff as "very people-oriented", "understanding" and "compassionate". The company has also been recognised for its great workplace environment, with 80% of its associates rating it as a great place to work.

Auto-Owners Insurance has received several customer service and claims management awards. It has also been rated A++ (Superior) by AM Best Company for its financial stability. The company has been rated highly by customers on Google, receiving 4 out of 5 stars, indicating great customer service. However, its rating on the Better Business Bureau (BBB) is less impressive, with only 1.4 stars out of 5.

Auto-Owners Insurance has also received positive reviews for its claims handling, ranking second with a score of 4.4 out of 5. More than 57% of surveyed customers were completely satisfied with the ease of filing a claim. Over 62% were completely satisfied with the updates they received and how the claim was resolved, a figure that was higher than all but one of the companies in the rating.

The company's customer service was rated highly, too, with Auto-Owners taking the top spot in one survey with a score of 4.7 out of 5. Over 90% of surveyed customers gave Auto-Owners a score of 4 or 5 for the ease of getting a new policy. Nearly 55% said they were "extremely satisfied" with their ability to contact customer service when needed.

However, some customers have complained about their experiences with Auto-Owners Insurance. Some have criticised the company for delaying payments and offering less compensation than they deserve. Others have complained about being dropped by the company after filing a claim, even though they had been customers for several years.

Overall, Auto-Owners Insurance performs relatively well in terms of customer service and ratings. While there are some negative reviews, the majority of customers seem to have had positive experiences with the company's staff and claims handling process.

Auto-Owners Insurance vs. competitors

Auto-Owners Insurance is a mutual insurance company that provides life, home, car, and business insurance. Their policies are sold exclusively through local and independent insurance agents within their 26 operating states. The company has been a member of the Fortune 500 since 2003 and is rated A++ (Superior) by AM Best Company for its financial stability.

USAA

USAA is a close competitor to Auto-Owners Insurance, offering lower rates for good drivers, drivers with speeding tickets, and drivers who have caused accidents with injuries or property damage. USAA's eligibility is limited to veterans, active members of the military, and their immediate families.

Erie

Erie is another close competitor, offering better rates for drivers who have caused accidents. Erie also has accident forgiveness and vanishing deductibles. However, its rates for drivers with bad credit are on the high side. Erie is only available in 12 states.

Progressive

Progressive is a good option for drivers with a DUI, as it offers the cheapest rates among the evaluated companies. It also provides non-owner car insurance and SR-22 filings. However, its rates are mediocre for senior drivers and those adding a teen to a policy.

Geico

Geico is a good option for drivers with poor credit, offering lower rates compared to other top insurers. It also has great rates for seniors and parents adding a teen driver to policies. However, Geico does not offer gap insurance, new car replacement, a vanishing deductible, or rideshare insurance.

Westfield

Westfield offers competitive rates for many driver profiles and has a variety of family discounts. It also has gap insurance, new car replacement, and accident forgiveness. However, it has the highest average auto insurance cost for drivers with a DUI among the evaluated companies, and it is only available in 10 states.

Auto-Owners Insurance stands out for its deductible benefits, rental car coverage, and purchase price guarantee for new cars. However, it does not offer online quotes, and its rates are high for drivers with poor credit and parents adding a teen to their policies.

Frequently asked questions