Auto Insurance: Is Citizens' Coverage Good For Drivers?

Citizens Insurance is a non-profit, state-run insurance company that offers coverage for Florida homeowners who are unable to find coverage from private insurance companies. Citizens Insurance is often referred to as the insurer of last resort and has become an increasingly important part of the struggling Florida home insurance market. The company offers basic coverage for an affordable price, but customers complain about its difficult customer service, especially during the claims process. In this article, we will explore the pros and cons of Citizens Insurance and discuss whether it is a good choice for those seeking auto insurance.

Citizens Insurance is a last resort for those who can't get coverage elsewhere

Citizens Insurance is a last resort for Florida homeowners who can't get coverage elsewhere. It is a state-run, non-profit insurance carrier for Florida residents who are unable to find coverage from private insurance companies. Citizens Insurance is also known as Florida's "insurer of last resort".

You can only purchase a Citizens Insurance policy if no other insurer is willing to issue you a policy or if coverage from private insurers is at least 20% higher than a similar Citizens policy.

Citizens Insurance offers cheap rates to Florida homeowners who can't get affordable coverage elsewhere. However, private insurance is usually a better option. Citizens offers basic coverage for an affordable price, but customers complain about its difficult customer service, especially during the claims process.

Citizens Insurance is a good option for Florida homeowners who can't find cheap coverage elsewhere. It may be the only way to protect a home for some people. However, its coverage is limited, and it gets a lot of complaints about its claims process.

Citizens Insurance is a non-profit company run by the state government of Florida

Citizens Insurance, or Citizens Property Insurance Corporation, is a non-profit company run by the state government of Florida. It was created in 2002 by the Florida Legislature to provide insurance to Florida residents who are unable to find coverage from private insurance companies. Citizens Insurance is often referred to as the "insurer of last resort".

The creation of Citizens Insurance was in response to the devastating Hurricane Andrew in 1992, which caused $26.5 billion in damage and left many Florida homeowners unable to find insurance coverage. The Florida Legislature authorized the formation of Citizens Insurance to provide both windstorm coverage and general property insurance for these homeowners.

Citizens Insurance is funded by policyholder premiums, but it is also required by law to levy assessments on most Florida policyholders if it experiences a deficit after a devastating storm. The company strives to provide service that is comparable to private-market standards and to be a good steward of the premium funds entrusted to them.

To be eligible for a Citizens Insurance policy, individuals must meet certain criteria. They must either be unable to obtain coverage from any other insurer or demonstrate that the cost of coverage from private insurers is at least 20% higher than a similar Citizens policy. This requirement ensures that Citizens Insurance remains the insurer of last resort and that individuals first seek coverage from private companies.

While Citizens Insurance offers affordable rates, it is important to note that the coverage provided may be limited compared to private insurance companies. Citizens Insurance has received complaints about its difficult customer service, especially during the claims process. Additionally, there may be restrictions on eligibility for Citizens Insurance based on the value of an individual's residence and personal property.

Citizens Insurance has a vast agency network throughout Michigan and the Midwest

Citizens Insurance is a popular choice for auto and home insurance in Michigan and other areas. Citizens Insurance offers some of the cheapest home and auto insurance rates available. The company has a well-trained staff of agents who can help customers find a policy that suits their needs at a great price.

Citizens Insurance is committed to providing the lowest rates to all customers in each market it serves. The company offers a simple online experience that allows customers to compare quotes from top-rated insurance companies and choose the best coverage for their unique circumstances. Citizens Insurance also offers multiple discounts, such as bundling auto and homeowners insurance, which could save customers 20% or more.

Citizens Insurance is a subsidiary of The Hanover Insurance Group, one of the top 25 providers of property and casualty insurance in the United States. Citizens auto insurance is only available through The Hanover. The Hanover website offers an agent locator function to help customers find a Citizens Insurance agent near them.

Citizens Insurance has mostly positive reviews

Citizens Insurance customers have praised the company for its responsiveness and helpfulness during the claims process. One customer review mentions that Citizens was a "dream to work with" following storms in Michigan, with adjusters being very responsive and extremely helpful. Another customer review highlights the ease of filing a claim with Citizens, stating that the process was "easy and painless".

Citizens Insurance has also received positive reviews for its customer service, with customers noting that the company's representatives are "outstanding" and "quick and pleasant". One customer review mentions that Citizens Insurance was there to assist them immediately after major damage to their house, and the adjusters were "incredible".

In addition to positive reviews, Citizens Insurance has also received some negative feedback. Some customers have complained about the company's rates, mentioning that the premiums keep increasing. Others have expressed concerns about the limited coverage offered by Citizens, especially when compared to private insurance companies. There have also been complaints about difficult customer service and the claims process, with some customers noting that Citizens Insurance has a high number of customer complaints with the National Association of Insurance Commissioners.

Citizens Insurance has a high number of customer complaints

Citizens receives more than four times as many complaints as similar insurance companies, according to the National Association of Insurance Commissioners (NAIC). In 2021, Citizens received over triple the number of complaints than similar insurance companies of its size. Chief complaints revolve around rude customer service representatives and claims adjusters, difficulty getting claims processed and paid out, and expensive rate hikes at the time of renewal.

Citizens Insurance reviews are scarce, with neither AM Best nor Demotech rating the company for financial strength. However, in June 2023, Fitch Ratings gave the company a "stable" outlook with a AA rating for the second year in a row. As of December 2023, Citizens' latest financial report showed a $5 billion surplus.

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