Cure Auto Insurance: Good Option?

Cure Auto Insurance, or the Citizens United Reciprocal Exchange, is an auto insurance company that bases its premiums on non-economic factors such as driving record rather than customers' credit history, occupation, or education level. The company has a reputation for offering cheaper-than-average premiums, making it ideal for drivers with poor credit scores. However, it is not suitable for car owners with high-risk driving records. Cure Auto Insurance has received mixed reviews, with some praising its affordable rates and simple claims process, while others have complained about poor customer service and communication issues. The company has also been criticised for its high rate of customer complaints and unsatisfactory settlements. Overall, Cure Auto Insurance may be a good option for those looking for affordable rates based primarily on their driving record, but it falls short in terms of coverage selection and customer service.

Cure Auto Insurance is only available in three states: Michigan, New Jersey, and Pennsylvania

Cure Auto Insurance, or Citizens United Reciprocal Exchange, bases its insurance premiums primarily on driving records rather than customers' credit history, occupation, or education level. This makes Cure a good option for drivers with poor credit histories. However, the company's rates may not be ideal for drivers with high-risk profiles, such as those with recent at-fault accidents, DUIs, or speeding tickets.

Cure Auto Insurance has received mixed reviews from customers. While some praise the company for its low rates and straightforward claims process, others have complained about issues with claims representative communication and service. The company has also been criticised for its aggressive tactics in attempting to avoid paying out on claims.

In terms of industry ratings, Cure Auto Insurance holds an A rating from the Better Business Bureau (BBB) but is not accredited by them. According to the National Association of Insurance Commissioners (NAIC), Cure has a complaint index rating of 5.75, indicating that the company receives more complaints than expected for its size.

Overall, while Cure Auto Insurance may offer competitive rates for drivers with poor credit in Michigan, New Jersey, and Pennsylvania, prospective customers should be aware of the company's limited availability, mixed reviews, and issues with claims handling.

The company bases premiums primarily on driving records, not credit scores, occupation, or education level

Cure Auto Insurance, or the Citizens United Reciprocal Exchange, is unique in that it bases insurance premiums primarily on non-economic factors such as driving record rather than customers’ credit history, occupation or education level. This means that customers with poor credit may find low rates with the company. However, it also means that Cure may not be the best option for those with high-risk driving records.

The company was founded in 1990 with the express purpose of providing favourable car insurance rates to drivers who may not be the most appealing to other insurance companies. For example, drivers may be less desirable to insurers if they have jobs that require driving often, are not homeowners, or have a low credit score. To counteract this, Cure bases the cost of its premiums primarily on a motorist’s driving record, thus rewarding safe drivers with reasonable rates even if they don’t meet the traditional criteria for low insurance premiums.

The company offers a three-year good driver discount of up to 35% for those with clean driving records. It also offers a loss-free discount, which starts at 5% for those who go two years without making a claim and increases up to a maximum of 20% after five years.

However, it's worth noting that Cure has received a high number of customer complaints. The National Association of Insurance Commissioners (NAIC) tracks customer complaints against insurance companies and Cure received a NAIC complaint index score of 5.16 for private passenger auto insurance in 2023, indicating that a relatively high number of customers end up filing a complaint against the company.

Cure has a reputation for offering lower-than-average premiums

Cure Auto Insurance has a reputation for offering lower-than-average premiums, making it a good option for drivers with poor credit scores in Michigan, New Jersey, and Pennsylvania. The company bases its premiums primarily on a motorist's driving record, rewarding safe drivers with reasonable rates even if they don't meet the traditional criteria for low insurance premiums. This means that Cure may not be ideal for drivers with high-risk driving records.

Cure's low rates are particularly appealing to customers who struggle to get reasonable insurance rates due to their occupation or non-homeowner status. However, it's important to note that Cure offers limited coverage options and discounts, and its customer reviews are mixed, with some praising its affordability and simple claims process, while others criticise its poor customer service.

In addition, Cure charges a 25% "deposit" on top of its premiums, and there have been complaints about how the company handles claims, with reports of unsatisfactory settlements and frequent denials of claims. Despite this, Cure has earned an A rating from the Better Business Bureau (BBB) and has a strong BBB rating.

Overall, Cure Auto Insurance's lower-than-average premiums make it a good option for certain drivers, but its limited coverage, mixed reviews, and issues with claims handling are important considerations when choosing an insurance provider.

The company has a high rate of customer complaints

Cure Auto Insurance has a high rate of customer complaints. According to the National Association of Insurance Commissioners (NAIC), Cure received a complaint index score of 5.16 for private passenger auto insurance in 2023. This score is five times the industry benchmark, indicating that a high number of customers file complaints against the company.

The company's complaint ratio, i.e., the total number of complaints from its insureds divided by the millions of dollars collected in premiums, is among the highest in Michigan, according to data from the Michigan Department of Insurance and Financial Services (DIFS). In 2022, 77% of consumer complaints against Cure in Michigan were related to claims handling, with customers reporting delays, unsatisfactory settlements and offers, and denials of claims.

Online customer reviews of Cure Auto Insurance are mixed, with ratings ranging from 1 out of 5 stars to 5 out of 5 stars. Positive reviews praise the company's straightforward and simple claims process and affordability, while negative reviews cite issues with claims representative communication and service. Some customers have also reported difficulties in receiving refunds after cancelling their policies.

The high rate of customer complaints against Cure Auto Insurance may be a cause for concern for potential customers. It is essential to consider the company's customer service and claims handling when deciding whether to purchase insurance from them.

Mixed customer reviews praise simplicity and affordability but criticise poor communication

Customer reviews of Cure Auto Insurance are mixed. The company has a rating of 3.5 out of 5 stars on Google Reviews and 1 out of 5 stars on Better Business Bureau (BBB), with nearly 3,000 responses on the former. While some customers praise Cure Auto Insurance for its simplicity, affordability, and straightforward claims process, others criticise the company for poor communication and issues with claims representative service.

Positive reviews of Cure Auto Insurance highlight its competitive pricing and simple claims process. Customers report that Cure offers significantly cheaper rates than other insurance companies, with one reviewer claiming that Cure's rates were "hundreds of dollars" cheaper than the competition. The company's focus on offering affordable insurance based primarily on driving records rather than credit scores, occupation, or education level is also praised.

However, negative reviews of Cure Auto Insurance cite issues with communication and customer service. Some customers report difficulties in getting through to the company, with long hold times and unreturned calls. There are also complaints about the claims process, with some reviewers stating that Cure looks for reasons to avoid paying out on claims. In addition, there are reports of issues with policy cancellations and refunds, as well as unexpected increases in insurance premiums.

Overall, while Cure Auto Insurance may offer attractive rates, particularly for drivers with poor credit, the company's mixed customer reviews highlight potential issues with its communication, customer service, and claims handling processes.

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