Paul Sanchez
GAINSCO, a subsidiary of MGA Insurance Company, is an auto insurance company that specialises in non-standard and minimum-limits car insurance. Owned by State Farm, GAINSCO sells car insurance exclusively through independent agents and digital channels. The company provides policies for drivers seeking high-risk auto insurance, SR-22 filings, and minimum coverage. While GAINSCO offers competitive rates for high-risk drivers, it falls short in customer service and coverage options. Customer reviews highlight issues with responsiveness and long wait times, and the company has received more than the expected number of complaints relative to its size. Overall, GAINSCO may be a good option for high-risk drivers seeking minimum coverage, but those with standard rating factors might find its offerings lacking.
| Characteristics | Values |
|---|---|
| Company | GAINSCO |
| Parent Company | State Farm |
| Area of Specialization | High-risk drivers |
| Area of Operation | 14-20 US states |
| Customer Service | Poor |
| Customer Satisfaction Rating | 1.5/5 stars |
| Customer Reviews | Poor |
| BBB Rating | A- |
| BBB Customer Review Rating | 1/5 stars |
| NAIC Complaint Index Rating | 2.5 times the national median |
| Types of Coverage | Liability, uninsured motorist, underinsured motorist, personal injury protection, comprehensive, collision, towing, rental reimbursement |
| Discounts | Advance shopping, pay-in-full, auto-pay, homeowner's, prior coverage, prior GAINSCO coverage |
High-risk drivers
GAINSCO, a subsidiary of MGA Insurance Company, was acquired by State Farm in 2020-2021 and continues to operate as a separate company. Headquartered in Dallas, Texas, it specializes in non-standard auto insurance for high-risk drivers.
Customer Service
GAINSCO has a high rate of complaints, with a National Association of Insurance Commissioners (NAIC) Complaint Index rating 2.5 times the national median. This indicates a high number of negative ratings relative to its premiums written. Issues highlighted by customers include long wait times, and a website and app that lack functionality.
Pros and Cons
GAINSCO is a good option for high-risk drivers who may not be able to get sufficient insurance elsewhere. It provides SR-22 forms and non-owner insurance, which can prevent drivers from being labelled high-risk due to a lapse in coverage.
However, GAINSCO struggles with customer service responsiveness, both online and by phone. The company also has a limited range of discounts compared to larger insurers, and does not offer liability coverage above state minimums.
In conclusion, GAINSCO is a suitable option for high-risk drivers seeking affordable minimum liability coverage. However, its limited coverage options and below-average customer service may be deterring factors for some.
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SR-22 forms
An SR-22 form is a certificate of financial responsibility that proves you have car insurance that meets the minimum coverage required by law. It is not a type of insurance but rather a document from your state's department of motor vehicles. An SR-22 is typically required if you've been caught driving without insurance or a valid license, or if you have a DUI or DWI conviction. It is also required if you have been driving without enough insurance, have had too many at-fault accidents or violations, or have repeat offences in a short timeframe.
If your insurance company offers SR-22 form filings, you can call them and they will add the SR-22 endorsement to your existing policy and then file the SR-22 document with the relevant state department. If your insurance company does not offer SR-22s, then you will need to buy a new policy.
GAINSCO, owned by State Farm, sells policies to high-risk drivers and can provide an SR-22 form if needed.
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Customer service
GAINSCO Auto Insurance is an independent subsidiary of State Farm, the largest auto insurer in the US. It was acquired by State Farm in late 2020 but continues to operate as a separate company.
GAINSCO has received mixed reviews for its customer service. While some customers have praised the company for its "great service", others have criticised the company for its poor responsiveness and long wait times. According to the National Association of Insurance Commissioners (NAIC), GAINSCO has a high rate of complaints, with a rating 2.5 times the national median. This suggests that the company has a disproportionate number of negative ratings relative to its premiums written.
The company's customer service has been described as "unresponsive and difficult to contact". Customers have reported long wait times on the phone and issues with the website and app, which do not provide a great deal of functionality. However, GAINSCO does have a mobile app for iOS and Android devices that allows customers to request an insurance quote, make a payment, report a claim, request an agent, and contact the company.
The company's customer service line is open between 8 AM and 6 PM Central Time, and customers can also contact the company by mail.
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Discounts
GAINSCO offers a range of discounts to its customers. While the company does not offer as many discounts as larger insurance companies, customers can still save money on their auto insurance policies by taking advantage of these discounts.
Advance Purchase Discount
If you purchase your GAINSCO policy in advance (between three and 30 days before your current renewal date), you can get a discount on your premium.
Pay-in-Full Discount
GAINSCO offers several plans that allow policyholders to spread out their payments over several months. However, if you choose to pay the full amount upfront, you may be able to avail a discount.
Auto-Pay Discount
By signing up for automatic payments from your checking account, credit card, or debit card, you can get a discount on your premium.
Homeowner's Discount
If you own a home, mobile home, condo, or townhouse, you may qualify for a discount on your GAINSCO car insurance.
Prior Coverage Discount
If you can provide proof of continuous auto insurance coverage with no gaps or a lapse of up to 30 days, you may be eligible for a discount.
Student Discount
GAINSCO offers a discount for drivers who are enrolled as students.
It is worth noting that GAINSCO does not offer discounts for safe driving, military service, or telematics-based usage. Additionally, the company's discount for prior insurance is only applicable if you can prove you have a current and active car insurance policy.
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Coverage options
Gainsco focuses on offering the minimum car insurance required by state law. However, it also provides the following coverage options:
- SR-22 and FR-44 forms: Gainsco can file an SR-22 form on behalf of its customers, which many states require as proof of minimum car insurance after a DUI or other serious offence. Florida and Virginia require an FR-44 form instead, but Gainsco no longer files these.
- Non-owner insurance: This provides liability insurance for those who don't own a car, preventing drivers from being labelled high-risk due to a lapse in coverage.
- Liability coverage: This is required by most states.
- Comprehensive and collision coverage: This covers the cost of damages to your car after an accident, regardless of who is at fault.
- Rental car reimbursement: This provides $20-$40 per day for a rental until your car is fixed or replaced.
- Personal injury protection.
- Underinsured motorist coverage.
- Roadside assistance: This provides towing services after an accident, with coverage amounts of $50-$100 per tow.
Gainsco also offers a few discounts to make policies more affordable, including:
- Setting up automatic payments.
- Paying your auto policy in full.
- Owning a home, condo, townhouse or mobile home.
- Buying a policy at least three days before it goes into effect.
- Insuring more than one vehicle.
- Having an auto insurance policy for at least six months, with no more than a 30-day lapse.
- Being a returning Gainsco customer.
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Frequently asked questions
Yes, GAINSCO is good for high-risk drivers. The company specializes in non-standard auto insurance policies and offers SR-22 insurance online. GAINSCO provides coverage for drivers with suspended or expired licenses, older model cars, and drunk driving charges or accidents on their records.
GAINSCO is not ideal for low-risk drivers. The company's rates are higher than many standard auto insurers for low-risk drivers, and it offers fewer coverage options and discounts than competitors.
Yes, GAINSCO is good for drivers who need an SR-22 form. The company provides SR-22 forms immediately at the point of sale for a nominal fee, making it easy for drivers to get back on the road after a traffic incident.
Yes, GAINSCO is good for drivers who want to work with an agent in person. The company has a large network of independent agents who can provide in-person support and help drivers navigate the insurance process.
No, GAINSCO is not ideal for drivers who want extensive bundling opportunities and robust discount options. The company only offers auto insurance, so bundling is not an option, and it provides fewer discounts than many competitors.
