Paul Sanchez
When it comes to auto insurance companies, it's essential to consider not just the cost of premiums but also the quality of their customer service and how they treat their customers, especially during times of need. Various sources have listed Allstate, State Farm, and Liberty Mutual as some of the worst auto insurance companies in terms of customer satisfaction and handling of claims. These companies have been criticised for valuing profits over policyholders, employing tactics to delay or deny claims, and providing confusing policies. It's important to do thorough research and compare multiple companies before choosing an auto insurance provider to ensure you get the best coverage and service possible.
| Characteristics | Values |
|---|---|
| Worst Car Insurance Companies in 2023 | Liberty Mutual Insurance Companies, Allstate Insurance Group, Hartford Insurance Group, Auto Club Group Auto Insurance (AAA), Travelers Group Auto Insurance, Government Employees Insurance Company (GEICO), Mercury General Insurance, Nationwide Insurance Company, Farmers Insurance Company, Progressive Insurance Company |
| Worst Car Insurance Companies in 2024 | Allstate, AIG, State Farm |
| Worst Car Insurance Companies in 2021 | Liberty Mutual Insurance Companies, Esurance Property and Casualty Insurance Company, Metlife Auto & Home Group, Horace Mann Insurance Group, Allstate Insurance Group, National General Companies, Farmers Insurance Group, MAPFRE North America |
| Worst Car Insurance Companies in 2020 | Esurance Property and Casualty Insurance Company, Liberty Mutual Insurance Companies, Allstate Insurance Group, Metlife Auto & Home Group, Farmers Insurance Group, Horace Mann Insurance Group, Hanover Insurance Group Property & Casualty Companies, National General Companies |
| Worst Car Insurance Companies in 2019 | MAPFRE North America Group, MetLife Auto & Home Group, Mercury General Group, Progressive Insurance Group, Liberty Mutual Insurance Companies, Berkshire Hathaway Insurance Group (GEICO) |
What You'll Learn
Allstate Insurance Group
Allstate has been accused of putting profits over policyholders since the mid-1990s. This was brought to light in 2008 by the American Association for Justice (AAJ). The AAJ highlighted two strategies that Allstate employed to reduce payouts. Firstly, they used a computer program called Colossus to evaluate all claims. This program was designed to discourage accident victims with legitimate injuries from seeking legal assistance. Secondly, they hired a consulting company, McKinsey & Company, to encourage their insurance consumers to accept extremely low settlement offers. If a consumer declined the offer, Allstate would deny the claim by all means possible.
Allstate has also been accused of delaying and denying claims. In 2007, CNN reported on allegations that Allstate tampered with and altered engineering damage reports and forged signatures on waivers.
Allstate's auto insurance rates are higher than the national average. According to one source, the average cost of full-coverage insurance from Allstate is about $3,340 per year or $278 per month, which is about 25% more than the national average of $2,681 per year or $223 per month.
Allstate has received mixed reviews from customers. While some praise the company for its helpful customer service, others have complained about high rates, difficulties in getting coverage for claims, and issues with cancelling policies.
Liability Limits: Auto Insurance Risks
You may want to see also
State Farm
In some cases, State Farm has been known to investigate and accuse its customers of insurance fraud to avoid making payments. This has occurred in Michigan, where State Farm has fought to avoid paying no-fault benefits and legitimate claims.
Despite these criticisms, State Farm has been recognised for offering the best customer service to its consumers. In a phone test carried out by carinsurancecomparison.com, State Farm performed relatively well. The customer service representative was friendly and knowledgeable. However, there were instances where representatives seemed confused and unsure when asked to explain certain aspects of existing policies.
Understanding Auto Insurance: PIP 60 and You
You may want to see also
Liberty Mutual Insurance Companies
The company has been accused of bad faith insurance practices, including denying, delaying, and defending claims, as well as abandoning policyholders in states where it has received claims for hurricane damage. Liberty Mutual has also been accused of engaging in fraudulent activity, specifically bid-rigging fraud with broker Marsh & McLennan to artificially raise insurance rates.
Customer reviews of Liberty Mutual tend to focus on poor customer service experiences, unexpected rate increases, and a slow claims process. Many customers have complained about issues with cancelling their policies, unexpected balance due notices, and a lack of assistance from claims agents.
In terms of pricing, Liberty Mutual is ranked in the 3rd quartile among major car insurance companies, according to WalletHub's research. Liberty Mutual's insurance rates are competitive for certain drivers, including teenagers and college students, but rates can increase significantly from year to year, even for those with a perfect driving record and good credit.
Overall, Liberty Mutual has received a 2.4/5 average rating from users on WalletHub, with 50% of customers reporting that they are very unsatisfied with the insurer.
Understanding Auto Insurance Deductions on Your 1040 Tax Form
You may want to see also
GEICO
- Anti-lock brakes discount
- Anti-theft system discount
- Daytime running lights discount
- New vehicle discount
- Good driver discount
- Seat belt use discount
- Defensive driving discount
- Driver's educational course discount
- Good student discount
- Emergency deployment discount
- Federal employee discount
- Membership and employee discounts
- Multi-vehicle discount
- Mult-policy discount
The company’s sample rates are the fifth-lowest among the companies reviewed, coming in below the national average. It also has rates lower than the national average for many groups of drivers. GEICO's average annual rate is $1,778.
Auto Insurance Rates: Why the Sudden Spike?
You may want to see also
Progressive Insurance Company
However, Progressive Insurance has received mixed reviews from its customers. On the one hand, the company has an average rating of 4.34 out of 5 stars from over 56,150 total reviews. Many customers have praised the company for its easy policy setup, friendly and helpful customer service, competitive pricing, and excellent service.
On the other hand, some customers have expressed dissatisfaction with Progressive Insurance. There have been complaints about the company adding non-family members to policies, retroactively changing policies without notification, and poor claims handling. In the case of Carducci vs. Progressive et.al, the client underwent thirteen surgeries and was hospitalized for a month, suffering serious brain damage. Despite having Uninsured Motorist Coverage, Progressive Insurance claimed that it had changed the policy and refused to pay.
In terms of industry ratings, Progressive Insurance has received an A rating from the Better Business Bureau (BBB) and a National Association of Insurance Commissioners (NAIC) Complaint Index of 0.89. However, the BBB customer rating is only 1.1, indicating that many customers have had negative experiences with the company.
Overall, while Progressive Insurance can be a good option for some, it is important to carefully consider the pros and cons before choosing any insurance provider.
Auto Insurance Shopping: Annual Customer Acquisition Challenge
You may want to see also
