Car Insurance Companies With the Worst Customer Satisfaction [2024]
Farmers is the worst ranked car insurance company for customer satisfaction, with a whopping 501 complaints to the Better Business Bureau.
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Zach Fagiano
Insurance & Finance Analyst
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Insurance & Finance Analyst
UPDATED: Oct 12, 2024
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Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 12, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
10 worst car insurance companies
- J.D. Power gives us the most comprehensive customer survey with rankings based on five metrics
- In regard to customer satisfaction, we have listed the top seven worst auto insurance companies
- Farmers is number one on the list, so you’d better keep your eye on them
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Auto Insurance Companies with the Highest Customer Satisfaction
When evaluating car insurance options, it’s essential to consider the customer satisfaction ratings of insurance companies. Auto insurance companies with the highest customer satisfaction consistently deliver superior service, efficient claims processing, and competitive pricing. Customer satisfaction in the insurance industry is a key indicator of a company’s reliability and commitment to policyholders. Here are the top car insurance companies for customer service in the USA, known for their exceptional car insurance customer satisfaction:
- Amica Mutual
- USAA
- State Farm
These insurance companies with high customer satisfaction excel in delivering top-notch service, ensuring a positive experience for their customers. Insurance companies ranked by customer satisfaction often excel in providing prompt and effective support to their policyholders, ensuring a positive overall experience. By choosing from the companies with the highest satisfaction ratings of insurance companies, you can ensure peace of mind and quality service.
The Impact of Customer Satisfaction on Auto Insurance
Customer satisfaction in auto insurance is a key indicator of how well insurance companies meet the needs and expectations of their policyholders. High levels of auto insurance customer satisfaction often reflect a company’s commitment to providing excellent service, efficient claims processing, and clear communication. This satisfaction is not only a measure of current performance but also a predictor of long-term customer loyalty and retention. Insurers that prioritize customer satisfaction are more likely to retain clients and receive positive referrals, enhancing their overall reputation in the industry.
The customer satisfaction auto insurance industry focuses on various factors, including the ease of filing claims, the responsiveness of customer service, and the transparency of policy terms. Companies with high customer satisfaction ratings typically excel in these areas, making the insurance experience more seamless and stress-free for their clients. Conversely, poor customer satisfaction can lead to a negative perception of the company and increased customer churn. Therefore, insurers should continually assess and improve their service quality to maintain high satisfaction levels.
Understanding the customer satisfaction of insurance companies helps both consumers and providers gauge the effectiveness of their services. For customers, high satisfaction ratings can be a reliable indicator of a trustworthy and efficient insurance provider. For insurance companies, achieving and maintaining high satisfaction scores requires ongoing efforts to address customer concerns, streamline processes, and enhance overall service quality. This focus on customer satisfaction not only benefits the policyholders but also supports the insurer’s long-term success and growth.
Understanding the 10 Worst Car Insurance Companies
When searching for car insurance, it’s crucial to be aware of the companies that consistently rank poorly in customer satisfaction and service quality. The 10 worst car insurance companies are often noted for their high volume of customer complaints, inefficient claims processes, and subpar customer service. These companies frequently receive negative feedback from policyholders, which can be attributed to issues such as delayed claims resolutions, unresponsive customer support, and opaque policy details. Understanding which companies are at the bottom of the rankings can help consumers avoid potential pitfalls and choose more reliable insurance providers.
The reputation of the worst car insurance companies is typically marked by a combination of poor ratings from industry surveys, high complaint rates, and frequent issues reported by customers. Factors such as inadequate coverage options, high premiums, and difficulties in resolving claims contribute to these negative rankings. For instance, companies with a high number of complaints often face criticism for their handling of claims or their lack of transparency regarding policy terms. By researching and considering these factors, consumers can make more informed decisions and avoid insurers that may lead to frustrating experiences.
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Car Insurance Companies with the Best Customer Satisfaction
Top Companies for Car Insurance with the Best Customer Satisfaction
When it comes to choosing auto insurance, customer satisfaction is a critical factor. Here are the top-rated companies known for their high car insurance customer satisfaction ratings:
- Amica Mutual
- Consistently rated for high auto insurance satisfaction ratings.
- Known for excellent claims handling and customer service.
- USAA
- Highly recommended by military families.
- Offers exceptional car insurance with the best customer service.
- State Farm
- Reliable and widely available.
- Offers car insurance with good customer service and high satisfaction ratings.
Benefits of Choosing Car Insurance with the Highest Customer Satisfaction
Opting for a car insurance company with high customer satisfaction can offer several advantages:
- Superior Customer Service: Car insurance with good customer service ensures that any issues or questions are addressed promptly.
- Peace of Mind: Knowing that you are insured by a company with top car insurance customer satisfaction ratings provides confidence and security.
Factors Contributing to Car Insurance Satisfaction Ratings
Customer satisfaction with auto insurance is influenced by several factors:
- Claims Handling: Efficient and fair processing of claims significantly impacts car insurance satisfaction ratings.
- Customer Service: Friendly and responsive service is crucial for car insurance with the highest customer satisfaction.
- Policy Options: Flexible and comprehensive coverage options contribute to higher auto insurance satisfaction ratings.
- Pricing: Competitive and transparent pricing is essential for car and auto insurance with the best customer service.
Companies with the Worst Customer Service
While some companies excel in customer satisfaction, others struggle. It’s important to be aware of the companies with the worst customer service:
- Farmers Insurance: Frequently reported issues with claims handling and customer service.
- 21st Century: Numerous complaints regarding abrupt policy changes and poor customer service.
- Commerce: Known for having issues related to customer service and product offerings.
Choosing a company with a strong reputation for customer satisfaction can make a significant difference in your overall insurance experience. Always consider car insurance customer satisfaction ratings when making your decision.
Every year, J.D. Power and Associates publishes rankings of car insurance companies based on customer satisfaction.
They call customers in the most comprehensive survey possible, then release the results in star ratings every year with the rankings based on five metrics:
- Pricing
- Types of coverage available
- Billing
- Being reachable
- Overall satisfaction
The best car insurance company is (drumroll please) … Amica Mutual. But what insurance company has the most customer complaints?
We started by taking the bottom seven insurance companies from the J.D. Power survey, then looked at three other customer satisfaction metrics:
- Complaints officially filed with the Better Business Bureau
- Consumer posts put up on Complaints.com
- Consumer posts on P***edConsumer.com
A short reminder: Complaints.com and P***edConsumer.com are anonymous sites, so sometimes their complaints and customer reviews may not reflect the full reality of the situation.
So, to be fair, we weighed J.D. Power’s rankings and the Better Business Bureau at four times the significance of the anonymous sites.
If you’re looking to see how these companies compare or find better options for your auto insurance policy, simply enter your ZIP code above. Get started today and compare insurance quotes from auto insurance providers near you.
The List, from “ Worst” to “the Worst of the Worst”
# 7 – GMAC
J.D. Power: 2.5 overall rating (out of 5)
BBB: 0 complaints
Complaints.com: 6 complaints
P***edConsumer.com: 2 complaints
There’s one thing we should be clear about: GMAC has a lot of businesses, and they have a lot of angry customers, thanks to the real estate bubble popping over the last three years.
So you have to sort the homeowners insurance complaints from the auto insurance complaints when doing your insurance review research.
Still, GMAC has a clean bill of health on its BBB business profile, with no complaints, although they did come in second on Complaints.com with six, mostly about, not surprisingly, customer service.
On P***edConsumer, though, there were only two complaints about their auto division amid many more about the mortgage arm of its homeowners insurance policies.
So, as long as you don’t buy a house through them, GMAC isn’t all that bad.
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# 6 – Mercury
J.D. Power: 2 overall rating (out of 5)
BBB: 0 complaints
Complaints.com: 7 complaints
P***edConsumer.com: 2 complaints
Mercury is another company that the Better Business Bureau likes, with no complaints on record. Then again, they have seven complaints on Complaints.com, all of which give them scathing reviews on customer service.
But there are only two on P***edConsumer.com, so maybe they’re not doing that badly.
# 5 – Encompass
J.D. Power: 2 overall rating (out of 5)
BBB: 0 complaints
Complaints.com: 2 complaints
P***edConsumer.com: 23 complaints
Encompass does great with the Better Business Bureau: they have no complaints for the last three years, and they even get an A+ rating.
Then again, the complaint against them on Complaints.com featured no less than two people looking for lawyers to handle their insurance claims and possibly take Encompass to court.
And P***edConsumer.com brings us what seems to be the biggest problem; if you’re on their insurance, you may be OK, but get hit by one of their drivers, and you’re in for a long, agonizing process of getting your claim processed.
Read more: Encompass Car Insurance Discounts
# 4 – Commerce
J.D. Power: 2 overall rating (out of 5)
BBB: 24 complaints
Complaints.com: 0 complaints
P***edConsumer.com: 11 complaints
Commerce got the overall worst rating from J.D. Power, but comparatively, they’re actually not that bad. Commerce only has 24 complaints from the Better Business Bureau, mostly about their product offerings, and only eight of those are from the last year.
Complaints.com turns up no angry customers, but P***edConsumer.com brings them in at the high end. Not surprisingly, the comments seem to be almost exclusively about how terrible their customer service is.
The word “rude” comes up a lot. It seems this ranking might just be well-earned.
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# 3 – The Hanover
J.D. Power: 2 overall rating (out of 5)
BBB: 28 complaints
Complaints.com: 0 complaints
P***edConsumer.com: 0 complaints
The Hanover ranked near the bottom with these six, but somebody must have had it out for them: they had 28 complaints at the Better Business Bureau.
Although they didn’t even come up at Complaints.com or P***edConsumer.com. Furthermore, every single one of those BBB complaints was closed.
So, they may not be the absolute best, but apparently, the Hanover is working hard to fix their problems. Still, that’s enough to get them a ranking of…ouch…third.
# 2 – 21st Century
J.D. Power: 2 overall rating (out of 5)
BBB: 344 complaints
Complaints.com: 4 complaints
P***edConsumer.com: 1 complaint
21st Century was our second worst company when it came to the Better Business Bureau, and they were almost evenly split between collection issues and product issues.
They also ranked the highest on Complaints.com with four complaints, ranging from abrupt cancellations to surprise price increases and not listening to their customers.
But at least at P***edConsumer.com, they only have one complaint. Then again, that complaint is about their policy more than doubling in price, so maybe that’s not such a good thing.
# 1 – Farmers Insurance
J.D. Power: 2 overall rating (out of 5)
BBB: 501 complaints
Complaints.com: 1 complaint
P***edConsumer.com: 7 complaints
When it comes to consumer complaints, Farmers Auto Insurance fared the worst with the BBB rating & accreditation: 501 complaints and the nature of complaints by nearly 300 reviewers were with the products themselves.
They fared a lot better on Complaints.com; the one complaint was about a minor billing issue and it dated back to 2006.
They only had seven complaints on P***edConsumer but those complaints range from being charged 20 percent for an accident when the customer wasn’t at fault to agents getting the policy completely wrong and ruining a young man’s insurance premium.
So if you’ve got Farmers, keep your eye on them.
We’ve got all the insurers in one place, so you can measure their auto policy costs and coverage options against your benefits. Keep these customer satisfaction ratings in mind as you evaluate competitive rates and look for a new insurance provider.
Read More: Traits of the Worst Car Insurance Companies
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Evaluating State Farm: Customer Satisfaction, Claims, and Reviews
Remember, when researching your auto insurance, simply enter your ZIP code below to find affordable rates near you.
Frequently Asked Questions
How are customer satisfaction ratings determined?
Customer satisfaction ratings are typically based on surveys, reviews, and feedback provided by policyholders. These ratings take into account factors such as claim handling, customer service, policy pricing, communication, and overall experience with the insurance company.
Should I avoid car insurance companies with low customer satisfaction ratings?
While customer satisfaction ratings provide valuable insights, it’s important to consider other factors such as coverage options, financial stability, and pricing when choosing a car insurance company. Low customer satisfaction ratings may indicate potential issues, but they should be weighed against other considerations to make an informed decision.
What are the potential disadvantages of choosing a car insurance company with low customer satisfaction ratings?
Some potential drawbacks of selecting a car insurance company with poor customer satisfaction ratings may include:
- Unsatisfactory customer service: You may encounter difficulties reaching customer support or experience delays in resolving issues.
- Claim handling issues: There could be delays or complications when filing claims, leading to frustration and inconvenience.
- Communication problems: Poor communication from the insurance company may make it challenging to stay informed about policy updates, changes, or renewal options.
Are there any benefits to choosing a car insurance company with low customer satisfaction ratings?
While it’s generally advisable to select a car insurance company with good customer satisfaction ratings, there may be some potential benefits to choosing one with lower ratings, such as:
- Lower premiums: Car insurance companies with lower customer satisfaction ratings may offer more competitive pricing, which can save you money on premiums.
- Personal experiences may vary: Customer satisfaction is subjective, and your experience with a company may differ from others’. You may find satisfactory service despite their overall lower ratings.
Can car insurance companies with low customer satisfaction ratings improve their services over time?
Yes, car insurance companies can make efforts to improve their services and address customer concerns. Some companies take customer feedback seriously and implement changes to enhance customer satisfaction. However, it’s important to research and monitor the company’s progress in improving customer satisfaction before making a decision.
What is the worst car insurance company?
Based on customer complaints and satisfaction ratings, Farmers Insurance is often cited as one of the worst car insurance companies.
Which car insurance company has the highest customer satisfaction?
Amica Mutual consistently ranks highest for customer satisfaction among car insurance companies.
Which car insurance company has the best customer service?
USAA is frequently recognized for having the best customer service in the car insurance industry, especially among military families.
Which insurance company has the highest customer satisfaction?
Amica Mutual is known for having the highest customer satisfaction ratings among insurance companies.
What government agency regulates insurance companies?
Insurance companies in the United States are regulated by individual state insurance departments and, at the federal level, by the Federal Insurance Office (FIO).
What is the worst insurance company?
Farmers Insurance is often considered one of the worst insurance companies due to high customer complaints and low satisfaction ratings.
Which car insurance company has the most complaints?
Farmers Insurance receives a significant number of complaints, making it one of the car insurance companies with the most complaints.
Which insurance company has the fewest complaints?
Companies like Amica Mutual and USAA typically have fewer complaints compared to others in the industry.
Which insurance company has the highest customer satisfaction in Florida?
Amica Mutual and USAA are known for high customer satisfaction ratings, including in the state of Florida.
Which is better State Farm or Progressive?
The choice between State Farm and Progressive depends on individual needs and preferences, as each company offers different benefits and coverage options.
Who is the most trusted insurance company?
USAA is often regarded as one of the most trusted insurance companies, particularly for its customer service and commitment to military families.
What are the worst insurance companies in America?
Farmers Insurance, 21st Century, and other companies with high complaint volumes are often considered among the worst insurance companies in America.
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Zach Fagiano
Insurance & Finance Analyst
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Insurance & Finance Analyst
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.