Insurance Company Complaints – Who Are the Top 10 Companies With the Least Number of Complaints?

The New York State Department of Insurance (DOI) just released the 2008 Annual Ranking of Automobile Insurance Complaints. The report has been issued to help consumers find the automobile insurer that best meets their needs. You can use this report to compare the ranking of the insurance company you are doing business with now, or check another company you may be considering.

This report analyzed data collected from 2006 and 2007. It only ranks companies doing business in the State of New York. However, as New York is a heavily populated state, with both big urban centers and big suburban areas, the report can be considered a good representation of insurance company performance nationwide.

How The Ranking Works

The insurance companies are ranked on a complaint ratio. The ratio is calculated by the number of complaints upheld against companies as a percentage of their total private passenger auto business.

Insurers with the fewest upheld complaints per million dollars of premiums are shown at the top of the list. The companies with the highest ratio of complaints are ranked at the bottom.

Other Information to Consider

The ranking of an insurance company is important, but it is only one characteristic that consumers should weigh when considering doing business with an insurance company. Others are:

o Referrals from friends, relatives, neighbors or co-workers about the experiences they had with their insurance companies
o Price of the premium versus perceived value
o Search the Internet for other ideas
o Check your state’s DOI website, which may contain valuable consumer information about companies doing business in your state.

What The Ranking Does and Does Not Contain

o Private passenger insurance is the only type evaluated.
o It only includes the complaints referred by consumers to the DOI. It does not include complaints made directly to the insurance companies.
o Complaints are “upheld” when the DOI agrees with a consumer that an insurance company made an inappropriate decision.
o Information from prior years is included in the tables so consumers can see if the company has improved or gotten worse.
o All companies with at least $10 million in premium in 2006 and 2007 are included in the ranking. Insurers with less than $10 million were included if they had 10 or more complaints against them.

Top Three Most Common Complaints

1. Monetary settlements – settlement amount is too low.
2. Policy terminations
3. Promptness of insurance payments

2007 Auto Complaint Listing (ranked lowest number at top, higher as you go down)

1. Mercury General Group
2. American Express, Amex Assurance, IDS Property Casualty
3. Eveready Insurance Co.
4. Electric Insurance Group
5. Amica Mutual
6. Preferred Mutual Insurance Co.
7. United Services Automobile Assurance Group (USAA)
8. Chubb
9. Utica Mutual
10. State F*arm
11. Central Services Group, Central Insurance Group, NY Central Mutual Fire Ins.
12. Main Street America Group, National Grange Mutual
13. Progressive
14. Liberty Mutual
15. Kingsway Insurance Group, Lincoln General Ins.
16. Response Insurance Group
17. Nationwide Insurance
18. American Modern Ins. Group, American Family Home Ins.
19. St. Paul Travelers
20. Unitrin Group, Kemper
21. Erie Insurance Group
22. Berkshire Hathaway Insurance, GEICO
23. Allstate Insurance
24. The Hartford Insurance Group
25. Hanover Insurance, Citizens Ins., Allmerica Financial Alliance
26. Metropolitan Group
27. American National Financial Group
28. Allianz Insurance Group
29. GMAC, Integon, MIC P&C, National General Ins. Co.
30. Zurich Ins.Group, Foremost, Maryland Casualty
31. Hannover RE Group, Clarendon National
32. State Wide Insurance
33. White Mountains Group, OneBeacon, Esurance, Auto One Ins.
34. Countrywide Insurance
35. Safeco Insurance Group
36. American International Group (AIG)
37. Tri-State Consumer Ins. Group
38. Interboro Mutual
39. Infinity Property & Casualty
40. Long Island Insurance

Conclusion

If your auto insurance provider is not shown on this list, it could be that they don’t sell insurance in New York. Or, it could be that their number of complaints is worse than the company in the #40 position!!

Think about this statement, my friends.

The only thing that truly matters about your auto insurance is what happens when you submit a claim. Claims are about KEEPING PROMISES. When the insurance companies don’t keep their promises, the complaints pile up!

So, why would you EVER consider doing business with any insurance company LOWER than NUMBER 10 on the list?

If you are one of the unfortunate people who experience an automobile loss of any kind, you’ll need to know how to handle your insurance claim so that you maximize your recovery. I’ll even be so bold as to say this: If you do not use the strategies for submitting a claim found in my book, you will not collect all the money you are entitled to collect. You will need to know how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, check out the website shown below in the Resource Box.

Online Auto Insurance Companies Makes Your Search Centralized

If you are planning to buy a car for immediate use then the first thing you need is car insurance. For getting car insurance you not only look for the best deal but also for a good auto insurance company. You may call a friend for recommendation or go through the phone directory to call up a car indemnity company. You may even choose the company by its attractive commercial in the television. However, in order to make your search more centralized and get the best insurance deal, many auto insurance companies have come up recently. These organizations help you in getting best insurance quotes from some of the top car insurance companies at affordable prices.

Things you need to consider before you finalise a deal

Before finalizing on an auto indemnity deal you should check if the company is financially strong. In case of any accident the auto insurance company should be able to cover the claims that the customers ask for. Besides, the company should also abide by the local laws. It should have a good record on customer service and handling claims. To sum up it should be a company of repute.

How to look for a good auto insurance company?

With many auto insurance companies mushrooming, there is a handful which are fake companies. In such a case how will you determine which one is a reliable company? There are two ways to solve this problem. Firstly, you can look online for any queries regarding the reputation and customer handling of the insurance companies. Secondly, you can also find the required information from the Department of Insurance. The insurance department keeps record of the reputed insurance companies. Many states have their own websites with information of those insurance companies doing business in that particular state.

How online companies can help you?

It may take some time to get information from the Department of Insurance about the company you chose to deal with. Then the best way to gather information is from the company website. Choose online from the companies that offer a wide range of services like pet emergency coverage, good drivers discounts, and ability to pay the claimed amount in case of any accident.

By choosing from the online indemnity companies you can also save money as these companies also offer indemnities at reasonable prices without compromising on the quality of the service offered. You can search these companies very easily by a single click of the mouse.

Make your search centralized by searching online auto insurance companies and avail of the best deals.

Could Your Life Insurance Company Fail?

Life insurance policies provide your family the much needed financial stability in case of your sudden demise. This becomes all the more essential when the breadwinner of the family is gone suddenly. Your family can still meet their vital needs and maintain the same standard of living that was available that they had earlier. However, what if the insurance company goes bust?

Like in case of a bank, your insurance company could also go bankrupt. However, this does not mean that all your hard earned money is gone forever and you are left penniless. This is because every insurer is monitored by IRDA (Insurance Regulatory and Development Authority) on a regular basis. The insurer is also supposed to maintain a solvency margin for recovery in case of an unfortunate incident.
What are the Safety Measures

There are various measures and regulations undertaken by the government and IRDA so that your money is always safe, even if the insurer goes bust. There are various strict guidelines and regulations that ensure that one or two serious incidents or financial loss doesn’t result in the company going down. The two main acts that cover all these regulations and are the foundations of various activities that are carried out in the field of insurance are:

• The Insurance Act 1938

• The Insurance Regulatory and Development Act 1999

The various guidelines and regulations are the following:

• Every insurance company has to be registered and needs a license from the relevant authorities. This will prevent fraud companies from carrying out their illegal operations and duping investors.

• The process of registration and renewal has to be strictly followed by every insurance company.

• A solvency amount of Rs 150 crores has to be submitted with RBI, under IRDA. This is safety deposit money that is kept for compensation to customers in case the company goes bankrupt.

• Every insurance company is required to be attached to a re-insurance company. The re-insurance company will take up the legal responsibility of reimbursement of insurance claims of customers, in case the insurer goes bankrupt.

• There are strict regulations regarding the minimum capital requirements, funds, accounts and management of the companies.

• There are also strict guidelines regarding the amount of cash companies can invest in stock markets, individual stocks etc.

What Else Can You Do?

On the other hand, to be doubly sure, you might invest your money with different insurers in different policies. This reduces the risk of losing all your insurance cover in case one of the insurers goes bust. However, it has a downside that you will be paying a policy fee for multiple policies to different insurers. Also, you will be missing out on the discounts and other benefits that one insurer gives on a single bulk policy. Also, when you get life insurance, you must go for online life insurance that will enable you to choose the best and most reliable insurance company.

With the strict guidelines and regulations, it is almost impossible for any insurance company to go bankrupt in India. You can therefore be confident and fully assured that your hard earned money will be safe with the insurance companies. If at all anything unfortunate happens, IRDA and the Finance ministry in the Central government will ensure that your and other customers’ issues are addressed and your money recovered.