What are the worst auto insurance companies? (2024)

From large national companies to small, local businesses, it seems like there are a thousand choices when it comes to car insurance. With so many options, knowing where to start looking can feel impossible.

While naming the best insurance company in America is practically impossible, looking at some of the worst is a great place to start your search for coverage. Knowing which companies to avoid won’t get your car coverage, but it helps to know which ones to skip.

You can determine which companies to avoid by looking at customer service ratings, prices, and customer loyalty. While a company can offer great coverage for your car, it won’t do you any good if its service is poor.

Read on to learn which companies have the worst reputation for car insurance, then compare prices with as many as possible to find the best quotes.

Which car insurance companies have the worst customer service?

Although there are many ways to judge a company, one of the most important is how they treat their customers. A company can offer fantastic coverage at exceptional prices, but it will still lose customers if it has terrible service.

Luckily, there’s an easy way to determine how an insurance company performs with customer service. The National Association of Insurance Commissioners (NAIC) tracks customer complaints about most car insurance companies and creates a ratio for the level of complaints vs. the size of the company.

The national average is a rate of 1.0 — anything higher is above average. A company with a lower score means it receives fewer complaints.

Another way to look at customer service is through Better Business Bureau (BBB) ratings. The BBB assigns a score to car insurance companies based on the number of complaints filed against them and how many get resolved.

While these ratings don’t paint a complete picture of what a company has to offer, it’s a good place to start looking. Consider the ratings below to get an idea of both NAIC and BBB scores.

Company	NAIC Rating	BBB Rating
Allstate	2.73	A+
Geico	1.33	A+
Progressive	1.7	A+
Liberty Mutual	2.22	A+
USAA	2.35	A++
Esurance	2.92	A-
State Farm	1.44	A++
Travelers	0.43	A++
AAA	3.82	A+
The Hartford	0.36	A+
Mercury	3.63	A+
American Family	1.02	A+

As you can see, AAA has the worst NAIC score, while Esurance has the lowest BBB rating. However, you should be cautious of BBB ratings — a company can have hundreds of unresolved complaints and a high rating.

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Which car insurance companies have the highest rates?

Another integral aspect of car insurance is how much it costs. After all, it doesn’t help to have the best customer service if the coverage is too expensive.

However, looking at average rates isn’t a good way to guess how much you’ll pay. Insurance companies look at several factors when determining how much to charge, including:

• Age. Young drivers don’t have the necessary experience to handle every tricky situation on the road. Additionally, young people are more likely to engage in risky behavior.
• Location. Another critical aspect is your ZIP code. Companies carefully track incidents by location and base their prices on that.
• Gender. Statistically, men are more likely to cause accidents and drive recklessly than women.
• Car make and model. You’ll pay higher insurance rates if your car costs a lot to repair. Certain cars — like sports or luxury vehicles — also have higher rates.
• Driver history. People with clean driving records will pay less than those with incidents in their history. You might need high-risk insurance if you have severe ones, like a DUI.
• Yearly mileage. The more you drive, the more chances you have of a car accident or other incident. Drivers who spend less time on the road may pay less for insurance.
• Credit score. In states where it’s legal, car insurance companies charge more for customers with low credit scores.

While companies use these — and sometimes other factors — to shape your quote, they emphasize each factor differently. For example, Progressive charges a lot for young drivers but has some of the best rates for DUIs.

Look at the table below to get an idea of how much you might pay for car insurance.

High-Risk Auto Insurance Monthly Rates by Company and Coverage Type

Insurance Company	Full Coverage	Minimum Coverage	After an Accident	After a DUI
American Family	$197	$86	$103	$173
Geico	$192	$59	$75	$260
Nationwide	$248	$114	$153	$245
State Farm	$223	$81	$121	$161
USAA	$191	$62	$96	$178
Allstate	$308	$88	$140	$281
Farmers	$295	$118	$148	$238
Progressive	$295	$103	$126	$164
Travelers	$239	$70	$96	$187

There is a lot of variation in insurance rates, so it’s crucial to compare rates with as many companies as possible to know you’re getting the best deal.

Which else should you consider when looking for insurance?

You should look for several things when searching for car insurance. A company strong in one area might be weaker in another, so you should shop around.

While the list of considerations is long, these are the places you should start:

• Discounts. Most companies offer customers ways to save. The right company will provide special auto insurance discounts uniquely tailored to you.
• How much you drive. Some companies have plans that cost less if the number of miles you drive stays under a specific limit.
• If you use your car for work. Drivers who use their car for personal use and work — such as Uber or food delivery — need extra coverage.
• High-risk drivers. Insurance companies consider drivers with several incidents or DUI charges high risk. You might need a high-risk company if a standard company doesn’t give you insurance.

There are other things to consider when choosing a car insurance company, but you should cover these basics.

What are the best car insurance companies?

While determining which companies to avoid is hard, choosing which to buy from can be equally as difficult.

For customer service, companies that score high are USAA and State Farm. Most customers say they’re satisfied with how the company treats them. However, only active or retired military members and their families are eligible for USAA coverage.

As for claims handling, Travelers receives the best praise. About 65% of its customers report satisfaction with how Travelers handle their claims.

Another great way to judge a company is if current customers would recommend the service to family and friends. USAA again takes the top spot for recommendations, but other companies that do well include Nationwide and Allstate.

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Find the Best Car Insurance Today

As you can see, there are many ways to look at car insurance companies. From customer service to claims handling, the best company for you depends on what’s important to you.

While you can learn a lot by researching how different companies perform generally, the best way is to compare rates and products. Not only is this the best way to find the right coverage for your car, but it also helps you find the most affordable rates.

 

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Enter your ZIP code below to view companies that have cheap auto insurance rates.

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