What are the worst auto insurance companies in America?
The worst-rated car insurance companies are judged based upon how well they pay out claims, their customer service, raising their rates, and putting profits over people. The worst auto insurance companies include Travelers, AIG, and 21st Century. You can look at different objective ratings like AM Best and JD Power to determine who the best auto insurance company is for you.
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UPDATED: Apr 29, 2022
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- Travelers Insurance is rated fifth from the bottom in the worst-rated auto insurance companies list.
- The Commerce Insurance Company scored two of five possible in the customer satisfaction dimensions.
- AIG is absolutely the worst of the worst, according to the J.D. Power and Associates research.
- The most popular auto insurance companies are sometimes among the worst.
Auto insurance company ratings are performed by several consumer agencies, as well as federal and state governments.
Auto insurance companies are often rated on indicators, such as market share, as well as other factors like customer satisfaction. One popular agency that rates auto insurance carriers is J.D. Power and Associates.
In their latest ranking using data from 2009, J.D. Power and Associates names the Five Worst Auto Insurance Companies in America.
If you find that your insurance provider has the dubious honor of being listed on this ranking of the worst-rated car insurance companies, you may want to consider shopping around for another insurance carrier.
Don’t settle for less than the best. Use our FREE auto insurance comparison tool now by entering your ZIP code above.
Worst-Rated Auto Insurance Companies
What are the worst insurance companies?
A few of the infractions that place auto insurance companies on “worst” lists include:
- Refusing to pay claims
- Poor customer service
- Raising premiums
- Putting profits before policyholders
Some of these are the worst insurance companies in America for paying claims, which is pretty much the only job insurance companies have.
Sites that provide consumer comments, reviews, and rankings will provide insight into which companies to avoid when purchasing auto insurance online.
Often, you’ll find patterns in the worst car insurance reviews, such as poor customer relations, errors in billing, etc. Again, should your insurance company be one that is not favored by current and former customers, consider shopping around for a new company.
Finding reliable auto insurance companies and cheap auto insurance rates is possible through an online car insurance comparison.
No matter what type of auto insurance you’re seeking to purchase, it’s always a good idea to compare online auto insurance companies and policies.
Websites that offer auto insurance comparison tools are a great place to start.
Simply enter your ZIP code into the input box and click “Start” to find great car insurance rates for insurance coverage in your area.
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The Five Worst Auto Insurance Companies List
Each company in the “worst” list of bad auto insurance companies scored two out of five possible points on the J.D. Power and Associates dimension of customer satisfaction.
Let’s look at the five worst-rated car insurance companies for consumers in America.
#1 – Travelers Insurance
Travelers Insurance is rated fifth in the worst auto insurance companies list.
The reason Travelers car insurance company is ranked above the other four is that this company scored a bit higher on the dimension of contacting the policyholder.
However, this auto insurer has appeared on a few different “worst” lists in recent years. If you’re a current customer of Travelers Insurance, you may want to weigh your other options.
#2 – 21st Century Insurance
Though 21st Century provides many conveniences for customers, such as the option of purchasing and managing their policies and filing an auto insurance claim online, this company scores very low in the customer satisfaction metrics.
However, on other lists, this car insurance company has appeared as one of the better companies on other measures.
Your best bet is to compare this company with others using many criteria.
Even with this ranking, 21st Century scored a bit higher than many carriers in the “Pricing Satisfaction” category.
#3 – Commerce Insurance Company
The Commerce Insurance Company scored two out of five possible in the customer satisfaction dimensions (as did Travelers).
Research this auto insurer using a comparison tool before purchasing a policy.
Commerce may offer policy options that are not available with other companies.
Perform your due diligence and make sure that you’re an educated consumer before purchasing any car insurance policy.
#4 – GMAC Auto Insurance
GMAC is another company that consistently appears on “worst” lists.
Scoring near the very bottom on the J.D. Power and Associates customer satisfaction evaluations, this company does not currently enjoy a great reputation.
Customer reviews tend to reflect dissatisfaction.
If this is your insurer, consider shopping around for another company.
Use a comparison tool to find a company that will provide great customer service and pay claims as expected.
#5 – AIG Auto Insurance
Ranking as the number one worst car insurance company in the United States is AIG. AIG is absolutely the worst of the worst, according to the J.D. Power and Associates research. In this research, AIG consistently scored low on all dimensions of customer satisfaction.
AIG appears on many “worst” lists.
If you find that your insurance company is listed as one of the worst, consider changing carriers and going for a different insurance policy!
There are many coverage options and car insurance rates out there. Find the right insurance coverage with a reliable company so you are always properly protected if you get in an accident.
Switching to another auto insurance provider is not a difficult process and you may find that you can save a considerable amount of money on your premium in the process.
Use a cheap online auto insurance quote search to save money and get the best auto insurance company, as well as the best policy and rates, for your needs.
No matter what company provides your auto insurance, if you’re not 100 percent happy with their products or service, research other options.
Even if your company is considered one of the most popular auto insurance companies, it may be favorable to change. Get instant online quotes by using the quote tool below.
Auto Insurance Company Ratings
When talking about the worst auto insurance companies, there are ways to compare them that aren’t exclusively word-of-mouth. There are companies that rates them in different ways.
A.M. Best is a rating agency that measures the financial stability of insurance companies.
This video talks about A.M. Best ratings and what they mean.
J.D. Power rates companies based upon their customer service ratings. So, if you’d like to be able to easily speak with a competent representative, this is pretty important for you.
Other companies, such as Moody’s, S&P, and more, also rate auto insurance companies based on their financial strength.
This table shows the nation’s top insurers so you can see how they compare.
|Insurance Company||A.M. Best Ratings||Direct Premiums Written|
|Allstate||A+ (Superior)||$22.7 (↑)||9.19% (↓)||56% (↓)|
|American Family||A (Excellent)||$4.7 (↑)||1.9% (↑)||69% (~)|
|Farmers||A (Excellent)||$10.5 (↑)||4.26% (↓)||61% (~)|
|GEICO||A++ (Superior)||$33.1 (↑)||13.41% (↑)||71% (~)|
|Liberty Mutual||A (Excellent)||$11.8 (↑)||4.77% (↓)||62% (~)|
|Nationwide||A+ (Superior)||$6.7 (↓)||2.73% (↓)||58% (↓)|
|Progressive||A+ (Superior)||$27.1 (↑)||10.97% (↑)||62% (~)|
|State Farm||A++ (Superior)||$41.9 (↑)||17.01% (↓)||63% (↓)|
|Travelers||A++ (Superior)||$4.7 (↑)||1.9% (↑)||60% (~)|
|A++ (Superior)||$14.5 (↑)||5.87% (↑)||77% (~)|
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These are objective ratings for you to use when deciding which company to choose.
Some auto insurance providers will also allow you to purchase a policy online. No need to put up with constant premium increases. It’s fairly easy to cancel auto insurance with one insurer and start with another.
It’s not always easy to sort through the best and worst auto insurance companies to find the right one for you. We can help. Enter your ZIP code below and start comparing local auto insurance quotes now.