How To Check Auto Insurance Consumer Complaint Ratios

Before agreeing to an auto insurance policy, always do a background check on the insurance company itself, regardless of how big or how small.

Don't make the mistake of assuming that just because the company has major TV presence it is without complaint. With so much invested in protecting your vehicle, you don't want to discover after the fact you're covered by a car insurance company with reliability issues.

Fortunately, from your standpoint, there are several ways to research a provider's customer track record. And one of the best ways for doing this is by checking the auto insurance consumer complaint ratios.

 

Consumer Complaint Ratios Defined

A consumer complaint ratio, as the name implies, tracks the number of complaints a car insurance company receives from its customers. The ratio is based on how many complaints the provider receives for every 1,000 accident claims it files.

Thus, under this criteria, you should red flag any auto insurance company with a high consumer complaint ratio. If not, don't say you weren't warned. Given the traumatic nature behind vehicle accidents, the last thing you want is to have your situation compounded by an indifferent provider.

Customer complaints against car insurance companies always revolve around how providers handle claims, with the four biggest issues being:

• Lower than expected compensation.

• Company indifference.

• An inordinately slow processing time with claims.

• Delayed investigations.

 

How to Obtain a Consumer Complaint Ratio

You can easily obtain an auto insurance company's consumer complaint ratio from your state's insurance department. You'll find a Web link to its page on your state government's website.

This information is free and can be easily downloaded from your home computer.

While checking consumer complaint ratios at your state insurance department's website, it's also wise to also look into the insurance company's financial stability rating. The last thing you want to hear after your vehicle has been T-boned by a delivery truck that your provider can't cover your accident claim.