Report: Auto Insurance Accounts for Large Share of Consumer Complaints

Share Article recommends that consumers review state-supplied complaint-ratio reports to find companies with the best customer-service track records.

For the past three years, more than one-third of complaints made by consumers to state insurance regulators have been about auto insurance, according data voluntarily submitted to and compiled by the National Association of Insurance Commissioners (NAIC). That makes auto coverage the second-largest subject of complaints; accident and health coverage took the top spot, accounting for about 40 percent of the total.

The NAIC report highlights regulators’ important role of acting as an objective mediator in disputes between policyholders and their coverage providers. If consumers feel they have been wronged by their insurers, they can come to their state regulation departments as a last means of recourse.

In order to help turn the negative past experiences of some consumers into usable intelligence for others, state departments keep tabs on the number of justified complaints filed against companies in their states and make that data available to the public. These data are made available through complaint-ratio reports that weigh the number of complaints against the total number of policies written by a company. Consumers are often advised to reference these reports and to choose to purchase coverage from the best rated auto insurance companies.

Often, the complaints filed by consumers about claims denials, settlement disputes and rating issues lead to the return of funds to the policyholder. The California Department of Insurance, for example, recovered more than $52 million in 2010 through the investigation of consumer complaints.


The most frequent reasons for complaints, according to the report, were delays, denials and unsatisfactory settlement sizes.

To learn more about how to evaluate insurers in order to choose only the most reliable providers, readers can go to where they will find informative resource pages and a quote-comparison generator that can be used to help track down the best rates for coverage.


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Benjamin Zitney
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