Updated on: 11/13/2019
When it comes to insurance companies, car owners across the country always want to know which ones are the “best” and the “worst” to purchase an insurance policy from in the event of a car accident. Because advertising is biased and profitability is hardly an indicator of customer satisfaction, shoppers are understandably wary about which companies to trust their money with.
Thanks to industry research and consumer advocacy groups, there is published data out there that consumers can use to educate themselves on the typical business practices of these companies. And while this article is aimed at identifying the "best" and "worst" companies out there, we would like to remind people that insurance companies are ultimately focused on profit, not your best interests or overall well-being.
Profitable Insurance Companies Are Positive
We all know that, like all businesses, insurance companies are in the game to make money – lots of it. For the most part, these companies bring in billions – sometimes trillions – of profit every year. And although profit is typically synonymous with greed, it is actually a very positive sign that your insurance company is profitable.
This ensures that your company has the funds necessary to honor your policy in the event of an auto accident. A profitable company also gives the consumer a better chance at saving money. An insurance company that is less viable is more likely to eventually go out of business and will also be more likely to charge a higher premium.
Below is a list of the top ten insurance companies based on their profitability, based on the 2011 Fortune 500 list. The number in parentheses is the company’s overall ranking in all business categories.
Berkshire Hathaway (#7)
State Farm (#37)
Liberty Mutual (#82)
Travelers Insurance (#106)
Hartford Financial (#117)
Nationwide Insurance (#127)
United Services Automobile Association (#145)
Customer Service and Claims Service
Perhaps the most important aspect of insurance companies is how their paying customers feel about the overall customer experience. This can be summarized by two popular categories: customer service ratings and claims service ratings.
Market research firm J.D. Power and Associates recently compiled a list of the top insurance companies that exceed customer expectations. That list is shown below:
Amica Mutual Insurance
Farm Bureau Insurance
NJM Insurance Group
Notice the trend here; when it comes to profitability, all of the major insurance companies with huge profits and advertising budgets fill up the list. But when you look at the list of customer-friendly companies, the big-dogs are nowhere to be found.
Another important factor is the performance of the claims department. Since receiving payment for accidents is essentially the service that customers are paying for, it is important to take into account how likely your company is to pay out your policy in the event of a claim. The following list was also put together by J.D. Power and Associates.
Amica Mutual Insurance
California State Automobile Association
J.D. Power and Associates also ranked the worst insurance companies based on customer satisfaction with the claims department. Those companies are listed below:
21st Century Insurance
In summary, it is difficult to give an overall ranking for the best or worst insurance companies that are out there, because you can never be sure how a company will treat you after you buy a policy. However, you can base your decision on the experiences of other consumers, which is why we are thankful for consumer advocacy groups like those featured in this article.
Seattle Accident Lawyers
If you were injured in a car accident, you may be entitled to financial compensation for your injuries and medical bills. Contact the Seattle injury lawyers at the Davis Law Group today to schedule a free consultation. The meeting is free and the advice could make all the difference in your claim.