Top 10 Auto Insurance Companies for Paying Claims

Customer fulfilment is one of the most useful metrics for both buyers and sellers of certain services, which are especially difficult to assess in this industry, as they are not physical goods. So a trusted study that lays out the 10 best car insurance companies for compensating their policyholders’ losses is a very valuable source indeed.

After all, vehicle owners buy coverage just in case they may suffer damages or cause suffering to others. It is already a stressful process to deal with that they don’t want any more aggravation from carriers whom they send substantial premiums year after year. It isn’t too much to ask that they are timely and fairly compensated for their legitimate losses.

J.D. Power & Associates, the leading consumer research and reporting organization in the U.S. publishes their findings on various markets periodically. Their annual study of claim satisfaction from actual surveys of policyholders across the majority of carriers provides the best and most accurate picture of which auto insurers provide the best settlement. It provides information across a number of areas.

J.D. Power’s Study Parameters

This customer satisfaction report was based on responses from actual automobile insurance policyholders who settled a claim six months prior to taking the survey and included a total number of 11,469 respondents. It did not include windshield damage, stolen cars or roadside assistance calls.

The study asks questions of the respondents to rank seven separate experiences in the process including:

  • Overall Satisfaction
  • First Notice of Loss – initial reporting process
  • Service Interaction – dealing with agents handling it
  • Appraisal – the appraisal process
  • Repair Process
  • Rental Car Experience
  • Settlement – fairness of it

Scores are ranked out of 1,000 but listed out of 5 circles for ease of visual understanding. 5 circles represents a ranking as “Among the Best”, 4 is “Better than Most”, 3 means “About Average and 2 represents “The Rest”. 5 does not mean they have received a perfect 1,000 rating. Just that they are among the top.

Assessing Insurers based on Claims

This article is only about choosing them based on their ability to quickly and effectively deal with claims made on their policies. This is not an all-encompassing work on the subject but can be used as a signifier of the current ability to respond fast and compensate fairly.

For example, Allstate is not currently in there. They pioneered electronic handling in early 2015 through their Fast Mobile e-Payment. They believe that they provide one of the fastest payouts in the industry’s history. I guess, we will wait and see if they will make the preeminent ten next year. Remember that this article doesn’t look at what each of them declares to offer in their press releases or websites but looks at real data from actual motorists.

Whenever you are deciding on which to use, make sure that you base decisions on more than one factor. Be sure to research coverage options to meet specific needs, pricing in comparison to multiple others with the help of our online quote tool, and discounts qualified. Only by considering multiple factors should you choose the right coverage for you.

The Top 10 Car Insurance Companies for Claims Satisfaction

Now here is the list that will no doubt be very helpful if this is the metric you are looking for. Probably some of these names hand out large portion of the premiums they collect back to the drivers and people in need and it is nice to see. Some of these vehicle insurers may actually lose money as a result of their generosity. So, there is more reason to trust that the system works and you are more likely to be grateful that you bought your policy than not. 

  1. Auto-Owners
  2. NJM
  3. USAA
  4. Amica Mutual
  5. The Hartford
  6. Auto Club of Southern California
  7. Travelers
  8. Safeco
  9. Progressive
  10. Nationwide

Of course speed is very important too. However, the final figure is probable the most important. Actually, auto insurers pay out about 60 – 70% of the premiums they collect each year. So, the difference is in that 10% rage in most cases. Certainly, there are one or two terrible ones that are slow and stingy and bring these figures down. Perhaps those are the ones to avoid at all costs.

Be sure to check out if there is a state regulation or legislative requirement timeline for such responses. You can find out the link to check this at the NAIC’s website. Some states always keep up to date complaint counts across the market. Obviously, you wouldn’t want to avoid the ones that cause the most grief.

Remember that this should not be the only reason for choosing the one but it could make the difference between two you currently consider based on quotations. Granted that it is well documented why these are well liked. However, this doesn’t make others bad.

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