Choosing a car insurance company is about more than finding the lowest premium. When you need to file a claim after an accident, responsive customer service and fair claim handling become just as important as the monthly payment. While many insurers provide dependable service, some consistently receive more customer complaints than others. This guide highlights several auto insurance companies that have frequently received below-average customer satisfaction scores based on industry reports.
How Are Insurance Companies Evaluated?
Insurance companies are commonly evaluated using information from organizations such as the National Association of Insurance Commissioners (NAIC) and customer satisfaction studies conducted by J.D. Power.
The NAIC Complaint Index compares the number of verified consumer complaints against an insurer with the company's market share. A score of 1.00 represents the industry average. A score above 1.00 indicates the company received more complaints than expected relative to its size.
J.D. Power measures customer satisfaction in areas such as:
- Claims handling
- Policy offerings
- Billing experience
- Customer service
- Digital tools
- Overall value
Looking at both complaint data and customer surveys provides a broader picture of an insurer's performance.
1. Kemper
Kemper has frequently appeared among insurers with higher-than-average complaint levels in several reporting periods. Many customer reviews mention delays during the claims process and inconsistent communication after accidents.
Some policyholders have also reported challenges obtaining timely claim updates and receiving settlement information.
2. National General
National General, now part of Allstate, has received mixed customer feedback over the years. While many drivers are satisfied with their policies, industry satisfaction studies have often placed the company below average.
Common concerns include:
- Premium increases during renewal
- Difficulty understanding policy changes
- Delays during certain claims
Drivers considering National General should carefully review renewal documents each year to understand any coverage or pricing adjustments.
3. Direct Auto Insurance
Direct Auto primarily serves drivers who may have limited insurance options due to driving history or other risk factors. Although this market naturally generates more complex claims, customer complaints have remained relatively high compared with the company's size.
Frequently reported concerns include:
- Slow claims handling
- Settlement disagreements
- Difficulty reaching customer support
4. Liberty Mutual
Liberty Mutual is one of the largest automobile insurers in the United States and serves millions of customers nationwide. Despite its size and extensive coverage options, customer satisfaction scores in some regional studies have been lower than several competing national insurers.
Some customers mention:
- Higher-than-expected renewal premiums
- Lengthy claim investigations
- Slower claim resolution compared with competitors
That said, experiences can vary significantly depending on location and the complexity of the claim.
5. Dairyland
Dairyland specializes in coverage for drivers who may need non-standard auto insurance. While the company fills an important role in the market, customer complaint data has often remained above industry averages.
Some of the most commonly reported issues include:
- Billing concerns
- Policy cancellation disputes
- Longer claims processing times
Drivers with unique insurance needs may still find Dairyland appropriate, but reviewing customer experiences beforehand is worthwhile.
6. SafeAuto
SafeAuto has historically received mixed reviews from policyholders. Complaint records have often exceeded industry averages in several states, with many customers expressing frustration about the claims experience.
Common concerns include:
- Claim denials
- Customer service responsiveness
- Billing questions
- Communication during settlements
As with any insurer, reviewing policy details before purchasing coverage can help prevent misunderstandings later.
7. Trexis Insurance
Trexis primarily operates throughout portions of the Southeast and Midwest. While the company offers affordable coverage for many drivers, complaint data has frequently been higher than average.
Policyholders have reported concerns involving:
- Delays after filing claims
- Lower-than-expected settlement offers
- Difficulty contacting claims representatives
Prospective customers should compare both pricing and service ratings before making a decision.
Should You Switch Insurance Companies?
Finding your insurer on a list of lower-rated companies does not automatically mean you need to change providers.
If you have consistently received good service, competitive premiums, and fair claim handling, staying with your current insurer may still make sense.
However, if you have experienced repeated problems such as:
- Slow claims processing
- Unexpected premium increases
- Poor communication
- Billing issues
- Difficulty reaching customer support
it may be worthwhile to compare quotes from other insurers.
Companies frequently recognized for strong customer satisfaction include Amica, USAA (for eligible military members and their families), State Farm, Auto-Owners Insurance, and Erie Insurance in regions where they operate.
Before switching, compare:
- Premium costs
- Coverage options
- Deductibles
- Financial strength ratings
- Customer satisfaction scores
- NAIC complaint history
Choosing solely based on price can sometimes lead to disappointing claim experiences later.
Tips Before Purchasing Auto Insurance
Before selecting any insurer, consider these simple steps:
- Read recent customer reviews from multiple sources.
- Compare quotes from at least three companies.
- Review available discounts for safe driving, bundling, or multiple vehicles.
- Check the company's financial strength through independent rating agencies.
- Verify complaint trends using NAIC data.
Spending a little extra time researching can help you avoid future frustrations.
Frequently Asked Questions
How can I check an insurance company's complaint history?
The National Association of Insurance Commissioners (NAIC) provides consumer complaint information that allows you to compare insurers operating in your state. Reviewing this information alongside customer satisfaction surveys offers a balanced view of an insurer's performance.
Does receiving many complaints mean an insurance company is unreliable?
Not necessarily. A higher complaint index simply means more formal complaints were filed relative to the company's size. Many large insurers successfully handle millions of claims every year, but complaint trends can still reveal recurring customer service issues.
When is the best time to change auto insurance?
Many drivers switch providers when their policy is approaching renewal because the transition is usually straightforward. However, you can often change insurers at other times if you find better coverage or become dissatisfied with your current provider. Before cancelling a policy, make sure your new coverage is already active to avoid any lapse in insurance.
Final Thoughts
Price is only one part of choosing an auto insurance company. Reliable claims handling, responsive customer support, and transparent policy terms can make a significant difference when you actually need your coverage.
Review industry complaint data, compare customer satisfaction studies, and request quotes from several insurers before making your decision. A little research today can help you avoid unnecessary stress if you ever need to file a claim.