Insurance Companies Rated by Auto Body Repair Shops
Filed under: 21st Century, AIG, Allstate, American Family, Farmers, GMAC, Insurance Companies, Liberty Mutual, Nationwide, Original Equipment (OEM), Progressive, State Farm, USAA
I live in Ohio where we are required by law to carry auto insurance. Since I am not foolish enough to believe that all insurance companies are cut from the same cloth, I was wondering which particular insurance companies I should stay away from when I shop for cheaper auto insurance, and which companies stand out as being the best?
Ron
Akron, Ohio
David Williams writes:
Comparing auto insurance companies is never easy. As to which ones are best and worst, it depends on what is being measured. Are we talking lowest price, best coverage, superior claims handling, or some other criteria?
Each survey I’ve seen asks a set of questions that make some insurers rise to the top as others sink to the bottom. Change the survey questions and the list will probably reverse.
For example, in J.D. Power and Associates 2006 National Auto Insurance Study, the survey rated how consumers viewed the overall experience, policy offerings, pricing, and ease with which they could contact an insurer. Under this set of criteria USAA received the highest marks, but wasn’t included in the official ranking order because enrollment is open only to the U.S. military community and their families. Amica Mutual, being next in line, stepped up to take top honors while Erie Insurance followed in second place.
But, lets change the questions and ask a different group of people to rate auto insurance companies - this time, body shops. Since they often see behind the smiling faces of claims adjusters and hear the denials, “No! We won’t pay for that,” which companies will they rate as being most honest, most concerned for customers and fairest when it comes time to pay claims?
BodyShop Business, an auto body trade magazine in its 2007 Industry Profile Issue asked nine questions of auto body shop owners and managers so they could rate the best and worst insurance companies from a shop’s perspective.
Overall, the survey found “Progressive is the clear leader when it comes to refusal to pay…Progressive beat out the No.2 contender, Farmers, by a 2:1 margin.” Progressive also scored the least favorable marks on all other questions while State Farm out performed every other contender, clearly establishing itself among shops as the most favored auto insurance company.
The Body shop Business 2007 Industry Profile Survey asked that insurance companies be rated on the following criteria:
a Insurer’s level of concern for customer’s best interest
b Knowledge/expertise of field adjusters
c Accuracy of insurer-prepared estimates
d Quality of repair resulting from insurer’s repair policies
e Consistency of insurer’s policies on repair procedures
f Efficiency of claims handling process
g Fairness of reimbursement payments
h Responsiveness of company personnel to shop’s concerns
i Honesty of company personnel
Insurance companies could score from 1 (very good) on each question to a 5 (very poor), making a total of 9 the best possible score and 45 the worst possible score. When the votes were tallied, auto body repair shops ranked insurance companies from best to worst with these scores:
1) State Farm 19.7
2 USAA 22.7
3 American Family 24.5
4 Liberty Mutual 24.9
5 Allstate 25.3
6 AIG 25.6
7 GEICO 25.8
8 Farmers 25.9
9 Nationwide 26.2
10 Progressive 31.7
What do I think? Insurance companies are made up of people who, as you know, may be honest, compassionate and fair or rude, mean and heartless. There are a few good guys as well as a few scoundrels in every insurance company. I’ve found that while a company may have a good reputation on a national basis, it’s regional claims staff can make it detestable and hard to work with. Likewise an insurer with a bad reputation may have isolated pockets around the country where its claims offices are staffed with competent, knowledgible and caring people.
Personally, I wouldn’t put a lot of stock in what an agent says about claims handling. They often have very little input into the reimbursement you’ll receive after an auto accident.
One thing is clear; consumers, especially those in the Gulf states, are fed up with companies that cheat them out of what they are rightfully owed. Thanks to the light shed on shady insurance company practices in the wake of Hurricane Katrina, we are beginning to see a shift in the marketing of policies that offer consumer a better auto repair with less hassle, and fairer insurance settlements.
On May 1, 2007 GMAC Insurance announced it will upgrade its customer’s policies so they will receive original equipment parts after an auto accident. The benefit is immediately available free of charge to all policyholders nationwide.
While the Body Shop Business survey didn’t reflect this, I have often found the best service and fairest reimbursements to be provided by smaller insurance companies as opposed to larger, better-known companies.
One relatively small insurer that stands out among high quality shops for treating customers fairly is 21st Century Insurance, a company insuring over 1.5 million vehicles in 18 states, including California, Georgia, Illinois, Indiana, Nevada, Ohio, Oregon, Pennsylvania, Washington, New Jersey, Colorado, Minnesota, Missouri, Wisconsin, Arizona, Texas , Florida and its newest market, New York.
Earlier this week, 21st Century announced it is becoming a wholly owned subsidiary of American International Group, Inc., better known as AIG. AIG has, in my opinion, a better than average reputation for claims handling though not a stellar reputation. Whether or not this change will cause policyholders and claimants to be treated better or worse is unknown at this time. However, I would still recommend it as an insurance company worthy of consideration when you are shopping for insurance.
If you are a senior citizen you might also want to consider buying auto insurance through AARP. Not only are their rates very competitive, but AARP has a lot of leverage over insurers who supply the product, to see to it that you are treated right.
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