The bottom of the ratings include some well known, heavily marketed companies.
Dealing with car insurance after an accident is when drivers need good customer service and a fast response. According to the latest survey from Consumer Reports 86% of readers who filed were highly satisfied with the handling of their claims among 22 insurance companies.
All 22 rated companies scored well with an 81 or higher, but some did better than others. Among the highest-rated were NJM Insurance Group (New Jersey Manufacturers Insurance Company), USAA Group, Amica Mutual Group, and Auto-Owners Insurance Group of Companies, with overall satisfaction scores of 92 or higher. Customers for all four companies had relatively few problems with their claims.
The CR car insurance scores for claims-related problems and timely payment are based on the experiences of 28,241 respondents who filed claims that were settled or rejected from January 2006 to June 2009. The score reflects overall satisfaction with claims handling. A score of 100 would mean all readers were completely satisfied; 80, very satisfied, on average; 60, fairly well satisfied.
The bottom of the ratings include some well known, heavily marketed companies – Commerce Insurance, MetLife Auto, Travelers, Progressive Group, Farmers, Allstate and Nationwide.
Overall consumers indicated that 25% of claims took more than two weeks for payment to be received.
Availability for some insurers is limited by region or policyholder eligibility rules, of course. Moreover, in considering CR ratings there is always the potential problem of selection bias in that subscribers may be demographically different than you are.
Spending less on car insurance is not only a matter of finding the lowest premium, there are number of other issues to consider. To help consumers find the right policy at the right coverage for the best price, the Consumer Reports October issue has more than 10 tips to help you save money on car insurance. Here are few:
Do an annual rate check. Check rates from other insurers annually to make sure you’re getting the best deal. But if you’ve been with the same insurer for a long time, it might be tough to beat its rates. That’s one reason shopping around didn’t work for CR respondents: More than 60 percent have been with the same carrier for 10 or more years.
Report reduced mileage. A major cost component in auto insurance is miles driven per year. The average is about 12,000. But if you’ve changed jobs and commute fewer miles, the lower mileage might translate into lower premiums. A new job that’s only 6 miles closer than your old one could reduce your annual commuting miles by 3,000 and cut your annual premium by $50. Let your insurer know if you’ve retired or lost your job; your reduced driving could cut 5 to 10 percent off your premiums.
Choose your car wisely. Insurance premiums will vary by auto model. When comparing models, ask your car dealer to show you the “Relative Collision Insurance Cost Information Booklet,” produced annually by the National Highway Traffic Safety Administration. The Highway Loss Data Institute also posts data on collision, bodily injury and property-damage liability, and other types of losses by vehicle model. Or ask your insurer for premium quotes on the different models under consideration.
Set the deductible right. A higher deductible reduces your premium because you pay more out of pocket if you have a claim. Hiking your deductible from $200 to $500 can cut your premium on collision by 15-30%. Go to $1,000 and you could save 40%. If you have a good driving record and haven’t had an at-fault accident in years, if ever, opting for a higher deductible on collision might be a good bet. Just make sure you can afford to pay it if you do have an accident.
Manage teenage-driver risk. Teenage drivers have higher accident rates, so adding a teenager to your policy can hike your costs by 50-100%. Immaturity and lack of driving experience help make motor-vehicle crashes the leading cause of death for U.S. teenagers. You can protect your child and cut your rates, by making him or her take a driving course before getting a license. Consider having your teenager wait until age 18 or 19 to get a license, instead of the usual 16 in most states or as young as 14 in some. Inform your insurer if the child isn’t licensed or is away at college without a car.
More money saving tips and the full results on how all the 22 car insurance companies stacked up, in Consumer Reports’ survey are available in the October issue now on newsstands and online at www.ConsumerReports.org.