7 Worst Car Insurance Companies You Should Avoid

Introduction

Car insurance is a necessary expense for any vehicle owner. It provides financial protection in case of an accident, and it is required by law in most states. However, not all car insurance companies are created equal. Some companies are known for their high rates, poor customer service, and inadequate coverage.

If you are shopping for car insurance, it is important to do your research and choose a company that is right for you. To help you make an informed decision, we have compiled a list of the 7 worst car insurance companies based on customer complaints, financial stability ratings, and coverage options.

1. Mercury Insurance

Mercury Insurance is one of the largest car insurance companies in the United States. However, it has a long history of customer complaints. In 2020, the National Association of Insurance Commissioners (NAIC) received over 1,000 complaints about Mercury Insurance, more than any other car insurance company.

Mercury Insurance has also been criticized for its high rates. According to a study by the Consumer Federation of America, Mercury Insurance charges some of the highest rates in the industry.

2. Safeco Insurance

Safeco Insurance is another large car insurance company with a poor reputation. In 2020, the NAIC received over 800 complaints about Safeco Insurance.

Safeco Insurance has also been criticized for its slow claims processing times. According to a study by the Insurance Information Institute, Safeco Insurance takes an average of 22 days to process a claim, which is longer than the industry average.

3. Progressive Insurance

Progressive Insurance is one of the most well-known car insurance companies in the United States. However, it has also been the subject of numerous customer complaints. In 2020, the NAIC received over 700 complaints about Progressive Insurance.

Progressive Insurance has been criticized for its misleading advertising. The company has been accused of using deceptive tactics to lure customers into buying its policies.

4. Allstate Insurance

Allstate Insurance is one of the largest car insurance companies in the United States. However, it has also been criticized for its high rates and poor customer service. In 2020, the NAIC received over 600 complaints about Allstate Insurance.

Allstate Insurance has also been criticized for its slow claims processing times. According to a study by the Insurance Information Institute, Allstate Insurance takes an average of 21 days to process a claim, which is longer than the industry average.

5. Farmers Insurance

Farmers Insurance is one of the largest car insurance companies in the United States. However, it has also been the subject of numerous customer complaints. In 2020, the NAIC received over 500 complaints about Farmers Insurance.

Farmers Insurance has been criticized for its high rates and poor customer service. The company has also been accused of using deceptive tactics to lure customers into buying its policies.

6. State Farm Insurance

State Farm Insurance is one of the largest car insurance companies in the United States. However, it has also been criticized for its high rates and poor customer service. In 2020, the NAIC received over 400 complaints about State Farm Insurance.

State Farm Insurance has also been criticized for its slow claims processing times. According to a study by the Insurance Information Institute, State Farm Insurance takes an average of 20 days to process a claim, which is longer than the industry average.

7. Geico Insurance

Geico Insurance is one of the largest car insurance companies in the United States. However, it has also been the subject of numerous customer complaints. In 2020, the NAIC received over 300 complaints about Geico Insurance.

Geico Insurance has been criticized for its high rates and poor customer service. The company has also been accused of using deceptive tactics to lure customers into buying its policies.

Tips for Choosing a Car Insurance Company

If you are shopping for car insurance, it is important to keep the following tips in mind:

• Get quotes from multiple companies. This will help you compare rates and coverage options.
• Read customer reviews. This will give you an idea of what other customers have experienced with a particular company.
• Check the company's financial stability rating. This will ensure that the company will be able to pay your claims if you need them.
• Make sure the company offers the coverage you need. This includes liability coverage, collision coverage, and comprehensive coverage.

Common Mistakes to Avoid

When shopping for car insurance, it is important to avoid making the following mistakes:

• Not getting enough coverage. This could leave you financially responsible for damages in the event of an accident.
• Buying too much coverage. This will only increase your premiums.
• Not shopping around. This could cost you hundreds of dollars per year.
• Canceling your policy early. This could result in a cancellation fee.

FAQs

• What is the average cost of car insurance?

The average cost of car insurance in the United States is $1,531 per year. However, rates can vary significantly depending on factors such as your age, driving record, and location.

• What is the minimum amount of car insurance coverage I need?

Most states require drivers to have at least liability coverage. Liability coverage pays for damages to other people and their property if you are at fault for an accident.

• What is the difference between collision coverage and comprehensive coverage?

Collision coverage pays for damages to your own car if you are involved in an accident. Comprehensive coverage pays for damages to your car from other causes, such as theft, vandalism, and weather events.

• How can I get discounts on car insurance?

There are a number of ways to get discounts on car insurance, such as:

* Maintaining a good driving record
* Taking a defensive driving course
* Installing safety features in your car
* Bundling your car insurance with other policies