Safety Insurance Review: Auto & Home, Condo, Renters Coverage

Safety Insurance is the third largest insurer of private passenger vehicles and the fourth largest insurer of homes in Massachusetts, but also sells auto & home insurance in New Hampshire. This review will discuss the important facts about Safety Insurance, and how it sells its insurance. This review also analyzes the JD Power customer service ratings, AM Best financial strength ratings, as well as the most recent three-year home & auto insurance customer complaint record for Safety Insurance, in comparison with major competitors like Allstate, State Farm, GEICO, & Progressive. My review will give you information to help you decide if Safety Insurance is a good choice to insure your car or home. Continue reading

JD Power Auto Insurance Customer Satisfaction Study 2014: Analyzing the Ratings & Company Scores

JD Power released its annual US Auto Insurance Customer Satisfaction Study for 2014 on June 20th, 2014. As I have noted before in my reviews of JD Power insurance studies, consumers need to consider each auto insurance company’s numerical score for the region where they reside, and not rely on the Power Circle ratings assigned by JD Power alone, to know if a company is providing better or worse customer satisfaction than its competitors. Too often, a company with a higher rating, such as a a four power circle rating (better than most), scored close enough to companies with lower ratings, such as a three power circle rating (about average), where it’s hard to say the higher rated company is really providing higher auto insurance customer satisfaction.

For example, in this 2014 study for the Florida region, Auto-Owners Insurance scored 815 points out of 1,000 possible points, and received the rating of four Power Circles (better than most). However, Progressive Insurance, in the same Florida region, scored 811 out of 1,000 points, but was rated three Power Circles (about average). An auto insurance shopper getting a price quote from Progressive Insurance & Auto-Owners Insurance, might be lured into paying more for an Auto-Owners auto insurance policy, based on its higher JD Power auto insurance customer satisfaction rating. But does a 4 point difference on a 1,000 point scale, really mean Auto-Owner’s Florida auto insurance customers are more satisfied than Progressive’s Florida auto insurance customers? I don’t think so.

This review will analyze the numerical scores for each auto insurance company in each of the 11 U.S. regions included in the 2014 auto insurance customer satisfaction study, and rank them into a category of best, better than average, average, below average, and worst, so you are not misled into thinking companies with higher ratings, but scoring about the same as lower rated companies, are better than they are. Continue reading

Better Business Bureau (BBB) Ratings for the Ten Largest Auto & Home Insurance Companies.

When deciding whether or not to buy a product or service from a business, cautious consumers check the Better Business Bureau rating for the business. Although I think there are other sources, such as the annual JD Power insurance studies, proving more useful rating information to the auto or home insurance customer, the complaint data provided by the Better Business Bureau (BBB) about major auto & home insurance companies can be another source of information to help people avoid insurance companies with too many complaints. This review will analyze the complaint data gathered by the Better Business Bureau for the last three years against the ten biggest auto & home insurance companies in the USA, and use it to show you which companies have a good, average, or bad complaint record. I’ll explain why people should not consider the BBB rating for an insurance company, and how I’ll use the number of complaints against each of the top ten companies, Allstate, State Farm, Liberty Mutual, Travelers, Nationwide, USAA, Farmers, American Family, Progressive & GEICO, to compare them and determine the companies with the best & worst complaint records. Continue reading

Reviewing Florida Home Insurance Companies for Financial Strength, Stability, & Solvency

Florida home insurance companies becoming financially insolvent is not an uncommon problem. Sunshine State Insurance Company, recently one of the 25 leading insurance companies selling new policies insuring homes in Florida, stopped selling new policies, after receiving a consent order from the Florida Office of Insurance Regulation (FOIR), to raise its surplus or shed its business. The FOIR consent order issued in March, came after Sunshine State reported it discovered accounting errors relating to reinsurance contracts from 2008 to 2011 that required correction. Sunshine State Insurance Company advised the FOIR that correcting the errors would negatively affect its surplus, as would fourth quarter losses. Customers of Sunshine State Insurance Company need to be concerned about the company being able to pay claims, and choosing another company to insure their home, as reported in this Insurance Journal article.

As any Florida property owner knows, finding companies to insure their homes and choosing the best insurance company, can be a challenge. The homeowners, condo, renters, or mobile home insurance companies available to them are often newer, very small companies not rated by AM Best, the most well-known company rating insurance company financial strength & solvency. If you are concerned about having substantial damage to your home covered by your insurance, particularly from a catastrophe, like a hurricane, where your insurance company may have many claims to pay, you want to do the best you can to avoid companies unable to meet their financial obligations. This blog post will discuss the issues regarding home insurance company solvency for Florida property owners, and show you one rating company that may be of great help with assessing an insurance company’s financial strength. Continue reading