Does your homeowners insurance company have a lot of complaints? Will you have difficulty placing a claim, or have a valid claim delayed or denied? How do you know if your insurance company is any good? Most consumers fail to check the complaint records of their insurance companies. Here I provide complaint information for all the major home insurance companies in Illinois, and rank them, from best to worst, based on their 2010 record of homeowners insurance complaints in Illinois (Accurate 2011 data not available yet).
Is your home or auto insurance company better or worse than average? I review all the leading auto & home insurance companies in the USA, using each company’s customer survey results from recent JD Power insurance studies, as well as each company’s complaint record, to determine if a company is performing better than average, average, or worse than average, for customer service, claims, & price. How is your insurance company rated? Is its coverage competitively priced? Does it have a higher than average number of customer complaints? Find out by reading the reviews on my home page by clicking smartshopyourcarinsurance.com.
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The Illinois Department of Insurance website is the source of my information about market share & complaint information. The Illinois complaint ratio is determined by the number of complaints per one million dollars of direct written home insurance premium. The ratio is used so you can compare the complaint records among home insurance companies fairly.
For example, Country Mutual Insurance had .23 complaints per one million dollars of home insurance premium it collected in 2010. American Family Mutual Insurance Company had .58 complaints per one million dollars of home insurance premium it collected in 2010, which is more than two times the number of complaints per one million dollars of premium than Country Mutual Insurance. But both of these companies have a much better 2010 complaint ratio than Allstate Insurance Company, which at 1.68 is close to three times more than American Family’s 2010 complaint ratio.
The complaint ratio is important, because a home insurance company with a lot more customers is likely to have a larger number of complaints than a smaller home insurance company, because it handles more customer transactions.
For example, a large insurance company may handle 1,000 fire claims, and have two valid complaints in regards to how these claims were handled. A smaller home insurance company may have 500 fire claims, and the same number of two valid complaints.
Even though the larger insurance company has the same number of complaints than the smaller insurance company, the larger insurance company has 2 complaints per 1,000 claims, and the smaller company has 2 complaints per 500 claims. The larger insurance company really has the better complaint record.
The Illinois complaint ratio uses the number of Illinois home insurance complaints per one million dollars of premium, so you can compare an insurance company’s complaint records with other companies fairly, regardless of the size of the companies.
Unlike the national complaint ratios on my website, each insurance company’s Illinois complaint ratio is not compared to an average number of complaints for the home insurance market. The Illinois complaint ratio is useful only when comparing insurance companies.
For example, State Farm has less than half the complaint ratio of American Family Mutual Insurance Company, but they are both good complaint records, when compared with some of the other home insurance companies in Illinois. What we don’t know is how each insurance company compares to the average number of homeowners insurance complaints for all Illinois home insurance companies, to see if it is better or worse than average. If you are insured with one of the companies placed 18th through 25th on my list, you may want to reconsider if your insurance company provides an acceptable level of customer service.
You want to consider other factors, beyond one year’s complaint ratio, when deciding on an insurance company.
For additional information to help you choose an home insurance company, go to my website to see national complaint ratios, AM Best ratings, & JD Power customer satisfaction ratings on auto insurance companies, or to find information regarding auto insurance.
Insurance companies frequently have several subsidiary home insurance companies, and the name of the subsidiary may be different than the parent insurance group. For example, Zurich Insurance Group includes Farmers (including Mid-Century), Bristol West & Foremost. Make sure you know the insurance group, and the name of the insurance subsidiary company quoting or insuring you, to check the proper complaint ratio.
Here’s my list:
25 Top Homeowners Insurance Companies Ranked by their 2010 Illinois Home Insurance Complaint Ratios (from best to worst)
1. Foremost Insurance Company = .11
2. Country Mutual Insurance Company = .23
3. State Farm Fire & Casualty Company = .26
4. Auto Owners Insurance Company = .28
5. Erie Insurance Exchange = .31
6. Metropolitan Casualty Insurance Company (Metlife) = .31
7. Safeco Insurance Company of illinois = .32
8. Cincinnati Insurance Company= .33
9. USAA Casualty Insurance Company = .34
10. Farmers Automobile Insurance Association = .36
11. Property & Casualty Insurance Company of Hartford (The Hartford) = .36
12. Travelers Home & Marine Insurance Company = .43
13. Sentinel Insurance Company LTD = .48
14. American Family Mutual Insurance Company = .58
15. Illinois FAIR Plan Association = .61
The Illinois FAIR Plan is the state’s program for insuring properties unable to get insurance elsewhere, due to claims, occupancy, or property condition. If you have one or no claims now in the last 5 years, your property has been repaired, or whatever reason you had a hard time getting home insurance no longer applies, you should shop for better rates & coverage.
16. Illinois Farmers Insurance Company (Farmers) = .67
17. Liberty Mutual Fire Insurance Company = .69
18. MemberSelect Insurance Company (AAA) = .88
19. Homesite Insurance Company of Illinois = .88
20. Hartford Insurance Company of Illinois = .91
21. Standard Mutual Insurance Company = .98
22. Madison Mutual Insurance Company = 1.01
23. Farmers Insurance Exchange = 1.20
24. Travelers Personal Insurance Company = 1.63
25. Allstate Insurance Company = 1.68
Now you know how the largest home insurance companies are rated for complaints, go and shop your home & car insurance. You can get better rates AND better service!
Many people pay too much for their insurance because they never shop for better rates, or if they do shop, they don’t check the rates of enough companies. For a lot of people, the best auto & home insurance companies are the ones with the coverage they need at a lower price. With auto & home insurance, you don’t get better service or coverage because you pay more. Some of the best companies have competitive rates. Some companies charge twice as much as others for the same coverage. But no single company has low rates for everyone. You have to shop with all the leading companies, to find the company with the best coverage and best price for you. The ad below will take you to links to get online quotes from leading Home, Auto, Health, & Life insurance companies in your area. Choose the type of insurance, put in your zip, and start shopping now!
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